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Transforming Russia's Stabilization Fund

Overview

With accumulations in the Stabilization Fund approaching $100 billion, over four times the original target, it is past time to decide what to do with these windfalls. Finance Minister Alexei Kudrin recently submitted a proposal to the government on what should happen to these funds.

Kudrin's strategic vision of how such windfalls should be managed amounts to a new framework for budget planning and execution. It is certain that Russia's political classes will attempt to marshall...

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