You're reading: Putin’s advisor: Ruble to play role of de facto common currency in Customs Union

MOSCOW - There are no plans to have a common currency in the Customs Union, Russian Presidential Advisor Sergei Glazyev told a press briefing in Moscow. 

“The question is not on the agenda. It had been discussed several times but no approval was granted for a number of reasons,” he said.

The Russian ruble prevails in settlements between the Customs Union troika – Russia, Kazakhstan and Belarus. If dollar and euro settlements, which are mostly done in energy supplies, are terminated, the ruble will account for nearly 90% of tripartite trade.

“We should switch to national currencies in our trade and stop using the dollar and the euro as intermediate currencies. Hence, it is important to have direct quotes of national currencies with the assistance of the MICEX instead of cross exchange rates and to create a unified payment system using national currencies,” the advisor said.

A tripartite system of inter-bank settlements may be formed in the future in order to not to be dependent on the SWIFT. “Even then it will be unnecessary to have a common currency, because the ruble de facto plays its role and will continue to play it, at least within the borders of the three countries,” Glazyev said.

Negative experience of the Eurozone is another argument, Glazyev said. “Obviously, the common currency implies the creation of a currency and financial union – a unified financial and budgetary system with the unified operation of government debt instruments – which Europe has failed to do. The Europeans were late with the formation of that system, and the process proved extremely painful,” he said.