Russia May Review Share of Euro in Reserves, Medvedev Says

Cyprus’s financial crisis may force Russia to review the share of euros in its international currency reserves, the world’s fourth-largest stockpile, according to Prime Minister Dmitry Medvedev.

An unprecedented levy on deposits in Cyprus banks that was backed by European finance officials as a condition for the country to receive a bailout, was “not just unpredictable, it’s evidence of some inadequacy,” Medvedev said, according to a transcript of his interview with Interfax and foreign media on the government’s website.

“We have 41 percent or 42 percent of our reserves in euros,” Medvedev said. “It’s big money, and we, like any country, value predictability.”

Russia’s foreign currency and gold reserves stood at $522.1 billion last week. The dollar accounts for 46 percent of the stockpile, while 40.5 percent is held in euros, First Deputy Central Bank Chairman Alexei Ulyukayev was cited as saying by RIA Novosti Jan. 24.

To contact the reporter on this story: Vladimir Kuznetsov in Moscow at vkuznetsov2@bloomberg.net

To contact the editor responsible for this story: Wojciech Moskwa at wmoskwa@bloomberg.net

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