Russian President Dmitry Medvedev said on Friday that his country had stabilized its financial system, but warned that the world was still in the middle of an economic downturn.

Russian President Dmitry Medvedev speaks during a plenary session of the St. Petersburg International Economic Forum, the country’s top business forum, in St. Petersburg, Russia, on June 5, 2009. (Xinhua/Lu Jinbo)

“I believe we have avoided the worst case scenario,” he told the audience of business leaders and government officials.

“The leading financial markets have shown signs of recovery, prompting some analysts to conclude that the crisis has hit its bottom and its most difficult phase is coming to an end,” Medvedev said.

“In my opinion, it is too early to open the champagne,” he said.

The president said the crisis had indicated Russia’s excessive reliance on energy exports and its under-developed financial system, adding that the country also faced major challenges such as soaring inflation and a lack of long-term funds.

Medvedev also reiterated his hopes that the Russian ruble would become a regional reserve currency and a supranational reserve currency be created in the future.

VietNamNet/Xinhuanet