Russian Finance Ministry saves for a rainy day
22 Jan, 2013 12:30
With yet another wave of economic crisis predicted, Russia is preparing and filling up its Reserve Fund.
Russia’s Finance Ministry is due to transfer a $30 billion surplus of gas and oil revenues to the country’s Reserve Fund following the results of budget performance in 2012. Fresh inflow will increase the reserve by about a half to bring it to $93 billion in total. The Fund was better prepared for the previous economic crisis. In the autumn of 2008 it was at its maximum level of $140 billion. In the following years the account was cut almost 6 times and reached its lowest level of $25 billion in 2010, as the government used almost $130 billion to covering budget spending. Over the last couple years the oil and gas surplus made up for the holes and by 2013 the reserve had $63 billion on account.Provisions from oil and gas surplus will keep flowing into the Reserve until it reaches 7% of GDP. Russia’s Finance Ministry expects it to reach that point by 2017.