UPDATE: PM: Govt, cbank to reduce financial market volatility

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MOSCOW, Mar 19 (PRIME) -- The government and the central bank will join forces to reduce the volatility of the Russian financial market, Prime Minister Mikhail Mishustin said at a government meeting on Thursday.

“We will decrease the financial market’s volatility together with the central bank, and take additional steps to normalize the situation,” he said.

The steps will make the supply of foreign currencies on the market predictable regardless of energy prices.

“The Finance Ministry and the Bank of Russia have today announced a new regime of operations on the currency exchange market. The regulator will compensate the currency market for a lack of foreign currency revenue if the Urals oil price falls below U.S. $25 per barrel,” he said.

“It will help to raise the foreign currency supply and make it more predictable regardless of the situation on the global oil and gas markets.”

The Finance Ministry and the central bank will also develop new measures to support the financial markets, Mishustin added.

The government will also begin instant nationwide monitoring of prices for consumer goods including food, children’s goods, drugs and other medical goods, chemicals for disinfection and individual protection gear.

“The Industry and Trade Ministry, the Federal Tax Service, the Federal State Statistics Service and the government’s communication center will begin real-time monitoring of all the prices in each retail chain and pharmacy of each region,” Mishustin said.

The country’s food supply is sufficient, and the government will make every effort to ensure regular supplies to retail stores, he said.

“Agriculture is the basis of our safety, not only in food, but also in economic and social terms. We can see it vividly now, in the time of feverish demand for food amid the spread of coronavirus decease in many European states.”

“We have enough food, and in the future we will make every effort to ensure deliveries of fresh food, including bread, milk, meat for our people, and to prevent empty shelves in stores.”

The government will control Russia’s labor market on a weekly basis as well, he also said.

“We will perform prompt monitoring of the labor market all around Russia. We must see the broad picture of employment in every location, especially single-industry cities, which are particularly vulnerable from this point of view.”

Mishustin has also announced a 3-month moratorium on insurance and rent payments for small and medium businesses.

The government will soon develop a plan to compensate tourist operators for losses from non-returnable air tickets, Mishustin added.

The government will also grant tax payments delay to industries mostly hurt by coronavirus, including tourist firms and air carriers, until May 1. Tourist companies will also be relieved from paying fees to the tourist support association Tourpomoshch created to help people if tour operators fail to fulfill their obligations.

Mishustin also said that government will distribute between 43 Russia’s regions 5 billion rubles for improvement of living environment in small cities and historical settlements, which accommodate more than 30 million people.

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