Latest news with #Gref
Yahoo
3 hours ago
- Business
- Yahoo
Sberbank CEO puzzled by Russia's push to create digital rouble
ST PETERSBURG, Russia (Reuters) -German Gref, CEO of Russia's dominant lender Sberbank, on Wednesday said he did not see any potential benefits to Russia's development of the digital rouble beyond the possible exception of cross-border settlements. Russian banks will be required to offer customers the means to make payments using digital roubles from September 1, 2026, the central bank said last week, pushing the project's planned launch back by over a year. More than 130 countries are exploring digital versions of their currencies, according to the Atlantic Council, as the world's financial authorities respond to declining cash usage and the threat to their money-printing powers from the likes of bitcoin. Moscow hopes the digital rouble will simplify foreign trade payments that have been complicated by Western sanctions over the conflict in Ukraine. "I don't see its advantages," Gref told reporters during a financial forum in St Petersburg. "As an individual, I don't understand why digital roubles are needed. As a bank... I don't yet understand it very well either." Russian banks already have strong digital finance capacities, such as cashless settlements, Gref said, reiterating that he saw no possibility for the digital rouble to meaningfully transform Russia's economy. No digital currency has become dominant within any country, he said, but there could be a future in cross-border settlements. "Domestically, I don't see it yet," he said. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Miami Herald
a day ago
- Business
- Miami Herald
Russia's Officials Keep Contradicting Putin on War Economy
Russia's economy faces a tough 2026, the head of the country's biggest bank has said in the latest official warning about the country's finances, which is at odds with Vladimir Putin's rosier public pronouncements. German Gref, CEO and chairman of the executive board of Sberbank, said a spike in inflation and the high key interest rate were problems that could not be solved quickly. His comments come only days after Russian Central Bank Governor Elvira Nabiullina and economy minister Maxim Reshetnikov issued their own warnings about wartime growth. This is despite Putin dismissing concerns about Russia's economy which he insisted remained strong despite sanctions and war. Even in an authoritarian country like Russia, there is freedom in economic policy debates, Vasily Astrov, an expert on Russia's economy told Newsweek on Tuesday, but each official will make statements that reflect the interests of their groups. Newsweek has contacted the Russian finance ministry for comment. Russia has faced economic turbulence caused by sanctions imposed after Putin's full-scale invasion of Ukraine that are aimed at choking Moscow's military machine. Strong GDP has been driven by high military spending amid predictions for harder times as inflation and high interest rates take their toll. But despite Putin's rhetoric, his officials are becoming more vocal about the impact of sanctions, falling oil prices, wartime spending, and labor shortages. Gref's warning is the latest signal of a wider economic slowdown in Russia that could raise questions on Moscow's ability to sustain the war. At Sberbank's meeting on Monday, Gref said the quality of his bank's loan portfolio is deteriorating, with a growing number of requests for debt restructuring by retail and corporate borrowers. In comments reported by business newspaper RBC, Gref also said 2026 will not be an easy year either, although much will depend on geopolitics and on how the dynamics of GDP growth will develop. He said another factor will be the key rate set by the Central Bank, which was lowered from 21 percent to 20 percent in June. The high rate is aimed to curb official inflation of 9.9 percent although analysts say it stifles investment. Gref's comments follow a somber warning he gave at the St. Petersburg Economic Forum last month, when he referred to a "perfect storm" of problems for the economy. These included real interest rates between the key rate of 20 percent and annual inflation of 10 percent hurting business profits and forcing companies to postpone investment. At the same event, Central Bank head, Nabiullina, credited for steering the wartime economy, said growth had been predicated on free labor resources but that many of these "have really been exhausted" and that a new model was needed. Meanwhile, economy minister Reshetnikov said current business sentiment pointed to Russia being on "the brink of transitioning into recession." However, Putin quoted Mark Twain when asked at the forum whether his war in Ukraine was "killing" the Russian economy, by replying "rumors of my death are greatly exaggerated" as he said growth in the country outpaced global rates. Astrov, from the Vienna Institute for International Economic Studies, told Newsweek there is still a lot of freedom in Russia on economic policy debates unlike in countries, such as Turkey for example, so it was not surprising there were different opinions by officials. Often these differences can be traced to officials' respective affiliation and because high interest rates suppress economic activity, economy minister Reshetnikov is arguing for lowering them and portrays the situation negatively, he said. But Central Bank head Nabiullina is downplaying the risks because acknowledging them openly would be tantamount to self-criticism, given that her tight monetary policy has been the most important factor behind the recent slowdown. This is why she is talking about a planned cooling of an overheated economy, Astrov said. He said that he was almost sure that Nabiullina will ease monetary policy further, very likely at the next meeting in July, justifying it with the recent decline in inflation, rather than risk economic stagnation and recession. German Gref, head of Sberbank, Russia's largest bank on Monday: "2026 promises to be not the easiest [year] either. That is why we need to get in good shape in 2025. "Much will depend on geopolitics, on how the dynamics of GDP growth will develop…but it is already clear that it will not be simple, because, in fact, the first half of 2026 is already visible." Maxim Reshetnikov, Russian economy minister, June 19 at the St. Petersburg International Economic Forum: "Based on current business sentiment, it seems to me we are on the brink of transitioning into recession." Elvira Nabiullina, head of Russia's Central Bank, June 19: "We have been growing for two years at a fairly high rate due to the fact that free labor resources were used... "But many of these resources have really been exhausted." Russian President Vladimir Putin told the same forum: "Rumors of [the Russian economy's] death are greatly exaggerated." Vasily Astrov, Vienna Institute for International Economic Studies: "There is still quite a lot of freedom in Russia when it comes to economic policy debates, the state of economy, unlike in Erdogan's Turkey, for example. So, it is not surprising that there are different opinions expressed by various officials." In Q1 2025, Russia's economy expanded 1.4 percent year-on-year, its slowest pace in two years and the World Bank forecasts further sluggish growth amid assessments of underlying productivity stagnation. Meanwhile, a banking crisis in Russia looms because of growing defaults not yet reflected in official statistics, with problem loans possibly reaching 3.7 trillion rubles ($47.3 billion) or one-fifth of the banking system's capital, according to Bloomberg. Current and former banking officials told the outlet there is a growing risk of a debt crisis in the next year if circumstances don't improve. Related Articles What F-16 Loss Means For Ukraine's Air PowerNATO Ally Seeks Women to Fight Russia ThreatRussia Makes NATO Collapse PredictionUkrainian President Moves to Withdraw From Ottawa Convention: What to Know 2025 NEWSWEEK DIGITAL LLC.
Newsweek
a day ago
- Business
- Newsweek
Russia's Officials Keep Contradicting Putin on War Economy
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Russia's economy faces a tough 2026, the head of the country's biggest bank has said in the latest official warning about the country's finances, which is at odds with Vladimir Putin's rosier public pronouncements. German Gref, CEO and chairman of the executive board of Sberbank, said a spike in inflation and the high key interest rate were problems that could not be solved quickly. His comments come only days after Russian Central Bank Governor Elvira Nabiullina and economy minister Maxim Reshetnikov issued their own warnings about wartime growth. This is despite Putin dismissing concerns about Russia's economy which he insisted remained strong despite sanctions and war. Even in an authoritarian country like Russia, there is freedom in economic policy debates, Vasily Astrov, an expert on Russia's economy told Newsweek on Tuesday, but each official will make statements that reflect the interests of their groups. Newsweek has contacted the Russian finance ministry for comment. Russian President Vladimir Putin, right, and Russian Sberbank CEO German Gref attend a conference on artificial intelligence in Moscow on December 11, 2024. Russian President Vladimir Putin, right, and Russian Sberbank CEO German Gref attend a conference on artificial intelligence in Moscow on December 11, It Matters Russia has faced economic turbulence caused by sanctions imposed after Putin's full-scale invasion of Ukraine that are aimed at choking Moscow's military machine. Strong GDP has been driven by high military spending amid predictions for harder times as inflation and high interest rates take their toll. But despite Putin's rhetoric, his officials are becoming more vocal about the impact of sanctions, falling oil prices, wartime spending, and labor shortages. Gref's warning is the latest signal of a wider economic slowdown in Russia that could raise questions on Moscow's ability to sustain the war. What To Know At Sberbank's meeting on Monday, Gref said the quality of his bank's loan portfolio is deteriorating, with a growing number of requests for debt restructuring by retail and corporate borrowers. In comments reported by business newspaper RBC, Gref also said 2026 will not be an easy year either, although much will depend on geopolitics and on how the dynamics of GDP growth will develop. He said another factor will be the key rate set by the Central Bank, which was lowered from 21 percent to 20 percent in June. The high rate is aimed to curb official inflation of 9.9 percent although analysts say it stifles investment. Gref's comments follow a somber warning he gave at the St. Petersburg Economic Forum last month, when he referred to a "perfect storm" of problems for the economy. These included real interest rates between the key rate of 20 percent and annual inflation of 10 percent hurting business profits and forcing companies to postpone investment. At the same event, Central Bank head, Nabiullina, credited for steering the wartime economy, said growth had been predicated on free labor resources but that many of these "have really been exhausted" and that a new model was needed. Meanwhile, economy minister Reshetnikov said current business sentiment pointed to Russia being on "the brink of transitioning into recession." This illustratrative image taken on January 11, 2025 shows Russian ruble notes next to a U.S. dollar bill. This illustratrative image taken on January 11, 2025 shows Russian ruble notes next to a U.S. dollar bill. Matt Cardy//Getty Images However, Putin quoted Mark Twain when asked at the forum whether his war in Ukraine was "killing" the Russian economy, by replying "rumors of my death are greatly exaggerated" as he said growth in the country outpaced global rates. Astrov, from the Vienna Institute for International Economic Studies, told Newsweek there is still a lot of freedom in Russia on economic policy debates unlike in countries, such as Turkey for example, so it was not surprising there were different opinions by officials. Often these differences can be traced to officials' respective affiliation and because high interest rates suppress economic activity, economy minister Reshetnikov is arguing for lowering them and portrays the situation negatively, he said. But Central Bank head Nabiullina is downplaying the risks because acknowledging them openly would be tantamount to self-criticism, given that her tight monetary policy has been the most important factor behind the recent slowdown. This is why she is talking about a planned cooling of an overheated economy, Astrov said. He said that he was almost sure that Nabiullina will ease monetary policy further, very likely at the next meeting in July, justifying it with the recent decline in inflation, rather than risk economic stagnation and recession. What People Are Saying German Gref, head of Sberbank, Russia's largest bank on Monday: "2026 promises to be not the easiest [year] either. That is why we need to get in good shape in 2025. "Much will depend on geopolitics, on how the dynamics of GDP growth will develop…but it is already clear that it will not be simple, because, in fact, the first half of 2026 is already visible." Maxim Reshetnikov, Russian economy minister, June 19 at the St. Petersburg International Economic Forum: "Based on current business sentiment, it seems to me we are on the brink of transitioning into recession." Elvira Nabiullina, head of Russia's Central Bank, June 19: "We have been growing for two years at a fairly high rate due to the fact that free labor resources were used... "But many of these resources have really been exhausted." Russian President Vladimir Putin told the same forum: "Rumors of [the Russian economy's] death are greatly exaggerated." Vasily Astrov, Vienna Institute for International Economic Studies: "There is still quite a lot of freedom in Russia when it comes to economic policy debates, the state of economy, unlike in Erdogan's Turkey, for example. So, it is not surprising that there are different opinions expressed by various officials." What Happens Next In Q1 2025, Russia's economy expanded 1.4 percent year-on-year, its slowest pace in two years and the World Bank forecasts further sluggish growth amid assessments of underlying productivity stagnation. Meanwhile, a banking crisis in Russia looms because of growing defaults not yet reflected in official statistics, with problem loans possibly reaching 3.7 trillion rubles ($47.3 billion) or one-fifth of the banking system's capital, according to Bloomberg. Current and former banking officials told the outlet there is a growing risk of a debt crisis in the next year if circumstances don't improve.
Yahoo
07-05-2025
- Business
- Yahoo
As Congress weighs retiring the penny, collectors fight to keep it alive
The humble penny, once a pocket staple, has long since lost its shine in American commerce, but it retains devoted fans who see value beyond its monetary worth. In North Carolina's Copper Penny Grille, owner Shelly Gref has transformed thousands of pennies into bar tops and artwork, giving Lincoln's likeness new purpose. "It grew into a little bit of an obsession with me. And then everybody just started donating pennies," Gref said. "People just come by and they say, I want to be a part of something." Gref said she appreciates the historical significance of the coins. "I like the older ones because they have more of a story," she said. "It just has a really special place in my heart." But economic realities have prompted bipartisan legislation in Congress that could end penny production, an idea President Trump has also supported. Wake Forest University professor Robert Whaples has advocated for eliminating the penny for decades, citing practical concerns. "They just have to keep making more and more of these, because we don't bring them back, and we don't bring them back because they're of such low value. So we got a vicious cycle going here," Whaples said. The economics don't add up, either. It costs nearly four cents to produce each one-cent coin, and Whaples estimates about $7 worth of pennies exist for every American. "Even if we could produce the penny for free out of thin air, it's just a waste of our time, and our time is valuable. Time is money," he said. At the Penny Depot, the Kilcoyne family—whose name aptly sounds like "kill-coin"—creates custom collectible pennies with pressing machines. They worry about their business if the coin is discontinued. "If they take it out of circulation, then that can hurt," Michelle Kilcoyne said. Her husband Josh sees potential upside: "But on the flip side of that, it's a collectible. And you know, if they start to make a collectible become more rare, the value starts to go up." Sneak peek: The Depraved Heart Murder Why Hegseth is calling for cuts to senior ranks across U.S. military Analyzing Trump's announcement of ceasefire with Houthi rebels in Yemen
Reuters
22-04-2025
- Business
- Reuters
Russia's Sberbank says board recommends record dividend for 2024
MOSCOW, April 22 (Reuters) - Russia's largest lender Sberbank ( opens new tab said on Tuesday that its board recommended paying a record high 786.9 billion roubles ($9.68 billion) in dividends. The dividend will amount to 34.84 roubles ($0.4285) per share for 2024. Russian banks' profits increased last year due to accelerated lending, which has since declined in response to the central bank raising its key interest rate. "This is another record in both the history of Sber and the Russian market," Sberbank's CEO German Gref said in a statement. "We will allocate half of this amount to the state, and the other half to our two million retail investors, for whom Sber's dividends remain an important source of income year after year," Gref said. The state holds 50% plus one share in the lender, and the dividend will contribute to budget revenues at a time when oil prices are falling and economic growth is slowing. Sberbank's dividend payout at 50% of the bank's net profit aligns with the Finance Ministry's expectations. Sberbank's net profit increased by 4.5% in 2024 to 1.58 trillion roubles. ($1 = 81.3000 roubles)
