MOSCOW, August 6 (RIA Novosti) - Russia's Stabilization Fund, established to accrue windfall revenues from high world oil prices, yielded income of 9.5% in foreign currency in the year up to July 24, the finance minister said Monday.
"From July 24, 2006 to July 24, 2007, income from the Stabilization Fund's investments totaled 9.5% in foreign currency," Alexei Kudrin told a meeting between the president and the Cabinet.
According to the Finance Ministry's investment formula, U.S. dollars account for 45% of the Stabilization Fund's foreign currency, while euros make up 45%, and British pounds 10%.
"We expect lower yields in the long-term. But this year was very favorable. Yields totaled $3.32 billion in income over the year," Kudrin said.
From 2008, the Stabilization Fund, which hit $121.7 billion as of July 1, will be transformed into the Reserve Fund and the National Prosperity Fund.
The Reserve Fund, expected to total 10% of Russia's GDP, will cushion the federal budget in the event of an oil price plunge. Oil and gas revenues above this limit will supplement current budget spending, and go to the National Prosperity Fund.
Russia's finance minister also said that federal budget revenues totaled 3,244 billion rubles (about $127.2 billion) and expenditures 2,171 billion rubles (about $85.1 billion), with a surplus of 1,074 billion rubles (about $42 billion) in the first six months of the year.
