Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Ukrainian Ruble Reserves Set to Rise, Central Bank Adviser Says

Nov. 10 (Bloomberg) -- Ukraine will increase the share of Russian rubles in central bank reserves and may use them to finance imports, Valeriy Lytvytskyi, adviser to the central bank governor, told reporters today.

The country may use rubles to pay for natural gas delivered in October, Ukraine’s Energy and Coal Minister Yuriy Boyko said on Nov. 2.

Ukraine wants to reduce the cost it pays for Russian gas to balance the finances of state-owned NAK Naftogaz Ukrainy and reduce the budget deficit. Failed price talks with Russia may mean higher domestic bills for energy and utility services, pushing the country to draw on the third tranche of the International Monetary Fund’s $15.6 billion loan.

The country secured the IMF loan in 2010 and has so far received a total of $3.4 billion in two tranches.

The central bank sees international reserves at the end of the year at about the same level as December 2010’s $34.6 billion, Lytvytskyi said.

Although the ruble isn’t a fully convertible currency, “there are no obstacles to add ruble into our reserves,” Olena Shcherbakova, the head of monetary policy department, said today.

The central bank has recently bought Swiss francs to its foreign reserves, Lytvytskyi said.

To contact the editor responsible for this story: Balazs Penz at bpenz@bloomberg.net; Claudia Carpenter at ccarpenter2@bloomberg.net;

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.