On 27 October 2023, the Bank of Russia Board of Directors decided to increase the key rate by 200 basis points to 15.00% per annum.

    Current inflationary pressures have significantly increased to a level above the Bank of Russia’s expectations. Steadily rising domestic demand is increasingly exceeding the capabilities to expand the production of goods and the provision of services. Inflation expectations remain elevated. Lending growth paces are invariably high. The updated medium-term parameters of fiscal policy assume a slower than expected decline in fiscal stimulus in the years ahead. Therefore, it is required to additionally tighten monetary policy to limit the upward deviation of inflation from target and return it to 4% in 2024. The return of inflation to target and its further stabilisation close to 4% also means that tight monetary conditions will be maintained in the economy for a long period.
      In its further key rate decision-making, the Bank of Russia will take into account actual and expected inflation dynamics relative to the target and economic developments over the forecast horizon, as well as the risks posed by domestic and external conditions and the reaction of financial markets. According to the updated forecast of the Bank of Russia, annual inflation will range from 7.0 to 7.5% in 2023. Given the current monetary policy stance, annual inflation will decline to 4.0–4.5% in 2024 and stay close to 4% further on.

    Inflation movements.

    Current inflationary pressures have significantly increased to a level above the Bank of Russia’s expectations. In the third quarter, seasonally adjusted price growth averaged 12.1% in annualised terms (compared to 5.1% in the second quarter). Similarly, core inflation went up to 9.6% (compared to 5.7% in the second quarter). As of October 23, annual inflation rose to 6.6% from 6.0% in September.
    Higher inflationary pressures are seen across an increasingly broader range of goods and services. This means that a steady rise in domestic demand is progressively exceeding the capabilities to expand the production of goods and the provision of services. These conditions boost businesses’ appetite to pass higher costs on to consumers, which is driven among others by the weakening of the ruble and labour shortages. 

   Households’ inflation expectations remain elevated. Businesses’ price expectations have continued to rise, reaching multi-year highs. Analysts’ inflation expectations for 2023 and 2024 have increased as well, but they are anchored close to 4% for the medium term.

   According to the updated forecast of the Bank of Russia, annual inflation will range from 7.0 to 7.5% in 2023. Given the monetary policy stance, annual inflation will decline to 4.0–4.5% in 2024 and stay close to 4% further on.

#Bank_of_Russia
#bank
#Russia
#the_key_rate 

 Measures to support National Payment System entities in 2023

  In 2022, the Bank of Russia implemented a package of measures to support National Payment System (NPS) entities. They were approved due to changes in the conditions of money transfers amid the restrictions imposed by foreign states and helped timely reduce the burden of NPS entities.

  These measures expire on 1 January 2023. The Bank of Russia has analysed NPS entities’ performance as regards money transfers over the effective period of the support measures and found out that destabilising factors still affect the payment market and might cause difficulties for NPS entities in their current operations. 

  Considering these findings, the Bank of Russia has decided to extend the following support measures: 

1) Non-application of enforcement measures for a failure to register a payment system operator in the case of credit institutions’ compliance with the criteria stipulated by Part 39 of Article 15 of Federal Law No. 161-FZ, dated 27 June 2011, ‘On the National Payment System’ — until 1 July 2023.This measure is extended as the transformation of correspondent relationship continues, which causes fluctuations in the amount of money transfers on correspondent accounts.

2) Non-application of enforcement measures against credit institutions for a failure to offer mobile applications to their clients enabling money transfers via the Faster Payments System, provided that they offer other remote banking systems for these purposes — until 1 April 2023. 

However, the Bank of Russia does not plan to extend the measure associated with the non-recognition by the regulator of a payment system as important in the case of its compliance with the established criteria of importance. 

This support measure will terminate beginning from 1 January 2023 as payment system entities have had sufficient time to adjust their business processes to the requirements set by the Bank of Russia in the case of recognising a payment system as important. 

@Central Bank of Russia 

The total volume of Norilsk Nickel's capital investments in 2023 will grow by 10% by the end of this year, to $4.7 billion. 

This year, Norilsk Nickel's capital investments will grow by 2 times, amounting to more than 250 billion russian rubles, Sergey Dubovitsky, Senior Vice President and head of the strategy, logistics and resource support unit of Norilsk Nickel, reported earlier. 

Next year, Norilsk Nickel expects the peak of its investment cycle. 

The investment program of 2023 provides for the financing of key projects, such as the "Sulfur Program 2.0", mining projects, projects to maintain the infrastructure of the fuel and energy complex of the Norilsk industrial district and the replacement of equipment and capitalized repairs, as well as social projects. 

Norilsk Nickel once again notes the voluntary (i.e. not conditioned by sanctions) refusal of foreign partners to cooperate with the company.To respond to this challenge, a set of measures aimed at maintaining operational activities and achieving the planned production and investment plans has been developed and is being implemented.The main initiatives include adjusting the sales strategy, import substitution of equipment and technology suppliers, building new logistics chains and entering other markets and financing instruments, Norilsk Nickel explained.

The budget should provide the necessary financing for the implementation of the company's long-term development strategy, its key strategic and sustainable development projects, and at the same time is aimed at maintaining financial stability in the face of current geopolitical risks and new challenges. 

The company also intends to continue fulfilling its social obligations and financing activities aimed at improving the reliability of fixed assets and reducing environmental impact.The budget was adopted by the board of directors unanimously, the company noted.The budget has been drawn up taking into account current external challenges and is aimed at achieving high performance in conditions of external turbulence. 

#NorilskNickel

  Минфин России предлагает привлекать граждан на фондовый рынок софинансированием вложений, страховкой на 2,8 млн рубМосква. 

10 декабря 2022 год. 

    Концепция программы долгосрочных сбережений, разработанная Минфином РФ, предполагает участие граждан на финансовом рынке с возможностью софинансирования от государства и страхованием вложений на сумму 2,8 млн рублей, сообщила пресс-служба министерства. 

Предполагается, что программа позволит получать дополнительный доход к государственным выплатам после выхода на пенсию или в случае особых жизненных ситуаций до момента назначения пенсии, сообщил Минфин. 

Президент СРО Ассоциации НПФ "Альянс пенсионных фондов" Сергей Беляков по итогам общественного совета при Минфине, где, в том числе, рассматривался этот вопрос, пояснил, что речь идет о более защищенных, чем может рынок предложить сейчас, вложениях граждан в инструменты финансового рынка."Очевидно, что бенефициарами участия в деятельности финансового рынка, изменения качества финансового рынка могут и должны быть граждане. (...) Говоря о самом продукте важно заметить, что он прогарантирован государством, то есть это, по сути безрисковое вложение граждан на финансовый рынок с возможностью заработать, потому что финансовый рынок развивается. И предусмотрен механизм софинансирования таких вложений, сбережений со стороны государства", - сказал он."Это не только про ИИС третьего типа, я бы ушел от этой терминологии, потому что она иногда порождает какую-то неопределенность; (...) в том числе, но не только. Что это означает для граждан - есть возможность вложить свои деньги в продукты, которые находятся и развиваются на фондовом рынке, на финансовом рынке. Граждане традиционно скептически относятся к таким возможностям, потому что всегда это ассоциируется с риском. Государство, понимая это и ставя задачу развития финансового рынка, принимает решение о том, что такие вложения будут гарантированы, будут защищены от рисков. Это ключевой элемент, который должен сформировать доверие к таким продуктам и мотивировать граждан вкладывать деньги", - пояснил Беляков."Второе, мы видим, как меняется структура фондового рынка здесь и сейчас. Раньше, когда была альтернатива использования возможностей зарубежных площадок, мы могли выбирать. Сейчас такой возможности нет, это в хорошем смысле обрекает пользоваться благами, которые дает российская площадка. Если вы хотите заработать сейчас, если у вас есть деньги на то, чтобы заработать, вы не можете пройти мимо российского фондового рынка, он дает такую возможность. (...) предложенный продукт дает мотивацию, снижая риски и еще помогая принять такое решение за счет софинансирования со стороны государства. Воспользуется гражданин этим или нет, вопрос, потому что ключевой элемент продукта добровольность. (...) система мотивации такая, чтобы сподвигнуть гражданина к возможности заработать. Есть квалифицированные институциональные инвесторы, которые являются провайдерами по продаже разных продуктов для вас. Но защищаются (в рамках предлагаемой системы - прим. ИФ) не они, а вы как розничный инвестор, делая определенный вклад через институциональных, которые на рынке работают", - пояснил Беляков. По его словам, сейчас идет процесс проработки содержания конкретного продукта.В свою очередь, министр финансов РФ Антон Силуанов отметил, что предполагается создание нескольких возможностей для инвестирования. "Если люди хотят вложиться в бумаги, мы говорим в первую очередь о бумагах российских эмитентов, то им будет предоставляться такая возможность, в том числе, через инструменты ИИС. Кто-то хочет поучаствовать на финансовом рынке, получить большую доходность, чем депозиты - пожалуйста, мы будем предлагать формы участия на рынке с использованием индивидуальных инвестиционных счетов. А есть вторая группа предложений - можно сделать долгосрочные накопления. И как раз для граждан, которые хотят себе откладывать гарантированно с доходностями на долгую перспективу, тоже создается такой инструмент. Инструмент будет использоваться через соответствующие финансовые институты, через надежных агентов", - сказал Силуанов.Говоря о сроках введения такой системы, Силуанов отметил, что необходимо создать законодательную базу. "Мы договорились, что в первой половине следующего года будем работать с законодателями, чтобы сделать соответствующее правовое поле", - сказал он.Участие в программе добровольное, отмечает Минфин.Программа предусматривает софинансирование вложений граждан государством до 36 тыс. рублей в год. Также граждане могут получать налоговый вычет до 52 тыс. рублей ежегодно при уплате взносов в программу до 400 тыс. рублей. Срочность продукта - от 10 лет.Кроме того, предусматривается страхование государством внесенных средств по аналогии с банковскими вкладами на сумму 2,8 млн рублей.Сформированные за весь период накоплений в рамках программы средства также могут быть выплачены наследникам за исключением случаев назначения пожизненной пенсии.Контроль за инвестированием средств будет осуществляться Банком России.Гражданин может заключить договоры с несколькими операторами, повышая объем накоплений, при этом диверсифицируя риски.Сформированные средства будут вкладываться в ОФЗ, инфраструктурные облигации, корпоративные облигации и прочие ценные бумаги, сообщил Минфин. Конкретный круг инструментов, которые могут входить в предлагаемый государством продукт, еще обсуждается, отметил Беляков. 

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The Bank of Russia has registered a new payment system "Astrasend".

The payment system is designed for sending transfers abroad and within the Russian Federation. The list of countries to which funds can be sent will be published on the website later. 

Transfers are accepted and issued in russian rubles and US dollars. 

Astrasend became the second payment system registered in 2022. The Bank of Russia added the first Hello system to the list in April of this year. 

#Astrasend

#payment_system

#Bank_of_Russia

The Ministry of Finance of Russia fulfilled its obligations to pay coupon income on Eurobonds.

The Ministry of Finance of Russia informs that in accordance with the Decree of the President of the Russian Federation dated June 22, 2022 No. 394 “On the temporary procedure for the execution of state debt obligations of the Russian Federation to residents and foreign creditors, denominated in government securities, the nominal value of which is indicated in foreign currency” funds for the payment of coupon income on bonds of the external bonded loan of the Russian Federation maturing in 2042 (ISIN: XS0767473852, US78307ADE01) in the amount of RUB 4.9 billion. (the equivalent of USD 84.4 million) were received by the paying agent for Eurobonds (NCO JSC National Settlement Depository). 

Thus, the obligations to service government securities of the Russian Federation have been fulfilled by the Russian Ministry of Finance in full.

Ministry of Finance of the Russian Federation
+7 (495) 987-93-72

Investments in the oil and gas industry until 2030.

The Russian state financial enterprise TREASURY offers foreign Chinese investors, according to the investment agreement signed between Russia and China, investments in the Russian oil and gas sector Gazprom. 

Investments involve the investment of funds in the Russia-China gas transportation system under the guarantees of the Russian Government or the Federal Treasury of Russia. 

Minimum investment: any amount (depends on negotiations with the Chinese side).

Investment period: until 2030 

Annual percentage: 9.5% per annum + premium* 

*the premium is negotiated separately in the Contract. 

Payment of interest and body parts: quarterly, on the 15th of the last month in the quarter. 

The Investment Agreement is confirmed by 100% guarantees of the financial institution of Russia.

Administration of the Treasury of the Krasnodar branch.

On 16 September 2022, the Bank of Russia Board of Directors decided to cut the key rate by 50 basis points to 7.50% per annum. Current consumer price growth rates remain low, contributing to a further slowdown in annual inflation. This is due to both the influence of a set of one-off factors and subdued consumer demand. Developments in business activity are better than the Bank of Russia expected in July. However, the external environment for the Russian economy remains challenging, invariably putting significant constrains on economic activity. Inflation expectations of households and price expectations of businesses remain elevated.

Annual inflation declined in August to 14.3% (after 15.1% in July); according to a 9 September estimate, it is down to 14.1%.

Monetary conditions continued to ease, and the Bank of Russia views them as overall neutral. Following the July decline in the key rate, yields on short- and medium-term OFZs decreased. Yields on long-term OFZs did not change significantly. There was a further drop in loan and deposit, especially short-term, rates.

The Bank of Russia Board of Directors will hold its next rate review meeting on 28 October 2022. 

*press-center of Bank of Russia

RUSSIA - FEDERAL LOAN BONDS. 

The Ministry of Finance of Russia plans to place federal loan bonds by the end of September for 40 billion rubles, the first auction is on September 14, 2022. 

Auctions are also scheduled to be held on September 21 and September, 28. 

The Bank of Russia is canceling the requirements for commodity trading systems to have backup complexes of software and hardware, conduct an operational audit and form a technical committee. This will significantly reduce the costs of the systems, which will serve as an incentive to attract new trading platforms and bidders to the organized commodity market. 

The Bank of Russia is expanding the possibilities for setting a market price for goods. It will be determined not only by the results of trading in the mode of non-address transactions, as it is now, but also by the results of one-sided auctions, subject to the competitiveness of the participants and the competition of price offers.


@Treasury

 The Bank of Russia lowered the key rate to 9.5% per annum. 

  Reasons for the decline: 

1. Price growth in May - completely stabilized. 

2. As of May 31, 2022, the decline in economic activity has halted. 

3. Monetary conditions softened in some sectors of the economy, but generally remained tight. 

4. Fiscal policy becomes stimulating. 

According to the forecast, the key rate this year will be 9-12% per annum. 

Source: TASS, Central Bank of Russia.  

The Board of Directors of the Bank of Russia decided to reduce the key rate from May 27, 2022 to 11.00% per annum. 

The inflow of funds for term ruble deposits continues. Credit activity remains low. 

The risks to financial stability have decreased somewhat. Capital controls have become softer. 

The Bank of Russia will make further decisions on the key rate taking into account the actual and expected dynamics of inflation relative to the target, the process of structural adjustment of the economy, as well as assessing the risks from internal and external conditions and the reaction of financial markets to them, and admits the possibility of lowering the key rate at the next meetings. 

The next meeting of the Board of Directors of the Bank of Russia is scheduled for June 10, 2022. 

The Bank of Russia Board of Directors decided to cut the key rate by 300 basis points to 17.00% per annum from 11 April 2022. 

External conditions for the Russian economy are still challenging, considerably constraining economic activity. Financial stability risks are still present, but have ceased to increase for the time being, including owing to the adopted capital control measures. There is a steady inflow of funds to fixed-term deposits. 

Annual inflation will continue to rise due to the base effect. Yet, the latest weekly data point to a noticeable slowdown in the current price growth rates, including owing to the ruble’s exchange rate dynamics. 

The tightening of monetary conditions already in place is partly offset by the lending support programmes launched by the Government and the Bank of Russia, but it will continue to limit pro-inflationary risks. 

Today’s decision reflects a change in the balance of risks of accelerated consumer price growth, decline in economic activity and financial stability risks. In its further key rate decisions, the Bank of Russia will take into account risks posed by external and domestic conditions and the reaction of financial markets, as well as actual and expected inflation dynamics relative to the target and economic developments over the forecast horizon, and holds open the prospect of further key rate reduction at its upcoming meetings. 

The Bank of Russia Board of Directors will hold its next rate review meeting on 29 April 2022. 

The procedure for issuing permits for certain operations. 

On March 25, 2022, the Board of Directors of the Bank of Russia decided: 

1. For the mandatory sale of foreign currency by a resident participating in foreign economic activity within a different period than that established by paragraph 2 of Decree of the President of the Russian Federation No. 79 dated February 28, 2022. 

2. For the non-compulsory sale of foreign currency by a resident participating in foreign economic activity in the manner prescribed by clause 2 of Decree No. 79, in the amount of foreign currency. 

3. For the implementation of operations for payment by a resident of a share, contribution, share in the property (authorized or share capital, unit fund of a cooperative) of a legal entity - non-resident. 

4. For the implementation of operations on the contribution of a resident to a non-resident within the framework of the implementation of a simple partnership agreement with investment in the form of capital investments (agreement on joint activities). 

!!! To consider the issue of issuing a permit by the Bank of Russia, a resident submits an application to the Bank of Russia according to the approved forms.

Bank of Russia Board of Directors 

 Bank of Russia Board of Directors

 On March 25, 2022, the Board of Directors of the Bank of Russia decided:

    In accordance with clause 1 of Decree of the President of the Russian Federation No. 126 dated March 18, 2022 “On Additional Temporary Economic Measures to Ensure the Financial Stability of the Russian Federation in the Sphere of Currency Regulation”, to establish the following amounts of individual transactions of residents and non-residents from March 27, 2022: 

1. Prepayment or advance payment by residents in favor of foreign legal entities and individuals (hereinafter referred to as non-resident) is carried out within 30% of the amount of obligations stipulated under each contract (agreement) of a resident of the following type: 

- Contracts, the terms of which provide for the provision of services by a non-resident. 

- Contracts, the terms of which provide for the performance of work by a non-resident, the transfer by a non-resident of information, the results of intellectual activity, including exclusive rights to them. 

2. The limitation on the amount of advance payment or advance payment provided for in paragraph 1 of this decision does not apply to the following contracts (agreements): 

- Contracts (agreements) providing for the purchase from a non-resident and (or) the provision of services by a non-resident related to the purchase on the territory of the Russian Federation (outside the territory of the Russian Federation) of fuels and lubricants (bunker fuel), food, inventory and other goods ( with the exception of spare parts and equipment) necessary to ensure the operation and maintenance of vehicles, regardless of their type and purpose, en route or at intermediate stops or parking; 

- Contracts (agreements) providing for the provision of financial services by non-residents to residents, including insurance and reinsurance contracts. 

3. The purchase of foreign currency in the domestic foreign exchange market of the Russian Federation by non-resident legal entities that are foreign persons of states that commit hostile actions is carried out in the amount of 0 US dollars or other foreign currency. 

4. The amount of transactions within 30% of the amount of obligations under the contracts (agreements) specified in paragraph 1 of this decision is determined using the official exchange rates of foreign currencies against the ruble established by the Bank of Russia on the date of execution by the authorized bank of residents' instructions for making prepayment or advance payment . 

Bank of Russia Board of Directors

March 26, 2022