Russia to bolster sovereign wealth fund amid restrictions with surging oil, gas revenues

(MENAFN) Russia's Finance Minister, Anton Siluanov, made a significant announcement on Monday, stating that the country's robust oil and gas revenues would enable it to augment its sovereign wealth fund, even in the face of ongoing Western restrictions. The National Wealth Fund (NWF), primarily funded by revenue generated from energy exports, serves a dual purpose: supporting the national pension system and helping cover budget deficits as necessary.

The most recent data reveals a notable uptick in revenues from oil and gas sales, which surged by 5.3 percent year-on-year in July, reaching a substantial sum of USD8.66 billion. Interestingly, the lion's share of this revenue increase stemmed from gas exports, while earnings from oil sales also exhibited a healthy rise of 2.6 percent. Importantly, July marked a pivotal turning point in the current year, as it was the first time this year that Russia experienced a year-on-year growth in revenue from energy exports.

This development underscores Russia's resilience in navigating the challenges posed by Western sanctions. The country's ability to bolster its sovereign wealth fund, even amid external economic pressures, showcases the importance of its energy sector as a key driver of revenue. The NWF, designed to fortify Russia's fiscal stability and safeguard its pension system, appears to be on a trajectory of sustained growth, thanks to the buoyancy of the energy market.

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