Russia is expanding currency settlements in euros and devaluation for its vast energy exports in an attempt to avoid the dollar and insulate Moscow from the American-led worldwide financial system. The Russian economy minister, Maxim Oreshkin said that the Russia wanted to reduce its exposure to the United States by attracting more investors through rouble settlements.
Mr. Oreshkin said that, “We have a very good currency and its stable. So, why not use it for worldwide transactions? We want sales of oil as well as gas in devaluation at some point. The question here is not to have any expensive costs from performing it that way, but if the board financial infrastructure is generated, if the initial costs are fairly lower, then why not?”
Moscow has seemed to offset its exposure to the economic sanctions of the United States through a de-dollarisation scheme that has been the finance bond programme ministry issue brand new debtin euros and devaluation. The central bank has minimized its holdings of the United States treasury debt from $96bn to just $8bn in the last 18 months.
Mr. Oreshkin stated that the popularity of the domestic bonds of the Russia among foreign investors who own 29 % of its devaluation debt suggested that Moscow would be able to sell its energy exports in domestic currency. European investors, companies are buying devaluation of assets. If you observe the popularity of the local bond market, it’s pretty large.
It means that devaluation assets are already on the balance sheet of EU investors. So at one point in the future energy firms also could use rouble services. You have negative rates in euros and also have positive rates stable and predictable expansion. There is no capital controls and it is completely flexible, so you can get in or get out at any time.