Russia’s VTB Bank President Andrey Kostin says that he suggested to gradually switch to signing contracts in various areas, including armaments, in national currencies, noting that such transition would take no less than five years.
According to Kostin, his proposals on the use of the dollar amid the deteriorating situation caused by the US sanctions do not provide for complete de-dollarization, but rather a gradual switch to trade in national currencies, for example within the Eurasian Economic Union (EAEU) or in certain areas, such as armaments.
“This plan is absolutely long-term and seeks a change in the global trend rather than a split-second one-time solution… I think it will take at least five years. We need to move, take small steps, at least in new contracts, for the future. I do not think that everything needs to be reviewed immediately. I hope that the situation will not be so critical,” Kostin said.
After being asked if Putin supported his proposals on de-dollarization of the Russian economy, Kostin responded: “in general, yes.”
At a meeting with Putin in July, Kostin asked the president to back the proposals prepared by the VTB and aimed at de-dollarization and restricting the use of offshore structures.
On September 14, Kostin unveiled his four-part plan to abandon the US dollar in Russia’s transactions with foreign states. The first part is an accelerated transition to export-import transactions with foreign countries in other currencies such as euro, yuan or ruble.
The second part implies the transfer of legal addresses of Russia’s largest holdings to Russian jurisdiction, and the third foresees the creation of a Russian depository to place Eurobonds. Finally, the fourth part is to start licensing all participants of the stock market in a way that would allow them to work under the same rules.