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    Russian Finance Ministry divides Stabilization Fund into two

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    Russia's Finance Ministry said on Thursday it had divided the Stabilization Fund, set up to accrue surplus revenue from high world oil prices, into the Reserve Fund and the National Prosperity Fund.

    MOSCOW, January 31 (RIA Novosti) - Russia's Finance Ministry said on Thursday it had divided the Stabilization Fund, set up to accrue surplus revenue from high world oil prices, into the Reserve Fund and the National Prosperity Fund.

    The Stabilization Fund held 3.852 trillion rubles ($157 billion) as of January 30.

    Pyotr Kazakevich, deputy director of the ministry's department for international financial relations, government debt and government finances, said the Stabilization Fund was transformed on January 30, when its assets were credited to the accounts of the new funds.

    The Reserve Fund, designed to cushion the federal budget in the event of an oil price plunge, totaled 3.069 trillion rubles ($125 billion) just after its formation, while the National Prosperity Fund, expected to help Russia carry through pension reforms, held 783 billion rubles ($32 billion), Kazakevich said.

    The ministry official said that 80% of resources in the newly created funds will be invested in government bonds of countries approved by the Russian government, 15% in the bonds of foreign government agencies and central banks, and 5% in international financial institutions.

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