11:04 GMT11 July 2020
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    A document is being developed that takes into account proposals made by the head of VTB Andrei Kostin, and within a week or two will appear on the desk of Prime Minister Dmitry Medvedev, according to sources.

    The Russian Government is working on reducing the economy's dependence on the dollar, including by stimulating transactions in national currencies, the press service reported when addressing recent discussions about de-dollarization.

    “At the same time, the government, its financial and economic bloc, is working on the issue of reducing the economy’s dependence on the US currency, including by creating incentives and mechanisms to switch foreign trade settlements to national currencies. Work in this direction is not related to any personal initiatives expressed at various venues and reflects the strategic direction of the government,” the press service noted.

    The Bell earlier reported, citing three people familiar with the discussion, that the Russian government is preparing a bill to completely free the country from the US dollar.

    The Russian government's plan does not suggest any restrictions or bans on transactions in dollars, its main goal is to simplify settlements in national currencies, to facilitate exchange controls and to create convenient mechanisms that will allow payments in any currency without unnecessary losses.

    READ MORE: Russia's Switch to Deals in National Currencies to Take at Least 5 Years — VTB

    VTB's head Andrei Kostin earlier presented a plan containing four priority tasks that need to be fulfilled in order to free the Russian economy from dependence on the dollar.

    His proposals were supported by the Russian Ministry of Finance.

    At a meeting with Putin in July, Kostin asked the president to support the proposals developed by VTB aimed at de-dollarization and reducing the use of offshore structures.


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    de-dollarization, transactions, VTB, Dmitry Medvedev, Russia
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