Russia for territorial integrity of Sudan - foreign minister.

MOSCOW, January 23 (Itar-Tass) -- Russia seeks the territorial
integrity of Sudan, Russian Foreign Minister Sergei Lavrov said on Friday,
as he reviewed the foreign policy results of last year.

He recalled that elections, a referendum on the self-determination of
South Sudan were ahead.
"We are certainly interested in the preservation of united Sudan and
its sovereignty and territorial integrity and we shall do our utmost to
let this point of view of ours known to all of our Sudanese counterparts
within the framework of regular contacts with them," Lavrov said.
"Russia's special representative for Sudan, Mikhail Margelov, has been
working very actively. He has visited Sudan and the adjoining region more
than once and he maintains contact with counterparts from other
countries," the Russian foreign minister said. "We are hoping that this
activity will help bring about calm and prevent relapses of violence."
"Russia is for the solution of all of Sudan's problems on the basis of
the agreements concluded between the North and the South of that country,
and also on the basis of agreements regarding Darfur province," Lavrov
said. In his opinion "there is a chance of translating all of those
agreements into reality."
"It is most important for all external forces to be guided by the goal
of settlement, and not interests that have no direct bearing on this task,
let alone attempts to settle scores with somebody," Lavrov said. "In this
respect we must rely on the approaches and evaluations of those countries
that neighbor on Sudan and on the approaches of the peoples of Africa and
the African Union.


.Govt's ability to cut spending to prove 'big intrigue' - Kudrin.


MOSCOW, January 23 (Itar-Tass) -- Whether the Russian government will
be able to cut budget spending and enhance the effectiveness of these
funds over the decade to come will be one of the greatest intrigues of the
near future, Deputy Prime Minister, Finance Minister Alexei Kudrin said on
Friday. He was speaking at the international conference Russia and the
World - Challenges of the New Decade.
Kudrin said that over the next two months a program would be finalized
for enhancing the effectiveness of budget spending. The program will be
extended over a period of eighteen to twenty four months.
"It is necessary to put our appetite in order," Kudrin explained.
"| believe that the abilities and opportunities themselves will not
let the government spend as much as before," Kudrin said, adding that in
2008 budget spending grew by 25 percent, and in 2009, by 30 percent in
nominal terms, "which is unprecedented, of course."
The federal budget for three years to come is based on the assumption
oil will be traded at 65-70 dollars per barrel. The budget deficit is set
at 6.8 percent in 2010, at 4 percent in 2011, and at 3 percent in 2012.
About this hole in the budget Kudrin said that although he presented
the budget personally, it was a compromise achieved within the Cabinet and
with the parliament.
Kudrin argues that the three-percent budget deficit in 2012 is rather
high. He is certain that starting from 2013 the state treasury's deficit
should be no bigger than one percent. He argues that the budget should be
based on the forecast oil will cost 60 dollars per barrel.
The current budget benchmark of 65-70 dollars per barrel looks rather
optimistic, Kudrin said. His own estimates are far more conservative. He
doubts that the price of crude will rise that high over years.


.Diversification possible, if financial mkt is good - Kudrin.


MOSCOW, January 23 (Itar-Tass) -- For the diversification of the
Russian economy it is necessary to ensure the domestic financial market
should offer conditions no worse than those existing on the foreign one,
Deputy Prime Minister, Finance Minister Alexei Kudrin told the
international conference Russia and the World - Challenges of the New
Decade on Friday. He described that as the most important institutional
and macroeconomic task.
Kudrin said that Russia in terms of its government financing of
research and development was in the world's top ten, while private
financing of this sphere was considerably behind even the average world
standards. He believes that for its innovative development the Russian
economy must move along two lines. Firstly, "the state must become the
biggest customer of innovative products."
"All key institutions of the state must be plugged into that program
to ensure the enterprises that generate innovations get contracts," he
said, adding that "we have already set the task of increasing the share of
state contracts for innovations."
Secondly, Kudrin believes, it is the task of the state to promote the
development of the private sector in the innovation space by creating
favorable conditions for that. He sees the way towards this in developing
the internal stock market.
This will become a reality, if people's savings are built up
gradually, which would let the banking sector issue greater loans to
enterprises.
"Every year we shall see to it the interest rate on loans is low and
there are more credits," Kudrin promised. He recalled that last year, amid
the world crisis, more than 50 percent of enterprises eased their
innovative activity and only ten percent managed to preserve this
parameter unchanged or even improve it.

-0-str