Lavrov says Russia-Belarus relations developing in working modeRussian Politics & Diplomacy February 21, 21:48
Condolence book in memory of Churkin opened at Russia’s Permanent Mission to UNWorld February 21, 20:53
Ukrainian billionaire Dmitry Firtash detained in Vienna at Spain’s requestWorld February 21, 20:40
UN secretary-general offers Lavrov condolences on Churkin’s deathWorld February 21, 19:53
OPEC does not see problems regarding growth of Russian oil exportBusiness & Economy February 21, 19:46
Kremlin to bake 100,000 pancakes for MaslenitsaSociety & Culture February 21, 19:23
Production of Mercedes Benz cars to start in Russia in 2019Business & Economy February 21, 18:43
UN Security Council holds a minute of silence in memory of Russia’s deceased envoyWorld February 21, 18:30
Russia and US might launch joint operations against terrorists in Raqqa — ministerWorld February 21, 18:17
MOSCOW, September 18. /ITAR-TASS/. Russia’s central bank is looking to buttress its financial system against sanctions over the Ukrainian conflict without returning to the capital controls it abandoned eight years ago, First Deputy Chairman Sergei Shvetsov told Bloomberg Thursday.
Policy makers are trying to shore up markets and reverse an economic slowdown that has been exacerbated by U.S. and EU sanctions against Russia. The ruble has plunged 10% in the past three months to a record low, sparking concern that President Vladimir Putin’s government could impose controls that it had done away with in 2006. That move made Russia the only one of the four biggest emerging-market economies to allow unfettered flows across its borders.
“It’s a great shame; we are disappointed that Russia’s integration in the global market is being used against it,” Shvetsov said. “It’s another lesson that makes us stronger and wiser and forces us to ever-so-slightly adjust our requirements for ensuring our infrastructure works without interruption.”
Since June, the ruble has been the worst performer in global currency markets, a rout that has driven up the price of imports and helped push annual inflation to 7.6% in August. The economy, meanwhile, is in danger of posting its first contraction since 2009.
When Putin’s annexation of Ukraine’s Crimea peninsula sparked the first round of U.S. and EU sanctions in March, Visa and MasterCard blocked some transactions in Russia.
The UK planned to press EU leaders to consider blocking Russia’s access to SWIFT, a British government official said in August. While the system is not critical for the local market since lenders can use bank-client systems instead, it’s “convenient and cheap,” Shvetsov said.
Penalties against Russia were increasing speculation that Russia may impose capital controls in response to accelerating outflows, Citigroup economist Ivan Tchakarov said today.
Foreign debt sales by Russian companies tumbled about 70% this year compared with the same period in 2013, data compiled by Bloomberg show.
The central bank has taken steps to shore up markets, including 250 basis points of interest-rate increases to stem the ruble’s slide as the sanctions triggered outflows. It will provide $3 billion of foreign currency daily through swap operations in a bid to alleviate a liquidity squeeze, according to a statement on Tuesday.
Russian companies aren’t facing “catastrophic” repercussions like the liquidity freeze that followed the collapse of Lehman Brothers Holdings in 2008, Shvetsov said. “The Russian banking system is quite capable of replacing the foreign financing that will leave,” he added.