TAKE STATE SECURITY INTO ACCOUNT AS SVYAZINVEST IS PRIVATISED, CALLS ECONOMY VICE-MINISTER

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MOSCOW, September 27 (RIA Novosti) - Defence and state security interests must be taken into due account in Svyazinvest privatisation, stressed Andrei Sharonov, Deputy Minister of Economic Development and Trade. He was addressing a conference, Russia: Investment in the Progress Economy.

"If we turn to problems related to Svyazinvest privatisation, issues arise here that pertain to defence and state security-the Svyazinvest is a communications monopoly, and has long been working on government contracts in those fields," he said.

The company is to be sold out, on the one hand, and defence and security interests must be preserved, on the other. A balance is to be made between the two, pointed out Mr. Sharonov.

He next took up prospects to reform the Gasprom by dividing its monopoly and competitive activities. The matter stays on the agenda. His ministry approves merger prospects of the Gasprom and the Rosneft petroleum mammoth, as well as moves to liberalise the Gasprom stock market.

That is good news-the arrangement will promote capitalisation of the Gasprom and the entire Russian stock market. However, the ministry sticks to its opinion of natural monopolies to be reformed through dividing monopoly and competitive activities. The matter ought to remain topical, emphasised the deputy minister.

The Ministry of Economic Development and Trade is calling to toughen punishment for anti-monopoly laws trespassed, Mr. Sharonov went on, and mentioned relevant legislative amendments being drafted.

In particular, the amount of fines is to depend on damage done, the way it is in the West. Meanwhile, Russian fines make token sums incomparable to the damage.

Next, there is an initiative to increase to three billion roubles, roughly US$100 million, the threshold cost of corporate assets-a minimum sum that gets merger transactions under anti-monopoly agencies' control. The reform will cut the number of controlled transactions twelve-fold against the present-day, on ministerial experts' estimations, as control will concern only big deals, said Andrei Sharonov.

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