Stabilization fund
The Stabilization Fund ( Russian стабилизационный фонд Российской Федерации ) is a special fund ( sovereign wealth fund ) of the Government of the Russian Federation .
The fund was created in 2004 in the event of falling state revenues due to falling world market prices for oil , based on the experience of the ruble crisis in 1998.
In 2008 the fund was split into a reserve fund (Резервный фонд Российской Федерации) and a prosperity fund (Фонд национального благосостояния России). The reserve fund is used to finance government spending when the price of oil falls below a certain level. If further surplus funds are available after the annual replenishment of the reserve fund, these are allocated to the prosperity fund, which ensures the functioning of the pension fund and finances national prosperity projects in the area of infrastructure development.
The funds are maintained by the Russian Ministry of Finance , which delegates certain asset management tasks to the Russian central bank .
In June 2017, the finance minister proposed to merge both funds (again), which the government had to decide on.
According to the proposal of the Ministry of Finance, on July 31, 2017 , President Vladimir Putin signed a decree on the merger of the two funds under the name of the National Welfare Fund (ФНБ Фонд национального благосостояния) on February 1, 2018. As of June 1, 2017, the reserve fund was 932 billion rubles; the welfare fund of 4192 billion rubles.
Web links
Individual evidence
- ↑ gazeta.ru: Минфин призвал объединить Резервный фонд и Фонд национального благосостояния, July 8, 2017 (in Russian) (accessed September 7, 2017)
- ↑ www.kp.ru: Резервный фонд объединили с ФНБ (accessed September 7, 2017)