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World Bank President James Wolfensohn said he is concerned about what has happened in Russia's YUKOS, reports ITAR-TASS World Service. At the same time, Wolfensohn said he is hopeful that this problem will be solved in a transparent way. He said the Russian government has chosen the right strategy in the development of the country's economy. The WB president stressed that over the past year the Russian economy made great success and avails itself of the possibilities of economic growth.
The Moscow Times adds that the visit was brief compared to World Bank missions in the aftermath of the August 1998 financial meltdown. During the crisis, World Bank and International Monetary Fund talks were watched with baited breath, and both institutions wielded considerable clout in forging the nation's economic policy. Today the situation could not be more different. Soaring oil revenues have translated into a ratio of debt to gross domestic product that is healthier than France's. These days, the World Bank is in no position to put pressure on the government's economic agenda, said Chris Weafer, chief economist at Alfa Bank. "Four years ago Russia needed the goodwill and the continued cooperation of organizations like the IMF and the World Bank to basically ensure that it survived," said Weafer. "Now Russia has a normal relationship with these organizations. It no longer needs any special favors."
Nonetheless, Wolfensohn told foreign businesspeople on Tuesday that despite the government's reduced need for credit, it was still very interested in social and infrastructure projects. An AIDS project, under which the bank will loan Russia $150 million over five years, was a particular priority, Wolfensohn said.
Dow Jones further reports that the World Bank has called on Russia to restructure the $8 billion in debt owed by Iraq. "Russia should continue to play an important role in the restructuring of loans," including those of Iraq, World Bank President James Wolfensohn told reporters Wednesday, the day after meeting with Russian President Vladimir Putin. Wolfensohn said the issue of Iraq's debt was discussed during the meeting and that the World Bank approved of Russia's ongoing policy of writing off poorer countries' debt.
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