Tatiana Bakalchuk, the richest woman in Russia, is implementing an important project to isolate the Russian economy from international sanctions by developing an alternative to the American global payment system SWIFT, after obtaining the approval of Russian President Vladimir Putin, according to Bloomberg.
Bakalchuk, known for its online marketplace Wildberries, is collaborating with the Russ Group, Russia’s largest third-party advertiser, to create a digital marketplace for small and medium-sized businesses.
This initiative aims to help these companies promote and export their products. In addition, the partnership plans to develop a payments platform that could serve as an alternative to SWIFT, the global messaging network for international payments.
This project has received personal approval from President Putin, and is supervised by Maxim Oreshkin, Deputy Head of the Kremlin Administration.
Big challenges
SWIFT connects about 11 financial institutions in more than 200 countries. In the wake of the Russia-Ukraine war, the United States and the European Union imposed sanctions on major Russian banks, cutting them off from SWIFT and forcing Russia to find other payment methods.
Bakalchuk’s company Wildberries has been a major player in Russia’s war economy, with sales rising 50% to 2.5 trillion rubles ($28 billion) last year, driven by sales of domestic products and the exit of Western retailers such as IKEA, H&M and Levi’s. .
Economic context
The Russian government’s budget expenditures, including military and social spending, increased by a third last year, leading to labor shortages and wage growth.
This has boosted consumer spending, with online shopping growing by 45% to reach 8.3 trillion rubles ($93 billion), according to Info Online research. Wildberries and Ozone have emerged, which control more than Half of the market, as leaders in this sector.
Bakalchuk’s vision
Bakalchuk’s personal wealth grew by about 40% to reach $8.1 billion, according to the Bloomberg Billionaires Index.
At the economic forum held recently in St. Petersburg, Russia, she expressed her confidence in the future of private business in Russia, stressing the need for state support.
Alexandra Prokopenko, of the Carnegie Russia and Eurasia Center, noted in an interview with Bloomberg, “Bakalchuk is well aware that crisis is a time of opportunity. She seeks to expand the scope of her work to protect it, to become too big to fail and more visible to the Kremlin.”
Future risks
Bakalchuk launched her company, Wildberries, in 2004, initially catering to budget-conscious consumers.
Despite its success, it faces risks, including potential sanctions from the United States and Europe.
Its involvement in creating a new payment system may increase these risks, especially since Ukraine’s Western allies have targeted other Russian financial services.
The “Wildberries Ross Group” project aims to expand into neighboring countries friendly to Russia and the countries of the Global South, which could lead to boosting Russia’s GDP by 1.5% annually, according to Bloomberg.
While the success of the new payment system is uncertain, Bakalchuk’s initiative represents an important step in Russia’s efforts to adapt to and mitigate the effects of international sanctions.
