Financial Times FT.com

Moscow abandons bail-outs for bank aid

By Stefan Wagstyl in London and Catherine Belton in Moscow

Published: February 4 2009 12:16 | Last updated: February 4 2009 19:38

Russia signalled a change in its policies to fight the financial crisis on Wednesday, indicating that it would switch from bailing out individual companies to supporting the economy through the banking sector.

Moscow also plans huge budget cuts in an attempt to limit its fiscal deficit – rejecting pressure to follow the US and other western countries to try to stimulate the economy with a big boost in public borrowing.

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