Going for broke: When will Russia run out of money?

The Russian invasion of Ukraine began in February 2022 and since then there have been all sorts of speculation, including the collapse of the ruble. However, this seemingly imminent bankruptcy has yet to happen.

Some people think Putin's final blow might not be given on the battlefield but to his wallet.

Two weapons that the Western nations have used against Russia are sanctions and isolation. Many experts believe they will soon cash in from this strategy.

The Russian oligarch Oleg Deripaska (in the image) has assured that Russia will run out of funds in 2024, due to the “massive” cost of war.

In statements collected by Bloomberg, the oligarch makes the case that if Vladimir Putin wants to continue fighting Ukraine, he will have to resort to foreign investment.

Oleg Deripaska made these unexpected statements at the Krasnoyarsk Economic Forum held in early March in Siberia. It is unusual for a Russian oligarch, who usually pays strict obedience to Putin, to make such a pessimist forecast.

“There will be no money already next year, we need foreign investors,” he said.

Deripaska also highlighted that the strain of military spending pressed public finances into a worrying territory and that 2024 would be a dire year for Russian economic growth.

Nonetheless, the International Monetary Fund predicts that, despite the ongoing war, the sanctions, and other limitations, the Russian economy will grow in 2024.

However, despite the apparent optimism of the IMF prediction, Russian economist Alexander Isakov has a bleaker vision of what's next in store for his country.

“The money saved in the National Welfare Fund will run out by the end of 2024. By then, we will have to start to be more frugal and cut spending,” Alexander Isakov said at the Krasnoyarsk Economic Forum.

The big question now is which countries could financially help the Kremlin by investing in Russia in the middle of a full-on war?

Oleg Deripaska himself made it clear during his speech that a European solution was out of the question.

“We thought we were a European country. Now, for the next 25 years, we will think more about our Asian past,” the oligarch remarked.

Deripaska's message has been clear and now Moscow has to wait and see if any of its Asian allies will invest in Russia.

Nonetheless, Russia still keeps trading with important partners in Africa, Latin America, South Asia, and the Middle East.

But, in short, with the current level of spending and without new trade agreements, the Russian chests may be depleted sooner rather than later.

Another theory is that this is all a strategy to attract foreign capital and strengthen partnerships in the face of a war that doesn't seem to end anytime soon.