MACROECONOMICS

Minister of Finance of the Russian Federation Aleksei Kudrin considers that inflation in Russia should not exceed 3-5% a year, and the gain of money supply in circulation - 17-20%. (RIA NEWS)

“Or task is the rate to be 3-5% and credits to be long-term”, - he said on Tuesday at the meeting with fraction “Rodina”. Minister explained that credit rate could not be below inflation otherwise it is not profitable for banks. “We are crediting a real sector of economy by 10-15% for 3 years. It is all our investment climate”, - Minister of Finance noticed.

Besides Kudrin pointed out that in conditions of GDP gain by 6% sum of money in circulation should increase not more than 17-20% instead of present rates of money supply gain of 30-35% a year.

Minister also noted that if the whole stabilization fund is spent the gain of money in circulation would make up to 70%. For realization of these means there would be enough capacities, Kudrin said.

The State Duma considers today the project of the federal budget of Russia for 2007. The deputies must approve the budget costs on 11 points of the main financial law of the country. (PRIME-TASS)

Accordig to proposed by the government of the Russian Federation macroeconomic indicators incomes of the Russian budget for the next year are planned at 6 trln. 965,3 bln. rubles, costs - 5 trln. 463,5 bln. rubles. Proficiency will make 1 trln 501,8 bln. rubles. Budget costs in 2007 will increase more htan 1 trln rubles.

GDP in Russia in 2007 is predicted at 31,22 trln rubles, growth of consumer prices /inflation/ - at 6,5-8%, average rbl. exchange rate to the US dollar - 26,5 rubles/dollar, oil price – 61 dollars a barrel.

There were about 330 corrections among which the third part is connected with reduction of costs on the “State questions”. “These money it is better to direct to social costs”, - deputy of the Chairman of the State Duma Vladimir Pekhtin emphasized. Fraction “Edinay Rossia” offered to direct 4 bln. rubles for construction of nurseries.

Committee of the State Duma on budget and taxes approved some corrections< having increased costs on “National Defense” and “National Security”. The Committee also approved increase of costs on “National economy”, on household section, education, healthcare and sport, culture, cinema and mass-media. Minister of Finance of the Russian Federation Aleksei Kudrin named the budget-2007 “budget of investment into man, into the future generation”.

At the same time the volume of means increases considerably, directed to realization of the main national projects.

Besides the indexation of the salaries of the budget employees, which in a result will be up 15%, of the military men – 15% in the beginning of 2007 and 11% in autumn. Pensions will grow 20%, and on September,1^st, 2007 grants in the higher educational establishments will be up one and a half time.

MARKET’S GENERAL ESTIMATION

Reaction of the world stock indexes to nuclear tests in the Northern Korea was as a whole calm, however, gold prices increased 1,5% in London on a background of international intensity in Asia. Players expect confirmation of intentions of OPEC countries about drop in oil-production by 1 bln. barrels a day, that support oil prices. MICEX index was up 2,73% and was closed at 1427,24 points. RTS index grew 2,1% and was closed at 1587,59 points.

Leaders of growth on MICX were shares of oil-gas companies: Tatneft +5,31%, Surgutneftegaz +3,7%, LUKOIL +4,34%, Rosneft +0,1%, Gazprom +2,38%, Gazpromneft +2,11%. Nickel prices at tenders in London reached 19 years top, that promoted rise of NorNickel shares ((+1.75% on MICEX). Other blue chips on MICEX were as follows: JSC “UES” +2,56%, Sberbank +2,39%, MTS +2,77%, Rostelecom -1,38%. The volume of tenders in MICEX made $2370,05 million. In a classical section of RTS it was fixed at $34,0 mln.

GAZPROM.

On results of the first quarter, 2006 JSC Gazprom increased the volume of net consolidated profit more than 2.06 up to 190.899 bln. rubles in comparison with indicator of the same period of 2005 (92.397 bln. rubles).

Gazprom proceeds were up73% (246.596 bln. rubles) in comparison the same period, 2005 (339.181 bln. rubles) an made 585.777 bln. rubles.

The significant factor, affecting some indicators of the accounting report for 1 quarter, 2006 of Gazprom was purchase of JSC “Sibneft” in October, 2005 (since Jne, 2006 – JSC “Gazpronneft”).

For 3 months, 2006 net proceeds from gas sales increased 131.490 bln. rubles, or 47% in comparison the same period, 2005  and made 413.64 bln. rubles, that was caused by rise in prices on gas sales in Europe and CIS countries and also by growth of gas sales.

JSC shares yesterday consolidated near reached levels. Open positions from 10,5 are kept, protective stop-order can be placed at line of entrance.