The National Wealth Fund (NWF) of Russia increased over the past month by 88.68 billion rubles and on January 1 of this year reached 13 trillion 545.663 billion rubles (from 13 trillion 457.02 billion rubles as of December 1), or 11.7% of the projected GDP by this year.
“As of January 1, 2021, the volume of the NWF amounted to 13 trillion 545 billion 663 million rubles, or 11.7% of GDP projected for 2021,” which is equivalent to $ 183 billion 357.5 million, according to the materials of the Ministry of Finance of the Russian Federation.
At the same time, the ministry clarifies that the volume of the fund’s liquid assets (funds in bank accounts with the Bank of Russia) as of January 1 amounted to 8 trillion 657 billion 891.8 million rubles ($ 117 billion 195.4 million), or 7.5% of GDP projected for 2021 year. The rest of the funds are placed in various accounts, in stocks and bonds.
In December, according to the materials, the Ministry of Finance sold part of the fund’s funds – $ 317.1 million, 260.9 million euros and 52.5 million pounds sterling – for 52 billion 317 million rubles, and the proceeds were credited to a single account of the federal budget for financing its deficit.
Recall that, in accordance with the Budget Code of the Russian Federation, all oil and gas revenues from oil prices above the cut-off level ($ 40 per barrel in 2017, then indexed by 2% annually) are considered additional and the NWF is formed at their expense. Before accumulating 7% of GDP in the fund, all of its funds must be placed on deposits and accounts with the Central Bank, which invests them only in highly liquid foreign assets, and above this level, placement in other financial assets is allowed.
We also add that on October 28, Finance Minister Anton Siluanov spoke in favor of maintaining the integrity of the National Welfare Fund (NWF). “We believe that by borrowing without touching the NWF, we thereby preserve our safety cushion, and thereby create the stability of our budgetary commitments against any external changes,” the minister said during the first reading by the State Duma of the draft federal budget for 2021– 2023 years.
According to him, the existing approach to the use of NWF funds has proven “its necessity and objectivity.” “In our opinion, there is no need to change the approach, spend NWF, remain without a safety margin and worsen the overall stability of finance and the economy. The operating structure shows itself in the most difficult situations, “Siluanov emphasized.
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