UPDATE: Officials: China’s stock mkt fall may have no impact on Russia

(Adds comment of Putin’s spokesman in last two paragraphs)

UFA, Jul 8 (PRIME) -- Economic Development Minister Alexei Ulyukayev said Wednesday he hopes that Chinese authorities will get over difficulties on the country’s stock market and the current downturn will not hit Russia.

“I believe that Chinese colleagues – the People's Bank of China and regulatory authorities – will cope with this situation. It must not reach such scale that may threaten our projects, our investment and our foreign trade,” Siluanov told reporters.

China’s Shanghai Composite Index fell 32% from mid-June, while the Shenzhen Composite Index fell by 41% in the period.

In order to stabilize the situation, the People's Bank of China, the country’s central bank, has already decreased interest rates and also decided to consider suspending initial power offerings.

Russian President Vladimir Putin is sure that China is capable to smooth out exchange rate fluctuations on the back of the country’s stock market fall, Putin’s spokesman Dmitry Peskov said.

“President Putin has expressed absolute confidence that China’s leadership has a necessary potential to take measures and make decisions to smooth out these fluctuations on the market,” he said.

End