Aug. 23—After speaking by video to the BRICS Business Forum Aug. 22, Russian President Vladimir Putin met with the Russian Council for Strategic Development and National Projects, on inflation and ruble volatility. The Council includes Finance Minister Anton Siluanov and Central Bank director Elvira Nabiullina, among others.

Putin demanded control of capital flight, speculation, and other factors that add to inflation and that contributed to the recent, sharp devaluation of the ruble on foreign exchange markets:

Volatility has grown considerably in the financial markets in recent months. We are well aware of this. Obviously, these fluctuations make it more difficult for businesses, companies, and individuals to make investment decisions. The government and the Bank of Russia should step up their use of the available instruments and adjust them with this objective situation in mind. It is also necessary to work on limiting the unproductive, speculative demand in the economy, control capital outflow, and monitor the actions of the main participants in the financial market.

A return to capital controls, such as the previous requirement for exporters to repatriate 80% or even more of foreign exchange earnings to Russia, may be imminent. For months after the “monster sanctions” placed on Russia by the U.S. Treasury and European Union on Feb. 22, 2022, that 80% conversion of export earnings to rubles was mandated by the Central Bank, which, however, began to loosen the regulation last Fall—a major bone of contention with some leading economic thinkers in Russia.

Putin also reported on recent improvements in the Russian economy, but said that increased productive credit inside Russia was required, including what he called “long money”:

As you may know, in conjunction with the government, the Bank of Russia has drafted a program that stimulates the funding of technological sovereignty projects and projects for structural adaptation of the Russian economy, including such industries and sectors as mechanical engineering, microelectronics, the medical and pharmaceutical industries, to name a few. To reiterate, these initiatives should enjoy additional support from the banking sector and the development institutions….

Creating “long money” in the economy and the banking system is a separate issue…. The issue is about creating a resource for financing ambitious, complex projects with an extended payoff period that can guarantee good return on invested funds and revenue that will last a long time.