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Russian National Welfare Fund. Reserve Fund and National Welfare Fund Income from management of funds of the National Welfare Fund

Decree of the Government of the Russian Federation of January 19, 2008 N 18
"On the procedure for managing funds of the National Welfare Fund"

October 15, 2008, July 22, September 28, 2009, April 1, 21, July 26, August 24, 2010, September 10, 2012, January 25, November 5, December 19, 2013, June 7, July 31, August 22, November 24, December 26, 29, 2014, May 6, October 12, December 30, 2015, November 1, 2016, February 10, April 5, August 25, November 8, 2017, February 13, March 5, September 28, December 30, 2018

In accordance with 96.12 of the Budget Code of the Russian Federation, the Government of the Russian Federation decides:

1. Establish that the allocation of funds from the National Welfare Fund may be carried out:

a) by purchasing, at the expense of the National Wealth Fund, foreign currency in US dollars, euros, pounds sterling, Australian dollars, Canadian dollars, Swiss francs and yen (hereinafter referred to as the permitted foreign currency) and placing it in bank accounts opened with the Central Bank of the Russian Federation in authorized foreign currency (hereinafter referred to as accounts for accounting funds of the National Wealth Fund) on the basis of a bank account agreement between the Federal Treasury and the Central Bank of the Russian Federation (hereinafter referred to as the bank account agreement). For the use of funds placed on accounts for the National Welfare Fund, the Central Bank of the Russian Federation pays interest established by the bank account agreement;

b) by placing funds of the National Welfare Fund in the following types of financial assets denominated in the currency of the Russian Federation and permitted foreign currency (hereinafter referred to as permitted financial assets):

debt obligations of foreign states;

debt obligations of foreign government agencies and central banks;

debt obligations of international financial organizations, including those issued by securities;

paragraph was excluded from January 4, 2015 - Decree of the Government of the Russian Federation of December 29, 2014 N 1592

debt obligations and shares of legal entities, including Russian securities related to the implementation of self-sustaining infrastructure projects, the list of which is approved by the Government of the Russian Federation (hereinafter referred to as projects), including projects implemented by the joint-stock company "Management Company of the Russian Direct Investment Fund";

deposits and balances in bank accounts with banks and credit institutions, including for the purpose of financing projects;

deposits and bank account balances in the state corporation "Bank for Development and Foreign Economic Affairs (Vnesheconombank)", including for the purpose of financing projects of the state corporation "Bank for Development and Foreign Economic Affairs (Vnesheconombank)" in the real sector of the economy, implemented by Russian organizations (hereinafter - projects of Vnesheconombank);

units of investment funds, the trust management of which is carried out by a management company operating in accordance with Federal Law

Information about changes:

The resolution was supplemented with clause 1.1. from February 27, 2018 - Resolution

1.1. The assets of the National Welfare Fund include deposits in the state corporation "Bank for Development and Foreign Economic Affairs (Vnesheconombank)", placed in order to ensure the adequacy of the own funds (capital) of the said state corporation before January 1, 2018, and subordinated deposits in Russian credit institutions, placed for the purpose of financing projects before January 1, 2018.

Information about changes:

The resolution was supplemented with clause 1.2. from February 27, 2018 - Decree of the Government of the Russian Federation of February 13, 2018 N 154

1.2. Until the volume of funds of the National Welfare Fund placed on deposits and bank accounts with the Central Bank of the Russian Federation is reached, at the end of the next financial year and (or) the first year of the planning period and (or) the second year of the planning period 7 percent of the projected volume of gross domestic product indicated in the federal law on the federal budget for the next financial year and planning period, the placement of funds from the National Welfare Fund in other financial assets is not allowed, with the exception of financing projects started before January 1, 2018 and Vnesheconombank projects started before January 1, 2018, as well as acquisition of shares of investment funds, the trust management of which is carried out by a management company operating in accordance with the Federal Law “On the Russian Direct Investment Fund”.

Placement of funds of the National Wealth Fund in other financial assets, with the exception of funds placed on deposits and bank accounts with the Central Bank of the Russian Federation, and shares of investment funds, the trust management of which is carried out by a management company operating in accordance with the Federal Law "On the Russian Direct Investment Fund" ", is allowed in amounts that do not lead to a decrease at the end of the next financial year and (or) the first year of the planning period and (or) the second year of the planning period in the volume of funds of the National Welfare Fund placed on deposits and bank accounts with the Central Bank of the Russian Federation, less than 7 percent of the volume of gross domestic product specified in the federal law on the federal budget for the next financial year and planning period.

2. Establish that the maximum shares of permitted financial assets in the total volume of allocated funds of the National Welfare Fund are:

the maximum share of debt obligations of foreign states is 100 percent;

the maximum share of debt obligations of foreign government agencies and central banks is 30 percent;

the maximum share of debt obligations of international financial organizations is 15 percent;

the maximum share of debt obligations and shares of Russian legal entities related to the implementation of projects (with the exception of projects implemented with the participation of the joint-stock company "Management Company of the Russian Direct Investment Fund" and the State Atomic Energy Corporation "Rosatom"), deposits and bank account balances in banks, credit organizations and the state corporation "Bank for Development and Foreign Economic Affairs (Vnesheconombank)", subordinated deposits in Russian credit institutions, preferred shares of credit institutions acquired in accordance with Part 3 of Article 4 of the Federal Law "On Additional Measures to Support the Financial System of the Russian Federation ", - no more than 40 percent of the total funds of the National Welfare Fund as of April 1, 2015, but not more than 1,738 billion rubles;

the maximum share of deposits and balances in bank accounts with the Central Bank of the Russian Federation is 100 percent;

the maximum share of debt obligations of legal entities is 50 percent;

the maximum share of shares of legal entities is 50 percent;

the maximum share of debt obligations and shares of Russian legal entities related to the implementation of projects implemented with the participation of the joint-stock company "Management Company of the Russian Direct Investment Fund", as well as shares of investment funds, the trust management of which is carried out by a management company operating in accordance with the Federal Law "On Russian Direct Investment Fund" - no more than 290 billion rubles;

the maximum share of debt obligations and shares of Russian legal entities related to the implementation of projects implemented with the participation of the State Atomic Energy Corporation Rosatom is no more than 290 billion rubles.

2.1. The share of funds of the National Welfare Fund placed in permitted financial assets related to the implementation of a separate project cannot exceed 40 percent of the total volume of financing of this project from all sources upon completion of each stage of the project implementation in accordance with the schedule for the implementation of the investment project provided for by the Rules by Government Decree of the Russian Federation dated August 25, 2017 N 1008 “On the procedure for monitoring and controlling the implementation of self-sustaining infrastructure projects implemented by legal entities whose financial assets contain funds from the National Welfare Fund and (or) pension savings held in trust by a state management company, on a repayable basis, the targeted use of funds from the National Welfare Fund when financing these projects and introducing amendments to certain acts of the Government of the Russian Federation" (hereinafter referred to as the project implementation schedule), except for the cases specified in paragraphs two, four and five of this paragraph.

The share of funds of the National Welfare Fund placed in securities of a Russian issuer related to the implementation of the project provided for in paragraph 1 of the list of self-sustaining infrastructure projects implemented by legal entities in whose financial assets funds of the National Welfare Fund and (or) pension savings held in trust are placed state management company, on a repayable basis, approved by Order of the Government of the Russian Federation of November 5, 2013 N 2044-r, cannot exceed 50 percent of the total volume of financing for this project from all sources.

At the same time, for projects financed from the funds of the National Welfare Fund, included in the list specified in paragraph two of this paragraph, with the exception of projects provided for in paragraphs 1 and this list, and having funds from the National Welfare Fund raised for the implementation of the project on the date of entry into force the force of Decree of the Government of the Russian Federation dated August 25, 2017 N 1008 “On the procedure for monitoring and controlling the implementation of self-sustaining infrastructure projects implemented by legal entities whose financial assets contain funds from the National Welfare Fund and (or) pension savings held in trust by the state management company, on a repayable basis, for the targeted use of funds from the National Welfare Fund when financing these projects and amending certain acts of the Government of the Russian Federation", this ratio of shares must be observed upon completion of each stage of the project in accordance with the project schedule, not completed at the time the entry into force of the specified resolution of the Government of the Russian Federation, but no later than one calendar year from the specified date.

The share of funds of the National Welfare Fund placed in permitted financial assets related to the implementation of a separate project may be over 40 percent, but not more than 80 percent of the total volume of financing of this project from all sources upon completion of each stage of the project according to the project implementation schedule in the event that, in order to fulfill obligations to return the entire amount of funds of the National Wealth Fund placed in permitted financial assets, highly liquid collateral is provided, the requirements for which are established by the Ministry of Finance of the Russian Federation.

The share of funds of the National Welfare Fund placed in permitted financial assets related to the financing of Vnesheconombank projects can be up to 80 percent of the total volume of financing of this project from all sources, while the requirement to provide highly liquid collateral does not apply to Vnesheconombank projects.

Failure by the project initiator to comply with the requirements for the provided security is grounds for suspending the placement of funds from the National Welfare Fund in permitted financial assets related to the implementation of the relevant project, and presenting to the project initiator a requirement for the early return of previously provided funds from the National Welfare Fund.

The maximum total volume of project financing and the maximum amount of funds from the National Welfare Fund allocated to finance the project for each project, with the exception of Vnesheconombank projects, are approved by the Government of the Russian Federation.

For Vnesheconombank projects, the maximum total amount of project financing and the maximum amount of funds from the National Wealth Fund allocated to finance the project are approved by the supervisory board of the state corporation "Bank for Development and Foreign Economic Affairs (Vnesheconombank)".

If a credit institution in which the project initiator has opened a separate bank account with restrictions (special regime) for conducting transactions on the account for accounting for funds of the National Welfare Fund, the project initiator is paid an amount of interest for the use of funds placed on such an account, which are temporarily not directed to project implementation:

if there is a balance of funds from the National Welfare Fund to be transferred to the project initiator in accordance with the project passport, the specified balance is reduced by the amount of the specified interest;

in the absence of a balance of funds from the National Welfare Fund to be transferred to the project initiator in accordance with the project passport, the project initiator, no later than 30 days from the date of crediting the amount of the specified interest to the bank account of the project initiator, repurchases the securities at the price of their acquisition by the credit institution and pays out the accumulated coupon income on the redemption date (for bonds). In this case, the cost of the repurchased securities, taking into account the multiple of their nominal value, must be no less than the amount of interest received by the project initiator.

It is allowed to transfer funds from the National Welfare Fund raised to finance the project provided for in paragraph 2 of the list specified in paragraph two of this paragraph, through the placement of preferred shares received in a special account, to other settlement accounts of the project initiator to reimburse expenses for the purposes provided for by the approved The Government of the Russian Federation with a project passport previously incurred by the project initiator at the expense of his own or borrowed funds, in an amount not exceeding the amount of the project initiator’s own funds previously sent to a special account.

The provisions of paragraphs nine to eleven of this paragraph do not apply to the projects provided for in paragraphs 1 and the list specified in paragraph two of this paragraph.

If a credit institution in which the project initiator specified in paragraphs 1 and the list specified in paragraph two of this paragraph opens a separate bank account with restrictions (special regime) for conducting transactions on the account for accounting for funds of the National Welfare Fund and the project initiator is paid the amount interest for the use of funds placed on such an account that are temporarily not allocated to the implementation of the project, then the balance of the subsidy and (or) contribution to the authorized capital provided from the federal budget for the implementation of the project is reduced by the amount of the specified interest.

3. Approve the attached Requirements for financial assets into which funds of the National Welfare Fund can be placed.

4. Establish that in order to manage the funds of the National Welfare Fund, the Ministry of Finance of the Russian Federation approves:

a) the normative currency structure of the funds of the National Welfare Fund, the procedure for bringing the actual currency structure of the funds of the National Welfare Fund in accordance with the normative one;

b) normative shares of permitted financial assets in the total volume of allocated funds of the National Welfare Fund within the requirements established by paragraph 2 of this resolution, the procedure for calculating the actual shares of permitted financial assets in the total volume of allocated funds of the National Welfare Fund and bringing them into line with the normative shares;

c) standards for the minimum and maximum periods before repayment of debt obligations of foreign states, debt obligations of foreign government agencies and central banks, debt obligations of international financial organizations, including those issued by securities, debt obligations of legal entities;

d) a list of foreign government agencies in whose debt obligations the funds of the National Welfare Fund can be placed;

e) standards for the minimum and maximum periods for placing funds of the National Welfare Fund on deposits in banks and credit institutions;

f) the procedure for calculating and crediting interest accrued on funds placed on accounts for the accounting of funds of the National Welfare Fund, providing for the use of permitted financial assets specified in paragraphs two to four of subparagraph "b" of paragraph 1 of this resolution for the calculation of interest, and other conditions bank account agreements;

g) the procedure for interaction with the Federal Treasury when conducting transactions on accounts for recording funds of the National Welfare Fund in the process of managing funds of the National Welfare Fund;

h) the procedure for interaction with the Federal Treasury when determining the terms of a bank account agreement in the process of managing funds of the National Welfare Fund.

5. The Federal Treasury shall conclude a bank account agreement with the Central Bank of the Russian Federation.

6. The Ministry of Finance of the Russian Federation shall submit to the Government of the Russian Federation, as part of reporting on the execution of the federal budget, quarterly and annual reports on the management of funds of the National Welfare Fund. Wherein:

information on the balances of funds in the accounts for the accounting of funds of the National Welfare Fund;

information on the volume of purchased and sold permitted foreign currency and the volume of permitted foreign currency placed in the accounts of the National Welfare Fund and in permitted financial assets;

information on calculated interest rates for the use of funds placed on accounts for the accounting of funds of the National Welfare Fund;

information on the estimated amounts of income for the use of funds placed on accounts for the accounting of funds of the National Welfare Fund;

names and main characteristics of the permitted financial assets in which the funds of the National Welfare Fund were placed;

information on income received from placing funds of the National Wealth Fund in permitted financial assets by type of permitted financial assets;

b) in the annual report, in addition to the information provided for in subparagraph “a” of this paragraph, the following is reflected:

information on the annual income received from the payment of interest for the use of funds placed on accounts for the accounting of funds of the National Welfare Fund;

information on the annual income received from the placement of funds of the National Welfare Fund in permitted financial assets by type of permitted financial assets.

7. On a monthly basis, no later than the 20th day of the month following the reporting month, the Ministry of Finance of the Russian Federation shall post on the website of the Ministry of Finance of the Russian Federation on the Internet information on the amount of assets of the National Welfare Fund at the beginning of the reporting month, information on the transfer of funds to the specified fund, their placement and use in the reporting month.

8. The Ministry of Finance of the Russian Federation, with the participation of the Ministry of Economic Development and Trade of the Russian Federation, the Federal Service for Financial Markets, the Ministry of Justice of the Russian Federation and the Central Bank of the Russian Federation, before October 1, 2008, develop and submit to the Government of the Russian Federation in the prescribed manner a draft Government resolution of the Russian Federation, defining:

a) the procedure for managing the funds of the National Wealth Fund, providing for the placement of its funds on deposits and in balances in bank accounts with banks and credit institutions, in debt obligations and shares of legal entities, as well as in shares (participatory interests) of investment funds;

b) requirements for financial assets specified in subparagraph “a” of this paragraph;

c) the procedure for exercising certain powers to manage the funds of the National Wealth Fund by specialized financial organizations, as well as the procedure for attracting them to exercise these powers;

d) requirements for specialized financial organizations specified in subparagraph “c” of this paragraph.

Requirements
to financial assets in which funds of the National Welfare Fund can be placed
(approved by Decree of the Government of the Russian Federation dated January 19, 2008 N 18)
(as amended by Decree of the Government of the Russian Federation dated October 15, 2008 N 766)

With changes and additions from:

July 22, September 28, 2009, April 1, July 26, August 24, 2010, September 10, 2012, January 25, November 5, December 19, 2013, June 7, July 31, August 22, 26, December 29, 2014, May 6, October 12, December 30, 2015, November 1, 2016, February 10, April 5, August 25, 2017, February 13, March 5, September 28, 2018

1. Requirements for financial assets in which funds of the National Welfare Fund can be placed and which are denominated in Russian rubles, US dollars, euros, pounds sterling, Australian dollars, Canadian dollars, Swiss francs and yen (hereinafter referred to as permitted financial assets), include: requirements for debt obligations of foreign states, debt obligations of foreign government agencies and central banks, debt obligations of international financial organizations, including those issued by securities, debt obligations of legal entities (hereinafter referred to as debt obligations), shares of legal entities and shares of investment funds, trust which are managed by a management company operating in accordance with the Federal Law “On the Russian Direct Investment Fund”, as well as requirements for deposits and balances on bank accounts in banks, credit institutions and the state corporation “Bank for Development and Foreign Economic Affairs (Vnesheconombank)”.

2. Debt obligations of foreign states in which funds of the National Welfare Fund can be placed include debt obligations in the form of securities of the governments of Australia, Austria, Belgium, Great Britain, Germany, Denmark, Ireland, Spain, Canada, Luxembourg, the Netherlands, the USA, Finland , France, Switzerland, Sweden and Japan. The placement of funds from the National Welfare Fund in debt obligations of other foreign states is permitted on the basis of separate decisions of the Government of the Russian Federation.

3. Debt obligations of foreign government agencies, in which funds of the National Welfare Fund can be placed, include debt obligations in the form of securities of organizations (legal entities) that were created in foreign countries, specified in paragraph 2 of this document, to perform functions of providing state services, management of state property or lending to certain sectors of the economy. These organizations (legal entities) must be accountable to the government authorities of the foreign states in which they are created. The list of foreign government agencies in whose debt obligations the funds of the National Welfare Fund can be placed is approved by the Ministry of Finance of the Russian Federation in agreement with the Central Bank of the Russian Federation.

4. Debt obligations of foreign central banks in which funds of the National Welfare Fund can be placed include debt obligations in the form of securities of central banks of issue of foreign states specified in paragraph 2 of this document.

5. Debt obligations of international financial organizations in which funds of the National Welfare Fund can be placed include debt obligations (including those issued by securities) of the following financial institutions:

a) Asian Development Bank (ADB);

b) Development Bank of the Council of Europe (Council of Europe Development Bank, CEB);

c) European Bank for Reconstruction and Development (EBRD);

d) European Investment Bank (EIB);

e) Inter-American Development Bank (IADB);

f) International Finance Corporation (IFC);

g) International Bank for Reconstruction and Development (IBRD);

h) Nordic Investment Bank (NIB).

6. Debt obligations must meet the following requirements:

a) foreign issuers of debt obligations must have a long-term credit rating of not lower than “AA-” according to the classification of the rating agencies Fitch Ratings or Standard & Poor’s or not lower than “Aa3” "according to the classification of the rating agency Moody's Investors Service. If a foreign issuer of debt obligations is assigned different long-term creditworthiness ratings by these agencies, the lowest of the assigned long-term creditworthiness ratings is accepted as the long-term creditworthiness rating. These requirements do not apply to debt obligations of foreign states in which funds of the National Welfare Fund are placed on the basis of individual decisions of the Government of the Russian Federation in an aggregate amount not exceeding 10 percent of the total volume of allocated funds of the National Welfare Fund;

b) Russian issuers of debt obligations related to the implementation of self-sustaining infrastructure projects, the list of which is approved by the Government of the Russian Federation (hereinafter referred to as projects), must have a long-term credit rating of at least “BB+” according to the classification of the Fitch Ratings rating agencies ) or "Standard & Poor's" or not lower than the "Bal" level according to the classification of the rating agency "Moody's Investors Service". If the Russian issuer of these debt obligations is assigned different long-term creditworthiness ratings by the above agencies, the lowest of the assigned ones is accepted as the long-term creditworthiness rating. Non-application of requirements for the long-term credit rating of Russian issuers of debt obligations related to the implementation of projects is permitted on the basis of separate decisions of the Government of the Russian Federation;

c) Russian issuers of debt obligations not related to the implementation of projects must have a long-term credit rating of at least "BBB-" according to the classification of the rating agencies Fitch Ratings or Standard & Poor's ) or not lower than the "BaaZ" level according to the classification of the rating agency "Moody's Investors Service". If the Russian issuer of these debt obligations is assigned different long-term creditworthiness ratings by the above agencies, the lowest of the assigned ones is accepted as the long-term creditworthiness rating;

d) the decision on the issue and prospectus of debt obligations of a Russian issuer related to the implementation of projects must contain information about the project for the purpose of which borrowings are being made;

f) repayment of debt obligations cannot be carried out in parts, with the exception of debt obligations of Russian issuers related to the implementation of projects;

g) the terms of issue and circulation of debt obligations do not provide for the issuer’s right to repurchase (repay) them ahead of schedule. The right of the owner of debt obligations to present them early for redemption (repayment) by the issuer can only be provided for debt obligations related to the implementation of projects;

h) the conditions for the issuance and circulation of debt obligations of Russian issuers related to the implementation of projects may provide for a deferment of interest payments;

i) debt obligations meet the requirements for the minimum and maximum periods before their repayment, established by the Ministry of Finance of the Russian Federation;

j) the denomination of debt obligations is expressed in Russian rubles, US dollars, euros, pounds sterling, Australian dollars, Canadian dollars, Swiss francs and yen and is fixed, with the exception of debt obligations of foreign countries, the denomination of which varies depending on the level of inflation. Payments on debt obligations are made in the par value currency, with the exception of debt obligations of Russian issuers related to the implementation of projects, the par value of which is denominated in foreign currency and payments for which can be made in Russian rubles at the exchange rate

k) the volume of issue of debt obligations in circulation is at least:

1 billion rubles - for debt obligations denominated in Russian rubles;

1 billion US dollars - for debt instruments denominated in US dollars;

1 billion euros - for debt instruments denominated in euros;

0.5 billion pounds sterling - for debt instruments denominated in pounds sterling;

1 billion Australian dollars - for debt instruments denominated in Australian dollars;

C$1 billion for debt denominated in Canadian dollars;

1 billion Swiss francs - for debt instruments denominated in Swiss francs;

100 billion yen - for debt instruments denominated in yen;

l) issues of debt obligations of foreign issuers are not issues intended for private (non-public) placement (for debt obligations of Russian issuers, private (non-public) placement is allowed);

m) debt obligations cannot be limited in circulation;

o) payments of income on debt obligations of Russian issuers related to the implementation of projects, the nominal value of which is expressed in Russian rubles, must ensure a return not lower than the index value

Information about changes:

By Decree of the Government of the Russian Federation of December 26, 2014 N 1547, paragraph 6 was supplemented with subparagraph "p"

n) payment of income on debt obligations of Russian issuers related to the implementation of projects, the nominal value of which is expressed in foreign currency, must ensure a return not lower than the value of the consumer price index calculated in a foreign state (group of foreign states), by the central bank (organization performing the functions of the central bank) which issues the relevant currency, for the last calendar year preceding the beginning of the period for calculating coupon income, for which the official publication by the authorized body of the relevant foreign state (group of foreign states) was carried out, increased by one percentage point;

7. subparagraph "a" of paragraph 6 of this document, below the level established by this document, funds of the National Welfare Fund cannot be additionally placed in debt obligations of this issuer, and previously acquired debt obligations of this issuer may be held until they are sold or redeemed, subject to the availability of the issuer's long-term credit rating is not lower than level "A" according to the classification of the rating agencies "Fitch Ratings" or "Standard & Poor's" or not lower than level "A2" according to the classification of the rating agency "Moody's Investors" Service" (Moody's Investors Service).

If the long-term credit rating of the issuer of debt obligations specified in subparagraph "b" of paragraph 6 of this document is reduced below the level established by this document, funds of the National Welfare Fund cannot be additionally placed in the debt obligations of this issuer, and previously acquired debt obligations of this issuer may held until their sale or repayment, provided that the issuer has a long-term credit rating of at least “BB-” according to the classification of the rating agencies Fitch-Ratings or Standard & Poor’s or not lower level "VAZ" according to the classification of the rating agency "Moody's Investors Service".

If the long-term credit rating of the issuer of debt obligations specified in subparagraph "c" of paragraph 6 of this document is reduced below the level established by this document, funds of the National Welfare Fund cannot be additionally placed in the debt obligations of this issuer, and previously acquired debt obligations of this issuer may held until their sale or repayment, provided that the issuer has a long-term credit rating of not lower than “BB+” according to the classification of the rating agencies Fitch Ratings or Standard & Poor’s or not lower level "Bal" according to the classification of the rating agency "Moody's Investors Service".

In the event of a violation of the requirements established by this paragraph for the long-term credit rating of the issuer of debt obligations, in the presence of which the debt obligations of this issuer can be held until they are sold or repaid, such debt obligations are subject to sale within 3 months from the date of the violation.

These requirements do not apply to debt obligations of foreign states into which funds of the National Welfare Fund are placed on the basis of individual decisions of the Government of the Russian Federation in an aggregate amount not exceeding 10 percent of the total volume of allocated funds of the National Welfare Fund.

These requirements do not apply to debt obligations of Russian issuers related to the implementation of projects in which funds from the National Welfare Fund are allocated on the basis of separate decisions of the Government of the Russian Federation.

8. Shares of legal entities must meet the following requirements:

a) shares of legal entities are included in the quotation list of at least one stock exchange;

b) shares of foreign issuers are included in the lists of securities used to calculate the MSCI World Index and FTSE All-World Index stock indices;

c) shares of Russian issuers are included in the lists of securities used to calculate the stock indices "RTS Index" or "MICEX Index";

Information about changes:

By Decree of the Government of the Russian Federation of November 1, 2016 N 1120, paragraph 8 was supplemented with subparagraph "e"

f) the decision on the issue and prospectus of shares of a Russian issuer related to the implementation of projects must contain information about the project for the purpose of which the shares are being issued.

9. If the acquired shares of legal entities cease to comply with any of the requirements established by paragraph 8 of this document, such shares are subject to sale within 3 months from the date of occurrence of the discrepancy.

Information about changes:

By Decree of the Government of the Russian Federation of November 5, 2013 N 989, the requirements were supplemented with clause 9.1

9.1. When making decisions on placing funds of the National Welfare Fund in securities of Russian issuers related to the implementation of projects, priority is given to the acquisition of bonds.

Information about changes:

By Decree of the Government of the Russian Federation of November 1, 2016 N 1120, the requirements were supplemented with clause 9.2

9.2. It is not permitted to place funds of the National Welfare Fund in securities of a Russian issuer related to the implementation of the same project in excess of the maximum amount of funds approved by the Government of the Russian Federation allocated to finance this project from the funds of the National Welfare Fund.

Information about changes:

The requirements were supplemented by clause 9.3 from February 27, 2018 - Decree of the Government of the Russian Federation of February 13, 2018 N 154

9.3. The acquisition of shares of investment funds, the trust management of which is carried out by a management company operating in accordance with the Federal Law "On the Russian Direct Investment Fund", is carried out on the basis of separate decisions of the Government of the Russian Federation.

10. Funds of the National Welfare Fund can be placed on deposits and bank accounts in banks, credit institutions and the state corporation "Bank for Development and Foreign Economic Affairs (Vnesheconombank)".

11. When placing funds of the National Wealth Fund on deposits and bank accounts in banks and credit institutions, the following requirements must be met:

a) the bank or credit institution must have a long-term credit rating not lower than “AA-” according to the classification of the rating agencies Fitch-Ratings or Standard & Poor’s or not lower than “Aa3” "according to the classification of the rating agency Moody's Investors Service. If a bank or credit organization is assigned different long-term creditworthiness ratings by the specified agencies, then the lowest of the assigned ones is accepted as the long-term creditworthiness rating;

b) the standards for the minimum and maximum periods for placing funds of the National Welfare Fund on deposits in banks and credit institutions, established by the Ministry of Finance of the Russian Federation, are mandatory;

Information about changes:

By Decree of the Government of the Russian Federation of December 29, 2014 N 1592, paragraph 11 was supplemented with subparagraph “c”

c) the requirements of this paragraph do not apply when placing funds of the National Welfare Fund on subordinated deposits in Russian credit institutions for the purpose of financing projects.

Information about changes:

By Decree of the Government of the Russian Federation of December 29, 2014 N 1592, the requirements were supplemented with clause 11.1

11.1. Funds of the National Welfare Fund are placed on subordinated deposits in Russian credit institutions subject to the following conditions:

a) the volume of own funds (capital) of a Russian credit organization is at least 100 billion rubles;

b) in relation to a Russian credit organization, there is no prohibition of the Central Bank of the Russian Federation on attracting deposits of funds from individuals and opening bank accounts of individuals in accordance with Part 3 of Article 48 of the Federal Law “On Insurance of Deposits in Banks of the Russian Federation”;

c) the Russian credit institution has experience in financing at least 10 investment projects over the past 3 years in the amount of at least 3 billion rubles each;

d) funds can be placed on subordinated deposits in Russian credit institutions in Russian rubles, US dollars, euros, pounds sterling, Australian dollars, Canadian dollars, Swiss francs or yen. Payments on subordinated deposits in Russian credit institutions are permitted both in the nominal currency and in Russian rubles at the rate of the relevant foreign currency established by the Central Bank of the Russian Federation on the date of the relevant payment;

e) the agreement on placing funds on a subordinated deposit in a Russian credit organization complies with the requirements of the Central Bank of the Russian Federation for including a subordinated deposit in the sources of additional capital of credit organizations and contains the following provisions:

the placement of funds is carried out for the purpose of financing projects at interest rates equal to the interest rate on subordinated deposits on which funds of the National Welfare Fund are placed;

The credit institution undertakes to provide to the Ministry of Finance of the Russian Federation and the Ministry of Economic Development of the Russian Federation on a monthly basis, no later than the 10th day of the month following the reporting month, information on the allocation of funds raised for subordinated deposits to finance projects (including names of projects, volumes and terms of project financing), as well as information on the use of funds not allocated as of the reporting date to finance projects;

a mandatory condition is necessary to exchange the subordinated deposit for ordinary shares of the relevant credit institutions in cases provided for by the methodology for determining the amount of equity (capital) of credit institutions, approved by the Central Bank of the Russian Federation, in order to include subordinated deposits in the sources of additional capital of credit institutions;

the credit institution undertakes to purchase securities of Russian issuers related to the implementation of projects, subject to the issuer submitting these securities to the credit institution and the Ministry of Finance of the Russian Federation a copy of the agreement on the presentation of reports and other additional information on the progress of the implementation of the self-sustaining infrastructure project and on the use of funds from the National Fund welfare for its financing, signed by the issuer with the federal executive body authorized by the Government of the Russian Federation to monitor the implementation of the project and the targeted use of funds from the National Welfare Fund, as well as with the federal executive body authorized by the Government of the Russian Federation to perform the functions of a coordinating body responsible for monitoring and control of the progress of implementation of self-sustaining infrastructure projects implemented by legal entities in whose financial assets funds of the National Welfare Fund and (or) pension savings are placed in trust management of the state management company, on a repayable basis, the targeted use of funds of the National Welfare Fund when financing the above projects;

the credit institution undertakes to purchase securities of Russian issuers related to the implementation of projects, subject to the signing by it with the issuer of an agreement on the repurchase by the issuer of the issuer's securities at the price of their acquisition by the credit institution and payment of the accumulated coupon income on the date of repurchase (for bonds) in the event of a violation by the issuer established by the Rules for placing funds of the National Welfare Fund in securities of Russian issuers related to the implementation of self-sustaining infrastructure projects, approved by Decree of the Government of the Russian Federation dated November 5, 2013 N 990 “On the procedure for placing funds of the National Welfare Fund in securities of Russian issuers related to the implementation self-sustaining infrastructure projects", the deadline for directing funds raised from the National Welfare Fund to finance the project. In this case, the cost of the repurchased securities, taking into account the multiple of their nominal value, must be no less than the amount of funds of the National Welfare Fund not allocated by the issuer to finance the project;

the credit institution undertakes to purchase securities of Russian issuers related to the implementation of projects, subject to the issuer entering into an agreement with a credit institution in which, for the purpose of ensuring control over the intended use of funds from the National Welfare Fund, a separate bank account has been opened with restrictions (special regime) on transactions on the account ( hereinafter - special account), agreement on banking support of the project;

the credit institution undertakes to purchase securities of Russian issuers related to the implementation of projects, subject to the signing by it with the issuer of an agreement on the repurchase by the issuer of the issuer's securities at the price of their acquisition by the credit institution and payment of the accumulated coupon income on the date of repurchase (for bonds) in the event of receipt by the issuer the amount of interest for the use of funds temporarily not allocated to the implementation of the project and placed in a special account, in the absence of a balance of funds from the National Welfare Fund, subject to transfer to the issuer in accordance with the project passport. In this case, the cost of the repurchased securities, taking into account the multiple of their nominal value, must be no less than the amount of interest paid to the issuer by the credit institution in which the project initiator opened a special account to account for the funds of the National Welfare Fund;

the credit institution undertakes to purchase securities of Russian issuers related to the implementation of projects, subject to the completion of all stages of the project, which are specified in the project implementation schedule, provided for by the Rules for monitoring and control of the implementation of self-sustaining infrastructure projects implemented by legal entities in whose financial assets are placed funds of the National Welfare Fund and (or) pension savings held in trust by a state management company, on a repayable basis, for the targeted use of funds of the National Welfare Fund when financing these projects, approved by Decree of the Government of the Russian Federation of August 25, 2017 N 1008 “On the procedure monitoring and control over the implementation of self-sustaining infrastructure projects implemented by legal entities in whose financial assets funds of the National Welfare Fund and (or) pension savings held in trust by a state management company are placed, on a repayable basis, the targeted use of funds of the National Welfare Fund when financing the above projects and amendments to certain acts of the Government of the Russian Federation", and in accordance with this schedule are subject to completion before the acquisition of securities of Russian issuers in the appropriate amount;

the credit institution undertakes to enter into an agreement with the issuer on the repurchase by the issuer of the issuer's securities at the price of their acquisition by the credit institution in full and payment of the accumulated coupon income on the date of repurchase (for bonds) in the event of a violation by the issuer of the provisions of clause 6.1 of the Rules for placing funds of the National Welfare Fund in securities securities of Russian issuers related to the implementation of self-sustaining infrastructure projects approved by Decree of the Government of the Russian Federation of November 5, 2013 N 990;

The credit institution undertakes to purchase securities of Russian issuers related to the implementation of projects, subject to the compliance of decisions on the issue and prospectuses of these securities with the requirements established, respectively, by subparagraph “d” of paragraph 6 and subparagraph “e” of paragraph 8 of these Requirements.

The requirements established by paragraphs eight to eleven of this subclause do not apply to the projects specified in paragraphs 1 and the list of self-sustaining infrastructure projects implemented by legal entities in whose financial assets funds of the National Welfare Fund and (or) pension savings held in trust are placed state management company, on a repayable basis, approved by order of the Government of the Russian Federation of November 5, 2013 N 2044-r;

f) payments of income on subordinated deposits in Russian credit institutions in Russian rubles must ensure a return not lower than the minimum of two values:

the value of the consumer price index for goods and services in the Russian Federation (December to December), published on the official website of the federal executive body, which carries out the functions of developing state policy and legal regulation in the field of official statistical accounting, the formation of official statistical information on social, economic, demographic, environmental and other social processes in the Russian Federation, in the information and telecommunications network "Internet", for the last calendar year preceding the period of accrual of interest income for which the said executive authority made official publication, increased by one percentage point;

the interest rate established by the Central Bank of the Russian Federation when conducting deposit operations at fixed interest rates;

g) payments of income on subordinated deposits in Russian credit institutions in foreign currency must ensure a return not lower than the value of the consumer price index calculated in the foreign state (group of foreign states) whose central bank (organization performing the functions of the central bank) issues the relevant currency, for the last calendar year preceding the beginning of the period for calculating interest income, for which the official publication by the authorized body of the relevant foreign state (group of foreign states) was made, increased by one percentage point;

h) the maximum period for placing funds on subordinated deposits in Russian credit institutions is 30 years;

i) an agreement on placing funds on a subordinated deposit in a Russian credit organization is concluded between the relevant Russian credit organization and the Federal Treasury in agreement with the Ministry of Finance of the Russian Federation.

11.2. Funds of the National Welfare Fund can be placed on subordinated deposits in Russian credit institutions in a total amount not exceeding 10 percent of the funds of the National Welfare Fund.

12. When placing funds of the National Welfare Fund on deposits in the state corporation "Bank for Development and Foreign Economic Affairs (Vnesheconombank)", the following requirements must be met:

a) funds can be placed on deposits in Russian rubles, US dollars, euros and pounds sterling;

b) the maximum permissible total amount within which funds can be placed on deposits in Russian rubles and foreign currency, with the exception of deposits placed in accordance with subclause “clause 1” of this clause, is 955 billion rubles.

At the same time, up to 175 billion rubles can be placed on deposits, the amounts, terms and other essential conditions for which are determined by the Ministry of Finance of the Russian Federation.

Up to 410 billion rubles can be placed on deposits:

in accordance with paragraph 1 of part 1 of article 4 of the Federal Law “On additional measures to support the financial system of the Russian Federation” (hereinafter referred to as the Federal Law) subject to the following requirements:

from January 1, 2020 - at a rate equal to the value of the consumer price index for goods and services in the Russian Federation (December to December), published on the official website of the federal executive body exercising the functions of developing state policy and legal regulation in the field official statistical accounting, the formation of official statistical information on social, economic, demographic, environmental and other social processes in the Russian Federation, on the Internet information and telecommunications network, for the last calendar year preceding the period for calculating interest income, for which official publication was carried out by the specified by an executive authority, increased by 1 percentage point, but not lower than 6.25 percent per annum and not higher than the maximum interest rate established by the Central Bank of the Russian Federation on a subordinated loan (deposit, loan, bond issue) in rubles, reduced by 0.25 percentage points;

in accordance with paragraph 2 of part 1 of article 4

Payment of interest on the placement of funds is carried out quarterly at the following interest rates:

from January 1, 2021 - at a rate equal to the value of the consumer price index for goods and services in the Russian Federation (December to December), published on the official website of the federal executive body exercising the functions of developing state policy and legal regulation in the field official statistical accounting, the formation of official statistical information on social, economic, demographic, environmental and other social processes in the Russian Federation, on the Internet information and telecommunications network, for the last calendar year preceding the period for calculating interest income, for which official publication was carried out by the specified by an executive authority, increased by 1 percentage point, but not lower than 7.25 percent per annum and not higher than the maximum interest rate established by the Central Bank of the Russian Federation on a subordinated loan (deposit, loan, bond issue) in rubles, reduced by 0.25 percentage points.

Up to 40 billion rubles can be placed on deposits in accordance with Part 1 of Article 6.2 of the Federal Law, subject to the following requirements:

In the event of the return by the state corporation "Bank for Development and Foreign Economic Affairs (Vnesheconombank)" of deposits placed in accordance with Part 1 of Article 6.2 of the Federal Law, funds within the volume of returned deposits may be placed on deposits for the purpose of providing the state corporation "Bank for Development and Foreign Economic Affairs (Vnesheconombank)" loans to the joint-stock company "DOM.RF" subject to the following requirements:

Payment of interest on the placement of funds for the entire period is carried out quarterly at a rate of 6.25 percent per annum until 2020 inclusive, and in the period from 2021 to 2048 - at a rate equal to the value of the consumer price index for goods and services in the Russian Federation (December by December), published on the official website of the federal executive body, which carries out the functions of developing state policy and legal regulation in the field of official statistical accounting, generating official statistical information on social, economic, demographic, environmental and other social processes in the Russian Federation, in the information and telecommunications network "Internet", for the last calendar year preceding the period of accrual of interest income for which the said executive authority made an official publication, increased by 1 percentage point.

Up to 30 billion rubles can be placed on deposits subject to the following requirements:

Payment of interest on the placement of funds during the entire period is carried out quarterly at a rate of 6.25 percent per annum.

The amounts and timing of placing funds on deposits in accordance with paragraphs three to twenty-two of this subclause are determined by the Ministry of Finance of the Russian Federation, taking into account the requirements established by this clause.

Up to 300 billion rubles can be placed on deposits subject to the following requirements:

placement of funds on deposits is carried out in order to finance Vnesheconombank's projects in the real sector of the economy, implemented by Russian organizations;

The Ministry of Finance of the Russian Federation has submitted a positive conclusion from the state corporation "Bank for Development and Foreign Economic Affairs (Vnesheconombank)" on the feasibility of financing the Vnesheconombank project in the form in accordance with Appendix No. 2 to the Rules for assessing the feasibility of financing investment projects using the funds of the National Wealth Fund and (or) pension funds savings held in trust by a state management company on a repayable basis, approved by Decree of the Government of the Russian Federation dated November 5, 2013 N 991 “On the procedure for assessing the feasibility of financing investment projects from the funds of the National Welfare Fund and (or) pension savings held by in trust management of a state management company, on a repayable basis" (hereinafter referred to as the Project Evaluation Rules), in terms of the composition of information applicable to Vnesheconombank projects;

financing conditions (purpose, currency, amount, term, interest rate and deadline for the state corporation "Bank for Development and Foreign Economic Affairs (Vnesheconombank)" to send funds to the project) of each Vnesheconombank project with the involvement of funds from the National Welfare Fund are approved by the supervisory board of the state corporation "Bank" development and foreign economic activity (Vnesheconombank)" taking into account the requirements specified in paragraphs twenty-nine - thirty-three and paragraph thirty-five of this subclause;

The currency and amount of the deposit, the interest rate on deposits, the period for placing funds on each deposit and the frequency of interest payments are determined by the Ministry of Finance of the Russian Federation in accordance with applications sent by the state corporation "Bank for Development and Foreign Economic Affairs (Vnesheconombank)" with the attachment of passports of Vnesheconombank projects in the form in accordance with Appendix No. 3 to the Rules for the Evaluation of Projects (regarding the composition of information applicable to Vnesheconombank projects) and copies of extracts from the minutes of meetings of the supervisory board of the state corporation "Bank for Development and Foreign Economic Affairs (Vnesheconombank)", containing the conditions for financing Vnesheconombank projects, taking into account the requirements, specified in paragraphs twenty-nine - thirty-three and paragraph thirty-five of this subclause;

the amount of each deposit corresponds to the amount specified in the corresponding application of the state corporation "Bank for Development and Foreign Economic Affairs (Vnesheconombank)", and is determined taking into account the provisions of paragraph 2.1 of the Decree of the Government of the Russian Federation of January 19, 2008 No. 18 "On the procedure for managing the funds of the National Welfare Fund ";

funds of the National Welfare Fund are credited to the deposit in separate amounts (tranches) equal to the amount of use by the borrower of the Vnesheconombank loan funds to finance the corresponding project;

the term of each deposit corresponds to the period specified in the corresponding application of the state corporation "Bank for Development and Foreign Economic Affairs (Vnesheconombank)", but cannot exceed 30 years;

the interest rate on deposits in Russian rubles in terms of funds actually placed in Vnesheconombank projects should provide a return of 6 percent per annum or at a level equal to the value of the consumer price index for goods and services in the Russian Federation (December to December), published on the official the website of the federal executive body, which carries out the functions of developing state policy and legal regulation in the field of official statistical accounting, generating official statistical information on social, economic, demographic, environmental and other social processes in the Russian Federation, on the information and telecommunications network "Internet" ", for the last calendar year preceding the period of accrual of interest income for which the said executive authority made an official publication, increased by one percentage point, unless a different level of interest rate is established by a decision of the Government of the Russian Federation;

the interest rate on deposits in foreign currency must ensure a return not lower than the value of the consumer price index calculated in the foreign state (group of foreign states) whose central bank (organization performing the functions of the central bank) issues the relevant currency for the last calendar year preceding the beginning of the period for accrual of interest income for which the official publication by the authorized body of the relevant foreign state (group of foreign states) was made, increased by one percentage point;

the deposit agreement contains a provision on the acceptance by the state corporation "Bank for Development and Foreign Economic Affairs (Vnesheconombank)" of an obligation in the event of non-direction of funds from the National Welfare Fund to finance a Vnesheconombank project on the date of their placement on deposit, to return the funds no later than the business day following the specified date;

interest on the deposit is paid at least once a year;

the deposit agreement contains a provision on the acceptance by the state corporation "Bank for Development and Foreign Economic Affairs (Vnesheconombank)" of an obligation to submit information about the direction to the Ministry of Finance of the Russian Federation and the Ministry of Economic Development of the Russian Federation quarterly, no later than the 10th working day of the month following the reporting quarter funds raised on deposit to finance Vnesheconombank projects (including the name of the project, the volume and conditions of financing the project, the date of sending funds to finance the project), as well as ensure control of the intended use of these funds and quarterly, no later than the 10th working day of the month following for the reporting quarter, send to the Ministry of Finance of the Russian Federation a report on the intended use of these funds.

In order to ensure control over the limitation of the volume of deposits provided for in paragraph twenty-four of this subclause, the equivalent of the amount of deposits placed in foreign currency for the purpose of financing Vnesheconombank projects in Russian rubles is calculated at the rate of the corresponding foreign currency to the Russian ruble established by the Central Bank of the Russian Federation on the dates of placement deposits in foreign currency.

Early return of funds is allowed with the consent of the state corporation "Bank for Development and Foreign Economic Affairs (Vnesheconombank)", while interest on the placement of funds is paid for the actual period of time the funds are on deposit;

c) placement of funds on deposits is carried out by the Federal Treasury by decision of the Ministry of Finance of the Russian Federation;

c.1) funds of the National Welfare Fund may be placed on deposits in US dollars in accordance with paragraph 4 of Article 96.10 of the Budget Code of the Russian Federation in a total amount not exceeding 7 percent of the funds of the National Welfare Fund, subject to the following conditions:

the deposit agreement contains provisions on the impossibility of demanding early return of the deposit or part thereof, as well as early payment of interest for the use of the deposit, early termination of the deposit agreement or early termination of obligations under the agreement;

the level of interest rate is similar to the level of interest rates on deposits in US dollars previously placed from the National Welfare Fund in the state corporation "Bank for Development and Foreign Economic Affairs (Vnesheconombank)";

interest is paid at least once a year;

the deposit agreement contains a provision that in the event of liquidation of the state corporation “Bank for Development and Foreign Economic Affairs (Vnesheconombank)”, claims on such a deposit are satisfied after satisfying the claims of all other creditors;

the term of the deposit is not less than 5 years and not more than 20 years;

early return of the deposit (part of it) at the initiative of the state corporation "Bank for Development and Foreign Economic Affairs (Vnesheconombank)" can be carried out no earlier than 5 years from the date of inclusion of the deposit in the sources of additional capital of the state corporation "Bank for Development and Foreign Economic Affairs (Vnesheconombank)" ";

The deposit agreement contains a condition that if the value of the basic capital adequacy ratio reaches a level below 2 percent, unpaid interest on the deposit is not reimbursed or accumulated due to the termination, in whole or in part, of the obligations of the state corporation "Bank for Development and Foreign Economic Affairs (Vnesheconombank)" " to pay the amount of accrued interest on the deposit, while the obligation of the state corporation "Bank for Development and Foreign Economic Affairs (Vnesheconombank)" to return the amount of the principal debt on the deposit is terminated in whole or in part (in the event of losses at the state corporation "Bank for Development and Foreign Economic Affairs ( Vnesheconombank)", the consequence of which is a decrease in the value of the basic capital adequacy standard to a level below 2 percent, subject to the use of retained earnings and the reserve fund to cover losses of the state corporation "Bank for Development and Foreign Economic Affairs (Vnesheconombank)";

e) on the basis of separate decisions of the Government of the Russian Federation, changes may be made to agreements on the placement of funds of the National Wealth Fund on deposits, concluded in accordance with subclause “c.1” of this clause, providing for:

setting the interest rate at a level not lower than 0.25 percent per annum on deposits in US dollars and not lower than 2.86 percent per annum on deposits in Russian rubles;

establishing a grace period for interest payments for up to 3 years, during which interest is accrued, not capitalized and paid on the day the period ends.

13. The Ministry of Finance of the Russian Federation has the right to establish additional requirements for permitted financial assets within the limits of the requirements provided for in this document.

14. The list of transactions with permitted financial assets, with the exception of deposits in banks, credit institutions and the state corporation "Bank for Development and Foreign Economic Affairs (Vnesheconombank)", includes permitted transactions, which include the purchase and sale of permitted financial assets.

15. The Ministry of Finance of the Russian Federation has the right to establish the procedure for conducting transactions with permitted financial assets, provided for in paragraphs 10 and this document.

Management Goals

The goals of managing the funds of the National Welfare Fund are to ensure the safety of the Fund’s assets and a stable level of income from its placement in the long term. Management of the Fund's assets for these purposes allows for the possibility of obtaining negative financial results in the short term.

Managment structure

The funds of the National Welfare Fund are managed by the Ministry of Finance of the Russian Federation in the manner established by the Government of the Russian Federation. Certain powers to manage the funds of the National Welfare Fund may be exercised by the Central Bank of the Russian Federation. In the case of attracting specialized financial organizations to exercise certain powers to manage the funds of the National Welfare Fund, the procedure for attracting these organizations, as well as the requirements for them, are established by the Government of the Russian Federation.

The funds of the National Welfare Fund can be managed in the following ways (both individually and simultaneously):

1) by purchasing foreign currency at the expense of the Fund and placing it on accounts for recording funds of the National Welfare Fund in foreign currency (US dollars, euros, pounds sterling) in the Central Bank of the Russian Federation. For the use of funds in these accounts, the Central Bank of the Russian Federation pays interest established by the bank account agreement;

2) by placing the Fund’s funds in foreign currency and financial assets denominated in Russian rubles and permitted foreign currency (hereinafter referred to as permitted financial assets).

The Ministry of Finance of the Russian Federation manages the funds of the National Welfare Fund in accordance with the first method, that is, by placing funds in foreign currency accounts with the Central Bank of the Russian Federation as follows. According to the procedure for calculating and crediting interest accrued to accounts for accounting for funds of the National Welfare Fund in foreign currency, approved by the Ministry of Finance of the Russian Federation, the Bank of Russia pays interest on the balances on these accounts equivalent to the yield of indices formed from financial assets in which the Fund’s funds can be placed national welfare, the requirements for which are approved by the Government of the Russian Federation.

Investment rules

The Government of the Russian Federation establishes maximum shares of permitted financial assets in the total volume of allocated funds of the National Welfare Fund. In order to improve the efficiency of managing the funds of the National Welfare Fund, the Ministry of Finance of the Russian Federation is authorized to approve the regulatory shares of permitted financial assets in the total volume of allocated funds of the National Welfare Fund within the limits of the corresponding shares established by the Government of the Russian Federation.

Permitted financial assets as defined by the Budget Code of the Russian Federation	Limit shares established by the Government of the Russian Federation	Regulatory shares approved by the Ministry of Finance of Russia

debt obligations of foreign countries
debt obligations of foreign government agencies and central banks
debt obligations of international financial organizations, including those issued by securities
deposits and balances on bank accounts in banks and credit institutions
deposits in the state corporation “Bank for Development and Foreign Economic Affairs (Vnesheconombank)”
deposits and balances on bank accounts with the Central Bank of the Russian Federation
debt obligations of legal entities
shares of legal entities and shares (participatory interests) of investment funds

The Government of the Russian Federation has established the following requirements for the specified financial assets:

1. funds of the National Welfare Fund may be placed in debt obligations in the form of securities of foreign states, foreign government agencies and central banks of the following countries:

Austria;

Belgium;

Great Britain;

Germany;

Spain;

Luxembourg;

Netherlands;

Finland;

France;

2. debt obligations must meet the following requirements:

Foreign issuers of debt obligations must have a long-term credit rating of no lower than “AA-” according to the classification of rating agencies Fitch Ratings or Standard & Poor’s, or no lower than “Aa3” according to classification of the rating agency Moody's Investors Service. If a foreign issuer of debt obligations is assigned different long-term creditworthiness ratings by the specified agencies, then the lowest of the assigned ones is accepted as the long-term creditworthiness rating;

Russian issuers of debt obligations must have a long-term credit rating of no lower than "BBB-" according to the classification of rating agencies Fitch Ratings or Standard & Poor's, or no lower than "BaaZ" according to classification of the rating agency Moody's Investors Service. If the Russian issuer of debt obligations is assigned different long-term creditworthiness ratings by the above agencies, then the lowest of the assigned ones is accepted as the long-term creditworthiness rating;

The maturity dates of debt issues are fixed, the terms of issue and circulation do not provide for the issuer's right to repurchase (repay) them ahead of schedule;

The terms of issue and circulation of debt obligations of foreign issuers do not provide for the right of the owner of debt obligations to present them early for redemption (redemption) by the issuer;

The standards for the minimum and maximum periods before repayment of debt issues established by the Ministry of Finance of the Russian Federation are mandatory;

The rate of coupon income paid on coupon debt obligations, as well as the denominations of debt obligations, are fixed;

The nominal value of debt obligations is fixed and is expressed in Russian rubles, US dollars, euros or pounds sterling, payments on debt obligations are made in the currency of the nominal value;

The volume of issue of debt obligations in circulation is at least 1 billion rubles for debt obligations denominated in Russian rubles, 1 billion US dollars for debt obligations denominated in US dollars, at least 1 billion euros for debt obligations, denominated in euros, and at least 0.5 billion pounds sterling - for debt securities denominated in pounds sterling;

Debt issues are not issues intended for private (non-public) placement.

3. to international financial organizations, in whose debt obligations the funds of the National Welfare Fund can be placed, include debt obligations (including those issued by securities) of the following institutions:

Asian Development Bank (ABD);

Development Bank of the Council of Europe (Council of Europe Development Bank, CEB);

European Bank for Reconstruction and Development (EBRD);

European Investment Bank (EIB);

Inter-American Development Bank (IADB);

International Finance Corporation (IFC);

International Bank for Reconstruction and Development (IBRD);

Nordic Investment Bank (NIB).

4. Shares of legal entities and shares (participatory interests) of investment funds, in which funds of the National Welfare Fund can be placed must meet the following requirements:

Shares of legal entities must be listed on at least one stock exchange;

Shares of foreign issuers must be included in the lists of securities used to calculate the MSCI World Index and FTSE All-World Index stock indices;

Shares of Russian issuers must be included in the lists of securities used to calculate the RTS Index or MICEX Index stock indices;

The assets of investment funds that have issued units (participation interests) must include only permitted financial assets.

5. when placing funds from the National Welfare Fund on deposits and bank accounts in banks and credit institutions

The bank or credit institution must have a long-term credit rating of not lower than “AA-” according to the classification of the rating agencies “Fitch-Ratings” or “Standard & Poor’s” or not lower than “Aa3” according to the classification of the rating agency Moody's Investors Service agency. If a bank or credit organization is assigned different long-term creditworthiness ratings by the specified agencies, then the lowest of the assigned ones is accepted as the long-term creditworthiness rating;

The standards for the minimum and maximum periods for placing funds of the National Wealth Fund on deposits in banks and credit institutions, established by the Ministry of Finance of the Russian Federation, are mandatory;

6. When placing funds from the National Welfare Fund on deposits in the state corporation "Bank for Development and Foreign Economic Affairs (Vnesheconombank)" The following requirements must be met:

a) funds can be placed on deposits in Russian rubles, US dollars, euros and pounds sterling;

b) the maximum permissible total amount within which funds can be placed on deposits in Russian rubles is 955 billion rubles, in which case:

Up to 175 billion rubles can be placed on deposits, the amounts, terms and other essential conditions for which are determined by the Ministry of Finance of the Russian Federation;

Up to 410 billion rubles can be placed on deposits in the manner established by the Government of the Russian Federation, on the following conditions:

Up to 40 billion rubles can be placed on deposits at a rate of 6.25 percent per annum for a period until June 1, 2020 in the manner established by the Government of the Russian Federation;

Up to 30 billion rubles can be placed on deposits at a rate of 6.25 percent per annum for a period until December 31, 2017 in the manner established by the Government of the Russian Federation;

Up to 300 billion rubles can be placed no later than December 31, 2012 on deposits at a rate of 6.25 percent per annum for a period up to and including December 30, 2022.

Payment of interest on the placement of funds during the entire period is carried out quarterly.

The possibility of early return of funds is allowed with the consent of the state corporation "Bank for Development and Foreign Economic Affairs (Vnesheconombank)", while interest on the placement of funds is paid for the actual period of the funds being on deposit.

c) the amounts and terms of placement of funds are determined by the Ministry of Finance of the Russian Federation, taking into account the specified requirements; placement of funds on deposits is carried out by the Federal Treasury by decision of the Ministry of Finance of the Russian Federation.

1. maximum shares in the total funds of the Fund:

In Russian rubles - 40%;

In foreign currency - 100%.

2. regulatory currency structure funds of the National Welfare Fund in foreign currency in the following composition:

3. current maturities of debt issues foreign states, debt obligations allowed for placement of funds of the National Welfare Fund:

For debt denominated in US dollars and euros (except Spanish government debt):

For debt denominated in pounds sterling (other than Spanish Government debt):

For Spanish government debt:

The terms indicated above are valid at the time of acquisition of debt obligations at the expense of the National Wealth Fund or at the time of formation of indices from debt obligations used to calculate the amounts of interest accrued on the balances of funds in the accounts for accounting the funds of the National Welfare Fund in permitted foreign currencies, opened by the Federal Treasury at the Central Bank of the Russian Federation.

4. list of foreign government agencies, in whose debt obligations funds of the National Welfare Fund can be placed (in agreement with the Central Bank of the Russian Federation):

Austrian Export-Import Bank (Oesterreichische Kontrollbank Aktiengesellschaft, OKB);

Public Credit Agency, Spain (Instituto de Credito Oficial, ICO);

Motorway and Motorway Financing Agency, Austria (Autobahnen- und Schnellstrassen- Finanzierungs- Aktiengesellschaft, ASFINAG);

Group of Banks for Reconstruction and Development, Germany (Kreditanstalt fur Wiederaufbau Bankengruppe);

Export Development Canada (EDC);

Communal Bank of the Netherlands (Bank Nederlandse Gemeenten, BNG);

Society for Medium Term Finance of the Railway Network, UK (Network Rail MTN Finance CLG (Plc));

Agricultural Rentenbank, Germany (Landwirtschaftliche Rentenbank);

Federal Home Loan Mortgage Corporation, Freddie Mac;

Federal National Mortgage Association, USA (Federal National Mortgage Association, Fannie Mae);

Federal Home Loan Banks, USA (FHLBanks);

Federal Farm Credit Banks, USA (FFCB);

Municipal Credit Fund, France (Dexia Group);

Social Security Debt Service Fund, France (Caisse d'Amortissement de la Dette Sociale, CADES);

French Mortgage Fund (Credit Foncier de France, CFF).

5. maximum nominal volume of acquired debt obligations one issue:

for debt obligations of foreign states - 25% of the nominal volume of the issue;

for debt obligations of foreign government agencies, central banks and international financial organizations - 5% of the nominal volume of the issue.

Budget Code of the Russian Federation, Chapter 13.2, Article 96.11, paragraph 2.

Former Finance Minister Alexei Kudrin began saving money for a rainy day. In 2004, he created the Stabilization Fund. Four years later - at the height of the previous crisis - it was divided into the Reserve Fund and the National Welfare Fund. The first was designated as a “safety cushion” for the budget. The National Welfare Fund became a stabilizer of the pension system, although it was never used for its intended purpose. Spending the Stabilization Fund within the country “is simply destroying the economy,” Kudrin wrote in Kommersant in 2006.

Ironically, it was the main fighter for its integrity who was the first to “unseal” the NWF. Kudrin had to open Pandora's box in order to save the financial system from the crisis in 2008-2009. To do this, the ex-minister allowed investing up to 40% of the National Welfare Fund in ruble assets (initially, reserves were kept only in foreign assets and currency).

Kudrin’s idea was that during difficult periods, funds do not decrease, but grow in ruble terms, explains Konstantin Vyshkovsky, director of the Ministry of Finance department: for example, when oil prices fall and the ruble exchange rate depreciates.

But Kudrin had opponents. The main ideologist of investing NWF funds in the economy is presidential assistant Andrei Belousov [formerly the head of the Ministry of Economic Development], several officials and experts close to the government told RBC. Belousov himself did not provide comments for this article.

The organizational weight of Kudrin, who knew the president from his work at the St. Petersburg mayor’s office, made it possible to restrain attacks on the NWF, people close to the ex-minister recall. “But after he left [in September 2011], it was no longer possible to adhere to the principle that we do not invest anything [from the National Welfare Fund] inside Russia,” says a federal official.

In 2012, in a message to parliament, Putin proposed investing up to 100 billion rubles in infrastructure. from the National Welfare Fund. In just six months, the president will increase the limit to 450 billion.

The priority has been changed, stated Finance Minister Anton Siluanov (Kudrin’s deputy before his resignation). Siluanov himself was more conservative. He proposed directing up to 50% of the National Welfare Fund to sovereign and corporate bonds and 3-5% to shares. The funds would be managed by a new structure - Rosfinagentstvo. Kudrin also lobbied for its creation, says a person close to him: this way he wanted to protect reserves from waste.

The Ministry of Finance was in the minority. The authorities decided that it was safer to invest money within the country, the federal official recalled: there was no risk that the money would be seized abroad. Rosfinagentstvo remained on paper, but the National Welfare Fund decided to print it.

Unheard of Generosity Fund

“Whoever asked for anything!” - recalls a government official. Applications even came from citizens, he says: “Allocate 50 million rubles. for personal purposes."

Calls to increase the 40% limit on projects to 50 or 60% began to be heard immediately after the decision to allocate funds from the National Welfare Fund for infrastructure. But then the president did not give in to persuasion, said First Deputy Prime Minister Igor Shuvalov in the fall of 2013.

As a result, competition for NWF funds has increased sharply. Almost all companies planning any serious investments rushed to submit applications. In mid-2014, the amount of all applications exceeded the size of the fund itself, the official recalls. Over the past year, more than a hundred applications were received, says another, in 2015 - only 12 from Rosneft.

The state-owned company generally became the record holder among applicants. Rosneft, which fell under sanctions, needed to fill the lack of external financing. At first, Rosneft limited itself to asking for 2.44 trillion rubles. for the development of 28 strategic projects, says a White House official. Minister of Economic Development Alexey Ulyukaev was shocked, a high-ranking interlocutor of RBC recalled: the entire National Welfare Fund at that time was about 3 trillion rubles, and the application took no more than ten pages. Later, the minister explained that Rosneft’s application did not meet the formal requirements for projects: the company asked for funds not for infrastructure, but to cover the cash gap.

“If there are no additional funds, we will manage on our own,” Rosneft President Igor Sechin was not embarrassed. But he did not lose interest in the funds of the National Welfare Fund, having changed tactics. By January 2015, the Ministry of Energy received 28 separate applications from the company for a total of 1.3 trillion rubles. from the National Welfare Fund. So far, five projects of state-owned companies worth 300 billion rubles have received preliminary approval from the department. Now the decision is up to the government.

“Everything is done in Russian,” sighs the federal official: “First we follow the most conservative possible model. And then we go to the other extreme: without investing a penny, we get a list of projects, and nothing is enough.”

The most convincing lobbyists turned out to be Rosatom and RDIF. In June 2014, the government established separate quotas for their projects - 10% of the National Welfare Fund, but not more than 290 billion rubles.

RDIF was also the first recipient of the fund's funds. In December, a little more than 5 billion rubles were “shipped” to him. for two projects - eliminating the “digital divide” together with Rostelecom and introducing “smart networks” with Rosseti. There are more projects, a RDIF representative told RBC: they have filled the entire quota.

But, apparently, we will have to wait with them. Sanctions and the crisis forced the authorities to reconsider their attitude towards the “stash”. It is not entirely justified to undertake global construction projects during a period of closed capital markets, the federal official admits. Obviously, infrastructure projects are long-term projects, says Vyshkovsky. And given the difficult geopolitical situation, sanctions, and the closure of foreign markets, most of the funds must be kept in liquid form, he urges.

Investment or spending

Almost a quarter of the Reserve Fund was spent during the 2008 crisis, recalls Konstantin Vyshkovsky. At the same time, “a significant amount of funds” from the National Welfare Fund was also spent on fighting the crisis, he notes: “A significant part of these funds is still in illiquid form in the form of deposits in VEB [NWF funds were received by banks in transit through a deposit in VEB].”

Often this was a “momentary plugging of holes,” Alexey Kudrin admitted in an interview with RBC: “Then [in 2008-2009] there was a shock to the world economy, and we had to spend money without thinking twice.”

VEB's illiquid anti-crisis deposits are just the tip of the iceberg. In fact, the rescue of banks cost the National Welfare Fund almost twice as much.

The troubles started with Gazprombank. In 2012, the state bank repaid part of the debt (50 billion rubles) to VEB with its own shares. Formally, the funds returned to the National Welfare Fund. But the Ministry of Finance returned them to VEB, says Accounts Chamber auditor Mikhail Beshmelnitsyn in a report on the use of funds for the first half of 2012. The state corporation used them to buy 10.2% of Gazprombank.

Last year, other state banks (also VTB and Rosselkhozbank - for only 279 billion rubles) asked to convert anti-crisis assistance from the National Welfare Fund into their preferred shares.

Private banks also encountered difficulties with the return of funds from the National Welfare Fund. In particular, FC Otkritie (until June 2014 - Nomos Bank) has already asked the authorities to convert 4.9 billion rubles into preferred shares. from the National Welfare Fund. This is how much Nomos Bank received in 2008.

The conversion of funds from the National Welfare Fund into bank shares reduces the size of the anti-crisis deposit at VEB. Because of this, the state corporation required additional capitalization. As a result, in the fall of 2014, VEB received a subordinated deposit from the National Welfare Fund for $6 billion.

And even this did not end the assistance to financial government agencies from the National Welfare Fund. Another 100 billion rubles. VTB received from the fund in the form of subordinated deposits at the end of last year. In total, 250 billion rubles have been allocated from the National Welfare Fund for additional capitalization of banks in the anti-crisis plan. and another 300 billion to VEB. The total limit of funds that can be placed in subordinated deposits of banks (VEB is not formally a bank) is 10% of the National Welfare Fund (RUB 459 billion as of March 1).

Putin bequeathed to invest funds in the National Welfare Fund exclusively on a repayable basis. But for investments from the National Welfare Fund into subordinated instruments, a special regime applies. According to the Budget Code, they are not subject to safety requirements.

Formally, the authorities agreed in advance that these funds were non-refundable, an official from the government’s financial and economic bloc admits: the bank has the right not to return them if the adequacy of its capital falls below a certain level. But the risks are minimal, RBC’s interlocutor assures: “The state cannot and should not allow default or bankruptcy of, for example, VTB as a systemically important bank.”

However, the NWF funds invested in infrastructure may also turn out to be irrevocable, the Accounts Chamber warned in its conclusion on the draft federal budget for 2015-2017. In particular, the auditors raised questions about the procedure for returning funds from the National Welfare Fund invested in shares of Russian Railways. This is how the government plans to finance the construction of the BAM.

The purchase of shares of Russian Railways with funds from the National Welfare Fund was planned initially, a person close to the Ministry of Economic Development knows: an increase in debt would lead to a decrease in the rating of the state monopoly, which means that the cost of market financing could increase. The emergence of new obligations for Russian Railways and their servicing were impossible, a federal official confirms.

Exiting shares is difficult, a federal official now admits: “For example, under what conditions will we be able to sell Russian Railways shares? Only when the state decides to privatize Russian Railways.”

And such a decision will be made based on a number of conditions, and not just under favorable conditions, states RBC’s interlocutor. The authorities have been planning the sale of the state stake in Russian Railways since 2011, but the matter has not moved beyond the plans.

There is a departure from the basic principles of the National Welfare Fund, complains Natalya Akindinova, director of the HSE Development Center. First, funds intended for future retirees began to be invested in investment projects. If they were recouped, then the funds would be returned over time, she argues. But investments in shares may become irrevocable, warns Akindinova.

The funds are given free of charge and without a guarantee of return, a high-ranking federal official agrees on condition of anonymity: in essence, this is an additional capitalization of state-owned companies.

“We shouldn’t even talk about non-refundability of funds!” - Konstantin Vyshkovsky objects, the funds of the National Welfare Fund should be invested only on the terms of repayment and profitability: “This is the norm of the law.” “The return of funds from the National Welfare Fund is an absolute priority,” agrees Deputy Minister of Economic Development Nikolai Podguzov. According to him, the funds of the National Welfare Fund invested in bank shares will be returned through the payment of dividends.

Budget or economics

In 2014, the price of oil fell by almost half. The ruble fell in price against the dollar by the same amount, and the price increase of 11.4% was the highest since the crisis year of 2008 (13.3%). GDP growth slowed to its lowest level since 1999 (with the exception of the crisis year of 2009) and amounted to 0.6%. In 2015, the economy is expected to decline by 3%. Russia is in an extremely difficult situation, Igor Shuvalov said at the economic forum in Davos: “We are entering a more protracted and complex crisis [than in 2008-2009].”

The authorities informed the country that there were problems with the budget shortly after the New Year holidays. Lost revenues at an oil price of $50 per barrel will amount to 3 trillion rubles, Siluanov announced at the Gaidar Forum in January. This is exactly the price for oil that the Ministry of Economic Development included in its updated macro forecast for 2015. This is two times lower than before, states Vyshkovsky: “Because of this, a shortage arises.”

“Since incomes are declining, we want to once again reconsider the decisions that were made to invest the funds of the National Welfare Fund,” Siluanov said, speaking in January in the Federation Council: the National Welfare Fund is the same as the Reserve Fund, a source in case of a reduction in the revenue base.

In the current situation, the Reserve Fund (4.72 trillion rubles as of March 1) will be exhausted within two years, predicts Vladimir Nazarov from the Gaidar Institute. 500 billion rubles. was withdrawn from the fund in February. According to the Ministry of Finance’s calculations, this year another 3.2 trillion rubles will be needed to patch budget holes, in 2016 - 1.16 trillion. After the Reserve Fund is exhausted, the National Welfare Fund will have to be spent to cover the budget deficit, Vyshkovsky admits.

The Ministry of Finance is generally against investing any funds from the National Welfare Fund, says a person close to the Ministry of Economic Development: funds may be required for budget insurance and an anti-crisis plan. The Ministry of Finance proposed to freeze decisions on entering projects for six months, an official from the financial and economic bloc clarifies: “To see how the further situation will develop this year.”

The problem is not saving something, argues an employee of one of the state corporations: “Reserves amount to more than 10% of GDP, and with the Central Bank’s currency it is an order of magnitude larger.” It is necessary to avoid a large-scale investment downturn, RBC’s interlocutor urges, “with the ensuing consequences for people, well-being and loss of competitiveness.” Since the authorities are cutting budget expenditures, the only thing left is the resource of the National Welfare Fund and banks. But banks will not lend to long-term projects on their own, says an employee of the state corporation: only the National Welfare Fund remains.

The projects are not ranked in any way by importance, notes an official from the financial and economic block: which of them will make the greatest contribution to GDP and employment growth. At the same time, the amounts allocated are “quite large,” admits RBC’s interlocutor: “The risks, of course, are high.”

Prosperity is not for everyone

“At a meeting with the president, the NWF was mothballed,” says an official familiar with its results. In addition to the previously issued funds (100 billion rubles for VTB deposit and 5 billion for RDIF projects), they have so far decided to allocate another 525 billion rubles, Ulyukaev said after the meeting.

The President ordered the financing of six projects, as follows from the list of instructions: the Central Ring Road, BAM, the Hanhikivi-1 nuclear power plant in Finland, the elimination of the digital divide, Yamal LNG and the purchase of locomotives for Russian Railways. Thus, the president approved investments of just over 600 billion rubles.

Together with VEB’s subordinated deposits (including those from the anti-crisis plan), investments in bank shares and 5 billion rubles previously invested in RDIF projects, the total amount of NWF funds invested in illiquid assets will exceed a third of its volume as of March 1.

For some projects, investment amounts have been reduced and their priority has changed, two federal officials tell RBC. From the list of instructions it follows that the meeting approved the financing of only the first and fifth sections of the Central Ring Road (the winners of the investment competitions are Stroygazconsulting of Ziyad Manasir and Ruslan Baysarov and Ring Highway LLC, a structure included in the ARKS of Gennady Timchenko, respectively).

A decision was made to finance only those areas that do not involve investments from foreign investors, the official explains: “So far we are talking about 75 billion rubles. [of the approved 150 billion].” According to him, for now these are all the funds from the National Welfare Fund that the project can count on until 2018: “Afterwards, the foreign policy situation may be different.”

“We have already invested funds from the National Wealth Fund in two relatively small projects [RDIF], we will need to add another piece,” says Konstantin Vyshkovsky. There are no real projects for the rest of the limit yet, he claims, the undrawn amounts can be directed to projects in some other areas. The same applies to Rosatom, notes Vyshkovsky: “It has one project [the construction of a nuclear power plant in Finland for 150 billion rubles], and we are not discussing others yet.” “The limit is a limit because it is a maximum, not a mandatory share,” he argues.

The fact that the limit on RDIF is actually frozen was revealed by two more federal officials familiar with the results of the meeting.

The only project that was previously approved by the government, but is not mentioned in any way in the instructions, is the development of a coal basin in Tuva, which was initiated by the Tuva Energy Industrial Corporation (TEC) of Ruslan Baysarov. It has been moved, two White House officials say. The project has been worked out 100% and approved at all levels, complains one of them, but the scale is not the same: the “road of life” for Tuva did not qualify for a federal project.

The project was launched personally by Putin. In 2011, he hammered a silver spike into the first link of the Elegest-Kyzyl-Kuragino railway route (part of the TEPK project). A year later, at a major press conference, Putin called the project “complex” but promised to ensure state participation if it was “critical.”

The issue of financing the TEPK project from the National Welfare Fund will still be worked out, Ulyukaev said. In the macro forecast of the Ministry of Economic Development, the project is still included in the list of applicants for funds from the National Welfare Fund in 2015.

Pension risks

In the next 10-15 years, funds from the National Welfare Fund may be needed to pay pensioners, Alexey Kudrin predicted in 2013. The money invested in projects may not be returned by this time, he warned: “In this way we are reducing our insurance for a difficult period.”

If you invest funds from the National Welfare Fund in large projects with a payback period of 20 years or more, then the money will be frozen for this period, an official of the financial and economic bloc agrees. It will be impossible to use them to support the pension system or anti-crisis purposes.

Kudrin estimated the amount of funds needed to solve problems “related to the demographic gap” at 2-3 trillion rubles. “[If the National Welfare Fund is wasted] we will have to look for other sources of solving this problem... Either raise the retirement age or increase insurance premiums. There are no other options,” concluded the ex-minister.

On the one hand, the size of the National Welfare Fund has increased due to the devaluation of the ruble. Last year it brought in 1.5 trillion rubles.

On the other hand, the collapse of the ruble provokes inflation, notes Vladimir Nazarov from the Gaidar Institute, and because of this, additional indexation of pensions will be required. In such an uncertain situation, one cannot say that there will be enough reserves, he warns.

One should also remember about the recession in the economy, adds Vladimir Tikhomirov, chief economist of FC BCS, this will lead to an increase in unemployment: “Contributions to the Pension Fund will inevitably decrease, which will increase its deficit.” The problems of the pension system will only accumulate, Akindinova agrees: “This is a problem that everyone knows about, but puts off until later.”

Be that as it may, starting this year, the authorities began to actively discuss raising the retirement age. This has nothing to do with investing NWF funds in illiquid assets, the federal official claims: the problems of the pension system have been brewing for a long time. Infusions from the National Welfare Fund could delay them for a while, but would not solve them, he is pessimistic.

How are Russian sovereign funds filled and why are they needed?

According to the budget rule, excess oil and gas revenues are sent to the Reserve Fund until its volume reaches 7% GDP. Half of the income above this limit goes to the National Welfare Fund, and the other half goes to finance infrastructure projects. The Reserve Fund and the National Welfare Fund replaced the Stabilization Fund in 2008. The main successor to the Stabilization Fund and budget insurance is the Reserve Fund. If world energy prices fall, the government can open this “box” and use funds to cover the budget deficit. The National Welfare Fund was created to fulfill the state’s obligations to pensioners. It is assumed that the funds of the National Welfare Fund should be used to cover the deficit of the Pension Fund and co-finance voluntary pension savings.

BC RF Article 96.10. National Welfare Fund

1. The National Welfare Fund is a part of the federal budget funds that are subject to separate accounting and management in order to ensure co-financing of voluntary pension savings of citizens of the Russian Federation, as well as ensuring balance (covering the deficit) of the federal budget and the budget of the Pension Fund of the Russian Federation.

(see text in the previous edition)

2. The Federal Law on the Federal Budget for the next financial year and planning period establishes the amount of funds of the National Welfare Fund allocated for the purposes specified in paragraph 1 of this article.

(see text in the previous edition)

3. The National Welfare Fund is formed through:

additional oil and gas revenues to the federal budget in accordance with the procedure established by the Government of the Russian Federation;

(see text in the previous edition)

ConsultantPlus: note.

Effect of paragraph. 3 p. 3 art. 96.10 suspended from 01.02.2016 to 01.02.2022 (Federal Law dated 03.11.2015 N 301-FZ). Until 02/01/2022, income from the management of funds of the National Welfare Fund is used to finance federal budget expenditures.

Income from the management of funds of the National Welfare Fund.

(see text in the previous edition)

6. If at the end of the next financial year and (or) the first year of the planning period and (or) the second year of the planning period, the projected volume of funds of the National Welfare Fund placed on deposits and bank accounts with the Central Bank of the Russian Federation exceeds 5 percent of the volume gross domestic product, the annual volume of use of funds from the National Welfare Fund in the next financial year, the first year of the planning period and the second year of the planning period to cover deficits of the federal budget and the budget of the Pension Fund of the Russian Federation cannot exceed the absolute value of the volume of lost oil and gas revenues in the corresponding financial year.

If at the end of the next financial year and (or) the first year of the planning period and (or) the second year of the planning period, the projected volume of funds of the National Welfare Fund placed on deposits and bank accounts with the Central Bank of the Russian Federation does not exceed 5 percent of the gross domestic product, the annual volume of use of funds from the National Welfare Fund in the next financial year, the first year of the planning period and the second year of the planning period to cover deficits of the federal budget and the budget of the Pension Fund of the Russian Federation cannot exceed a volume equivalent to 1 percent of the volume of gross domestic product indicated on the corresponding financial year in the federal law on the federal budget for the next financial year and planning period, and the absolute value of the volume of lost oil and gas revenues in the corresponding financial year.

Subject to separate accounting and management in order to ensure co-financing of voluntary pension savings of citizens of the Russian Federation, as well as ensuring balance (covering the deficit) of the budget of the Pension Fund of the Russian Federation.

Formation of the fund

The National Welfare Fund is formed through:

oil and gas revenues of the federal budget in an amount exceeding the volume of oil and gas transfers approved for the corresponding financial year, if the accumulated volume of the Reserve Fund reaches (exceeds) its standard value;
income from managing funds of the National Welfare Fund.

Accommodation

On April 21, 2010, the Chairman of the Government of the Russian Federation V.V. Putin signed a decree of the Russian Government that until February 1, 2012 the Ministry of Finance will not be obliged to publish on the Internet information about the volumes of funds received into the accounts of the Reserve Fund and the National Welfare Fund, about where they are located and how they are used. Some economists believe that the refusal to publish this information is due to the rapid decline in the funds of both funds. Currently, the Ministry of Finance website contains information about the amount of funds in each of the funds.

Dynamics of changes

date	In billion US dollars	In billion rubles
01.02.2008	32,00	783,31
01.03.2008	32,22	777,03
01.04.2008	32,90	773,57
01.05.2008	32,72	773,82
01.06.2008	32,60	773,93
01.07.2008	32,85	770,56
01.08.2008	32,69	766,48
01.09.2008	31,92	784,51
01.10.2008	48,68	1 228,88
01.11.2008	62,82	1 667,48
01.12.2008	76,38	2 108,46
01.01.2009	87,97	2 584,49
01.02.2009	84,47	2 991,50
01.03.2009	83,86	2 995,51
01.04.2009	85,71	2 915,21
01.05.2009	86,30	2 869,44
01.06.2009	89,86	2 784,14
01.07.2009	89,93	2 813,94
01.08.2009	90,02	2 858,70
01.09.2009	90,69	2 863,08
01.10.2009	91,86	2 764,37
01.11.2009	93,38	2 712,56
01.12.2009	92,89	2 769,84
01.01.2010	91,56	2 769,02
01.02.2010	90,63	2 757,89
01.03.2010	89,63	2 684,21
01.04.2010	89,58	2 630,27
01.05.2010	88,83	2 601,62
01.06.2010	85,80	2 616,54
01.07.2010	85,47	2 666,41
01.08.2010	88,24	2 663,76
01.09.2010	87,12	2 671,54
01.10.2010	89,54	2 722,15
01.11.2010	90,08	2 772,80
01.12.2010	88,22	2 761,96
01.01.2011	88,44	2 695,52
01.02.2011	90,15	2 674,53
01.03.2011	90,94	2 631,98
01.04.2011	91,80	2 609,66
01.05.2011	94,34	2 594,58
01.06.2011	92,54	2 597,55
01.07.2011	92,61	2 600,00
01.08.2011	92,70	2 566,04
01.09.2011	92,63	2 673,05
01.10.2011	88,69	2 827,10
01.11.2011	91,19	2 726,42
01.12.2011	88,26	2 764,40
01.01.2012	86,79	2 794,43
01.02.2012	88,33	2 682,21
01.03.2012	89,84	2 600,88
01.04.2012	89,50	2 624,78
01.05.2012	89,21	2 619,52
01.06.2012	85,48	2 773,78
01.07.2012	85,64	2 810,45
01.08.2012	85,21	2 742,85
01.09.2012	85,85	2 772,45
01.10.2012	87,61	2 708,58
01.11.2012	87,19	2 748,67
01.12.2012	87,47	2 716,61

Notes

Links

Dynamics of changes in the National Welfare Fund on the website of the Russian Ministry of Finance

Wikimedia Foundation. 2010.

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