REN TV information program 24 – November 14, 2008

Nikolai Marchenko (economy analyst): Hello. The surfacing will show where things stand. The RTS index edged up 5 percent today against the background of higher U.S. and Asian stock indices. Wall Street’s determination to rebound has proved to be really strong. Dow Jones rose nearly 7 percent yesterday. Traders say that the shares are incredibly cheap at the moment. Meanwhile, even though the bears have loosened their grip, it will not last long, as, according to economic forecasts of experts interviewed by The Wall Street Journal, the economic recession will last at least three months in the U.S. What is more, the recently released statistics demonstrated that the U.S. budget deficit reached a record-high of $237bn. It is not surprising then that the dollar, which has become the center of investors’ attention, is gradually losing ground. For the first time this week, the ruble climbed RUB 0.33 against the dollar today.

If we slightly modify a certain saying, we will get one that sounds similar to this: when North America sneezes, the rest of the world gets a runny nose. Our correspondent Roman Karlov ponders the economic immunity of Latin American countries.

Correspondent: Latin America is one of Russia’s leading trade and economic partners. This idea resounded in nearly every speech given at the business summit organized by RBC in Buenos Aires. Nearly 200 Russian and Argentine business people attempted to find common ground on the topic Strategic partnership and Profitable Investment, and agreed that there was some type of mutual interest involved in just about every sphere.

Jorge Enrique Taiana (Argentina’s Foreign Relations and International Trade Minister): We are interested in cooperation in the sphere of biotechnologies, peaceful use of nuclear energy, and space. Basically, these are industries that Russia can be really proud of.

Correspondent: About 20 percent of all electric power in Argentina is generated with the help of Russian-made equipment. Meanwhile, Argentina’s strong industry is agriculture. The country is fully self-sufficient in terms of food products, and it is also an exporter of agricultural products. Argentine farmers, however, are opposing high export duties, thus causing many problems for the government.

When people say that Argentina resembles Russia in some ways, they are probably referring to the fact that the country survived an economic default several years ago. Major foreign debt is still one of the country’s most pressing problems.

Story: Argentina owes its creditors over $140bn. Perhaps this is why the Congress had no problem voting on President Kirchner’s proposal to nationalize small pension funds. The Foreign Minister of the country, however, assured RBC conference participants that Argentina’s economy is not in jeopardy of a default at the moment.

Jorge Enrique Taiana (Argentina’s Foreign Relations and International Trade Minister): Back in 2002, the country’s debt stood at 63 percent of GDP, and today, it has dropped to 50 percent. We are in control of our debts.

Story: In the first half of the year, trade between Russia and Argentina reached $836m, but both parties are looking to increase this figure.

Yury Korchagin (Ambassador Extraordinary and Plenipotentiary of Russia to Argentina): It is a great idea to provide a platform for Russian and Argentine business people to meet, as this may help reduce the republic’s trade balance deficit.

Story: Argentine President Cristina Fernandez De Kirchner, along with representatives of the country’s businesses, is scheduled to visit Moscow in early December.

Roman Karlov, Alexei Yevdokimov, REN TV, Buenos Aires, Argentina.