Press Release No. 96/29

Press Release: Russian Federation Accepts Article VIII Obligations

June 5, 1996

The Russian authorities have notified the International Monetary Fund (IMF) that, with effect from June 1, 1996, the Russian Federation has accepted the obligations of Article VIII, Sections 2, 3, and 4, of the IMF Articles of Agreement. IMF members accepting the obligations of Article VIII undertake to refrain from imposing restrictions on the making of payments and transfers for current international transactions or from engaging in discriminatory currency arrangements or multiple currency practices without IMF approval. A total of 116 countries have now assumed Article VIII status.

Two of the main purposes of the IMF, as stated in its Articles of Agreement, are to facilitate the expansion and balanced growth of international trade, and to contribute thereby to the promotion and maintenance of high levels of employment and real income; and to assist in the establishment of a multilateral system of payments in respect of current transactions between IMF members. In seeking to achieve these objectives, the IMF exercises firm surveillance over the exchange rate policies of its members, and oversees the elimination of exchange restrictions that hamper the growth of world trade.

By accepting the obligations of Article VIII, the Russian Federation gives confidence to the international community that it will continue to pursue sound economic policies that will obviate the need to use restrictions on the making of payments and transfers for current international transactions, and thereby contribute to a multilateral payments system free of restrictions. Russia's acceptance of the obligations of Article VIII on the fourth anniversary of its joining the IMF is a welcome step toward full convertibility of the ruble and marks an important milestone in the country's rapid integration into the global economy.

Russia joined the IMF on June 1, 1992; its quota¹ is SDR 4,313.1 million (about $6,220 million).

1. A member's quota in the IMF determines, in particular, the amount of its subscription, its voting weight, its access to IMF financing, and its allocation of SDRs.