03:28 GMT +311 December 2017
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    Finance Ministry set to submit proposals on "fund for future"

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    MOSCOW, September 13 (RIA Novosti) - Russia's Finance Ministry will present proposals on the establishment of a new fund to accrue windfall oil profits in October, the finance minister said Wednesday.

    The government said earlier the new "fund for future generations," would use up to 10% of the Stabilization Fund, set up in 2004 to accrue surplus revenues from high world oil prices. The money has been earmarked for education, health-care and social security programs.

    "In October, the Finance Ministry will submit its proposals on the fund for future generations," Minister Alexei Kudrin said.

    He said the new fund would tap into the Stabilization Fund, which currently stands at 6.4% of gross domestic product, and should be 7-10% of GDP.

    "The question now is whether we should save more and consume less to leave more for future generations," Kudrin said.

    The Stabilization Fund stood at $64.7 billion as of September 1, 2006. The Central Bank said Russia's gold and foreign currency reserves stood at $260.4 billion as of September 1, leaving the country with the world's fourth largest foreign currency reserves after China, Japan and Taiwan.

    The Economic Development and Trade Ministry said Tuesday Russia's Stabilization Fund would more than triple its current level to reach $224 billion and gold and foreign currency reserves would top $300 billion in 2009.

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