Moscow: President Dmitry Medvedev sought to restore calm to Russia’s battered stock markets and investment image Thursday, saying the upheaval would be “temporary.”
His comments come as domestic markets suffered one of their worst weeks in two years, amid sliding oil prices, geopolitical tension after Russia’s brief war with Georgia, and concerns about government interference in business.
The benchmark RTS index is down 11.7% since the start of the week, while the MICEX, where most trading takes place, is down 10.6%. Earlier in the week, it fell 9.1% in one day of trading.
“The situation in the stock market is, I am sure, a temporary phenomenon and obviously does not reflect the actual state of the economy,” Medvedev said in televised comments. “The Russian stock market remains very promising for investments, and serious investors understand this.”
Medvedev spoke at a meeting to address the Kremlin’s efforts to establish Moscow as a financial center.
As of 1:00 pm, the RTS was up 0.5% while MICEX was up 0.6%.