In August 2009, in order to implement Russian Government Order dated July 16, 2009 974-r “On Using Funds of the Reserve Fund to Balance the Federal Budget”. 108.00 billion rubles were transferred to the account to record funds of the federal budget from the account to record funds of the Reserve Fund. To this end,  a part of the Reserve Fund in foreign currency was sold for the currency of the Russian Federation Thus, funds of the Reserve Fund in the total amount of 1 723.59 billion rubles were used to balance the federal budget in the current year.

Under the Budget Code of the Russian Federation, oil and gas revenues of the federal budget for July 2009, in the amount of 272.37 billion rubles were transferred in August 2009 to the account to record funds of the federal budget. Under the Russian Government Resolution dated December 17, 2007, N 892 “On Making Settlements and Transferring Funds to Form and USE Oil and Gas revenues of the Federal Budget, Oil and gas Transfer, Funds of the Reserve Fund and the National Wealth Fund”, the abovementioned oil and gas revenues were transferred to the account to record funds received from oil and gas revenues of the federal budget and were later used to finance oil and gas transfer in full. In August,2009, funds of the Reserve Fund were not used for securing oil and gas transfer.

As of September 1, 2009, the aggregate amount of the Reserve Fund was 2 706.82 billion rubles, which is equivalent to 85.74 billion US dollars. As of September 1, 2009, amounts of balances in separate accounts to record funds of the Reserve Fund were:

• 37.36 billion US dollars
• 26.10 billion euros;
• 5.76 pounds sterlings.

In August, 2009, Russia’s reserve position in the IMF formed through the Reserve Fund’ financial resources amounted to 991.94 million SDRs.

 The aggregate calculated income from placing funds of the Reserve Fund recalculated in dollars for a period from January 15, 2009, to August 31, 2009, was 1.29 billion US dollars, which is equivalent to 40.80 billion rubles. Calculated interest income from placing funds of the Reserve Fund in foreign currency was (in currency of account and ruble equivalent): 0.19 billion US dollars (6.05 billion rubles); 0.62 billion euros (28.05 billion rubles); 0.13 billion pounds sterlings (6.70 billion rubles). The exchange rate difference from recalculating balances of funds in accounts to record funds of the Reserve Fund in foreign currency for a period from January 15, 2009 to August 31, 2009 was a positive value of 185.59 billion rubles.

In accordance with resolution of the Russian Government dated January 19, 2008 № 18 “On the Procedure of Managing ,Funds of the National Wealth Fund” as of September 1, 2009, 436.24 billion rubles were transferred from the account to record funds of the National Wealth Fund to be deposited with Vnesheconombank and out of this amount:

• 266.55 billion rubles to be deposited for a period up to December 31, 2019, with an interest rate of 7% per annum, including 5.31 billion rubles in July 2009;
• 175.00 billion rubles to be deposited for a period up to October 21, 2013, with an interest rate of 7% per annum.

As of September 1, 2009, the aggregate amount of the National Wealth Fund was 2863.08 billion rubles, which is equivalent to 90.69 billion US dollars. As of September 1, 2009, amounts of balances were:

1)     In separate accounts to record funds of the National Wealth Fund with the Bank of Russia:

• 34.37 billion US dollars;
• 24.46 billion euros;
• 4.45 billion pounds sterlings;

2)     on deposits with Vnesheconombank:

• 441.55 billion rubles.

The aggregate calculated income from placing funds of the National Wealth Fund recalculated in dollars for a period for a period from January 15, 2009, up to August 31, 2009, was 0.88 billion US dollars, which is equivalent to 27.81 billion rubles. Calculated interest from placing funds of the National Wealth Fund in foreign currency was (in currency of account and ruble equivalent): 0.16 billion US dollars (5.11 billion rubles); 0.41 billion euros (18.52 billion rubles); 0.08 billion pounds sterlings (4.17 billion rubles). The exchange rate difference from recalculating balances of funds in accounts to record funds of the National Wealth Fund in foreign currency for a period from January 15, 2009 up to August 31, 2009, was a positive value of 100.71.32 billion rubles.

All conversion transactions with funds of the Reserve Fund and the National Wealth Fund were conducted in conformity with the currency structure approved earlier at official rates of foreign currencies set by the Bank of Russia as of the date of transactions and did not have any impact on the conditions of the foreign exchange market.

Indicators of aggregate amounts of the Reserve Fund and the National Wealth Fund as well as of calculated incomes from placing funds of the Reserve Fund and the National Wealth Fund were calculated on the basis of official exchange rates of foreign currencies set by the Bank of Russia as of the date prior to the reporting date and of cross rates calculated on the basis of the said exchange rates.

Detailed statistics on transactions with funds of the Reserve Fund and the National Wealth Fund is posted on the Internet site of the Russian Finance Ministry in the following sections: “The Reserve Fund” and “The National Wealth Fund” in appropriate subsections in Russian and English, the statistics is updated on a regular basis.

Origin: Press Service of Russia’s Finance Ministry