Liquid reserves in Russia have been progressively reducing, going from 117 billion in 2021 to 31 billion dollars at the end of November. The current low figure has led economists to raise the possible depletion of its reserves, which, if it continues along this path, could occur this fall, which would hinder Russia’s war efforts.
This is explained by the European economist Anders Åslund, who was a member of the Atlantic Council, who has suggested that the liquid reserves of the Russian National Wealth Fund They could be finished in the fall of this year. “The most critical shortage, however, is budget financing, as Russia’s last liquid reserves are likely to be depleted in the fall of 2025,” Åslund said in an op-ed in Project Syndicate.
“Budget cuts will then be necessary. Meanwhile, the war economy may also require price controls and rationing, the old Soviet sins. “As the risk of financial collapse increases, Russia’s imperiled economy is about to pose serious limitations to Putin’s war,” he added.
One of the reasons why the Russian wealth fund has suffered this collapse is due to the international sanctions, which has prevented Putin’s country from borrowing from other countries, along with inflation and a shortage of workers.
“Russian President Vladimir Putin frequently boasts about the strength of his country’s economy, claiming that Western sanctions only made it stronger. In fact, the stagflation– inflation combined with minimal growth – is coming to Russia,” the economist explained. Meanwhile, the Atlantic Council assured that if Russia continues to face economic problems, could force the country to end the conflict.
