The Ministry of Finance in August, has lost 18% of the Reserve Fund

In August, Russia lost nearly a fifth of the Reserve Fund — it declined by 18.4% to 2.09 trillion rubles, reported Tuesday, September 6, the Ministry of Finance. Including 390 billion rubles was spent on financing the Federal budget deficit should be the message of the Ministry. The Ministry of Finance has used the Reserve Fund to cover the budget deficit for the third time since the beginning of the year.

“Part of the Reserve Fund in foreign currency accounts in the Bank of Russia in the amount of $2,92 billion, €2.46 billion and £0.31 billion was realized at 390 billion rubles, and the proceeds credited to a single account of the Federal budget”, — stated in the message of the Ministry of Finance. Another 80 billion rubles of the Reserve Fund has lost due to negative revaluation of foreign currency accounts.

Earlier, in 2016, the Finance Ministry has twice implemented the Reserve Fund to cover Federal budget deficit in April and may 2016, the Finance Ministry spent from the Fund for 390 billion rubles for these purposes. In total, over eight months of 2016 to Finance the deficit of the budget allocated to 1.17 trillion rubles.

On the difference in rates (due to the strengthening of the ruble) from the beginning of 2016 the Reserve Fund has lost 380,5 billion rubles, follows from the message of the Ministry.

The funds of the national welfare Fund (NWF) in August was not spent, but for the month the Fund decreased by 123 billion rubles (-2.5%) and made up 4.72 trillion rubles Since the beginning of the year income from investing the national welfare Fund in foreign currency made up 15.41 billion rubles., and losses from foreign exchange revaluation reached 501,25 billion.

Thus, by early September, two Russian sovereign funds have less than 7 trillion rubles.

In 2016, the Ministry of Finance planned to spend from the Reserve Fund of 2.1 trillion rubles. As reported earlier, Russian Finance Minister Anton Siluanov, to keep spending the Reserve Fund at this level in 2016 will be difficult, since the amount formed is based on oil prices of $50 per barrel. Deputy Minister of Finance Maxim Oreshkin in August, expressed the opinion that the contingency Fund this year could be closer to the mark of 3 trillion rubles in case of postponement of the privatization of “Rosneft”.

At the end of 2016 the Reserve Fund will be 980 billion rubles, which will be exhausted in 2017, Reuters reported in July, citing the preparation of a draft budget for 2017-2019. In 2017, the government could use for budgetary purposes resources Fund, Siluanov said in an interview in June. Now NWF is not spent on financing the budget deficit, and about a third of its volume placed in Vnesheconombank and infrastructure projects.