OREANDA-NEWS. On 29 April 2008 was announced, that CiG head, Alexei Gurin, believes Russia should use its considerable hard currency reserves to purchase U.S. assets. He proposes that Russia should play a more crucial role in reversing the current financial crisis, and as a result, become a key global financial center.

Speaking at the 11th Annual Russian Economic Forum and Russia’s Road Show in London, Alexei Gurin, CEO of CiG (Centreinvest Group], called for Russia to play a major role in helping to resolve the current economic crisis by using its cash reserves to purchase corporate assets in the world’s largest economy, the United States. He believes that this is one way Russia can prove it is ready to “emerge as a formidable economic super power”.

In his speech, Gurin joked about purchasing Alaska as the US had done when Russia was cash-strapped in 1867. He used the remark to make his point that “Russia should seek an investment agreement with the U.S. that would allow Russia's sovereign wealth funds to invest in U.S. assets, not only its debt. The U.S. should welcome Russian acquisitions of its companies, so long as its rules are respected and U.S. companies gain reciprocal rights.”

Gurin noted that the mature and so-called “emerging” economies are interlinked and mutually interdependent. “Commodities-driven economies like Russia help fuel manufacturing-driven economies like China, which in turn help fuel consumption-driven economies like the U.S. With the U.S. on the brink of recession, and the Asian market in near free–fall since January, Russia is not immune to a financial crisis. We will either be part of the solution or part of the problem.”

According to Gurin, Russia, in third place in terms of hard currency reserves worldwide with over \\$500 billion, “should carve out a new, stronger economic position on the international market. Following the example of China and the Middle East, Russia has to diversify its investments and more actively participate in the lower priced US assets.”

“Investment by the cash-rich countries in the US is good for the US. It is good for the global economic stability. And it is an opportunity for Russia to purchase undervalued assets as well as choose a path which may determine its enduring economic legacy,” said Gurin.