RUSSIAN National Wealth Fund Reserves Collapse as Expenditure Rises & Income Falls

Video Summary

Russia’s economy has been significantly impacted by the war in Ukraine. With the West freezing $300 billion of Russia’s assets, held in overseas financial institutions, Russia has been forced to dip into its remaining reserves to fund the war. In this article, we’ll examine the situation with Russia’s reserves, including its total assets, liquid and non-liquid, and how they’ve been affected by the war.

As of the time of the invasion, Russia had assets valued at around $600 billion, with $375 billion of those assets held outside Russia. However, $300 billion of those assets have been frozen, leaving Russia with $375 billion. Of that, $27 billion was held in the Euro Zone, $67 billion in the USA, and so on.

Russia has also been diverting a significant amount of its liquid reserves to fund the war, which has led to a sharp reduction in its liquid reserves. The European Union has agreed to issue a $50 billion bond, with the interest generated being used to support Ukraine.

A forecast by Bloomberg estimates that Russia’s liquid reserves will run out by 2025 if the price of oil remains at $60 per barrel and production remains at 9 million barrels per day. However, if the price of oil increases to $100 per barrel, Russia’s reserves could last until 2098.

The article concludes that Russia is facing a serious situation, with its liquid assets down by over 43% since the start of the war, and its international purchasing power reduced by more than 50%. The country is also experiencing a huge reduction in its income, down by 73 billion compared to its annual income pre-war. The article suggests that the West needs to keep the price of Russian oil contained to ensure that Russia’s reserves run out within the next 12-18 months, which could be a chance for Ukraine and the West to bring a conclusion to the conflict.

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