October 16, 2018 / 7:03 PM / a month ago

UPDATE 1-Russia c.bank says ready to intervene on market if needed

(Adds details, quotes)

By Elena Fabrichnaya

MOSCOW, Oct 16 (Reuters) - Russia’s central bank is ready to intervene on markets if necessary to support the prices of certain assets in the event of a crisis, the bank’s First Deputy Governor Ksenia Yudayeva said on Tuesday.

Russian assets have been under pressure since 2014 when the first round of western sanctions were imposed on Moscow for annexing Crimea from Ukraine.

The rouble and Russian stocks and government bonds remain very sensitive to news of or speculation over any further restrictions.

A market selloff over fears of possible new U.S. sanctions drove the central bank to increase interest rates last month for the first time since 2014.

“In general, in case of an urgent need, the central bank has an option of buying certain assets on the market depending which market has a risk emerging,” Yudayeva told parliament on Tuesday. She did not specify say which assets the central bank might buy.

Vladimir Kolychev, a deputy finance minister, said separately on Tuesday he believed the rouble might need the central bank’s assistance most in the case of new western sanctions.

“So most likely, the market interventions are more related to the (Russian) currency rather than... other assets,” he said.

Yudayeva also said on Tuesday that most Russian banks would be sustainable under risk scenarios and should market volatility increase. (Reporting by Elena Fabrichnaya, Writing by Andrey Kuzmin and Katya Golubkova; Editing by Jon Boyle and John Stonestreet)

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