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The head of VTB called utopia full refusal of Russia from the dollar

Full refusal of Russia from the dollar – this is a utopian idea, we are talking about restricting its use in calculations. This was stated to journalists by the head of VTB Andrey Kostin on the sidelines of the Russian-Indian business summit and the business mission of Russian export centre in India. His words leads TASS.

“You can’t “scare people” a full withdrawal from the dollar. It is impossible to make it utopian. I’m a realist, I work in the banking sector. So, of course, no dollars in Russia will not prohibit their limitation – it is absolutely clear the position of our leadership. People can sleep peacefully, especially if the money is in the Bank,” he said.

Kostin noted that the process of de-dollarization is a long. “Five years ago we in the calculations with India, the share of the ruble was 3%, now 20%, despite the fact that no special efforts are attached. If we focus, we can expand the use of including the ruble,” – said the head of VTB.

He also stressed that the broader use of the ruble and the use of Russian sites give more business to Russian banks, increases competition “and, by the way, contributes to the stabilization of our currency due to the fact that the demand for rubles will be more high.” About replacing the dollar in this case can not speak, however, the use of demand for the dollar as a weapon “push all countries, including the EU, China and others, try to find alternative channels to partially address this issue.”

Yesterday it was reported that the plan of de-dollarization of the Russian economy, providing for the phasing out of payments in U.S. currency, has been prepared and submitted to the government for consideration. According to first Vice Premier, Finance Minister Anton Siluanov, the document contains tax incentives for companies using ruble settlements, in particular, an accelerated VAT refund .

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According to the head of the Ministry of Finance, the government plans the abolition of the obligation to return export proceeds in the case that the calculations are made in rubles. “We have such plans by 2024 prepared. Going to do preferential treatment, to stimulate foreign economic activity participants to the use of our national currency,” – said Siluanov.

Earlier, the Finance Minister reported that the plan of de-dollarization of the Russian economy will not affect the currency on deposits in Russian banks. In August, the President declared that the U.S. dollar becomes risky tool for calculations. Then he did not rule out abandoning the dollar in payments for oil deliveries.


The Minister again assured that the plan for dedollarization of the Russian economy will not affect the foreign currency deposits of Russians. “Citizens who have such foreign currency accounts will calmly respond to all our proposals for settlements under foreign trade contracts, as nobody intends to exclude dollar, dollar circulation, no one is going to force you to change dollar savings in ruble or something else. This policy has been, and will continue”, – he stressed.

At the end of September, the head of the CBR Elvira Nabiullina also said that the Russians can not be afraid for their foreign exchange deposits in banks. She noted that Russian banks have sufficient resources to perform all the obligations of the citizens in any currency.

Under the new plan, the government plans to encourage exporters to shift to other currencies due to tax preferences, also said Siluanov. “Let’s do tax breaks, let’s talk about a more expedited return of payments of foreign currency proceeds, the VAT refund on exports. We will create incentives for the transition to settlements in national currency. I think that is absolutely the right decision,” he said.

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That the government is developing a project to de-dollarize the economy in explanation of the plan to non-payment in U.S. currency, proposed by the head of VTB Andrey Kostin, reported the newspaper the Bell.

The sources reported that the government program does not ban payments in us dollars. In a press-service of the government confirmed that authorities have no plans for the abandonment of dollar-denominated payments or the intention to impose other restrictions on the currency. Financial-economic bloc of the government is considering only the issue of reducing the economy’s dependence on the dollar, noted in the Cabinet. Suggestions for reducing costs in the transition to settlements in national currencies, the government introduced the Ministry of Finance, Ministry of economic development and the Central Bank.

The idea of de-dollarization of the Russian economy has been discussed for a month. In July the proposal was made by the head of VTB Andrey Kostin. At a meeting with Russian President Vladimir Putin, he told analysts that the Bank has prepared proposals that would increase the use of the ruble in international payments and to protect the Russian economy from the impact of external factors. He urged the President to support a policy of dollarisation.

At the BRICS summit in Johannesburg in late July, Putin said that to completely abandon the use of the dollar is not going to Russia and will continue to use it as a reserve currency. at the same time, he acknowledged that there should be a gradual build up reserves in other currencies.

Read more: https://www.newsru.com/finance/05oct2018/utopia.html

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