Russian National Wealth Fund
|Russia's Reserve Fund|
|CEO:|| Dmitry Pankin
|Based in:|| Moscow
|Inception:|| January 30, 2008
|Origin:|| Oil & Gas
|Assets:|| $86 billion
|Reports||Sovereign Wealth Funds Contact and Information Report|
Russian National Wealth Fund is Russia's Sovereign Wealth Fund. It was created after the Stabilization Fund of the Russian Federation was split into two separate investment funds on February 1, 2008. The two funds are Reserve Fund, which is invested abroad in low-yield securities and used when oil and gas incomes fall, and the National Welfare Fund, which invests in riskier, higher return vehicles, as well as federal budget expenditures. The Reserve Fund was given $125 billion and the National Welfare Fund was given $32 billion. The fund is controlled by the Ministry of Finance.
The National Wealth Fund will receive funds from investments returns or any excess funds that the Reserve Fund produces. The Reserve Fund is capped at 10% of Russian GDP and any funds over that will be given to the wealth fund.
The Russian government, on January 9, 2008, approved the creation of a new investment Fund. This fund was created out of the stabilization fund and was launched on January 30, 2008.
The fund may only invest in the following countries: Austria, Belgium, Canada, Denmark, Finland, France, Germany, Great Britain, Ireland, Luxembourg, The Netherlands, Spain, Sweden and the United States. The Russian government consider these countries financially stable. It can also hold securities in several countries
The Reserve Fund can be used to cover deficits in the federal budget should oil prices fall.
In the midst of the global financial crisis, Vladimir Putin announced on October 21, 2008, that “RUB 175 billion worth of funds from the National Wealth Fund will be transferred for management to VEB to maintain the stability of the Russian stock market, including the purchase of the Russian companies’ corporate bonds.” The VEB is the Bank for Development – Vnesheconombank.
There is a lot of political infighting over the strategy of the RNWF. Some feel that the funds should be used to tackle Russia’s state pension deficit and infrastructure backlog, while others feel that it should follow the strategy that many other Sovereign Wealth Funds take such at the Abu Dhabi Investment Authority or Temasek Holdings.
$86 billion , as of June 1, 2010.
|February 2009||$84.47 billion|
|January 2009||$87.97 billion|
|December 2008||$76.38 billion|
|November 2008||$62.82 billion|
|October 2008||$48.68 billion|
|September 2008||$31.92 billion|
|August 2008||$32.69 billion|
|July 2008||$32.85 billion|
|June 2008||$32.60 billion|
|May 2008||$32.72 billion|
|April 2008||$32.90 billion|
|March 2008||$32.22 billion|
|February 2008||$32 billion|
Current currency accounts
As of May 1, 2008
|US Dollar||14.31 billion|
|UK pound||1.62 billion|
|January 9, 2008||Approved the creation of the two new funds|
|January 30, 2008||Funds launched|