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Russia to double annual financial aid to poor nations by 2011

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MOSCOW, December 22 (RIA Novosti) - Russia will increase its annual financial aid to the world's most impoverished nations from $220 million to $400 million-$500 million by 2011, a deputy finance minister said on Monday.

Russia annually channeled $50 million-$60 million to impoverished nations from the budget in 2003-2005.

However, Dmitry Pankin said, Russia itself could consider foreign borrowing if oil prices keep falling or stay at $30 per barrel over a long period.

The World Bank's leading economist for Russia Zeljko Bogetic said last week that Moscow would have to apply for a loan to the IMF and WB if oil prices stay within $30 per barrel for a couple of years, but described the scenario as unrealistic.

"Currently we have no such plans. We have enough reserves to resolve all our problems in 2009 and 2010," Pankin said. "If low oil prices persist, we could reconsider our foreign loan strategy in the next couple of years."

The World Bank's Country Director for Russia Klaus Rohland said at a news conference on Monday the WB did not expect Russia to seek a foreign loan within the next two years.

The WB expects the global economy to overcome the recession in the latter half of 2009, with oil demand and prices on the rise again. The bank said its economic forecast for 2009 was based on an average oil price of $75 per barrel.

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