OREANDA-NEWS. January 13, 2010. In December 2009, Russia’s Finance Ministry carried on implementing Russian Government Order dated July 16, 2009 974-r “On Using Funds of the Reserve Fund to Balance the Federal Budget”. A part of the Reserve Fund’s financial resources in foreign currency in accounts with the Bank of Russia, namely 5.94 billion US dollars, 4.14 billion euros and 0.83 billion pounds sterling were sold for 395.75 billion rubles and the funds received were transferred to the account to record to record funds of the federal budget. Moreover, oil and gas revenues of the federal budget for November of 2009 worth 305.50 billion rubles committed to the Reserve Fund were used to balance the federal budget in full. Thus, in 2009, funds of the Reserve Fund in the total amount of 2 964.83 billion rubles were used to balance the federal budget.

In pursuance of Resolution of the Russian Government dated December 29, 2007, № 955 funds of the Reserve Fund in the amount of 137.25 billion rubles were converted in foreign currency in December of 2009.

As of January 1, 2010, the aggregate amount of the Reserve Fund was 1 830.51 billion rubles, which is equivalent to 60.52 billion US dollars. As of January 1, 2010, amounts of balances in separate accounts to record funds of the Reserve Fund were:
26.03 billion US dollars
18.30 billion euros;
4.21 pounds sterlings.

As of January 1, 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 December 31, 2009, was 1.58 billion US dollars, which is equivalent to 47.91 billion rubles. Calculated interest income from placing funds of the Reserve Fund in foreign currency was (in currency of account and ruble equivalent): 0.26 billion US dollars (7.72 billion rubles); 0.75 billion euros (32.44 billion rubles); 0.16 billion pounds sterlings (7.75 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 December 31, 2009 was a positive value of 63.76 billion rubles.

The agreement between the Federal Treasury and Vnesheconombank on placing funds of the National Wealth Fund in the amount of 175.000 billion rubles on Vnesheconombank’s deposit wee early terminated in December of 2009. On the said date the sum of the deposit was returned to the account to record funds of the National Wealth Fund and interest accrued on the sum of the deposit at a rate of 7% per annum in the amount of 13.27 billion rubles was transferred to the federal budget. The said sums were converted in foreign currency and placed to appropriate accounts to record funds of the National Wealth Fund with the Bank of Russia.

In December of 2009, in order to diversify investments and increase their profitability as well as in accordance with Resolution of the Russian Government dated January 19, 2008 № 18 as of December 1, 2009, funds of the National Reserve Funds worth 2.00 billion US were placed on Vnesheconombank’s deposit. The deposit is to be returned not later than July 1, 2011 and interest is to be paid every six months at a floating rate exceeding LIBOR rate in US dollars by 2.75 percentage points. Thus, as of January 1, 2010, 2.00 billion US dollars and 434.02 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:
285.61 billion rubles to be deposited for a period up to December 31, 2019, with an interest rate of 7% per annum;
118.42 billion rubles to be deposited for a period up to December 25, 2020, with an interest rate of 8.5 per annum
30.00 billion rubles to be deposited for a period up December 25, 2017, with an interest rate 8.5 per annum (in December of 2009 – 10 billion rubles).

As of January 1, 2010, the aggregate amount of the National Wealth Fund was 2 769.02 billion rubles, which is equivalent to 91.56 billion US dollars. As of January 1, 2010, amounts of balances were:

1) In separate accounts to record funds of the National Wealth Fund with the Bank of Russia:
32.64 billion US dollars;
24.70 billion euros;
4.49 billion pounds sterlings;

2) on deposits with Vnesheconombank:
434.02 billion rubles
2.00 billion US dollars

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 December 31, 2010, was 1.15 billion US dollars, which is equivalent to 34.89 billion rubles. Calculated interest from placing funds of the National Wealth Fund in foreign currency was (in currency of account and ruble equivalent): 0.22 billion US dollars (6.67 billion rubles); 0.53 billion euros (23.08 billion rubles); 0.11 billion pounds sterlings (5.15 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 December 31, 2010, was a positive value of 12.05 billion rubles.

Conversion transactions with the 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 foreign currency market conditions

Indicators of the aggregate amount 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.