Russia's economic fundamentals more fundamental?
DrMarty | September 20, 2008 at 12:56 pmby
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Russian Prime Minister Vladimir Putin stressed that Russia must build a strong and independent financial system, in his speech to the ongoing international 7th Investment Forum in Sochi today, RosBusinessConsulting reported. He said that the recent developments in global and Russian financial markets made such a necessity all the more obvious. Moscow is pinning its hopes, he said, on the prospects of an international financial center in Russia. This will mean developing Russia's banking system and markets. Yesterday, Putin had told a meeting of the biggest foreign investors in Russia, that Russia is not closing its markets. "Our policy remains unchanged. There will be no closure of the market, and we are not going to make any politically-motivated decisions in the economy," he said. "I perfectly understand the importance of stability and predictability of the economic policy. Therefore, I would like to stress that despite the latest developments, which had an acute political character, the Russian economic model will remain unchanged." He said that restrictions on foreign investments into strategic industries, is a matter of regulation. "I want to point out that the talk is not about closing the industries for foreign investments, but about getting permissions, which can be done in case the necessary procedures are implemented." On the current crisis, he said: "Nobody will disagree that the basic reason is the situation on the financial markets of the United States and Europe." As for Russia, "we do not have systemic problems." Putin also said that neither the National Reserve Fund nor the National Welfare Fund will be used to support the financial markets. This is aimed to maintain Russia's macroeconomic indicator, Putin said. Putin stressed that the government will apply a balanced approach to such issues, RBC reported. "I do not believe it possible to use reserve funds, including the National Welfare Fund. I do not think it is time to spend oil and gas proceeds. However, we have them and, if necessary, may use them to support the financial market," Putin said.
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