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08/15/1998 11:47:38 Russian PM holds talks on financial crisis -agency

MOSCOW, Aug 15 (Reuters) - Prime Minister Sergei Kiriyenko

met his finance minister, the head of the central bank and the

Kremlin's chief debt negotiator on Saturday to discuss Russia's

economic crisis, Interfax news agency said.

They and other key ministers discussed ways to minimise the

effect on Russia's economy and financial markets of the latest

turbulence on world financial markets, the agency said, quoting

"informed sources in financial circles". The report could not

immediately be confirmed.

Anatoly Chubais, who represents Russia at talks with

international lenders, interrupted his holiday earlier on

Saturday to return to Moscow, Interfax said.

Plunging investor confidence sent Russian shares to two-year

lows on Thursday, pushed up treasury bill yields and put

pressure on the rouble.

President Boris Yeltsin, who has been on holiday in Russia's

northwest for most of a month, returned to the Moscow region to

continue his break there, the Kremlin said earlier on Saturday.

U.S. President Bill Clinton urged Yeltsin by telephone on

Friday to take quick, decisive action on the faltering economy.

Yeltsin and the central bank have ruled out devaluing the rouble

in response to the crisis.

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