The Ministry of Finance of the Russian Federation reported a sizable balance in the National Welfare Fund (NWF), noting that funds available to the fund reached 11.1 trillion rubles. This figure was disclosed in a formal message issued through official online channels. As of March 1, 2023, the NWF stood at 11.1 trillion rubles, which represented about 7.4% of the GDP projected for 2023. This percentage underscores the fund’s role as a macroeconomic tool tied to the country’s broader growth outlook and fiscal planning for the year. The same release confirmed that the liquid asset portion of the NWF amounted to 6.44 trillion rubles in equivalent value, highlighting the fund’s liquidity posture and its ability to mobilize resources for potential stabilization or strategic spending if needed.
Earlier communications indicated that Russia’s annual budget receipt included approximately 52 billion rubles added in 2022 through the investment of NWF assets into financial instruments. At that time, the fund’s strategy involved placing portions of its capital into financial assets, aiming to generate returns while preserving capital over the long run. The same period saw the Bank of Russia hold NWF funds in foreign currency accounts, a decision that yielded a negative result of minus 6.190 billion rubles after accounting for the loss carried over from the prior interest period. These movements illustrate the inherent volatility and risk-return tradeoffs that come with currency-exposed placements within sovereign wealth strategies.
Looking at the overall performance, the deposit activity of the NWF with accounts at the Bank of Russia produced a negative return of minus 0.05% in 2022. Yet, when evaluated over the fund’s entire lifetime since its inception in January 2008, the annualized return stood at plus 1.10%. In ruble terms, the 2022 performance translated to an annual loss of minus 6.03%, contrasting with a cumulative gain of plus 13.73% from the fund’s founding through the present. This juxtaposition reflects how short-term market conditions can swing outcomes, even as longer-term performance remains positive overall. Investors and policymakers often monitor these indicators to gauge resilience, risk management, and the long-run contributions of the NWF to fiscal stability and intergenerational savings.