Russia-IC brings you a recap of major points stressed at the latest press-conference by Alexey Kudrin, Russia’s Finance Minister.
      
      1) Russia is determined to repay part of the remaining $21bn of its Paris Club debt.
      In 2006, Russia plans to return about $11-12bn ahead of schedule although “some of the countries are reluctant to accept the funds.” Mr Kudrin hopes that the terms of the early repayment would be identical to the previous year.
      
      Russia is expected to settle in full with all Paris Club creditor nations except Germany and possibly Switzerland, which rejected early debt payments in 2005.
      
      This move will help Russia reduce its foreign debt to 20% of the GDP. Some of the Russian companies have taken advantage of the increased inflow of direct investment to Russia by borrowing considerable foreign loans.
      
      2) Russia is planning to wind up talks on its accession to the World Trade Organization this year.
      
      3) The Stabilization Fund has recently increased by 222.1bn roubles, or by 18%, to 1.459 trillion roubles in January from 1.237 trillion roubles on January 1, 2006. At the same time, he voiced his concerns over the increase in the new cut-off price for oil exports, a figure determining the amount of funds allocated for the Stabilization Fund.
      
      4) The move is bound to inject more roubles into economy and is likely to fuel inflation, he believes. The Central Bank is therefore forced to buy up roubles, which may also account for the fast strengthening of the national currency.
      
      The rouble is up by 10% inducing the government to lower prices for imports and raise them for exports. Such a policy halts the development of the exports. Last year, the exports of machinery were cut by 7% against the 28% hike in the imports.
      
      5) Mr Kudrin is not satisfied with the government’s financial policy. The forecast $60-61 price for the Brent brand implies a high price for the Urals brand, too.
      
      6) Furthermore, Russia says it will abolish any limitations on the capital flow, an initiative to liberalize the capital transactions. Moreover, the Russian rouble could become a reserve currency in some countries.
      
      7) Within three or four years Russia is likely to rise from the twelfth to the fifth or seventh position in terms of the inflow of foreign investments.
      
      8) The state monopoly on diamond sales in the Russian Federation may be scrapped before the state increases its share in ALROSA, Russia’s giant uncut diamond producer.
      
      SOURCE:
      INTERFAX
      RIA-NOVOSTI
      ITAR-TASS