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In my address for 2003 I set the goal of making the rouble convertible. An outline of the steps to take was set out and I must say that these steps are being taken. I propose today that we speed up the removal of the remaining restrictions and complete this work by July 1 of this year.

But making the rouble genuinely convertible depends in great part on its attractiveness as an instrument for settlements and savings. In this respect we still have a great deal of work to do. In particular, the rouble must become a more universal means for carrying out international settlements and should gradually expand its zone of influence.

To this end we need to organise markets on Russian territory for trading oil, gas and other goods, markets that carry out their transactions in roubles. Our goods are traded on world markets, but why are they not traded here in Russia? The government should speed up work on settling these issues.

MOSCOW, May 11 (RIA Novosti) - Oil and petrochemical exchanges denominated in rubles could be launched in Russia as early as next year, the head of the presidential administration's expert department said Thursday.

In his annual state of the nation address to parliament Wednesday, President Vladimir Putin said that a ruble-denominated oil and natural gas stock exchange should be set up in the country.

"Next year, all [the exchanges] could start operating," Arkady Dvorkovich said Thursday.

"The ruble must become a more widespread means of international transactions. To this end, we need to open a stock exchange in Russia to trade in oil, gas, and other goods to be paid for with rubles," Putin said Wednesday.

A gas exchange would be set up after gas market liberalization, Dvorkovich said. He said proposals for metals, forest-products and fish exchanges would be developed.

"Trade in rubles will create a demand for rubles. This will be a real step to achieve ruble convertibility," Dvorkovich said.

In his Wednesday's address, Putin urged work on achieving ruble convertibility sped up and completed by July, six months ahead of the original January 1, 2007 deadline.

aliwood wrote: Anyone else remember these rumours too?

6/8/06 Fed. News Serv. 09:15:00
Federal News Service (Russia)
Copyright 2006 Federal News Service, Inc. All Rights Reserved.

June 8, 2006

TV INTERVIEW WITH OLEG SAFONOV, PRESIDENT OF THE RUSSIAN TRADING SYSTEM VESTI PLYUS TV RUSSIA NEWS PROGRAM WITH ERNEST MACKEVICIUS, 00:15, JUNE 8, 2006

Anchor: From now on, the price of Russian oil will not be determined only in New York. Trading in Russian "black gold" begins at the RTS in Moscow on Thursday, and what is , oil will be traded on rubles. The idea was first aired in the Presidential Address to the Federal Assembly. The aim is to strengthen the authority of the Russian ruble and raise the price of Russian oil to the level of foreign oil. How feasible is this task? With me in the studio is President of the Russian Trading System Oleg Safonov.

Good evening, Oleg Petrovich.

Safonov: Good evening.

Anchor: Today's trading is a trial, I understand?

Safonov: No, it is not a trial run, it is a real start of trading in one of the key commodities that is oil, and it is true that from today term contracts for Urals oil will be traded at the Russian Trading System. And payments will be in rubles.

Anchor: In rubles. If everything comes off, will the stock market be created on the basis of your RTS?

Safonov: I do not rule that out.

Anchor: Do you think you will manage to strengthen the ruble and raise the price of the Russian Urals to the level of the West European Brent?

Safonov: As you have noticed, the President's Address set the task of making the ruble freely convertible from July 1. The ruble will be freely convertible if real Russian assets, including key commodities such as oil can be bought for rubles.

I think that the instrument that the Russian Trading System is introducing is a small but real step in that direction.

Anchor: When will the effects really kick in?

Safonov: As of today.

Anchor: No, I mean when will it begin to influence the convertibility of the ruble and the price of our oil?

Safonov: I think as liquidity of this instrument grows, it will have a serious impact in creating conditions for free convertibility of the ruble.

Anchor: How do you expect to attract Russian and foreign companies to the stock exchange?

Safonov: We think that a term contract for Urals oil and gold which we offer to the broadest circle of Russian investors starting from today, as well as to foreign investors, will result in heavy trading in these contracts. And the RTS stock exchange is the site that enables Russian as well as international participants to acquire Russian assets.

Anchor: When can we see a full-fledged stock exchange in Russia to rival those in New York and London?

Safonov: Hopefully, very soon.

Anchor: Let us hope so. Thank you, Oleg Petrovich.