25 Apr 2024 14:56

Russia's Economic Development Ministry proposes discussing this summer additional investments of funds from NWF amid active replenishment

MOSCOW. April 25 (Interfax) - Replenishing the National Wealth Fund (NWF) at an accelerated pace allows considering additional investments of the NWF's resources, Russian Economic Development Minister Maxim Reshetnikov said.

"We see that the National Wealth Fund is replenishing more actively than expected when planning the budget for 2024-2026. We consider it possible to return to the matter of allocating additional resources to finance projects this summer, when an updated forecast has been formed," Reshetnikov told the Russian Union of Industrialists and Entrepreneurs (RSPP) convention in Moscow.

Funds from the NWF should be invested in projects within the limits already set by legislation, so that the fund could continue to play the role of a "safety net" for the budget, Finance Minister Anton Siluanov said in a recent interview with Interfax.

"The list of investments from the NWF has been set, and the law stipulates the possibility of allocating a total of 4.25 trillion rubles for the projects. There are different assets. The Finance Ministry's position is that we need to work within the amount, because the budget must have a margin of safety in the form of the NWF," Siluanov said.

"There are currently many expenses. The reserve should be at least 7% of GDP, though it is currently lower. Replenishing the fund is slower amid adjusting the budge rule," Siluanov said.

There are plans to allocate 1.3 trillion rubles from the NWF this year in order to ensure a balanced federal budget.

The NWF totaled about 12.534 trillion rubles as on April 1, equivalent to $135.704 billion, or 7% of GDP projected for 2024. The NWF increased by 275.75 billion rubles in March. The NWF's liquid assets totaled 5.087 trillion rubles as on April 1, equivalent to $55.083 billion, or 2.8% of GDP projected for 2024.