Russian minister says oil, stocks rise 'temporary'
Says no alternative to US dollar as Global reserve currency.
Finance minister warns Russia not to be complacent about 'temporary' rise in oil, stock prices
MOSCOW (AP) -- Russia should not become complacent about the recent rise in oil and stock prices, the finance minister said Tuesday, calling the increase "temporary."
Russia's economy, which is heavily dependent on exports of oil and gas, was hit hard over the past year as prices for oil plummeted. They traded above $52 a barrel Tuesday, down from highs of $147 a barrel in the summer of 2008.
Oil and gas have recently rallied -- 30 percent this month alone -- helping Russia's stock market rebound. Russian shares have outperformed securities from other emerging economies in the past two months, gaining 30 percent from their January lows.
However, finance minister Alexei Kudrin cautioned against excessive optimism.
"A certain growth on the stock markets and in oil prices must not get us complacent," Kudrin said at a goverment session, quoted by the RIA Novosti news agency.
"This is most likely to be a temporary improvement," he added.
The credit crunch and the drop in commodity prices have seen Russia's gold and currency reserves fall dramatically, while the ruble has lost one third of its value.
What Russia has suffered so far is just the first phase of the disaster, Kudrin warned on Tuesday.
"We expect a second wave of problems," he said. "Some of them will hit the Russian banking system as companies will be failing to return the loans."
Russian Finance Minister Kudrin said over the weekend it was too early to think of a reserve-currency alternative to the dollar, said UBS analysts.
Says no alternative to US dollar as Global reserve currency.
Finance minister warns Russia not to be complacent about 'temporary' rise in oil, stock prices
MOSCOW (AP) -- Russia should not become complacent about the recent rise in oil and stock prices, the finance minister said Tuesday, calling the increase "temporary."
Russia's economy, which is heavily dependent on exports of oil and gas, was hit hard over the past year as prices for oil plummeted. They traded above $52 a barrel Tuesday, down from highs of $147 a barrel in the summer of 2008.
Oil and gas have recently rallied -- 30 percent this month alone -- helping Russia's stock market rebound. Russian shares have outperformed securities from other emerging economies in the past two months, gaining 30 percent from their January lows.
However, finance minister Alexei Kudrin cautioned against excessive optimism.
"A certain growth on the stock markets and in oil prices must not get us complacent," Kudrin said at a goverment session, quoted by the RIA Novosti news agency.
"This is most likely to be a temporary improvement," he added.
The credit crunch and the drop in commodity prices have seen Russia's gold and currency reserves fall dramatically, while the ruble has lost one third of its value.
What Russia has suffered so far is just the first phase of the disaster, Kudrin warned on Tuesday.
"We expect a second wave of problems," he said. "Some of them will hit the Russian banking system as companies will be failing to return the loans."
Russian Finance Minister Kudrin said over the weekend it was too early to think of a reserve-currency alternative to the dollar, said UBS analysts.
