Russia will not lend to Europe

RUSSIA delivered a vote of no confidence yesterday in Europe’s approach to resolving its sovereign debt crisis, as the head of the International Monetary Fund visited Moscow to seek support.

German chancellor Angela Merkel has ruled out using gold and currency reserves or IMF special drawing rights to boost the eurozone bailout fund for fear of violating the independence of Germany’s central bank, which opposes such use of reserves.

Russian foreign minister Sergei Lavrov made it clear Russia would not be willing to lend directly to eurozone’s rescue fund, preferring to channel any support through the IMF.

Lavrov added that this was the joint position of the BRICS — Brazil, Russia, India, China and South Africa — who have accumulated trillions of dollars in foreign reserves to insure against external shocks.

Lavrov said in return for financial assistance, emerging markets wanted earlier agreements on “deep reform” to the IMF and the global financial system to be implemented.

Lavrov spoke before Christine Lagarde, making her first visit to Moscow since taking over as managing director of the IMF, met President Dmitry Medvedev at the Kremlin.