Finance min says decision to unite reserve, wealth funds reached

KAZAN, Jun 30 (PRIME) -- A decision to unite Russia’s Reserve Fund and the National Wealth Fund has been reached, Finance Minister Anton Siluanov told reporters on Friday.

“In general, we have a decision to unite all reserve funds into one: we have the National Wealth Fund, there is the Reserve Fund as well,” he said.

Siluanov said the government plans to use additional oil and gas revenues the budget will receive in 2017 from the oil price of over U.S. $40 per barrel to cover a budget deficit in 2018.

“Next year, the funds of the Reserve Fund will be spent in an amount of 623 billion rubles – in other words those funds that we will accumulate and send to the Reserve Fund this year,” he said.

Siluanov also said the dependence of the Russian ruble rate on oil price fluctuations is decreasing mostly thanks to actions of the Finance Ministry, which sends additional oil and gas revenues to reserves.

“We have a floating rate, that’s why our task as the federal center is to make it predictable and relatively stable. There are fluctuations, but they are not significant. The dependence of the rate is becoming less and less. And mostly this is due to the Finance Ministry’s actions to collect excessive oil and gas revenues. Not spending of these revenues, but formation of reserves. On the one hand, reserves for the budget, and on the other hand, reduces volatility of the rate,” he said.

(59.0855 rubles – U.S. $1)

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