REUTERS
Economic Advisor to the Russian President Sergey Glazyev has prepared a report on measures to overcome the effects of Western sanctions, envisaging, inter alia, limitation of foreign currency purchases by legal entities and freezing prices on some goods, according to the Russian newspaper Kommersant.
The report will be presented on September 15 at a meeting of the Commission of the Security Council of the Russian Federation for the security in the economic and social sphere, according to the publication.
The report section devoted to the stabilization of the Russian ruble, prevention of capital flight and de-dollarization of the economy provides for ban on purchase of foreign currency by legal entities "without sufficient reasons for carrying out payment transactions." President's Advisor proposes to introduce a "temporary tax (funds reservation)" on conversion operations and cross-border payments. In addition, Glazyev calls for to ban disbursement of foreign currency loans to non-financial organizations and introduce the mandatory sale of foreign currency earnings.
Regarding price stabilization, it is necessary, according to Glazyev, to temporarily freeze prices on fast moving consumer goods, establish the "maximum margin" of 25% between manufacturers' and retail prices, and to ensure mechanisms of restoring prices to the previous level after their swings.
A special section in the report devoted to "neutralization of anti-Russian sanctions" proposes to allow Russian companies to refuse to repay their debt to the countries that have imposed economic sanctions against Russia. Glazyev proposes to convert funds on the accounts of the Reserve Fund and the Russian National Wealth Fund into gold and obligations of BRICS countries [Brazil, Russia, India, China and South Africa]. In addition, it is suggested to set up jointly with BRICS countries a system of international bank transfers that will replace the SWIFT system.
Glazyev proposes to eliminate any possibility of transferring the country's "strategic" enterprises to management of foreign investors. He suggests to create "people's enterprises" on the basis of those enterprises that are declared bankrupt.
Glazyev's plan provides for the establishment of the State Committee on strategic planning and the State Committee for scientific and technological development.