Russia no longer needs foreign loans

ST. PETERSBURG -- Russia's gold and foreign exchange reserves which rank as the world's fourth-largest are expected to exceed both sovereign and private external debt in 2006 as mentioned by President Vladimir Putin on Tuesday.

Russia's gold and foreign exchange reserves were at $247 billion last week, while the country's total external debt stood at $258 billion as of Jan. 1, 2006.

"We don't need to borrow abroad any more. We are repaying our debts on time and even ahead of schedule," Putin said.
He also mentioned that the accumulated investment in Russia had reached 112 billion dollars.

"We are also seeking approaches to the solution of the problem and believe that our economy must be transparent and open to the utmost. The restrictions for foreign investors required by national security should also be transparent," said Putin.
The foreign businessmen who attended the 10th annual St. Petersburg Economic Forum seemed to have supported the growing criticism by the European Union and others that Russia has sought to gain complete control over certain energy sectors along with the potential aim of using energy exports as a weapon.

"It’s important that, under the notion of protecting national security, unfounded barriers aren’t created for foreign investors," said Putin. "And so that Russian companies don’t face similar problems, I hope that other nations will travel along this path and create clear rules for investment in strategic sectors."

According to Putin, all developed economies do not have transparent rules for foreign investors and that he seeks a "balanced approach to solve this not-so-simple question".
Russia, the world’s biggest energy producer, will remain a reliable fuel supplier, he said.

Russia and the European Union have agreed to increase cooperation in financial services which is a good sign of Russia's increasing integration into the global economy.