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  Sunday, December 8, 2019
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Russian Prime Minister Mikhail Fradkov said the Stabilization Fund should not be used for Russian investment projects
"Forget about the Stabilization Fund," Fradkov told Government Ministers during a discussion of the 2006-2008 socio-economic development forecast. The Russian Stabilization Fund was established on January 1, 2005, accumulating oil-export taxes in excess of the $20 per-barrel cut-off point. The Stabilization Fund had 954.5 billion rubles ($33.37 billion, or ?27.63 billion) in early June. The Ministry of Finance, as well as the Economic Development and Trade Ministry, say the Stabilization Fund will have 1.2 trillion rubles ($41.96 billion, or ?34.74 billion) in late 2005, and that it will total 2.3 trillion rubles ($80.42 billion, or ?66.59 billion) by late 2008. Previously, the Cabinet wanted to finance major infrastructure projects out of the Stabilization Fund. However, Finance Minister Alexei Kudrin insisted that the Stabilization Fund be used to repay Paris Club debts and to finance the Pension Fund deficit, thereby sterilizing excessive money supply. The Stabilization Fund will be used to repay external debts next year in line with the President's budgetary address. It was decided to increase the cut-off point to $27 per barrel next year. Additional budgetary revenues will be used to raise wages and pensions and to build roads, airports and ports.
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