
“Putin signed a law allowing the placement of NWF funds in shares of Russian companies and government securities” (RIA Novosti, 09.03.2022).
What is the National Wealth Fund:
“The National Wealth Fund (NWF) is a part of federal budget assets. NWF is dedicated to support pension system of the Russian Federation to guarantee long-term sound functioning of the system. Fund’s primer assignments are to co-finance voluntary pension savings of Russian citizens and to balance budget of Pension Fund of the Russian Federation” (NWF – About).
Things are not looking good financially in Moscow or in the Russian Federation. As the Russian invasion of Ukraine is costing the Russian a fortune. They are losing contracts, businesses and ability to trade like never before. Foreign companies are stopping to trade or even do business in Russia. Everything from importing vehicles to having a latte at Starbucks. All sort of European and Multi-National Corporations are stopping. They cannot even listen to Spotify anymore. That’s how things have moved.
This is taken to such an extent that the financial inclusion with the rest of the world is gone within 14 days. It took only two weeks from the Western corporation to see the light and bail out. They are ensuring the Russians doesn’t have the liquidity or equity, heck even the ability to transfer funds to cover the basics. The rouble is devalued and the rating of government bonds is also failing.
So, things are grim when the Russian Federation is blocking the ability to take currency across the border. Neither is the SWIFT working in various of banks. The U.S. is planning to stop the imports of oil. While there is still in the works to stop gas from being exported to Europe. If that all succeed the Russian will have less or lack foreign exchange. The dollarization of the economy is just gone. The Petrodollars and whatnot just vanished.
Yes, the Russians are connecting to the MIR System instead of VISA/Mastercard/American Express, but that is only by default and not because the Russians wants to. Yes, the Eurasia enterprise between Russian and China is good for business there. However, it will not be accessible in the West. This will only be with the few partners of Russia, which is a few former USSR republics and China. Not a giant market or a way of patching the obvious hurt.
You know things are bad when the President has to order the spending of the pension funds to salvage the Russian corporations. That shows there is severe problems and crippling financial structure only after a two weeks. This is really costing the companies and the state. As the NWF hav to cover the sudden lack of cash flow and keep things a float.
I am sure not all people will cry over the loss of Coca-Cola or McDonalds. However, it is a sign of the times ahead. The Russian economy isn’t boosted or been prepared for the severity of sanctions this time around. If they were.. the NWF wouldn’t be accessible as a form of covering over the lack of funding and saving companies. It is not done in good will, but of necessity. You don’t spend the collected pensions of your citizens on failing corporations for fun, but because you have too.
This is showing what sort of consequences the war has on the markets. As they are failing and now the state has to bail it out. That is a financial crisis and you have resorted to these means, if you didn’t have too. Peace.













