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torgiasv.ru about 27,000 assets are already up for sale. DIA will also do road shows for the most lucrative assets. The first will be the offer for RUB10bn credit portfolio of former Tatarstan-based Tatfondbank, which will be pitched to representatives of 18 banks, according to Isaev.
The Central Bank of Russia (CBR) has recommended Russian banks that work with payment systems through intermediaries and partner banks to double up with another partner increase Russia is cut off from the SWIFT payment system as part of a new sanctions regime, Vedomosti daily reported on December 6. Such bank would provide emergency access to the payment systems if needed. In addition to possible sanctions, the CBR is encouraging banks to improve their services. As the CBR is in the endgame of the its banking sector clean-up, it is now focusing on fine tuning the remaining 500 banks. Previous reports indicated that the CBR also "recommended" the introduction of tighter supervision of foreign currency cash operations.
The Central Bank of Russia (CBR) will force the banking sector to scrutinise construction and retail sector clients as of January 1, 2019, as the regulator believes these are the main clients of black money markets, Vedomosti daily reported on December 5 citing the letter sent by the CBR to the banks. This is in line with recent reports that the CBR is cracking down on large FX cash operations that fuel black currency exchange market. The regulator previously warned of new schemes of cash withdrawal, such as fronting transportation services or financing overpriced imports of supplies. Retailers, car dealers, and wholesale markets are suspected to be leaking excess FX cash on the side. Now the CBR argues that the biggest clients of the black financial market are construction (30%), logistics (21%), resale of construction and industrial goods (20%). The companies usually try to pre-pay VAT and income taxes not to be flagged by authorities. Analysts surveyed by Vedomosti confirmed that CBR's analysis accurately reflects the situation on the market, and welcome new compliance mechanisms for the banks, although warn of moderate implementation costs and potential slowdown of operations for innocent clients.
In the nearest future the Pension Fund of Russia (PFR) will have its management reshuffled ahead of a big reform drive aimed at getting the sector working properly, Kommersant daily reported on December 7. The operation deputy head of the PFR Boris Gukaylo has already been fired from his job.
As Russia gears up for 6-year investment leap and prepares both public and private spending, the persistent problem of inefficient use of long pension money in Russia is in focus again.
While Russia’s financial system is very sophisticated and a clean up of the banking sector by the Central Bank of Russia (CBR) is coming to an end, one glaring omission is the almost total absence of domestic institutional investors with long-term capital like pension funds at their disposal. This lack of long- term money leads to increased volatility on the market and drives up the cost of borrowing. What pension funds there are, are regularly abused by their managers such as banks, in schemes to manipulate stock prices among other things.
The Finance Ministry is ready to launch a reform of the pension savings system in 2019, while the Central Bank of Russia (CBR) is allowing the
81 RUSSIA Country Report February 2019 www.intellinews.com