The Bell: Russian government drafts own plan to lower dollar usage

The Bell: Russian government drafts own plan to lower dollar usage
Photo: Federal Press

A source in one of the agencies involved in the discussion of the issue says that the government’s plan does not provide for any restrictive or prohibitive measures, “there will be no prohibition of settle in foreign currency.”

The Russian government is developing a project to de-dollarize the country's economy. According to sources of The Bell, the project proceeds from proposals of VTB head Andrey Kostin. According to one of the interlocutors of the publication, the document "must be approved by Prime Minister Dmitry Medvedev in one or two weeks."

A source in one of the agencies involved in the discussion of the issue says that the government’s plan does not provide for any restrictive or prohibitive measures, “there will be no prohibition.” It clarified that the emphasis will be put on creating opportunities for settlements in national currencies and facilitating exchange controls.

Also, one of the interlocutors of The Bell noted that the Central Bank, VTB and other major banks, as well as exporters, participate in the discussion of the plan. According to it, the government’s goal is to create convenient mechanisms that will allow the business to make payments in any currency without extraneous losses.

Recall, head of VTB Andrey Kostin submitted a plan for de-dollarization of the economy. It implies an expeditious transition in settlements with foreign countries on export-import operations to national currencies and the transition of the largest Russian holdings addresses under Russian jurisdiction. The ideas of Mr. Kostin were supported by the Minister of Economy Maksim Oreshkin and Deputy Finance Minister Alexey Moiseev.

Later, Mr. Kostin said that his proposals were supported by Russian President Vladimir Putin. The head of VTB noted that the process of de-dollarization will take at least five years.

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