Surveys, News, Events
22.09.11

Russia: BRIC joint aid to eurozone impossible, unneeded

Reuters

By Lidia Kelly

WASHINGTON. It is impossible and not necessary, at this time, for the world's largest developing economies to jointly provide support to the crisis-stricken euro zone, Russia's Deputy Finance Minister Sergei Storchak said on Thursday.

"It's impossible, I am absolutely convinced about that," Storchak told journalists in a briefing on the sidelines of the International Monetary Fund and the World Bank fall meeting.

"Our state procedures do not allow for that. We don't have a mechanism (for that), not in Russia, not in China, not in India. We all have different ways of making decisions, we cannot syndicate our money."

He also said that right now there is also no need for such a joint effort.

"In the name of what? What for? I believe there is no need for that."

He added, however, that it was fully possible for individual members of the so-called BRICS group -- Brazil, Russia, India, China and South Africa -- to provide help to specific countries.

Brazil said earlier this month the government would propose that it help other large emerging economies make billions of dollars in new funds available to the International Monetary Fund as a way to help ease the debt crisis in the euro zone.

Storchak said this initiative was not discussed when the finance ministers of Brazil, Russia and the other three BRICS countries met earlier on Thursday, saying it was not on the meeting agenda.

"Brazil had not initiated such a proposal, it wasn't on the table, and if you don't have an initiative then what is there to talk about?"

He reiterated that Moscow had not received any communication from Brazil regarding a possible joint effort.

"The wave of information that Brazil offers a specific package has not proven real. At least in Russia, our department of international relations had not heard anything about it."

Source: Reuters

Post-Crisis World Institute