Russia's National Wealth Fund shrank by 210.28 billion rubles in September, bringing its total volume down to 12.985 trillion rubles on October 1, according to figures published by the Russian Ministry of Finance.
In US dollar terms, the sovereign fund dropped from 154.145 billion dollars to 153.795 billion dollars over the monthly reporting period. That decline reduced the fund's size from 5.6 percent of projected gross domestic product to 5.5 percent.
Over the three-month period covering July, August, and September, the fund decreased by 119.58 billion rubles. The Ministry of Finance noted that the overall three-month drop was moderated by asset growth recorded during August.
Drop in liquid reserves
The liquid portion of the National Wealth Fund also contracted significantly during September, falling from 3.998 trillion rubles to 3.8 trillion rubles by the start of October.
In dollar terms, liquid assets decreased from 45.7 billion dollars to 45 billion dollars over the month. As a proportion of Russia's projected gross domestic product, the liquid reserve shrank from 1.7 percent to 1.6 percent.
Liquid assets represent the readily accessible capital held within the sovereign wealth fund, including foreign currencies and gold held in central bank accounts, which can be deployed immediately to address government revenue shortfalls.
Government spending and function
Russian Finance Minister Anton Siluanov previously commented on the strategic importance of the fund, stating that every financier should maintain a financial stash as standard practice in sound financial work, and that the fund serves that purpose for Russia.
Siluanov added that the Russian government has drawn heavily on the reserve in recent years, with approximately 15 trillion rubles spent from the fund since 2019.
Sovereign fund background
The National Wealth Fund is Russia's primary sovereign wealth reserve, managed directly by the Ministry of Finance in Moscow. It was originally established to support the national pension system and to provide fiscal stability for the federal budget during periods of low energy revenue or economic crisis.
The fund's total assets are divided into two main categories: liquid reserves that can be spent on demand, and illiquid holdings. The illiquid portion consists of long-term investments, including shares in state corporations, bonds, and financing for major domestic infrastructure projects.
