Russia says cut investments in US agency debt by 40pct

MOSCOW, July 31 (Reuters) - Russia has reduced its investments in U.S. agencies' debt by about 40 percent since January 1 2008, central bank First Deputy Chairman Alexei Ulyukayev said on Thursday.

"This is an additional measure of precaution which the central bank, as a conservative institution, is taking, although we understand there was no risk there," Ulyukayev told the Ekho Moskvy radio station.

Russia held about $100 billion in U.S. agencies Fannie Mae FNM.N and Freddie Mac FRE.N and Federal Home Loan Banks at the start of 2008. Russia said earlier this month it had cut exposure to Fannie Mae and Freddie Mac debt to less than $50 billion. (Reporting by Gleb Bryanski, editing by Guy Faulconbridge)