OREANDA-NEWS. January 13, 2011. Russia’s Finance Ministry hereby informs about the results of investing funds of the Reserve Fund and the National wealth Fund as of January 1, 2011.

In December of 2010, Russia’s Finance Ministry carried on implementing Russian Government Order dated January 19, 2010 № 23-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 8.74 billion US dollars, 6.64 billion euros and 1.25 billion pounds sterlings were sold for 600.00 billion rubles and the funds received were transferred to the account to record funds of the federal budget. The funds which were not used in the amount of 150.00 billion rubles were returned to the account to record funds of the Reserve Fund and are to be converted in foreign currency in January of 2011. Thus, in 2010 the funds of the Reserve Fund in the amount of 1 119.50 billion rubles were used to finance the deficit of the federal budget.

In order to implement Instruction of the Russian Government dated December 18, 2010 № 2329-r on using funds of the Reserve Fund to finance the Russian Social Insurance Fund’s budget deficit, a part of the Fund’s financial resources in the foreign currency in accounts with the Bank of Russia, namely 0.36 billion US dollars, 0.27 billion euros and 0.05 billion pounds sterlings were sold for 24.50 billion rubles and the funds received were transferred to the account to record funds of the federal budget.

The aggregate amount of the Reserve Fund was 775.21 billion rubles, which is equivalent to 25.44 billion US dollars. The amounts of balances in separate accounts to record funds of the Reserve Fund were:
150 billion rubles;
8.16 billion US dollars
6.82 billion euros;
1.17 billion pounds sterlings.

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, 2010, was 0.54 billion US dollars, which is equivalent to 16.58 billion rubles. The exchange rate difference from recalculating balances of funds in accounts to record funds of the Reserve Fund in foreign currency for the said period was a negative value of (-)27.63 billion rubles. The exchange rate difference from recalculating funds invested in the reserve position of the Russian Federation in the IMF was a positive value of 0.31 billion rubles.

In December of 2010, in order to diversify investments and increase their yields as well as in accordance with Resolution of the Russian Government dated January 19, 2008 № 18, financial resources of the National Wealth Fund in the amount of 3.504 billion US dollars were deposited with Vnesheconombank, the deposit is to be returned on December 13, 2012 and interest is to be charged every six months at a floating rate exceeding the LIBOR rate by 3.0 percentage points in dollars for a period of six months and is to be paid at the deposit return date.

Moreover, in December of 2010 in accordance with Federal Law dated October 13, 2008, № 173-FZ “On Additional Measures for Supporting the Financial System of the Russian Federation” and Resolution of the Russian Government dated January 19, № 18, financial resources of the National Wealth Fund in the amount of 3.00 billion rubles were deposited with Vnesheconombank to extend credits to the Housing Mortgage Lending Agency (OJSC).

The aggregate amount of the National Wealth Fund was 2 695.52 billion rubles which is equivalent to 88.44 billion US dollars including:

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

2)     437.02 billion rubles were deposited with Vnesheconombank including:
285.61 billion rubles to be deposited for a period up to January 31, 2019, with an interest rate of 6.25% per annum;
118.41 billion rubles to be deposited for a period up to January 25, 2020, with an interest rate of 7.25% per annum
30.00 billion rubles to be deposited for a period up to January 25, 2017, with an interest rate of 6.25% per annum ;
3.00 billion rubles to be deposited for a period up to May 29, 2020, with an interest rate of 6.25% per annum;

3)     6.25 billion US dollars were deposited with Vnesheconombank including:
2.75 billion US dollars to be deposited for a period up to October31, 2011, with a floating interest rate exceeding LIBOR six-month rate by 2.75 percentage points;
3.504 billion US dollars to be deposited for a period up to December 13, 2012, with a floating interest rate exceeding LIBOR six-month rate by 3.00 percentage points.

In December of 2010, incomes from placing the National Wealth Fund’s financial resources on Vnesheconombank’s deposit in the amount of 0.04 billion US dollars or 1.07 billion rubles were transferred to the federal budget. The aggregate income from placing the Fund’s financial resources on Vnesheconombank’s deposits was 26.36 billion rubles or 0.86 billion US dollars from January to December of 2010.

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 0.88 billion US dollars, which is equivalent to 26.80 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 the said period was a negative value of (-)28.68 billion rubles. The exchange rate difference from recalculating funds placed on Vnesheconombank’s deposits was a positive value of 1.57 billion rubles.

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.