Although the sale of currency from the Fund is blocked due to sanctions against the Russian Federation.
In September, the size of the Russian National Welfare Fund decreased by 1.1 trillion rubles (reporting by the Ministry of Finance of the Russian Federation). Partly due to the strengthening of the ruble, but mostly due to emission financing of the economy. Since the beginning of the year, the Ministry of Finance of Russia has spent 497 billion rubles on direct support of industries and companies, about 270 billion rubles on covering the budget deficit. In general, the liquid part of the fund has decreased by 766 billion since the beginning of the year.
The liquid part of the fund is, in fact, those expenses at the expense of which the Russian Ministry of Finance will cover the budget deficit of the Russian Federation. We will remind, this year it should amount to 1.2 trillion, and in the next three years – 6.4 trillion rubles in total. Currently, the liquid part of the fund is 7.5 trillion rubles.
At the same time, the presence of these reserves is quite conditional, since the sale of currency from the Fund is blocked by sanctions, so at the moment we are actually talking about the emission of rubles, which will undoubtedly deplete the Russian economy.
We remind you that the National Welfare Fund was created as part of the pension system Russians and should insure the pension system of Russia. It is filled mainly from excess oil and gas revenues of the federal budget. And since most of the funds of the fund, denominated in foreign currencies, are included in Russia's gold and currency reserves, its “pension” function has long ceased to be the main one, and it itself is used as a budget reserve.
Read also: In the eighth the package of EU sanctions against the Russian Federation hit many Russian stars
Related video
In her article Yulia Samaeva, the economy editor of ZN.UA wrote that the economy of the Russian Federation has finally begun to falter. No, the collapse is still a long way off, but at least it is becoming clear that the consequences of sanctions pressure could really hurt Russia this time. Read more in the article – “The economy of the Russian Federation has finally shaken”.
