Page 69 - RusRPTOct21

Fund (NWF), which has broken the relationship between the currency and the cost of oil. Capital movements are also playing a role.
“The modest strengthening of the ruble in September suggests that capital flows from Russia may have been significant. This was the case in July and August, when export prices were also rising rapidly and the net inflow of private capital abroad rose to a really significant level, according to preliminary data from the centralank. Also in the past few years, the ruble has developed weaker than export prices,”OFIT said.
“In addition, currency purchases based on the federal budget rule have been made in recent months at the same pace as the average in 2018–2019. According to the rule, the currencies are converted into additional oil and gas tax revenues from the federaludget, which arise when the price of oil exceeds the reference price of oil specified in the rule. This income is saved and later transferred to the National Welfare Fund, which acts as a state reserve fund,”OFIT added.
69 RUSSIA Country Report October 2021 www.intellinews.com