Russian Reserve Fund officially ceased to exist

UFA, 1 February 2018. /Bashinform News Agency, Olga Murtazina/. On February 1, exactly ten years after its establishment, the Reserve Fund of the Russian Federation, which financed the budget deficit, officially ceased to exist. In fact, it has not been operating for a month - the last 1 trillion rubles was spent at the end of 2017, the balances transferred to the National Welfare Fund. Now it will accumulate revenues from the oil and gas industry at an oil price of over $40 per barrel. In the current year, with an average oil price of $ 55, the Finance Ministry promises to replenish the NWF by 2 trillion rubles.

Also in 2018, the NWF should be replenished by 829 billion rubles with the currency, which the Finance Ministry bought in the market within its operations for 2017. Now the NWF contains 3.75 trillion rubles.

In 2004 the Stabilization Fund of the Russian Federation was created, and on February 1, 2008 it was divided into the National Welfare Fund and the Reserve Fund. According to the estimates of most experts, the accumulated reserves helped Russia not only to survive the global crisis of 2008 without serious social and financial upheavals, but also repeatedly helped it out in the years to come.

According to the law on the budget for 2018-2020, the current year will be the last year when the budget deficit will be financed from reserves. However, the Finance Ministry believes that, if the favorable situation persists (if oil prices remain at current levels), it will be possible in 2018 to abandon the NWF spending.