Russia's Finance Ministry not planning to alter structure of NWF investments, add crypto assets - Kolychev

MOSCOW. March 4 (Interfax) - Russia's Finance Ministry is not planning to alter the current regulatory structure of the National Wealth Fund's (NWF) investments, particularly by adding crypto assets that are too volatile, as the level of savings currently in the NWF does not allow thinking about risky investments, Deputy Finance Minister Vladimir Kolychev told reporters.

"No. Gold and yuan," Kolychev said in response to whether changes in the structure of the NWF's investments are possible.

The share of yuan in the regulatory structure of the NWF is up to 60% and gold is up to 40%.

Kolychev has not heard any discussions about creating a strategic reserve in cryptocurrency in Russia, similar to what U.S. President Donald Trump's administration has contemplated in the United States. "This is more of a question for the Central Bank. To be honest, I have not heard any discussions," he said. It is premature in any case to talk about the possibility of including crypto assets in the structure of the NWF's investments, the deputy minister said.

"In terms of sovereign budget reserves, it is important for us that the assets in which these reserves have been invested could be sold very quickly and without a large price revaluation, so that our sale would not result in receiving 50 kopecks on the ruble rather than a ruble for a ruble. Moreover, crypto assets are an asset with increased volatility. We have never considered the NWF for ourselves, and we do not plan to consider it. In general, the concept of accumulating the NWF - and it is legally so, and there is logic here - is that we accumulate from 7% to 10% of GDP in very risk-free assets that are liquid and could be sold quickly, up to a certain level. We are currently far from this level," Kolychev said.

"After that, it would be possible to place [NWF funds] in less liquid and, possibly, more profitable assets. When we get there, we will be able to think about different assets, including cryptocurrency. However, frankly speaking, the volatility parameters are not currently favorable," Kolychev said, confirming that he considers cryptocurrency an unsafe asset.