Russia will confound the US attempts to impose sanctions against the national debt, Russian Deputy Finance Minister Sergey Storchak says.
“We have platforms for this. First of all, the G20, the Financial Stability Board platform", he claims.
The Deputy Minister adds that Moscow will cope with the restrictions, since the country has a well-developed institution of national investors and the accumulated reserves will solve problems with the budget deficit. “There is no panic in the Ministry of Finance", he stresses.
Some Europeans are ready for payments in the national currency, Storchak adds.
In the summer, a group of senators submitted a bill to the upper house of the US Congress with a whole range of anti-Russian measures including sanctions against the new public debt and state banks of Russia. The list includes Vnesheconombank, Sberbank, VTB, Bank of Moscow, Gazprombank, Rosselkhozbank and Promsvyazbank. Washington has previously announced the possibility of extending sanctions to the national debt of Russia but the American Finance Ministry acknowledged that the measure could harm Moscow and the international financial market as a whole.
Meanwhile, the United States expenditure on public debt exceed 15% of current budget revenues while a level of 10% is considered to be safe, Storchak notes. He also recalls that in the middle of the 2000s the US national debt was 7-8 trillion dollars whereas today it is approaching 22-23 trillion dollars.
"I read a research saying that empires collapsed when the debt service ratio exceeded 25% of budget revenues", the deputy minister concludes adding that the US is close to this mark.
Russkiy Mir
