THE INCREASING ROLE OF THE RUSSIAN STATE IN THE ECONOMY COULD BE DISCUSSED WHEN THE COUNTRY HOSTS THE SUMMIT OF THE GROUP OF EIGHT (G8) NATIONS IN JULY, A SENIOR GERMAN GOVERNMENT OFFICIAL SAID ON SUNDAY. GERMAN DEPUTY FINANCE MINISTER THOMAS MIROW, SPEAKING TO REUTERS ON THE SIDELINES OF THE ANNUAL MEETING OF THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT, SAID THE EBRD MEETING WAS NOT A PROPER FORUM FOR SUCH A DEBATE. MIROW SAID ISSUES SUCH AS ENERGY PRICE DISPUTES BETWEEN MOSCOW AND ITS NEIGHBOURS, OR WIDER QUESTIONS OF POLITICAL AND ECONOMIC REFORMS, WENT BEYOND THE EBRD'S MANDATE. "THIS IS A VERY FUNDAMENTAL AND OVERARCHING DEBATE EXCEEDING THE FRAMEWORK OF THE EBRD. IT WILL BE THE TOPIC OF THE G7 AND G8 SUMMIT," HE SAID. THE DEVELOPMENT BANK SAID THIS MONTH THAT BY 2010 IT WILL CEASE TO INVEST IN EIGHT CENTRAL AND EASTERN EUROPEAN COUNTRIES THAT JOINED THE EUROPEAN UNION IN 2004, AND SHIFT ITS ACTIVITIES TO RUSSIA, THE BALKANS AND FORMER SOVIET REPUBLICS IN THE CAUCASUS AND CENTRAL ASIA. IT HAS SAID RUSSIA, AWASH IN WINDFALL PROFITS FROM OIL EXPORTS, STILL NEEDS HELP IN DEVELOPING ITS INFRASTRUCTURE AND MARKET INSTITUTIONS. IN AN INTERVIEW DUE TO APPEAR IN THE MONDAY EDITION OF FRENCH NEWSPAPER LA TRIBUNE, EBRD PRESIDENT JEAN LEMIERRE SAID RUSSIA HAD TO ENSURE A BALANCE BETWEEN OPENING UP ITS MARKETS AND THE ROLE OF THE STATE IN THE ECONOMY.
