RUSSIA'S PUTIN SAYS U.S. DEBT "OUT OF CONTROL," AND "UNCONTROLLED ISSUE OF DOLLARS" WAS "ONE OF THE TRIGGERS" OF GLOBAL CRISIS

SOCHI, Russia, September 18, 2009 - Russia’s Prime Minister Vladimir Putin on Friday said other currencies besides the dollar should be used as global reserves to reduce the risks posed by swelling U.S. debt.

Putin, who spoke at an international investment forum in the Black Sea resort of Sochi, chided the United States for “an uncontrolled issue of dollars” and said the American currency’s dominance had been “one of the triggers” of the global crisis.

Putin renewed Russia’s call on the U.S. administration and global community to give the green light to alternative reserve currencies: “If there are several reserve currencies, this will not harm the U.S. economy in any way.”

President Dmitry Medvedev’s economic advisor, Arkady Dvorkovich, said Thursday that Russia would at next week’s G-20 summit in Pittsburgh press for more follow-throughs on measures to confront the global downturn and to change Western-dominated international financial institutions.

Russia and China have pushed for alternative reserve currencies, but being the world’s largest holders of U.S. dollar assets — such as Treasuries — they are unlikely to abandon it. Dvorkovich stressed on Thursday that Russia is not out to replace the dollar, but only diversify.