A State Duma deputy proposed a mechanism to transfer part of revenue from mineral exports into payments to Russian citizens. The idea centers on creating a Social Justice Fund to channel funds back to the public. The bill outlining this plan was submitted to the lower house of parliament.
The proposal states the fund would start on January 1, 2026, with annual capital replenishment of at least 15 percent of the National Welfare Fund. Disbursements would occur quarterly, and residents with at least 15 years of work experience would be eligible to receive payments.
How will the fund work?
The plan envisions citizens opening accounts in banks where the state holds a majority stake. A board chair appointed by the president would oversee fund management, while a supervisory board would monitor operations. As a practical example, the proposal points to Alaska, which has paid residents a share of oil revenue for roughly five decades.
The government did not back the bill, describing it as excessive. Official assessment warned that diverting money from the National Welfare Fund could weaken the fund’s essential role in protecting pension rights. It also warned the plan could hasten the fund’s depletion, limiting the budget’s ability to respond to potential crises.
Alaska example
Alaska operates a Permanent Fund Dividend program that distributes a share of natural resource revenues to residents each year. In 2024 the per-capita payment reached 1702 dollars. The source for this figure is the Alaska Department of Revenue. These payments help offset the high cost of living in the region.
Established in 1982, the PFD has issued annual payments to residents since its inception. Payouts change with fund earnings and can fluctuate year to year. For instance, in 2023 the payment was about 1312 dollars per person, down roughly 40 percent from the prior year.
The volume of the Russian piggy bank decreased
According to the Ministry of Finance, the National Welfare Fund stood at 12.166 trillion rubles, about 133.4 billion dollars, on September 1, 2024, roughly 6.4 percent of the 2024 GDP forecast.
By August 1, 2024, the fund measured 12.277 trillion rubles, signaling a decline of about 111.7 billion rubles.
The liquid assets on September 1 totaled 4.854 trillion rubles, about 53,236 million dollars, or 2.5 percent of the projected 2024 GDP. In addition, currency effects from holding foreign assets and revaluing gold investments produced a swing of 328,261 million rubles in the fund during January 1 to August 31.