“Where in a hop, where in the summer, where sideways …” – Newspaper Kommersant No. 59 (7504) dated 04/06/2023

The head of the banking group Ksenia Dementieva is trying to understand the rules of the game in international settlements

In mid-February, a new department for organizing international settlements appeared at the Central Bank (see “Kommersant” dated February 16), and on April 5, Mikhail Kovrigin, who headed it, spoke at the congress of the Association of Russian Banks (ARB). It was he who could clarify the situation with the calculations, warn or calm the market in the face of sanctions and, even worse, direct and harsh statements about penalties for helping to circumvent them.

Now even the most courageous financial institutions and even the regulators of friendly countries have understood the seriousness of the intentions of the US and the EU, and the ties that had been established until recently began to break. What is worth only the recent decision of the Central Bank of the UAE to cancel the license of MTS-Bank, which took place a month after the introduction of sanctions against it. Previously, really friendly countries did not change their positions so quickly, and partners did not abandon each other because of the risk of secondary sanctions, although it has existed since 2014.

But Mikhail Kovrigin, instead of clarifying the situation, limited himself for the most part to popular expressions. “They ask us how the calculations are built and where to apply … Where in lope, where in flight, where sideways, and where in crawling,” the head of the department answered vaguely.

Well, that is, who, as he could, settled down. For example, Sberbank has many foreign partners willing to work with it, despite the status and risks of secondary sanctions. And the bank is actively competing with money transfer systems, none of which, oddly enough, has not yet come under sanctions.

However, few can boast of such outstanding results. Small banks with a basic license turn to the Central Bank, complaining that requests for cooperation were sent to fifty foreign correspondent banks, but no one answered, Mr. Kovrigin himself honestly said.

The mega-regulator also, apparently, found only philosophical recommendations for these unfortunate people: “Great opportunities come to everyone, but many do not know that they have met with them … I always take it on my own, so as not to grunt when walking.” But, noticing the puzzlement on the faces of the bankers, he switched to a language more understandable to them: “Entering the market of international relations … you need to be ready for this, it must be both technology and a banal understanding of how the counterparty works.”

Best of all, Mr. Kovrigin admitted, meanwhile, things are going on with business, to which the Central Bank has no direct relationship. “Over the past year, business has trodden different paths to partners … We are observing the process,” he explained. Probably, bankers are encouraged to use the same strategy.