Specifics of Interrelations between the Russian and European Financial Markets

Abstract

The subject of the research is the state of interrelationship between the Russian and European financial markets in the context of the economic and financial sanctions imposed on Russia by the European Union. The relevance of the research stems from the strategic goal set by the President of the Russian Federation — to ensure the “breakthrough” of the Russian economy in order to enter the top five world’s developed economies by 2024–2025.The purpose of the paper was to develop a roadmap for the implementation of the mobilization model of cross-border flows of the Russian capital in the context of modern transformations of the global monetary and financial system. Based on the revealed and analyzed mainstream trends in the interaction of the Russian and European financial markets, a mobilization model of cross-border flows of the Russian capital under the modern conditions has been developed. The asymmetry in mutual exchanges between the Russian and European financial markets is revealed and the risks of all identified forms of asymmetry are defined. The reference structure of foreign assets of the Russian financial market is determined, priority directions for the correction of the structure of external assets and liabilities have been established, and the institutional structure of the monetary and financial regulation of the Russian financial market are specified.It is concluded that based on the roadmap for the model of cross-border flows of the Russian capital under conditions of modern transformations of the global monetary and financial system developed for the period 2019–2025, the Russian financial market is expected to be fairly stable over the next three years, which should be taken into account by the Bank of Russia in making decisions on the monetary policy and accumulation of international currency reserves.

Cross-border Capital Flows in Russia: Prospects for Changing their Internal and Geographical Structure

“…В структуре трансграничных потоков капитала весьма вероятен дальнейший рост доли резервных активов, поскольку Министерство финансов 13 При этом из-за использования офшорных юрисдикций потоки прямых инвестиций между Россией и странами ЕАЭС оказываются занижены. Для данного региона (точнее, для всех стран СНГ) с 2011 по 2016 г. существовали альтернативные оценки взаимных прямых инвестиций.…”