Exclusive-Putin's central banker Nabiullina will serve until 2027 despite attacks, sources say
Governor of the Russian Central Bank Elvira Nabiullina attends a plenary session of the VTB Investment Forum 'Russia Calling' in Moscow, Russia December 4, 2024. Yuri Kochetkov/Pool via REUTERS/File Photo
MOSCOW (Reuters) - Russian central bank chief Elvira Nabiullina is safe in her job for two more years with President Vladimir Putin's personal support but the Kremlin will face a succession dilemma when her record tenure ends in 2027, two senior sources told Reuters.
Nabiullina, 61, has faced intense criticism from lawmakers and some prominent businessmen since she was appointed in 2013, but has always endured with Putin's backing.
Rumours of her demise intensified after the bank hiked rates by 200 basis points to 21% in October in an attempt to counter the inflationary pressure of the biggest Russian military spending since the Cold War.
Critics openly accused her on state television of sabotaging the Russian economy to help the United States, or of driving businesses to the brink of bankruptcy with an overly orthodox obsession with battling inflation.
But Nabiullina will stay in her role until her term expires in 2027 - when, by law, she has to step down - according to two senior sources who spoke to Reuters on condition of anonymity due to the sensitivity of the situation.
The sources - one senior Russian official and one top-level figure in the financial sector, both familiar with internal Kremlin discussions - told Reuters that Nabiullina was safe provided that no major policy mistakes occurred.
"She is not at risk; she has a strong position," said the Russian official. When asked if the Kremlin is considering a successor, the official simply noted that her contract has two years yet to run.
But some insiders are already talking about "Problem 2027", by which they mean the challenge of replacing not only Nabiullina but members of her team who may be tempted by more lucrative jobs elsewhere once she is no longer around.
A senior job in Russia's central bank, although prestigious, pays less than commercial banks and carries a higher risk of coming under Western sanctions - implying lost access to travel, foreign assets and education abroad for one's children.
"There is no problem now, the problem lies in 2027 when half of the central bank will leave with her, and there is simply no alternative team," said the senior financial source.
RARE PRAISE
The two keys to Nabiullina's longevity are the confidence of Putin and her efficiency in preserving macroeconomic stability despite Russia's conflict in Ukraine. When it started in 2022, she was lambasted simultaneously by nationalist hawks who questioned her loyalty to Putin and Kremlin critics who likened her to Adolf Hitler's war production minister Albert Speer.
A source with knowledge of discussions at the central bank said that the West's decision to freeze Russia's foreign currency reserves over the conflict in Ukraine had strengthened Nabiullina's resolve to continue working.
The Russian economy has performed better than expected for the past three years but is set to slow down sharply this year, stifled by high interest rates.
Additionally, Russia is preparing for a period of low oil prices and slumping budget revenues as high import tariffs imposed by U.S. President Donald Trump dampen global demand, making it a bad time for Putin to change horses, sources said.
"The tectonic changes in global trade are unfolding before our eyes, and it is still very difficult to judge where they will lead the global economy and how they will affect Russia," Nabiullina herself told parliament this month.
In a sign that her position has strengthened in recent weeks, Nabiullina received rare praise from lawmakers during her annual report on April 9 for shielding the economy from Western sanctions and developing a national payments system.
"The leadership of the central bank, as well as the parliament's banking committee, should be praised for doing everything in order to protect our country's financial system," influential Duma (parliament) speaker Vyacheslav Volodin said.
(Writing by Gleb Bryanski; editing by Mark Trevelyan and Mark Heinrich)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
5 hours ago
- The Star
French rabbi tells of two attacks in one week as hate crimes rise
PARIS (Reuters) - A French rabbi was attacked on Friday for the second time in a week, he told Reuters, reflecting a broad rise in hate crimes across France that has included high-profile anti-Semitic assaults. Elie Lemmel said he was sitting at a cafe in the Paris suburb of Neuilly-sur-Seine on Friday when he was hit in the head by a chair. "I found myself on the ground, I immediately felt blood flowing," he said. He was stunned and unsure what exactly had happened, he said, initially thinking something must have fallen from a window or roof, before it occurred to him he had been attacked. "Unfortunately, given my beard and my kippah, I suspected that was probably why, and it's such a shame," he said. Friday's incident follows another in the town of Deauville in Normandy last week, when Lemmel said he was punched in the stomach by an unknown assailant. Lemmel said he was used to "not-so-friendly looks, some unpleasant words, people passing by, spitting on the ground," but had never been physically assaulted before the two attacks. The prosecutor's office in Nanterre said it had opened an investigation into the Neuilly attack for aggravated violence and that a person was being held for questioning. It said it could not provide further details. "This act sickens us," former Prime Minister Gabriel Attal wrote on X regarding Friday's incident involving Lemmel. "Antisemitism, like all forms of hatred, is a deadly poison for our society." Last week, five Jewish institutions were sprayed with green paint in Paris. "I condemn in the strongest possible terms the anti-Semitic attack that targeted a rabbi in Neuilly today. Attacking a person because of their faith is a shame. The increase in anti-religious acts requires the mobilization of everyone," Interior Minister Bruno Retailleau said in a post on X. France has seen a rise in hate crimes. Last year, police recorded an 11% rise in racist, xenophobic or antireligious crimes, according to official data published in March. The figures did not include a breakdown by attacks on different religions. (Reporting by Gabriel Stargardter, Antony Paone, Dominique Vidalon; Editing by Hugh Lawson)
The Star
6 hours ago
- The Star
X plays up blue checkmark disclaimer to stave off possible EU fine, source says
The new logo of Twitter is seen in this illustration taken, July 24, 2023. REUTERS/Dado Ruvic/Illustration/File Photo BRUSSELS (Reuters) -Elon Musk's social media company X has highlighted a disclaimer to its blue checkmark in an attempt to head off a possible hefty fine from EU antitrust regulators, a person familiar with the matter said. The European Commission in July last year charged X with deceiving users, saying that the blue checkmark does not correspond to industry practices and that anyone can pay to get a "verified" status. The blue checkmark had previously indicated that an account belonged to a public figure whose identity was verified but Musk changed it to indicate it belonged to a paid subscriber after acquiring X in 2022. X has not admitted wrongdoing and the prominent display of the blue checkmark disclaimer is not part of any settlement proposal with the EU tech enforcer, the person said. The prominent display started a week ago. The Commission said it took note of X's announcement. "Our investigation related to the blue checkmark is ongoing," a spokesperson said. X did not immediately respond to an emailed request for comment. The EU probe is under the Digital Services Act which requires large online platforms to do more to tackle illegal and harmful content or risk fines as much as 6% of their global annual revenue. Bloomberg was the first to report on the blue checkmark disclaimer. (Reporting by Foo Yun Chee; editing by David Evans)
New Straits Times
6 hours ago
- New Straits Times
Myanmar arrests 16, including 6-year-old, over general's assassination
YANGON: Myanmar authorities have arrested 16 people including a six-year-old girl over the assassination of a retired general shot dead in Yangon last month, state media said. Cho Tun Aung, a former ambassador to Cambodia, was gunned down outside his home on May 22 in an attack claimed by an anti-junta group calling itself the "Golden Valley Warriors." Myanmar's military seized power in a 2021 coup, plunging the country into a complex, multi-sided civil war involving pro-democracy guerrillas and resurgent ethnic minority armed groups. Most fighting is confined to the countryside and smaller towns but grenade and gun attacks on junta-linked targets are regularly reported in Yangon, Myanmar's largest city and commercial hub. The Global New Light of Myanmar newspaper said 16 members of the Golden Valley Warriors – 13 men and three females – had been arrested in various locations. Those held include the wife and six-year-old daughter of the suspected shooter, identified as Myo Ko Ko, the state-run newspaper said, without explaining what the girl is accused of. The report said Myo Ko Ko and another suspect rode to the general's home on bicycles and shot him before fleeing to a safe house. The junta has suffered significant territorial setbacks in recent months but analysts say it is far from defeat, with a powerful air force supplied with Russian jets and military backing from China.--AFP
