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HomeLatest News“The casino always wins”: Or why financial sovereignty is so important

“The casino always wins”: Or why financial sovereignty is so important

Date: July 23, 2024 Time: 02:27:01

The sanctions are putting unprecedented pressure on the Russian economy. And Western countries dealt the first blow to the financial sector – the circulatory system of the economy. This was expected to completely slow down the work of other industries. But this plan did not work. The Russian financial system withstood the blow. And now the next step is necessary. Participants in the session “Financial sovereignty and macroeconomics: practical steps and strategic objectives” at the XXVII St. Petersburg International Economic Forum discussed what it should be like.


The main achievement of the financial bloc of the government and the Central Bank is that large-scale Western sanctions had practically no impact on the country’s financial sector. There were no serious consequences. And all because its own infrastructure was created.

– In recent years, our country, the government, together with the Central Bank, have done a lot to achieve full financial sovereignty. Some time ago, we realized that we did absolutely the right thing by creating our own payment, exchange and rating infrastructure. As well as infrastructure in other important areas, which allowed us not to stop settlements and payments for a second,” said Nikolai Zhuravlev, Deputy Chairman of the Federation Council.

Russia had a balanced budget policy for many years and reserves were built up. We try not to take loans abroad and even gradually reduce our dependence on foreign financing.

– Financial sovereignty begins with mental sovereignty. It is necessary to consider and study the best theories and practices of proven effectiveness, and not be blinded by those models that sometimes resemble financial sects. The criterion is simple: the benefit expressed today in our national development goals,” explained Alexander Galushka, deputy secretary of the Public Chamber of Russia.

Furthermore, the Central Bank adopted inflation targets and did not allow prices to accelerate too quickly. And the “last mile” of all financial transactions (card payments at points of sale) was transferred within the country several years before the sanctions were announced. It turned out that it was not in vain.

– We prepare in advance for various scenarios for the development of the situation. Therefore, over many years we have formed the national payment card system “Mir”, which works very well and has taken over the task of ensuring payments, which was previously carried out by foreign payment systems. We have created a system for transmitting financial messages – our Russian SWIFT,” said Mikhail Alekseev, President and Chairman of the Board of Directors of Otkritie Bank.


We have quite successfully resolved the problems within the country. But now is the time to move on. And create a system at the international level that allows cooperation with any friendly country without delay.

– Now is the ideal time to build new tools and platforms within the framework of international cooperation, within the framework of the BRICS. All previous global systems were built by Western countries. The casino always wins and the same thing happens there. The BRICS countries must come together to create their own infrastructure that does not discriminate against other actors and we ourselves must own it,” said Ivan Chebeskov, Deputy Finance Minister of Russia;

The main problem is cross-border payments. In particular, due to fear of secondary sanctions and disconnection from SWIFT, banks periodically refuse to work with Russian counterparties, even from friendly countries.

– The issues are being partly resolved, but it would be possible to start a debate on the introduction of a supranational currency, for example, as part of the agreements between the BRICS countries. Or think about introducing a digital financial asset, better than a stablecoin based on a multi-metal base, which could be the basis for interstate agreements with friendly countries,” suggested Stanislav Prokofiev, rector of the Financial University of the Government of the Russian Federation.

An experiment to introduce a digital ruble in Russia is already underway. It should become the third aggregate form of national currency, on par with cash and non-monetary funds. But they also plan to use it for international payments. In addition, similar experiments are also being carried out in several friendly countries, particularly China.

– There is nothing wrong with the digital ruble: it is a new form of money. We consider these technologies as the future of the financial market. Sovereignty does not mean self-isolation. And the current forum proves it: there are so many foreigners here who have signed agreements. In practice we confirm that we are not closed to our partners, the same applies to the financial market. There are many initiatives to attract investments and integrate financial markets with our friendly partners,” added Ivan Chebeskov.

At the same time, we really have something to share with our partners. The Russian banking system is one of the most advanced in the world.

– For three decades, we have created from scratch one of the most advanced banking systems in the world in terms of the opportunities it offers. If we compare it with the capabilities of users in other countries, they are much more modest. However, an important part of the technological processes was linked to foreign software. We are now implementing an unprecedented import substitution program for technological infrastructure in the financial system. This is a powerful incentive for the development of the domestic digital IT industry. The revolution is simple,” added Mikhail Alekseev.


However, the financial system does not live in a vacuum. It is impossible without the real economy sector. Therefore, the development of financial technologies, in turn, should stimulate the development of companies as a whole. According to the panelists, companies still lack stability. For example, the exchange rate of the national currency and bank loan rates. However, despite this, sanctions have already caused some companies to return to Russian jurisdiction.

– We have come a long way to return our companies to Russian jurisdiction, a redomiciliation law has been adopted, many have already moved, but this work must continue. The amendments to the Tax and Budget Codes, which the government submitted to the State Duma, are aimed at fairer taxation. They should stimulate the patriotism of our companies with tax measures, so that those who invest pay less taxes than those who withdraw money in dividends, abroad, without leaving it in their country,” explained Nikolai Zhuravlev.

At the same time, the potential for redomiciliation remains great. According to the Moscow Stock Exchange, only five issuers traded there last year. And, according to the Financial University, there are hundreds of companies of this type. Overall, there is room for improvement. In addition, one of the national priorities is to double the capitalization of the Russian stock market. Creating the most comfortable conditions for business within the country is a good way to achieve this.


From June 5 to 8, 2024, the XXVII Saint Petersburg International Economic Forum was held. The motto of the event is “The basis of a multipolar world is the formation of new growth points.” During four days at the forum, 982 agreements were signed with a total value of 6.43 trillion rubles. This is almost double what it was a year ago. This time 21.3 thousand guests from 139 countries participated in the SPIEF events. The largest delegations came from China, the United Arab Emirates, Zimbabwe, Kazakhstan and India.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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