Information Message on the Results of Investing Funds of the Reserve Fund and the National Wealth Fund

Russia’s Finance Ministry hereby informs about the results of investing funds of the Reserve Fund and the National WealthFund from January 1 to September 30, 2014.

The Reserve Fund

As of October 1, 2014 the aggregate amount of the Reserve Fund was 3 544.83billion rubles which is equivalent to 90.00 billion US dollars. The amounts of balances in separate accounts to record funds of the Reserve Fund were:

• 40.82 billion US dollars
• 31.39 billion euros;
• 5.75 billion pounds sterlings.

The aggregate calculated income from placing funds of the Reserve Fund in foreign currency accounts of the Bank of Russia recalculated in dollars for a period from January 15 to September 30, 2014 was0.42 billion US dollars, which is equivalent to 16.38 billion rubles. The exchange rate difference from recalculating balances of funds in the said accounts for a period from January 1 to September 30, 2014 was 468.04 billion rubles.

The National Wealth Fund

In September of 2014, Vnesheconombank early returned financial resources of the Fund in the amount of 6.254 billion US dollars placed on its deposits under Resolution of the Russian Government dated January 19, 2008, № 18 “On the Procedure for Managing Funds of the National Wealth Fund”.

In accordance with the said Resolution and Instruction of the Russian Government dated September 6, 2014, №1749-r, the funds of the Fund returned early were placed on new deposits with Vnesheconombank:

1) in the amount of 5.966 billion US dollars for a tenure of 15 years with annual accrued interest payments that allow to include accrued interest upon calculating Vnesheconombank’s own funds (capital), out ofthe said funds:

3.504 billion dollarswith accrual of interest every six months at a rate of 3 percentage points higher than LIBOR in US dollars for a tenure of six months;

2.462 billion dollarswith accrual of interest every six months at a rate of 2.75 percentage points higher than LIBOR in US dollars for a tenure of six months;

2) in the amount of 0.238 billion US dollars with accrual of interest very six months at a rate of 3.8 percentage point higher than LIBOR rate in US dollars for a tenure of six months with annual accrued interest payments.

Moreover, in September of 2014, Vnesheconombank early returned financial resources of the Fund placed on deposits in the amount of 214.04 billion rubles in accordance with Federal Law dated October 13, 2008, № 173-FZ “On Additional Measures for Supporting the Financial System of the Russian Federation”. In accordance with Resolutions of the Russian Government dated January 19, 2008, № 18 “On the Procedure for Managing Financial Resources of the National Wealth Fund”, and dated August 22 2014, № 839 “On Using Financial Resources of the National Wealth Fund to Purchase Preferred Shares of Credit Institutions” the Funds of the Fund in the said amount were used by the Russian Finance Ministry to purchase by private subscription OJSC Bank VTB’s preferred shares innumber of 21 403 797 025 000 at a par value of 0.01 ruble for one share which accounts for 62.3% of OJSC Bank VTB’s charter capital.

As of October 1, 2014, the aggregate amount of the National Wealth Fund was 3 276.79 billion rubles which is equivalent to 83.20 billion US dollars including:

1) In separate accounts to record funds of the National Wealth Fund with the Bank of Russia:

• 24.42 billion US dollars;
• 23.97 billion euros;
• 4.35 billion pounds sterlings;

2) 474.02 billion rubles and 6.25 billion US dollars were deposited with Vnesheconombank.

3) under an individual decision by the Russian Government 3.00 billion US dollars were placed in debt instruments of foreign states without placing demands on long-term credit ratings;

4) 214.04 billion rubles were placed in preferred shares of credit institutions.

The aggregate calculated income from placing funds of the National Wealth Fund in foreign currency accounts of the Bank of Russia recalculated in dollars for a period from January 15 to September 30, 2014, was 0.31 billion US dollars, which is equivalent to 12.35 billion rubles. The exchange rate difference from recalculating monetary resources of the Fundfrom January 1 to September 30, 2014 was388.57 billion rubles including:

• balances in foreign exchange accounts with the Bank of Russia – 326.96 billion rubles;
• funds deposited with Vnesheconombank in US dollars – 41.64 billion rubles;
• funds placed in debt instruments of foreign states under a separate decision of the Russian Government without placing demands on long-term credit ratings – 19.97 billion rubles.

In September of 2014, incomes from deposits that were early returned by Vnesheconombank in the amount of 18.79 billion rubles which is equivalent to 0.49 billion US dollars were transferred to the federal budget.

The aggregate income from placing financial resources of the Fund on Vnesheconombank’s deposits from January to September of 2014 was 40.80 billion rubles, which is equivalent to 1.13 billion US dollars.

Indicators of the aggregate amount of the Reserve Fund and the National Wealth Fund as well as of calculated incomes (losses) 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.

Origin: Press Service of Russia’s Finance Ministry