Expenditure

Reserve Fund’s assets may be applied to finance oil and gas transfer to ensure balance of federal budget and for early foreign national debt repayment.

Reserve Fund’s assets are applied to finance the oil and gas transfer without amending the federal law for the corresponding fiscal year and the planning period in case oil and gas revenues of the federal budget earned during the corresponding fiscal year are deficient for these purposes.

The maximum amount of Reserve Fund’s assets to be used to finance oil and gas transfer is approved by the federal budget law for the corresponding fiscal year and planning period. Use of Reserve Fund’s assets to finance the oil and gas transfer in periods of adverse market conditions allows to conduct balanced budget policy and contributes to stability of the social and economic development of the country, insulating it from volatility of global commodity markets.

Since 1 January 2010 till 1 January  2014 Reserve Fund’s assets are not applied to finance oil and gas transfer, but may be applied to finance the federal budget expenditures. [1]

Application of Reserve Fund assets to repay foreign national debt early contributes to decrease of federal budget debt and reducing of federal budget expenses for service of national debt.

Till 1 January 2014 the Government of the Russian Federation may withdraw and deploy Reserve Fund’s assets (including event of excess of overall federal budget expenditures) to pay off debt, reduce borrowings and balance the federal budget in event of and within occurred increases of budget allocation for intergovernmental transfers for the purposes of maintaining balance of the state extrabudgetary funds of the Russian Federation without amending the federal law on the federal budget. [2]

[1] Based on Federal law No. 245-FZ dated 30 September 2010 “Amendments to the Budget Code of the Russian Federation and particular legislative acts of the Russian Federation”.

[2] Ibid.