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 Wealth Fund from January 1 to April 30, 2016.

The Reserve Fund

In April of 2016, in accordance with the Federal Law dated December 14, 2014 № 359-FZ “On the Federal Budget for 2016 ” and in accordance with Order of the Russian Finance Ministry dated April 1, 2016 № 104 “On Using Financial Resources of the Reserve Fund in Foreign Currency to Fund the Federal Budget Deficit in 2016,” a part of the financial resources of the Fund in foreign currency from the Bank of Russia’s accounts in the amount of 2.62 billion US dollars, 2.30 billion euros and 0.41 billion pounds sterlings were sold for 390.00 billion rubles and the funds received were transferred to the unified account of the federal budget to cover its deficit.

As of May 1, 2016, the aggregate amount of the Reserve Fund was 2 892.35 billion rubles which is equivalent to 44.96 billion US dollars. The amounts of balances in separate accounts to record funds of the Reserve Fund were:

• 20.08 billion US dollars;
• 17.95 billion euros;
• 3.03 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 April 30, 2016 was 0.13 billion US dollars, which is equivalent to 8.35 billion rubles. The exchange rate difference from recalculating balances of funds in the said accounts for a period from January 1 to April 30, 2016 was (-) 358.22 billion rubles.

The National Wealth Fund

In order to co-fund the formation of pension savings of insured persons who made additional insurance contributions to the funded portion of labor pensions in 2015, a part of financial resources of the National Wealth Fund in the Bank of Russia accounts in the amount of 0.10 billion US dollars was sold for 6.79 billion rubles and the received funds were transferred to the account to record funds of the federal budget.

As of May 1, 2016, the aggregate amount of the National Wealth Fund was 4 751.69 billion rubles which is equivalent to 73.86 billion US dollars including:

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

• 19.56 billion US dollars;
• 20.76 billion euros;
• 3.83 billion pounds sterlings;

2) 195.03 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) in bonds of Russian issuers related to implementing infrastructure projects, a list of which is approved by the Russian Government – 112.63billion rubles and 4.1 billion US dollars;

5) in preferred shares of credit institutions – 278.99 billion rubles;

6) on deposits of OJSC Bank VTB and Bank GPB (JSC) in order to fund infrastructure projects a list of which is approved by the Russian Government - 164.43 billion rubles.

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 April 30, 2015, was 0.12 billion US dollars, which is equivalent to 7.43 billion rubles. The exchange rate difference from recalculating monetary resources of the Fund from January 1 to April 30, 2016 was a negative value of (-) 468.71 billion rubles including:

• balances in foreign exchange accounts with the Bank of Russia – (-)354.42 billion rubles;
• funds deposited with Vnesheconombank in US dollars – (-)53.47 billion rubles;
• funds placed in debt instruments of foreign states without placing demands on long-term credit ratings – (-)25.65 billion rubles.
• foreign-currency denominated bonds of Russian issuers related to implementing infrastructure projects, a list of which is approved by the Russian Government – (-)35.17 billion rubles.

In April of 2016, incomes from placing financial resources of the National Wealth Fund:

a) on deposits of Vnesheconombank in the amount of 2.36 billion rubles which is equivalent to 0.04 billion US dollars;

b) on the subordinated deposit of Bank GPB (JSC) in the amount of 1.81 billion rubles which is equivalent to 0.03 billion US dollars.

The aggregate income from investing financial resources of the Fund in the authorized financial assets minus funds in the accounts of the Bank of Russia from January to April of 2016 amounted to 13.84 billion rubles which is equivalent to 0.20 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