(AFP) – Jun 7, 2008

SAINT PETERSBURG (AFP) — Russian President Dmitry Medvedev on Saturday blamed Western countries for the world's current economic woes and said Russia's vast energy reserves could be part of the solution.

Speaking at a meeting of high-powered business executives in Saint Petersburg, Medvedev said the United States was behind a global credit crunch and that other countries had caused a food crisis by investing in biofuels.

"It is precisely the gap between the United States' formal role in the world economy and its real capabilities that was one of the key reasons for the current crisis," said Medvedev, who came to power last month.

"Russia is a global player. We understand our responsibility for the fate of the world and want to participate in forming the rules of the game, not because of so-called imperial ambitions, but because ... we have the resources."

He said that while Russia was helping to boost global energy security by developing its energy sector, its partners had concentrated on investment in biofuels, inflating food prices around the world.

The speech was being closely watched for signs of Russia's future economic strategy under Medvedev, who took over as Kremlin chief last month after Vladimir Putin's eight-year presidency.

Medvedev is seen as an economic liberal and since coming to power he has launched several initiatives to boost the rule of law, cut down on corruption and ease conditions for small businesses.

Russia's economy expanded steadily under Putin -- who remains a highly influentual figure in the Kremlin as prime minister -- on the back of soaring energy export revenues.

But it has recently shown signs of overheating and there is growing concern about risks for foreign investors.

The world's biggest energy power has nevertheless been cushioned from the global credit crisis by high oil prices and the hosting of the forum in Saint Petersburg allowed Russia to present itself as a pillar of economic stability.

A key issue on the fringes of the forum was the future of TNK-BP, a Russian-British oil company riven by infighting between BP and its Russian partners, and also facing tax probes by the Russian authorities.

"The resolution of this dispute... will send a very strong signal, positive or negative, about the environment for investment in Russia," Andrew Somers, head of the American Chamber of Commerce in Moscow, said at the forum.

Robert Dudley, the chief executive of TNK-BP, said on the sidelines of the meeting that the company's problems would be resolved "within days," Russian news agencies reported.

Dudley was due to address the forum on Sunday as part of a line-up of energy leaders, including the heads of BP, Chevron, ConocoPhillips, ExxonMobil, Shell and Russian gas giant Gazprom.

Contracts worth more than 12 billion dollars (7.7 billion euros) are to be signed at the meeting, where there will also be a presentation of the new Saint Petersburg Commodity Exchange, due to start trading oil later this year.

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