Russia ‘better prepared’ for new crisis than in 2008

The Russian government and the Central Bank are better equipped to handle a potential financial crisis today than they were in 2008, Deputy Finance Minister Alexei Savatyugin said on Thursday. “Even in a worst-case scenario we are better prepared today,” he told the Russian Money Market 2011 forum hosted by RIA Novosti. The 2008 crisis was caused by the financial problems of private corporations whereas today the principal threat is posed by sovereign states and their budgets. “In 2008 the government and the Central Bank had to devise support measures as they went along,” Savatyugin said. At present Russia has the entire gamut of tools needed to effectively respond to possible crises, he said. “We won’t think up anything new compared to what we did two years ago,” he said. If the price of oil falls to $90 per barrel the Central Bank’s monetary instruments should be enough to deal with the situation, the deputy minister said. If it falls to $60 to $75 per barrel, “additional capitalization of system-critical banks and enterprises in the real sector of the economy would be needed,” Savatyugin said.