Stabilization Fund of the Russian Federation

The Stabilization fund of the Russian Federation (SFRF, Russian: Стабилизационный фонд Российской Федерации, romanized: Stabilizatsionny fond Rossiyskoy Federatsi) was a sovereign wealth fund established based on a resolution of the Government of Russia on 1 January 2004, as a part of the federal budget to balance the federal budget at the time of when oil price falls below a cut-off price, currently set at US$27 per barrel.

The Fund was created to create a reserve of liquidity with the additional benefit of reducing inflationary pressure and insulating the economy of Russia from volatility of raw material export earnings (for example the price of crude oil), which was among the reasons of the 1998 Russian financial crisis.

[2] On 21 May 2007, President Vladimir Putin urged the government to pump surplus oil revenue into domestic stocks by buying Russian blue chips such as Gazprom and Rosneft, which had fallen since the beginning of the year, instead of foreign securities, which previously had been explicitly forbidden due to fear of inflation.

The Fund assets were invested solely under second scheme (allocation to the Federal Treasury's accounts with the Bank of Russia).

The Government reported quarterly and annually on the Fund's accumulation, spending and investment of capital to both chambers of the Russian Parliament (State Duma and Council of Federation).