Russian government believes news of Nord Stream 2 reduces nervousness around ruble

The Russian currency will strengthen in the near future, which will slow down inflation, said the head of the Ministry of Economic Development

Russian government believes news of Nord Stream 2 reduces nervousness around ruble

According to TASS, Russian Economic Development Minister Maxim Reshetnikov said in an interview with the Izvestia newspaper published on Tuesday that positive news about the launch of Nord Stream 2 on the psychological side reduces nervousness around the ruble.

“If we talk about psychological factors rather than economic ones, all the positive news around Nord Stream 2″ reduces nervousness. Since the ruble, from our point of view, is weakened relative to the fundamentals, we expect the exchange rate to be closer to fair values, also thanks to the media background”, –  Reshetnikov said.

The head of the Ministry of Economic Development added that such a trend would also affect inflation.

“It will slow it down, add the necessary tenths of a percentage point in the medium term”, – he specified.

Russian President Vladimir Putin told the SPIEF plenary session that the second string of Nord Stream 2 would be completed within 1.5-2 months.

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