Accessibility links

Russia Draws Up Plans To Revamp World Finances

President Dmitry Medvedev

President Dmitry Medvedev

MOSCOW (Reuters) -- Russia has drawn up its own proposals to restructure the world financial system, which President Dmitry Medvedev will present at a global summit on the financial crisis next month, a senior official said on October 26.

U.S. President George W. Bush will host the summit on November 15 in Washington to discuss the causes of the crisis and the principles by which financial regulators and institutions should be reformed.

Invited to the meeting are leaders of the G20, which includes the Group of Seven major industrialized nations and key emerging economies like China, Brazil, India and Russia. Heads of the World Bank, International Monetary Fund, United Nations and the Financial Stability Forum have also been invited.

Russian First Deputy Prime Minister Igor Shuvalov told state channel Vesti that Medvedev's proposals contained "measures on [revising] the international financial structure, on how international financial institutions should function, and they also concern national regulation."

Shuvalov did not reveal details, but reiterated Russia's general stance: "The currently existing world financial system is inadequate to the conditions in which we live. In the Russian Federation, our leadership has been constantly talking about this in recent years."

Shuvalov said Russia had no plans to isolate itself from the rest of the world during the crisis, stressing that it was part of the global economy. If the world economy declined, Russia's growth would be short-lived, he added.

"You know that we have ambitious plans for the country's development until 2020, and we have to sustain high growth tempos," Shuvalov said.

"This is why we are interested together with the G20 -- maybe this club will be later broadened -- to stabilise the world financial system and in general achieve positive economic growth," he said.

Some analysts say the crisis, accompanied by a fall in energy and commodity prices, will bring an end to a Russian boom which has revived Moscow's ambitions to become one of the main world economies and a global political player.

But Medvedev said last week the turmoil gave Russia a chance to modernise its economy and find a stronger international role.

He said the consolidation of assets of Russian companies would make them more competitive and promised government funds to support that process. Financial organisations could become more effective and attractive for investors.

Russia's stock market lost more than a tenth of its value on October 24, hitting its lowest levels since 2004 as a further oil price fall cast fresh doubts over the country's ability to avoid a recession and defend its currency.

The rouble slid a further 23 kopecks to 27.23 rouble per dollar, touching a two-year low, as the U.S. currency rallied on global markets.