Russian National Wealth Fund

The Russian National Wealth Fund is Russia's sovereign wealth fund. It was created after the Stabilization Fund of the Russian Federation was split into two separate investment funds on 30 January 2008.

Russian National Wealth Fund
TypeSovereign wealth fund
Founded2008
Total assets$176.64 bn (August 2020)
Websiteold.minfin.ru/en/nationalwealthfund
National Wealth Fund, 2008–2017, with the blue line showing the nominal value in billion USD and the amber line showing the nominal value in billion RUB

Fund structureEdit

The two funds are the Reserve Fund, which is invested abroad in low-yield securities and used when oil and gas incomes fall, and the National Wealth Fund, which invests in riskier, higher return vehicles, as well as federal budget expenditures. The Reserve Fund was given $125 billion and the National Wealth Fund was given $32 billion. The fund is controlled by the Ministry of Finance. One of the fund's main responsibilities is to support the Russian pension system.[1]

OverviewEdit

The National Wealth Fund will receive funds from investment returns or any excess funds that the Reserve Fund produces. The Reserve Fund is capped at 10% of Russian GDP, and any funds over that will be given to the Wealth Fund. The fund also has accumulated $72.71bn (as of 1 September 2016) from taxes and duties it collects on the production and export of oil and gas.[1]

According to the Russian Ministry of Finance, the foreign debt securities the fund can invest in must have ratings of AA- or higher by Fitch or Standard & Poor's, or a rating of Aa3 by Moody's.[1] Despite this, the fund agreed to buy (on 17 December 2013) $15 billion of Ukrainian Eurobonds, despite the fact that Ukraine had lower credit ratings at the time.[1][2][3]

The fund stands out from other global funds with it gathering investments into the national economy itself instead investing everything overseas, so it can provide a boost to the slow modernization of Russian infrastructure in a time of otherwise anemic investment. Other countries like Indonesia are following the Russian example in running a National Wealth Fund it is reported in 2020.[1]

The Russian National Wealth Fund was merged in 2017 with the remaining of Russia’s sovereign Reserve Fund. The Reserve fund was built up over years with profits from oil exports but amid low oil price prices was emptied by the end of 2017 and ceased to exist.

Size of the fund and historic numbersEdit

Source by the Ministry of Finance of Russia:[4]

Date billions of $ billions of ₽
01.02.2008 32.000 783.310
01.03.2008 32.220 777.030
01.04.2008 32.900 773.570
01.05.2008 32.720 773.820
01.06.2008 32.600 773.930
01.07.2008 32.850 770.560
01.08.2008 32.690 766.480
01.09.2008 31.920 784.510
01.10.2008 48.680 1 228.880
01.11.2008 62.820 1 667.480
01.12.2008 76.380 2 108.460
01.01.2009 87.970 2 584.490
01.02.2009 84.470 2 991.500
01.03.2009 83.860 2 995.510
01.04.2009 85.710 2 915.210
01.05.2009 86.300 2 869.440
01.06.2009 89.860 2 784.140
01.07.2009 89.930 2 813.940
01.08.2009 90.020 2 858.700
01.09.2009 90.690 2 863.080
01.10.2009 91.860 2 764.370
01.11.2009 93.380 2 712.560
01.12.2009 92.890 2 769.84
01.01.2010 91.560 2 769.020
01.02.2010 90.630 2 757.890
01.03.2010 89.630 2 684.210
01.04.2010 89.580 2 630.270
01.05.2010 88.830 2 601.620
01.06.2010 85.800 2 616.540
01.07.2010 85.470 2 666.410
01.08.2010 88.240 2 663.760
01.09.2010 87.120 2 671.540
01.10.2010 89.540 2 722.150
01.11.2010 90.080 2 772.800
01.12.2010 88.220 2 761.960
01.01.2011 88.440 2 695.520
01.02.2011 90.150 2 674.530
01.03.2011 90.940 2 631.980
01.04.2011 91.800 2 609.660
01.05.2011 94.340 2 594.580
01.06.2011 92.540 2 597.550
01.07.2011 92.610 2 600.000
01.08.2011 92.700 2 566.040
01.09.2011 92.630 2 673.050
01.10.2011 88.690 2 827.100
01.11.2011 91.190 2 726.420
01.12.2011 88.260 2 764.400
01.01.2012 86.790 2 794.430
01.02.2012 88.330 2 682.210
01.03.2012 89.840 2 600.880
01.04.2012 89.500 2 624.780
01.05.2012 89.210 2 619.520
01.06.2012 85.480 2 773.780
01.07.2012 85.640 2 810.450
01.08.2012 85.210 2 742.850
01.09.2012 85.850 2 772.450
01.10.2012 87.610 2 708.580
01.11.2012 87.190 2 748.670
01.12.2012 87.470 2 716.610
01.01.2013 88.590 2 690.630
01.02.2013 89.210 2 678.630
01.03.2013 87.610 2 682.580
01.04.2013 86.760 2 696.730
01.05.2013 87.270 2 727.790
01.06.2013 86.720 2 739.330
01.07.2013 86.470 2 828.230
01.08.2013 86.900 2 858.040
01.09.2013 86.770 2 884.790
01.10.2013 88.030 2 847.350
01.11.2013 88.740 2 845.190
01.12.2013 88.060 2 922.790
01.01.2014 88.630 2 900.640
01.02.2014 87.390 3 079.940
01.03.2014 87.250 3 145.340
01.04.2014 87.500 3 122.510
01.05.2014 87.620 3 127.940
01.06.2014 87.320 3 033.170
01.07.2014 87.940 2 957.380
01.08.2014 86.460 3 088.790
01.09.2014 85.310 3 150.500
01.10.2014 83.200 3 276.790
01.11.2014 81.740 3 547.020
01.12.2014 79.970 3 994.120
01.01.2015 78.000 4 388.090
01.02.2015 74.020 5 101.830
01.03.2015 74.920 4 590.590
01.04.2015 74.350 4 346.940
01.05.2015 76.330 3 946.420
01.06.2015 75.860 4 018.510
01.07.2015 75.650 4 200.530
01.08.2015 74.560 4 398.150
01.09.2015 73.760 4 903.670
01.10.2015 73.660 4 878.800
01.11.2015 73.450 4 728.390
01.12.2015 72.220 4 784.050
01.01.2016 71.720 5 227.180
01.02.2016 71.150 5 348.660
01.03.2016 71.340 5 356.960
01.04.2016 73.180 4 947.330
01.05.2016 73.860 4 751.690
01.06.2016 72.990 4 823.190
01.07.2016 72.760 4 675.360
01.08.2016 72.210 4 842.000
01.09.2016 72.710 4 719.170
01.10.2016 72.710 4 617.54
01.11.2016 72.200 4 541.930
01.12.2016 71.260 4 628.090
01.01.2017 71.870 4 359.160
01.02.2017 72.460 4 359.300
01.03.2017 72.600 4 206.380
01.04.2017 73.330 4 134.270
01.05.2017 73.570 4 192.500
01.06.2017 74.180 4 192.300
01.07.2017 74.220 4 385.490
01.08.2017 74.720 4 449.350
01.09.2017 75.360 4 425.350
01.10.2017 72.570 4 210.360
01.11.2017 69.360 4 130.810
01.12.2017 66.940 3 904.760
01.01.2018 65.150 3 752.940
01.02.2018 66.260 3 729.710
01.03.2018 66.440 3 698.960
01.04.2018 65.880 3 772.890
01.05.2018 63.910 3 962.700
01.06.2018 62.750 3 927.580
01.07.2018 77.110 4 839.260
01.08.2018 77.160 4 844.380
01.09.2018 75.790 5 160.280
01.10.2018 76.200 5 004.490
01.11.2018 75.590 4 972.440
01.12.2018 68.550 4 567.740
01.01.2019 58.100 4 036.050
01.02.2019 59.050 3 903.000
01.03.2019 59.120 3 888.000
01.04.2019 59.140 3 828.250
01.05.2019 58.960 3 814.440
01.06.2019 58.740 3 821.720
01.07.2019 59.660 3 762.960
01.08.2019 124.140 7 867.700
01.09.2019 122.880 8 170.490
01.10.2019 123.070 7 927.690
01.11.2019 124.460 7 949.610
01.12.2019 124.000 7 946.220
01.01.2020 125.560 7 773.060
01.02.2020 124.380 7 840.550
01.03.2020 123.400 8 249.590
01.04.2020 165.300 12 855.750

ReferencesEdit

  1. ^ a b c d e Ukraine bailout could derail Putin's drive to boost Russian economy, Financial Times (18 December 2013)
  2. ^ Russia cuts Ukraine gas price by a third, BBC News (17 December 2013)
  3. ^ Ukraine to issue Eurobonds; Russia will purchase $15 bln, says Russian finance minister, Interfax-Ukraine (17 December 2013)
  4. ^ "Ministry of Finance Russia, STATISTICS". Retrieved 25 December 2019.

External linksEdit