Yakov and Partners - In the media

Russia presents its vision of the future global financial system. The alternatives include developing a network of commercial banks that can conduct such transactions in local currencies as well as establishing direct links between central banks, according to a report prepared by the Russian Finance Ministry, the Bank of Russia and Yakov and Partners

Brics finance ministers and central bank governors will meet on Friday, 11 October in Moscow to finalise their work for 2024, according to the Russian Finance Ministry. Preceding the meeting, a seminar on improving the international monetary and financial system will be held on Thursday, 10 October. Russian Finance Minister Anton Siluanov will present a report on the financial system's improvement, developed with the Yakov and Partners consulting firm

Russia aims to create a new system for cross-border payments between BRICS countries. The report prepared by the Russian Finance Ministry, the Bank of Russia and Yakov and Partners includes options like developing a network of commercial banks to conduct cross-border transactions in local currencies, establishing direct links between central banks, creating centers for mutual trade in commodities, and using DLT or a new multinational platform for settlements with tokens

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Ilya Ivaninsky, an Expert Partner at Yakov and Partners and Director of the Center for Business Education and Analytics at the Central University, believes that the success of a privatization is directly related to favorable market conditions. He explains that high value of assets fetched during periods of stock market growth is one of the key conditions. A lower key rate could serve as an additional incentive for investors

Many banks have stated that the launch of the digital ruble is a rather slow and costly process, points out Ilya Ivaninsky, an Expert Partner at Yakov and Partners and Director of the Center for Business Education and Analytics at the Central University. The cost of implementing this technology at just one bank is measured in hundreds of millions of rubles, which is a formidable sum for most banks, especially small ones

Commenting on the postponed launch of the digital ruble, Ilya Ivaninsky explains that this decision of the Central Bank makes a lot of sense. The cost of implementing the digital ruble has always been high for small banks. Even at the early stages of the initiative discussion, the cost of implementation was estimated in hundreds of millions of rubles

There is no objective necessity to use international payment systems within the country, says Ilya Ivaninsky, head of the Center for Business Education and Analytics at Central University and an Expert Partner at Yakov and Partners. The only scenario under which companies could be able to quickly capture a meaningful share of the market would be to reconnect all previously issued Visa and Mastercard cards that are still in circulation

According to Andrei Strogonov, an expert at the Research & Insights Center at Yakov and Partners, Russia is shifting trade with BRICS members to national currencies, the share of which has already exceeded 65%. However, BRICS countries will stop short of fully transitioning to trade in national currencies, as it would be problematic due to insufficient liquidity and underdeveloped exchange markets for these currencies

There is a lot going on in the business world. As the environment is changing under the influence of new technologies, so are operating models, with businesses adopting the so-called product approach. Some companies have already pivoted, some are just contemplating change. Successful implementation of the product approach allows to meaningfully increase the speed of product changes, which allows organizations to ramp up sales in a short period of time, says Ilya Ivaninsky

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The global stock market has found itself in a paradoxical situation. While the amount of available capital keeps growing, there are fewer and fewer options to effectively invest it. Conventional formats of sustainable long-term investments often need revising. Dmitry Plotnikov, a Partner at Yakov and Partners, reflects on how Russia could integrate into the new global architecture of capital

Trump's tariff wars are unlikely to have any strong direct impact on this country as its exports to the US are rather limited, says Ilya Ivaninsky. “This means we cannot expect domestically produced goods to immediately become more competitive compared to those produced, for instance, in China, Mexico, India, and so on.”

The record high key rate of 21% has been in effect since November 2024. The regulator clarified that the inflation target of 4% is unlikely to be reached before late 2026. In the baseline scenario, the Central Bank rate should remain at 19% to 22% in 2025. Ilya Ivaninsky believes that a high key rate throughout 2025 is a realistic scenario

Digital financial assets (DFA) are currently traded on the same platforms where they are issued. Once they begin to be traded on the exchange, information system operators will no longer be able to profit off them. At the very least, their revenue models will change as fr om then on, they will be able to make money only from issuing DFA. For example, an investment bank makes a business of issuing bonds, while the exchange wh ere those bonds are listed earns from trading

The USA’s rejection of CBDC opens up a number of opportunities for Russia. First, the absence of US competition gives Russia additional time and space to realize its ambitions to develop a digital ruble and integrate with BRICS partners. Second, the apparently growing risks of multi-fold increase of US influence in the cryptocurrency market may push other institutional players seeking independence in settlement and savings instruments away from bitcoin and toward a full-fledged new independent financial architecture

Although the dollar remains the key global settlement and reserve currency, there are more and more indicators that global central banks are looking for alternatives, as evidenced, in particular, by central bank gold buying, emphasizes Ilya Ivaninsky, Expert Partner at Yakov and Partners and Director of the Center for Business Education and Analytics at Central University

Russian importers have started to face difficulties with obtaining insurance for goods imported from China. According to Ilya Ivaninsky, "Firstly, there are more than one insurance company in the country, so if one company refuses to cooperate, another can be found. Secondly, insurance companies are not only located in China but also in other countries, such as Russia and third countries, which means that someone can still find a suitable option."

Bank deposits and growth accounts took over from cash as the preferred type of savings, says Elena Kuznetsova, director of the Yakov and Partners Institute for Economic Research. These findings stand in contrast to the results of a similar study conducted 1.5 years ago. It is expected that older generations save more than younger generations. However, it is somewhat surprising that people with average income save the most, at 67%

A company can use two types of resources for making investments: its own funds and borrowed funds. However, due to the current high interest rates, borrowing has become an expensive option for companies. This is true for both loans for investment purposes and bonds, according to Ilya Ivaninsky, expert partner at Yakov and Partners and director of the Center for Business Education and Analytics at the Central University

A more reliable approach would be to communicate with banks directly, rather than through cards. In this system, any card — VISA, Mastercard, MIR or UnionPay — serves only as a way to identify the customer. Making BRICS Pay operational requires joint effort of many parties, i.e. not only domestic banks and regulators, but also their counterparts in other countries where BRICS Pay will be implemented. Ilya Ivaninsky believes that only a consortium would we be able to build an effective system

Businesses are now actively pursuing revolving credit facilities — loans designed to replenish their operational funds, such as for vendor payments or employee compensation. As working capital costs continue to grow, lending remains a sought-after tool among domestic businesses. Such loans are short-term (compared to capital projects), and companies have the opportunity to refinance them once the base rate is lowered, explains Ilya Ivaninsky

Ilya Ivaninsky, an Expert Partner at Yakov and Partners and Director of the Center for Business Education and Analytics at the Central University, argues that e-commerce banks could unlock new sources of growth if they go beyond the bounds of the marketplaces and start offering acquiring services, developing savings products for a broader market, as well as lending services

Ilya Ivaninsky, expert partner at Yakov and Partners and director of the Center for Business Education and Analytics at the Central University, explains that fintechs are the main way of monetization within ecosystems around the globe. For example, the South Korean IT giant Kakao generates most of its revenues through its bank; financial services also add nicely to Apple's revenues

Declining transparency of certain types of information is a global trend, says Ilya Ivaninsky, expert partner at Yakov and Partners and director of the Center for Business Education and Analytics at the Central University. He cited China as an example, where from May 1 on, companies will be obliged to protect data "that are not state secrets but will cause certain adverse effects if leaked"

A joint study by Yakov and Partners and the Central University finds that the annual economic effect from the introduction of the digital ruble may amount to RUB 328 bn.Experts suggest that there is currently a foundation in the country for the widespread adoption of a digital Russian currency. The currency has been tested in pilot projects with 13 major Russian banks

At the BRICS summit held in Kazan in October 2024, Russia proposed reforms to the international monetary and financial system. According to Dmitry Plotnikov, Partner at Yakov and Partners, and Ilya Ivaninsky, Expert Partner at Yakov and Partners, one of the report's key ideas was the development of a network of global commercial banks in the BRICS countries to facilitate cross-border payments in national currencies

If the digital ruble captures 1–5% of the foreign trade value, it could generate RUB 15–103 billion in annual economic benefits for Russian businesses. This requires reducing transaction fees, cutting intermediaries, and speeding up processing times, said Ilya Ivaninsky, Expert Partner at Yakov and Partners

In order to transform AI into a real growth driver, banks need to move from isolated experiments to systemic solutions and start adapting their business processes to new technologies. However, this would require adjusting personal data laws and rethinking the established approach to bank-client privilege, believes Maxim Bolotskikh, a Partner at Yakov and Partners