HispanicBusiness

International Monetary Fund (IMF) Managing Director Christine Lagarde on Monday advised Russia to build up its cash reserves, as senior Russian officials said they would be willing to work with the fund on an assistance plan for the embattled eurozone.

Lagarde was in the Russian capital on a one-day visit for a meeting with Russian President Dmitry Medvedev to discuss the state of the country's economy, and possible joint efforts to control the international financial crisis.

A top priority for Russia should be an increase of government cash reserves to stabilize its own markets, she said.

"We believe that the main task in these conditions is the restoration and increase of budget reserves, as long as the price of oil stays at a high level," Lagarde was quoted by Russia's Interfax news agency as saying.

Russia's economy has some "factors of vulnerability" connected with a possible fall in oil prices, she said.

Speaking later at a lecture at Moscow's elite State University of the Russian Finance Ministry, Lagarde warned that world economic growth might be slower than the IMF had recently estimated.

"If we were to reconsider them (IMF growth predictions) ... and which way we would revise them ... I would say that, obviously, it would be downward, at least at the moment," she said.

Russian Foreign Minister Sergei Lavrov told reporters at a Moscow press conference that the Kremlin was willing to work with the IMF on helping eurozone economies, saying: "Russia with its partners Brazil, India, China and South Africa are ready to take part in the assistance."

The five nation group, commonly referred to as BRICS, would most likely provide help via "established channels" such as the IMF, Lavrov said.

Lagarde did not comment on Lavrov's earlier suggestion.

Medvedev, prior to his meeting with Lagarde, said she and the IMF face a huge challenge in the mission of stabilising weak economies throughout the world.

"Right now your work is extremely interesting and, most of all, I would like to wish you success, because a good deal in the world depends on how the IMF does its job," Medvedev said, according to Interfax.

The Russian president in comments last week said Russia was considering investing some $10 billion in European Union economies. China has suggested it might contribute $100 billion, according to news reports.

Lagarde, in comments carried by Monday's issue of Russia's Kommersant magazine said: "Russia is one of the most important members of the G20 (Group of 20) and has a worldwide influence."

Lagarde was scheduled to travel to China and Japan on Tuesday. She has headed the IMF since July.