Decoupling from Foreign Currency Continues in the Russian Banking Sector

The share of assets and liabilities in foreign currency has decreased by 3%, to 15%. At the same time, the share of the yuan among foreign currency is increasing: a third of all currency exchange trading in November was held with the involvement of the yuan, First Deputy Chairman of the Bank of Russia Ksenia Yudaeva said at a press conference. She also drew attention to the fact that from December 1, the Central Bank had begun to publish the official rate of the yuan on its main page (in addition to the dollar and euro rates).

Among foreign currencies, the share of the yuan is increasing. This is due, firstly, to the transition to settlements in yuan in foreign trade, and secondly, to the growing demand for the yuan as a currency for deposits of citizens and companies, as well as for corporate loans. Yudaeva noted that since the beginning of the year, citizens have bought yuan in the sum of 140 billion rubles, and dollars and euros – totalling 230 billion rubles. That is, these figures are already comparable, the first deputy chairman of the Central Bank emphasized.

 

The City Will Attract Investors to Produce Batteries for Electric Vehicles

Moscow will hold an electronic tender for the awarding of a state contract with reciprocal investment obligations (offset contract) for the supply of batteries for electric transport. According to the Investment Quarter of Moscow, under the terms of the contract, the supplier-­investor will commit within three years to localize the production in the city of five types of batteries for electric transport, including for electric buses, tram cars, Moskvich electric vehicles, river transport, and electric scooters and bicycles.

Private investment in the project should amount to at least 3 billion rubles. Production will be organized at one of the sites of the “Technopolis Moscow” Special Economic Zone. In turn, the Government of Moscow agrees to purchase the production for 7 years. Thus, Moscow guarantees a stable supply of batteries for urban electric transport.

 

12 New Production Facilities Will Open in the Capital

Since the beginning of the year, 12 production facilities have received permission to begin operation, the total area of which exceeds 70 thousand square meters. Among them are the facilities of enterprises of the machine-­building, automotive and instrument-­making industries. More than 400 new jobs will be created at the sites, according to the investment portal of Moscow. For example, in the area of Western Biryulyovo, a plant for the production of cars parts was opened as part of a large-­scale investment project.

In order to develop the industrial potential of Moscow, investors are leased plots without bidding for the implementation of large-­scale investment projects. In addition, companies can contact the Industry Support Center, which advises on issues such as interaction with the city authorities or the location of production. Any industrial company can also apply for the inclusion of the enterprise on the Investment Portal of the city of Moscow.

 

Mass Production of Photonic Chips Will Begin in Moscow

The company “Zelenograd Nanotechnology Center” (JSC “ZNTC”), a resident of the SEZ “Technopolis Moscow,” is one of the first in Russia to launch mass production of photonic integrated circuits and modules for telecommunications equipment. The transfer of information based on such technology is more than 100 times faster, so they are in demand in all industries where the installation of high-speed equipment is required.

The photonic integrated circuits under development be used in high-speed and energy-­efficient devices for transmitting and processing telecommunication signals. This equipment is used for on-board equipment and ground infrastructure in the aerospace industry, as well as in the telecommunications industry for the organization of powerful 5G and 6G information networks, connecting users to high-speed internet, IP-telephony and IP-television.

Currently, the resident of the special economic zone of the capital is implementing a comprehensive project to launch mass production of photonic integrated circuits and modules for telecommunications equipment. The company intends to localize in Russia the production of optical multiplexers based on silicon technologies. It is planned to start supplying the first new products in 2023, with serial production set for 2024.

 

Over-the-counter Transactions on the Moscow Exchange Can Now Be Conducted in Yuan

From December 5, 2022, banks, brokers, management companies and their clients can carry out over-the-counter transactions with bonds with settlements in Chinese yuan. The new trading regime opens up additional opportunities for the use of the Chinese currency in operations on the securities market, according to the Moscow Exchange.

Settlements in yuan have become available for all bonds and Eurobonds as part of the service of bilateral transactions with the Central Counterparty (CC), which today makes possible transactions with almost 2.5 thousand bonds. Bilateral transactions with the Central Counterparty combine the flexibility of the over-the-counter market and the reliability of the Moscow Exchange Group’s infrastructure. Transactions are made anonymously with the Central Counterparty, which acts as the National Clearing Center.

The service of bilateral transactions with the Central Counterparty was launched in April of this year. The total volume of over-the-counter transactions since the launch of the service has exceeded 180 billion rubles.

 

Moscow and Beijing are Working to Create a Settlement System Outside of SWIFT

This was announced during the IV Russian-­Chinese Energy Business Forum by Deputy Prime Minister Alexander Novak. According to him, the Russian Federation and China are paying special attention to trade with settlements in national currencies. Gas contracts already use settlements in rubles and yuan on a parity basis. Supplies of oil, petroleum products, and coal are also being switched to payment in national currencies.

The Central Bank of Russia and the Bank of China are working on the possibility of opening accounts of Russian companies in China and Chinese companies in Russia, creating a settlement system without using SWIFT. Such work helps to minimize risks, and contributes to the transformation of the ruble and the yuan into the status of world reserve currencies.

 

Russia Has Launched a Crowdinvesting Platform for BRICS

The platform began to work in test mode at the very end of November, during the BRICS+ International Business Forum held in St. Petersburg. Through it, entrepreneurs will be able to invest in the most promising projects of the BRICS, SCO and EAEU member countries. As its representatives explained, this is a private initiative, “supported by the development institutions of the BRICS.” It is expected that the volume of investments through it can reach a billion dollars a year.

At the initial stage, the projects of the winners of the international award “Top 100 BRICS Entrepreneurs” will be loaded onto the platform. In the future, any businessman will be able to try to show a project on the platform. To do this, he will have to upload all the financial documents confirming the turnover of the business, and the project itself must pass scoring evaluation. The final decision on whether the project will appear on the platform rests with its managers and analysts.

Each BRICS country will have its own representative office of the platform, and it will be available in all languages of the BRICS countries. Beginning in 2023 it will have its own payment system, making it possible to transfer money to projects in different BRICS countries directly through the platform, without using third-­party services. Another attractive feature of the project is that all investors’ money will be insured.