Volodomyr Zelensky has had a tough job since February 2022. And since the election of Donald Trump it has become a whole lot tougher.
In just the past ten days the American president and his acolytes have gone over his head and behind his back to negotiate directly with Russia’s Vladimir Putin; accused Zelensky of being a dictator; demanded virtual total control of the Ukrainian economy; ruled out Ukrainian membership of NATO and the return of territory; accused Ukraine of starting the war and undermined negotiations by announcing that Russia “holds the cards.”
Trump has also damaged relations with NATO allies by cutting them out of any negotiations about Ukraine’s future, despite the fact that Ukraine is in Europe and the Europeans have contributed more to its defense then the US.
But hold on. Zelensky and his European allies have a few cards of their own.
The biggest ones involve cash. Russia is spending and leaking money and earning less and less while its bills pending pile grows bigger and bigger.
Let’s start with its Sovereign Wealth Fund (aka National Wealth Fund or NWF). This has been the main source of ready cash for Putin’s “special military operation.” In January 2022, the NWF coffers held $210 billion. At the start of this year, the fund had dwindled to $116 billion. But wait, it’s even worse than that. Almost all of the war spending comes from liquid reserves which have shrunk more than 75 percent from $130 billion to $40 billion.
At the current rate of spending, Putin will run out of liquid cash in less than a year. His borrowing options are limited. The IMF and World Bank are out of the question, as are western commercial banks. This leaves the Chinese who would doubtless drive a hard bargain.







