Russia prepares for state support of banks in case of new sanctions

WNM | Feb 14, 2019 at 11:01 PM

The Russian government, together with Russia's Central Bank has created a sufficient base to respond to possible new US sanctions against Russian banks, including in case of sanctions, state support of credit institutions is possible, First Deputy Prime Minister, Minister of Finance Anton Siluanov told reporters on the sidelines of the Russian Investment Forum in Sochi on Thursday.

"We have already passed several stages of such sanctions. All of them are unpleasant, but on the other hand, we have created the necessary basis to be able to respond to them, to be ready. If we are talking about banks, then we with the Central Bank created the necessary buffers to respond to such restrictions. Here, both liquidity and state support of such banks so that depositors do not suffer in any way, so that transactions can be carried out in these banks," he said.

Siluanov noted that in the event that US sanctions spread to the Russian national debt, foreign investors will also suffer. "We are now seeing interest in our debt from foreign investors. So this in the first place, will hit foreigners," he added.

On Tuesday, a group of US lawmakers submitted a bill, which in particular implies the imposition of sanctions against 24 FSB officers. They, according to the American side, are related to what happened in the Kerch Strait in November 2018. In addition, US lawmakers propose to limit transactions with newly issued Russian sovereign bonds, as well as impose sanctions on Russian LNG projects outside the Russian Federation and some banks.