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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