Medvedev says new measures may follow to tackle credit crisis
Russian President Dmitry Medvedev said on Tuesday that government measures employed so far to curb the financial crisis are sufficient, but that more steps could be taken in the future, RIA Novosti reports.
"I believe the decisions taken to date are sufficient, but this does not mean their list has ended. Unfortunately, life makes its own amendments," Medvedev said, adding that "new organizational and financial decisions" could be made if necessary.
Russia has been hard-hit by the global credit crisis, which has toppled Western banks and pushed economies toward recession. The country's stock markets have lost around two thirds of their value since their May highpoints, amid declining oil prices and other investor concerns.
Prime Minister Vladimir Putin said on Monday that the Russian economy was well prepared to deal with shocks on global markets, but could resort to using reserve funds accrued from windfall oil revenues.
The chairman of the country's national development bank, Vnesheconombank (VEB), said on Tuesday that the bank may start investing in the stock market this week using the Welfare Fund.
"All the necessary legal and technical documents are close to being finalized. I believe we are likely to receive funds from the Welfare Fund this week, and we could launch investment during the week," Vladimir Dmitriyev said.
Russian stocks have made slight recoveries since the start of the week on the news, and on global gains.
The benchmark RTS and MICEX indexes were up 4.6% and 6.3% respectively by 2:55 p.m. Moscow time (10:55 GMT) on Tuesday. Oil prices rose to $75 a barrel on Tuesday as OPEC said it could cut output.
Russia's Central Bank said earlier it had spent about $11 billion daily last week to buy rubles to support the currency's exchange rate, which has been declining since August. Analysts say the bank has been trying to let the ruble slide gradually to deter panic.
Russians rushed to buy dollars over the weekend, responding to speculation that the Central Bank will have to cut the exchange rate if capital flight persists and oil prices continue declining. The dollar appreciated from an average 26 recently to 28 rubles on Monday as a result.
Analysts, however, say the ruble will depreciate eventually against the backdrop of the credit crunch and declining oil prices. The Central Bank's reserves currently stand at $530.6 billion.