The President of Russia, Vladimir Putin, stated this Tuesday that the seizure of Russian assets by the West “exceeds all limits” and ruled out any state intervention in the national currency.
Putin dismissed what he called “sharp movements” by the state in the foreign exchange market to strengthen the ruble (Russian currency), whose depreciation forced the Central Bank of Russia to increase interest rates by 12%.
“There will be no sudden movements,” said the Head of State at the Eastern Economic Forum held in Vladivostok, in the far east of Russia, responding to a question about possible state intervention in the currency market.
Putin also stated that the matter requires an “exhaustive analysis” by the Government and the Central Bank of Russia, which must review interest rates next Friday, during a meeting that was already scheduled.
“Generally speaking, I don’t think there are insurmountable difficulties and problems in this regard,” he said.
According to Putin, the situation of the ruble “depends on several factors, including the distribution or not of the currency obtained by the largest exporters.”
The Russian Head of State added that when the dollar was trading at 60 rubles (currently the exchange rate is 96.5 rubles against the US dollar) “import logistics chains were not yet fully functioning.”
“Now our market is reaching an increasing volume in terms of imports, which means it needs more foreign currency,” Putin said, stressing that “there are also other factors” that he considered “maneuverable.”
In March 2022, after the start of the second Russian invasion of Ukraine, the Moscow authorities imposed restrictions on foreign currency operations that the Central Bank of Russia extended last Thursday for a period of another six months: until March 9 of 2024.
On the other hand, the Russian head of state once again criticized international sanctions and interventions on the country’s funds.
“The seizure of funds, and not only mine, but those legally obtained by our companies, our businessmen, exceeds all permitted limits,” said the Russian head of state during the same speech in Vladivostok.
“The people who do these things (sanctions) don’t even understand the negative consequences for themselves. They haven’t realized it yet,” Putin said.
At the beginning of the invasion of Ukraine by Russian forces, in February 2022, Europe froze 19 billion euros to Russian “oligarchs.”
Internationally, around $300 billion in gold and foreign exchange reserves were blocked in the Central Bank of Russia.
Still, Putin claimed that Russia “has already earned more than double the blocked amount.”
Source: TSF
