Russia may be forced to return to international debt markets for the first time in a decade, according to Catherine Belton of the FT, in order to meet looming budget deficits. This of course implies that the massive reserves that Russia built up over the past decade will be tapped out:
“…it lost one third of reserves, or $200bn, battling a run on the rouble at the end of last year, while the remaining $384bn could be stretched covering budget deficits for the next three years.”
By implication, this means that Russia’s National Welfare Fund may–at least temporarily–cease to exist in 2012/13. It simply will not have any assets left to manage!
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