The Ministry of Finance of Russia has circulated a draft resolution that would adjust the assets in which the National Wealth Fund (NWF) may invest. The proposed changes would remove the debt obligations of foreign governments and financial institutions from the list of permitted assets, reshaping the fund’s approach to diversification and risk management. This maneuver appears to reflect a strategic response to external pressures while maintaining the fund’s long-term fiscal responsibilities. In the draft, the government outlines the types of assets that can legally hold NWF money, emphasizing liquidity, safety, and the ability to meet sovereign priorities in the coming years.
Under the draft, several familiar asset categories remain permissible. Foreign currency holdings would continue to be allowed, as would deposits and balances in bank accounts with the Central Bank of Russia. Domestic public debt that aligns with the fund’s policy goals would also remain eligible for investment in 2023. The document further proposes that the pool of eligible instruments should include shares issued by Russian bond issuers that are not involved in funding self-sustaining infrastructure projects listed by the government. This adjustment signals a nuanced shift toward prioritizing assets that align with Russia’s current economic governance and strategic development plans while excluding certain foreign debt instruments from the NWF portfolio.
As February concluded, the ministry clarified that EU-imposed restrictions on the National Wealth Fund would not impede the availability of funds for the Russian government. The ministry stressed that forthcoming investments from the fund would proceed with careful planning, ensuring adherence to the new framework and the broader financial strategy. Observers note that the fund’s operational discipline remains central to supporting government expenditures and stabilizing the economy amid global uncertainties.
In late February, a broader development arose as the European Union implemented the tenth package of sanctions related to Russia. The new measures brought additional restrictions that affected numerous individuals and entities. The fund and Russia’s financial authorities have consistently framed their responses around maintaining liquidity, safeguarding sovereign cash flows, and sustaining confidence in Russia’s monetary policy despite the externally imposed restraints. Analysts emphasize that the evolving sanction landscape will continue to shape how Russia allocates resources through the National Wealth Fund and related fiscal instruments, with a continued emphasis on strategic asset selection and risk containment.