MOSCOW. Sept 8: The Russian Federation's Economics Minister pledged Saturday to allow free trading of the Soviet Rouble on world markets next year, the Interfax news agency reported, says AP.

“No matter how hard and painful the move will be, the Rouble will be made convertible tn 1992." the independent news service quoted Evgeniy Saburov as saying.

Saburov, speaking to Western business leaders and economists, said he could not give a date for the conversion.

At the same meeting of the World Economic Forum, former Soviet Foreign Minister Eduard Shevardnadze warned that demagogues might exploit economic hardship, resulting in more threats to democracy, Interfax said.

Shevardnadze quit President Mikhail S. Gorbachev's government in December, saying he feared the country was sliding toward

dictatorship under pressure from hard-liners opposed to Gorbachev's reforms. Those reforms include efforts to change the Soviet Union's centrally run economy to a market system..

The Rouble is worthless outside the Soviet Union. It is not freely traded on International currency markets for so-called 'hard' currencies such as US Dollars, German Marks and Japanese Yen.

Changing this would reduce the value of the Rouble, as artificially set exchange rates in the Soviet Union would be eliminated and currency traders would pay whatever they thought the Rouble really was worth.

The result would be higher costs for Soviet consumers and businesses buying goods of □uipment from the West, itch are already tn short supply and very expensive for Soviets.

The collapse of the Soviet

economy already has reduced the rouble's buying power and spawned a complicated system of exchange rates. The official rate, used for much international commerce. Is 1.77 Dollars per Rouble. ’

Saburov appeared to be speaking on behalf of the Soviet government. Although his Russian Federation is one of 12 republics In the Soviet Union, it is the largest republic and has played an increasingly strong role In setting national policy since Its President, Boris Yeltsin, emerged a hero after the failed Aug 18-21 coup against Gorbachev.

Saburov and Shevardnadze addressed the closing session

Another speaker. Russian Prime Minister Ivan Silayev, said the greatest obstacle to transforming the economy was the 'psychology of the Soviet people. We will have to make strenuous efforts to change their way of thinking,' he said.