War in Ukraine Drains Nearly Half of Russia’s Liquid Assets
- Investments in Russian firms, infrastructure projects surge
- Liquid asset depletion leaves nation vulnerable to shocks
People walk past a billboard reading "Our country, our victory!" in Saint Petersburg, on Jan. 16.
Photographer: Olga Maltseva/AFP/Getty ImagesRussia’s government has tapped almost half of the national wealth fund’s available reserves to shield the economy against the fallout from its almost two-year war in Ukraine, leaving it vulnerable to future shocks.
The National Wellbeing Fund’s holdings of cash and investments that can be easily liquidated slumped to 5 trillion rubles ($56.5 billion) at the end of last year from 8.9 trillion rubles before the war, while total holdings fell almost 12% to 12 trillion rubles, Finance Ministry data showed. The value of the fund’s stakes in Russian companies and in bonds that were issued to finance infrastructure projects has surged by more than 2 trillion rubles, according to Bloomberg calculations.