The ministry of finance of the rf Admits: the Decline in Foreign Exchange Earnings and Sanctions Are Depleting russia’s Financial Reserves

As of June 1, 2025, the size of the national wealth fund (nwf) had decreased by $1.2 billion. This is how the rf ministry of finance assessed the situation.

First of all, its liquid part decreased to $35.7 billion. Besides, the volume of gold (by 28.8 tons a month) and yuan (by 10.9 million), as the illiquid part of the reserve, began to decline.

The reason for the sale of gold and the reduction of the national wealth fund is the need to cover the federal budget deficit amid the declining oil and gas revenues.

As a result, the rate of decline in the liquid part shows  that the fund is becoming less flexible as a tool for covering the budget deficit. The situation is further complicated by a decline in foreign exchange earnings (by 35.4 % year-on-year), lower Urals oil prices, and sanctions pressure.

The Foreign Intelligence Service of Ukraine forecasts   that if the downward trend continues, the kremlin risks losing the ability to use the “financial shock absorber” by the end of 2025.