FX.co ★ Russia ready to settle exports in rubles

The top managers of the largest state-owned companies confirmed they are ready to accept Russian rubles for exports. Board Chairman at VTB Andrei Kostin explained, “Supplies of Gazprom, Rosneft, and Rosoboronexport make about $230 billion annually. I have spoken to them and they don’t mind switching their exports to rubles. They only need a mechanism to do that.” Taking into account the current state of the world, Russia should be ready to lower its exposure to the caprices of the U.S. and EU, Kostin added. It is worthwhile to note that the officials did not mull over the option of not using the U.S. dollar at all. Ruble-linked contracts are seen as yet another way to pay for exports. The Russian government acknowledges that such a transfer is not that simple, sometimes it can hurt the exporters as well. Either way, such transitioning to ruble payments may be lucrative. One day the yuan may also take its place in international transactions. By that time Russia will gain invaluable experience of switching from one global currency to another. Apart from this, the creation of national payment system was also on the agenda. It was not just the sanctions, but the necessity. Every developing country should have its own payment system. The use of foreign payment systems “creates a risk not only for companies, but the public in ordinary life.” There must be a worthy alternative in Russia, “a maximally simple and inexpensive,” concluded Andrei Kostin.