Russia to prioritise retail, builders, banking

MOSCOW (Reuters) - Russia will not allow sharp volatility in the rouble rate and is prioritising emergency support for the retail, construction and banking sectors, First Deputy Prime Minister Igor Shuvalov said on Monday.

"We have chosen the three most important sectors for us -- retail, construction and the banking sector," Shuvalov told a press briefing.

He added that the government will be ready to spend up to 100 billion roubles ($3.70 billion) starting in November to buy up newly built apartments from construction companies.

"In the construction sector we may see a fall in demand...we decided to replace that with government demand," he said.

"We are gathering information on the housing that they are seeking to sell."

Echoing earlier comments made on Monday by Prime Minister Vladimir Putin [ID:nLR410480], Shuvalov said the credit crisis will not push Russia towards heavy-handed economic policy.

"We have no intention of taking a tighter grip over the private sector," he said.

He also reiterated the government's position that fluctuations in the Russian currency will not be tolerated. The central bank has been spending billions of dollars in reserves to prop up the value of the rouble in recent weeks.

To help ensure that Russia's energy companies keep their investment programmes on track, Shuvalov said that the government is discussing a tax stimulus for the oil sector.