The Bank of Russia has announced that it will increase the declared capital of reinsurance for RNPC from ₽71bn ($0.6bn) to ₽300bn ($2.57bn).
The move comes as sanctions on the Russian economy begin to bite, with wide reports of soaring prices and shortages.
In a statement, the Bank of Russia said: “One of the main activities of JSC RNPC is to provide insurance protection for enterprises that have fallen under international sanctions. The increase in the declared capital of JSC RNPC will expand the ability of Russian insurance companies to reinsure risks within the country, create additional reinsurance capacities, and work with new sanction risks.”
It added: “It is expected that in the near future the State Duma will receive a bill to increase the mandatory share of reinsurance in JSC RNPC.”
There has been a flurry of activity from the Bank of Russia in recent days, including the reduction of reserve ratios for banks and non-credit organisations to 2%.
Commenting, the Bank of Russia said: “The implementation of this measure will lead to a decrease in the total amount of required reserves of credit institutions by about ₽2.7 trillion ($23bn), of which about ₽0.7 trillion ($6bn) will reduce the required reserves in the accounts for their accounting and about ₽2.0 trillion ($17bn) will reduce the average required reserves.”
