How Putin drained Russians’ “savings” for war
For almost three years of full-scale war against Ukraine, the Russian National Welfare Fund has shrunk by two-thirds. At the start of 2022, the fund held $133.5 billion of “free money.” Now, it’s down to just $37.5 billion—the lowest level since the fund was created in 2008.
The Russian government used this fund to assure its citizens it would take care of them and guarantee economic stability under any circumstances. It also promoted the message abroad that Russia’s economy had significant reserves and was unaffected by factors like falling oil prices or sanctions.
However, vast sums from this fund are now being used to cover budget shortfalls caused by military spending and sanctions, rather than providing social welfare.
