During 2 years of war, Russia burned 4.7 trillion rubles, more than 50% of its liquid assets of the National Welfare Fund.
The liquid part of the so-called National Welfare Fund of Russia (NWF RF) has collapsed sharply. According to the Russian financial Telegram channel Proeconomicsthere are actually only 3 trillion rubles left in the Fund’s liquid assets.
Thus, Russia burned 4.7 trillion, 61% of their liquid assets, since February 2022, when the invasion of the Russian occupation army into Ukraine began. Trying to save their economy and protect themselves from sanctions from the West, as well as actively financing military operations, the Russian authorities continue to actively burn reserves that have been accumulating for a decade and a half.
Analysts note that the presence of gold reserves is not an encouraging factor. Historical experience shows that Moscow begins to sell significant volumes of gold only in a state of complete disaster similar to what happened at the end of Perestroika before the collapse of the Soviet Union.
Despite the presence of Sberbank shares, Russia cannot dump them in large quantities, since this would lead to a collapse of the local stock market, including the balance of Sberbank shares in the Fund.
This situation is causing serious concern in financial circles and among economists as it could have a significant impact on the Russian economy in the long term. Russian authorities have not yet commented on the information.
Previously, large banks in China stopped accepting payments in yuan from Russia, blocking transactions – the money was returned to clients back to the Russian Federation.
Author: Mark Voroshilov
2024-04-03 11:47:22
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