Govt. to submit oil windfall management proposals to MPs by Dec.

MOSCOW, June 19 (RIA Novosti) - Russia's government will submit to lawmakers by December proposals on managing oil and gas windfall reserves that have accumulated in the Stabilization Fund, the Cabinet's press office said.

From 2008, the fund will be divided into the Reserve Fund and the National Prosperity Fund. The Reserve Fund, expected to total 10% of Russia's GDP, will cushion the federal budget in the event of an oil price plunge. Oil and gas revenues above this limit will supplement current budget spending and will go to the National Prosperity Fund.

The December deadline is included in a plan of action approved last Friday, on implementing the president's provisions outlined in his state of the nation address.

According to the document, the finance and economics ministries must submit a bill in July to the lower house of parliament, the State Duma, on amending national budget laws to take into account the new funds.

The ministries, along with the Justice Ministry, the financial watchdog and the Central Bank, must then submit corresponding proposals to the Cabinet by November.