VEB: Brexit could cause volatility on emerging markets

UK votes for withdrawal from the EU.

UK votes for withdrawal from the EU.

Reuters
"Brexit would destabilize both the euro and the European stock market"

The UK's withdrawal from the European Union could lead to increased volatility on emerging markets, but in future the EU's problems could bring back demand for the assets of emerging markets, including Russia, the deputy CEO of state bank VEB Andrei Klepach said on June 24.

"[Brexit] would destabilize both the euro and the European stock market, it would lead to disturbances on emerging markets," Klepach told reporters in Beijing.

But in future, these troubles and conflicts on the European financial market could probably revive interest in the securities of emerging markets, including Russia, Klepach said.

"Against this backdrop we have strong potential for growth in the value of securities taking into account the price situation for oil and the fact that next year the Russian economy, though slowly, will begin to grow, so after some shock interest in our securities will increase," Klepach, who was previously Russia's deputy economic development minister for macroeconomics, said.

How would Russia have voted in Brexit referendum?

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