Russia will not return to the international borrowing markets to the end of the year

Russian emitters don’t plan to make borrowings on foreign markets to the end of the year. Andrey Klepach, the deputy minister of Economic Development of RF, made this announcement answering the questions of journalists within the framework of Astana Economic Forum.

Deputy Minister explained the rejection of Russian companies and the state in the whole from foreign borrowings with negative political climate as a result of Ukrainian crisis and a number of sanctions towards Russia. However Klepach noticed that it is early to speak about complete leaving the world borrowing markets, while howling potential on Asian markets exists.

Similar point of view was given by the head of the Ministry of Finance of RF Anton Siluanov, stated that according to the last amendments in the 2014 budget, the Ministry of Finance doesn’t plan to entry the foreign borrowings market because of its negative environment.

Business representatives also incline to rouble fundraising and creating the sources of long-term rouble credits. This has already been stated by the president of VTB Andrey Kostin and the president of JSC Russian Railways Vladimir Yakunin. Yakunin also noted that the company raised all borrowings projected for the current year forecasting the possibility of backset. As a reminder, the deputy head of the department of corporate finance of Russian Railways Pavel Ilyichev stated earlier that for the current year the company is planning to borrow approximately 100 bln. RUB. The half of this amount will be borrowed through the mechanism of infrastructural bonds, and the other half – through other financial instruments. In May the senior president of Russian Railways Vadin Mikhaylov stated that the company doesn’t plan foreign borrowings up to the end of 2014. However the company technically has this opportunity, in spite of the credit ratings reduction from «BBB» to «BBB-» in the current April.

Experts agree that the situation created is challenge to Russian economy and a signal to necessity of upgrading national economy using all internal reserves.