Russia's MinFin revises plan for use of NWF in 2025 to 0.6 bln rubles from 447 bln rubles planned in spring

MOSCOW. Sept 25 (Interfax) - The potential use of resources from Russia's National Welfare Fund (NWF) in 2025 might be slashed to 552 million rubles from 447 billion rubles, a source told Interfax, citing amendments to the current budget drafted by the Finance Ministry.

The plan for using the NWF has thus returned to the originally planned nominal amount of 600 million rubles. Amendments to the budget made in the spring called for spending 447 billion rubles from the sovereign wealth fund.

The NWF is expected to total 13.637 trillion rubles or 6.3% of GDP at the end of 2025. The Finance Ministry expects the forecast amount to increase by 879.8 billion rubles primarily thanks to a more favourable trajectory in oil and gas revenues and generation of additional oil and gas revenues in 2025.

In 2026, the NWF is expected to be topped up with 78.5 billion rubles in additional oil and gas revenues from 2025 rather than the previously forecast 1.8 trillion rubles. At the same time, 38.5 billion rubles (up to the shortfall of oil and gas revenues in 2026) might be used to finance the federal budget deficit.

In 2027, there are no plans to top up the NWF, but it is forecast to grow to 13.837 trillion rubles by the end of that year from 13.66 trillion rubles at the beginning due to exchange rate gains estimated at 176.9 billion rubles.

In 2028, the NWF is expected to receive 342.1 billion rubles in additional oil and gas revenues from the previous year, and combined with an exchange rate gain of 60 billion rubles, grow to 14.317 trillion rubles by the end of the year.

Spending of NWF resources on the deficit is expected to total a nominal 10 million rubles in these two years.

The use of NWF money to cofinance pension savings will also continue in the next three years, in the amount of 1.2 million rubles annually.

Finance Minister Anton Siluanov said earlier that, in its drafting of the federal budget plan, his ministry is assuming the cut-off price for oil in the fiscal rule will be gradually lowered from $60 per barrel to $55 by 2030.