People's Welfare Fund. National Welfare Fund of the Russian Federation

Every economy is simply obliged to have a certain margin of safety. As for the history of Russian strength, the next cycle is over today. Initially, the economy of the great state was supported by the Stabilization Fund, created in 2004. In 2008, it was completely restructured and renamed the Reserve and Welfare Fund. He acted as a rational continuation of the “budget development” program created in 1998 to finance large-scale industrial projects that were supposed to act as an engine in a crisis.

The primary idea of ​​the Stabilization Fund

The innovative format of the Stabilization Fund completely contradicted the fundamental idea of ​​the “development budget” project. It was based on the formation of a reserve, which was supposed to compensate, if necessary, due to an unexpected drop in the price of oil, while sterilizing excessive dollar revenues from oil sales. Inflation was to be controlled by investing in foreign assets. In the medium term, the Stabilization Fund was supposed to act as a reserve to eliminate problems associated with financing the structure of state pensions. In fact, the Reserve Fund and the National Welfare Fund act as a specialized monetary fund, which is actively used today to stabilize the state budget as a result of a reduction in income. It can also be used for government needs, but in the long term.

Why does Russia need a fund?

The Russian reserve fund has been formed over many decades due to the fact that the state budget is highly dependent on the situation of external factors. The well-being of states depends on world commodity prices. Today, when the country is subject to strict sanctions from Europe and with the critically low cost of oil, funds from the sale of which dominate the budget replenishment, it is the collected reserve that helps the country survive. It allows you to maintain the exchange rate of the national currency and becomes the basis for the state to fulfill its obligations to the population. If Russia did not have reserves, the country would have long ago faced such a phenomenon as default.

Stages of reserve formation

The first stage of formation of the Reserve Fund began in 2003. An account was formed into which funds earned from the export of natural resources were received. Let us clarify here that it was not profits from the sale of oil that were sent to a special account, but excess profits. That is, the remainder of the money from fuel sales that were not provided for by insufficiently optimistic forecasts. The second stage of reserve formation was the creation of the Stabilization Fund in 2004, which was essentially part of the federal budget. Due to the fact that the domestic economy was strongly tied to the commodity market, the formation of a “safety cushion” became a prerequisite for the further prosperity of the nation. The last stage in the formation of the reserve is the Reserve Fund and the National Welfare Fund.

Stabilization of the economy through the fund

The state's export capabilities suffer significantly from its strong dependence on oil and gas exports. The situation leaves a negative imprint on the status of the state and deals a blow to production facilities that are export-oriented. The source of funds entering the economy in a natural format due to the export of goods and services has been blocked. All incoming cash flows are blocked by petrodollars. The Russian Reserve Fund is today responsible for ensuring balance in the federal budget, since the price of oil today is several orders of magnitude lower than what was budgeted for 2014-2017. The Fund is responsible for tying up excess liquidity, reducing inflationary impacts, and eliminating the impact of price shocks on the global raw materials market on the national economy. We can summarize and highlight three main functions of the fund:

• Covering the Russian budget deficit.
• Preventing development in the economy.
• Financing pension savings and covering the budget deficit of the Pension Fund.

The purpose of the Fund is welfare and movement of funds

Theory is one thing, but practice and history speak of a slightly different purpose of the reserve. The Reserve Fund funds are used to ensure that the state fulfills expenditure-type obligations while revenues from the oil and gas sector of the economy are declining. The volume of reserves is set at 10% of the expected volume of GDP. Initially, cash flows are sent to treasury accounts. The missing amount of funds from the non-oil sector is covered by redirecting money through the oil and gas transfer. Next comes the filling of the Reserve Fund itself. After its volume corresponds to 10% of the funds received, the cash flow is redirected to the National Welfare Fund, which will compensate for the pension budget deficit. The reserve fund remains untouched until revenues from the oil and gas sector of the economy are reduced significantly. Most of the reserve capital savings are converted into financial assets and currency. These are debt obligations of international organizations and securities, deposits in foreign financial institutions.

Where does the flow of funds into the country's reserves come from?

The Reserve Fund and the National Welfare Fund are formed not only from excess profits from oil sales. Capital replenishment occurs thanks to:

• mineral development tax;
• export duties on crude fuel;
• duties levied on the export of goods made from oil.

Another source of replenishment is profit from managing the latter’s funds. The size of the Reserve Fund is controlled by accounting for funds in separate accounts opened by the Treasury with the Central Bank of the Russian Federation. All incoming and outgoing transactions on the account are carried out by the Ministry of Finance of the Russian Federation in accordance with the law.

Special mechanisms for managing the fund's assets

As mentioned above, the National Welfare Fund acts as part of the federal budget. At the same time, reserve funds are managed in a slightly different format than financial assets in the federal budget. The main goals of money management are to preserve them, as well as to stabilize the level of income from their transformation into assets in the long term. All assets into which funds can be transformed are clearly defined by the Budget Code of the Russian Federation. Assistance from the National Welfare Fund is provided immediately when a deficit occurs. Information about the receipt and expenditure of funds from the reserve is published every month in the media.

The amount of savings of the Russian government

The Russian Federation informed the public that over the past two years the National Welfare Fund has increased by about 51.3%, and the Reserve Fund has grown by 72.9%. The reserve fund increased by 2.085 trillion rubles and by January 1, 2015, despite the prevailing crisis, amounted to 4.945 billion. In dollar equivalent, both reserves are estimated by experts at $165 billion. The positive capital gains are overshadowed by a statement from the Accounts Chamber in October 2014. According to representatives of the agency, if the rate of decline in oil prices on the international market and the degradation of the state’s economy continue, the Russian National Welfare Fund will be completely exhausted in the next two years.

Latest data from the Ministry of Finance

As of April 1, 2015, the size of the Reserve Fund was 4.425 trillion rubles or $75.7 billion. The National Welfare Fund is equivalent to 4.436 trillion rubles or 74.35 billion dollars. During the month of March, a reduction in the National Welfare Fund was recorded by 244 billion rubles, and the Reserve Fund - by 295 billion rubles. Let us recall that at the end of March the State Duma adopted a crisis budget, which stipulated the conditions for spending funds from the funds. According to preliminary calculations, the volume of the reserve by the end of 2015 will be only 4.618 trillion rubles. It is planned to spend about 864.4 billion rubles on the development of infrastructure projects to reconstruct the state’s economy.

As you probably already guessed, we will talk about the International Reserves, which are also called Gold and Foreign Exchange Reserves, and we will also talk about the funds that were formed during the liquidation of the Stabilization Fund and its division into two parts into the National Welfare Fund and the Reserve Fund. I think it’s worth talking about them, because today the thesis is being put forward that Russia returns almost all the money received from the sale of oil and gas to the United States through the mechanism of purchasing government bonds of the US Government.

Popular economists propose to nationalize the Central Bank at this very moment and see this as a great benefit for our state. There are also political figures who, under this simple and understandable slogan for the hearts of the common man about a beautiful life, call on people to take active street action, speaking about the sabotage activities of the Central Bank monetarists. Therefore, I would like to understand all these reserves and understand what is true and what is false in the sweet speeches of economists and politicians.

So, let's start with the funds - the heirs of the Stabilization Fund (National Welfare Fund and Reserve Fund).

The Budget Code of the Russian Federation says the following.

Article 96.9. Reserve fund.

The reserve fund is a part of the federal budget funds that are subject to separate accounting, management and use in order to ensure balance (cover the deficit) of the federal budget. The size as of February 1, 2015 is 5,864.90 billion rubles.

The reserve fund is formed from:

The National Welfare Fund is a part of the federal budget funds that are subject to separate accounting and management in order to ensure co-financing of voluntary pension savings of citizens of the Russian Federation, as well as ensuring balance (covering the deficit) of the budget of the Pension Fund of the Russian Federation.

The size of the fund is 5,101.83 billion rubles.

The National Welfare Fund is formed from additional oil and gas revenues of the federal budget if the accumulated volume of the Reserve Fund reaches its standard value.

The funds of the National Welfare Fund can be placed in foreign currency and the following types of financial assets:

Debt obligations of foreign governments, foreign government agencies and central banks;
- debt obligations of international financial organizations, including those issued by securities;
- deposits and balances in bank accounts in banks and credit institutions, as well as in the state corporation “Bank for Development and Foreign Economic Affairs (Vnesheconombank)”, including for the purpose of financing self-sustaining infrastructure projects, the list of which is approved by the Government of the Russian Federation;
- deposits and balances in bank accounts with the Central Bank of the Russian Federation;
- debt obligations and shares of legal entities, including Russian securities related to the implementation of self-sustaining infrastructure projects, the list of which is approved by the Government of the Russian Federation;
- units (shares of participation) of investment funds.

In order to ensure the adequacy of the own funds (capital) of the state corporation “Bank for Development and Foreign Economic Affairs (Vnesheconombank)”, up to 7 percent of the funds of the National Welfare Fund can be placed on deposits in the specified state corporation.

In order to finance self-sustaining infrastructure projects, the list of which is approved by the Government of the Russian Federation, up to 10 percent of the funds of the National Welfare Fund can be placed on the basis of separate decisions of the Government of the Russian Federation in Russian credit institutions.

In the Presidential Address, V. Putin said: “Since 2013, after the creation of the appropriate management structure, I have been offering part of the funds of the National Welfare Fund - for starters, this could be an amount of up to 100 billion rubles, some believe that at least 100 billion rubles - should be invested in "Russian securities. They should be related to the implementation of infrastructure projects."

What is the Central Bank's fault for? What is the country's leadership to blame for? After all, the existing system was formed as a result of two world wars and a geopolitical catastrophe - the collapse of the USSR and the countries of the Soviet camp. And the system is whether we like it or not.

If you want to conduct international trade, buy the dollars in which it is carried out, buy special drawing rights for dollars, join the IMF and other international organizations and follow their rules.

What is the reproach of the Central Bank? We see that revenues from oil sales do not go to the US budget at all, but to the development of the Russian economy, to cover the risks associated with the fall in oil prices (organized by the US).

What is the criticism? They are calling to abandon the existing system completely, nationalize the Central Bank and launch the issue of the ruble, which is not backed by the international reserve currency - the US dollar, IMF loan bonds, and the currencies of other countries.

Let's pretend we did this. The question arises: how will we buy the goods, services, and technologies needed for our economy? For rubles? But, in the existing system, to purchase certain goods and services necessary for our economy, agricultural products, equipment and other things necessary for our economy and population, US dollars are needed. After all, today we cannot provide ourselves 100% with everything we need, and we depend on imported goods and services, which can be bought in the existing international system only for dollars.

With some countries, such as China, which need our resources and have the goods we need, we can trade directly, without the dollar. This becomes possible also due to the territorial proximity of China and the high level of its state sovereignty.

Funds from the National Welfare Fund are part of the federal budget subject to separate accounting. They are aimed at ensuring co-financing of pension (voluntary) savings of the population. They also help maintain a balanced budget for the Pension Fund. Next, we will analyze the National Welfare Fund.

General information

The financial institution in question was formed on February 1, 2008 after the existing budget stabilization structure was divided into the Reserve Fund and the National Welfare Fund of the Russian Federation. The National Welfare Fund exists at the expense of oil and gas profits from the federal budget. Since 2008, they have been accounted for separately from other income. In addition, the formation of the National Welfare Fund is carried out at the expense of profits received from the turnover of its finances.

Oil and gas revenues

The National Welfare Fund of Russia receives profits from:

1. Taxes on the extraction of mineral resources presented as hydrocarbon raw materials. It includes, in particular, flammable natural gas and gas condensate, oil from all types of fields.
2. Customs export duties on raw materials and processed products.

Some of the above revenues in the form of oil and gas transfers are used annually to finance federal budget expenses. The amount of revenue is established by the relevant Federal Law for the planning period and the next year. The transfer volume is reflected as a percentage of the projected GDP:

• In 2008 - 6.1.
• In 2009 - 5.5.
• In 2010 - 4.5.
• In 2011 and beyond - 3.7.

After reaching the full volume of the transfer, income is sent to the Reserve Fund and the National Welfare Fund. The standard value of the first is established by the Federal Law on the federal budget for the planned period and the upcoming financial year in absolute terms. It is determined based on the projected ten percent of GDP for the corresponding period. The Reserve Fund and the National Welfare Fund are replenished consistently. First, the standard size of the first is achieved, and then infusions are made into the National Welfare Fund.

Accounting

Oil and gas revenues received by the Russian National Welfare Fund are recorded in separate budget accounts. They are opened at the Central Bank by the Federal Treasury. Transfers and calculations relating to the creation and use of oil and gas revenues are carried out by the Ministry of Finance. The procedure for performing these operations is established by the Government.

Management of the National Welfare Fund

Income from this activity acts as another financial source. The objectives of administration are to ensure the safety and stable level of profit from placement in the long term. Management of the Fund allows for the possibility of negative financial results in the short term. Administration is carried out by the Ministry of Finance in accordance with the procedure established at the government level. Certain powers in this activity belong to the Central Bank. When attracting specialized financial companies to perform certain functions related to the management of the Fund, this process, as well as the requirements for the entities, are established by the Government of the country.

Administration methods

The resources that make up the Russian National Welfare Fund are controlled and coordinated as follows:

The Ministry of Finance coordinates and uses the National Welfare Fund according to the first method. The placement of finances in foreign currency accounts of the Central Bank is carried out in accordance with the procedure for calculations and crediting of interest established on accounting accounts approved by the Ministry of Finance. The bank makes payments on the balances equivalent to the profitability of the indices. The latter are formed from assets intended to accommodate finances that make up the National Welfare Fund. The government has established maximum shares of permitted assets in the total value of the National Welfare Fund. To improve coordination, the Ministry of Finance is authorized to set standard indicators within the limits approved at the Federal level.

Asset requirements

Finances that make up the volume of the National Wealth Fund can be invested in debt obligations as securities of foreign states, foreign agencies and central banks of such countries as:

The following requirements are established for debt obligations:

1. Foreign issuers must have a long-term credit rating of not lower than “AA-”, in accordance with the classification of Standard and Poor’s or Fitch Ratings agencies, or not lower than “Aa3” according to the distinction of Moody’s Investor Service. If a subject is assigned different positions, then the smallest of them is considered indicative.
2. The rating of Russian issuers must be no less than “BBB-” or “Baa3” according to the classifications of the above agencies, respectively. If the subject is assigned different positions, then the smallest of them will also be considered indicative.
3. The time frame within which debt obligations must be repaid is fixed. The terms of circulation and issue do not imply the issuer's right to make an early redemption.
4. The standards for maximum and minimum periods before repayment of obligations established by the Ministry of Finance are considered mandatory.
5. The coupon rate that is paid on the corresponding debts, as well as the denominations, are fixed.
6. The volume of issued obligations that are in circulation is at least 1 billion rubles, 1 billion dollars, 1 billion euros and 0.5 billion pounds. for the corresponding accounts.
7. The denomination is fixed. It is expressed in euros, dollars, rubles or f. sterling. Payments are made in the nominal currency.

Subjects

International financial organizations whose liabilities may include assets constituting the National Wealth Fund are banks:

1. Asian (ABD).
2. Developments under the CE.
3. European investment.
4. Inter-American (IADB).
5. European (reconstruction and development).
6. Northern investment.
7. International (reconstruction and development).

The International Financial Corporation (IFC) is also included in the list of entities.

Requirements for securities

Shares of legal entities and participation shares (shares) of investment funds into which funds from the National Welfare Fund can be placed must meet certain conditions. In particular:

1. Securities of organizations must be included in the quotation list of at least one exchange.
2. For shares of foreign issuers, it is necessary to be included in the lists used in calculating the RTS and MICEX indices.
3. Investment funds that issue participation shares must contain only permitted assets.

Placement on deposits

To implement this, the following conditions must be met:

1. The credit company or bank must have a long-term credit rating of at least "AA-" according to the classification of the agencies "Standard and Poor's" or "Fitch Ratings" or "Aa3" according to the list of "Moody's Investor Service". If an organization is at different levels according to these systems, then the lowest is considered indicative.
2. The standards for the maximum and minimum period for placement of assets forming the National Welfare Fund, approved by the Ministry of Finance, are mandatory.

Placement in the state corporation "Vnesheconombank"

To make deposits, the following requirements must be met:

1. Placement in Russian and foreign approved currencies (dollars, pounds sterling, euros) is allowed.

2. The maximum permissible total amount within which assets can be held on deposits in rubles is 655 billion rubles. Wherein:

Funds in the amount of up to 175 billion can be placed in accounts, the terms, amounts and other essential conditions for which are established by the Ministry of Finance;

Up to 410 billion can be held on deposits in the manner approved by the Government, subject to the following conditions:

b) at a rate of 8.5% until December 31. 2010 (inclusive).

Assets in the amount of up to 30 billion can be placed at a rate of 8.5% until December 31, 2017 in the manner established by the Government;

Interest payments are made quarterly throughout the entire term;

The possibility of early repayment of funds is allowed with the consent of the Vnesheconombank state corporation; interest is paid for the actual period the finances are on deposit.

3. The terms and amounts of placement are determined by the Ministry of Finance in accordance with the specified requirements; the transfer is made by the Federal Treasury, in accordance with the decision of the Finance Ministry.

Important point

The assets that form the National Welfare Fund can be used exclusively to co-finance voluntary pension savings of the population and cover the deficit (ensuring balance) of the Pension Fund budget. The procedure for making the distribution is established by the relevant Federal Law No. 56. This Law regulates insurance (additional) contributions to the funded share of the working pension and state support for the formation of savings. The volume of the National Welfare Fund - the amount of assets allocated for the above purposes - is established by the Federal Law on the Federal Law. budget for the planning period and reporting year according to the BC.

Transaction reporting

The Ministry of Finance carries out monthly publication of information regarding the receipt and use of available oil and gas revenues, the value of the assets of the National Welfare Fund at the beginning of the month. The documents also provide information regarding financial transfers, placement and subsequent distribution during the reporting period. The Ministry of Finance also provides annual and quarterly reports on the receipt and use of received oil and gas revenues, the formation and turnover of assets of the National Fund. Welfare. This information is included in the acts on the results of the implementation of federal budget items. In addition, the Ministry of Finance provides annual and quarterly reports on the management of funds included in the Fund. The government of the country, as part of the acts on the results of the implementation of articles of the federal budget, submits to the State Duma of the Federal Assembly and the Council of Federation information on the receipts and use of oil and gas profits, the creation and turnover of assets of the National Welfare Fund, as well as on the coordination of their distribution. Reporting is provided once a year and quarterly.

Operations audit

In the process of implementing adopted and approved articles of the federal budget, control measures are carried out. The Accounts Chamber is authorized to carry them out. Control is aimed at checking the creation, turnover, and management of assets that make up the National Bank Fund. The Accounts Chamber submits an operational quarterly report to the Federal Assembly. It provides the results of the execution of budget items, containing information on the receipt of income and expenses incurred, including, among other things, data on the replenishment, turnover and management of funds of the National Bank Fund.

Reserve fund

It is a financial institution whose assets are put into circulation to stabilize the budget during a decline in revenues or for government needs in the long term. In addition to economic functions, the Reserve Fund also performs political tasks. In particular, the presence of such assets prevents rapid increases in government spending. Typically, such costs cannot be reduced quickly immediately after a drop in income. In unfavorable periods, such a situation can provoke a budget deficit, failure to fulfill social obligations, and default. The reserve background acts as a macroeconomic tool to maintain the level of aggregate demand and long-term economic growth. The state restrains consumption during periods of rapid progress. This is necessary to reduce inflation. At the same time, when purchasing activity falls, the state (during periods of stagnation) stimulates demand. In such years, the government may spend more money than it receives in taxes. This increases total national expenditure and allows companies not to reduce production rates or lay off workers. During inflation, the government reduces costs to prevent prices from rising. The difference in expenses and income of the total budget can be directed to the Reserve Fund.

Main functions

The reserve fund is a separate part of the finances of budgets of all levels, which took the form of target assets. They are designed to ensure uninterrupted provision of costs, both previously foreseen and unforeseen, which arise suddenly and are of an accidental or emergency nature. The funds that make up the Reserve Fund may be spent on emergency recovery measures related to eliminating the consequences of man-made disasters, natural disasters and other emergencies that occurred in the current financial period. This structure implements two main functions:

1. Assets can be spent to cover the deficit of state budget items in unfavorable conditions.
2. During periods of high prices for raw materials, the Fund's funds help accumulate excess export earnings and prevent the development of the Dutch economic disease.

The procedure according to which assets are included in circulation is established by government regulations. Additional clarifications on the requirements for spending reserve funds may be provided by orders of executive bodies of constituent entities or local governments. The amount of accumulated assets cannot exceed 3% of approved federal budget expenditures.

In fact, the National Welfare Fund is replenished from federal budget funds, which are subject to separate accounting and management in order to ensure co-financing of voluntary pension savings of Russian citizens, as well as ensuring a balance between the federal budget and the budget of the Russian Pension Fund.

The part of the National Welfare Fund denominated in foreign currency and placed by the Russian government in accounts with the Bank of Russia, which is invested by it in foreign financial assets, is accounted for as part of the International reserves of the Russian Federation. Part of the funds of the National Welfare Fund was used in projects that are unacceptable in terms of risk and liquidity for the placement of international reserves. Thus, the National Welfare Fund performs the functions of a riskier, but potentially more profitable instrument for the Government of the Russian Federation.

Description

The National Welfare Fund of Russia was formed on February 1, 2008 as a result of the division of the Stabilization Fund in force at that time into the Reserve Fund (created to provide financial support for oil and gas transfers) and the National Welfare Fund (created to ensure co-financing of voluntary pension savings of citizens of the Russian Federation and balance (covering the deficit ) budget of the Pension Fund of the Russian Federation). The National Welfare Fund was replenished from oil and gas revenues of the federal budget in a volume exceeding the volume of oil and gas transfers approved for the corresponding financial year, from the moment when the accumulated volume of the Reserve Fund reached (exceeded) its standard value.

The National Welfare Fund is a “safety cushion” that allows the state to compensate for the loss of oil and gas revenues in the event of a sharp drop in oil prices and to fulfill all social obligations assumed.

On January 1, 2018, the National Welfare Fund was merged with the Reserve Fund into a single fund based on the National Welfare Fund. On February 1, 2018, the Reserve Fund ceased to exist, and the funds in it were previously used to ensure that the state fulfills its spending obligations.

As a result of the merger of the funds, the intended purpose of the NWF funds remained the same: co-financing voluntary pension savings of Russian citizens, ensuring the balance of the Pension Fund budget, but the goal of ensuring balance (covering the deficit) of the federal budget was also added.

Formation of the National Welfare Fund

The National Welfare Fund is formed through:

Additional oil and gas revenues from the federal budget above the cut-off price are used to replenish the National Welfare Fund. In turn, the cut-off price is the base price of 40 US dollars per barrel of Urals oil in 2017 prices, subject to annual indexation from 2018 by 2 percent. The determination of the base oil price at this level is determined by the assessment of the long-term equilibrium level of oil prices.

Management of funds of the National Welfare Fund

The funds of the National Welfare Fund are managed by the Ministry of Finance of Russia in the manner established by the Government of the Russian Federation. Certain powers to manage the funds of the National Welfare Fund may be exercised by the Central Bank of Russia.

Managing the funds of the National Welfare Fund in order to ensure a stable level of income from their placement in the long term allows for the possibility of obtaining negative financial results in the short term.

Accommodation

The funds of the National Welfare Fund, both individually and simultaneously, can be placed in foreign currency and financial assets of the following types:

• debt obligations of foreign governments, foreign government agencies and central banks;
• debt obligations of international financial organizations, including in the form of securities;
• deposits and balances in bank accounts with banks and credit institutions, including for the purpose of financing self-sustaining infrastructure projects;
• deposits and balances in bank accounts in the state corporation "Bank for Development and Foreign Economic Affairs (Vnesheconombank)", including for the purpose of financing projects of the state corporation "Bank for Development and Foreign Economic Affairs (Vnesheconombank)" in the real sector of the economy, implemented by Russian organizations;
• deposits and balances in bank accounts with the Central Bank of the Russian Federation;
• debt obligations and shares of legal entities, including Russian securities related to the implementation of self-sustaining infrastructure projects (the list of such projects is approved by the Government of the Russian Federation);
• units of investment funds, the trust management of which is carried out by the Management Company of the Russian Direct Investment Fund.

The Government of the Russian Federation, as part of reporting on the execution of the federal budget, submits to the State Duma of the Federal Assembly of the Russian Federation and the Federation Council of the Federal Assembly of the Russian Federation an annual report on the formation and use of additional oil and gas revenues of the federal budget, quarterly and annual reports on the formation and use of funds from the National Welfare Fund and about the management of its funds.

Structure of asset allocation and profitability

The Government of the Russian Federation establishes the maximum norms of permitted financial assets in the total volume of allocated funds of the National Welfare Fund. In order to increase the efficiency of managing the funds of the National Welfare Fund, the Ministry of Finance of Russia is authorized to approve the regulatory shares of permitted financial assets in the total volume of allocated funds of the National Welfare Fund within the limits of the corresponding shares established by the Government of the Russian Federation.

As of January 1, 2018, the volume of the National Welfare Fund amounted to 3,753 billion rubles, which is equivalent to $65 billion, including:

1. About US$15 billion, EUR 15 billion, and GBP 3 billion are placed in separate accounts for the accounting of funds of the National Welfare Fund with the Bank of Russia;
2. on deposits with Vnesheconombank - more than 222 billion rubles and 6 billion US dollars;
3. in debt obligations of foreign states on the basis of a separate decision of the Government of the Russian Federation, without presenting a requirement for a long-term creditworthiness rating - USD 3.00 billion;
4. in securities of Russian issuers related to the implementation of self-sustaining infrastructure projects, the list of which is approved by the Government of the Russian Federation - 113 billion rubles and 4 billion US dollars;
5. in preferred shares of credit institutions - about 279 billion rubles;
6. on deposits with VTB Bank (PJSC) and GPB Bank (JSC) in order to finance self-sustaining infrastructure projects, the list of which is approved by the Government of the Russian Federation - about 164 billion rubles.

The total income from placing the Fund's funds in permitted financial assets, excluding funds in accounts with the Bank of Russia, in 2017 amounted to 50.84 billion rubles, which is equivalent to $0.87 billion.

In 2018, the revenues of the federal budget of the Russian Federation from the placement of funds from the National Welfare Fund amounted to 70.52 billion rubles.

All data on the structure of the National Welfare Fund's investments in financial assets and the return on investment are updated on an annual basis on the official website of the Russian Ministry of Finance.

It is allowed to obtain a negative financial result from the placement of funds from the National Welfare Fund.

Dynamics of changes

Information on changes in the volume of the National Wealth Fund in US dollars and in ruble equivalent, as well as data on the movement of funds and the results of managing the funds of the National Welfare Fund are published monthly on the website of the Ministry of Finance of Russia.

Subject to separate accounting and management in order to ensure co-financing of voluntary pension savings of citizens of the Russian Federation, as well as ensuring balance (covering the deficit) of the budget of the Pension Fund of the Russian Federation.

Formation of the fund

The National Welfare Fund is formed through:

• oil and gas revenues of the federal budget in an amount exceeding the volume of oil and gas transfers approved for the corresponding financial year, if the accumulated volume of the Reserve Fund reaches (exceeds) its standard value;
• income from managing funds of the National Welfare Fund.

Accommodation

On April 21, 2010, the Chairman of the Government of the Russian Federation V.V. Putin signed a decree of the Russian Government that until February 1, 2012 the Ministry of Finance will not be obliged to publish on the Internet information about the volumes of funds received into the accounts of the Reserve Fund and the National Welfare Fund, about where they are located and how they are used. Some economists believe that the refusal to publish this information is due to the rapid decline in the funds of both funds. Currently, the Ministry of Finance website contains information about the amount of funds in each of the funds.

Dynamics of changes

see also

• Budget Code of the Russian Federation

Notes

Links

• Dynamics of changes in the National Welfare Fund on the website of the Russian Ministry of Finance

Wikimedia Foundation. 2010.

• Robertson, David (conductor)
• Agdash district

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