MOSCOW: Russia may start buying the currencies of “friendly countries” and use those holdings to influence the exchange rate of the dollar and euro, as a means of countering sharp gains in the rouble, its finance minister said on Wednesday.

The rouble has soared to seven-year highs, boosted by capital controls that include curbs on Russians withdrawing foreign currency savings, thereby eating into Russia’s export income by denting the value of dollar and euro proceeds from sales abroad of commodities and other goods.

Authorities in Russia stopped buying foreign currency via market interventions in February, under a budget rule designed to shield it from external shocks, pressure on the rouble at a time when it was falling sharply.

Those declines were triggered by fears of tough Western sanctions in the run-up to what Moscow calls the “special military operation” in Ukraine that began on Feb. 24.

Russian rouble rises towards 50 vs dollar, first time since May 2015

Finance Minister Anton Siluanov said that, under a “modified” budget rule maintaining the central bank policy of operating a floating exchange rate, his ministry was ready to step in and accumulate currencies of “friendly countries” in its reserves.

“Through the currencies of friendly countries, through cross-rates with the dollar and the euro it will be possible to regulate the cost of the euro and the dollar to the rouble,” he told a conference organised by a Russian business lobby group.

“…We will discuss this with the economic bloc in the government. The central bank has agreed.”

Siluanov, who gave no other details of how the scheme might work, said Russia might also make unspecified cuts in state spending to try to help keep a lid on the rouble.

With Russia looking for ways to soften the sanctions blow on its financial sector, Siluanov said his ministry would also suggest allowing export-focused companies to receive proceeds from non-residents in cash.