Russia favors creation of independent SCO payment, settlement mechanism - PM

ISLAMABAD. Oct 16 (Interfax) - Russia is calling for the removal of obstacles to the implementation of plans to increase the share of national currencies in mutual settlements between the Shanghai Cooperation Organization (SCO) countries and believes the SCO needs an independent payment and settlement mechanism.

"To strengthen trade and economic cooperation, it is necessary to protect our financial sector from third countries' influence. To focus on the implementation of the roadmap to increase the share of national currencies in mutual settlements, which our leaders approved two years ago. And to remove the current obstacles," Russian Prime Minister Mikhail Mishustin said at a meeting of the SCO Heads of Government Council.

Simultaneously, "there is a need for an independent SCO payment andsettlement mechanism," Mishustin said. "For example, in the form of electronic platforms, bank institutions or a system of authorized financial agencies. That way we will create convenient and predictable conditions for business," Mishustin said.

There is also a need for a transparent instrument for financial support for project activities of the SCO, he said. "One of the options is to establish a special account and use it to support initiatives at the first stages. And they will be conducted through public-private partnership, concession agreements, using funding from the state budget and development institutions, and also other forms of mixed financing," Mishustin said.