MOSCOW, September 15 (RIA Novosti commentator Peter Lavelle). Finance Minister Alexei Kudrin said Wednesday that speculation by foreign investors seeking high returns amid strong commodity prices and a strengthening ruble could lead to a market bubble.
The minister also suggested that saved interest payments from early debt redemption could be channeled to the investment fund. The investment fund is set be established at the start of next year to support government-identified infrastructure projects. Investors remain wary of this fund, as the government has a poor track record for choosing efficient investment projects.
Concerns of a market bubble may be premature, although there is no doubt the record high oil price has been one of the primary drivers behind Russia's sterling stock market performance, which most market players see as fully valued. The ruble, at the same time, has actually depreciated this year, although this can be partly attributed to Central Bank intervention and the dollar's strengthening against world currencies during the first half of the year.
