TERMS OF INTRODUCTION OF COMMON RUSSIAN-BELARUSSIAN CURRENCY TO BE NAMED IN FEBRUARY 2005

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MINSK, December 21 (RIA Novosti) - Russia and Belarus are to form their positions on the terms of the introduction of the common currency of the Union State by mid-February 2005, Russian Prime Minister Mikhail Fradkov said following the session of the Union's Council of Ministers.

"This issue is under permanent control. A working group has been formed with account for the introduction of amendments and more detailed examination of the issue," Mr. Fradkov said.

"The terms outlined earlier are not adjusted," the premier stressed.

In mid-2004 Russian and Belarussian Presidents Vladimir Putin and Alexander Lukashenko agreed to introduce the ruble as the Union's common currency not in 2005 as its had been formerly planned but in 2006. In this connection the plan to adjust the terms of the common currency introduction was worked out.

By the end of the year Russia and Belarus are to make decisions on the volumes and prices of the Russian gas supplies.

"We have decided on the volumes and gas prices correspond to the price mentioned in the 2004 contract," Mikhail Fradkov noted.

He promised that the Russian gas prices would not be increased in 2005.

"We have not achieved an agreement on gas prices with the Belarussian side but the year 2005 is coming and we have to solve this problem as soon as possible," the Russian prime minister said.

In 2004 the price of the Russian gas was $46.68 per 1,000 cubic meters of gas while the Belarussian side offered $39.56 in 2005.

Speaking about the supplies of Russian oil, Mr. Fradkov said that this major issue would be settled by the end of the year.

In 2004 the Russian economic growth will be 6.8-6.9% and industrial growth - 6.3-6.4%.

"Inflation will be higher than planned and we shall examine the causes of this," Mikhail Fradkov added.

According to him, in 2004 the income of the population will grow by 9%.

"This year we have achieved progress on all macroeconomic indices and state the stability of Russia's macroeconomic development," the prime minister said.

"This lets us fulfill the task of the GDP doubling," he emphasized.

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