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    SOURCE IN RUSSIAN GOVERNMENT EXPLAINS PECULIARITIES OF CABINET OF MINISTERS' NEW STRUCTURE

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    MOSCOW, March 10, 2004. (RIA Novosti) - The heads of the newly created federal services in the new structure of the Russian government will be appointed by ministers, a source in the Cabinet of Ministers told RIA Novosti on Wednesday.

    "Deputy ministers and the heads of appropriate structures will also be appointed by ministers," the source said.

    Earlier, deputy ministers were appointed by the chairman of the government, he said. "Now, this will be the prerogative of the ministers. This shows that the minister will be personally responsible for everything that is going on in his ministry," the source said.

    Yesterday, the Russian President signed a decree under which the government would have a three-layer structure: ministries, federal services and federal agencies.

    According to the source, it is not yet known who will concretely head the newly formed services. However, he did not exclude that some ministers, who had lost their portfolios may be put at the head of the newly established services.

    About 30 federal services and approximately the same number of agencies will be formed in the new structure. The services will have controlling and supervising obligations.

    The agencies will render state services and manage state property. They will perform the functions of state clients in federal targeted programmes. The financing of appropriate budgetary organisations will be done also through them.

    All federal services and agencies will be divided according to their specialities and will be subordinate to appropriate ministers. For example, the Federal Tax Service will be subordinate to the Finance Ministry; the Federal Customs Service, the Federal Agency for Tariffs and the Federal Agency for Managing Federal Property will be subordinate to the Ministry of Economic Development and Trade; the Federal Inspection Service in the Sphere of Man's Wellbeing and the Consumer Market will be subordinate to the Ministry of Public Health and Social Development.

    And only two services, for anti-trust policy and for financial markets, will be subordinate to the chairman of the government.

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