Russia's Kudrin says NATO should become history

ST PETERSBURG, Russia (Reuters) - Russian Finance Minister Alexei Kudrin said on Saturday he believed that the NATO alliance should be consigned to history and called for better coordination between global financial institutions.

"Global institutions are reacting slowly to challenges, which exist today... But of course I don't mean such institutions as NATO. I think such institutions should become history," he told the St Petersburg Economic Forum, Russia's main annual event for foreign investors.

Kudrin, seen as one of the main liberals in the government, repeated earlier criticism made by President Dmitry Medvedev of international financial institutions, saying they needed major changes because they had failed to deliver in past crises.

Kudrin also said he was very cautious about the idea of creating any cartel-like organization in the gas industry.

"I'm very cautious when it comes to gas cartels. Cartels are not such institutions which can cut market risks..." he said.

Russia has the world's largest gas reserves and is the top gas producer.

Iran, the second largest holder of reserves, has called on Russia and other major gas producers to turn an informal gas countries club, known as the Gas Exporting Countries Forum, into a more formal body similar to the OPEC group.

Prime Minister Vladimir Putin, who was president at the time, described the proposal as an interesting idea. Government officials have since been cooler on the idea.