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The Reserved Fund of the Russian Federation was formed on February 1, 2008, after the Stabilization Fund was divided into the Reserve Fund proper and the National Welfare Fund of Russia. As of February 1, 2008, the size of the Reserve Fund was RUR 3,069 billion.
The Reserve Fund represents a portion of federal budget funds subject to detached accounting and management for purposes of the oil and gas transfer in cases when oil and gas revenue proves insufficient to finance the transfer.
The federal law on the budget for the next financial year and planning period establishes a mandatory size of the Reserve Fund in absolute terms determined as 10 percent of GDP forecasted for the relevant financial year, which is stipulated in the federal law on the federal budget for the next financial year and planning period.
Where the size of the Reserve Fund exceeds 10% of GDP, the surplus is channeled into the National Welfare Fund.
The Reserved Fund is formed from:
- oil and gas revenue of the federal budget in a volume exceeding the size of the oil and gas transfer approved for the relevant financial year on condition that the funds accumulated in the Reserve Fund do not exceed its mandatory size;
- revenue from the management of funds in the Reserve Fund.
Official website: http://www1.minfin.ru/en/nationalwealthfund/
On division of the Stabilization Fund: :
The Stabilization Fund needs to be divided to raise the return on its investments. The Reserve Fund will store funds amounting to 10 percent of GDP. They will be invested conservatively in currencies of other countries. Meanwhile, all Stabilization Fund money not channeled into the Reserve Fund will be directed into the National Welfare Fund that will invest in more risky instruments.
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