June 03, 2021

Russia Cuts Dollar Holdings From $119 Billion Wealth Fund Amid Sanctions

Featuring Elina Ribakova

Source: Bloomberg

Journalists Evgenia Pismennaya, Anna Andrianova

Russia said it will eliminate the dollar from its oil fund to reduce vulnerability to Western sanctions just two weeks before President Vladimir Putin holds his first summit meeting with U.S. leader Joe Biden.

The National Wellbeing Fund will shift its dollar holdings into euros, yuan and gold, Finance Minister Anton Siluanov said.

The dollar pared gains on the news Thursday before bouncing back as analysts said the immediate market impact is likely to be limited. The transfer will take place within the central bank’s huge reserves. It affects about $119 billion in liquid assets, of which about a third is held in dollars.

Read the full story and more from Bloomberg.

Authors

  • Elina Ribakova

    Adjunct Senior Fellow, Energy, Economics, and Security Program

    Elina Ribakova Ribakova directs the IIF’s economic research on emerging markets, with special interests in Russian economics and financial stability. Ms. Ribakova was previou...