Euro can be replaced by ruble

The single European currency, used in Russia as a unit of account for determining customs duty rates, can be replaced by another monetary unit.

This decision is due to the fact that the depreciation of the euro against the dollar has led to the fact that the specific component of customs duties established in euros can no longer perform a protective function. At the time the tariff was adopted, the euro to dollar exchange rate was 1.1:1, and currently the euro is worth about $0.88. Meanwhile, in the draft budget for 2001, the euro exchange rate against the dollar is still set at 1.1:1. This may lead to a reduction in budget revenues from foreign economic activity.

The Ministry of Trade and Economic Development of the Russian Federation is currently considering several options for resolving this issue. In particular, it is proposed to replace the euro with the ruble (the ministry's experts apparently consider the ruble a more stable currency than the euro). The final decision will be made by the government commission on protective measures in foreign trade and tariff and customs policy in January 2001.