Accounts Chamber recommends removing frozen foreign currency assets from NWF
MOSCOW, July 28 – RIA Novosti. According to the materials of the control department, following the analysis of the formation, the Accounts Chamber proposed to exclude from the Russian National Welfare Fund (NWF) shares of funds placed in the currencies of countries that impose sanctions against the Russian Federation, the use and management of funds in the period 2020-2021.
In particular, the Accounts Chamber proposes to “make changes in the specified structure of funding sources, providing for the exclusion of the share of funds placed in foreign currencies of states imposing sanctions against the Russian Federation.”
According to the Accounts Chamber, as of January 1, 2022, the total volume of NWF exceeded 13.58 trillion rubles, which is 1.7 times or 5.81 trillion rubles more than at the beginning of 2020. The structure of NWF’s liquid assets has changed significantly over the past two years: US dollars, in which 36.1% of the fund’s funds were invested at the beginning of 2020, were subtracted, while euro and sterling shares were 23.9% and 8% from 34.8% and 8%, respectively. It has been reduced to 3.1. At the same time, assets included the Chinese yuan, which accounted for 19.4% of the fund’s assets, the Japanese yen with 2.9%, and depersonalized gold, with NWF’s 13%, at the beginning of 2022.
The auditors reminded that due to the imposition of sanctions by a number of foreign countries in 2022, the accounts of the Central Bank of Russia in euro, sterling and Japanese yen were blocked.
In addition, it turned out to be unprofitable to place NWF funds in foreign currency accounts with the Central Bank at the end of 2021. The Ministry of Finance of the Russian Federation had previously estimated this loss at 1.2 billion rubles. The materials refer to the comment of the auditor Alexey Savatyugin, “For the first time since the foundation of the foundation in 2008, there was a loss of turnover.” According to the terms of the bank account agreement with the Central Bank, it should be attributed to the financial result of the next year and compensated with future revenues.
Income from the management of NWF funds should be transferred to the budget. Thus, Savatyugin states, the presence of a loss “will lead to a reduction in the amount of potential revenue from placing funds in foreign currency accounts at the Central Bank to finance federal budget expenditures.”
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