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Russia taking measures to shore up finances - Medvedev

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President Dmitry Medvedev said on Friday that Russia had taken sufficient measures to shore up the domestic financial market against the backdrop of the ongoing global credit crisis.
BISHKEK, October 10 (RIA Novosti) - President Dmitry Medvedev said on Friday that Russia had taken sufficient measures to shore up the domestic financial market against the backdrop of the ongoing global credit crisis.

"I think the measures taken so far are rather serious," Medvedev said, speaking on the sidelines of a summit of the post-Soviet CIS organization in Kyrgyzstan.

The lower house of parliament, the State Duma, approved on Friday anti-crisis packages worth a total of $86 billion. The government has earmarked $50 billion of funds to banks and firms to refinance foreign debt, and some $36 billion to key banks in subordinated loans.

The ex-chairman of Russia's Central Bank, Sergei Dubinin, said in an interview on the Ekho Moskvy radio on Friday that Russian banks and companies were to pay off about $15 billion before the end of this year, and another $40 billion in the first quarter next year.

The State Duma also passed a bill on deposit insurance to protect the first 700,000 rubles ($26,850) of deposits payable in Russia. The amendments raised the value of deposits protected from 200,000 rubles.

Later on Friday, the country's antitrust service said the government's foreign investment commission had permitted domestic banks to conduct mergers and acquisitions with foreign investors without the commission's approval.

The service also announced two major deals with foreign investors in the sectors considered "strategic" under Russian law and usually restricted for foreign investment.

Service head Igor Artemyev said the foreign investment commission has approved the sale of a 49.9% stake in Arkhangelskgeologodobycha, a state-controlled firm with licenses for oil, gas, diamond and nickel production, to De Beer's subsidiary.

The commission also approved the acquisition of 25% plus one share in Sukhoi Civil Aircraft by Switzerland's World's Wing SA.

"There are no obstacles for the deals to go ahead," Igor Artemyev said.

No more details on the deals have been disclosed.

The current global credit crunch started in the United States and quickly spread to Asia and Europe leading to record losses on Russia's financial markets, rising interest rates and a liquidity shortage.

The crisis deepened further on Friday as Asian stock markets fell sharply following Thursday's losses on Wall Street. Russia's two stock exchanges, the MICEX and the RTS, did not open for full trading on Friday upon instructions from the financial markets' regulator.

Finance ministers from the Group of Seven leading industrialized countries met in Washington on Friday to talk coordinated efforts to tackle the crisis. Global finance officials also gathered for the annual meetings of the IMF and World Bank, which run through Monday.

Medvedev also said he planned a conference on steps to prop up different branches of the economy. "We will certainly follow the situation," he said.

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