ECONOMIC GROWTH IN RUSSIA IN 2005 TO TOTAL SOME 6%

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MOSCOW, December 29 (RIA Novosti) - Russian Economic Development and Trade Minister German Gref expects economic growth in Russia in 2005 to total some 6%.

"I guess in 2005 everything will be not bad in the economy. However, it would be a bit harder to ensure the necessary percent of growth," Mr. Gref told journalists on Wednesday.

He said next year would see an anticipatory growth of population incomes, which will make 10% in real terms. Public sector workers' wages and the monetary allowance of servicemen will be substantially raised, added the minister.

"Everything is rather stable in our country," concluded Mr. Gref. "Much will depend on the termination of possible negative tendencies and the speed of liberal transformations."

Among first-priority reforms, Mr. Gref named reduction of administrative barriers and support for small business. "It's necessary to give people economic freedom, allow them to work, unbind the hands of private entrepreneurs," said the minister.

Mr. Gref also said the government-submitted draft resolution on oil pipeline construction in the Eastern direction contained only a "principled decision about the construction."

"The ultimate route, terms, stages and all the rest will be defined after the clearing of the configuration of Yuganskneftegaz's acquisition by Rosneft.

"As regards Rosneft's accession to Gazprom, everything has been prepared," said Mr. Gref. "We will learn the configuration of Rosneft's transaction with Yuganskneftegaz, and depending on this we will further seek the scheme [of Gazprom-Rosneft merger]."

In the framework of the companies' merger, it's intended to conduct a transaction of exchanging Gazprom stock for Rosneft's.

All shares of Rosneft that will be exchanged for Gazprom shares on the balance of affiliates (10.7%) will be held by the gas concern.

After the exchange, the state's share in Gazprom will increase to 50% plus one share.

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