**Russia’s Foreign Currency Reserves Are Running Low**
Russia’s foreign currency reserves, which were built up over a decade using surplus revenues from the raw materials sector, are almost exhausted. According to reports on December 5, the National Welfare Fund (NWF) had around $53.8 billion in liquid assets as of December 1. This is down from approximately $140 billion before Russia’s full-scale invasion.
**Russia Selling Gold Reserves**
To address its budget shortfall, Russia has started selling off gold reserves from the NWF. Between June and early December, 50 tons of gold were sold, leaving 279 tons in reserve. The total value of these sales is not known.
**Budget Shortfalls Ahead**
Russia’s 2025-2027 budget projects increasing deficits – $11 billion in 2025, $21 billion in 2026, and $28 billion in 2027. These projected shortfalls of $61 billion over three years are higher than the NWF’s remaining liquid reserves.
**Russian Economy Affected by US Sanctions**
Recent US sanctions against 50 Russian banks have disrupted financial transactions with China. This has forced Russian importers to rely on intermediaries to pay Chinese sellers, as direct payments have become nearly impossible under intensified US scrutiny.
**Ukraine War Continues**
November marked the fifth consecutive month of rising Russian casualties, with an estimated total of 45,690 soldiers lost during the month. The Crimean Bridge has been temporarily suspended due to disruptions in supply lines.
**International Reaction**
The Ukrainian Congress Committee of America (UCCA) has expressed concerns over Elon Musk’s contacts with Russia and the alleged use of his Starlink system by Russian forces in Ukraine. The U.S. is set to send hundreds of thousands of artillery rounds, thousands of rockets, and hundreds of armored vehicles to Ukraine before mid-January.
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