June 6 2024: At Russia’s annual economic forum in St Petersburg, central bank Governor Elvira Nabiullina emphasized the necessity of integrating Russia into the global economy despite ongoing Western sanctions.
Global Integration: Nabiullina stressed that Russia should continue to participate in the global economy with countries willing to engage. She highlighted the need for a robust and independent system of settlements and payments, and greater interconnectedness in banking, audit reports, and insurance policies.
Technological Development: Russia must lead in financial technology, a challenging task given its limited reliance on international solutions due to sanctions.
Impact of Sanctions
Western sanctions imposed after Russia’s invasion of Ukraine in February 2022 have significantly affected Russia’s access to the global financial system and complicated international settlements and new trading routes.
Foreign Participation: The forum’s main foreign participants are now from countries still friendly to Russia, with the presidents of Bolivia and Zimbabwe attending alongside Russian President Vladimir Putin.
Financial Sovereignty and Investment
Finance Minister Anton Siluanov and Economy Minister Maxim Reshetnikov addressed the forum on key economic priorities:
Financial Sovereignty: Siluanov emphasized ensuring Russia’s financial independence.
Investment and Technology: Reshetnikov highlighted investment support, developing sovereign technology, and addressing labor market challenges as main tasks.
Foreign Investment Decline: Foreign investment in Russia has dropped by around 40% to $696 billion, with significant investments coming from Russian firms incorporated in Cyprus and the Netherlands.
Military Modernization
Maxim Oreshkin, deputy head of the presidential administration, underscored the importance of the armed forces:
Military and Economy: Oreshkin stated that modernizing Russia’s armed forces is essential, asserting that a successful economy requires a successful army.
Nabiullina’s remarks reflect a strategic pivot towards strengthening financial independence and technological innovation in response to international sanctions, aiming to maintain Russia’s economic integration with cooperative global partners.
