The minister is against plans to use money from the Stabilization Fund to diversify the Russian economy.
After mentioning that Stabilization Fund could be used to raise wages, he rhetorically asked what would then have to be done to keep them at that level.
"Many people say we should use Stabilization Fund money to develop the economy," added Mr. Kudrin. However, he said he was against the option.
According to him, the money would be better sent to cover the Pension Fund shortfall and to make scheduled foreign debt payments. In addition, some Stabilization Fund money could be used to pay the foreign debt ahead of term to reduce the interest rates. The minister stressed that this arrangement would not only reduce expenses on debt servicing, but would also improve Russia's reputation.
The Stabilization Fund currently stands at 462.5 billion rubles ($1=28.29 rubles), and is expected to reach 574 billion by January 1, Mr. Kudrin said.
The minister also stressed that the country's international reserves would exceed its foreign debt for the first time. According to him, the foreign debt will be $115.7 billion at the end of the year. "We are entering the historical stage," said Mr. Kudrin.
