Capital Controls for Russia
Bloomberg writer Leonid Bershidsky, under the headline, "Will Ruble's Rout Force Capital Controls?", wrote yesterday on what he called, "the probability that Russia will introduce capital controls."
He asserts his view that President Vladimir Putin is an "anti-Western, authoritarian" leader, noting that in 1998, a leader he views as having the same traits, Dr. Mahathir Muhammed, President of Malaysia, successfully implemented capital controls and brought his nation out of turmoil. Bershidsky then reviews what he calls, the "recipe" for how capital controls worked in Malaysia.
But the author also reports specifically on Putin's advisers calling for capital controls, and moreover, doing so, because Russia is under political attack from the West. He cites in particular, Sergei Markov, an advisor from a different alignment than well-known economist Sergei Glazyev, who reiterated his own policy proposals today, noted below.
Bershidsky writes of Markov,
Glazyev, in an interview to BFM.ru yesterday, repeated his charge that the plunge of the ruble was caused by speculative operations of Russian banks; and called for imposing foreign currency regulations.
In a related development, State Duma deputy Yevgeny Fyodorov has called for the Russian Prosecutor General to launch a criminal investigation into recent actions by the Russian Central Bank, on the grounds they violated the constitutional mandate for the bank to "defend and insure the stability of the ruble." Fyodorov charged that by floating the ruble and allowing the markets to set the rates, the bank acted illegally.