2 Aug 2010 14:07

Russian Reserve Fund down 1.4 bln rubles, Welfare Fund down 2.65 bln rubles in July

MOSCOW. Aug 2 (Interfax) - Russia's sovereign Reserve Fund contained 1.225 trillion rubles in ruble equivalent ($40.59 billion) as of August 1, down from 1.227 trillion rubles ($39.32 billion) on July 1, 2010, the Finance Ministry said.

The National Welfare Fund contained 2.664 trillion rubles ($88.24 billion), down from 2.666 trillion rubles ($85.47 billion).

Reserve Fund assets were not used for budget-balancing purposes in July.

Individual Reserve Fund accounts contained $17.26 billion, EUR 13.73 billion, and GBP 2.47 billion as of August 1. Russia's reserve position at the International Monetary Fund (IMF), backed by Reserve Fund assets, was 991.94 million SDR on August 1.

Returns from investing Reserve Fund assets were $460 million in dollars (14.01 billion rubles) in the period January 15-July 31. The exchange-rate conversion difference was negative 51.39 billion rubles. The exchange-rate conversion difference for monies in Russia's IMF reserve position was negative 470 million rubles.

As of August 1, individual accounts backed by Welfare Fund assets with the Central Bank held $31.86 billion, EUR 24.67 billion, and GBP 4.48 billion pounds; and in deposits with Vnesheconombank (VEB) - 434.02 billion rubles and $2.75 billion as in June 2010, in other words no new funds were deposited with VEB in July.

The deposits with VEB with terms running to no later than December 31, 2019 totaled 285.61 billion rubles at a rate of 7% pa, no later than December 25, 2020 - 118.42 billion rubles at 8.5%, to December 25, 2017 - 30 billion rubles at 8.5%, to October 31, 2011 - $2.75 billion at six-month LIBOR + 2.75% floating rate.

Returns on Welfare Fund investments in dollars for the period January 15 to July 31 came to $710 million, or 21.58 billion rubles. The exchange-rate conversion difference on foreign currency funds for the period was negative 60.99 billion rubles, and the exchange-rate difference on deposits with VEB was negative 2.12 billion rubles.