Russia Sees Limited Effect of Greek Crisis on Domestic Market

The crisis in Greece will have a limited effect on Russia, which hasn’t borrowed on international capital markets since 2013, according to Finance Minister Anton Siluanov.

Greece’s debt troubles including a missed $1.7 billion payment to the International Monetary Fund “won’t have a serious impact on the global situation, but of course it undermines the stability of financial markets,” Siluanov told reporters in Moscow on Wednesday. As Russia hasn’t been borrowing on foreign markets recently, there’ll be only an “indirect” effect on its domestic market from Greece, he said.

Siluanov joins other Russian policy makers, including the central bank, in saying that the situation in Greece doesn’t present significant concerns for the nation’s financial stability. Russia is entering its first recession since 2009 after being hit last year by its worst currency crisis since 1998 amid international sanctions over the conflict in Ukraine and a slump in the oil price.

“Possible negative developments in Greece are already partially priced into markets,” the Bank of Russia said in an e-mailed response to questions on Monday. “Even so, there are risks of a short-term increase in volatility on international financial markets, and the Russian foreign-currency market in particular.”

The ruble’s three-month implied volatility, a measure of exchange-rate swings, is at 21 percent, the highest globally, according to data compiled by Bloomberg. It weakened 0.2 percent to 55.421 against the dollar at 2:32 p.m. in Moscow.