Russian rainy-day fund shrinks 11.5% to $155 billion in February -Breaking
(Refiles Wednesday Story to Fix a typo in National Wealth Fund Abbreviation
(Reuters). -Russia’s National Wealth Fund or NWF, which collects country’s oil revenues fell 11.5% to $154.8billion in February, as Russian companies lost value, data from the Finance Ministry showed Wednesday.
Russian stocks have fallen sharply due to unprecedented Western sanctions that were placed on Russia by the West for “a special operation” in Ukraine. They began Feb. 24, and are still in place.
Originally created to balance pension systems, the NWF was 9.7% as of March 1. This is down from 10.2% or $174.9 million a month prior.
Ministry said that the liquid assets of the fund stood at $116.6billion, 7.3% off projected 2022 GDP, as of March 1. This compares with $112.7billion, which was 6.6%, a month before.
Its investments in Russia’s No.1 lender Sberbank were worth 1.5 trillion roubles. This was down from the 3 trillion roubles it had invested a month prior. Meanwhile, Aeroflot’s value investment has fallen to 30.7 million roubles.
Russia was planning to make use of NWF money this year to repay some state borrowing. The fund will also channel 1 trillion Russian rubles to aid the struggling stock market as authorities seek ways to protect the economy from any sanctions.
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