The EU refuses to use the dollar in the finoperatsy with Russia

European companies are considering the idea of abandoning the dollar in deals with Russia and the Euro is the natural consequence of US policy, as stated on Friday, October 5, Russian Finance Minister Anton Siluanov.

“This decision of the two parties, so we are now going to work with our partners. I think they are also interested in. As you know, there were reports about an initiative to create a euro payment system-SWIFT, which will be used exclusively to European banks, European financial institutions for trading oil, oil products and other goods. I think that the Europeans are already thinking about it. We are ready to join such initiatives,” – said Siluanov, the question of whether European companies to use euros to buy Russian oil and gas next year.

The Minister noted that such a step would be “a response to the restrictions imposed by the United States, including companies and financial institutions that use the dollar in their transactions.”

The external pressure of sanctions at the present time is the main factor affecting the ruble, but the Central Bank of Russia and the Russian government know how to respond to such vibrations, said Siluanov.

“Of course, there are external factors associated with sanctions that affect the exchange rate. In 2017 and 2018, we have provided absolute stability of the exchange rate regardless of external factors associated with the oil prices, since we implemented the budget law. But to provide the same 100 percent exchange rate stability against external impacts associated with the sanctions, it is difficult,” – said Siluanov.

He added that the Finance Ministry and Central Bank are quite moderate policies in the foreign exchange market.

“In General, the understanding of how we should respond to the situation there. I hope that the actions of the government and the Central Bank will contribute to exchange rate stability”, – said Siluanov.

He added that the Russian national currency has a sufficient margin of safety, although due to the sanctions, the volatility of the financial markets possible in the short term.
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