Economist Zaostrovtsev: Talking to foreign business in forceful terms is an empty number

The restriction on the exit of foreign business from Russian assets, which was announced by Russian Prime Minister Mikhail Mishustin, can be called temporary nationalization. Andrey Zaostrovtsev, a professor at the Higher School of Economics, said this in a conversation with a Rosbalt correspondent.

“We see that the risks of default are growing, sanctions have been imposed on the reserves of the Central Bank. These are the strongest sanctions ever. The currency is in short supply, and the authorities somehow want to stop its withdrawal from the country. Many foreign entrepreneurs are nervous, they want to sell bonds, and now they are told “no, you cannot do this.” But as soon as these measures are canceled, they will instantly sell them – this will be the reaction, ”the economist explained.

According to Zaostrovtsev, in such conditions, even those who have not wanted to do so until now will want to quickly sell Russian assets.

“It is not very effective to operate on the market with forceful terms. It’s like if you had a foreign currency deposit, and they tell you: no, we won’t give you a dollar for 100 rubles now. Only later. Although then for 100 rubles, perhaps, it will be possible to buy only 90 cents, – the expert noted. – And to declare political pressure on foreign investors is like seeing it as the reason for queues at ATMs. Of course, it’s complete nonsense.”

Recall that the head of the Russian government, Mikhail Mishustin, at a meeting on economic issues, said that “foreign entrepreneurs are forced to be guided not by economic factors, but to make decisions under political pressure.” According to him, temporary restrictions on the exit from Russian assets are introduced in order to enable businesses to make informed decisions.