SOCHI, August 22 (RIA Novosti) - Russia's government will use economic measures to hold back the ruble's further rise, and intends to keep the national currency's appreciation within 4.7% of its average effective rate this year, Finance Minister Alexei Kudrin said Tuesday.
Data on the economic situation in Russia shows that the strengthening of the ruble may be a critical factor for the economy, President Vladimir Putin told the minister at a meeting at his holiday residence on the Black Sea.
"This danger [the ruble's appreciation] is more serious in Russia as an oil exporter than in other countries," Kudrin said at the Sochi meeting.
Kudrin said the ruble was growing as petrodollars continued to flow into the country. But he said the Stabilization Fund, established to accrue surplus revenues from high world oil prices, could absorb 80% of the ruble's appreciation and the government's and the Central Bank's measures would do the rest.
Kudrin said the ruble could appreciate as soon as the government increased spending through oil and gas revenues.
"Our task is to strictly plan spending based on oil and gas revenues," Kudrin said.
Putin said in turn the heads of major companies had told him they had a small safety margin.
"Large companies are prepared for quite effective development but if this situation [the ruble's appreciation] continues, you'll create problems for them," Putin said.
Kudrin said the ruble's strengthening was making the Russian industry less competitive from the viewpoint of its vulnerability to imports, which would expand 24% next year.
"We must hold back the ruble's further appreciation with economic policy measures," Kudrin said.
