Russia needs to rethink the context of its export-dependent economy to ensure that industry works for the domestic market but most capital controls should be lifted, central bank chief Elvira Nabiulina said today.
Nabiulina, speaking at the annual St. Petersburg Economic Forum, said a “significant portion” of Russian industry should start working for the domestic market, rather than relying on exports for revenue.
She said most of the Russian capital controls should be lifted and that there would be no ban on Russian bank accounts being held in US dollars or other foreign currencies.
“We have a rating of exchange rate restrictions,” Nabiulina said. “My view is that at least most of them should be abolished.”
Russia has imposed strict controls on foreign exchange transactions in response to Western sanctions against Moscow.
President Vladimir Putin has said that Russia will prosper despite the West imposing the most severe sanctions in modern history, but that the orientation of the foundations of the Russian economy of 1.8 trillion should be changed. dollars.
Nabiulina warned that there were fears that the loss of access to technology would undermine the Russian economy. She said Moscow needed to look at private initiatives to ensure technological development and avoid slipping into a Soviet-style situation in which Russia would lag behind its rivals.