CONTENTS

M.V. Petrov
The Impact of Geopolitical Tensions on International Capital Flows, p. 8-22
Abstract
The study examines the impact of geopolitical tensions, which have increased sharply in recent times, on international capital flows. It shows that geopolitical tensions affect cross-border investment flows through three main channels: increased geopolitical risks that encourage international investors to reduce investments in countries with different foreign policies; tighter controls on incoming FDI in many countries to ensure national security; and financial sanctions imposed by Western countries to put pressure on other states. Based on the analysis of investment relations between the United States and China, the contradictions between which are the main source of geopolitical tension in the world, the author confirms the conclusion that the influence of geopolitical factors on capital flows between the countries has increased since the second half of the 2010s. However, the study substantiates that the emerging fragmentation of cross-border capital flows can have not only negative, but also positive consequences for the global economy and finance. The compression of capital flows between the countries of the global North and South may push the latter to establish closer integration ties in the financial sector, create financial infrastructure independent of the West, focused on the needs of developing countries, and accelerate the internationalization of their currencies. As a result, these processes could weaken the dominance of Western countries in the global financial system and facilitate its transition to a more equitable multipolar configuration.
Keywords: international capital flows, geopolitical tensions, geopolitical risks, foreign direct investments, portfolio investments
JEL: F02, F21, F51
For citation: Petrov M.V. (2024). The Impact of Geopolitical Tensions on International Capital Flows. Financial Journal, 16 (3), 8–22 (In Russ.). https://doi.org/10.31107/2075-1990-2024-3-8-22.
© Petrov M.V., 2024

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N.E. Barbashova, A.N. Komarnitskaya
Problems and Prospects of Inter-budget Relations in Russia’s Urban Agglomerations, p. 23-39
Abstract
The development of urban agglomerations is an urgent direction of the state policy of the Russian Federation in the field of territorial development. The purpose of this article is to identify current problems in the sphere of budgetary interaction within urban agglomerations and to develop approaches to building an optimal system of inter-budget relations in different agglomeration models. Among them we can distinguish the traditional model (in which the core is an urban district, the satellite zone — municipalities located in the same subject of the Russian Federation), the interregional model (municipalities forming an agglomeration are located in several subjects of the Russian Federation) and the model of agglomeration formed around a city of federal significance. The result of the study is a set of proposals for building interrelated measures in the field of inter-budget relations aimed at creating conditions to stimulate agglomeration processes. The proposals include recommendations for certain amendments and additions to the current budgetary legislation in order to adapt the instruments of inter-budget regulation to the needs of territorial development.
Keywords: agglomerations, agglomeration development, inter-budget relations, horizontal transfers, horizontal budget loans
JEL: H70, H77
Funding: The article was written on the basis of the RANEPA state assignment research program.
For citation: Barbashova N.E., Komarnitskaya A.N. (2024). Problems and Prospects of Inter-budget Relations in Russia’s Urban Agglomerations. Financial Journal, 16 (3), 23–39 (In Russ.). https://doi.org/10.31107/2075-1990-2024-3-23-39.
© Barbashova N.E., Komarnitskaya A.N., 2024

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L.V. Polezharova, M.R. Pinskaya, E.Yu. Vinogradova
Improving Russia’s Tax Policy in the Sphere of International Taxation, p. 40-50
Abstract
Given the need for the Russian Federation to adapt to sanctions and increase its resilience to new challenges, there is an urgent need to improve tax policy in the sphere of international taxation. This article proposes several conceptual approaches to protecting Russia's tax interests and ensuring its sovereign rights in the international tax sphere. In this regard, the authors conduct an empirical assessment of the consequences for Russia of foreign initiatives to distribute global profits between jurisdictions in the context of the country’s limited participation in traditional information exchange. The assessment addressed the areas of international exchange of tax information and procedures for resolving international tax disputes. The authors suggest measures to counter the erosion of the national tax base in the context of limited cooperation and collaboration in tax administration. Once we have clarified the current multilateral and bilateral international tax treaties with states that have not imposed sanctions on Russia, we will be able to assess the country's attractiveness to investors from these countries and understand the practical implications of the findings.
Keywords: international taxation, deoffshorization, international tax cooperation, international tax treaty, exchange of information, Pillar 1, Pillar 2
JEL: F23, H25, H26
Funding: The article is based on the results of research carried out at the expense of budgetary funds under the state assignment to the Financial University for 2024.
For citation: Polezharova L.V., Pinskaya M.R., Vinogradova E.Yu. (2024). Improving Russia’s Tax Policy in the Sphere of International Taxation. Financial Journal, 16 (3), 40–50 (In Russ.). https://doi.org/10.31107/2075-1990-2024-3-40-50.
© Polezharova L.V., Pinskaya M.R., Vinogradova E.Yu., 2024

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G.A. Petrosyan, N.N. Karapetyan, A.A. Margaryan, A.N. Sokolov, I.I. Yakovleva, A.I. Votinov
Bayesian Approach to Forecasting Aggregate Taxes of the Republic of Armenia, p. 51-67
Abstract
This paper is devoted to the application of the Bayesian approach to the forecasting of aggregate taxes on the example of the Republic of Armenia. Typically, this approach is used in large-scale BVARs to forecast macroeconomic variables. The objective of this study is to estimate the efficiency of the Bayesian approach to constricting relatively low-scale fiscal VARs. Another objective is to build a specific BVAR model for forecasting tax revenues in the context of actual forecasting rounds. The study is based on seasonally adjusted quarterly aggregate tax data and the corresponding proxy bases. A hierarchical approach to the selection of BVAR’s priors is implemented. It assumes the random nature of variances in the prior values of the coefficients. The hierarchical approach is also characterized by a high level of variability of hyperparameters. To determine the optimal structure of the BVAR model in terms of out-of-sample prediction accuracy, a special algorithm was developed. This algorithm involves a specific procedure for the selection of priors and model parameters, which allows to significantly minimize the prediction error. The Geweke and Gelman-Rubin tests were used/considered to check the convergence of the parameters, and the acceptance rate of the Metropolis-Hastings algorithm was taken into account. It Additional priors, such as the sum-of-coefficients prior and the dummy-initialobservation prior (single-unit-root), are shown to improve the quality of out-of-sample forecasts. These priors allow for the possibility of the existence of a single root and cointegration between variables. The main finding of this study is that the proposed algorithm for selecting parameters in BVAR significantly improves out-of-sample performance compared to traditional frequency VAR.
Keywords: aggregate tax forecasting, vector autoregressive model (vector autoregression), Bayesian hierarchical approach
JEL: C11, C32, H68
For citation: Petrosyan G.A. et al. (2024). Bayesian Approach to Forecasting Aggregate Taxes of the Republic of Armenia. Financial Journal, 16 (3), 51–67 (In Russ.). https://doi.org/10.31107/2075-1990-2024-3-51-67.
© Petrosyan G.A. et al., 2024

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R.V. Balakin, Yu.A. Steshenko
Review of Approaches to Assessing the Impact of New Challenges on the Economy and Certain Aspects of Taxation, p. 68-85
Abstract
The article presents a review of publications devoted to the approaches to assessing the impact of external shocks on the economy in general and on certain aspects of taxation in particular. It considers both studies that assess this impact by analyzing macroeconomic indicators (less often — budget indicators) and building econometric models (mainly SVAR and VAR models are used in this case), and studies in which various authors propose their own indicators to assess this impact (most often they are either sustainability indicators or stress indicators). Special attention is paid to publications the subject of which is the impact of new challenges on the tax system. A separate block includes publications in which the above issues are considered in relation to the Russian tax system. These are not only scientific articles on the topic, but also documents of international organizations, such as the International Monetary Fund, OECD, World Bank, etc. In addition, the article provides an overview of publications of foreign scientific institutes and research centers. Sanctions imposed on the economy of the Russian Federation are a particular case of an external shock. Thus, a review of publications assessing the impact of new challenges (by the example of sanctions) on the tax system of the Russian Federation is presented. The authors conclude that to assess the impact of new challenges on the tax system it is more advisable to use indicators based on statistical tax reporting.
Keywords: tax system, external shocks, new challenges, sanctions, tax security
JEL: H12, E62
Funding: The research was funded by the Russian Science Foundation, project No. 23‑78‑10160, https://rscf.ru/project/23-78-10160/.
For citation: Balakin R.V., Steshenko Yu.A. (2024). Review of Approaches to Assessing the Impact of New Challenges on the Economy and Certain Aspects of Taxation. Financial Journal, 16 (3), 68–85 (In Russ.). https://doi.org/10.31107/2075-1990-2024-3-68-85.
© Balakin R.V., Steshenko Yu.A., 2024

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A.F. Kireyeva, K.V. Rudy
Paradoxes of the Anti-crisis Role of Fiscal Federalism: Analytical Review of Studies, p. 86-97
Abstract
The analytical review of studies of the anti-crisis role of fiscal federalism during economic, ecological, epidemic challenges and territorial conflicts in 1950–2024 reveals four paradoxes. The first of them indicates the scientific validity of the positive anti-crisis effect of fiscal decentralization. But when crises arise in practice, decentralization turns out to be unclaimed, and preference is given to centralization. The second paradox is related to the nonlinear positive effect of fiscal decentralization on economic growth, natural resources consumption, and carbon emissions. For example, the nonlinear positive effect of decentralization is achieved when the institutional context is improved. The third paradox is the relatively weak methodological elaboration of fiscal federalism during pandemic challenges, although it had the greatest practical relevance compared to more in-depth econometric studies of economic and environmental challenges. The fourth paradox is that fiscal federalism can both resolve the territorial conflict and create the preconditions for its resumption in the future. The peacemaking conditions of fiscal federalism are transparency and stability of inter-budget transfers, as well as insured access of the conflict region to its natural resources.
Keywords: fiscal federalism, public finance, economic crises, sustainable development, pandemic, conflicts
JEL: H12, H71, H77, R11, R58
Funding: The article was prepared as the result of the research financed by budgetary funds upon the state request from Financial University.
For citation: Kireyeva A.F., Rudy K.V. (2024). Paradoxes of the Anti-crisis Role of Fiscal Federalism: Analytical Review of Studies. Financial Journal, 16 (3), 86–97. https://doi.org/10.31107/2075-1990-2024-3-86-97.
© Kireyeva A.F., Rudy K.V., 2024

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S.I. Chuzhmarova, A.I. Chuzhmarov
Tax Incentives for Transition to Rational Consumption and Production Patterns, p. 98-113
Abstract
The presented work touches upon the problem of economic transition to more environmentally friendly types of production and more careful use of resources, which is topical for the world community. The problem of transition from environmentally costly production models to more sustainable ones is reflected in the UN’s Sustainable Development Goal 12, titled “responsible consumption and production”. Achievement of this global goal is impossible without state financial support and investment incentives. One of the main financial instruments of stimulation are taxes, which at the national level allow to directly and indirectly influence producers of environmentally friendly products and their transition to new green technologies, as well as consumers. The problem of increasing the impact of taxes pushes for the transformation of taxation and the formation of new incentives. The arsenal of developed and developing countries has a wide range of fiscal instruments and accumulated experience of tax impact on production and consumption, the study of which can be useful in the formation of tax policy. The purpose of this paper is to analyze the experience of individual countries and systematize the tools of tax incentives for the transition to more environmentally friendly types of production and rational consumption of resources and justification of promising directions of tax impact. Based on the study of international experience, the authors determine the approaches of countries to the construction of tax incentives for the rational development and use of natural resources, reduction of environmental pollution. They also substantiate the need for tax support for building up scientific and technological potential, sustainable tourism and sustainable public procurement. The next promising direction of research may be the formation of tax instruments to eliminate market imbalances reflected in wasteful consumption of resources, transformation of indirect taxation of consumption, tax support for social projects, tax regulation of energy efficiency.
Keywords: tax, sustainable development, production, consumption, incentives, SDG 12
JEL: H22, H61
Funding: The publication was prepared in accordance with the Research Plan of the Pitirim Sorokin Syktyvkar State University and the Research Plan of the Institute of Economics of the Urals Branch of the Russian Academy of Sciences.
For citation: Chuzhmarova S.I., Chuzhmarov A.I. (2024). Tax Incentives for Transition to Rational Consumption and Production Patterns. Financial Journal, 16 (3), 98–113 (In Russ.). https://doi.org/10.31107/2075-1990-2024-3-98-113.
© Chuzhmarova S.I., Chuzhmarov A.I., 2024

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B.I. Alekhin
Russians’ Personal Savings in the Regional Context, p. 114-132
Abstract
The purpose of this study is to find empirical evidence of long-run equilibrium relationship between the personal savings ratio and several factors that, in the author’s opinion, determine this ratio. To achieve this purpose, a panel for 82 regions of the Russian Federation for the years 2000–2022 was assembled on the basis of official statistics data. In the descriptive part of the paper, we examined theories of personal savings, saving behavior of the population, the impact of personal savings on economic growth and the reasons why regional authorities should improve the climate for personal savings and growth of the working-age population in their regions. We used the PMG method to estimate our empirical ARDL model and found that the personal savings ratio is mainly determined by the age composition of the regional population and regional inflation, while money income and household final consumption are robust control variables. There is a long-run equilibrium relationship between these variables.
Keywords: personal savings, economic growth, cointegration, regions, Russia
JEL: D14, E21, C23
For citation: Alekhin B.I. (2024). Russians’ Personal Savings in the Regional Context. Financial Journal, 16 (3), 114–132 (In Russ.).
https://doi.org/10.31107/2075-1990-2024-3-114-132.
© Alekhin B.I., 2024

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CONTENTS

L.S. Kabir
Tuning Climate Finance: Outcomes of СOР28, p. 8-26
Abstract
The purpose of the study is to systematize the main directions of the discussion that unfolded at the COP28 UN Climate Change Conference in Dubai in November-December 2023 on the need to reform the financial mechanism of the UN climate convention. The relevance of this study is based on the fact that today the conditions have been formed to intensify Russia’s participation in the discussion at the international level on the goals and objectives of climate and sustainable finance, as there is growing dissatisfaction with the aggressive policy of developed countries trying to solve their development problems, including by distorting and replacing the global agenda previously agreed by the majority of the world's countries on the UN platform. The main conclusion of the study is as follows. When considering the problems of organization of both the climate finance mechanism and the sustainable finance mechanism in the context of the organization and functioning of the Technology Mechanism (UNFCCC) and the Technology Facilitation Mechanism (UN 2030 Agenda), embedded in the current discussion on the need to reform the financial mechanism of the UN climate convention, many issues related to the incorrectness, inconsistency and divergence of these concepts at the level of different countries can be effectively addressed by the UNFCCC. Returning the consideration of both climate and sustainable finance to the context of technological modernization tasks solved by society (as originally defined in the UN documents) will make it possible to return the process of transition of countries to a new sustainable development model to the original direction; to get rid of manipulations and substitution of concepts used by a group of developed countries; to reach consensus among all Parties to the Convention.
Keywords: climate finance, sustainable finance, climate change, climate change adaptation, sources of finance, finance flows, financing instruments, sustainable development
JEL: F53, F55, F65, F68, O44, Q48, Q54, Q58
For citation: Kabir L.S. (2024). Tuning Climate Finance: Outcomes of СOР28. Financial Journal, 16 (2), 8–26 (In Russ.). https://doi.org/10.31107/2075-1990-2024-2-8-26
© Kabir L.S., 2024

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M.Yu. Malkina, D.Yu. Rogachev
Financial Contagion of the Russian Stock Market from the European Stock Market During the COVID-19 Pandemic, p. 27-42
Abstract
This paper investigates the transmission of financial contagion from the European to the Russian stock market during the COVID-19 pandemic. Financial contagion refers to the spread of instability and shocks across individual countries, sectors, or markets during a crisis, where the relationship between returns and volatility of different assets goes beyond normal interactions. Using the construction of extended autoregressive models, we test the contagion of the RTSI composite index from the EURO STOXX 50 index, with the US dollar exchange rate and the spot price of Urals crude oil serving as control variables. The calculation of the moving coefficient of variation in assets prices allows us to distinguish the pre-crisis, crisis and post-crisis periods, for which three separate autoregressive models are built. The contagion of the Russian stock market from the European stock market in these models is identified in two ways: 1) based on the growth and significance of estimated coefficient for the tested variable (STOXX 50 index return) during the crisis; 2) through an increase in the contribution of the tested variable to the explained variance of the dependent variable (RTSI return). In addition, we tested contagion based on the method of central co-moments of the distribution of returns, skewness and volatility of the tested and dependent variable. The analysis has convincingly demonstrated the existence of a financial contagion effect from the European stock market to the Russian stock market in the short term — strengthening of the impact of the European STOXX 50 index on the Russian RTSI index in the acute phase of the pandemic. Understanding the factors contributing to the spread of market shocks in the context of financial globalization can help policymakers to implement effective financial regulatory measures and maintain long-term financial stability in line with national interests. For investors, it helps to identify potential risks and opportunities, enabling optimal hedging and diversification response strategies.
Keywords: stock market, rate of returns, financial contagion, COVID-19 pandemic, exchange rate, crude oil price, extended autoregressive model
JEL: G01, F37
Funding: The research was supported by the Russian Science Foundation grant No. 23-28-00453, https://rscf.ru/project/23-28-00453/.
For citation: Malkina M.Yu., Rogachev D.Yu. (2024). Financial Contagion of the Russian Stock Market from the European Stock Market During the COVID-19 Pandemic. Financial Journal, 16 (2), 27–42 (In Russ.). https://doi.org/10.31107/2075-1990-2024-2-27-42
© Malkina M.Yu., Rogachev D.Yu., 2024

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A.V. Navoy
Prospects for Transformation of the System of International Settlements in the Russian Federation
Based on Central Banks Digital Currencies, p. 43-58
Abstract
Fragmentation of the global financial and economic space and difficulties in the organization of international settlements cause the restructuring of the international settlement system of the Russian Federation. Russia’s need for a reliable system of international settlements is due to its rapid involvement in the system of international trade, the need for high-tech imports, sales of raw materials and high-grade goods. One of the most promising options for a new design of payment infrastructure protected from sanctions pressure is the creation of an international payment system based on the peer-to-peer model using central bank digital currencies (CBDC). The Committee on Payment Infrastructures is actively theorizing this model. To date, the Russian Federation (digital ruble) and the People's Republic of China (digital yuan) demonstrate a high level of readiness to make settlements in the CBDC. The creation of a payment system based on CBDC fundamentally changes the entire landscape of international settlements, not only reducing the cost of transactions, but also ensuring their reliability, transparency and protection from the negative influence of other countries. Of particular interest is the model of clearing using CBDC in BRICS countries, which will allow for centralized netting of mutual positions of the countries in national currencies and gradual displacement of currencies of developed countries from mutual settlements.
Keywords: international trade, international financial organizations, international settlements, BRICS, clearing, central bank digital currencies, digital assets
JEL: G21, F24, F37, E58
Funding: The article is based on the results of research carried out at the expense of budgetary funds under the state assignment of the Financial University under the Government of the Russian Federation.
For citation: Navoy A.V. (2024). Prospects for Transformation of the System of International Settlements in the Russian Federation Based on Central Banks Digital Currencies. Financial Journal, 16 (2), 43–58 (In Russ.). https://doi.org/10.31107/2075-1990-2024-2-43-58
© Navoy A.V., 2024

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M.E. Kevorkova
Prospective Approaches to Assessing the Efficiency of the State Financial Control Bodies’ Activities, p. 59-71
Abstract
The article discusses the existing scientific approaches to evaluating the efficiency of the activities of state financial control bodies. The content of the efficiency concept is disclosed, scientific views on the formation of the system of performance measurement indicators are examined. The lack of uniformity of approaches to the development of criteria and indicators for assessing the efficiency of the state financial control bodies’ activities is also revealed. The purpose of the study is to formulate unified, universal approaches to such an assessment. The author proposes original ways of evaluation using complex indicators. In the course of the study the methods of systematization, comparative, logical and statistical analysis were used. The results can be used by the bodies of state financial control for the development of efficiency assessment methodology.
Keywords: state financial control, efficiency, efficiency assessment, criteria, indicators
JEL: E63, H83
For citation: Kevorkova M.E. (2024). Prospective Approaches to Assessing the Efficiency of the State Financial Control Bodies’ Activities. Financial Journal, 16 (2), 59–71 (In Russ.). https://doi.org/10.31107/2075-1990-2024-2-59-71
© Kevorkova M.E., 2024

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N.A. Khutorova
ESG Approaches in Securitization Transactions, p. 72-87
Abstract
The spread of the sustainable development concept has given rise to sustainable finance, as well as the infrastructure of the financial and consulting industry of valuations, verifications and various databases in the field of ESG. This research is devoted to theoretical and practical study of the accumulated experience of ESG securitization transactions in order to systematize ESG financing instruments and directions of development of this sphere in modern conditions. The study showes that ESG securitization practices are being integrated into capital management processes in line with sustainable development goals, with the most developed centers in the USA, Europe and China. The study systematizes the main types of ESG securitized assets, gives their characteristics and identifies current trends. In Russia, despite its isolation from the world financial markets, the practice of ESG securitization is developing, covering new directions. The study notes the potential for the development of green mortgages, which will contribute to the activation of securitization transactions in the segment of residential and commercial real estate. High potential for development of the social segment of ESG securitization is also noted due to the growing demand for financing social projects in the regions. Expansion of the practice of social mortgage securitization will contribute to the redistribution of risks between the public and private sectors, while active involvement of Russian banks in a variety of ESG lending programs (car loans, lending to small and medium-sized businesses with a green and social focus, e.g. for the construction of social infrastructure, etc.) will expand the market. There is a suggestion that the development of digital ESG securitization platforms will help expand the reach of retail investors, while cooling the junk bond market. The article notes that the expansion of multi-tranche ESG securitization will allow long-term assets of pension funds and various ESG funds to be leveraged into mortgage-backed securities. Overall, ESG securitization improves the structure of transactions, expands the range of derivatives used, improves the quality of credit and interest rate risk management, and contributes to the achievement of sustainable development goals.
Keywords: sustainable development, ESG securitization, mortgage-backed securities
JEL: G32, P11, G15, Q57
For citation: Khutorova N.A. (2024). ESG Approaches in Securitization Transactions. Financial Journal, 16 (2), 72–87 (In Russ.).
https://doi.org/10.31107/2075-1990-2024-2-72-87
© Khutorova N.A., 2024

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A.O. Volodina, M.B. Trachenko
Financial Indicators of Value Dynamics of ESG-oriented Companies in China, p. 88-103
Abstract
The priority of investing in sustainable development and ESG-oriented companies has become a global trend. Along with the developed markets of the USA and Europe, numerous ESG indices have been formed in countries of other continents. This segment of the stock market shows high growth rates in China. The purpose of the article is to identify the financial indicators that are most closely related to the value dynamics of ESG-oriented companies in China. The empirical base for the comparative analysis of companies adhering to ESG principles and not implementing them in practice was 48 companies included in the SSE 180 ESG Leaders Index of the Shanghai Stock Exchange, and 44 companies from the Shanghai Composite index that are not included in the ESG indices. The analysis of the value dynamics of the two groups of companies showed the higher resilience of ESG-oriented enterprises to the crisis phenomena in the economy. However, the comparative analysis of multipliers did not allow us to conclude that one of the groups of companies is more attractive for investment. Special attention was paid to the study of financial indicators of fundamental analysis. The main conclusion is important for investors: the growth in the value of ESG-neutral companies is not consistent with the positive dynamics of financial indicators, and such investments are riskier than investments in ESG-oriented companies. Further research on investment attractiveness of financial ESG-instruments and individual companies, adhering to the principles of sustainable development and represented in the stock market of China, will be associated with more detailed factor analysis, which is important for Russian investors to make informed decisions when developing a new capital market.
Keywords: ESG, profitability, capital structure, company value, sustainable development, cash flow
JEL: G32
For citation: Volodina A.O., Trachenko M.B. (2024). Financial Indicators of Value Dynamics of ESGoriented Companies in China. Financial Journal, 16 (2), 88–103 (In Russ.). https://doi.org/10.31107/2075-1990-2024-2-88-103
© Volodina A.O., Trachenko M.B., 2024

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M.V. Milchakov
Fiscal and Financial Situation of the Constituent Entities of the Russian Federation:
Medium-term Trends in the Regional Context, p. 104-125
Abstract
The article is devoted to the changes in the fiscal and financial situation of Russian regions in 2020–2022. During this period, the regions faced a new challenge in the form of a pandemic. The author gives a quantitative assessment of the changes that have occurred, analyzes the features of support measures and the regional policy being implemented. The article examines changes in the parameters of regional budget revenues, budget deficits and debt burden. In addition, the author identifies a group of regions with maximum changes in per capita budget revenues and the factors that caused these changes. The author pays special attention to measures in the field of debt policy, methodology for equalization grant allocation, as well as demographic characteristics affecting regional expenditures. The article presents proposals for possible further improvement of the system of interbudgetary fiscal relations, including approaches to the provision of unconditional gap-filling financial support.
Keywords: intergovernmental fiscal relations, public debt, intergovernmental transfers, regional budgets, budget fiscal capacity index, pandemic
JEL: H61, H63, H72, H77, R11, R58
For citation: Milchakov M.V. (2024). Fiscal and Financial Situation of the Constituent Entities of the Russian Federation: Medium-term Trends in the Regional Context. Financial Journal, 16 (2), 104–125 (In Russ.). https://doi.org/10.31107/2075-1990-2024-2-104-125
© Milchakov M.V., 2024

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Yu.V. Belousov
Bitcoin and Forms of Money: Theoretical Issues, p. 126-141
Abstract
The paper considers the question that has gained relevance in the last decade: whether the cryptocurrency bitcoin is money. The economic literature provides different opinions on this issue. The analysis shows that disagreements arise because of the different understanding of the category of ‘money’ rather than because of the nature of bitcoin. The author analyzes popular interpretations of money in terms of their applicability to the definition of the role and place of cryptocurrencies in the financial system. The purpose of this study is to define money as a financial instrument that linksthe creation of gross social product with its distribution. The author believes that money emerged and exists as a tool that ensures a connection between the contribution of each economic entity to the total product of society and the right to receive an equivalent amount of goods from this gross product. At the same time, the author defines money as an ‘ideal right’ to receive a share of the gross social product. In this regard, the analysis of bitcoin shows that this cryptocurrency allows obtaining goods from the gross social product in many countries, while bitcoin owners do not contribute to the gross social product. Based on this, bitcoin cannot be considered money; it is a money substitute, or surrogate money. At the same time, bitcoin was created as money and performs the functions of money, but to a limited extent. Bitcoin can only perform the functions of money as a supplement to an existing official currency. It is not capable of functioning as the only currency in a society. The interpretation proposed in this paper can be used for the purposes of developing the Russian law on cryptocurrencies is currently being worked on by the Government and the Central Bank of Russia.
Keywords: money, theories of money, paper money, electronic money, cryptocurrency, bitcoin
JEL: E42, E49
For citation: Belousov Yu.V. (2024). Bitcoin and Forms of Money: Theoretical Issues. Financial Journal, 16 (2), 126–141 (In Russ.).
https://doi.org/10.31107/2075-1990-2024-2-126-141
© Belousov Yu.V., 2024

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CONTENTS

E.V. Martyanova, A.V. Polbin
Scenario Assessment of Macroeconomic Effects of Progressive Taxation in Russia, p. 8-30
Abstract
The purpose of the study is to assess the impact of alternative options of progressive taxation on Russia’s macroeconomic performance. For quantitative assessments, a neoclassical general equilibrium model with heterogeneous households subject to idiosyncratic income shocks was used. Three groups of scenarios were analyzed, setting a threshold progressive tax scale with thresholds of 30, 50, and 70 thousand rubles, under which state income tax revenues (1) grow, (2) remain unchanged, and (3) decline. The maximum personal income tax rate in the analyzed scenarios was 25%. Steady states and transitions were calculated for the scenarios. According to the quantitative estimates, the first reform leads to a loss of 0.3% to 1.3% of GDP in the long run, depending on the assumed rates and threshold. Despite the increase in lump-sum transfers, aggregate household consumption decreases by 0.5–1.7% in all cases. The second reform leads to a loss of 0.2% to 0.6% of GDP in the long run. The third reform leads to insignificant fluctuations of GDP within 0.1%: GDP increases at the threshold of 30 thousand rubles and decreases at other thresholds. The scale of inequality reduction, as measured by the Gini coefficient, increases with an increase in the top tax rate. However, as the threshold increases, the depth of the Gini index reduction first increases and then decreases. In the short run, there is upward pressure on wages and prices. This is because a decrease in labor supply with unchanged capital in the short run leads to an increase in wage rates (a shift along the labor demand curve), and an increase in wage rates means an increase in marginal costs for firms, leading to higher prices.
Keywords: general equilibrium, heterogeneous agents, fiscal policy, progressive taxation
JEL: E13, E21, E62, H24, H31
For citation: Martyanova E.V., Polbin A.V. (2024). Scenario Assessment of Macroeconomic Effects of Progressive Taxation in Russia. Financial Journal, 16 (1), 8–30 (In Russ.). https://doi.org/10.31107/2075-1990-2024-1-8-30.
© Martyanova E.V., Polbin A.V., 2024

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S.V. Arzhenovskiy
Forecasting GDP Dynamics Based on the Bank of Russia’s Enterprise Monitoring Data, p. 31-44
Abstract
The article is devoted to modeling and forecasting of the gross domestic product of Russia based on the data of enterprise survey conducted by the Bank of Russia. The purpose was to study the possibility of improving the efficiency and accuracy of GDP forecasting based on the use of these data. The authors used business climate indicators as well as balances of responses to questions about dynamics of output, demand, and prices. The methodology included regression analysis, as well as a combination of factor and regression analysis, both on aggregate data on all economic sectors and on data on individual economic branches. The forecasting results for two control samples containing actual observations for the eight quarters of 2017–2018 and the five quarters of 2022–2023 suggested that the use of monitoring data improved forecasting accuracy compared to the ARIMA benchmark model. The lowest estimation errors were obtained for approaches combining factor and regression analysis on aggregate data for all economic sectors or the economy as a whole.
Keywords: enterprise monitoring, business climate indicator, factor analysis, regression analysis
JEL: C22, C53, C81, E27
Note: the views expressed herein are solely those of the author. The content and results of this research should not be considered or referred to in any publications as the Bank of Russia’s official position, official policy, or decisions. Any errors in this document are the responsibility of the author.
For citation: Arzhenovskiy S.V. (2024). Forecasting GDP Dynamics Based on the Bank of Russia’s Enterprise Monitoring Data. Financial Journal, 16 (1), 31–44 (In Russ.). https://doi.org/10.31107/2075-1990-2024-1-31-44.
© Arzhenovskiy S.V., 2024

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E.E. Grishina
Financial Situation of Large Families and Factors of Their Income Growth, p. 45-60
Abstract
The article analyzes changes in the financial situation of large families in the period from 2018 to 2022 using the data of the Rosstat’s Comprehensive Observation of Living Conditions of the Population for 2018 and 2022. The prevalence of various deprivations among large households and households with children in general is estimated. Changes in household income relative to the poverty line and deprivation level between 2018 and 2022 are calculated. It is shown that despite the improvement in financial status between 2018 and 2022, large families continue to experience significant risks of poverty and deprivation. To assess the factors affecting the incomes of large households, Rosstat data of the Sample Survey of Population Income and Participation in Social Programs (VNDN-2022) were used. Regression analysis shows that employment of adult members of a large family, improvement of their education and qualification level will contribute to the growth of average per capita family income relative to the poverty line. The article outlines proposals for increasing the labor potential of large families, improving their financial situation and reducing poverty.
Keywords: large families, households with three or more children, financial situation, income, support measures
JEL: I31, I38, H75
Funding: the research was funded by a grant from the Russian Science Foundation No. 23-18-00537, https://rscf.ru/en/project/23-18-00537/, at the Institute of Economics of the Russian Academy of Sciences.
For citation: Grishina E.E. (2024). Financial Situation of Large Families and Factors of Their Income Growth. Financial Journal, 16 (1), 45–60 (In Russ.). https://doi.org/10.31107/2075-1990-2024-1-45-60.
© Grishina E.E., 2024

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S.S. Sudakov, A.A. Zinchenko
Export Potential Assessment Methodology: The Case of the Republic of Uzbekistan, p. 61-77
Abstract
This paper proposes a universal methodology for assessing export potential of different countries. It takes into account both external and internal supply and demand factors. The methodology is based on the assessment of various trade indices, such as the Balassa index, trade complementarity index and export specialization index. In addition to analyzing the export capabilities of countries, the methodology also focuses on analyzing the countries’ presence in foreign markets (through the geographical structure of imports). The presented methodology is complemented by the estimation of output multipliers (based on Input — Output tables). The calculation of output multipliers takes into account additional induced effects resulting from the growth of household and government incomes, which are partly spent on additional consumption. Complementary analysis of trade indices and output multipliers (including induced effects) allows to identify sectors and products that will most stimulate economic growth by increasing exports. The proposed methodology has been tested on data for the Republic of Uzbekistan in terms of intensive margin of trade. The results of the analysis show that the methodology can be used as a basis for preparing export development programs for individual countries. The methodology could be improved by a deeper analysis of foreign trade barriers, domestic supply factors and extensive trade margins. However, up-to-date information on these improvement factors is not always publicly available.
Keywords: trade indices, input-output multipliers, Input-Output tables, export potential
JEL: C67, D57, F13, F63
For citation: Sudakov S.S., Zinchenko A.A. (2024). Export Potential Assessment Methodology: The Case of the Republic of Uzbekistan. Financial Journal, 16 (1), 61–77 (In Russ.). https://doi.org/10.31107/2075-1990-2024-1-61-77.
© Sudakov S.S., Zinchenko A.A., 2024

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M.V. Sigova, I.K. Klyuchnikov, O.I. Klyuchnikov
Sustainability and Security of Green Finance from the Multi-agent Games Perspective, p. 78-95
Abstract
Green finance increases the innovation potential of green transformation, helps to address climate change, the environmental crisis and energy security. It is important for green finance to achieve sustainable and balanced development, which will increase the security of both finance itself and many processes in the real economy that depend on it. The purpose of this study was to develop approaches to the ontological design of green finance and multi-agent modeling of the behavior of green finance actors, considering their sustainable and safe interaction. To achieve this goal it was necessary to clarify the conceptual apparatus of green finance and related areas; to characterize the "work" of the multi-agent model in the analysis of the behavior of the main green finance actors and to trace the prospects for their impact on the stability and security of the financial market; and finally, based on ontology construction and agent-based approach to nonlinear interactions in the green financial process, to determine the mechanism of building chains of the main market participants. The methodological basis of the study consists of general scientific research methods (analysis, synthesis, induction, deduction, logic), as well as evolutionary dynamics and agent-based approach to the analysis of financial markets. A comparative analysis of the works of various authors and the interpretation of theoretical provisions in related areas of knowledge about finance, as well as the analysis of their sustainable and safe development were carried out. As a result of the study, the authors identified the main approaches to the design of financial ontology and multi-agent modeling of financial interactions in the direction of determining their sustainable and safe development. The proposed model establishes that the criterion of the effectiveness of the applied strategy is the satisfaction with the state of financial impact on the economy, environment, and social sphere. Maintaining this state, along with saving the amount of resources used, is done through optimization. The chosen approach corresponds to the concept of sustainable development and safe functioning of the systems under consideration.
Keywords: green finance, ontology, multi-agent modeling, sustainability, security
JEL: F01, B41, F30, F37, Q50, Q56
For citation: Sigova M.V., Klyuchnikov I.K., Klyuchnikov O.I. (2024). Sustainability and Security of Green Finance from the Multi-agent Games Perspective. Financial Journal, 16 (1), 78–95 (In Russ.). https://doi.org/10.31107/2075-1990-2024-1-78-95.
© Sigova M.V., Klyuchnikov I.K., Klyuchnikov O.I., 2024

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O.V. Khmyz
Sustainable Investments and Divestments by Global Institutional Investors, p. 96-108
Abstract
The article analyzes the investment activity of sustainable institutional investors after the global financial and economic crisis of 2008. The relevance of the study is conditioned, firstly, by the leading positions of institutional investors in the global financial market and in the system of international finance; secondly, by the special role of mutual funds and ETFs in the global market of sustainable finance; thirdly, by the noticeable dynamics of investments by these market participants in recent years, which increasingly turns into divestments. The purpose of the study is to identify current trends in sustainable investment by global institutional investors and formulate their further actions in the short term. To do this, it is necessary to solve the following tasks: to clarify, taking into account the latest statistical data, the impact of the COVID-19 pandemic and other force majeure factors on the size and dynamics of the flow of funds of sustainable institutional investors in the leading countries of the world, and to assess the impact on investment prospects of current political and financial factors. In the course of the study, a significant amount of scientific research was analyzed, which served as a basis for identifying the institutional investors’ approaches to sustainable finance. It is concluded that the prospects for global sustainable investing are favorable due to the continued stimulation of environmental change at the supranational level, both in developed and leading developing countries. The financial success of sustainable investment will also contribute to this.
Keywords: institutional investors, sustainable finance, ESG, green bonds, sustainable bonds, investment funds
JEL: G23, G20, F21, N20
For citation: Khmyz O.V. (2024). Sustainable Investments and Divestments by Global Institutional Investors. Financial Journal, 16 (1), 96–108 (In Russ.). https://doi.org/10.31107/2075-1990-2024-1-96-108.
© Khmyz O.V., 2024

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I.P. Dovbiy, N.S. Dovbiy
Sustainable Finance in Addressing the Challenges of Energy Transition and Climate Change Mitigation, p. 109-124
Abstract
This study reveals the special role of finance related to the climate and energy transition, the effectiveness of which is evaluated by ESG criteria. The authors define the concept of "sustainable finance" as economic relations within the framework of purposeful formation of capital flows in accordance with ESG principles from public, corporate and private sources and their channeling to achieve the goals of sustainable development, energy transition and adaptation to climate change. It is established that the sustainable development policy implies a comprehensive achievement of goals and solving problems related to the energy transition and overcoming the consequences of climate change, without considering one without the other. The article reveals a connection between the strengthening of climate-related risk management and acceleration of energy consumption, which led to an increase in investor demand for reliable, comprehensive and comparable information. It also reveals significant contradictions between the global players of the global economy regarding the timing and forms of ensuring technological sovereignty and the special role of sustainable finance in achieving it, as well as the importance for Russia to follow global trends in the climate and energy transition. As a special segment of sustainable finance, the field of venture climate finance is developing quite rapidly, but this process is hampered by the lack of adequate information among venture investors about ESG in hightech startup companies and the specter of "black swans" in the financial markets.
Keywords: energy transition, sustainable finance, climate agenda, decarbonization, technological sovereignty, ESG, venture financing
JEL: Q01, Q42, Q56
For citation: Dovbiy I.P., Dovbiy N.S. (2024). Sustainable Finance in Addressing the Challenges of Energy Transition and Climate Change Mitigation. Financial Journal, 16 (1), 109–124 (In Russ.). https://doi.org/10.31107/2075-1990-2024-1-109-124.
© Dovbiy I.P., Dovbiy N.S., 2024

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L.N. Ivanova, O.V. Umgaeva
Digital Marking of Jewelry: Leveling the Risks of Implementation, p. 125-135
Abstract
The possibility of leveling the risks of introducing digital labeling of jewelry is of significant interest at the current stage of functioning of the state integrated information system in the field of turnover of precious metals, gemstones and articles made of them (GIIS DMDK). In accordance with the current legislation, digital transformation is actually already registered at all enterprises in this field, starting from mining and refining and ending with the sale of jewelry. The accumulated experience and the scheme of implementing digital accounting should be considered when improving the system of turnover of precious stones and metals within the EAEU countries that have signed a cooperation agreement, therefore it is logical to analyze the problems in this area. From the authors’ point of view, the planned tasks of the next stages of implementation of the GIIS DMDK system require clarification, in particular, labeling and building new business models on its basis. The article offers an analysis and justification of various options for solving these problems of expediency of practical application, reducing the risks of rejection of labeling by participants in the precious metals and gemstones turnover and achieving the expected effect.
Keywords: digital marking, GIIS DMDK, digital code, jewelry, branding, testing, turnover of precious stones and metals
JEL: D51, G28, G32, O29, L15
Funding: the article was prepared as part of the research work under the state assignment of the Financial Research Institute.
For citation: Ivanova L.N., Umgaeva O.V. (2024). Digital Marking of Jewelry: Leveling the Risks of Implementation. Financial Journal, 16 (1), 125–135 (In Russ.). https://doi.org/10.31107/2075-1990-2024-1-125-135.
© Ivanova L.N., Umgaeva O.V., 2024

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CONTENTS

A.L. Osmolovskaya-Suslina, S.R. Borisova
Non-resource Revenues to the Consolidated Budget: Analysis by Types of Economic Activity, p. 8-26
Abstract
This paper presents an analysis of non-resource revenues of the consolidated budget of Russia by types of economic activity. The purpose of this study was to identify which sectors are the most sensitive to shocks form the fiscal point of view, and to answer the questions: how long it takes for the revenues of different sectors recover from “local lows” and how the sectoral structure of budget revenues affects the volatility of payments. In accordance with the set objectives, we examined the dynamics of consolidated budget revenues in real terms for the period 2008–2022 as a whole and by sector. In addition, a sectoral analysis was provided for CIT. The calculations were based on the data of the Federal Tax Service prepared by excluding payments on natural rent. The analysis showed that revenue fluctuations are largely determined by the dynamics of payments from the extractive sector (especially oil production), and an increase in the sector’s share is likely to increase the overall volatility of revenues. In fiscal terms, the processing sector is the most sustainable for total revenues but provides a source of volatility in CIT dynamics. Revenues from financial activities show the fastest recovery from the crises. Trade and finance have a stabilizing effect on both total revenues and CIT dynamics. The results of the study can be used at the stage of budget planning.
Keywords: taxes, budget revenues, CIT, budget risks, budget revenues by sector
JEL: E64, H24, H25, H72
For citation: Osmolovskaya-Suslina A.L., Borisova S.R. (2023). Non-resource Revenues to the Consolidated Budget: Analysis by Types of Economic Activity. Financial Journal, 15 (6), 8–26 (In Russ.). https://doi.org/10.31107/2075-1990-2023-6-8-26
© Osmolovskaya-Suslina A.L., Borisova S.R., 2023

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P.E. Zhukov
Capital Flight from Russia and Possible Sources of Financing Budget Expenditures, p. 27-42
Abstract
The article considers the problems of capital flight from Russia in current conditions and the related problems of financing budget expenditures. The difference between capital export and capital flight, which occurs in conditions of extremely high risks or unfavorable investment climate, is substantiated. The balance of payments of Russia in 2022 is analyzed, and it is substantiated that in the current situation capital flows are largely capital flight from political and economic risks. The author estimates the size of capital flight from Russia in 2022 (approximately $232 billion), and concludes that the mandatory sale of foreign exchange earnings in modern conditions can be replaced by more flexible control measures. Further, the paper analyzes a set of complex problems of financing the federal budget expenditures of Russia in the current conditions. Three possible mechanisms of financing the budget deficit (or additional expenditures) are considered: at the expense of new public debt, at the expense of the National Welfare Fund and sale of state assets, as well as at the expense of new emergency taxes. It is concluded that attraction of new sources for government borrowing is practically impossible without a significant increase in interest expenditures. At the end of the paper, for the recovery of the Russian economy, there is a proposal to introduce a new flexible tax on the export of capital, which can create incentives for investment in the Russian economy and solve the problems of financing federal budget expenditures in modern conditions.
Keywords: foreign direct investment, capital flight, capital export, budget revenues, budget deficit, emergency tax
JEL: F21, G11, H50, H61, H68
For citation: Zhukov P.E. (2023). Capital Flight from Russia and Possible Sources of Financing Budget Expenditures. Financial Journal, 15 (6), 27–42 (In Russ.). https://doi.org/10.31107/2075-1990-2023-6-27-42
© Zhukov P.E., 2023

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A. Patalaha, M.A. Shchepeleva
Bank Crisis Management Policies and the New Instability, p. 43-60
Abstract
This research focuses on the determinants of banking crises. Despite all efforts to create systems of leading indicators, banking crises still occur, leading to negative consequences not only in the financial but also in the real sector of the economy. Our objective is to figure out how the characteristics of past banking crises, in particular the amount of liquidity support provided by the government, are related to the probability of subsequent banking crises. To accomplish this task, we use a classification tree methodology which we apply to a sample of 56 countries over the period 2000–2021. In addition to the characteristics of past crisis episodes, we add to the list of potential predictors of banking crises indicators related to the depth, structure and efficiency of the banking sector; institutional and macroeconomic indicators; and the index of macroprudential policy. To test the robustness of our results, we perform variable selection through Bayesian model averaging. Our results suggest that liquidity support during the past banking crisis is important for future crises. We demonstrate that excessive government support aimed at stabilizing the system during a crisis may affect future banking sector stability mainly by increasing the level of moral hazard in the financial system.
Keywords: classification tree, banking crisis, Bayesian model averaging, moral hazard
JEL: G01, G17, G28
Funding: The research was funded by the Russian Science Foundation (project No. 23-18-00756).
For citation: Patalaha A., Shchepeleva M.A. (2023). Bank Crisis Management Policies and the New Instability. Financial Journal, 15 (6), 43–60 (In Russ.). https://doi.org/10.31107/2075-1990-2023-6-43-60
© Patalaha A., Shchepeleva M.A., 2023

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A.A. Tsyganov, I.A. Bystronovskaya
Possible Organizational and Economic Schemes of Index Insurance in Russian Agriculture, p. 61-75
Abstract
Agricultural risks, given climate change and the crisis of globalization, are increasingly considered as national security risks. In global practice, insurance has proven to be one of the most successful and sustainable ways to manage agricultural risks. In the Russian Federation, agricultural insurance is also state-supported, which emphasizes the importance of containment of agricultural sector hazards. However, the level of insurance penetration in Russian agriculture is insufficient. Indices in agricultural insurance, i.e. insurance in which insurance payments are made not on the basis of the assessment of damage to the insurance object, but on the basis of the behavior of a special index, are used in many countries around the world. The main idea of index insurance is that there is no need to establish the fact and calculate the amount of loss, which makes it especially demanded for those activities in the real sector of the economy where speed, transparency and simplicity of insurance payments are important, as well as the need to attract additional well-trained employees to carry out the insurance process and claims settlement. Reduced workload due to the absence of the need to calculate the amount of loss reduces the time required to process claims. The procedures of claim settlement in index insurance can be called the most simplified for the client and the least costly for the insurance company, but the advantages and positive features of index insurance do not end there. The authors have investigated and systematized the possibilities of index insurance, for which they also considered the successful experience of a country with similar socio-cultural codes, Mexico, in the field of agricultural index insurance. The article also suggests ways to overcome the difficulties of index insurance implementation in the Russian insurance realities. The positive features of the index insurance identified by the authors can make it a promising alternative to classical (traditional) insurance, including for the further development of agricultural insurance with state support.
Keywords: insurance theory, index insurance, agricultural insurance, insurance legislation
JEL: G22
Funding: the article is based on the results of research carried out at the expense of budgetary funds under the state assignment of the Financial University under the Government of the Russian Federation.
For citation: Tsyganov A.A., Bystronovskaya I.A. (2023). Possible Organizational and Economic Schemes of Index Insurance in Russian Agriculture. Financial Journal, 15 (6), 61–75 (In Russ.). https://doi.org/10.31107/2075-1990-2023-6-61-75
© Tsyganov A.A., Bystronovskaya I.A., 2023

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P.K. Koval, A.V. Polbin
Estimation of Heterogenous Consumption and Income Parameters, p. 76-92
Abstract
In modern economic literature, much attention is paid to estimates of the structural parameters of consumer choice and the process of income generation. Such estimations play an important role in determining the optimal insurance system, optimal monetary and fiscal policies, as well as in assessing the welfare of the population. In this paper, we estimate a set of parameters that determine the dynamics of household income and consumption in Russia. These parameters are heterogeneous at the household level; the paper uses the estimation method proposed in [Alan et al., 2018]. To estimate the parameters we use RLMS panel data for the period 2005–2019. The results indicate the presence of significant co-dependent heterogeneity of the parameters determining the dynamics of income and consumption. These results reflect the specifics of the consumer behavior of households in Russia. In particular, significant heterogeneity in the sensitivity of consumption to income shocks indicates a large variability of consumption insurance mechanisms available to households. In addition, there is significant heterogeneity in the dispersion of income shocks, which is critical in the context of the discussion of heterogeneous insurance instruments against income shocks (e.g., access to financial assets), as households with higher variation in unanticipated income change value these instruments more. This study is the first to estimate the full distribution of heterogeneous parameters of consumption and income dynamics using Russian data. Estimates of heterogeneous parameters are important for constructing theoretical models of consumer choice and analyzing optimal social policy. In particular, high values of the level of parameter heterogeneity indicate that standard models with a representative agent are not suitable for optimal policy choices.
Keywords: heterogenous parameters, consumption, income, households, RLMS, structural model
JEL: D10, D12, E21
For citation: Koval P.K., Polbin A.V. (2023). Estimation of Heterogenous Consumption and Income Parameters. Financial Journal, 15 (6), 76–92 (In Russ.). https://doi.org/10.31107/2075-1990-2023-6-76-92
© Koval P.K., Polbin A.V., 2023

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E.I. Brichka, Yu.S. Evlakhova
Three Levels of Digital Inequality of the Population in the Financial Sphere, p. 93-109
Abstract
The article examines the problems of digital inequality in the financial sphere at three levels. The purpose of the study is to characterize and assess (quantitatively or qualitatively) the digital inequality of the Russian population in the financial sphere (at each of the three levels). The achievement of the research goal is ensured by using the index method, methods of graphical analysis, as well as comparative analysis of empirical data. The result of the work is the developed index of the first-level digital inequality in the financial sphere, which allows to give an aggregate assessment. The calculated values of the index confirm the conclusions about the steady decline in the Russian economy of the first-level digital inequality in the financial sphere. As for the second-level digital inequality, the following results were obtained: In 2021, a significant part of the Russian population possessed such basic skills as sending files via e-mail and messengers, working with a text editor and copying or moving files; the share of the population possessing advanced skills increased, while the availability of basic and standard digital skills remained virtually unchanged; the level of digital literacy does not affect the population’s activity in ordering financial services online. A list of digital financial skills has been formulated, which can be assessed in further analysis of the second-level digital inequality. The theoretical description of the third-level digital inequality led us to conclude that to better understand this level, an expanded analysis is required, as well as progress in overcoming the digital gaps of the first and second levels.
Keywords: digital inequality, digital technologies, digital skills, digital competencies, digital inequality index, financial market
JEL: G20, O33
Funding: the article is based on the results of the research performed under the Russian Science Foundation grant № 23-28-00590, https://rscf.ru/project/23-28-00590/
For citation: Brichka E.I., Evlakhova Yu.S. (2023). Three Levels of Digital Inequality of the Population in the Financial Sphere. Financial Journal, 15 (6), 93–109 (In Russ.). https://doi.org/10.31107/2075-1990-2023-6-93-109
© Brichka E.I., Evlakhova Yu.S., 2023

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L.N. Ivanova, E.N. Badmaeva
Cross-border Approach to Economic Cooperation between Russia and Kazakhstan in the Sphere
of Turnover of Precious Metals and Stones, p. 110-122
Abstract
In the conditions of expanding interaction between friendly countries, the cross-border approach to economic cooperation in strategically important areas is becoming increasingly important. The methodological basis of this study was the dialectical method of cognition, which allows analyzing and synthesizing economic phenomena, dissecting them into separate elements. The methods of logical, economic and situational analysis were also used. The authors give a bibliographic review of economic cooperation between Russia and the Republic of Kazakhstan using a cross-border approach to the analysis of the precious metals and stones market; show the role of the Republic of Kazakhstan at historical stages in the formation of integration processes in the Eurasian space; characterize the structure of the market of precious metals and stones and products made of them. The market of precious metals, gemstones and products made of them is a promising direction of Kazakhstan's economic development. The Republic of Kazakhstan is successfully improving the state regulation of the precious metals and gemstones industry, taking into account global trends and best practices in this area. Cross-border cooperation between Kazakhstan and Russia will contribute to their further economic development.
Keywords: Russia, Kazakhstan, cross-border approach, precious metals, gemstones
JEL: D51, G28, G32, O29, L15
Funding: the article was prepared as part of the research work under the state assignment of the Financial Research Institute.
For citation: Ivanova L.N., Вadmaeva E.N. (2023). Cross-border Approach to Economic Cooperation between Russia and Kazakhstan in the Sphere of Turnover of Precious Metals and Stones. Financial Journal, 15 (6), 110–122 (In Russ.). https://doi.org/10.31107/2075-1990-2023-6-110-122
© Ivanova L.N., Вadmaeva E.N., 2023

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V.V. Olkhovik, R.S. Afanasev, E. Juchnevicius, T.N. Malofeeva
Fiscal Mechanism for Stimulating Domestic Production in Some BRICS and European Countries, p. 123-135
Abstract
The issue of stimulating domestic production is multifaceted and has a long history of study. At present, it is particularly relevant due to the introduction of restrictive measures, including the termination of supplies of a number of foreign goods to the Russian Federation. As one of the possible measures to increase the production of goods by Russian companies and entrepreneurs, the authors consider a new incentive mechanism of redistribution of value added tax (VAT) received by the federal budget, which implies the direction of the amounts of social grants taking into account the economic activity of the region associated with the production of value added on its territory. The purpose of the article is to justify a new methodology that includes a financial mechanism for redistributing the amounts of VAT in the form of grants to producers, aimed at creating effective budgetary incentives for regions to organize their own production of goods. For this purpose, the experience of VAT distribution in two BRICS countries — Brazil and China — is considered. In addition, the article summarizes effective measures of Germany, France, Greece, Austria and Norway to optimize calculation and payment of VAT, which resulted in economic growth. Discussion. One notable approach proposed by the authors to create a new incentive mechanism for redistribution of VAT revenues to the federal budget. This mechanism involves the allocation of social grants depending on the economic activity of the regions, particularly related to the production of valueadded goods on their territory. This approach represents a departure from traditional fiscal policies aimed at aligning incentives with local production. Results. This research represents a significant contribution to the ongoing debate on stimulating domestic production. By advocating a new mechanism of VAT redistribution and drawing on international experiences, the study seeks to address the challenges posed by restrictive measures and promote economic growth in the Russian Federation.
Keywords: commodity production, stimulating, value added tax, social grants, economic activity, redistribution, budgetary incentives, BRICS countries, VAT distribution, economic growth
JEL: H30, H87
For citation: Olkhovik V.V., Afanasev R.S., Juchnevicius E., Malofeeva T.N. (2023). Fiscal Mechanism for Stimulating Domestic Production in Some BRICS and European Countries. Financial Journal, 15 (6), 123–135. https://doi.org/10.31107/2075-1990-2023-6-123-135
© Olkhovik V.V., Afanasev R.S., Juchnevicius E., Malofeeva T.N., 2023

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