Posted by: Sam Carson | 2 October, 2007

Rejoice! The Russians will keep their cash at home and not buy Germany

How is this for a change? President Putin has recently calmed fears, mostly European, that the vast amounts of capital will be used to finance updating Russian infrastructure rather than buying Europe. This, from the Times:

Russia has no intention of using its huge currency reserves to infiltrate Western economies or to invest improperly in Western equities, President Putin has told American and European Russia-watchers.

He said that Moscow would use its vast gold and foreign currency surpluses to rebuild Russia’s roads, ports, railways and infrastructure, to construct energy pipelines, raise pensions and give a vital economic boost to small business.

Western governments have become increasingly nervous that Russia will use its huge reserves, now the third-largest in the world after Japan and China, to buy up strategic Western assets such as aerospace industries and energy companies and run these in its own national interest.

What a difference a decade makes.

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