News

On Investment Management of Reserve Fund and National Wealth Fund’s Assets

Russia’s Finance Ministry hereby reports on investment management of the Reserve Fund and the National Wealth Fund’s assets over the period from 1 to 31 January, 2017.

Reserve Fund

As at 1 February 2017, the Reserve Fund’s assets totaled RUB 973.53bn, or USD 16.18bn in equivalent. The balances of the Reserve Fund separate accounts comprised:

  • USD 7.62bn;
  • EUR 6.71bn;
  • GBP 1.10bn.

For the period from 15 December 2016 to 31 January 2017, the total estimated return on the Reserve Fund’s assets placed in foreign currency accounts with the Bank of Russia as denominated in US dollars came to USD 0.01bn, or RUB 0.49bn in equivalent. The exchange rate difference from the revaluation of balances of the said accounts for the period from 1 to 31January 2017 came to RUB 1.40bn.

National Wealth Fund

As at 1 February 2017, the NWF assets totaled RUB 4,359.30bn, or USD 72.46bn in equivalent, including:

1)

  • USD 19.51bn,
  • EUR 20.76bn, and
  • GBP 3.83bn,

held in the NWF separate accounts with the Bank of Russia;

2) RUB 198.23bn and USD 6.25bn deposited with Vnesheconombank;

3) USD 3.00bn invested in debt securities of foreign states based on an ad hoc decision by the Russian Government and subject to no long-term credit rating requirements.

4) RUB 112.63bn and USD 4.11bn invested in debt securities issued by Russian legal entities to deliver sustainable infrastructure projects included in the list approved by the Russian Government;

5) RUB 278.99bn invested in preferred shares in credit institutions;

6) RUB 164.43bn deposited with VTB Bank and Gazprombank to finance sustainable infrastructure projects included in the list approved by the Russian Government.

For the period from 15 December 2016 to 31 January 2017, the total estimated return on the NWF assets placed in foreign currency accounts with the Bank of Russia as denominated in US dollars came to USD 0.01bn, or RUB 0.82bn in equivalent. The exchange rate difference from revaluation of the Fund’s assets for the period from 1 to 31 January, 2017 amounted to RUB 0.14bn, including:

  • RUB 6.76bn of the balances in foreign currency accounts with the Bank of Russia;
  • RUB (-)3.10bn of the USD deposits with Vnesheconombank;
  • RUB (-)1.49bn invested in debt securities of foreign states based on an ad hoc decision by the Russian Government and subject to no long-term credit rating requirements.
  • RUB (-)2.04bn invested in foreign currency-denominated debt securities issued by Russian entities to deliver sustainable infrastructure projects included in the list approved by the Russian Government.

In January 2017, the federal budget received the return on investment of the NWF assets:

a) RUB 1.05bn, or USD 0.02bn in equivalent, in a deposit with VTB Bank;

b) RUB 2.11bn, or USD 0.04bn in equivalent, in deposits with Vnesheconombank;

c) RUB 0.24bn, or USD 0.004bn in equivalent, in debt securities issued by Russian legal entities to deliver sustainable infrastructure projects included in the list approved by the Russian Government;

In January 2017, the total return on investment of the NWF assets in eligible financial assets amounted to RUB 3.39bn or USD 0.06bn in equivalent.

Figures for the amount of the Reserve Fund and the National Wealth Fund, as well as the estimated return on investment of the Funds’ assets are calculated at the official foreign exchange rates fixed by the Bank of Russia as of the date preceding the reporting one, and at the cross rates calculated based thereon.

Detailed statistics on transactions in the assets of the Reserve Fund and the National Wealth Fund are posted on the Russian Finance Ministry website in the Reserve Fund and National Wealth Fund subsections in Russian and English and are regularly updated.

Origin: Press Service of Russia’s Finance Ministry