The Central Bank considers the increase in import duties to be a pro-inflationary factor, as it increases the prices of goods for consumers and companies that purchase imported equipment, materials and components
The press service of the Central Bank denied reports that the chairman of the bank, Elvira Nabiullina, suggested that in order to cool down demand for imports, think about raising import duties.
“This information is not true. On the contrary, the Bank of Russia believes that the increase in import duties is generally a pro-inflationary factor, as it increases the prices of goods for consumers and companies that purchase imported equipment, materials and components. An increase in prices for imported goods may also lead to an increase in prices for analogue goods that are produced domestically, ”the regulator’s press service told RBC.
The fact that the chairman of the Central Bank voiced such a proposal at a meeting of President Vladimir Putin with members of the government was previously reported by the Vedomosti newspaper.
The publication also reported that the government refused to return to the practice of strict foreign exchange control with the obligatory sale of a certain share of foreign exchange earnings by exporters. Instead, officials reached an informal agreement with entrepreneurs that they would sell more currency themselves.
The Financial Times wrote that the meeting considered proposals from the Ministry of Finance to oblige exporters to sell up to 80% of foreign exchange earnings within 90 days after receiving it, and to refuse state subsidies to companies that refuse to comply with these requirements. The fact that the authorities are discussing the possibility of returning part of the currency control measures to stabilize the situation with the ruble exchange rate was also reported by Bloomberg and Interfax.
According to Vedomosti, the government has been discussing the situation with major companies over the past two days, pointing out the "unacceptability of non-return of export earnings" to Russia.