Russia’s sovereign wealth fund has shrunk by 57% since the start of the full-scale invasion of Ukraine, with cash and liquid investment reserves falling by 24% to 3.8 trillion rubles. The depletion reflects the heavy financial burden of maintaining a war economy under international sanctions.
According to data reported by Bloomberg, Russia has been drawing heavily on its reserves to finance military operations and prop up its economy, which is under immense pressure from sanctions. In 2024 alone, nearly a quarter of the National Welfare Fund’s available reserves were used to sustain economic stability under martial law and fund the invasion of Ukraine.
At the beginning of 2022, before the war escalated, the National Welfare Fund held approximately 8.9 trillion rubles. By January 2024, the fund’s total assets remained close to 12 trillion rubles (about $117 billion). However, the portion of cash and easily liquidated investments has dropped significantly, down 24% from the previous year to 3.8 trillion rubles.
The Bank of Russia’s October report on monetary policy scenarios warned of a potential collapse of the fund by 2025 if external conditions worsen significantly, including further sanctions and a sharp decline in oil prices. This would leave Russia with limited financial resources to navigate future economic challenges.
| Key Figures | Details |
|---|---|
| National Welfare Fund (2022) | 8.9 trillion rubles |
| Current Total Fund (2024) | ~12 trillion rubles ($117 billion) |
| Cash/Liquid Reserves (2024) | 3.8 trillion rubles (-24%) |
| Fund Decrease Since Invasion | 57% |
The financial strain has also affected Russia’s domestic infrastructure. For instance, Russian Railways reduced its investment program by 30% in response to higher borrowing costs and logistical challenges caused by increased military cargo and sanctions.
With sanctions intensifying and the cost of the invasion mounting, experts predict further economic challenges for Russia, particularly if global oil prices decline or if sanctions tighten, limiting access to critical markets.
