The National Welfare Fund can be used on. Media founded by the Russian Ministry of Finance

The stabilization fund was transformed into

The reserve fund is a part of the federal budget funds that are subject to separate accounting and management for the purpose of carrying out an oil and gas transfer in the event of insufficient oil and gas revenues to financially support the specified transfer.

The Federal Law on the Federal Budget for the next financial year and planning period establishes the standard value of the Reserve Fund in an absolute amount determined on the basis of 10 percent of the volume of gross domestic product projected for the corresponding financial year, specified in the Federal Law on the Federal Budget for the next financial year and planning period .
The reserve fund is formed from:

  • oil and gas revenues of the federal budget in an amount exceeding the amount of oil and gas transfer approved for the corresponding financial year, provided that the accumulated volume of the Reserve Fund does not exceed its standard value;
  • income from the management of the Reserve Fund.
The federal law on the federal budget for the next financial year and planning period may provide for the use of funds from the Reserve Fund for the early repayment of the state external debt of the Russian Federation.
The purpose of the fund is that it is a source for oil and gas transfer in case of insufficient oil and gas revenues, i.e. the fund ensures economic stability.
The total volume of the Reserve Fund

The National Welfare Fund is a part of the federal budget funds that are subject to separate accounting and management.
The purpose of the National Welfare Fund is to ensure co-financing of voluntary pension savings of citizens of the Russian Federation and to ensure balance (covering the deficit) of the budget of the Pension Fund of the Russian Federation. This fund is intended to become part of a sustainable mechanism for pension provision for citizens of the Russian Federation for the long term

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 transfer approved for the corresponding financial year, if the accumulated volume of the Reserve Fund reaches (exceeds) its standard value;
income from managing the Fund for Future Generations.
Total funds
National Welfare Fund

Management of the funds is carried out by the Ministry of Finance of the Russian Federation. The purpose of management is to ensure the safety and stability of income from placement in the long term. In the short term, when managing funds, a negative financial result is possible
Management of funds' funds can be carried out by placing funds' funds in foreign currency and financial assets denominated in foreign currency, such as securities of foreign countries, foreign government agencies and central banks of the following countries:

  • Austria;
  • Belgium;
  • Great Britain;
  • Germany;
  • Denmark;
  • Canada;
  • Luxembourg;
  • Netherlands;
  • Finland;
  • France;
  • Sweden.
The nominal volume of acquired debt obligations of one issue should not exceed 10% of the nominal volume of this issue.
Thus, the management of income and expenses must ensure the fulfillment of the functions of the state and local government.

Management of interbudgetary relations.
Budgets of all levels of the budget system of the Russian Federation interact with each other, giving rise to the problem of interbudgetary relations, that is, relations between government bodies of the Russian Federation, government bodies of the constituent entities of the Russian Federation and local governments regarding the formation and use of budget funds. Expenditures of the state and local self-government are carried out from different levels of the budget system on the basis of distributed and assigned spending powers. This means that the state must have a clear assignment of revenue sources to the corresponding levels of the budget system. Ideally, the organization of budgetary relations (interrelations), based on the relative autonomy and independence of each budget, should ensure a combination of the fiscal interests of the Federation (represented by the federal budget) with the interests of the subjects of the Federation and local governments in the implementation of their functions. However, in the real economy there is a need to redistribute financial resources between regions and municipalities. Problems of interbudgetary relations arise in any state, regardless of its structure, because There are always “grassroots”, local budgets and the budget of the state itself. In states with a federal structure, communications are more complicated.
Historically, two models of interbudgetary relations have been formed: a competitive model and a cooperative model. The competitive model presupposes high independence of lower budgets in the formation of their income and the ability to independently ensure the performance of their functions. This model is typical for the USA, Canada, and Australia. The cooperative model assumes a significant dependence of lower budgets on higher budgets. This model is being implemented in Germany and the Russian Federation through a system of interbudgetary transfers.

The budget system of the Russian Federation has the following structure (own budgets are shown):




Consolidated budgets:





Interbudgetary transfers are funds provided by one budget of the budget system to another budget. The main forms of interbudgetary transfers are grants, subsidies and subventions. Grants and subsidies are financial assistance from one budget to another. Subventions are not financial assistance.
Subsidies are budget funds provided to the budget of another level of the budget system of the Russian Federation on a gratuitous basis without establishing directions and (or) conditions for their use. In the Russian Federation, there is quite a serious differentiation of the constituent entities of the Russian Federation in terms of budgetary security. Budgetary provision is the cost of state or municipal services in monetary terms provided by state authorities or local governments per capita at the expense of the corresponding budgets. The level of estimated budgetary security of a constituent entity of the Russian Federation is determined by the ratio between the estimated tax revenues per capita, which can be received by the consolidated budget of a constituent entity of the Russian Federation based on the level of development and structure of the economy and the tax base (tax potential), and a similar indicator on average for the consolidated budgets of constituent entities of the Russian Federation with taking into account the structure of the population, socio-economic, geographical, climatic and other objective factors and conditions affecting the cost of providing the same volume of budget services per capita. Those constituent entities of the Russian Federation whose estimated budgetary provision is lower than the average budgetary provision for the constituent entities of the Russian Federation receive subsidies from the federal budget at the expense of the Federal Fund for Financial Support of Regions. Thus, subsidies are provided to level out the horizontal asymmetry of the budget system: the purpose of transferring subsidies to the constituent entities of the Russian Federation is to equalize the budgetary provision of the constituent entities of the Russian Federation. The criterion for providing financial assistance is the need to achieve the minimum level of estimated budgetary provision of the constituent entities of the Russian Federation.
Subsidies are provided for joint financing of targeted expenses in the constituent entities of the Russian Federation. Subsidies to the budgets of the constituent entities of the Russian Federation from the federal budget are understood as inter-budgetary transfers provided to the budgets of the constituent entities of the Russian Federation in order to co-finance expenditure obligations arising in the exercise of the powers of public authorities of the constituent entities of the Russian Federation on subjects of jurisdiction of the constituent entities of the Russian Federation and subjects of joint jurisdiction of the Russian Federation and the constituent entities of the Russian Federation. Subsidies are provided through the Federal Fund for Co-financing of Expenses.
A special role is given to subsidies. Subventions to the budgets of the constituent entities of the Russian Federation from the federal budget are understood as inter-budgetary transfers provided to the budgets of the constituent entities of the Russian Federation for the purpose of financial support for the expenditure obligations of the constituent entities of the Russian Federation and (or) municipalities arising in the exercise of powers of the Russian Federation transferred for implementation to public authorities of the constituent entities of the Russian Federation and (or) bodies local government in the prescribed manner. Subventions are not the own income of the recipient budgets, since along with the financial resources, the powers to use them are delegated from the transferring budgets. With the help of subventions, federal social laws are implemented, first of all:
Subsidies and subventions are provided to level out the vertical asymmetry of the budget system.
In addition to formalized interbudgetary transfers, the Russian Federation uses informal interbudgetary transfers. For example, interbudgetary transfers of an incentive nature. Currently, much attention is paid to the possibility of using by subjects of the Russian Federation methods and tools in the field of financial management that have already been tested in world practice. This goal is facilitated by the “Code of Best Practice” - a document of the International Bank for Reconstruction and Development, which represents a codified set of methods that are quality standards in the field of budget management. The purpose of the Code of Best Practice is to contribute to improving the quality of regional and municipal financial management. The document is advisory in nature and includes the most advanced management tools that contribute to achieving the greatest efficiency in the use of regional and municipal finances, subject to all necessary legislative norms and rules. This document can be found on the website of the Ministry of Finance of the Russian Federation. For example, "best practice" requires that:

  • subfederal budgets have always been balanced. Budget deficits of any kind are usually not allowed (are illegal) - especially in the UK, France, Germany;
  • all funds raised were spent only for investment purposes, and were not used for current expenses or refinancing of old obligations;
  • The current budget deficit is not allowed in any case;
  • the total volume of new borrowings should be less than investment expenditures;
  • Debt service (both interest and gross principal) must be covered by the operating budget. All debt service payments were covered by future earnings (rather than new borrowing or liquidation of assets);
  • All budget reporting data is subject to control and verification by an auditor independent of the administration that executes the budget.
The Ministry of Finance of the Russian Federation monitors the financial situation and quality of financial management of the constituent entities of the Russian Federation and municipalities and monitors compliance by the constituent entities of the Russian Federation with the requirements of the Budget Code of the Russian Federation and the quality of budget management. Management quality indicators are built taking into account the requirements of the Code of Best Practice. Based on monitoring, the best subjects of the Russian Federation and municipalities are identified, which are encouraged by special interbudgetary transfers.
Management of state and municipal credit and debt.

The public debt of the Russian Federation is the debt obligations of the Russian Federation to individuals and legal entities, foreign states, international organizations and other subjects of international law.
The public debt of the Russian Federation is the debt obligations of a constituent entity of the Russian Federation to individuals and legal entities, other budgets
Municipal debt is the debt obligations of a municipality to individuals and legal entities and other budgets.
State and municipal debt is divided into external and internal:
external debt - obligations arising in foreign currency, with the exception of obligations of constituent entities of the Russian Federation and municipalities to the Russian Federation, arising in foreign currency as part of the use of targeted foreign loans (borrowings);
internal debt - obligations arising in the currency of the Russian Federation, as well as obligations of constituent entities of the Russian Federation and municipalities to the Russian Federation, arising in foreign currency as part of the use of targeted foreign loans (borrowings).
Let's look at the basics of public debt management at the federal level. The Federal Assembly of the Russian Federation determines the policy regarding the public debt of the Russian Federation. Management of the public debt of the Russian Federation, including the determination of the procedure, conditions for issuing (issuing) and placement of debt obligations of the Russian Federation, is carried out by the Government of the Russian Federation. Servicing the government debt of the Russian Federation is carried out by the Bank of Russia through operations to place debt obligations of the Russian Federation, repay them and pay out income in the form of interest on them or in another form. The Bank of Russia performs the functions of a general agent (agent) for servicing government internal debt free of charge.
State (municipal) debt can form debts: financial (as a result of placing loans, obtaining loans); administrative (for those expenses that are included in the budget, but have not yet been executed); probabilistic (as a result of issuing guarantees). In Russian practice, administrative debt is not taken into account in full when determining internal debt; probabilistic debt has been taken into account since 2001.
The objectives of managing the public debt of the Russian Federation are:

  • maintaining the volume of public debt at an economically safe level;
  • reduction in the cost of servicing the public debt of the Russian Federation;
  • ensuring the fulfillment of state obligations in full at the lowest possible cost in the medium and long term.
The servicing of state (municipal) debt may be proper or improper. In case of proper maintenance, debt obligations are repaid on time and in full. In Russia, the principal amount of the debt is repaid through new borrowings (refinanced). and the interest is repaid from the revenues of the corresponding budget. If the debt is not properly serviced, a default occurs. In the event of the impossibility of fulfilling the state's obligations, public debt may be restructured. Debt restructuring means the repayment of debt obligations with the simultaneous implementation of borrowings (assuming other debt obligations) in the amount of repaid debt obligations with the establishment of other conditions for servicing debt obligations and the timing of their repayment. Debt restructuring can be carried out with a partial write-off (reduction) of the principal amount. Restructuring of public debt in the form of government securities can occur in the following forms:
  • conversion (exchange of government securities for new ones with a change in the parameters of the issue);
  • consolidation (transfer of short-term liabilities into long-term ones);
  • unification (replacement of several or all issued loans with one new issue).
In the Russian Federation, loan restructuring occurs in the form of innovation.

Management of extra-budgetary funds.
In the course of managing extra-budgetary funds, not only the financial, but also the social policy of the state is implemented.
The income of extra-budgetary funds is generated from the following main sources:

  • insurance contributions for compulsory social insurance;
  • interbudgetary transfers from the federal budget;
  • income from financial transactions
Insurance contributions for compulsory social insurance are paid by the employer. The calculation of insurance premiums is carried out by the accounting department of the organization (enterprise) - the policyholder. Insurance premiums are paid to extra-budgetary funds.
Administration (i.e. monitoring the correctness of calculation and timely payment of insurance premiums to the funds, receiving reports from policyholders, accounting for payments, offset or refund of overpaid insurance premiums, collection of arrears of payments) is carried out by two funds:
  • Social Insurance Fund (SIF) - administers insurance premiums for compulsory insurance in case of temporary disability or in connection with maternity and compulsory insurance against industrial accidents and occupational diseases.
  • The Pension Fund of Russia (PFR) - administers insurance premiums for compulsory pension insurance and compulsory medical insurance.

Insurance premiums
(as a percentage of the accrued remuneration of the insured person)

Management of the Pension Fund of the Russian Federation means determining the policy regarding the pension system, planning the income and expenses of the Pension Fund of the Russian Federation, mobilizing income, managing the pension savings of insured persons, targeting the expenditure of funds, and monitoring the activities of the fund.
Until 2002, Russia had a pension system based on the principle of intergenerational solidarity. Since 2002, the pension model has been supplemented by the insurance principle. Unlike the previous system, the pension rights of citizens (for labor pensions) depend on the length of service, the amount of salary and pension contributions. Citizens of the Russian Federation registered in the compulsory pension insurance system, disabled family members of insured persons, in the event of the loss of a breadwinner, including foreign citizens, have the right to a labor pension.
Since 2002, pension reform began in the Russian Federation.
Currently being implemented in the Russian Federation:
1. Mandatory pension insurance, including:
old-age labor pension (as part of the insurance and funded parts);
disability pension;
labor pension in case of loss of a breadwinner (as part of the insurance part) and financed by insurance contributions from the employer.
2. State pension provision based on financing pensions from the federal budget.
State pensions are divided into:
social pension;
for length of service;
old age;
on disability;
on the occasion of the loss of a breadwinner.
The pension reform in the Russian Federation is not completed, so further changes in the methods of managing the pension fund are possible.
Management of the Social Insurance Fund of the Russian Federation means determining the policy regarding social insurance, planning income and expenses of the Social Insurance Fund of the Russian Federation, mobilizing income, managing the pension savings of insured persons, targeting funds, and monitoring the activities of the fund.
Management of the Mandatory Health Insurance Funds means determining the policy regarding compulsory health insurance, planning the income and expenses of the Mandatory Health Insurance Funds, mobilizing income, targeting funds, and monitoring the activities of the funds. In the Russian Federation, the main principles of compulsory health insurance are:
1) ensuring, at the expense of compulsory health insurance funds, guarantees of free provision of medical care to the insured person upon the occurrence of an insured event within the framework of the territorial compulsory health insurance program and the basic compulsory health insurance program (hereinafter also referred to as the compulsory health insurance program);
2) the stability of the financial system of compulsory medical insurance, ensured on the basis of the equivalence of insurance coverage with compulsory medical insurance;
3) mandatory payment by policyholders of insurance premiums for compulsory medical insurance in the amounts established by federal laws;
4) state guarantee of observance of the rights of insured persons to fulfill obligations under compulsory health insurance within the framework of the basic compulsory health insurance program, regardless of the financial situation of the insurer;
5) creating conditions to ensure accessibility and quality of medical care provided within the framework of compulsory health insurance programs;
6) parity of representation of subjects of compulsory health insurance and participants of compulsory health insurance in the governing bodies of compulsory health insurance.
The basic compulsory health insurance program is an integral part of the state guarantee program for the provision of free medical care to citizens, approved by the Government of the Russian Federation. The basic program of compulsory medical insurance determines the types of medical care, a list of insured events, the structure of the tariff for payment of medical care, methods of payment for medical care provided to insured persons under compulsory medical insurance in the Russian Federation at the expense of compulsory medical insurance funds, as well as criteria for the availability and quality of medical care. help. At the same time, the rights of insured persons to free medical care, established by the basic compulsory health insurance program, are uniform throughout the Russian Federation.
Within the framework of the basic compulsory health insurance program, primary health care is provided, including preventive care, emergency medical care (with the exception of specialized (air ambulance) emergency medical care), specialized medical care in the following cases: 1) infectious and parasitic diseases, excluding sexually transmitted diseases, tuberculosis, HIV infection and acquired immunodeficiency syndrome; 2) neoplasms; 3) diseases of the endocrine system; 4) eating disorders and metabolic disorders; 5) diseases of the nervous system; 6) diseases of the blood, hematopoietic organs; 7) certain disorders involving the immune mechanism; 8) diseases of the eye and its adnexa; 9) diseases of the ear and mastoid process; 10) diseases of the circulatory system; 11) respiratory diseases; 12) diseases of the digestive system; 13) diseases of the genitourinary system; 14) diseases of the skin and subcutaneous tissue; 15) diseases of the musculoskeletal system and connective tissue; 16) injuries, poisoning and some other consequences of external causes; 17) congenital anomalies (developmental defects); 18) deformations and chromosomal disorders; 19) pregnancy, childbirth, the postpartum period and abortions; 20) certain conditions that arise in children during the perinatal period.

More on the topic of the Reserve Fund and the National Welfare Fund:

  1. 1.3. Modern problems of financing the social sphere
  2. 2. International legal cooperation of Russia with the International Monetary Fund and the states of the European Union in the field of monetary regulation
  3. 1. THE CONCEPT OF “FINANCE” AND THEIR FUNCTIONS. BRIEF CHARACTERISTICS OF THE FINANCIAL SYSTEM
  4. O. Dmitrieva Deformation of budget policy and debt management due to the formation of stabilization funds

The National Welfare Fund is formed from additional federal budget revenues from the oil and gas complex and income from managing its own funds. In fact, the National Welfare Fund is filled with funds that are subject to separate accounting and management in order to ensure co-financing of voluntary pension savings of Russian citizens, as well as ensuring the balance of the federal budget and the budget.

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 it invests in foreign financial assets, is accounted for as part. 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 dividing the one in force at that time into (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 balancing (covering the deficit) of the Pension Fund budget 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 to the federal budget in accordance with the procedure established by the Government of the Russian Federation;
  • income from the management of funds of the National Welfare Fund (from February 1, 2016 to February 1, 2022, income from the management of funds of the National Welfare Fund is used to finance federal budget expenditures).

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 per barrel of grade 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.

Permitted financial assets as defined by the Budget Code of the Russian Federation Limit shares established by the Government of the Russian Federation
Maximum share of foreign debt obligations 100 %
Maximum share of debt obligations of foreign government agencies and central banks 30 %
Maximum share of debt obligations of international financial organizations 15 %
Maximum share of deposits and balances in bank accounts with the Central Bank of the Russian Federation 100 %
Maximum share of debt obligations of legal entities 50 %
Maximum share of shares of legal entities 50 %
The maximum share of debt obligations and shares of Russian legal entities related to the implementation of projects (with the exception of projects implemented with the participation of the joint-stock company "Management Company of the Russian Direct Investment Fund" and the State Atomic Energy Corporation "Rosatom") no more than 40% of the volume of the National Welfare Fund as of
as of April 1, 2015, but not more than RUB 1,738 billion.
The maximum share of debt obligations and shares of Russian legal entities related to the implementation of projects implemented with the participation of the joint-stock company "Management Company of the Russian Direct Investment Fund" no more than 290 billion rubles.
The maximum share of debt obligations and shares of Russian legal entities related to the implementation of projects implemented with the participation of the State Atomic Energy Corporation Rosatom no more than 290 billion rubles.

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.

date Fund size
billion $		 Fund size
billion rubles
01.02.2008 32,00 783,31
01.03.2008 32,22 777,03
01.04.2008 32,90 773,57
01.05.2008 32,72 773,82
01.06.2008 32,60 773,93
01.07.2008 32,85 770,56
01.08.2008 32,69 766,48
01.09.2008 31,92 784,51
01.10.2008 48,68 1 228,88
01.11.2008 62,82 1 667,48
01.12.2008 76,38 2 108,46
01.01.2009 87,97 2 584,49
01.02.2009 84,47 2 991,50
01.03.2009 83,86 2 995,51
01.04.2009 85,71 2 915,21
01.05.2009 86,30 2 869,44
01.06.2009 89,86 2 784,14
01.07.2009 89,93 2 813,94
01.08.2009 90,02 2 858,70
01.09.2009 90,69 2 863,08
01.10.2009 91,86 2 764,37
01.11.2009 93,38 2 712,56
01.12.2009 92,89 2 769,84
01.01.2010 91,56 2 769,02
01.02.2010 90,63 2 757,89
01.03.2010 89,63 2 684,21
01.04.2010 89,58 2 630,27
01.05.2010 88,83 2 601,62
01.06.2010 85,80 2 616,54
01.07.2010 85,47 2 666,41
01.08.2010 88,24 2 663,76
01.09.2010 87,12 2 671,54
01.10.2010 89,54 2 722,15
01.11.2010 90,08 2 772,80
01.12.2010 88,22 2 761,96
01.01.2011 88,44 2 695,52
01.02.2011 90,15 2 674,53
01.03.2011 90,94 2 631,98
01.04.2011 91,80 2 609,66
01.05.2011 94,34 2 594,58
01.06.2011 92,54 2 597,55
01.07.2011 92,61 2 600,00
01.08.2011 92,70 2 566,04
01.09.2011 92,63 2 673,05
01.10.2011 88,69 2 827,10
01.11.2011 91,19 2 726,42
01.12.2011 88,26 2 764,40
01.01.2012 86,79 2 794,43
01.02.2012 88,33 2 682,21
01.03.2012 89,84 2 600,88
01.04.2012 89,50 2 624,78
01.05.2012 89,21 2 619,52
01.06.2012 85,48 2 773,78
01.07.2012 85,64 2 810,45
01.08.2012 85,21 2 742,85
01.09.2012 85,85 2 772,45
01.10.2012 87,61 2 708,58
01.11.2012 87,19 2 748,67
01.12.2012 87,47 2 716,61
01.01.2013 88,59 2 690,63
01.02.2013 89,21 2 678,63
01.03.2013 87,61 2 682,58
01.04.2013 86,76 2 696,73
01.05.2013 87,27 2 727,79
01.06.2013 86,72 2 739,33
01.07.2013 86,47 2 828,23
01.08.2013 86,90 2 858,04
01.09.2013 86,77 2 884,79
01.10.2013 88,03 2 847,35
01.11.2013 88,74 2 845,19
01.12.2013 88,06 2 922,79
01.01.2014 88,63 2 900,64
01.02.2014 87,39 3 079,94
01.03.2014 87,25 3 145,34
01.04.2014 87,50 3 122,51
01.05.2014 87,62 3 127,94
01.06.2014 87,32 3 033,17
01.07.2014 87,94 2 957,38
01.08.2014 86,46 3 088,79
01.09.2014 85,31 3 150,50
01.10.2014 83,20 3 276,79
01.11.2014 81,74 3 547,02
01.12.2014 79,97 3 994,12
01.01.2015 78,00 4 388,09
01.02.2015 74,02 5 101,83
01.03.2015 74,92 4 590,59
01.04.2015 74,35 4 346,94
01.05.2015 76,33 3 946,42
01.06.2015 75,86 4 018,51
01.07.2015 75,65 4 200,53
01.08.2015 74,56 4 398,15
01.09.2015 73,76 4 903,67
01.10.2015 73,66 4 878,80
01.11.2015 73,45 4 728,39
01.12.2015 72,22 4 784,05
01.01.2016 71,72 5 227,18
01.02.2016 71,15 5 348,66
01.03.2016 71,34 5 356,96
01.04.2016 73,18 4 947,33
01.05.2016 73,86 4 751,69
01.06.2016 72,99 4 823,19
01.07.2016 72,76 4 675,36
01.08.2016 72,21 4 842,00
01.09.2016 72,71 4 719,17
01.10.2016 72,71 4 617,54
01.11.2016 72,20 4 541,93
01.12.2016 71,26 4 628,09
01.01.2017 71,87 4 359,16
01.02.2017 72,46 4 359,30
01.03.2017 72,60 4 206,38
01.04.2017 73,33 4 134,27
01.05.2017 73,57 4 192,50
01.06.2017 74,18 4 192,30
01.07.2017 74,22 4 385,49
01.08.2017 74,72 4 449,35
01.09.2017 75,36 4 425,35
01.10.2017 72,57 4 210,36
01.11.2017 69,36 4 130,81
01.12.2017 66,94 3 904,76
01.01.2018 65,15 3 752,94
01.02.2018 66,26 3 729,71
01.03.2018 66,44 3 698,96
01.04.2018 65,88 3 772,89
01.05.2018 63,91 3 962,70
01.06.2018 62,75 3 927,58
01.07.2018 77.11 4 839.26
01.08.2018 77.16 4 844.38
01.09.2018 75.79 5 160.28
01.10.2018 76.20 5 004.49
01.11.2018 75,59 4 972,44
01.12.2018 68,55 4 567,74
01.01.2019 58,10 4 036,05
01.02.2019 59,05 3 903,00
01.03.2019 59,12 3 888,00
01.04.2019 59,14 3 828,25
01.05.2019 58,96 3 814,44
01.06.2019 58,74 3 821,72
01.07.2019 59,66 3 762,96
01.08.2019 124,14 7 867,70


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 purchased 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.


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.

Former Finance Minister Alexei Kudrin began saving money for a rainy day. In 2004, he created the Stabilization Fund. Four years later - at the height of the previous crisis - it was divided into the Reserve Fund and the National Welfare Fund. The first was designated as a “safety cushion” for the budget. The National Welfare Fund became a stabilizer of the pension system, although it was never used for its intended purpose. Spending the Stabilization Fund within the country “is simply destroying the economy,” Kudrin wrote in Kommersant in 2006.

Ironically, it was the main fighter for its integrity who was the first to “unseal” the NWF. Kudrin had to open Pandora's box in order to save the financial system from the crisis in 2008-2009. To do this, the ex-minister allowed investing up to 40% of the National Welfare Fund in ruble assets (initially, reserves were kept only in foreign assets and currency).

Kudrin’s idea was that during difficult periods, funds do not decrease, but grow in ruble terms, explains Konstantin Vyshkovsky, director of the Ministry of Finance department: for example, when oil prices fall and the ruble exchange rate depreciates.

But Kudrin had opponents. The main ideologist of investing NWF funds in the economy is presidential assistant Andrei Belousov [formerly the head of the Ministry of Economic Development], several officials and experts close to the government told RBC. Belousov himself did not provide comments for this article.

The organizational weight of Kudrin, who knew the president from his work at the St. Petersburg mayor’s office, made it possible to restrain attacks on the NWF, people close to the ex-minister recall. “But after he left [in September 2011], it was no longer possible to adhere to the principle that we do not invest anything [from the National Welfare Fund] inside Russia,” says a federal official.

In 2012, in a message to parliament, Putin proposed investing up to 100 billion rubles in infrastructure. from the National Welfare Fund. In just six months, the president will increase the limit to 450 billion.

The priority has been changed, stated Finance Minister Anton Siluanov (Kudrin’s deputy before his resignation). Siluanov himself was more conservative. He proposed directing up to 50% of the National Welfare Fund to sovereign and corporate bonds and 3-5% to shares. The funds would be managed by a new structure - Rosfinagentstvo. Kudrin also lobbied for its creation, says a person close to him: this way he wanted to protect reserves from waste.

The Ministry of Finance was in the minority. The authorities decided that it was safer to invest money within the country, the federal official recalled: there was no risk that the money would be seized abroad. Rosfinagentstvo remained on paper, but the National Welfare Fund decided to print it.

Unheard of Generosity Fund

“Whoever asked for anything!” - recalls a government official. Applications even came from citizens, he says: “Allocate 50 million rubles. for personal purposes."

Calls to increase the 40% limit on projects to 50 or 60% began to be heard immediately after the decision to allocate funds from the National Welfare Fund for infrastructure. But then the president did not give in to persuasion, said First Deputy Prime Minister Igor Shuvalov in the fall of 2013.

As a result, competition for NWF funds has increased sharply. Almost all companies planning any serious investments rushed to submit applications. In mid-2014, the amount of all applications exceeded the size of the fund itself, the official recalls. Over the past year, more than a hundred applications were received, says another, in 2015 - only 12 from Rosneft.

The state-owned company generally became the record holder among applicants. Rosneft, which fell under sanctions, needed to fill the lack of external financing. At first, Rosneft limited itself to asking for 2.44 trillion rubles. for the development of 28 strategic projects, says a White House official. Minister of Economic Development Alexey Ulyukaev was shocked, a high-ranking interlocutor of RBC recalled: the entire National Welfare Fund at that time was about 3 trillion rubles, and the application took no more than ten pages. Later, the minister explained that Rosneft’s application did not meet the formal requirements for projects: the company asked for funds not for infrastructure, but to cover the cash gap.

“If there are no additional funds, we will manage on our own,” Rosneft President Igor Sechin was not embarrassed. But he did not lose interest in the funds of the National Welfare Fund, having changed tactics. By January 2015, the Ministry of Energy received 28 separate applications from the company for a total of 1.3 trillion rubles. from the National Welfare Fund. So far, five projects of state-owned companies worth 300 billion rubles have received preliminary approval from the department. Now the decision is up to the government.

“Everything is done in Russian,” sighs the federal official: “First we follow the most conservative possible model. And then we go to the other extreme: without investing a penny, we get a list of projects, and nothing is enough.”

The most convincing lobbyists turned out to be Rosatom and RDIF. In June 2014, the government established separate quotas for their projects - 10% of the National Welfare Fund, but not more than 290 billion rubles.


RDIF was also the first recipient of the fund's funds. In December, a little more than 5 billion rubles were “shipped” to him. for two projects - eliminating the “digital divide” together with Rostelecom and introducing “smart networks” with Rosseti. There are more projects, a RDIF representative told RBC: they have filled the entire quota.

But, apparently, we will have to wait with them. Sanctions and the crisis forced the authorities to reconsider their attitude towards the “stash”. It is not entirely justified to undertake global construction projects during a period of closed capital markets, the federal official admits. Obviously, infrastructure projects are long-term projects, says Vyshkovsky. And given the difficult geopolitical situation, sanctions, and the closure of foreign markets, most of the funds must be kept in liquid form, he urges.

Investment or spending

Almost a quarter of the Reserve Fund was spent during the 2008 crisis, recalls Konstantin Vyshkovsky. At the same time, “a significant amount of funds” from the National Welfare Fund was also spent on fighting the crisis, he notes: “A significant part of these funds is still in illiquid form in the form of deposits in VEB [NWF funds were received by banks in transit through a deposit in VEB].”

Often this was a “momentary plugging of holes,” Alexey Kudrin admitted in an interview with RBC: “Then [in 2008-2009] there was a shock to the world economy, and we had to spend money without thinking twice.”

VEB's illiquid anti-crisis deposits are just the tip of the iceberg. In fact, the rescue of banks cost the National Welfare Fund almost twice as much.

The troubles started with Gazprombank. In 2012, the state bank repaid part of the debt (50 billion rubles) to VEB with its own shares. Formally, the funds returned to the National Welfare Fund. But the Ministry of Finance returned them to VEB, says Accounts Chamber auditor Mikhail Beshmelnitsyn in a report on the use of funds for the first half of 2012. The state corporation used them to buy 10.2% of Gazprombank.

Last year, other state banks (also VTB and Rosselkhozbank - for only 279 billion rubles) asked to convert anti-crisis assistance from the National Welfare Fund into their preferred shares.

Private banks also encountered difficulties with the return of funds from the National Welfare Fund. In particular, FC Otkritie (until June 2014 - Nomos Bank) has already asked the authorities to convert 4.9 billion rubles into preferred shares. from the National Welfare Fund. This is how much Nomos Bank received in 2008.

The conversion of funds from the National Welfare Fund into bank shares reduces the size of the anti-crisis deposit at VEB. Because of this, the state corporation required additional capitalization. As a result, in the fall of 2014, VEB received a subordinated deposit from the National Welfare Fund for $6 billion.

And even this did not end the assistance to financial government agencies from the National Welfare Fund. Another 100 billion rubles. VTB received from the fund in the form of subordinated deposits at the end of last year. In total, 250 billion rubles have been allocated from the National Welfare Fund for additional capitalization of banks in the anti-crisis plan. and another 300 billion to VEB. The total limit of funds that can be placed in subordinated deposits of banks (VEB is not formally a bank) is 10% of the National Welfare Fund (RUB 459 billion as of March 1).

Putin bequeathed to invest funds in the National Welfare Fund exclusively on a repayable basis. But for investments from the National Welfare Fund into subordinated instruments, a special regime applies. According to the Budget Code, they are not subject to safety requirements.

Formally, the authorities agreed in advance that these funds were non-refundable, an official from the government’s financial and economic bloc admits: the bank has the right not to return them if the adequacy of its capital falls below a certain level. But the risks are minimal, RBC’s interlocutor assures: “The state cannot and should not allow default or bankruptcy of, for example, VTB as a systemically important bank.”

However, the NWF funds invested in infrastructure may also turn out to be irrevocable, the Accounts Chamber warned in its conclusion on the draft federal budget for 2015-2017. In particular, the auditors raised questions about the procedure for returning funds from the National Welfare Fund invested in shares of Russian Railways. This is how the government plans to finance the construction of the BAM.

The purchase of shares of Russian Railways with funds from the National Welfare Fund was planned initially, a person close to the Ministry of Economic Development knows: an increase in debt would lead to a decrease in the rating of the state monopoly, which means that the cost of market financing could increase. The emergence of new obligations for Russian Railways and their servicing were impossible, a federal official confirms.

Exiting shares is difficult, a federal official now admits: “For example, under what conditions will we be able to sell Russian Railways shares? Only when the state decides to privatize Russian Railways.”

And such a decision will be made based on a number of conditions, and not just under favorable conditions, states RBC’s interlocutor. The authorities have been planning the sale of the state stake in Russian Railways since 2011, but the matter has not moved beyond the plans.

There is a departure from the basic principles of the National Welfare Fund, complains Natalya Akindinova, director of the HSE Development Center. First, funds intended for future retirees began to be invested in investment projects. If they were recouped, then the funds would be returned over time, she argues. But investments in shares may become irrevocable, warns Akindinova.

The funds are given free of charge and without a guarantee of return, a high-ranking federal official agrees on condition of anonymity: in essence, this is an additional capitalization of state-owned companies.


“We shouldn’t even talk about non-refundability of funds!” - Konstantin Vyshkovsky objects, the funds of the National Welfare Fund should be invested only on the terms of repayment and profitability: “This is the norm of the law.” “The return of funds from the National Welfare Fund is an absolute priority,” agrees Deputy Minister of Economic Development Nikolai Podguzov. According to him, the funds of the National Welfare Fund invested in bank shares will be returned through the payment of dividends.

Budget or economics

In 2014, the price of oil fell by almost half. The ruble fell in price against the dollar by the same amount, and the price increase of 11.4% was the highest since the crisis year of 2008 (13.3%). GDP growth slowed to its lowest level since 1999 (with the exception of the crisis year of 2009) and amounted to 0.6%. In 2015, the economy is expected to decline by 3%. Russia is in an extremely difficult situation, Igor Shuvalov said at the economic forum in Davos: “We are entering a more protracted and complex crisis [than in 2008-2009].”

The authorities informed the country that there were problems with the budget shortly after the New Year holidays. Lost revenues at an oil price of $50 per barrel will amount to 3 trillion rubles, Siluanov announced at the Gaidar Forum in January. This is exactly the price for oil that the Ministry of Economic Development included in its updated macro forecast for 2015. This is two times lower than before, states Vyshkovsky: “Because of this, a shortage arises.”

“Since incomes are declining, we want to once again reconsider the decisions that were made to invest the funds of the National Welfare Fund,” Siluanov said, speaking in January in the Federation Council: the National Welfare Fund is the same as the Reserve Fund, a source in case of a reduction in the revenue base.


In the current situation, the Reserve Fund (4.72 trillion rubles as of March 1) will be exhausted within two years, predicts Vladimir Nazarov from the Gaidar Institute. 500 billion rubles. was withdrawn from the fund in February. According to the Ministry of Finance’s calculations, this year another 3.2 trillion rubles will be needed to patch budget holes, in 2016 - 1.16 trillion. After the Reserve Fund is exhausted, the National Welfare Fund will have to be spent to cover the budget deficit, Vyshkovsky admits.

The Ministry of Finance is generally against investing any funds from the National Welfare Fund, says a person close to the Ministry of Economic Development: funds may be required for budget insurance and an anti-crisis plan. The Ministry of Finance proposed to freeze decisions on entering projects for six months, an official from the financial and economic bloc clarifies: “To see how the further situation will develop this year.”

The problem is not saving something, argues an employee of one of the state corporations: “Reserves amount to more than 10% of GDP, and with the Central Bank’s currency it is an order of magnitude larger.” It is necessary to avoid a large-scale investment downturn, RBC’s interlocutor urges, “with the ensuing consequences for people, well-being and loss of competitiveness.” Since the authorities are cutting budget expenditures, the only thing left is the resource of the National Welfare Fund and banks. But banks will not lend to long-term projects on their own, says an employee of the state corporation: only the National Welfare Fund remains.

The projects are not ranked in any way by importance, notes an official from the financial and economic block: which of them will make the greatest contribution to GDP and employment growth. At the same time, the amounts allocated are “quite large,” admits RBC’s interlocutor: “The risks, of course, are high.”

Prosperity is not for everyone

“At a meeting with the president, the NWF was mothballed,” says an official familiar with its results. In addition to the previously issued funds (100 billion rubles for VTB deposit and 5 billion for RDIF projects), they have so far decided to allocate another 525 billion rubles, Ulyukaev said after the meeting.

The President ordered the financing of six projects, as follows from the list of instructions: the Central Ring Road, BAM, the Hanhikivi-1 nuclear power plant in Finland, the elimination of the digital divide, Yamal LNG and the purchase of locomotives for Russian Railways. Thus, the president approved investments of just over 600 billion rubles.

Together with VEB’s subordinated deposits (including those from the anti-crisis plan), investments in bank shares and 5 billion rubles previously invested in RDIF projects, the total amount of NWF funds invested in illiquid assets will exceed a third of its volume as of March 1.

For some projects, investment amounts have been reduced and their priority has changed, two federal officials tell RBC. From the list of instructions it follows that the meeting approved the financing of only the first and fifth sections of the Central Ring Road (the winners of the investment competitions are Stroygazconsulting of Ziyad Manasir and Ruslan Baysarov and Ring Highway LLC, a structure included in the ARKS of Gennady Timchenko, respectively).

A decision was made to finance only those areas that do not involve investments from foreign investors, the official explains: “So far we are talking about 75 billion rubles. [of the approved 150 billion].” According to him, for now these are all the funds from the National Welfare Fund that the project can count on until 2018: “Afterwards, the foreign policy situation may be different.”

“We have already invested funds from the National Wealth Fund in two relatively small projects [RDIF], we will need to add another piece,” says Konstantin Vyshkovsky. There are no real projects for the rest of the limit yet, he claims, the undrawn amounts can be directed to projects in some other areas. The same applies to Rosatom, notes Vyshkovsky: “It has one project [the construction of a nuclear power plant in Finland for 150 billion rubles], and we are not discussing others yet.” “The limit is a limit because it is a maximum, not a mandatory share,” he argues.

The fact that the limit on RDIF is actually frozen was revealed by two more federal officials familiar with the results of the meeting.

The only project that was previously approved by the government, but is not mentioned in any way in the instructions, is the development of a coal basin in Tuva, which was initiated by the Tuva Energy Industrial Corporation (TEC) of Ruslan Baysarov. It has been moved, two White House officials say. The project has been worked out 100% and approved at all levels, complains one of them, but the scale is not the same: the “road of life” for Tuva did not qualify for a federal project.

The project was launched personally by Putin. In 2011, he hammered a silver spike into the first link of the Elegest-Kyzyl-Kuragino railway route (part of the TEPK project). A year later, at a major press conference, Putin called the project “complex” but promised to ensure state participation if it was “critical.”

The issue of financing the TEPK project from the National Welfare Fund will still be worked out, Ulyukaev said. In the macro forecast of the Ministry of Economic Development, the project is still included in the list of applicants for funds from the National Welfare Fund in 2015.

Pension risks

In the next 10-15 years, funds from the National Welfare Fund may be needed to pay pensioners, Alexey Kudrin predicted in 2013. The money invested in projects may not be returned by this time, he warned: “In this way we are reducing our insurance for a difficult period.”

If you invest funds from the National Welfare Fund in large projects with a payback period of 20 years or more, then the money will be frozen for this period, an official of the financial and economic bloc agrees. It will be impossible to use them to support the pension system or anti-crisis purposes.

Kudrin estimated the amount of funds needed to solve problems “related to the demographic gap” at 2-3 trillion rubles. “[If the National Welfare Fund is wasted] we will have to look for other sources of solving this problem... Either raise the retirement age or increase insurance premiums. There are no other options,” concluded the ex-minister.

On the one hand, the size of the National Welfare Fund has increased due to the devaluation of the ruble. Last year it brought in 1.5 trillion rubles.

On the other hand, the collapse of the ruble provokes inflation, notes Vladimir Nazarov from the Gaidar Institute, and because of this, additional indexation of pensions will be required. In such an uncertain situation, one cannot say that there will be enough reserves, he warns.

One should also remember about the recession in the economy, adds Vladimir Tikhomirov, chief economist of FC BCS, this will lead to an increase in unemployment: “Contributions to the Pension Fund will inevitably decrease, which will increase its deficit.” The problems of the pension system will only accumulate, Akindinova agrees: “This is a problem that everyone knows about, but puts off until later.”

Be that as it may, starting this year, the authorities began to actively discuss raising the retirement age. This has nothing to do with investing NWF funds in illiquid assets, the federal official claims: the problems of the pension system have been brewing for a long time. Infusions from the National Welfare Fund could delay them for a while, but would not solve them, he is pessimistic.

How are Russian sovereign funds filled and why are they needed?

According to the budget rule, excess oil and gas revenues are sent to the Reserve Fund until its volume reaches 7% GDP. Half of the income above this limit goes to the National Welfare Fund, and the other half goes to finance infrastructure projects. The Reserve Fund and the National Welfare Fund replaced the Stabilization Fund in 2008. The main successor to the Stabilization Fund and budget insurance is the Reserve Fund. If world energy prices fall, the government can open this “box” and use funds to cover the budget deficit. The National Welfare Fund was created to fulfill the state’s obligations to pensioners. It is assumed that the funds of the National Welfare Fund should be used to cover the deficit of the Pension Fund and co-finance voluntary pension savings.