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| Surge forces Russian market close | |
| (about 4 hours later) | |
| Russia's two leading stock exchanges were forced to close twice on Friday after share prices rose too sharply, before being reopened before the close. | |
| Trading was halted on the RTS and Micex indexes within an hour of opening. They then reopened only to close again after rising 25.4% and 20.2% respectively. | |
| The indexes were suspended on Wednesday after huge falls, prompting the state to pump billions of dollars into banks. | |
| Markets in Asia also rallied strongly after news of a US rescue plan emerged. | Markets in Asia also rallied strongly after news of a US rescue plan emerged. |
| On Thursday, US officials said they were negotiating with Congress on a comprehensive plan to rid banks of the bad debts that are at the "root" of the devastating global financial crisis. | On Thursday, US officials said they were negotiating with Congress on a comprehensive plan to rid banks of the bad debts that are at the "root" of the devastating global financial crisis. |
| Afterwards, both Republicans and Democrats suggested an agreement was close. | Afterwards, both Republicans and Democrats suggested an agreement was close. |
| Back on 'normal course' | Back on 'normal course' |
| The big gains on the Russian Trading System (RTS) index and Moscow Interbank Currency Exchange (Micex) indexes came only a day after they were suspended in response to losses not seen since Russia's economy collapsed in 1998. | The big gains on the Russian Trading System (RTS) index and Moscow Interbank Currency Exchange (Micex) indexes came only a day after they were suspended in response to losses not seen since Russia's economy collapsed in 1998. |
| The statements about the pouring of money into the Russian financial system and the series of meetings that took place undoubtedly calmed [the situation] Aleksey RybnikovHead of the Micex Russia bullish over market crisis | The statements about the pouring of money into the Russian financial system and the series of meetings that took place undoubtedly calmed [the situation] Aleksey RybnikovHead of the Micex Russia bullish over market crisis |
| The Micex fell 25% in only two-and-a-half days, leaving it more than 55% down on its May peak. | The Micex fell 25% in only two-and-a-half days, leaving it more than 55% down on its May peak. |
| The head of the Micex, Alexei Rybnikov, said the continued falls on the Russian stock markets had been counteracted by the government's decision earlier this week to pump $44bn (£24bn) into the banking system. | The head of the Micex, Alexei Rybnikov, said the continued falls on the Russian stock markets had been counteracted by the government's decision earlier this week to pump $44bn (£24bn) into the banking system. |
| "The statements about the pouring of money into the Russian financial system and the series of meetings that took place undoubtedly calmed [the situation]," he told Russian channel Vesti TV. | "The statements about the pouring of money into the Russian financial system and the series of meetings that took place undoubtedly calmed [the situation]," he told Russian channel Vesti TV. |
| Analysts estimate that $36bn (£19.8bn) in foreign investment has left Russia since early August, according to the Reuters news agency. | Analysts estimate that $36bn (£19.8bn) in foreign investment has left Russia since early August, according to the Reuters news agency. |
| 'No systemic problems' | 'No systemic problems' |
| Earlier, Prime Minister Vladimir Putin told international investors that the recent financial turmoil showed Russia needed to modernise its free market economy rather than roll it back. | Earlier, Prime Minister Vladimir Putin told international investors that the recent financial turmoil showed Russia needed to modernise its free market economy rather than roll it back. |
| "Our policy, our basic approaches remain unchanged," he said in a speech at an economic forum in the Black Sea resort of Sochi. "We are betting on private initiative, freedom of enterprise and rational integration into the world economy." | "Our policy, our basic approaches remain unchanged," he said in a speech at an economic forum in the Black Sea resort of Sochi. "We are betting on private initiative, freedom of enterprise and rational integration into the world economy." |
| There will be no politically motivated market closures or a break-up of economic ties by Russia Vladimir PutinRussian prime minister Rice criticises 'isolated' Russia | There will be no politically motivated market closures or a break-up of economic ties by Russia Vladimir PutinRussian prime minister Rice criticises 'isolated' Russia |
| Mr Putin said his country's economy was much more developed than before and had a much higher safety margin. | Mr Putin said his country's economy was much more developed than before and had a much higher safety margin. |
| "We have no systemic problems in the Russian economy. All basic economic indicators are alright," he said. | "We have no systemic problems in the Russian economy. All basic economic indicators are alright," he said. |
| High oil prices helped Russia recover from the economy's collapse in 1998. Analysts say the country is now virtually free of debt, boasts massive currency reserves and has a more diversified economy. | High oil prices helped Russia recover from the economy's collapse in 1998. Analysts say the country is now virtually free of debt, boasts massive currency reserves and has a more diversified economy. |
| The prime minister also said any attempt to throw his country back to the times of the Cold War was a direct threat to Russia's economic modernisation project, and insisted: "Confrontation is not our choice." | The prime minister also said any attempt to throw his country back to the times of the Cold War was a direct threat to Russia's economic modernisation project, and insisted: "Confrontation is not our choice." |
| "There will be no politically motivated market closures or a break-up of economic ties by Russia," he added. "We are thinking about other things, first and foremost about how to kick-start new factors of economic growth." | "There will be no politically motivated market closures or a break-up of economic ties by Russia," he added. "We are thinking about other things, first and foremost about how to kick-start new factors of economic growth." |
| Mr Putin was speaking a day after the US Secretary of State, Condoleezza Rice, said Russia was on a "one-way path to isolation and irrelevance" because of its invasion of Georgia last month. | Mr Putin was speaking a day after the US Secretary of State, Condoleezza Rice, said Russia was on a "one-way path to isolation and irrelevance" because of its invasion of Georgia last month. |
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