Accumulation

Since 2008 oil and gas revenues are accounted separately from other revenues of federal budget.

Oil and gas revenues of the federal budget are comprised of the following:

-     oil and gas production tax (oil, natural gas, gas condensate);

-     export customs duty on crude oil;

-     export customs duty on natural gas;

-     export customs duty on oil products.

Each year part of these revenues is applied as an oil and gas transfer to finance federal budget expenditures. Size of the oil and gas transfer is constituted by federal law on the federal budget for a corresponding fiscal year and planning period.

The size of the oil and gas transfer is determined in  percents of forecasted GDP in the corresponding year:

-    in 2008 6.1%;

-    in 2009 5.5%;

-    in 2010 4.5%;

-    in 2011 and subsequent years - 3.7%.

After oil and gas transfer is completely executed remaining oil and gas revenues are accumulated in the Reserve Fund. Regulatory size of the Reserve Fund is constituted by federal law on federal budget for a corresponding fiscal year and planning period as an amount equal to 10% of forecasted GDP in corresponding year. Whenever the Reserve Fund reaches aforementioned cap then remaining oil and gas revenues are transferred to the National Wealth Fund.

Other cash proceeds of the Reserve Fund are returns resulting from its asset management.

Since 1 January 2010 up to 1 February 2012 returns resulting from Fund’s asset management will not be reinvested to the Fund but deployed to finance federal budget expenditures. ^[1]

Oil and gas revenues of federal budget, the Reserve Fund and the National Wealth Fund are accounted on separate federal budget accounts of Federal Treasury with the Bank of Russia.

Ministry of Finance is responsible for accumulation and spending procedures of oil and gas revenues of federal budget, oil and gas transfer, Reserve and National Wealth Funds in accordance with terms and procedure established by the Government of the Russian Federation ^[2].

[1] based on Federal law No.218-FZ dated 22 September  2009 “Amendments to the Budget Code of the Russian Federation and particular legislative acts of the Russian Federation”

[2] Regulation of the Government of the Russian Federation No.892 dated 17 December 2007 “Execution of calculation and transfer of funds relating to accumulation and spending procedures of oil and gas revenues of federal budget, oil and gas transfer, the Reserve Fund and the National Wealth Fund”.