Russia risks losing its financial reserves
Former Russian Finance Minister Mikhail Zadornov said that Russia’s National Welfare Fund—heavily drained to cover budget deficits during the war—would last only six months if oil prices were to drop significantly.
As of today, the fund’s liquid assets stand at approximately 3.8 trillion rubles ($42 billion), or less than 2% of GDP—down from 7.4% of GDP before the full-scale invasion. Zadornov emphasizes that balancing Russia’s budget is only possible if military operations come to an end.
While Putin promises to maintain the fund’s reserves, the reality is that Russia’s “rainy day” savings are running out. The money meant to ensure economic stability for Russians is instead being funneled into the war of aggression against Ukraine.
Earlier, the Center reported that after nearly three years of full-scale war, the National Welfare Fund has shrunk by two-thirds. It now holds fewer reserves than at any time since its creation in 2008.
