✂ Fed’s first rate cut since 2020: Use our free Stock Screener to find new opportunities fastExplore for FREE

Russia oil wealth funds fall to $193 bln-FinMin

Published 05/04/2009, 09:00 AM
Updated 05/04/2009, 09:08 AM
TTEF
-

MOSCOW, May 4 (Reuters) - Russia's oil wealth funds lost $13 billion in value over the last month, falling to around $193 billion, as Russia taps into the cash pot to cover its budget deficit, the finance ministry said on Monday.

The Reserve Fund, designated for plugging holes in the federal budget, is currently worth 3.6 billion roubles or $106.81 billion, down from 4.1 trillion roubles on April 1.

Russia is expected to post its first budget deficit in a decade this year, of around 3 trillion roubles, as the economy slips into recession and oil prices remain low.

The Finance Ministry said dollars, euros and sterling from the Reserve Fund were converted into a total of 400 billion roubles in April, and the money transferred into the federal budget, taking the value of the transfers-to-date to 1 trillion.

The Reserve Fund is expected to run out by the end of next year, while budget deficits last until at least 2011.

The second outlet for Russia's oil revenues, the National Wealth Fund, held broadly steady at 2.9 trillion roubles or $86.3 billion. The NWF is designated for longer term projects although officials have said some of the money could be used to plug a deficit in the state pension fund.

Under the going exchange rate on April 1, the combined value of the oil wealth funds was around $206 billion a month ago.

Markets watch the data on the funds as one measure of the reserves Russia has to help it ride out the ongoing market and economic turmoil, which has put pressure on public finances and caused a sharp devaluation of the rouble. (Reporting by Toni Vorobyova)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.