Putin blames US for global financial crisis

Battling to insulate former Communist nation's nascent economy from global financial meltdown, Russian PM Vladimir Putin has blamed the US for showing 'irresponsibility' while managing the crisis.

Battling to insulate former Communist nation8217;s nascent economy from the global financial meltdown, Russian Prime Minister Vladimir Putin has blamed the US for showing 8220;irresponsibility8221; while managing the crisis.

8220;We see an inability to take appropriate decisions.

This isn8217;t the irresponsibility of particular individuals, it is the irresponsibility of a system that as we know had claims to leadership,8221; Putin said in his televised remarks at the cabinet meeting on Wednesday.

Putin, who as the country8217;s chief financial and economic executive, has taken several steps to ease the credit crunch by releasing 1.5 trillion roubles 25 roubles = 1 USD and earmarking another 500 million roubles to buy securities to prop bourses, said that Russia could no longer remain unaffected by the 8216;infection8217; originating from the US.

8220;Everything that is happening in economics and finance started in the US,8221; Putin said.

He, however, underscored that Russia could not abandon its national development plans due to crisis.

8220;The US not only can8217;t assume leadership, it can8217;t even take appropriate and absolutely essential measures for overcoming the crisis,8221; Putin said referring to the failure of House of Representative to adopt bailout package offered by Bush Administration.

Putin pledged extra USD 50 billion to a previously announced USD 100 billion of funds for the banking industry on September 29 and said the Central Bank will provide loans without collateral to banks, widening access to funding.

Story continues below this ad

The liquidity package may boost inflation by as much as two percentage points, according to Alexei Ulyukayev, First Deputy Central Bank Chairman.

Price stability is the government8217;s 8220;long-term8221; goal, while financial stability is the priority in the short term, Ulyukayev said.

Russian consumer prices grew an annual 15 per cent in August. Inflation may exceed 12 per cent by the end of the year, Finance Minister Alexei Kudrin said.

He also said that the time for further strengthening of rouble is over for now as the speculative capital has left Russia.