Russia’s National Wealth Fund (NWF) will not be replenished this year with additional revenues from oil and gas exports, the Accounts Chamber announced on Thursday.
In its report on the management of the NWF in 2022 and the first half of 2023, the Chamber of Auditors explains that the government had to increase spending to support the economy in a context of crisis. “geopolitical pressure and sanctions” and cites last year’s suspension of tax regulations that required oil and gas revenues – above a certain threshold – to be deposited into the sovereign wealth fund.
Therefore, the NWF “should not be replenished with additional oil and gas revenues”, indicates the press release published on the chamber’s website. In the future, it will be replenished when the basic volume of oil and gas revenues exceeds 8 trillion rubles ($85.5 billion), in accordance with the regulations adopted for 2023-2025, the statement added.
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According to the chamber’s figures, last year the NWF was supplemented by 2.7 trillion rubles ($28.8 billion) in additional oil and gas revenues obtained in 2021. As of July 1 this year, the The fund’s assets amounted to 12.7 trillion rubles ($135.7 billion). ), which represents a decrease of 6.73% compared to the start of 2022.
The National Wealth Fund was created to support the national pension system and help cover budget deficits. In addition to oil and gas profits, it is also fueled by revenues from the management of its assets.
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