Wrap: G8 finance ministers focus on poverty, energy in Moscow
Moscow, February 11 (RIA Novosti) - International aid to the world's poorest countries and energy security dominated a Moscow meeting Saturday of finance ministers from the exclusive club of the world's most industrialized countries.
At their meeting in the Russian capital, the Group of Eight finance ministers proposed various global economic initiatives, which were then discussed with Russian President Vladimir Putin at the Kremlin.
Along with the finance ministers of the G8 nations, International Monetary Fund Director Rodrigo Rato, World Bank President Paul Wolfowitz, the Finance Minister of Austria (which currently holds the EU Council presidency) Karl-Heinz Grasser, and European Commissioner for Economic and Monetary Affairs Joaquin Almunia, attended the meeting at Moscow's National Hotel.
In a joint communique released after the meeting, the ministers said they had agreed that further progress must be made in implementing policies to help resolve global imbalances and promote growth in the global economy.
The ministers discussed the global energy outlook and said market mechanisms were vital for the global energy system to function effectively.
"In order to improve the smooth functioning and stability of markets, we agreed to take forward work on enhancing the global energy policy dialogue between oil producing and consuming countries and the private sector. Ongoing efforts, including in existing energy fora such as the IEA and the IEF, are important to help enhance transparency, timeliness and reliability of demand and supply data, facilitate necessary investments in exploration, production, transportation, and refining capacity, as well as improve energy efficiency. This may also facilitate diversification of energy production and consumption, develop alternative sources of energy, and protect the environment," the communique said.
The ministers welcomed the creation of the IMF's Exogenous Shocks Facility (ESF) to provide support and financing for energy-poor developing nations, and encouraged oil producing countries to make further donations.
The ministers recognized the importance of the development agenda, and called for full implementation of commitments made on Multilateral Debt Relief Initiative, aid effectiveness, and increasing resources for development.
"We welcome the fact that Russia's good economic performance and improved fiscal position will allow it to join other G8 countries in the area of development finance by stepping up its efforts in this field."
The ministers acknowledged the risk of a possible bird flu pandemic and its potential economic and financial impacts.
"We call on the donor community to provide financial support to poor countries fighting the epidemic through the existing mechanisms, recognizing that donor coordination and harmonization in this area are critical....We welcome the work under way on Advance Market Commitments for vaccines and look forward to a specific AMC proposal at next meeting in April."
At their meeting in the Kremlin with the Vladimir Putin, the president said Russia would allocate $43.5 million in 2006-2010 for the IMF's Exogenous Shocks Facility.
Putin also said that Russia was ready to pay the International Development Association up to $587 million extra.
"This money could be used to cover the so-called structural gap."
The IDA, set up in 1960 by the World Bank, helps the world's poorest countries tackle poverty by providing interest-free loans and grants to boost economic growth.
Putin said that Russia was ready to repay $11.9 billion to the Paris Club ahead of schedule, adding that this would "contribute to the poorest countries' development."
"It is well known that some creditor countries experience a lack of free financial resources, and they will be able to use funds received from Russia to honor their commitments to the International Development Association on compensating poorest countries' debt write-offs."
Russia is developing stable and transparent rules in the global energy sector, and invites its partners to discuss them, he said.
"The formation of a favorable and stable investment climate plays a serious role in energy security, as well as transparent rules in the global energy sector."
"In Russia we are already working on such rules, and are ready to propose them to our partners for discussion."
A whole range of measures need to be implemented to strengthen the stability and decrease the unpredictability of world energy markets, which are "vulnerable to serious political, technological, and environmental risks," Putin said.