MOSCOW -- Russia will be selling off some of its most precious jewels held in state reserves to help meet its foreign debt repayments, Finance Minister Alexi Kudrin said Sunday.

Moscow must pay back more than $17 billion in 2003, the minister pointed out, although he refused to say how many jewels and precious metals would in fact be sold, the Ria Novosti agency reported.

Kudrin said he did not expect the sales to have a negative influence on market prices.

Russia's total level of foreign debt stood at $128.3 billion as of April 1, 2002, meaning that this year alone it has to pay back around $14 billion.

Next year though the figure will rise by another three billion dollars to $17.2 billion.

Russia has already slashed its projected 2003 budget surplus by two-thirds, because of a slowdown in economic growth and increased government spending, to just 0.6 percent of gross domestic product (GDP), AFP reported.

But with debt repayments reaching a peak this year and in 2003, public finances are under extra scrutiny.

Russia's government endorsed the budget package on Thursday, and is to submit it to Parliament before August 26.

Political parties in the State Duma Lower House have traditionally sought amendments to obtain increased spending.

Last week Kudrin sought to reassure Russians about the nation's ability to repay its foreign borrowings next year and ruled out any default.

And it is within such guidelines that the gem sales have been proposed along with finance ministry hopes to raise large amounts of cash from wide scale government privatization.