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Russia says no contradiction with G20 on duties

Published 11/17/2008, 06:40 AM
Updated 11/17/2008, 06:42 AM

MOSCOW, Nov 17 (Reuters) - Russia's plans to raise import duties are not in contradiction to the weekend's Group of Twenty (G20) pledge not to raise trade barriers over the next 12 months, a senior Russian official said on Monday.

Earlier this month Russia said it plans to sharply raise duties on imported cars to protect domestic producers [ID:nL7742937]. Moscow has also said it will review trade agreements with several countries including the United States, mostly on import duties.

Such plans seem in contrast to the communique signed by G20 leaders, including Russian President Dmitry Medvedev.

"We underscore the critical importance of rejecting protectionism and not turning inward in times of financial uncertainty," this weekend's G20 communique said.

However Russian deputy finance minister Dmitry Pankin said on Monday there was no contradiction.

"The wording is sufficiently fluid ... the formulation is careful," he told a press conference on the outcome of the G20.

"On trade barriers there was a call not to introduce new trade barriers, but no one said that anyone should scrap existing barriers or go back on existing decisions. There were no calls for this."

Pankin also said there was no contradiction between G20 and Russia on monetary policy. Russia has been raising interest rates in a bid to slow capital flight and support the rouble, while many Western powers have slashed rates to help growth.

-- For stories from the G20 meeting see [ID:nG7G8] (Reporting by Gleb Bryanski and Toni Vorobyova)

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