DRAFT DECREE ON SVYAZINVEST PRIVATIZATION READY

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MOSCOW, March 15 (RIA Novosti) - Next week the Russian Economic Development and Trade Ministry and the Information and Communication Ministry will submit to the cabinet a draft decree on the privatization of Svyazinvest, Minister German Gref has said to journalists.

"The draft decree has been agreed upon. I think that we and the Communication Ministry will submit it next week or later this week to the government and then for presidential endorsement", Mr. Gref said.

He believes that Svyazinvest may be put in private hands already this year. "Everything depends on the time of signing the decree", he said. "If it happens promptly, we have a chance".

The decree will not fix the size of the Svyzinvest package, the economic development minister added. "The size will not be in question. The decree only permits privatization", he explained.

Asked what package is intended for sale, Mr. Gref said: "So far, we proceed from selling the entire package (75 percent minus one share)".

Commenting on the course of privatization this year and reports on canceling some auctions, the minister said: "Selling prices on some facilities are being ascertained".

"There's no massive cancellation of auctions", the minister said. "Only some updating has to be done".

As reported earlier, the auctions scheduled for March 16 to sell state blocks of shares of the Far Eastern Maritime Shipping Company and the Gorky Film Studio have been cancelled.

Mr. Gref also said that inflation in Russia over nine days of March is 0.3 percent.

As he forecasts, on results of this month the growth of consumer prices will be 0.8 percent.

In March last year inflation also stood at 0.8 percent.

On results of the first two months of this year, the growth of consumer prices was 3.9 percent.

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