Skip to content
Edit post

Bloomberg: Russia saved $80 billion in foreign assets in year under sanctions

by The Kyiv Independent news desk March 14, 2023 3:15 PM 1 min read
This audio is created with AI assistance

Over the first year of its all-out war against Ukraine, Russia accumulated nearly a third of its profits from commodity exports abroad, creating a new potential target for Western sanctions, Bloomberg reported on March 14.

According to a Bloomberg Economics estimate, about $80 billion of Russia's funds are dispersed across cash deposits, real estate, and investments in affiliated companies.

As a byproduct of a record current-account surplus, these shadow reserves have helped the Kremlin maintain its finances in the face of international sanctions introduced last year, the publication wrote.

"Due to Europe's delay with targeting Russia's energy sector, the Kremlin was able to accumulate one of the largest current-account surpluses in its history," said Maria Shagina, an economist at the UK-based International Institute for Strategic Studies, as quoted by Bloomberg. "This has de facto negated the effect of freezing the central bank assets in March 2022, as Russia could recoup what it lost."

By amassing assets abroad in 2022, Russia reportedly received a replenishment of about 5% of its gross domestic product.

These foreign assets could potentially become the next target of sanctions by Ukraine's allies, especially if the state directly manages the money, according to Bloomberg. Though Russia's government is a shareholder in many large exporters that contributed to last year's windfall, it is reportedly unclear who controls the funds.

Bloomberg added that even if the Western countries identified the owners of these funds and proved their links to Russia's state to impose sanctions, the proportion of discovered assets would likely be smaller than the official estimates.

The European Council issued a press release on March 13 extending sanctions against 1,473 individuals and 205 entities who support Russia's war against Ukraine for an additional six months.

According to the European Council, they hope the sanctions will deprive Russia of the ability to sustain the war by weakening its economy and denying it access to essential technologies and markets, diminishing its capacity to wage war.

WSJ: Russia's budget deficit widens after Western sanctions nearly halve oil and gas revenues
Support independent journalism in Ukraine. Join us in this fight.
Freedom can be costly. Both Ukraine and its journalists are paying a high price for their independence. Support independent journalism in its darkest hour. Support us for as little as $1, and it only takes a minute.
visa masterCard americanExpress

News Feed

7:21 PM

Budanov: Russia's goals for 2024 same as previous two years.

Ukraine's military intelligence chief Kyrylo Budanov said that Russia’s goal is still to destroy Ukrainian statehood and reach the administrative border of Luhansk and Donetsk oblasts to “keep what they already have," but that they "have been unable to do (so) by military means."
6:23 PM

Budanov: Transnistria not planning to appeal to join Russia.

Concerns arose after the Institute for the Study of War issued a warning on Feb. 22 that Transnistria was possibly planning to organize a referendum on its annexation to Russia at an announced Transnistrian Congress of Deputies planned for Feb. 28.
Ukraine Daily
News from Ukraine in your inbox
Ukraine news
Please, enter correct email address
10:52 AM

Trump wins South Carolina primary.

Former U.S. President Donald Trump won South Carolina's primary, where Republicans voted for their preferred presidential candidate, results showed on Feb. 25.
2:42 AM

US philanthropist pledges $300 million for Ukraine in 2024.

The Howard G. Buffett Foundation has already donated over $500 million in humanitarian assistance to Ukraine since the start of Russia's full-scale invasion. The combined funds exceed the humanitarian aid contributions of the United Kingdom, the Netherlands, and Canada.
MORE NEWS

Editors' Picks

Enter your email to subscribe
Please, enter correct email address
Subscribe
* indicates required
* indicates required
Subscribe
* indicates required
* indicates required
Subscribe
* indicates required

Subscribe

* indicates required
Subscribe
* indicates required

Subscribe

* indicates required
Successfuly subscribed
Thank you for signing up for this newsletter. We’ve sent you a confirmation email.