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    Putin rules out nationalization of Russian economy

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    Russian Prime Minister Vladimir Putin said Wednesday the Russian economy would not be subject to nationalization.

    NOVO-OGARYOVO, October 29 (RIA Novosti) - Russian Prime Minister Vladimir Putin said Wednesday the Russian economy would not be subject to nationalization.

    "I would like to stress that imposing state controls on Russia's economy is not, cannot be, and will not be our task. Increasing the state's presence in the economy is a forced measure and is temporary," Vladimir Putin told an economic conference.

    Putin said supporting the financial system and the real sector of the economy demanded significant budget expenditure which needed to be appropriate considering the scale of the problems.

    "Half measures will not bring the desired result," the premier said.

    Russia has been hard-hit by the global credit crisis, which has toppled Western banks and pushed developed economies toward recession. The country's stock markets have lost around two thirds of their value since their May highpoints, amid declining oil prices and disappearing investor confidence.

    Russia's government and Central Bank have recently taken urgent measures to pump billions of U.S. dollars into the domestic stock market to shore up the liquidity of leading market players.

    The Central Bank has also granted $50 billion in subordinated loans to Russian companies and banks through the country's national development vehicle, Vnesheconombank, to help them refinance their foreign liabilities.

    Since October 20, the Central Bank has held unsecured loan auctions for a large group of Russian banks to help the domestic banking system cope with the cash shortages.

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