Putin defends current currency policy

MOSCOW, Feb. 27 (UPI) -- Russian Prime Minister Vladimir Putin Friday said he disagreed the country needed new currency controls to prevent devaluation of the ruble.

"It is possible in theory but it would mean abandoning ambitious plans of turning the ruble into a regional reserve currency," Putin said in a meeting with senior government officials, the Financial Times reported.

"It would be a shame to lose such an advantage," he said. "The crisis will pass and we need to create the basis for basis for future economic development."

Putin was answering a rising cry in Russian calling for currency controls. The central bank's devaluations have wiped out $200 billion from the bank's reserves, the Times said.

Since December, the bank has spent up to $10 billion a week to prevent the ruble from a hard crash.

In opposition, Vladimir Yakunin, the head of Russia's railways monopoly and Sergei Mironov, speaker of the upper house of parliament, have advocated for new controls to slow the flow of currency out of the country.

Putin said Friday the bank "acted in the only way that was right."

The 70 percent decline of the ruble in August 1998 "destroyed the people's trust in the authorities, and in their economic policy," he said.