Market Analysis

At Russia's annual economic forum in St. Petersburg, central bank Governor Elvira Nabiullina emphasized the importance of integrating Russia into the global economy despite facing Western sanctions following its military actions in Ukraine since early 2022. 

Formerly attended by top Western bankers and executives, the forum now sees participation mainly from countries maintaining friendly relations with Russia, including the presidents of Bolivia and Zimbabwe joining Russian President Vladimir Putin at the upcoming session.

Nabiullina stressed the need for Russia to establish robust, independent systems for financial settlements and payments, along with interconnected deposit systems, mutual recognition of ratings, audit reports, and insurance policies. She underscored Russia's aspiration to lead in financial technology development but acknowledged challenges in relying on solutions from other nations.

Finance Minister Anton Siluanov emphasized securing Russia's financial sovereignty, while Economy Minister Maxim Reshetnikov outlined priorities including investment support, sovereign technology development, and addressing labor market issues.

According to central bank data, foreign investment in Russia has decreased by approximately 40%, amounting to $696 billion, with a significant portion originating from Russian firms registered in Cyprus and the Netherlands.

Maxim Oreshkin, deputy head of the presidential administration, underscored the importance of modernizing Russia's armed forces, describing it as crucial for supporting a strong economy in the coming years.

Paraphrasing text from "Reuters" all rights reserved by the original author.