Energy, imbalances in spotlight at G8 finmins meet

ST PETERSBURG, Russia, June 9 (Reuters) Nurturing the world economy at a time of high oil prices and rising inflation was set to be the main talking point as finance ministers from the Group of Eight nations gathered for talks on Friday.

The two-day meeting in Russia's second city St Petersburg kicks off the run-up to the G8's annual summit here from July 15-17 that will mark the climax of Russia's first turn chairing the group.

But with central bankers absent and Russia yet to win full status in the deliberations of the established finance ministers' G7, there will be no debate on currencies especially on how far the U.S. is willing to see the dollar weaken.

The meeting's closing communique will address economic ''imbalances'' -- policy jargon for the huge U.S. current account deficit and Chinese trade surplus -- according to a draft text seen by Reuters.

The communique says global economic growth is increasingly broad-based, but that high and volatile oil prices, plus widening imbalances, remain a threat that must be tackled.

The text, which is due be signed off in St. Petersburg on Saturday by finance ministers from the United States, Canada, Japan, Germany, France, Italy, Britain and Russia, says tackling these risks is a shared responsibility.

Outgoing U.S. Treasury Secretary John Snow, standing in for yet-to-be confirmed nominee Henry Paulson, meets his Chinese counterpart -- attending outreach talks with emerging nations -- and have a chance to press the U.S. case for a stronger yuan.

Alexei Kudrin of hosts Russia will also hold a briefing with World Bank head Paul Wolfowitz on Friday, which should give an update on progress on Third World debt relief and proposals to integrate emerging nations into the donor community.

ENERGY CONTROVERSY President Vladimir Putin put energy security at the top of his G8 agenda, hoping to leverage Russia's role as the world's No.2 oil exporter and supplier of a quarter of Europe's gas into greater international influence.

But Russia's G8 year has been dogged by controversy from the outset after gas monopoly Gazprom turned down the taps in a pricing row with Ukraine, disrupting exports to Europe for the first time in four decades.

Europe scrambled to seek alternative supplies, while U.S.

Vice President Dick Cheney accused Russia of using energy as a tool of ''intimidation and blackmail'' against its neighbours.

Tempers have cooled of late, and the debate has moved towards finding ways to implement the International Energy Charter, a document signed but not yet ratified by Russia which calls for open access to energy resources and pipelines.

Kudrin this week ruled out breaking Gazprom's export monopoly and said the energy charter needed a lot more work done on it before Russia would be ready to implement it.

Gazprom, meanwhile, continues to eye assets in Europe -- with speculation rife in Britain that it will soon mount a bid for the country's largest gas distributor Centrica .

Premier Tony Blair said this week the free market should be allowed to decide on such takeovers as long as the interests of consumers are safeguarded -- a position reiterated by a British government spokesman.

''Were Gazprom to make a bid it would go through the established regulatory process. Security of energy supply for UK consumers is paramount,'' the spokesman said.

Reuters PV BST1729