Putin: Russia prepared for negative influence of crisis

Tuesday, October 21, 2008 at 2:10 am

Russian Prime Minister Vladimir Putin today underlined that his country is “well prepared” to face the external shocks and negative influence of global economic crisis, including the drop in crude prices, which in the recent decade have fuelled former Communist nation’s economic rise.

“The Russian economy in general is well prepared for long-term negative influence of external shocks, in the first place for the drop in the oil prices,” Putin said at the annual consultations of foreign investors, conceding that the global financial crisis has sparked-off the stocks crash in the Russian bourses.

Putin underscored that the drop in crude prices is an additional irritant for the Russian economy, but the policy of accumulating petro-dollars in the stabilisation fund and government reserve fund will fully compensate the drop in oil prices.

“In 2009 the state budget will be balanced even if the average oil prices drop to the level of USD 70,” Putin stressed.

Russia saw zero capital inflow in the first nine months of 2008, Putin told the foreign investment advisory council today. The prime Minister stressed that no outflow was registered in nine months, as inflow and outflow zeroed.

Meanwhile, with the arrival of the government to the bourses Russian stocks moved higher today. Buoyed by a rebounding oil price and taking cue from Asian and European floors, Russia’s RTS and MICEX opened higher ahead of moves by the Russian government to intervene in the markets by using the National Welfare Fund to buy shares in leading companies.

(Agencies)

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Putin: Russia prepared for negative influence of crisis

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