Russia may not include crypto in its National Welfare Fund investments

Vladimir Kolychev disclosed that the Russian Ministry of Finance did not have plans to change the current regulatory structure of the National Welfare Fund’s investments. He said that the NWF’s savings level did not allow considering risky investments such as crypto, which he said were ‘too volatile’.

The deputy Finance Minister confirmed that the NWF would maintain its current regulatory structure, which included 60% yuan and 40% gold. Kolychev also added that he had not heard of any discussions about creating a strategic crypto reserve in Russia. He emphasized the importance to Russia–from the point of view of sovereign budget reserves–that the assets invested in these reserves could be sold very ‘quickly and without a large price revaluation.’ 

Russia to retain investment strategy for the National Welfare Fund 

Vladimir Korechev, 🇷🇺 Deputy Minister of Finance, told the media on March 4 that the Ministry does not consider or intend to use crypto as an investment tool for the national welfare fund, because of volatility. The main reserves are still RMB and gold

— David Lee (@DavidLe76335983) March 5, 2025

Kolychev revealed that the Russian Finance Ministry had no immediate plans to buy or hold any crypto assets as part of the NWF’s investments but has claimed that this could change if a key condition is met.

He said that it was premature to talk about the possibility of including crypto assets, which he considered to be too volatile and risky. The deputy minister explained that the NWF’s liquid funds should be topped up to 7-10% of Russia’s GDP before Moscow considers buying ‘riskier’ assets like crypto. After that, investing NWF funds in less liquid and more profitable assets would be possible. 

However, Kolychev also pointed out that Russia was ‘still far’ from reaching its desired levels of diversified reserve portfolios, which was why Moscow only bought gold and yuan reserves for the time being. He maintained that he had not caught wind of any discussions about creating a Russian crypto reserve, similar to what President Trump’s administration had conceived in the United States.

“When we get there, we will be able to think about different assets, including crypto. However, for now, the volatility signs are not favorable.”

– Vladimir Kolychev

President Trump signed an executive order in February ordering the creation of a sovereign wealth fund (SWF) within the next year, hinting that it could potentially buy TikTok. Trump told reporters that the U.S. was ‘going to create a lot of wealth for fund’ although the executive order’s text was sparse on details, simply directing the Treasury and Commerce Departments to submit a plan for ‘such a fund within 90 days’, including recommendations on funding mechanisms, investment strategies, fund structure, and a governance model.

Russia remains skeptical about a strategic crypto reserve

According to Kolychev, the Russian Central Bank will make the final decisions on including crypto in the NWF reserve. However, the Russian Central Bank Governor Elvira Nabiullina is reportedly a known crypto-skeptic who has attempted several times to orchestrate a total China-style ban on crypto in Russia. 

The Russian government ruled out the possibility of a strategic crypto reserve back in December 2024, noting that it would take a cautious stance and wait for other nations to take the lead in buying Bitcoin (crypto). Anton Siluanov, the Russian Finance Minister, stated that the country would be ‘better off keeping its powder dry.’

Siluanov told a Financial University student audience that ‘the issue of creating a crypto reserve could be considered in the future’ but added that the matter was not currently ‘on the table’. He pointed out that Russia did not take those kinds of risks despite the Americans talking about building a national Bitcoin reserve now. 

VanEck analysts estimated that the U.S. could cut its debt by 35% by 2049 if Washington starts buying Bitcoin. U.S. lawmakers have already ‘set the stage’ for the SBR by crafting bills that would prepare the legal framework for such a state and/or federal investment. Russian lawmakers have also reportedly urged their government to act fast to keep up with Washington. However, Siluanov said that ‘maybe someday’ the Russian government ‘will come around to the idea.’

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