Russia has resumed rebuilding its National Wellbeing Fund for the first time in almost a year, as higher oil prices driven by tensions in the Middle East bolster the Kremlin’s export revenues and fiscal position.

The Russian finance ministry said it would buy foreign currency and gold worth RUB110bn ($1.5bn) in May, marking the first such purchases since June 2025. The figure includes deferred operations from previous months, according to reporting by Bloomberg.

The National Wellbeing Fund, often described as Russia’s “rainy-day” reserve, has been a crucial source of financing for Moscow since the start of the war in Ukraine. The fund has been used to plug budget deficits, support state companies and finance strategic infrastructure projects as western sanctions restricted Russia’s access to international capital markets.

The return to reserve accumulation reflects a recovery in Russia’s energy revenues following a rise in global crude prices. Oil markets have tightened in recent weeks amid concerns that the conflict in the Middle East could disrupt supply routes and production across the region.

Higher export earnings have eased pressure on the Russian budget after months of volatility caused by weaker commodity prices and increased military spending. Russia’s oil and gas revenues rose sharply earlier this year, supported by stronger benchmark crude prices and continued exports to buyers including China and India.

The finance ministry conducts the purchases under Russia’s fiscal rule mechanism, which channels excess energy revenues into reserve assets when oil income exceeds a predetermined threshold. Analysts say rebuilding the fund could help Moscow stabilise the, maintain spending commitments and reduce vulnerability to further western sanctions.

Russia’s fiscal reserves have come under sustained pressure since 2022 as military expenditure climbed to post-Soviet highs. The government has increasingly relied on domestic borrowing and reserve assets to finance the war effort and cushion the economy from sanctions imposed by the US, the EU and their allies.

The renewed purchases suggest the Kremlin sees current energy market conditions as an opportunity to strengthen its financial buffers while continuing to fund elevated defence spending.