icon bookmark-bicon bookmarkicon cameraicon checkicon chevron downicon chevron lefticon chevron righticon chevron upicon closeicon v-compressicon downloadicon editicon v-expandicon fbicon fileicon filtericon flag ruicon full chevron downicon full chevron lefticon full chevron righticon full chevron upicon gpicon insicon mailicon moveicon-musicicon mutedicon nomutedicon okicon v-pauseicon v-playicon searchicon shareicon sign inicon sign upicon stepbackicon stepforicon swipe downicon tagicon tagsicon tgicon trashicon twicon vkicon yticon wticon fm

Russia bolsters regional finances

Russia has passed a law to set up an anti-crisis fund for the Eurasian Economic Community.

The primary task of the bailout fund of Eurasian Economic Community members – Russia, Kazakhstan, Belarus, Kyrgyzstan, Tajikistan, and Armenia – is to provide credit to countries in the post-Soviet space.

Deputy Finance Minister, Dmitry Pankin, says many have fallen into difficult economic situations – brought on by the world financial crisis.

"Russia has already ratified, and other countries will probably due so by September. As soon as everything will be working, then we plan to transfer the first part of our contribution – $750 million, which has been allocated by the 2009 budget."

Russia has pledged to put up 75% of the $10 billion dollars in the fund. Stabilizing the economic situation in these countries is a key priority for Russia. The fund also provides for joint financial projects within the community.

Many of the former Soviet republics have been hit hard. Local currencies have suffered devaluation, and the fund could help promote the Rouble as a reserve currency, analysts say.

Exports in these states are also down as much as 50%, and Andrey Suzdaltsev, Vice Rector, Faculty of World Economy and Politics, at the Higher School of Economics says the worst might be far from over.

"When we get out of the crisis, consumer demand could change. If our post-Soviet neighbors aren't able to restructure their economies even by using money from the anti-crisis fund, they could be stuck in a state of crisis forever, asking for more and more loans."

The fund, which will be run by the Eurasian Development Bank, may offer a temporary solution to problems in a region crucial for Russia's interests.

Dear readers and commenters,

We have implemented a new engine for our comment section. We hope the transition goes smoothly for all of you. Unfortunately, the comments made before the change have been lost due to a technical problem. We are working on restoring them, and hoping to see you fill up the comment section with new ones. You should still be able to log in to comment using your social-media profiles, but if you signed up under an RT profile before, you are invited to create a new profile with the new commenting system.

Sorry for the inconvenience, and looking forward to your future comments,

RT Team.