Ministry of Finance of the Russian Federation
Ministry of Finance of the Russian Federation
23.05.2011

Statements of Deputy Finance Minister of the Russian Federation S.Storchak at an annual EBRD meeting

 

Russia not planning to place more Eurobonds in any currencies this year - Storchak

ASTANA. May 20 (Interfax) - Russia does not plan to place any more Eurobonds denominated in rubles or other currencies this year, Deputy Finance Minister Sergei Storchak told journalists.

"No, not for now," Storchak said as to whether Russia would place more ruble-denominated Eurobonds this year.

Regarding Eurobonds denominated in other currencies, Storchak said that no such issues are planned. "The minister has said that we will not be borrowing [on foreign markets]," he said. The Finance Ministry does not consider issuing ruble-denominated Eurobonds as foreign borrowing, he added.

"That's correct. We will place additionally within the OFZ curve," he said.

Russia has placed 50 billion rubles worth of additional Eurobonds, he said, the first time Eurobond placement in the national currency has exceeded initial issue volume (40 billion rubles).

Asked if issuing ruble-denominated Eurobonds was a higher priority for Russian than issuing in other currencies down the road, Storchak said that would likely not be the case. "I don't think so. The priority is always diversification [in borrowing]," he said.

The creation of a Russian Financial Agency is still on the agenda, and the Finance Ministry and government are working through the legal details, he said. "This has not been removed from the agenda. We are still working on the legal details," Storchak said.

 

Russia unlikely to reach GDP goals in near future - EBRD.

ASTANA, May 20 (RIA Novosti) - Russia is unlikely to attain its declared gross domestic product growth target of 4.5 percent in the next few years, Erik Berglof, chief economist at the European Bank for Reconstruction and Development, said on Friday at an annual EBRD meeting.

Russian Deputy Finance Minister Sergei Storchak told the meeting that the country's GDP would reach $2.3 trillion by 2015 expanding quicker than the rest of the world by about one percentage point.

Berglof said that Russia's current growth was only supported by high prices for oil, the country's key export.

He also said that Russia, unlike other emerging countries, was facing capital outflow, which stood at $21 billion in the first quarter of 2011 after about the same figure in the fourth quarter of last year.

The international financial crisis hit Russia most compared with other Group of 20 states, and the country needed a reform to reach such ambitious growth rates, Berglof said.

Russia's official GDP growth forecast stands at 4.2 percent in 2011. In April, the Economic Development Ministry cut its forecast to 3.5 percent in 2012 and 4.2 percent in 2013 from 3.9 percent and 4.5 percent, respectively. In 2014, the ministry forecasts a 4.6 percent growth.

 

Russian economic growth unlikely to exceed global average - EBRD

ASTANA. May 20 (Interfax) - The European Bank for Reconstruction and Development (EBRD) doubts that Russia's economy will grow faster than the global average, the EBRD's chief economist Erik Berglof told journalists on Friday.

At a meeting of EBRD officials on Friday, Russian Deputy Finance Minister Sergei Storchak said Russia would have GDP growth of about 4.5% in each of the next four years.

"We estimate that in the coming four years annual average GDP growth will be roughly 4.5% or almost one percentage point above the forecast global average," Storchak said. In nominal terms, the Finance Ministry forecasts GDP will rise to $2.3 trillion in 2015 from $1.5 trillion.

But Berglof said the growth Russia is experiencing is due to high oil prices.

Russia needs to enact sweeping reforms in order to achieve sustainable economic growth, he said.

Russia is seeing a net capital outflow, which is unusual for an emerging market. In addition, Russia had the biggest GDP decline among the G20 countries.

Moreover, many Russian projects are frozen pending the presidential elections next spring, he said.

Berglof also addressed the situation in Belarus, saying that the country will obviously need outside financial assistance. The EurAsEC organization is currently deciding on a loan from the anti-crisis fund, but any loan probably will not be enough to solve the problem. In any case, a cash injection alone will do little to change the situation: Belarus is in need of serious reform, he said.

 

Russia unlikely to reach GDP goals in near future - EBRD.

ASTANA, May 20 (RIA Novosti) - Russia is unlikely to attain its declared gross domestic product growth target of 4.5 percent in the next few years, Erik Berglof, chief economist at the European Bank for Reconstruction and Development, said on Friday at an annual EBRD meeting.

Russian Deputy Finance Minister Sergei Storchak told the meeting that the country's GDP would reach $2.3 trillion by 2015 expanding quicker than the rest of the world by about one percentage point.

Berglof said that Russia's current growth was only supported by high prices for oil, the country's key export.

He also said that Russia, unlike other emerging countries, was facing capital outflow, which stood at $21 billion in the first quarter of 2011 after about the same figure in the fourth quarter of last year.

The international financial crisis hit Russia most compared with other Group of 20 states, and the country needed a reform to reach such ambitious growth rates, Berglof said.

Russia's official GDP growth forecast stands at 4.2 percent in 2011. In April, the Economic Development Ministry cut its forecast to 3.5 percent in 2012 and 4.2 percent in 2013 from 3.9 percent and 4.5 percent, respectively. In 2014, the ministry forecasts a 4.6 percent growth.

 

Russia says EBRD should be cautious in Mideast

ASTANA, May 21 (Reuters) - The European Bank for Reconstruction and Development should tread carefully in expanding lending into North Africa and the Middle East, Russian Deputy Finance Minister Sergei Storchak said on Saturday.

The EBRD, created in 1991 to help fund development in the ex-communist countries of eastern and central Europe and the former Soviet Union, has agreed to expand into the Middle East and North Africa following popular revolts in the Arab world.

The expansion has been supported by the United States and Germany.

Storchak said that Russia, while supporting the expansion of the EBRD, believed that the development bank should not "force the process".

"Keeping in mind the development level of civil society in many of the countries where expansion is taking place, we could be creating big problems for ourselves from the start," he told reporters on the sidelines of the EBRD's annual meeting, held in Kazakhstan's capital Astana.

"As far as I know, we are not alone in this position."

 

Russian govt wants to control corporate foreign debt - deputy finance minister.

ASTANA, May 23 (RIA Novosti) - The Russian government, which provided some companies with financing to avoid losing assets used as collateral during the international financial crisis, has to find a way to curb private sector foreign borrowing, Deputy Finance Minister Sergei Storchak said on Saturday.

"Efforts to solve the problem through managing (directors) at companies with state participation showed that the measure is not working," Storchak told a news conference. "May be because the official is alone and opposed by 5, 10, 20 corporations, and it is impossible to solve the problem through directive measures. This is methodologically wrong."

He said the ministry wanted to find a way to influence the situation in general.

"This could be reservation elements, elements to prevent the corporate sector from raising loans abroad," Storchak said, adding that this could encourage private companies to borrow locally.