Russian government says it will guarantee stability of its financial markets and companies

The Russian government declared that it is closely monitoring the situation in the financial markets and that, if necessary, additional measures will be adopted to guarantee its stability in the face of Western sanctions due to the Russian invasion of Ukraine.

“To date, Russia has sufficient financial resources to ensure the stability of the financial system in conditions of sanctions and external threats.”, indicates the Executive in a statement.

The Russian Executive adds that “it has clear plans on the measures to”defend the financial markets and certain companies from possible sanctions and other threats”.

The financial market and large companies, according to the Russian authorities, “are fully prepared” to apply the action plan designed for this eventuality, since stress tests were carried out with the consequences of sanctions, assures the Government.

The Government reported that the placement of public debt bonds, one of the objectives of Western sanctions, will be suspended in the coming weeks.

He recalled that the Russian Treasury has “a significant amount of temporarily available funds”: more than 4.5 billion rubles (US$ 56,557 million or 49,799 million euros) compared to the 2.2 billion rubles (US$ 27,634 million or 24,343 million euros) that it intends to raise on the market in 2022.

“This allows for a flexible approach to the placement schedule” of sovereign debt, he said.

“The Ministry of Finance, together with the Bank of Russia, will continue to closely monitor the situation in the financial markets and, if necessary, will take additional measures to maintain financial stability.”, emphasizes the Government.

It adds that the Executive will help guarantee the sustainable operation of companies affected by Western sanctions and the preservation of jobs and wages.

For its part, the Kremlin said today that it expects a prompt stabilization of the country’s markets, after what it described as “unavoidable emotional reaction” to the military operation launched by Russian President Vladimir Putin.

“Yes, it’s an unavoidable emotional reaction, but at the same time it will definitely settle down and become more balanced and calm soon.” said the spokesman for the Russian Presidency, Dmitri Peskov, at a telephone press conference, commenting on the collapse of the Moscow Stock Exchange, which lost up to 45.2% after resuming operations. “The necessary solidity reserve was created”, he explained.

After the stock market crash, which forced the temporary suspension of operations, the Moscow floor reduced losses to 34.51%.

Peskov announced that the Russian president will meet this Thursday with directors of large companies in the country to analyze the situation and exchange opinions.