When Putin brutally invaded the Ukraine almost two years ago, it was because Russia had built up a massive "National Welfare Fund" (NWF) that could be used to support the Russian economy when Western sanctions hit. It now looks like this major strategic asset is badly depleted, following a massive sell-off on the last day of the year.
According to reliable Russian news sources, the Ministry of Finance secretly sold off much of the NWF on the last working day of 2023, when most people would be distracted by the New Year holidays (and lots of vodka). Since then the sell-off has only been reported as a "minor news item" in Kremlin-controlled media, but it isn't minor, it is massive, as it quite simply means that Putin's economic assets are approaching a crisis point that should see the downfall of his regime even before the US Presidential election in November, in which Russian hopes are pegged on a Trump victory.
Konstantin Samoilov, who runs the YouTube channel Inside Russia, reported that the Ministry of Finance quietly sold its remaining 573 million Euros, along with 114 billion Chinese Yuan and 232 tonnes of gold on the last working day of the year.
This means there are now no dollars or euros in the NWF, namely the most liquid and therefore the most useful assets. While the NWF still has 358 tonnes of gold and 227 billion Chinese yuan left, these assets are much more difficult to use due to various international sanctions.
It is clear that this massive sell-off was to provide a degree of economic and political stability going into Russia's so-called Presidential "election" in March (which is simply a ritual of anointing power rather than a real election). After this, the Russian economy is expected to crash brutally, with Putin resorting to much more violent, murderous, and extreme methods to retain power.
This means there are now no dollars or euros in the NWF, namely the most liquid and therefore the most useful assets. While the NWF still has 358 tonnes of gold and 227 billion Chinese yuan left, these assets are much more difficult to use due to various international sanctions.
It is clear that this massive sell-off was to provide a degree of economic and political stability going into Russia's so-called Presidential "election" in March (which is simply a ritual of anointing power rather than a real election). After this, the Russian economy is expected to crash brutally, with Putin resorting to much more violent, murderous, and extreme methods to retain power.
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