Russia abolishes Reserve Fund

Baku. 2 January. REPORT.AZ/ Russian Reserve Fund has merged with the National Welfare Fund.

Report informs referring to Vedomosti, relevant decision came into force on January 1, 2018.

According to the new provisions of the country's law "On budget", additional revenues from oil and gas sales will be collected at the National Welfare Fund.

Notably, the National Welfare Fund and the Reserve Fund were created in 2008 based on the Stabilization Fund. In case of a sharp decline in state budget revenues, the Reserve Fund would play the role of a source of funding for the budget deficit. The National Welfare Fund was established as part of the pension provision mechanism.