No replenishments for Russia’s strategic funds in 2011-12

The Russian strategic funds – the so-called Reserve Fund (RF) and National Welfare Fund (NWF) – are to face a serious financial drought in 2011-12 due the current global financial crisis and the resultant decrease in revenues in the state treasury on the background of growing state expenses on social programs.

For example, the RF, the special reserve for holding the surpluses from state revenues for financing state’s strategic needs, will not be replenished in 2010-11, as the cash that traditionally goes into it will be used to finance the growing federal budget deficits, according to the government budgetary policy for 2010-2012.

Consequently, the RF will be exhausted by 2010, while the NWF will be exhausted by 2014-15, according to the Finance Ministry’s forecasts.