November 18, 2008 / 4:05 PM / 9 years ago

UPDATE 1-Russia's Medvedev: crisis has spread to real economy

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IZHEVSK, Russia, Nov 18 (Reuters) - Russian President Dmitry Medvedev said on Tuesday that the global financial crisis has spread to the real economy, and that the many sectors that need state aid will get it.

“Today it is clear that the crisis is spreading, unfortunately, from the financial sector into the sectors of the real economy,” Medvedev told reporters.

“Every industry is affected in its own way. It is impossible to say that one among them is sitting pretty and will not get state money,” he said.

Russia is pushing ahead with a $200 billion state aid package, and the central bank has spend tens of billions of dollars propping up the local currency in recent weeks as investors pulled money out of the country and its stock markets.

Medvedev added that some sectors vying for state assistance had been heavily leveraged before the onset of the credit crisis.

“In a number of cases we are having to help industries that were living on debt, for example the retail sector,” he said.

The comments were notably more downbeat than previous ones made by Medvedev, who has sought to reassure investors and the Russian public by saying the crisis could pass Russia by and will allow it to emerge stronger on the world stage. (Reporting by Denis Dyomkin, writing by Simon Shuster; editing by Patrick Graham)

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