Funds from the National Welfare Fund - part federal budget, subject to separate accounting. They are aimed at providing co-financing of pension (voluntary) savings of the population. They also contribute to maintaining a balanced FIU budget. Next, we will analyze the National Wealth Fund.
The financial institution in question was formed on February 1, 2008 after the existing budgetary stabilization structure was divided into the Reserve Fund and the National Welfare Fund of the Russian Federation. The NWF exists at the expense of oil and gas revenues from the federal budget. Since 2008, they have been accounted for separately from other income. In addition, the formation of the National Welfare Fund is carried out at the expense of the profit received from the turnover of its finances.
The National Wealth Fund of Russia receives profit from:
Some of the above revenues in the form of oil and gas transfers are annually directed to finance federal budget expenditures. The amount of income is established by the relevant Federal Law for the planning period and the next year. The volume of the transfer is reflected as a percentage of the projected volume of GDP:
After reaching the full amount of the transfer, the proceeds are sent to the Reserve Fund and the National Welfare Fund. The normative value of the first is established by the Federal Law on the federal budget for the planned period and the upcoming financial year in absolute terms. It is determined on the basis of the projected 10% GDP for the relevant period. The Reserve Fund and the National Welfare Fund are replenished sequentially. First, the standard size of the first is reached, and then injections are made into the NWF.
Oil and gas revenues received by the National Wealth Fund of Russia are recorded in separate accounts of the budget. They are opened in the Central Bank Federal Treasury. Transfers and settlements related to the creation and use of oil and gas revenues are carried out by the Ministry of Finance. The procedure for performing these operations is established by the Government.
The income from this activity acts as another financial source. The goals of administration are to ensure the safety and stable level of profit from placement in the long term. The management of the Fund allows for the possibility of receiving a negative financial result in the short term. Administration is carried out by the Ministry of Finance in accordance with the procedure established at the government level. Separate powers in this activity belong to the Central Bank. By hiring specialized financial companies to perform certain functions related to the management of the Fund, this process, as well as the requirements for subjects, are established by the Government of the country.
The resources that make up Russian Foundation national welfare, are controlled and coordinated as follows:
The Ministry of Finance coordinates and uses the National Wealth Fund according to the first method. Placement of finance on currency accounts The Central Bank is carried out in accordance with the procedure for calculating and crediting interest established on accounting accounts approved by the Ministry of Finance. The Bank makes payments on balances equivalent to the profitability of the indices. The latter are formed from assets intended for the placement of finances that make up the National Welfare Fund. The government has set maximum shares of permitted assets in the total value of the NWF. To improve coordination, the Ministry of Finance is authorized to set normative indicators within the limits approved at the Federal level.
Finances that make up the volume of the National Wealth Fund can be invested in debentures as securities of foreign states, foreign agencies and central banks of such countries as:
The following requirements are set for debt obligations:
International financial institutions, in whose obligations the assets constituting the National Welfare Fund can be placed, are banks:
The Financial International Corporation (IFC) is also referred to the subjects. 
Shares of legal entities and participation shares (shares) of investment funds in which funds of the NWF can be placed must meet certain conditions. In particular:
For its implementation, the following conditions must be met:
To be eligible for deposits, the following requirements must be met:
1. Placement in Russian and foreign permitted currencies (dollars, pounds sterling, euros) is allowed.
2. The maximum allowable total amount within which assets can be held on deposits in rubles is 655 billion rubles. Wherein:
Funds in the amount of up to 175 billion can be placed on accounts, terms, amounts and other essential conditions for which are established by the Ministry of Finance;
Up to 410 billion can be kept on deposits in the manner approved by the Government, subject to the following conditions:
b) at the rate of 8.5% until 31 Dec. 2010 (inclusive). 
Assets in the amount of up to 30 billion can be placed at a rate of 8.5% until December 31, 2017 in accordance with the procedure established by the Government;
Interest payments throughout the entire term are made quarterly;
The possibility of early return of funds is allowed with the consent of the state corporation "Vnesheconombank"; interest is paid for the actual period the finance is on deposit.
3. Terms and amounts of placement are determined by the Ministry of Finance in accordance with the specified requirements; the transfer is made by the Federal Treasury, in accordance with the decision of the Finance Ministry.
The assets that form the National Wealth Fund can be used exclusively for co-financing pension savings population of a voluntary nature and covering the deficit (balancing) of the PFR budget. The distribution procedure is established by the relevant Federal Law No. 56. This Law regulates insurance (additional) contributions to the funded share of the working pension and state support accumulation formation. The volume of the National Wealth Fund - the amount of assets allocated for the above purposes - is established by the Federal Law on fed. budget for the planning period and reporting year according to BK.
The Ministry of Finance publishes on a monthly basis information on the receipt and use of oil and gas revenues at its disposal, the value of the assets of the NWF at the beginning of the month. The documents also provide information regarding the transfer of finance, placement and subsequent distribution in reporting period. The Ministry of Finance also provides annual and quarterly reports on the receipt and use of received oil and gas revenues, the formation and turnover of assets of the National Fund. Welfare. This information is included in the acts on the results of the implementation of articles of the federal budget. In addition, the Ministry of Finance provides an annual and quarterly report on the management of funds included in the Fund. The government of the country, as part of acts on the results of the implementation of articles of the federal budget, submits to the State Duma of the Federal Assembly and the Council of Federations information on the receipts and use of the oil and gas profits received, the creation and turnover of NWF assets, as well as on coordinating their distribution. Reporting is provided once a year and quarterly. 
In the process of implementing the adopted and approved articles of the federal budget, control measures are taken. Authorized to carry them out Accounts Chamber. The control is aimed at checking the creation, circulation, management of assets that make up the NB Fund. The Accounts Chamber submits a prompt quarterly report to the Federal Assembly. It provides the results of the execution of budget items, containing information on the receipt of income and expenses incurred, including, among other things, data on the replenishment, turnover and management of the funds of the NB Fund.
It is a financial institution whose assets are put into circulation to stabilize the budget during a decline in revenues or for government needs in long term. Except economic functions The Reserve Fund also fulfills political tasks. In particular, the presence of such assets prevents a rapid increase in government spending. As a rule, such costs cannot be quickly reduced immediately after a drop in income. In unfavorable periods, such a situation can provoke a budget deficit, failure to fulfill social obligations, and default. The reserve background acts as a macroeconomic tool to maintain the level of aggregate demand and long-term economic growth. The state restrains consumption during periods of rapid progress. This is necessary to reduce inflation. At the same time, when purchasing activity falls, the state (during periods of stagnation) stimulates demand. In such years, the government may spend more money than it receives in taxes. This increases the total national expenditure, allows companies not to reduce production rates, not to lay off workers. With inflation, the government reduces costs to prevent price increases. The difference in expenditures and revenues of the total budget may be directed to the Reserve Fund.
The reserve fund is a separate part of the finance budgets of all levels, which has received the form of targeted assets. They are designed to ensure the uninterrupted provision of costs, both previously provided for and unforeseen, which arise suddenly and are of an accidental or extraordinary nature. The funds constituting the Reserve Fund may be spent on emergency recovery activities related to the elimination of the consequences of man-made disasters, natural disasters and other emergencies that occurred in the current financial period. This structure implements two main functions:
The procedure in accordance with which assets are included in circulation is established regulations Governments. Additional clarifications on the requirements for spending reserve funds may be provided for by orders of the executive bodies of the subjects or local self-government. The amount of accumulated assets cannot be more than 3% of approved budget spending federal level.
Russia is a country rich in gas and oil resources, which it successfully exports, and part of the federal budget revenues from the sale of hydrocarbons goes to the National Welfare Fund of Russia. How are the funds of the fund with such a beautiful and even patriotic name spent, what do the people of Russia get in the end, and how objective are the critics who accuse the authorities of careless or even “predatory” management of the funds of the NWF?
For the first time, a special federal fund formed (filled) at the expense of oil and gas revenues Russian state, was founded on January 1, 2004. It received the full name Stabilization Fund Russian Federation, abbreviated - SF of Russia.
In fact new fund began to accumulate state financial assets, which is not controlled by the parliament, approving the federal budget, but by the government represented by the Ministry of Finance.
The procedure for the formation and expenditure of the fund's resources is initially regulated by the Budget Code of the Russian Federation:
from 2004 to 2008 - chapter 13.1, which subsequently became invalid;
since 2008 - chapter 13.2 on the use of oil and gas revenues in the fed. budget and, in particular, Art. 96.10 "National Wealth Fund".
It was on February 1, 2008 that the Stabilization Fund of the Russian Federation was reorganized by dividing it into the FNB and the Reserve Fund of the Russian Federation.
From 2008 to 2017 inclusive, the formation of the NWF of Russia was carried out at the expense of excess revenues from the sale of oil and gas (if their transfer to the Reserve Fund exceeded its standard value), as well as at the expense of income derived from the management of the Reserve Fund. After 2010, the contribution rate to funds was set at 3.7% of , although in 2008 it was 6.1%.
At the beginning of 2018, the Reserve Fund was fully used up and merged with the NWF - now single fund receives financing through the sale of hydrocarbons on foreign markets and the management of its own funds. The current schedule of the fund's funds can be found at the link http://rffx.ru/blog/tags/graphics . The data can also be found in the "Statistics" section of the official NWF.
Please note: at the same time, part of the income derived from the management of the money of the former Stabilization Fund is credited to the federal budget.
According to the budget code of the Russian Federation, filling and increasing the funds of the NWF has a triple goal:
The law assigns the management of the funds of the National Welfare Fund to the Ministry of Finance of the Russian Federation. It also allows the exercise of certain powers to manage the fund's assets - thus, which contributes to the formation of the Banking Sector Consolidation Fund ().
AT Russian legislation also spelled out a list of assets in which it is allowed to invest funds of the NWF. Any spending of money, which is an innovation, requires the adoption of amendments to the law to allow such liberties. At the moment, it is planned to replenish the fund with income at an oil price of over $40 per barrel.
According to official data Russian Ministry of Finance, in 2017, the NWF shrank in volume to 3.753 trillion rubles, or $65.15 billion, which is national currency was 14%, in the US - 9.3%. In general, the fund respects the currency and there are four currencies - about a third of the assets in dollars and euros, a quarter in rubles and the rest (less than 10%) in pounds sterling.
The National Wealth Fund is poorer today not only compared to January 1, 2017, but also since December 1, since in the last month money was transferred from the fund to balance the PFR. In addition, funds from the National Welfare Fund were directed to finance a number of foreign projects through Vnesheconombank. More than 1/3 of the fund's resources is an illiquid part, placed in the following areas:
on separate accounts with the Central Bank of the Russian Federation - $15.65 billion;
on deposits with Vnesheconombank - 222.47 billion rubles. and $6.25 billion;
on deposits in two more state-owned banks, VTB and Gazprombank, intended to finance de jure self-sustaining investment projects approved by the Cabinet - 164.43 billion rubles;
in securities of Russian issuers, again related to the implementation of "self-sustaining infrastructure projects" - 112.63 billion rubles. and $4.11 billion;
in preferred shares of banking organizations - 278.99 billion Russian rubles.
At the end of 2013, economists and some politicians subjected the Russian authorities, headed by V.V. Putin was severely criticized for the decision to direct part of the NWF funds to buy Ukraine's sovereign debt. Under an agreement signed by the Russian leader and Ukrainian President Viktor Yanukovych, Russia intended to buy securities"independent" on total amount$15 billion, including $3 billion immediately after the signing of the document. Incidentally, Ukraine was not on the list of states whose bonds were allowed to be purchased with the fund's money, so the Russian parliament had to hastily adopt amendments.
As you know, later Yanukovych failed to keep his post, and the new Ukrainian authorities made every effort to refuse to service the debt to the Russian Federation. Will it be possible to return investments in bonds of the state that recently declared Russia an “aggressor” on legislative level is currently an open question. But it is no secret that in recent years we have forgiven much larger debts to other countries with "good" mutual relations.
Big questions were also caused by the decision to invest the fund's money in infrastructure projects, above called "self-sustaining" in quotation marks. Experts say that investments in the Moscow-Kazan high-speed road, a new ring road in the Moscow Region (TsKAD), as well as the reconstruction of the Trans-Siberian and BAM railways will not pay for themselves. Meanwhile, there was no need to reinvent the wheel. The fund's investments after the 2008 crisis both in the US market and in Russian market, which skidded in 2010-14, today would have shown excellent returns. I did a comparison of the FNB with a similar Norwegian fund. Roads out of habit look more like a means of "development" of money and few people have any doubts that the quality of these roads (if the construction is completed) will suffer greatly from corruption.
The real state of affairs is also worrying. pension fund, which are designed to support the money of the NWF. A crisis banking sector recent years may well spill over into the field of pensions - there have already been high-profile cases of embezzlement of money from a number of funds. Now, after the liquidation of the Reserve Fund, many forecasts for the future of the NWF are pessimistic. From September to December 2017, an amount of 165 billion rubles was poured monthly from the NWF into the FIU. This means that if this pace of tranches is maintained and the size of the National Wealth Fund remains unchanged, the funds will be enough for about two years. The future is unknown, but one thing is certain - a fall in the price of oil would be bad for the sovereign wealth fund, while a rise would be good for it. However, the management of the fund definitely needs to be improved, reducing the dependence on raw materials and the share of risky projects, while the liquid part of the deposits only restrains, but does not overtake inflation.
BC RF Article 96.10. national wealth fund
1. The National Wealth Fund is a part of the federal budget funds 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 to ensure balance (deficit coverage) of the federal budget and the budget of the Pension Fund of the Russian Federation.
(see text in previous edition)
2. The federal law on the federal budget for the next fiscal year and the planning period establishes the amount of funds from the National Wealth Fund allocated for the purposes specified in paragraph 1 of this article.
(see text in previous edition)
3. The National Welfare Fund is formed by:
additional oil and gas revenues of the federal budget in accordance with the procedure established by the Government Russian Federation;
(see text in previous edition)
ConsultantPlus: note.
The action of par. 3 p. 3 art. 96.10 was suspended from 02/01/2016 to 02/01/2022 (Federal Law of 03.11.2015 N 301-FZ). Until 01.02.2022, income from the management of the funds of the National Welfare Fund is directed to financial support federal budget spending.
Income from the management of the funds of the National Welfare Fund.
(see text in 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 forecasted amount of the National Wealth Fund placed on deposits and bank accounts in central bank of the Russian Federation exceeds 5 percent of the gross domestic product, the annual volume of the 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 the 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 shortfalls oil and gas revenues in the relevant 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 forecast amount of the National Wealth 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 the funds of the National Wealth Fund in the next financial year, the first year of the planning period and the second year of the planning period to cover the deficits of the federal budget and the budget of the Pension Fund of the Russian Federation cannot exceed an amount equivalent to 1 percent of the gross domestic product indicated on corresponding financial year in 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.
As you probably already guessed, we will talk about the International Reserves, which are also called the Gold and Foreign Exchange Reserves, we will also talk about the funds that were formed during the liquidation of the Stabilization Fund and its division into two parts into the National Welfare Fund and the Reserve Fund. I think it’s worth talking about them, because today the thesis is put forward that almost all the money received from the sale of oil and gas is returned by Russia to the United States through the mechanism of buying bonds government loan US governments.
Popular economists propose to carry out the nationalization of the Central Bank at this very second and see this as a great boon for our state. There are also politicians who, under this simple and understandable for the heart of a simple person slogan about a beautiful life, call on people to take active street actions, speaking about the wrecking activities of the Central Bank's monetarists. Therefore, I want to understand all these reserves and understand what is true and what is false in the sweet speeches of economists and politicians.
So, let's start with the funds - the heirs of the Stabilization Fund (the National Welfare Fund and the Reserve Fund).
The Budget Code of the Russian Federation says the following.
Article 96.9. Reserve fund.
The Reserve Fund is a part of the federal budget funds subject to separate accounting, management and use in order to ensure the balance (deficit coverage) of the federal budget. The amount as of February 1, 2015 is 5,864.90 billion rubles. 
The reserve fund is formed by:
The National Wealth Fund is a part of the federal budget funds 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 to ensure a balance (deficit coverage) of the budget of the Pension Fund of the Russian Federation.
The size of the fund is 5,101.83 billion rubles.
The National Wealth Fund is formed by additional oil and gas revenues of the federal budget in the event that the accumulated volume of the Reserve Fund reaches its standard value.
Funds from the National Wealth Fund can be placed in foreign currency and the following types of financial assets:
Debentures foreign countries, foreign government agencies and central banks;
- debt obligations of international financial institutions, including issued by securities;
- deposits and balances on bank accounts with banks and credit institutions, as well as in the state corporation "Bank for Development and Foreign Economic Affairs (Vnesheconombank)", including for the purpose of financing self-sustaining infrastructure projects, the list of which is approved by the Government of the Russian Federation;
- deposits and balances on bank accounts with the Central Bank of the Russian Federation;
- bonds and shares 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;
- shares (shares) of investment funds.
In order to ensure the sufficiency of own funds (capital) of the state corporation "Bank for Development and Foreign Economic Affairs (Vnesheconombank)", up to 7 percent of the funds of the National Welfare Fund may be placed on deposits with the said state corporation.
In order to finance self-sustaining infrastructure projects, the list of which is approved by the Government of the Russian Federation, up to 10 percent of the funds of the National Wealth Fund may be placed on the basis of separate decisions of the Government of the Russian Federation in Russian credit institutions.
In the Address of the President, V. Putin said: “Since 2013, after the creation of an appropriate management structure, I have been offering part of the National Wealth Fund resources - for a start it can be up to 100 billion rubles, some believe that at least 100 billion rubles - it is necessary to invest in Russian securities, which should be associated with the implementation of infrastructure projects.” 
What is the fault of the Central Bank? What is the fault of the country's leadership? After all, the existing system was formed as a result of two world wars and a geopolitical catastrophe - the collapse of the USSR and the countries of the Soviet camp. And the system is whether we like it or not.
Do you want to lead international trade- buy dollars in which it is carried out, buy special drawing rights for dollars, join the IMF and other international organizations and follow their rules.
What is the reproach of the Central Bank? We see that the proceeds from the sale of oil do not go to the US budget at all, but to develop the Russian economy, to cover the risks associated with falling oil prices (organized by the US).
What is criticism? They call for abandoning the existing system completely, nationalizing the Central Bank and launching the issue of the ruble, which is not backed by the international reserve currency - the US dollar, IMF loan bonds, and currencies of other countries.
Let's pretend we did it. The question arises: how will we buy the goods, services, technologies necessary for our economy? For rubles? But, in the existing system, for the purchase of certain goods and services necessary for our economy, agricultural products, equipment and other things necessary for our economy and the population, US dollars are needed. After all, today we cannot provide ourselves 100% with everything we need, and we depend on imported goods and services that can be bought in the existing international system only for dollars.
With some countries, like China, who need our resources and have the goods we need, we can trade directly, without the dollar. This becomes possible also because of the territorial proximity of China, and high level its state sovereignty.
MOSCOW, 19 September. /TASS/. The volume of the National Wealth Fund (NWF) at the end of 2021 will be 12% of GDP. At the end of 2018, the figure will be 3.8% of GDP, 2019 - 7.4% of GDP, 2020 - 10.3%, follows from the materials of the Ministry of Finance to the draft budget for 2019-2021.
The Ministry of Finance expects an increase in the amount of funds from the National Welfare Fund in 2019 to 7.8 trillion rubles, in 2020 - up to 11.37 trillion rubles, in 2021 - up to 14.18 trillion rubles. In 2019, the fund will be increased by 4 trillion rubles "including through additional oil and gas revenues in the amount of 3.92 trillion rubles and accumulated exchange rate difference in the amount of 85.6 billion rubles". The National Welfare Fund will allocate 4.4 billion rubles to co-finance pensions. In 2020, 3.7 billion rubles will be allocated to co-finance pensions, and 3.3 billion rubles in 2021.
At the same time, in 2019-2021, the funds of the National Welfare Fund will not be used to finance the deficit of the federal budget and the budget of the Pension Fund. "In 2019-2021, according to budget rules and taking into account the forecast of the socio-economic development of the Russian Federation, it is not expected to use the funds of the National Wealth Fund to finance the deficit of the federal budget and the budget of the Pension Fund of the Russian Federation," the document says.
At the same time, it is noted that 11.4 billion rubles will be used from the NWF to co-finance pension savings in 2019-2021. In 2019, it is planned to allocate 4.4 billion rubles from the fund for these purposes, in 2020 - 3.7 billion rubles, and in 2021 - 3.3 billion rubles, the document says.
The limit of the Development Fund for 2019 will be 410 billion 726 million 375.5 thousand rubles, according to the draft federal budget.
The maximum amount of the Development Fund in the budget bill is set for 2020 in the amount of 591 billion 362 million 585.3 thousand rubles, for 2021 - in the amount of 613 billion 92 million 138.3 thousand rubles.
