The Ministry of Finance thinks about the consolidation of sovereign funds, said Siluanov

© RIA Novosti / Maxim to Aminopherase in fotomancer Finance of the Russian Federation Anton Siluanov. Archival photoThe Ministry of Finance thinks about the consolidation of sovereign funds, said Siluanov© RIA Novosti / Maxim to Aminopherase the image Bank

The Finance Ministry suggested that the government should think about the complete rejection of the further replenishment of the national welfare Fund and reflects on the consolidation of sovereign funds, told reporters the Russian Finance Minister Anton Siluanov.

«The situation, which was originally incorporated in the Budget code there are two sovereign wealth funds — it is, of course, changed. Oil prices have fallen, and we now do not replenish the funds. Those deposits, which we have this year will be implemented, will be used to rebuild the Reserve Fund next year. It’s 623 billion rubles (will be transferred to the Reserve Fund additional oil and gas revenues by year-end 2017 – ed.). In this regard, it is important to think about how it is appropriate preservation rules, over which to replenish the national wealth Fund,» said Siluanov.

The Russian government on Thursday approved amendments to the Budget code, including the exception to code provisions on the regulatory size of the Reserve Fund of the Russian Federation, after which, under the current fiscal rule that the authorities begin to replenish the Fund.

Reserve Fund and national welfare Fund was established in 2008 as a result of division of the RF Stabilization Fund, which the authorities sent additional oil and gas revenues from the growth of prices for hydrocarbons. The reserve Fund is the funding source of the budget deficit in the event of a sharp fall of revenues and the NWF was created as part of the mechanism of providing pensions over the long term, the portion of the Fund was invested in long-term sustainable infrastructure projects.

Siluanov emphasized that all earlier decisions on investment of funds of the NWF should be performed.

«We believe that the decisions that were taken in the national welfare Fund to invest in infrastructure projects, they should be performed. But the other remaining part of the NWF is the same source to Finance the expenditures of the Federal budget, such funds as a Reserve Fund. Do not rule out that we can consider the consolidation of these reserve funds in order to create a single volume of funding sources of the budget deficit,» he said.