Russian government told to stay alert amid global financial turmoil

Russian authorities should constantly monitor the situation on European and U.S. financial markets and respond accordingly, President Dmitry Medvedev said on Monday.

“The economic situation in Europe and across the world is making an impact on the state of our economy and financial markets,” he said, adding that the situation in some EU countries was cause for concern.

Global stock markets were hit with an aftershock of the 2008-2009 crisis in the third quarter of the current year, with key stock indices from Tokyo to New York losing between 11% and 25%.

Russian RTS and MICEX indices plummeted 30% and 18%, respectively, with the ruble considerably weakening in relation to key global currencies.

Russia has recently passed a number of laws designed to stabilize its financial market, Medvedev said.

These include a risk management system, which helps avoid “the house of cards effect” in case of bankruptcy and the ability to assess so-called systemic risks on the stock exchange, he said.

Medvedev’s remarks contrast with Prime Minister Vladimir Putin’s upbeat opinion that the world economy is on the path of recovery.


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