Fully lifting currency control measures not possible - CBR chief

MOSCOW. April 12 (Interfax) - Currency control measures need to protect Russia from geopolitical pressure while not hindering international economic activities, Central Bank chief Elvira Nabiullina said at a joint meeting of State Duma committees.

"In our view, currency control must protect from sanctions pressure but at the same time hinder foreign economic activities as little as possible. We are striving for such a balance," Nabiullina said.

The Central Bank has begun to ease some currency control measures, but it is not possible to lift them completely at this time, she said.

"Anti-crisis measures are a powerful medication and, like powerful medication, they have side effects. Therefore, one must stop taking them as soon as the patient can manage without them, otherwise these side effects undo all the good. And this is exactly what we've done. We began easing currency control measures as soon as the situation calmed down somewhat. It's not possible to eliminate them completely," Nabiullina said.

She said many lawmakers were interested if the Central Bank is concerned about capital outflow as a result of these measures being eased.

"If you look at the financial account balance figures, [...] I would like to point out that this is not capital outflow, this is not money that is lost to the Russian economy. This is, after all, a substantial portion of the foreign currency that our companies and citizens hold abroad, including to buy imports, to service foreign economic transactions, because paying for imports from Russian accounts [results in] difficulties with international settlements. A substantial portion of these funds goes specifically toward paying for the imports that the country so very much needs," Nabiullina said.