Russia ready to buy Spanish government debt

Mr. Arkady Dvorkovich, economic advisor to Russian President Dmitry Medvedev, said on October 10 that Russia is ready in principle to buy Spanish government debt once the Eurozone member countries have a strategy to overcome the current debt crisis.

Mr. Dvorkovich stressed that when European countries announce a specific and clear strategy to get out of the crisis, and if within the framework of this strategy, support from Russia and other countries in the BRIC group (Russia, Brazil, India and China) is needed, Russia will be ready to spend more "petrodollars" on any debt purchase program implemented to help the Eurozone countries.

Russia currently has the world's third largest foreign exchange reserves, totaling $517 billion.

This country also makes many EU countries jealous because its public debt accounts for less than 10% of GDP.

Of Russia's total foreign currency reserves, two-fifths are currently invested in Eurozone sovereign debt and $109 billion is held in two sovereign wealth funds managed by the country's Finance Ministry.

The Central Bank of Russia will decide on the investment of the remaining foreign currency.
Russia is generally quite reserved about providing bilateral financial support to Eurozone countries, instead Moscow has expressed its desire to invest in bonds issued by the European Financial Stability Facility (EFSF).

Russian officials have also said they would like to buy any debt backed by the G20.

The G20 summit is scheduled to take place in Cannes, France, next month.

According to VNA