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Russia has no plans to increase foreign borrowing - FinMin

Tuesday, 2 Oct 2012 | 5:22 AM ET

MOSCOW, Oct 2 (Reuters) - Russia will not borrow more from foreign markets in coming years after raising $7 billion in Eurobonds earlier in 2012, Finance Minister Anton Siluanov said on Tuesday.

"We don't plan to increase borrowing on foreign markets," Siluanov told an investment conference organised by VTB Bank. "We are conducting quite a conservative policy."

The minister added that plans to borrow $7 billion abroad in each of the next two years were "modest".

After Russia's bumper bond placement in March of this year, the country's total public debt stands at just below 11 percent of the gross domestic product.

"We'll be participating more cautiously in the foreign debt market, so there are no swings, so we do not create pressure on the financial market," Siluanov said.

Russia also plans to cut its domestic borrowing in coming years as it eyes a balanced budget by mid-decade.

"It's important so our resources are not dispersed through the budgetary system," Siluanov said.

(Reporting by Katya Golubkova and Lidia Kelly; Editing by Douglas Busvine, John Stonestreet)

((lidia.kelly@thomsonreuters.com)(+7 495 775 1242)(Reuters Messaging: lidia.kelly.reuters.com@reuters.net))

Keywords: RUSSIA ECONOMY/SILUANOV