Russia's international reserves and oil funds

Abstract

Russia's international reserves decreased considerably in 2014, due in particular to the outflow of capital. The reserves are still relatively large and consist of liquid assets in accordance with international reporting practice. The majority of oil funds accumulated by Russia are part of the country's international reserves because they are controlled by the central bank, which has invested them in liquid foreign assets. This year, Russia has again started to tap its oil funds to compensate for the weakness of the economy. Because the assets have been drawn from the funds in roubles, this has not impacted the volume of international reserves.