VTB CEO says Putin supports de-dollarization proposals

MOSCOW, Oct 2 (PRIME) -- President Vladimir Putin supports suggestions on de-dollarization of the Russian economy made by Andrei Kostin, CEO of the country’s second largest bank VTB told PRIME on Tuesday.

In August, U.S. senators submitted a bill to the Congress seeking to impose sanctions against Russian sovereign debt and state banks sparking discussion about the necessity of de-dollarization.

Later, Kostin submitted his suggestions to Putin, including speeding up a switch to the other currencies like the euro, the Chinese yuan, or the ruble in export-import operations, re-registration of largest Russian holdings in Russian jurisdiction, a switch to offers of Russian Eurobonds through a Russian depository, and licensing of all stock market players under common rules of operation.

When asked about whether the president supported his proposals, he said, “Yes, in general.”

But that doesn’t mean complete rejection of the U.S. dollar transactions. The proposals include a switch into national currencies in international trade within the Eurasian Economic Union and in some industries. “For instance, with the arms. Where it is possible to do that,” he added.

Russia has to develop its own financial sites to attract foreign investment. “This is a long-term plan aimed at changes of the global trend, it is not a one-time fast solution. I think it would take at least five years. We need to make small steps for the future at least in new contracts. I don’t think that we need to revise everything at once,” he said.

In September, Deputy Finance Minister Alexei Moiseyev said the ministry supported Kostin’s proposals, adding that no one plans to ban the U.S. dollar in Russia, but it should stop being an element of everyday business turnover.

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