Bastrykin has linked the fall of the ruble with the use of insider information

The sharp fall of the ruble has occurred not only because of the decline in oil prices and the imposed against Russia sanctions, but also because “the strongest speculative pressure” on the ruble, said the head of the Investigative Committee of Russia (TFR) Alexander Bastrykin.

“However, some major participants in the foreign exchange market built their speculative strategies with financial instruments as if they were all the details known about the dynamics of further exchange rate fluctuations of the national currency. It seems that without knowledge of the relevant insider information they are unlikely to commit such speculative transactions involving high risk and would use this for virtually all available liquidity”, — said Bastrykin, speaking at the “round table” “Actual problems of criminal law science and law enforcement practice of the CIS countries”.

Chapter RCDS stressed that insider trading and manipulation of the currency market provides for criminal liability, however, for three years under the relevant article of the Criminal code was initiated only three cases. “This is due not only to objective difficulties and lack of skills to identify such crimes. These articles, in fact, are the norms whose application is virtually impossible,” said Bastrykin.

Chapter RCDS also indicated that Western sanctions have not touched the short-term financing, “which formed a speculative capital, putting pressure on the national currency”. In December 2014, after beginning a sharp decline of the ruble, Bastrykin called the fight against currency speculators who violate the law, “the most important issue to ensure the stabilization of the economic situation in the country”.

“Swings, and weakening of the national currency, entail extremely negative consequences for the economy, including inflation. And we need to fight hard,” said Bastrykin, proposing to amend the criminal code amendments to insider trading and market manipulation in the monetary sphere became an aggravating circumstance.

Later the President of Russia Vladimir Putin demanded from the Federal security service to pay more attention to combating economic frauds, which lead to fluctuations of the national currency. “We need to work closely with the accounts chamber, Rosfinmonitoring and other Supervisory bodies, more to reveal and prevent attempts cybermancy on the Russian stock and currency markets, which lead to exchange rate fluctuations and hurt the country’s financial system,” — said Putin, speaking at the Collegium of the FSB.