Report: Fin Min says dedollarization plan to come in force in ‘19

MOSCOW, Oct 5 (PRIME) – Russia will launch incentives for ruble-denominated foreign trade and lower economic dependence on the U.S. dollar in 2019, First Deputy Prime Minister-Finance Minister Anton Siluanov told channel Rossiya 24 in an interview broadcast on Friday.

“We will now prepare measures to stimulate our partners to pay in rubles. We will create tax preferences… the government plans to prepare such decisions this year so that they come in force next year,” Siluanov said.

Andrei Kostin, CEO of second largest bank VTB, said on Tuesday he had submitted his suggestions on de-dollarization of the economy to President Vladimir Putin, who supported the initiatives. On Wednesday, a spokesperson said that the government is considering the measures.

Siluanov said on Thursday that the action plan to reduce the U.S. dollar dependency includes a fast value added tax (VAT) refund for ruble operations and an abolishment of obligatory return of exporters’ revenue to Russia by 2024.

Siluanov said on Friday that the Finance Ministry does not rule out introduction of compulsory settlements in rubles for state companies. The measures will not cover foreign currency deposits of households.

“I must say straightaway that we by no means are speaking about the situation with the dollars held on banking accounts… no one would prohibit the use of the dollar, nobody would force to exchange dollar savings for rubles or any other currencies.”

Russia is interested in switching to settlements in the ruble or other currencies in the existing and new contracts, he said.

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