Eurozone deal cause for 'cautious optimism': Russia

27th October 2011, Comments 0 comments

Russia said Thursday the eurozone debt crisis deal reached in Brussels provided cause for "cautious optimism" that should help lift the markets in the short term.

"There are grounds for cautious optimism here," President Dmitry Medvedev's aide Arkady Dvorkovich told an investor conference.

"I think that the markets will receive this decision adequately and treat it as sufficient for now."

Russia said on the eve of the overnight session in Brussels that it backed the idea of using the International Monetary Fund (IMF) to help leverage the eurozone rescue fund.

One of the two options agreed for the European Financial Stability Facility (EFSF) should see the creation of an investment vehicle that attracts private and public investors and could be associated with the IMF.

Russia has welcomed the move as a way of both helping restore Europe's economy and raising Moscow's own profile within the fund.

"Our contribution has to run in parallel with the redistribution of IMF (voting) shares and the strengthening of the role played by emerging countries," Medvedev's economic adviser said.

He also confirmed that Russia was not holding any EU sovereign debt purchase discussions besides those it already conducted with Spain.

The European debt deal was received with relief on the Moscow market and saw the ruble gain more than one percent against the dollar and nearly as much against the euro at the open.

The main MICEX index also continued its strong week by trading nearly three percent higher on strong gains from the country's main energy firms.

Dvorkovich said he expected the positive market sentiment to continue "for several more months".

© 2011 AFP

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