Putin pressuring oligarchs to shore up rapidly devaluing ruble — report
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Russian dictator Vladimir Putin was set to hold an emergency meeting to discuss tighter currency controls as ruble continues its unprecedented slide, the Financial Times reported on Aug. 16.
Just days ago, the Russian Central Bank (CB) attempted to remedy the situation by hiking interest rates from 8.5% to 12%, but the Russian currency continued to devalue.
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According to sources, Putin will consider proposals from Russia’s Finance Ministry to demand exporters convert a larger portion of their foreign currency earnings, most of which are currently overseas, into rubles.
"The finance ministry’s proposals, seen by the Financial Times, would require exporters to sell up to 80% of their foreign currency revenue within 90 days after delivery and ban companies that refused to comply from receiving government subsidies," the article reads.
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Additional proposed measures also include:
— Suspending dividend payments and loans abroad, even in the so-called “friendly” countries;
— Suspending import subsidies;
— Restriction on foreign currency swaps;
— Lowering the cap on how much foreign currency exporters are allowed to take out of Russia.
According to the report, the only proponent of such strict measures is Russia’s Finance Minister Anton Siluanov.
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At the same time, currency controls are a "delicate matter" for CB head Elvira Nabiullina. She has previously stated she would resign if such measures were implemented. However, she has remained in her position since the full-scale invasion of Ukraine.
On Aug. 14, the Russian ruble has fallen below RUB 100 for $1. The Russian currency has fallen 9% since the beginning of August and 40% since the start of the year, making it one of the three weakest currencies in the world.
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