Russia’s Finance Ministry announced that it would resume purchases of foreign currency for the National Wealth Fund after an increase in additional oil and gas revenues.
The ministry planned to buy 110.3 billion rubles worth of foreign currency between May 8 and June 4. In practice, a large share of Russia’s state foreign-currency transactions is conducted in Chinese yuan.
Reuters said these would be the first market purchases of this type since the start of Russia’s full-scale war against Ukraine.
Higher global oil prices were linked in part to the war in the Middle East. The benefit to Russia’s budget was nevertheless constrained by sanctions-related discounts on Russian crude and by the impact of Ukrainian strikes on oil infrastructure.
Russia’s additional oil and gas revenues in April came in well below expectations, while total oil and gas receipts were lower than a year earlier.
The decision to resume currency purchases was particularly notable because Russia’s budget deficit was simultaneously expanding sharply, as Finance Ministry figures released two days later showed.