More tax cuts on the way

A senior government official has pledged loans and fresh tax cuts to Russian industry. August was the country's worst month so far in the credit crisis, after company borrowing collapsed 80% in July.

Presidential advisor Arkady Dvorkovich said $5 billion tax savings already agreed with the oil industry are just the start.

“It's clear that more cuts are needed. Russian industry and the economy as a whole should be supported by the government by various actions including tax reduction in the next few years.  Reduction of administrative barriers and improvement of liquidity in the market and the government will probably use, or the Central Bank will use some of its reserves to do this.”