Director General of JSC “Goznak” Arkady Trachuk — about the preparation for the issue of banknotes of new Russian denominations, foreign customers and how to change the strategy of the company
What are the notes of a new denomination of 200 and 2000 rubles, which was announced by the Central Bank this year, for which countries the Russian Goznak is made of money, how can we use the experience of working with personal data, and also why virtually abandoned the minting of coins of 50 cents — about this and much more in an exclusive interview told the General Director of Goznak Arkady Trachuk.
“We remain the supporters of paper based on cotton for banknotes”
— Arcady Vladimirovich, you are already preparing for the release of bills of 200 and 2000 rubles, which was announced in this year’s head of the Central Bank Elvira Nabiullina?
— Prepare in full, we are watching closely what is happening in the selection process (Central Bank announced the vote among Russians about the choice of objects that will be depicted on banknotes. — “News”). At the same time pick up protective elements, which, from our point of view should go in there. In constant contact with the Bank of Russia think about technological solutions. Almost on a weekly basis are consulting with them, meeting with the expectation that as soon as the clear choice of the city will immediately get to work on the design, because the time for such work is very small. It is for us an interesting challenge and an interesting decision. As a rule, work on the design and on the technology runs parallel, and then it turns out that we deal with technological training, not yet fully realizing the design.
— In this case don’t want to experiment with the material, since there is a discussion about the use of unconventional materials for commemorative banknotes of the world Cup 2018?
— No, in this case it will be paper.
— What new security features suppose to use?
— New security features in banknotes in denominations of 200 and 2,000 rubles will be exactly as, in our opinion (I think the Bank of Russia agree with that too), these notes should be the prototype to improve the entire cash of the series. Naturally, we are interested in that the protective complex was better, more modern, contained new elements. Now just work in that direction. Hopefully that should get quite interesting results.
— Not determined yet how much will be security features?
— They will be certainly not less than in the existing bills, but the question of “how” in a professional environment is never discussed. The question is what.
— And what?
— We will, of course, to proceed from the observance of the traditions. There will be quite complicated watermarks with those new opportunities that we now have with the use of filigree and multi-tone watermark. There are interesting solutions that had not previously been used in the field of security threads. There are new elements, which are made using various printing methods, a combination of printing methods. Be familiar protective elements that change color when tilting or rotating the banknote. Of course, a lot of attention to the means of machine processing and ATMs, and for special systems of sorting.
— Not going to happen this time, as was the case with five thousandth bills — she was so sheltered that it didn’t accept ATMs and terminals?
Under any new banknote requires the ATMs to be configured. Another thing is that some of them can be remotely configured — just a change of the software, and somewhere the need to change sensors-validators in the receptors of ATMs. So they did not take notes of “Bank of tricks”. There is a requirement of the Bank of Russia, how many and which characteristics must control the ATMs. If it is observed if the ATM is configured on the new banknote, there will be no problems.
Another thing — formed a time gap. Until the moment of the note issue, we do not disclose those security features needed to set up the ATMs, including its design. It turns out that organizations producing and service ATMs, get information on new bills at the same time with all the market. While they conduct the necessary improvements, yet these improvements will disperse along the banks, of course, in this period of time, the ATMs with the new notes difficult. It’s a problem. I think that a decision the Central Bank has, I may not be aware of.
— You said that the new notes will be the prototypes of the updated banknote series? And when the planned upgrade?
It will be done gradually. We got it once in seven years, as is customary in international practice. A modified five-thousandth banknote went into circulation in 2010.
— The update will begin with a five-thousand?
— I can’t say. First you need to produce 200 and 2000 rubles, and then the Bank of Russia will decide which banknotes to begin the upgrade process. Maybe we’ll cook one banknote of low value, one high. While there was no discussion, no decisions for this reason.
— A ten-ruble banknote you are currently typing?
— No. Only coins for several years.
— There was a time when I started to print the bill.
— It was a very short period of time associated with the logistics organization, providing the regions. It was a single story. As far as I know the information on currency circulation, the ten-ruble coin quite actively drawn: returns to banks are issued. Therefore, the reasons to go back to the notes, the Bank of Russia does not see and we are also its part.
— And what coins are almost never minted? You said earlier that 1, 5 and 10 cents. And 50?
— Indeed, at 10 and 50 cents now orders are extremely rare, but sometimes happen. The bulk of the coins, which is now made, are coins of 1, 2, 5 rubles. And 10 rubles, of course.
— And what denomination of coinage is paying off?
— If to speak about the ruble, they all pay off, if that word is applicable in this context.
— Planned changes in production of cash?
— Changes are permanent. As for new material, the base material substrate mainly not changed. We stay in this sense, supporters of the paper based on cotton for banknotes. Carefully observe the different experiments, the experience in those countries which have introduced plastic banknotes. There’s a Swiss banknotes, which are made of combinations of paper and plastic. While there is no evidence that the choice in favor of paper certainly worse than the choice in favor of plastic, not to mention more complex substrates.
— In Moscow, for example, this summer now are constant tropical rains. Isn’t the argument in favor waterproof money?
We recently experts have talked about the fact that even after a “hard” washing still remain the main protective elements, allowing them to identify. So you can safely wash their cash.
“We never hid the fact that we produce banknotes for Syria”
— You have made “Planet” (development that offers a new payment instrument combining features such as banknotes and coins.) for the Transdniestrian Bank. Someone else some coin-like products made?
— We are currently negotiating with several banks. Mass circulation — no, but there was a reason. For the Transnistrian Bank was the prototype — and, by and large, with equipment for mass production is not intended. If you like, was development of the technology. She was successful in the treatment of nummular products have shown themselves very adequately.
Now comes the next step: we are preparing for mass production, the ability to manufacture such products in sufficient volumes for relatively large customers. As soon as such production will start and it will happen in 2016, I think we will get someone from more or less reference customers. And with their help can be viewed on the further development of Planeta”.
Do not lose hope that in some form, maybe in a memorable product, “Planet” can be applied in the production of Russian coins or banknotes. Although I will reiterate that no agreement at the moment or clear plans in this respect the Bank of Russia no. So it is our hope and some preliminary conversations.
— Customers are the CIS countries?
We have a large range of customers. The needs of the Russian market decreased: the economic situation is difficult, the amount of money in circulation actually remains stable, increased, but only slightly. Over the past three years — 7-8 trillion rubles in circulation and holds. Since this figure is stable, and production is determined only by the natural wear and tear. So now you have normal opportunities for work in the foreign market are large enough. We use it, the number of customers and volumes grow. Naturally, we are interested in the fact that customers should be offered different products. Not only banknotes, but coins, coin-like products, the same “Planet”. Therefore, we expect that we will find among its traditional customers and those for whom this product will fit the conditions of their treatment.
— Who are your traditional foreign customers?
— Southeast Asia is our biggest customer, a number of countries from this region. On all types of products of major customers — Indonesia, Laos, Cambodia. Quite a lot of customers in the Arab countries — Lebanon, Syria, Yemen at different times, and Egypt (to a lesser extent, for individual products).
— Goznak prints banknotes for Syria?
Yes. Made several batches, and periodically they come to us with the order address. This happens not so often, but it is. We never hid the fact that we produce banknotes for Syria. Also among our customers, a number of African countries — Rwanda, Angola. A number of Latin American countries. A curious order, only just started doing it — it’s a coinage for Colombia.
The number of customers grows, they change. This is quite a serious factor in our activities — work for export, not only of banknotes and banknote paper. Now implemented a number of projects and passport solutions.
— What share of revenue comes from export?
This year, I think, will exceed 6 billion for exports. Get consistently above 15% of revenue.
— In the Belarusian denominations did not participate?
— No. These banknotes were printed in England in 2008-2009, just before the crisis, and happily lay there waiting in the wings. The crisis broke out, and to no denomination then there was no point. From 1 July these bills are in circulation. I think that sooner or later the question arises about the re-printing of banknotes. Will start a natural process of money circulation. Some of the values will be missed, some values will need to print out, a year and a half something will come out of treatment. The situation will change. We expect to return to our traditional market, and would like to offer the customer conditions that are interesting to him.
— While there are no specific talks?
Of subject can not be. As a rule, all Central banks well enough to understand how much money to print for the conduct of the denomination. Therefore, I assume that they made enough for a few months, maybe a year, to fill the channels of monetary circulation. Then we will see.
— The fact that they released not you can prevent it?
— You need to watch. We are still very superficially acquainted with new banknotes of Belarus. After all, they were printed in 2008. With high probability there is no serious patent or other restrictions that would preclude their reprint. But I repeat that details its position on this occasion we have not worked out. The opinion of the customer is crucial.
Goznak can theoretically become the operator of the biometric and other personal data of the Russians”
— Recently Goznak became a joint stock company. Can we talk about the first months of work as AO, as changing strategy?
— About it to speak while early. I can say that the period of reorganization of Federal state unitary enterprise into a joint stock company was important to us and difficult and this process continues. We are engaged in adjustment of the entire system of corporate governance, and it significantly changed. To create the tools work with the Board of Directors, is the formation of the Board of Directors, identifying the competencies, organization of work of committees of the Board of Directors. Not less important task — the need to improve efficiency of our activities. This work is close to completion but still in progress. In the near future to the Board of Directors will submit the updated development strategy of Goznak until 2030.
— What radical changes are assumed in the strategy?
Radical changes will not happen, but much more attention will be given to solutions at the intersection of our traditional business related to secure printing, and information technology. Because today almost none of our product is produced without any support of information processes. Those same alcohol brands are embedded in the system yegais. Today we as part of the launch of the EGAIS in retail supported by a certain part of the information system of the Federal alcohol market regulatory service. About the passport, and will not speak — their manufacture originally built at the intersection of printing and information technologies.
During release all the banknotes pass through the instance control. In fact, today it is technically possible to take into account all the banknotes by denominations and lead them database. Almost any product we can take and he has information side. We need the information side to maintain and develop. In this sense, important and data centers that we are developing communication channels and a range of services that we now provide to our clients within the framework of existing systems. We see potential for development in the direction of systems of identification, systems of information security, our customers want to obtain services that we offer.
— Identification what do you mean?
— It just so happened that today we are the holders of a large amount of personal data of citizens of the Russian Federation. It is not only a passport. Among our customers in the data centers and the social insurance Fund, Pension Fund and mandatory medical insurance Fund. We do not use these data, but from the point of view of physical platforms and operating infrastructure they have there.
— Identification and biometrics?
— Including.
— What can you do?
— In the context that you mean nothing. Even the same fingerprints, which man passes in the registration of biometric passports, are not stored in the database, but only on the chip of the passport.
— You could become an operator of a biometric database?
— You could have. From our point of view, it is the demand of many players in the market. All of this good information system, electronic payments. But the level of the security problems they engender, his class and complexity far exceeds the level of the security problems faced by banknotes within the cash circulation.
This means that if such a powerful impact, it will be quite a powerful opposition from the same information systems, encryption systems, identification systems and the like. In this respect, we see prospects for growth are quite obvious.
— Returning to the recent incorporation at some future opening of capital is implied or never ever and under any circumstances?
— Not discussed. In the framework of current processes of privatization is not exactly debated, but in the framework of a hypothetical question — who knows it.
— The Goznak recently there was another person — you dug in the Peter and Paul fortress in Saint-Petersburg Museum of money. Why, as they say, you need this non-core activity?
— Goznak and a half years, 200 years, and the Saint-Petersburg mint — nearly 300 years. During this time, in the archives of Goznak is traditionally preserved and the samples, and in some cases, especially in mints, holds tools with which these coins and medals were minted. The volume of such storage has already exceeded millions. Among these units is truly unique things that researchers and just interested people should see. At least know that they could see.
To do some kind of exhibition in the territory of Goznak mints or difficult from the point of view of the regime of visits. In the Museum we tried, on the one hand, to present the most interesting collections of Goznak, and on the other hand, to give it all in some logic, in a retrospective of the history of money circulation in Russia. Thus, we solve two tasks: provide access to rarities and solve educational task, revealing information about the history of money circulation and allowing all to meet her.
