Russia Blames U.S. For The Current Financial Crisis, Offers To Find Solution

ST. Petersburg, Russia (AHN) - Russian President Dmitry Medvedev, in his first speech on economics since taking office, on Saturday blamed the United States' "economic egoism" for causing the current global financial turmoil.

The present economic contraction is considered the worst since the depression of the 1930s and it has slowed down the global economies led by major banks.

"The failure to properly assess risk by the largest financial corporations, combined with the aggressive financial policies of the world's largest economy, have led not only to losses for those corporations," he was quoted saying by RFE/RL radio news channel."But unfortunately have impoverished the majority of people on the planet."

Speaking at the St. Petersburg Economic Forum, Russia's main annual event for international investors, the president said that the worldwide decline cannot be reversed by a single country.

He added that Russia can play an important role in helping the world's major economies come out of the current financial crisis as its economy has grown and stabilized.

"Russia is a global player today. Understanding our responsibility for the fate of the world, we wish to participate in forming new rules of the game, not because of the notorious 'imperial ambitions' but because we have official opportunities and resources here," he said.

Overall the subprime mortgage crisis has forced the major banks and brokerages in the U.S. to post more than $386 billion in losses and writedowns, since last summer.

So far the financial services companies have managed to raise as much as $283 billion to cover the losses, according to the reports.

The Russian leader said that the disparity between the U.S.'s leading role in the world economic system and its real potential is one of the main reasons for the crisis.

Medvedev, who is believed to be an economic liberal compared to his predecessor Vladimir Putin, said Russia is trying to boost global energy security by developing its energy sector.

He added that Moscow's partners are concentrating on investment in biofuels, inflating food prices around the world.

The 12th annual St. Petersburg's Forum, which is the country's biggest trade and investment fair, is likely to match the $12 billion worth of deals signed last year.