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Russia's Stabilization Fund up 74% in 10M06

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MOSCOW, November 1 (RIA Novosti) - Russia's Stabilization Fund grew 74% in the first 10 months of 2006, reaching $76.62 billion as of November 1, 2006, the Finance Ministry said Wednesday.

The fund, which was set up to accrue windfall profit from high world oil prices, stood at $44 billion as of January 1, 2006.

The fund increased by 8.3% over the last month, from $70.73 billion as of October 1.

Russia's Deputy Prime Minister Alexander Zhukov said last week the fund will continue to increase over the coming years, and will exceed $149 billion by late 2007 and about $260.4 billion by the end of 2009.

Russia is paying off its foreign debt mainly from the Stabilization Fund, which hit $76.9 billion as of July 1. Russia repaid the bulk of its outstanding debt to the Paris Club of Creditor Nations on August 18-21. The debt totaled $1.9 billion as of October 1, compared to $23.7 billion on July 1.

Russia's foreign debt declined 31.3% in July-September 2006, reaching $50.1 billion as of October 1, according to the Finance Ministry.

Zhukov said Russia's foreign debt will gradually be reduced to $40 billion over the next three years. "That is a very good indicator, compared with other countries," he said.

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