Russia’s National Wealth Fund, the country’s financial safety net, lost nearly $6 billion in liquid assets in May, according to data released Wednesday by the Russian finance ministry.
The fund’s readily available liquid assets fell by $5.75 billion, or 453.8 billion rubles, bringing the total down to $35.5 billion (2.8 trillion rubles). Since Russia’s invasion of Ukraine in February 2022, the fund’s liquid assets have dropped by 68%, Bloomberg estimates.
A major factor behind the decline is falling oil prices, which have cut deeply into Russia’s oil and gas revenues. Although the volume of crude exports in the four weeks leading to May 25 remained steady compared to the previous month, the value of those exports hit its lowest point since April 2023, according to Bloomberg’s Julian Lee.
Russia’s oil and gas income totaled $6.5 billion (512.7 billion rubles) in May, down more than 35% from May 2024. This marks the weakest monthly revenue since June 2023.
Finance Minister Anton Siluanov said last week that the government might revise its oil price benchmark under the current budget rule due to the recent price slump. The rule sets a baseline price of $60 per barrel—any revenue earned above this level is saved in the National Wealth Fund. When oil prices fall below that level, as they have for two months, the government draws from the fund to make up for the shortfall.
The continued decline in oil prices and export revenues has added pressure on Russia’s already strained economy, making the fund’s shrinking reserves a growing concern for long-term financial stability.
Related Topics:
- Argentina’s Vaca Muerta Fuels Oil Boom and Economic Recovery
- USGS Finds Vast Oil and Gas Reserves in Wyoming, Colorado, Utah Region
- U.S. Offshore Oil Production Set to Rise Amid Shale Slowdown