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Russia Increases Its National Wealth Fund for the First Time in Nearly a Year
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Russia has started buying foreign currency and gold for its National Wealth Fund for the first time since last June.
This decision follows an increase in export revenues driven by rising oil prices linked to the situation in the Middle East, according to Bloomberg on May 6.
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The Russian Ministry of Finance announced on Wednesday that it will purchase 110 billion rubles ($1.5 billion) worth of assets in May. This amount accounts for transactions that were previously delayed during March and April.
The financial move suggests a gain for the Russian government resulting from regional tensions. It offers Moscow an opportunity to restore its state reserves after spending more than half of its "rainy day" funds to finance Russia’s full-scale invasion of Ukraine.
Under current Russian fiscal rules, excess energy revenues are saved when the export price of Russian oil stays above 59 dollars per barrel. Conversely, funds are withdrawn to cover budget deficits when prices fall below that mark. During the first two months of the year, Russia used about 419 billion rubles ($5.7 billion) from the fund to make up for lower oil revenues.
According to data from the Ministry of Finance, the fund's available assets stood at 3.6 trillion rubles ($49.1 billion) as of May 1. This represents a 14% decrease since January and a decline of roughly 60% compared to levels seen before Russia’s full-scale invasion of Ukraine.
Earlier this year, officials considered lowering the oil price threshold to slow the depletion of reserves, and certain fiscal operations were suspended until July. However, those plans were adjusted as demand and prices for Russian oil grew following shipping disruptions in the Strait of Hormuz and a temporary easing of some sanctions pressure.
“In our base case, we expect the National Wealth Fund to grow by about $12 billion throughout the rest of the year, which more than compensates for the decline in the first quarter. Higher oil prices should allow the government to postpone unpopular fiscal decisions until the fall, providing a lifeline for an economy that was on the verge of recession in the first quarter,” said Ekaterina Vlasova, an economist for CEE and Russia.
Despite the current trend, Moscow remains cautious that these favorable conditions might not last. Officials are considering lowering the oil price threshold starting next year to continue building up the fund.
The Middle East crisis became a critical financial lifeline for Russian authorities in early 2026 as the country's budget deficit spiraled out of control. The blockade of the Hormuz Strait triggered a sharp rise in crude prices, providing a sudden "oil bonus" that allowed the Kremlin to keep its annual deficit within planned limits.
This influx of cash supported the prioritization of military spending for Russia’s full-scale invasion of Ukraine, even as oil and gas revenues had previously dropped by 47.1% due to overly optimistic price forecasts.
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