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The joint venture proposed to exclude assets in the currencies of the countries that announced sanctions from the NWF

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The Accounts Chamber (CA) of Russia proposed to exclude from the National Welfare Fund (NWF) funds placed in the currencies of countries that applied anti-Russian sanctions. This became known on July 28 from the materials of the control agency following the analysis of the formation, use and management of the NWF funds.

“The Accounts Chamber of the Russian Federation considers it appropriate to recommend to the Government of the Russian Federation to instruct the Ministry of Finance of Russia, with the participation of the Bank of Russia, by July 29, 2022, to analyze the current structure of the NWF funds in terms of increasing the safety and possibility of prompt use of the NWF funds,” the document says.

To this end, the joint venture proposes to amend the structure of the Fund’s resources, excluding from it assets in euros, pounds sterling and Japanese yens. This is due not only to the fact that these assets were frozen due to anti-Russian sanctions, but also to their unprofitability in 2021.

On July 5, the Ministry of Finance of Russia reported on the income of the NWF of Russia for June. According to the agency, the volume of the NWF of Russia amounted to 10,774,981.5 million rubles, in dollars it increased by $12.896 billion, to $210.621 billion.

In early June, the Ministry of Finance reported that the volume of the NWF for May increased by 1.47 trillion rubles, to almost 12.5 trillion ($197.725 billion), or 9.4% of GDP projected for this year. As of May 1, the volume of the fund was 11.005 trillion rubles, or 8.3% of GDP. The volume of liquid assets in accounts with the Central Bank reached 9.229 trillion rubles, or 6.9% of GDP projected for this year.

On June 6, Capital Lab partner Yevgeny Shatov told Izvestiya that the increase in the volume of the NWF in May was mainly due to additional oil and gas revenues from the Russian budget due to the favorable market conditions, which reached 263.7 billion rubles. In June, he predicted growth by another 382.9 billion rubles.

The forecasted volume of additional oil and gas revenues for the entire 2022 was estimated by the Ministry of Finance at up to 1 trillion rubles, the expert noted. Part of this money, according to him, will not be credited to the National Welfare Fund, but will go to additional social spending.

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