Support for export companies, the BRICS Contingent Reserve Arrangement.
Excerpts from Dmitry Medvedev’s opening remarks:
Government Meeting
The promotion of our products outside Russia calls for government support, especially in the current situation. A special roadmap was prepared within the National Business Initiative to help Russian businesses. But the economic and especially political situation has changed since then, and we need to take additional measures.
Nevertheless, our goal has not changed: To create favourable conditions for our non-commodities export companies. We must develop a support infrastructure. To do this, new provisions have been added to the revamped roadmap that will maximally simplify and accelerate export-related fiscal, customs and administrative procedures and expand the range of financial and non-financial services, including through the one stop shop system.
There are also plans to simplify retail and small wholesale exports based on the use of digital technology, including the internet and international logistics and express delivery services. This will simplify the certification of Russian products traded abroad and increase the number of export companies, including by attracting small and medium-sized businesses. These measures are to be implemented by the end of 2015.
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We will also discuss a draft law on the ratification of the Treaty for the Establishment of a BRICS Contingent Reserve Arrangement. The BRICS countries can use this pool of reserve currencies to support their financial systems and to stabilise their economies. The leaders of Russia, Brazil, India, China and South Africa agreed to create this pool in 2012. Along with the creation of the BRICS New Development Bank, this is one of the most important and practical initiatives of the BRICS countries.
The Treaty for the Establishment of a BRICS Contingent Reserve Arrangement (CRA) was signed last summer and stipulates committing $100 billion to this pool. Russia is to provide $18 billion.
Each of the BRICS countries is entitled to make a request to access committed resources at any time. The key decisions are to be made by the Council of CRA Governors, which will consist of finance ministers or central bank governors. Russia will be represented by Central Bank Governor Elvira Nabiullina.
This measure will greatly strengthen our partnership with the other BRICS countries. It will not only strengthen our economic cooperation, but will also make the group’s five countries more independent of the current international situation and the problems ailing international financial institutions.
