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Russia's Lisin says indifferent to strong rouble

Published 04/26/2011, 03:49 PM
Updated 04/26/2011, 03:52 PM

By Gleb Bryanski

COPENHAGEN, April 26 (Reuters) - Russia's richest man, metals tycoon Vladimir Lisin, said on Tuesday that his business empire was indifferent to he strengthening rouble and expressed hope a grain export ban will be lifted soon.

Some of Russia's most prominent business leaders raised concern over the strong rouble at a recent meeting with Prime Minister Vladimir Putin, saying it was hurting producers and calling for a cap.

But Lisin, owner of Russia's fourth-largest steelmaker Novolipetsk Steel , or NLMK, said their worries were exaggerated.

"I do not believe it is a topic worth discussion now. The strengthening of the rouble is a natural consequence of the weaker dollar and the rise in the price of oil," Lisin told reporters in Copenhagen, where he accompanied Putin.

Lisin said that for businesses which were both exporting and importing, the strong rouble was neutral.

The rouble hit 2-1/2 year highs to the dollar on Tuesday after Russian policymakers, including Putin, said controlling inflation was a top priority.

Lisin, who in 2010 invested 1.8 billion roubles ($64.77 million) in a new grain terminal on the Black Sea with storage capacity of 102,000 tonnes, expressed concern with the grain export ban which was imposed amid a devastating drought last year and is set to be extended this year.

"The terminals will stand idle for now. We will have to wait until the ban is lifted," Lisin said.

Lisin said that NLMK will take a wait and see approach to further European expansion after consolidating its ownership of Swiss-based Duferco. He said the goal of the expansion was to be closer to markets.

NLMK said last week it would take full control of Duferco for about $600 million. In Denmark, NLMK controls DanSteel.

Lisin also said the Russian government could compensate for an expected cut in the social tax by reducing expenditures.

"A cut in budget spending will compensate for a cut in taxes on businesses. This is the sure way," he said.

The government raised the social tax levied on employers this year to plug the growing pension fund deficit, but with parliamentary and presidential elections approaching, officials have been talking increasingly about easing the tax burden.

Putin is trying to balance various interests ahead of the March 2012 vote in which he may seek a return to the presidency. (Reporting by Steve Gutterman; Editing by Tim Dobbyn)

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