Financial markets in Russia have experienced another sharp drop in value despite government efforts to encourage investment and United States support for extra international funding.

The index of share prices fell by more than ten per cent during the day to stand at its lowest level for nearly two years.

The Prime Minister, Sergei Kiriyenko, has been talking to western bankers in Moscow about how to alleviate the situation, but no details have emerged as yet.

However, the White House in Washington said the United States had no doubts about the underlying strength of the Russian economy.

Yesterday, President Clinton said he supported the idea of extra World Bank or IMF loans being given to Russia to ease its financial burdens.