Review the Bank of Russia on foreign currency transactions related to the purchase by the sovereign wealth Fund stake in Sberbank

The Bank of Russia on 19 March 2020 will begin the sale of foreign currency on the domestic market in connection with the sale of the Bank of Russia of foreign currency from the national welfare Fund (NWF) to pay for the acquisition of the equity stake of Sberbank.

Due to the fact that markets are now seeing increased volatility, the Bank of Russia has created a mechanism for sales, designed to strengthen the stabilising effect of fiscal rules at lower oil prices and thereby contribute to economic and financial stability. Additional sales of the Bank of Russia calculated on the basis of full reimbursement to the drop down supply of foreign currency on the internal currency market from-for decrease in export earnings from the sale of oil, oil products and natural gas when prices fall below USD 25 per barrel of Urals.

Daily sales of foreign currency associated with the payment transaction will vary depending on the deviation of the price of Urals oil below the level of USD 25 per barrel. If you exceed this level of activity will not be performed.

These operations will be carried out in addition to the standard operations on sale of currency from the Fund in the domestic foreign exchange market in the framework of fiscal rules.

The Bank of Russia will follow this mechanism of sales of foreign currency on the domestic market until September 30, 2020. On the mechanism of sale of foreign currency after September 30, 2020 the Bank of Russia announced.

19 Mar 2020