12 Jul 2022 10:05

Lifting of sanctions against Russia would bring down world food, energy prices - Siluanov

MOSCOW. July 12 (Interfax) - The lifting of western sanctions against Russia would bring down prices for both food and energy resources, Russian Finance Minister Anton Siluanov, in an interview with Vedomosti published on Tuesday.

"Of course, and this applies to both food and energy resources, and logistics costs, meaning all those goods and services against which sanctions are in place," Siluanov said when asked if world markets would "cool off and balance out" if sanctions were lifted.

He also said that purchases of foreign currency under the fiscal rule should be limited to the currencies of "friendly" countries.

"Purchases of the currencies of unfriendly countries, foremost dollars and euros, are impossible now. The picture will not change in the foreseeable future. These currencies are toxic for us - our reserves are frozen, the assets of businesses have been seized, restrictions are being imposed on settlements," Siluanov said.

"There are no problems with the currencies of friendly countries, so if a decision is made to resume the fiscal rule, intervention should be done only in these currencies. Then the ruble's exchange rate against the dollar and euro will change through cross rates. But I would prefer not to name specific currencies," Siluanov said.

He also said the decision on unfreezing the funds of nonresidents will depend on reciprocal actions by western countries.

"Let's recall again why such measures were introduced. Western countries blocked the money of our companies [on their territory], the country's gold and foreign exchange reserves are frozen. Therefore, the decision on opening capital accounts, unfreezing the funds of nonresidents will depend on reciprocal actions on the part of western countries," Siluanov said.