Russia stands ready to support the eurozone overcome its debt crisis, presidential aide Arkady Dvorkovich said in a January 23 article in The Financial Times’ Guide to the Davos World Economic Forum.
He also outlined Russia’s priorities going into the World Economic Forum and suggested that hope for a global recovery lies with emerging markets.
Below are the main points from Mr. Dvorkovich’s piece:
• The survival of the euro is a pre-eminent concern for Russia. The EU is Russia’s largest trading partner, accounting for more than 50 percent of foreign trade turnover and more than 75 percent of foreign direct investment. This is why Moscow has repeatedly said it is willing to contribute at least $10 billion in loans to the economic union through the IMF.
• The challenge is that western governments must find ways to deleverage their economies without causing a major recession, while BRIC countries (Brazil, Russia, India and China) must maintain their growth rates to offset slower growth in Europe and the U.S.
• The BRICs are playing an increasingly strong role in the global economy, representing 18 percent of global GDP, and accounting for around 30 percent of global economic growth since 2001. With their influence set only to increase, these economies will need to be the main engine for global growth.
• Russia’s immediate challenges include intensifying the fight against corruption; continued privatization and decentralization; and diversifying the economy while increasing the efficiency of the energy and natural resources sector.
• Russia has also taken steps to opening itself further to international trade. In recent months it joined a custom union with Kazakhstan and Belarus and joined the World Trade Organization. Governments must continue to push for growth-enhancing trade liberalization.
• The global financial system should be managed in a fairer and more even-handed way. Russia will continue to call for the restructuring of the IMF along a more representative and efficient model. Greater use of currencies like the ruble, yuan and real is needed to balance out the reliance on the dollar.
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