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    HIGH OIL PRICES WILL ACCOUNT FOR 2% OF GDP GROWTH IN 2004

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    MOSCOW, April 7, 2004 (RIA Novosti) - High oil prices will account for 2% of Russia's GDP growth in 2004, while the index will be decreasing in the following years, Gennady Kuranov, in charge of the macroeconomic analysis and forecasts of the Russian Economic Development and Trade Ministry, said Wednesday.

    The favourable market situation will contribute 2% of GDP to Russia's economic growth this year, while 0.25% will be inherited from last year (the accumulative effect), said Mr Kuranov.

    "In the years to come the effect of a favourable market situation will be subsiding and will go down to 1.2%-1.5% by 2007," said Mr Kuranov.

    Mr Kuranov recalled that GDP was expected to grow 6.4% in 2004 if oil prices were not lower than $27.5 per barrel. The 2005 economic development scenario envisages $26 per barrel.

    Last year, the favourable market situation accounted for 1.9% of the 7.3% of GDP growth, according to Mr Kuranov.

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