Russia's Putin says ruble should be kept from rising to protect economic recovery

NOVO-OGARYOVO, RUSSIA — Russian Prime Minister Vladimir Putin said Friday that the ruble should not be allowed to rise to the level it reached before the economic crisis hit last year, as a stronger currency would weaken the country's recovery.

"We must revive our macroeconomics — lowering inflation and not allowing a strengthening of the national currency, as was the case in previous years," Prime Minister Vladimir Putin said at a meeting with Russian experts at his residence ourtsiode Moscow.

Russia is facing its first recession in a decade, with gross domestic product down by an annual 10.9 percent in the second quarter of the year.

The ruble has lost some 25 percent of its value since last summer. It has regained some of its losses in the past months but has remained under intense pressure amid talk of a potential devaluation.

A Russian lawmaker last month suggested the currency be allowed to depreciate by 30-40 percent to help Russia through the crisis. Analysts have warned against such a move, saying that the ruble is currently fairly valued in foreign exchange markets.

Putin also warned that the number of operating banks may shrink in the short term, leaving fewer but more stable lenders. He added that this would be a "positive development that would allow citizens to have more confidence in our financial institutions."