Kostin expressed support for Putin’s proposals on the de-dollarization of the economy

© RIA Novosti / Alexei Filippoupolitis in potomacfever Putin and Andrey Kostin. Archival photoKostin expressed support for Putin’s proposals on the de-dollarization of the economy© RIA Novosti / Alexei Filippoupolitis the image Bank

The head of VTB Andrey Kostin has told RIA Novosti that Russian President Vladimir Putin generally supported his proposals for de-dollarization of the Russian economy, it is not a complete rejection of the dollar.

«Yes,» said Kostin, answering the question supported the President his proposals for de-dollarization. While Kostin said that we are not talking about a complete rejection of the dollar. «No,» said the head of VTB, responding to a question.

In August, the us Congress introduced a bill with a whole set of anti-Russian measures, including sanctions against a new state debt of the Russian Federation and the state banks, the list of which includes Vnesheconombank, Sberbank, VTB, Gazprombank, Rosselkhozbank, and Promsvyazbank. RIA Novosti interviewed experts noted that state-owned banks wording in the document is vague, so potentially it can lead to a ban on payments in dollars.

This bill, as well as the overall situation with the American sanctions have intensified discussions on the need of de-dollarization of the Russian economy, in particular the head of VTB in July announced Putin’s proposals for care of the dollar in international settlements, and in September the details of the «plan Kostina» became known to the General public.

In an interview with the newspaper «Izvestia», the head of VTB told the four major directions of its plan of withdrawal from the dollar: the accelerated transition in calculations on export-import transactions in other currencies, including the Euro, the yuan or ruble; re the largest holdings of the Russian Federation in the Russian jurisdiction; moves to placement of Eurobonds through a Russian securities Depository; licensing all participants in the stock market on the basis of common rules.

Deputy Finance Minister Alexey Moiseev in September said the support of the Ministry of Finance «plan Kostina», explaining that the circulation of the dollar in the Russian ban is not planned, but it needs to not be a part of normal business practice. The head of the Ministry Maxim Oreshkin said he supported many of the proposals of the head of VTB Bank’s de-dollarization of the Russian economy, noting that the role of the dollar is reduced actively. The Chairman of the Bank of Russia Elvira Nabiullina stated that the Central Bank has pursued a policy of de-dollarization will continue.

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