G-8 Ministers See Threat From High Energy Prices

ST. PETERSBURG, June 10 -- Finance ministers from the world's most industrialized nations said Saturday that global economic growth remains strong, but that high energy prices and global imbalances pose continuing dangers.

U.S. Treasury Secretary John W. Snow said the United States was upbeat on the state of the world economy. "We see no major crises, no major economies in recession, we see strong growth and inflation well-contained," he said at a news conference. "That's a commendable set of results."

The finance ministers from the world's most industrialized nations, meeting ahead of next month's summit of leaders from the Group of Eight, said global growth "is gradually becoming more broadly based," but risks remain from "high and volatile energy prices" and widening global imbalances, including the U.S. trade deficit and China's trade surplus.

The ministers' statement did not refer to the inflationary pressures that led several central banks around the globe to raise interest rates this week, but at a news conference after the meetings, Thierry Breton, French finance minister, said inflation was "clearly under control."

Russia, which is leading the G-8 for the first time, has been resisting pressure form the European Union to ratify the Energy Charter, a pact designed to provide a mechanism for crafting predictable market conditions for producers and consumers.

The document would require Russia to open its export pipeline network and other energy assets to foreign investors. Russian Finance Minister Alexei Kudrin reiterated Russia's call for the charter to be overhauled.

Russia's push for accession into the World Trade Organization has been stymied by disputes with the United States over demands for more open financial markets and other issues. But Snow said Saturday that progress had been made and the two nations could reach a deal by next month's summit.

Russia, the world's second-largest oil exporter after Saudi Arabia, has been bolstered by windfall profits from record world prices.