Putin called for greater move to national currency in mutual settlements in the CIS


THE VILLAGE OF BURABAY /KAZAKHSTAN/. Russian President Vladimir Putin called for greater move to national currency in mutual settlements in the CIS. He stated this at a meeting of the Council of CIS heads of state in expanded format. “We need to move more expeditiously on a supranational currency in the settlement,” he said.

The head of state reminded about the agreement on free trade zone in CIS was signed in 2011. “It is necessary to fully unleash its potential and to simplify the conditions for the movement of goods and investment flows,” Putin said.

He also stated that the combined GDP of the Commonwealth countries in the first half of 2015 have declined, as well as investments in fixed assets. “The trade turnover between our countries has also fallen. In this situation, consider a set of measures to reduce the dependence of national economies on external markets and think about the revival of business ties within the CIS”, – he added.

The Russian President said that Russia is completing the ratification of the Agreement on integrated currency market of the Commonwealth. “The entry into force of this document will allow you to pursue a coherent monetary policy, and in the future may be, and to form a common financial market of the CIS”. – he stressed.

On the possible formation of a common Finance

The Russian President hopes for a coordinated currency policy of the CIS countries with the possible future formation of a common financial market. He said this, speaking at a meeting of the Council of CIS heads of state in narrow format.

Putin noted that Russia completes ratification of the Agreement on integrated currency market of the CIS. This agreement was signed in Ashgabat in December 2012, Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia and Tajikistan.

The agreement on integrated currency market of the CIS was submitted to the Duma for ratification in late August 2015.

The agreement included provision for direct admission of resident banks of the parties on the domestic foreign exchange markets of each other to conduct interbank conversion operations on the conditions of legal regime not less favorable than for national commercial banks.

This will contribute to the increased use of national currencies for payments in foreign trade and financial services and, thus, create conditions for increasing the liquidity of the market of national currencies, it was noted in the explanatory note to the document

Development of close cooperation in the CIS is priority of foreign policy of the Russian Federation

The close cooperation within the CIS remains a priority of Russia’s foreign policy, said the President of the Russian Federation.

He noted that next year the CIS is celebrating its 25th anniversary and during this time, the Association confirmed its usefulness. “The development of close multidimensional cooperation within the CIS is a constant priority of the foreign policy of Russia”, – Putin said.

According to the President of the Russian Federation, in the CIS has accumulated a great experience of joint work in various areas, including in the solution of socio-economic issues.

“Today in our country operates a number of negative external factors. This fall in prices of some of our major exports, uncertainties in the global economy, rising political tensions in many regions,” he listed Putin. He stressed that all this leads to a slowdown in economic activity in the region. Thus, the combined GDP of the Commonwealth countries in the first half of 2015 have declined, “declined” and the trade turnover between the CIS countries. “In this situation, consider a set of measures to reduce the dependence of national economies on external markets and think about the revival of business ties within the CIS”, – said Putin.