The possible introduction of the new currency has been mentioned by Russian Premier Dmitry Medvedev, who called it “not an immediate priority, but an idea worth considering”.

Kudrin told the press on Thursday that not all the Eurasian Union countries have sovereign ratings and therefore the quality of their financial systems is “below reasonable”. “If these countries are to be involved in a common currency, the quality of the Russian rouble will plummet. I do not see the need for involving countries that suffer a permanent financial crisis in a common currency – this will hit the Russian rouble”, he said.

Kudrin mentioned Europe as proof that “currency union must be supported by financial union, meaning tough financial policy restrictions, including spending and fiscal policy”.

This will make Russia the driver of Eurasian Union policy, “like the European Union is to Greece, this will also foster a permanent conflict – who pays for who and should these countries stick to the tough rules, while they are still developing”.

He also noted that the common currency will not benefit the “weaker” Eurasian Union members. “It appears that the currency union will tie the currency rate to the Russian fundamentals, not the other members, and the currency will become stronger or weaker regardless of these countries’ needs. I think this will not benefit them”, said the ex-Minister.

Kudrin also thinks that Russia is not yet in a position to offer the common currency as the country is still highly dependent on the oil price. “We must overcome this dependency and not expose other countries to the risks”, he said.

Project Group №4, Alexei Kudrin