Russian Prime Minister: Government to Continue Foreign Borrowing

There is no sense in the government ending foreign borrowing, and there is no need to quickly pay off government debt, said Russian Prime Minister Mikhail Kasyanov today at press conference after an appearance in the State Duma. The Prime Minister believes that foreign borrowing allows the government to carry out more precise actions in the Russian economy thanks to additional resources. However, he said that the government would work towards reducing the level of such debt.

On the subject of BP's purchase of 50% of the company formed by uniting the assets of TNK and Sidanko, Kasyanov said that it was a 'familiar event' for the Russian economy. 'I think it is a positive event which demonstrates the faith that major foreign investors have in the Russian market. Inflows of foreign investment will never be a bad thing for Russia,' said the Prime Minister.