MOSCOW, September 3 (RIA Novosti) - Russia's Finance Ministry said Monday that the Stabilization Fund increased 145 billion rubles from August 1 to September 1 to 3.4 trillion rubles ($132.9 billon).
The Stabilization Fund, which was established to accrue surplus revenues from high world oil prices, yielded an investment income of $3.72 billion from December 15, 2006 to August 31, 2007, the ministry said.
From July 24, 2006, when the Stabilization Fund's money was invested for the first time and until August 31, 2007, investment yielded an income of 8.76% per annum in U.S. dollar terms, the ministry said.
According to the Finance Ministry's investment formula, U.S. dollars account for 45% of the fund's foreign currency, euros make up 45%, and British pounds 10%.
From 2008, the Stabilization 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.
