Kontent Review

ITAR-TASS MOSCOW, July 1 (Itar-Tass) -- July 1, 2006 may go down in history as the day of another revolution in Russia. This time, a financial one. Under the government’s decision the national currency becomes a fully convertible currency. All restrictions in the sphere of currency control and regulation are lifted. Foreign and off-shore investors will be able to open ruble accounts in banks, and all limitations of ruble-denominated investments will disappear. Under the original plan this was scheduled to happen no earlier than January 1, 2007. As he addressed the Federal Assembly with his state-of-the-nation message last May, President Vladimir Putin called for speeding up the transition process. This measure will allow Russian citizens to invest in both domestic and foreign companies. “The transition to the full convertibility is an indication where our financial system stands. It is also one of the fundamental principles of economic development, a sign of certain maturity of the Russian economy. Russia can now say that it is a mature economy,” Finance Minister Alexei Kudrin said. Deputy Prime Minister Alexander Zhukov recalled that oil and gold had begun to be traded on a Russian exchange for rubles. The Central Bank of Russia expects nothing dramatic following the abolition of restrictions on currency transactions as of July 1, though.%2