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Russia National Wealth Fund
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Russia National Wealth Fund

Russia's sovereign wealth fund; liquid assets down 60% from pre-invasion as war spending accelerates.

The US licence that let Russian diesel into American markets on 9 October still bars any debit to US-held accounts of the National Wealth Fund, keeping Russia's rainy-day reserve frozen in the United States as its liquid assets run low.

Last refreshed: 12 October 2026 · Appears in 2 active topics

Key Question

How long can Russia's NWF sustain war spending at current depletion rates?

Timeline for Russia National Wealth Fund

#28 9 Oct

Blocked sovereign account holder

Russia-Ukraine War 2026: Mentioned in: OFAC opens US market to Russian diesel
#24 9 Jul
#21 1 Jun
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Background

The National Wealth Fund is Russia's sovereign wealth fund, set up in 2008 to save surplus oil and gas revenue, steady the federal budget in commodity downturns and back long-term pension obligations. The Finance Ministry manages it. It holds liquid assets, chiefly foreign currency and gold, and illiquid stakes in Russian state companies and projects. Before the 2022 invasion it peaked at about $186bn.

Since the invasion it has become the budget's shock absorber. It shed 400bn roubles, about $4.8bn, in January and February 2026 alone, and by June its liquid assets stood at about 3.6 trillion roubles, roughly 60% below pre-invasion levels. Total assets, including the illiquid stakes, were about 13.1 trillion roubles on 1 July.

Western sanctions shape what it can use. US-held accounts of the fund remain blocked even under the October 2026 licence that opened the US market to Russian diesel. With defence taking 38 to 40% of federal spending in 2026, the pace of the fund's drawdown is the best single indicator of Russia's fiscal staying power.

Key Issues
US sanctions

The fund stays frozen in America

Washington's easing of Russian energy sanctions stopped short of the fund. General License 135, issued on 9 October and running to 7 April 2027, lets US buyers import Russian diesel and pay Russian sellers, but its paragraph (b) bars any debit to US-held accounts of the Bank of Russia, the Finance Ministry and the National Wealth Fund.

That line has held through every waiver change of 2026. The crude-oil licences that came and went in the spring, GL 134A and GL 134B, which expired on 16 May with no successor, covered trade, not the reserve. For the fund, the practical effect is that whatever it holds in US accounts cannot be used to plug Russia's budget gap.

Budget drawdown

War spending drains the liquid reserve

The fund's liquid assets are the clearest public measure of how long Russia can finance the war from savings. On 17 April Economic Development Minister Maxim Reshetnikov told Meduza the reserves were "largely exhausted", and on 28 April he projected that the liquid share could fall to about $12.5bn by the end of 2026.

The summer brought a pause rather than a recovery. Liquid assets rose by 200bn roubles in June to about $46.4bn on 1 July, as Russia posted its first monthly budget surplus of the year, but the half-year deficit stood at 5.73tn roubles. By 30 September the January to September deficit had reached 5.19tn roubles, with oil and gas revenue forecast 1,335bn roubles short of plan.

Common Questions

The fund stays frozen in America

Why is Russia's oil revenue falling in 2026 despite high spending?
Oil and gas revenue for January-May 2026 is 33% below the same period of 2025. Ukrainian drone strikes on refineries have disrupted roughly 25% of Russian refining capacity, while Urals price discounts and Western sanctions cap export revenues.Source: Reuters / Lowdown
How much money does Russia have left in its National Wealth Fund?
As of June 2026, the NWF's liquid assets stand at 3.6 trillion roubles, down roughly 60% from pre-invasion levels. The fund shed 400 billion roubles in January-February 2026 alone.Source: Russian Finance Ministry

War spending drains the liquid reserve

Why did Russia post a budget surplus in June 2026?
Russia's Finance Ministry attributed the 0.28tn roubles June surplus, reported on 9 July, to front-loaded contract advances tapering off rather than to a genuine recovery in oil and gas revenue; the half-year deficit still stands at 5.73tn roubles.Source: event
Is Russia's war chest running out of money?
Not as fast as forecast. Liquid National Wealth Fund assets rose 200bn roubles to 3.61tn roubles (about $46.4bn) as of 1 July 2026, against a May projection from Economic Development Minister Maxim Reshetnikov of roughly $12.5bn by year-end.Source: event
How much did Russia's sovereign wealth fund lose in 2026?
Russia's National Wealth Fund shed 400 billion roubles ($4.8 billion) in January and February 2026 alone, continuing a drawdown driven by record military spending.Source: Russian Finance Ministry / business reporting
What percentage of Russia's budget goes to defence in 2026?
Russia's 2026 federal budget allocates 16.8 trillion roubles to defence and security — 38-40% of all federal spending, the highest proportion since the Soviet era, according to SIPRI analysis.Source: SIPRI
What is Russia's National Wealth Fund and how large is it?
Russia's National Wealth Fund is a sovereign savings vehicle funded by oil and gas surplus revenue. It peaked at around $186 billion before 2022 and has been drawn down continuously to fund war-driven budget deficits.Source: SIPRI
What happens when Russia's sovereign wealth fund runs out?
Once liquid NWF assets are exhausted, Russia faces deficit financing, further tax increases, or accelerated money printing. All three carry political and economic risks in a wartime economy already under inflationary pressure.Source: Lowdown / Carnegie

Written with AI from Lowdown's published reporting. Not individually reviewed by an editor. Updated 12 October 2026. Editorial standards.