Min: Russian budget prepared for potential sanctions toughening

WASHINGTON, Oct 16 (PRIME) -- The Russian budget is fully prepared for the potential toughening of anti-Russian sanctions, and the country will have enough domestic resources to fulfill the budget obligations, Finance Minister Anton Siluanov told reporters on October 14.

“We are reducing the budget deficit, we assume that in case of changes in some external restrictions we will be able to base on our own resources… That’s why we have done everything we could in the budget,” he said.

Siluanov said the ministry hopes that the common sense will prevail in the issues related to the potential introduction of new sanctions against Moscow.

The ministry plans to attract only domestic banks to the placement of sovereign Eurobonds in the coming years, Siluanov also said.

“We have our own infrastructure created, why would we need foreign banks? We are ready for any banks that provide services well. On the whole, we are working well with VTB Capital, Sberbank is attracted along with Gazprombank and VTB for exchange. We are open to any our banks that provide good services,” he said.

The ministry does not plan to place yuan-denominated bonds this year, as there is no such need, the minister also said.

Siluanov also said the ministry believes its expectations to receive 380 billion rubles in dividends from state companies in 2018 are realistic. He said he was sure that all companies, including gas giant Gazprom and oil pipeline monopoly Transneft, will be able to gradually raise the size of dividends to 50% of net profit under International Financial Reporting Standards (IFRS).

The country’s biggest lender Sberbank will be able to ensure the payment of 50% of profit in dividends, the minister also said.

(57.6196 rubles – U.S. $1)

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