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Deripaska: Market slump after Fed stimulus wind-back hint 'emotional'

By Irene Chapple, CNN
June 21, 2013 -- Updated 1732 GMT (0132 HKT)
STORY HIGHLIGHTS
  • Deripaska has dismissed the markets rout following the Fed's stimulus announcement this week as "very emotional"
  • Deripaska said the reaction on Russian markets was "disproportionate" to the country's economic situation
  • The Fed's hints it would dial back its cheap money program come as Russia expects a loosening of economic policy

(CNN) -- Russian billionaire Oleg Deripaska has dismissed the markets rout that followed the Federal Reserve's suggestion it would wind back its stimulus program later this year as "very emotional."

Deripaska, speaking to CNN at the St Petersburg International Economic Forum, said the reaction on Russian markets -- which included a 4% drop in stock prices -- was "disproportionate" to the country's economic situation.

Deripaska also played down the significance of Russia's pledge to crack down on tax evasion as part of an agreement with other G8 leaders.

Russia: We can survive if Fed winds down stimulus

Deripaska, who Forbes estimates to be worth $8.5 billion, told CNN the Russian president's plans "wouldn't change anything for us."

The comments were "sort of warning...keep paying taxes," he said.

CNN Twitter chat: Africa on the rise as BRICs fall?

Are Russian interest rates too high?

The Fed's hints it would dial back its cheap money program come as Russia expects a loosening of economic policy under its new bank head, Elvira Nabiullina.

At 8.25%, the country's interest rate is high for developing economies and, according to Deripaska, the new leadership will help restructure the country's financial sector. His views echo those of VTB president Andrey Kostin, who earlier told CNN interest rates were too high. Kostin said he expected a change in focus of monetary policy, to become more "relaxed."

Deripaska said the country produced enough raw materials but now needed to invest money in processing. "Russia has a lot of opportunity inside Russia to grow," he said.

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