Features of the modern monetary system. The structure of the money supply in circulation The procedure for securing banknotes of Japan
Any monetary system is a set of elements regulated by state laws.
Modern monetary systems include the following elements.
1. Currency unit as an element monetary system represents the statutory banknote, which serves to measure and express the prices of all goods and, as a rule, is divided into small and multiple parts. The currency is legal tender. Name monetary unit develops historically, but in some cases (for example, during revolutions, political upheavals, the division of the country into independent countries or, conversely, the unification of countries into an economic and political union), the state may establish a new name for the monetary unit.
Types of banknotes are credit bank notes (banknotes), government paper money (treasury notes) and small coin, serving as legal tender in the country.
2. The procedure for securing banknotes inventory items, gold, freely convertible currency, securities and other debt obligations in the assets of banks.
3. emission mechanism, which is a statutory procedure for issuing money into circulation and withdrawing it from circulation. Non-cash money is issued by commercial banks in the process of making them credit operations. When repaying loans, money is withdrawn from circulation. The issue of cash is made through the settlement and cash centers of the central bank.
Withdrawal of cash occurs when commercial banks transfer cash to cash settlement centers.
4. Structure money supply in circulation. It is viewed in two ways. This is either the ratio between cash and non-cash money supply, or the ratio between banknotes of different denominations in the entire volume of money supply.
5. Monetary regulation mechanism, which is a set of monetary regulation tools (methods); the rights and obligations of the bodies exercising monetary regulation; tasks and objects of monetary regulation.
6. Establishment procedure exchange rate, which is determined based on the quote. Quotation - determination and establishment of the exchange rate of foreign currency in relation to the national currency. Currency quote allows you to determine the ratio of two monetary units offered for exchange. This ratio cannot be constant, as supply and demand in the foreign exchange market change. The quotation is carried out by central (national) banks and the largest commercial banks. Distinguish official and free (market) currency quotes.
The procedure for securing banknotes.
State legislation establishes that commodities, gold and precious metals, freely convertible currency, securities, insurance policies, guarantees of the Government, banks and other organizations, etc. The use of other types of collateral or violation of the basic rules for issuing collateral by banks should not be allowed.
emission mechanism.
It represents the procedure for issuing money into circulation and withdrawing it from circulation. The issue of money into circulation is daily combined with their withdrawal from circulation. Therefore, emission is understood as such an issue of money, which leads to a general increase in the money supply in circulation.
Non-cash money is issued by commercial banks in the process of their credit transactions. When repaying loans, money is withdrawn from circulation. The issue of cash is made through the settlement and cash centers of the central bank. Withdrawal of cash occurs when commercial banks transfer cash to cash settlement centers.
The structure of the money supply in circulation.
It is viewed in two ways. This is either the ratio between cash and non-cash money supply, or the ratio between banknotes of different denominations in the entire volume of money supply. Cash turnover is the process of movement (circulation) of money in cash and non-cash forms, in which money performs the functions of circulation and payment. Basically, money is constantly not in a static state, but in motion. Thus, money circulation is a form of existence of money and is an element of the monetary system.
The legislation of the country provides for payments for goods and services within the country to be made exclusively in the national currency. This does not mean that the population cannot freely exchange the national currency for the currencies of other countries on the territory of the country, but it is allowed to use such currency received during the exchange for payments abroad, as well as placement in bank deposits.
1.4 Elements of the monetary system
Like any system, the monetary system consists of a number of elements, which are presented in Figure 2 (Appendix 2).
The elements of the monetary system include:
1. Name of the currency
this element of the monetary system, as a rule, develops historically, however, in some cases, the state may establish a new name for the monetary unit. In Russia in the period 1822-1947. there were two names of the monetary unit - "ruble" and "chervonets". After monetary reform 1947 and up to our time in Russia, the single name of the national monetary unit, the “ruble”, has been preserved, which was enshrined in the law “On the Monetary System of the Russian Federation” adopted by the Parliament of the country and the law “On the Central Bank of the Russian Federation”.
2. The procedure for securing banknotes.
State legislation establishes that commodities, gold and precious metals, freely convertible currency, securities, insurance policies, guarantees of the Government, banks and other financial institutions. The use of other types of collateral or violation of the basic rules of registration by banks should not be allowed.
3. Emission mechanism
It represents the procedure for issuing money into circulation and withdrawing it from circulation. Non-cash money is issued by commercial banks in the process of their credit transactions. When repaying loans, money is withdrawn from circulation. The issue of cash is carried out through the settlement and cash centers of the Central Bank. Withdrawal of cash occurs when commercial banks transfer cash to settlement and cash banks.
4. Structure of the money supply in circulation
It is viewed in two ways. This is either the ratio between cash and non-cash money supply, or the ratio between banknotes of different denominations in the entire volume of money supply.
5. The procedure for predictive planning of cash flow
This procedure includes a system for forecasting money turnover plans; bodies that make these plans, a set of indicators determined with the help of these plans; tasks solved by each plan.
6. The mechanism of monetary regulation.
This mechanism is a set of tools of monetary regulation, the rights and obligations of the bodies that carry out monetary regulation, tasks and objects monetary regulation.
7. The procedure for establishing the exchange rate and quotation of currencies
It means the ratio of the currency of a given country expressed in the currencies of another country. Before perestroika, Russia used the procedure for setting the exchange rate based on the gold content of various currencies. However, since at present the gold content of the monetary unit is not fixed in any country, a quotation method is now used that takes into account fluctuations purchasing power national currencies, as well as the supply and demand of a particular currency for currency markets. The most popular quotation method is based on a "basket" of currencies, in which the national currency is compared with a number of other national currencies included in the "basket".
8. The order of cash discipline in the economy
It reflects a set general rules, forms of primary cash documents, reporting forms that enterprises and organizations of all forms of ownership should be guided by when organizing cash circulation passing through their cash desks.
Control over compliance with this procedure is entrusted to commercial banks that carry out cash service farms. Modern monetary systems are not static. They continue to evolve, becoming more economical and efficient. The general trend for the monetary systems of different countries is the expansion of the use of modern computing, computer, electronic equipment in the organization of money circulation. The concept of “electronic money” is increasingly being used, which is no longer records on paper media, but records in the form of electronic symbols, primarily on magnetic or other media. This allows a significant increase in the proportion non-cash turnover in total cash flow speed up settlements, ensure better control of banks and tax authorities for cash flow, to achieve significant savings circulation costs.
2 FEATURES OF THE MONETARY SYSTEM OF THE RUSSIAN FEDERATION
2.1 Legal basis monetary system of the Russian Federation
The monetary system of any state is an object legal regulation.
The leading role of the state in the development of the financial and credit system is provided by the Central Bank of Russia. Administered Russian Federation are financial, currency regulation and money issue. These most important powers of the state in accordance with Art. 4 of the Federal Law on Amendments and Additions to the Law of the RSFSR "On the Central Bank of the RSFSR" dated April 26, 1995, are within the competence of the Bank of Russia. Money issuance is carried out exclusively by the Central Bank of the Russian Federation, whose main function is to protect and ensure stability national currency- ruble. Moreover, the Central Bank of the Russian Federation performs this function independently of other state authorities. Those. It should be noted that the Constitution of the Russian Federation classifies the Bank of Russia as a public authority.
Until 1995, the issues of organizing the monetary system were regulated by a separate regulatory act - the Law of the Russian Federation on the monetary system of the Russian Federation of September 25, 1992, April 26, 1995 with the introduction of the Law on Amendments and Additions to the Law on the Bank of Russia, the said regulatory act lost force, and the organization of the monetary system is assigned by law to the Bank of Russia.
In accordance with the Law of April 26, 1995, the main activities of the Bank of Russia are to protect and ensure the stability of the ruble, including its purchasing power and exchange rate in relation to foreign currencies; development and strengthening banking system Russian Federation; ensuring efficient and uninterrupted functioning of the settlement system. Serious changes are constantly taking place in the field of banking regulation, as this complex system is being formed and adjusted. The federal law that has entered into force also contains quite a few articles regulating the activities of commercial banks.
The Constitution of the Russian Federation refers financial and currency regulation, money issue, federal banks to the jurisdiction of the Russian Federation. Consequently, the monetary system has a constitutional basis, and the norms of the Constitution about it are both the norms of constitutional (state) law and the norms financial law.
The norms of financial law fix in detail the organization of the monetary system of the Russian Federation. In addition, with the help of the norms of financial law on the signs of the solvency of banknotes, on ensuring the procedure for the circulation of cash, the basics of organizing settlements, etc. ensure its normal functioning.
Norms civil law regulate issues of ownership of money (banknotes), the procedure for settlements in transactions of a civil law nature.
The norms of administrative law establish responsibility for administrative offenses in the field of the monetary system, mainly in the process monetary circulation.
Finally, the norms of criminal law provide for criminal liability for the commission of crimes directed against the monetary system (previously it was mainly counterfeiting - the manufacture or sale of counterfeit money).
In the Criminal Code of the Russian Federation, liability for "Abuse in the issuance of securities (issues)" was introduced for the first time.
Thus, the norms of many branches of law are directly related to the monetary system.
A set of financial and legal norms specifically dedicated to the monetary system is contained in the Federal Law "On the Central Bank of the Russian Federation (Bank of Russia)". In addition, certain norms related to the monetary system are contained in the Federal Law “On Banks and banking", in Civil Code Russian Federation and in some other legislative acts of the Russian Federation.
Issues of a financial and technical nature that ensure the functioning of the monetary system (production of banknotes, rules for their transportation, storage and collection, creation reserve funds banknotes, establishment of signs and order of payment, replacement and destruction of damaged banknotes, etc.), are regulated regulations Bank of Russia, published on the basis of legislation.
Monetary regulation of the economy of the Russian Federation is carried out by the Bank of Russia. In accordance with the above regulation, the Bank of Russia determines the norms of required reserves, discount rates on loans, establishes economic standards for commercial banks, conducts operations with securities.
The Bank of Russia, in cooperation with the Government of the Russian Federation, develops and implements a unified state monetary policy aimed at protecting and ensuring the stability of the ruble.
Money circulation - the movement of money in cash and non-cash forms, serving the circulation of goods, as well as non-commodity payments and settlements.
The right to choose the form of payment - cash or non-cash - belongs to interested enterprises, institutions, other organizations, citizens. Only in cases specifically provided for by law, the form of payment should be clearly defined. This is, for example, the payment wages, scholarships and pensions, produced in cash. Emphasizing the close connection between the circulation of cash and non-cash money, the legislation operates with the category of "money supply". Money supply is banknotes in circulation; cash in accounts and deposits legal entities and citizens; other unconditional monetary obligations banks. The Bank of Russia may set growth targets for one or more indicators of the money supply based on the main directions of the unified state monetary policy.
When you study, you come across all sorts of new words, terms, without which you won’t particularly excel at the exam. Therefore, it is important to be interested in the meaning and meaning of words. In my classes, I encourage students to bombard the teacher with questions while there is an opportunity for this and, most importantly, completely legal right. After all, there will come a moment, called an exam, when the teacher will bring you down. Some of it is a joke, some of it is not. In short, there are a lot of new words in the topic “Monetary system”.
The word " System"Means something whole, made up of several ordered elements.
monetary system- this is a form of organization of money circulation in the country, which has developed historically and is enshrined in national legislation.
In its form, the monetary system is the organization of monetary relations in a country or in a single economic space, enshrined in the relevant legislation.
Remember when you played team games in the yard, each game has: participants, the meaning of the game and the rules, under which the game is possible at all. So it is with the monetary system. This is also a kind of game, only the life of an entire country is at stake, and the rules relate to the circulation of money. The same money, for the sake of possession of which a person is not capable of going to anything ....
A stable monetary system is one in which money fully performs all of its five functions. (who will immediately remember what in question, well done 🙂 It is the monetary system that creates the conditions for the fulfillment of its functions by money.
And so, how and why did the monetary system arise, how did it change, develop, and what kind of monetary system should be today in order for us to live happily? That's what this topic is about.
The genesis of the development of the monetary system
Genesis (Greek génesis), origin, occurrence; in a broader sense - the origin and subsequent process of development, which led to a certain state, type, phenomenon.
The monetary system was born during the functioning of markets and the strengthening of state power. There must be a place where transactions are made, the laws of demand, supply, etc. apply. and a firm hand is needed to use the effect of these laws for the good of the country.
In each country, the monetary system develops historically. known different types monetary systems. So, in the conditions of the existence of metallic money circulation, two types of monetary systems were distinguished: bimetallism and monometallism.
The type of monetary system depends on the form in which money functions: as a commodity or as signs of value, and later as credit money (more on this in the topics "Types of money" and "Theory of money").
At the beginning of its history, copper monometallism was established. It was in Ancient Rome in III - I centuries. d.n. e. Then came silver monometallism. Then the transition to gold monometallism began, but it was a gradual transition, and in different countries in different ways, somewhere silver, and somewhere gold, but there were states where these two precious metal coexisted together.
Bimetallism- a monetary system in which the state legislates the role of a universal equivalent for two metals gold and silver, coins from them function on an equal footing.
Monometallism- a monetary system in which one monetary metal is the universal equivalent and at the same time there are other signs of value in circulation (banknotes, treasury notes, small change) exchanged for gold. There were three varieties of gold monometallism: the gold coin standard, the gold bullion standard, and the gold trade standard.
gold coin standard- gold performs all the functions of money, in circulation are both gold coin, and signs of gold, free minting of gold coins with a fixed content of gold is carried out, gold coins are freely exchanged for signs of gold at face value.
Gold bullion standard It is characterized by the fact that banknotes are exchanged for gold bars, but only upon presentation of a certain amount of them.
Gold-motto standard- that banknotes are exchanged for mottos.
Mottoes are means of payment in foreign currency intended for international settlements. Foreign currency exchanged for gold was used. The important role of the gold-motto standard was that it fixed the currency dependence of some countries on others, which was the basis for the subsequent creation of a system of international currency agreements and currency regulation systems that ensure the relative stability of freely convertible currencies.
Features of the modern monetary system
- The abolition of the gold standard.
- Transition to credit money.
- The national currency is the banknote of the Central Bank.
- Issuance of banknotes secured by the assets of the Central Bank.
- Development of cashless payments.
- Monetary regulation.
Elements of the modern monetary system of paper and credit circulation
Currency unit- a banknote legally established in the country, the main element of the country's monetary system, which is a unit of monetary measurement. For example, the currency of Russia is the Russian ruble.
The procedure for securing banknotes- this is a characteristic of species and the basic rules for their provision. The law establishes what can serve as security for banknotes. It used to be gold. And now - the assets of the Central Bank.
Emission mechanism- this is the procedure for issuing and withdrawing banknotes from circulation; - the structure of the money supply in circulation.
Emission of money (from fr. émission - release) - issuance of new money into circulation, an increase in the circulating money supply. Emission is such a release of money into circulation, which leads to a general increase in the money supply in circulation. Issue is cash and non-cash.
There is a difference between such concepts as "issue of money in economic turnover” and “issuance of money”. But that's another story. Lavrushin O.I. wrote about this well. in the book Money. Credit. Banks.
The structure of the money supply in circulation - represents the ratio of cash and non-cash money, as well as the ratio of banknotes of different denominations in the total money circulation.
It looks like this. Although, if you build a diagram, it will look prettier.
money supply
M2 (national definition) in 2009 - 2011
(billion rubles)
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predictive planning- a system of cash flow plans. Since the monetary system must be stable and elastic, it is necessary to plan the volume and structure of the money supply in the future.
Monetary regulation mechanism is a set of tools to influence the economy. The Central Bank of the Russian Federation conducts monetary policy using mainly market methods and instruments: the refinancing rate, the required reserve ratio, operations on open market. Read more about the topic "Money credit policy» or on the website www.cbr.ru
Important information !
28.02.11 Bank of Russia refinancing rate increased to 8%.
from 1/04/2011 Required reserve ratios are increased for liabilities of credit institutions to non-resident legal entities in the currency of the Russian Federation and in foreign currency – from 4.5% to 5.5%; for obligations to individuals and other liabilities of credit institutions in the currency of the Russian Federation and in foreign currency – from 3.5% to 4.0%.
Setting the exchange rate— determination of proportions of currency exchange. An exchange rate is the "price" of a given country's currency expressed in foreign currency or international currency units. In Russia, a direct currency quotation is used. The rate is formed on the basis of the bi-currency basket. The dual-currency basket is a benchmark for the exchange rate policy of the Central Bank of the Russian Federation to determine real exchange rate ruble to dollar and euro.
Order of cash discipline- reflects a set of general rules, forms of documents and reporting that enterprises should be guided by when organizing cash circulation.
Cash discipline- compliance by organizations with the rules for cash transactions.
Monetary system of Russia 2011
The modern Russian monetary system should be considered from the moment of the monetary reform of 1998. We have the introduction of other monetary units on the territory is prohibited. The ruble exchange rate is set by the Central Bank of the Russian Federation. We are striving for a floating exchange rate, but so far the currency corridor regime is in effect.
The issued banknotes and coins of the Central Bank of the Russian Federation are secured by its assets. Cash (banknotes and coins) and non-cash payments(account amounts). There are rules and principles for organizing these calculations.
In 2010–2011, against the background of the recovery of economic activity and strengthening of the balance of payments, the state of the monetary sector as a whole was characterized by an increase in demand for the national currency, a high level of bank reserves, and a decrease in interest rates and a gradual increase in lending to the real sector of the economy.
So, dear students, the trends in our monetary system are very positive.
good luck on the exam.
2. The procedure for securing banknotes is valid in countries in accordance with the established law.
3. Emission mechanism - a legislatively established procedure for issuing banknotes into circulation. Emission operations (to issue and withdraw money from circulation) are carried out by the Central Bank of the Russian Federation, which enjoys the monopoly right to issue banknotes, which make up the vast majority of cash. Operates on the basis of federal laws "On Central Bank RF (Bank of Russia)” dated April 26, 1995 and “On banks and banking activity” dated February 3, 1996, with subsequent amendments and additions.
4. The structure of the money supply in circulation is the ratio of cash and non-cash money, as well as the ratio of banknotes of different denominations in the total money circulation. Banknotes in denominations - 10, 50, 100, 500, 1000 and 5000 rubles, coins - 1, 5, 10, 50 kopecks.
5. The procedure for establishing the exchange rate or currency quotes, i.e. the ratio of the country's currency to foreign currencies. Implemented Central Bank RF.
Topic 3. The evolution of monetary systems and the monetary policy of the state.
1. The reason for the abolition of the gold standard in all countries since the late 70s (after the IMF Conference in Jamaica) is the unleashing of uncontrollable inflationary processes under the gold standard.
2. It is known that gold bars were replaced by coins. I think that issuing gold coins is more profitable than selling bullion, because. they are much easier to sell, because they have less weight and therefore they can be purchased by more people.
3. If the money for transactions makes an average of 5 turnovers per year, then the amount of money needed to service the exchange, which is in demand, is 5 times the nominal volume of GNP.
Topic 4. Finance: general concept and main features. financial policy.
1. What functions of money are based on the following functions of finance - distributive and control?
The distributive function of finance is based on the following functions of money - as a measure of value, as a means of accumulation and savings, world money.
Control - as a means of circulation, as a means of payment.
2. What kind (in isolation or in interconnection) do the distributive and control functions of finance operate?
These functions operate in interconnection with each other, for example, the control function manifests itself before the onset of the distribution process, when programs, forecasts, and budgets are drawn up. The control function is manifested in the process of using funds Money, in the execution of the planned programs, plans, estimates, and distribution - in the formation of these funds.
3. Does the rapid development of commercial banking in the Russian Federation lead to a change in the function of finance.
Under these conditions, the functions of finance will be even more important. So, for example, the control function plays an important role in credit and banking control, when using the principles of lending and cash settlements. positive impact on financial sector the development of commercial banks means that the more banks, the more competition, which means that the population will be offered a lot profitable systems capital investment, which in turn leads to an increase in investment in the country. However, there is also a negative point, the fact is that then it will be necessary to strengthen, tighten and expand control over these banks in the field of money circulation.
Topic 5. Financial system: a combination of reimbursable and non-reimbursable cash flows and the formation of finances of economic entities.
1. What are the features of the control exercised financial authorities And tax inspectorates?
This control is part financial activities state and such activity is special due to the fact that it is carried out on behalf of the state represented by the relevant bodies (Ministry of Finance of the Russian Federation, Federal Treasury, Accounts Chamber, Federal tax service, Bank of Russia, etc.).
In addition, such control is important, because it is carried out for the monetary funds of the state at different levels: at the federal, regional and local levels.
It is carried out during the execution of the planned programs, plans and estimates, namely the budget of the Russian Federation, the budgets of the constituent entities of the Russian Federation, the budgets municipalities and estimates of budgetary enterprises, institutions, organizations.
Since the largest mass of budget revenues at any level are tax revenues, the role of control carried out by tax inspectorates is obvious. How productively this control will be carried out, how much the revenue side of the budget will be executed, and subsequently - how much funding will be made for all expenditure parts of the budget. All this ultimately affects the standard of living in the country of the population, economic development countries, etc.
2. What are the features of the audit form of financial control? What organs carry it out?
Audit control is carried out in accordance with federal law dated August 07, 2001 No. 119-FZ “On audit debt”, according to which audit is an entrepreneurial activity for independent verification accounting and financial (accounting) statements of organizations and individual entrepreneurs.
The purpose of the audit is to express an opinion on the reliability of the financial (accounting) statements of the audited entities and the compliance of the accounting procedure with the legislation of the Russian Federation. Reliability is understood as the degree of accuracy of financial (accounting) reporting data, which allows the user of this reporting, based on its data, to draw correct conclusions about the results. economic activity, financial and property status audited entities and make informed decisions based on those findings.
Auditing activities are carried out along with financial control conducted in accordance with the legislation of the Russian Federation by a specially authorized government agency. Auditors who have passed certification and wish to work independently, as well as audit firms, begin their activities after state registration as a subject entrepreneurial activity, obtaining a license and inclusion in State Register auditors and audit firms.
In accordance with the Decree of the Government of the Russian Federation of March 29, 2002 No. 190 "On Licensing of Auditing Activities", it is carried out by the Ministry of Finance of the Russian Federation (licensing authority). The license is issued for a period of five years, subject to a number of established requirements:
Availability qualification certificate and the auditor
Carrying out business activities only in the form of an audit and the provision of audit-related services,
Ensuring the safety of information constituting an audit secret, and other conditions.
The Ministry of Finance of the Russian Federation, in order to ensure that licensees comply with the above license requirements, conducts an audit of their activities. The term of this check should not exceed 45 days. The licensing body is not entitled to conduct more than one audit of an audit organization (individual auditor) during one calendar year on the same issues, except for cases when the audit is carried out in connection with requests and complaints from customers audit services and/or law enforcement agencies. In the event that a licensee violates the licensing requirements and conditions, the licensing authority is obliged to send a warning to the licensee within a month after the completion of the inspection, indicating the violations found and the deadlines for elimination.
Audit is divided into: mandatory and proactive.
Mandatory audit is carried out in cases expressly established by legislative acts RF (Article 7 of the Law on Auditing), initiative - by decision of the business entity.
A mandatory audit is an annual mandatory audit of the accounting and financial (accounting) statements of an organization or individual entrepreneur.
Mandatory audit is carried out in cases where:
1. the organization has the organizational and legal form of an open joint-stock company;
2. the organization is credit institution, insurance organization or mutual insurance company, commodity or stock exchange, investment fund, state off-budget fund a fund whose source of funds is voluntary contributions from individuals and legal entities;
3. the amount of revenue of an organization or an individual entrepreneur from the sale of products (performance of work, provision of services) for one year is 500 thousand times higher than established by law minimum size wages or the amount of balance sheet assets exceeds the specified standard at the end of the reporting year by 200,000 times;
4. the organization is a state unitary enterprise, a municipal unitary enterprise based on the right of economic management, if its indicators comply with the standards indicated earlier;
5. obligatory audit in relation to these organizations or individual entrepreneurs is provided for by the relevant federal law.
Deadline audit is determined by agreement with the auditor, but, as a rule, is no more than 2 months.
The audit ends with the preparation of a formal document - auditor's report compiled in accordance with federal regulations(standards) of audit activity and containing the opinion of the audit firm (auditor) on the reliability of the financial (accounting) statements of the audited entity and the compliance of the procedure for maintaining its accounting with the legislation of the Russian Federation.
The quality of the audit report can be verified by the authority that issued the license to carry out audit activities, at the request of an economic entity, on its own initiative or at the proposal of the prosecutor. In the event that an unqualified audit that led to losses for the state or for an economic entity is discovered, they can be recovered from the auditor (audit firm) on the basis of a court decision or arbitration court at the request of the authority that issued the license.
A deliberately false audit report has been drawn up, entails liability in the form of cancellation of the license to carry out audit activities, and for the person who signed such a report, also the cancellation of the auditor's qualification certificate and bringing him to criminal liability in accordance with the legislation of the Russian Federation.