President Medvedev said governments needed to spend during the downturn
Russian President Dmitry Medvedev has said that increased state intervention in the country's economy during the global downturn is "inevitable".
Speaking in St Petersburg, he did, however, say that more intervention was only a short-term solution to the country's economic woes.
He also warned that, despite rises in global stock markets, it was "too early to crack open the champagne".
The Russian state has long controlled important sectors of the economy.
These include the country's vast deposits of oil and gas.
Since the global financial crisis gripped the country, the government has also bailed out a number of companies, including banks.
Government spending
"The advent of state ownership and its more intensive use in most sectors of the economy should be considered, probably, as an inevitable, but short-term, solution to the problem," said Mr Medvedev.
He also stressed the importance of government spending to stimulate economic growth.
"Everybody will have to spend," he said.
And the president said his government was prepared to spend more to stabilise further the Russian banking sector.
"In the short-term, it is key for Russia, as well as for other countries, to clear bad assets from the banking system," he said.
"I do not think the creation of a bad bank is needed in Russia. We will use other instruments to solve this problem including... investing state funds into their capital if needed."
Mr Medvedev also said that the stimulus measures already taken by governments across the world had ensured that "we have avoided the worst case scenario."
Speaking in St Petersburg, he did, however, say that more intervention was only a short-term solution to the country's economic woes.
He also warned that, despite rises in global stock markets, it was "too early to crack open the champagne".
The Russian state has long controlled important sectors of the economy.
These include the country's vast deposits of oil and gas.
Since the global financial crisis gripped the country, the government has also bailed out a number of companies, including banks.
Government spending
"The advent of state ownership and its more intensive use in most sectors of the economy should be considered, probably, as an inevitable, but short-term, solution to the problem," said Mr Medvedev.
He also stressed the importance of government spending to stimulate economic growth.
"Everybody will have to spend," he said.
And the president said his government was prepared to spend more to stabilise further the Russian banking sector.
"In the short-term, it is key for Russia, as well as for other countries, to clear bad assets from the banking system," he said.
"I do not think the creation of a bad bank is needed in Russia. We will use other instruments to solve this problem including... investing state funds into their capital if needed."
Mr Medvedev also said that the stimulus measures already taken by governments across the world had ensured that "we have avoided the worst case scenario."
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