Riskier Strategy Planned for Oil Funds

The Finance Ministry plans to invest as much as half of one of its sovereign wealth funds in shares starting next year and up to 30 percent in corporate bonds.

The National Welfare Fund, created from windfall oil revenue to fund pensions, could triple to $100 billion by the end of the year, depending on the oil price, Deputy Finance Minister Dmitry Pankin said Tuesday.

"We are analyzing the possibility of investing money from the fund not just in the shares and currency of the G8 countries, but also the shares and currency of a broader circle of countries with fast developing markets," he said in written comments.

The Finance Ministry plans to invest a significant part of the National Welfare Fund in company stocks and bonds for 10 to 15 years, Pankin said.

Whether a "limited amount" of the money from the fund is invested in Russian stocks and bonds will depend on inflation, he said. "Our first priority is inflation."