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Russia's industrial production rose 10 percent in first seven months of 2000

MOSCOW — Industrial production grew by 10 percent in the first seven months of 2000, Prime Minister Mikhail Kasyanov told a government meeting Monday.

The growth figure confirmed that Russia's economy remains strong after more than a year of growth that has been spurred by high prices for oil and natural gas, key Russian exports. Kasyanov did not specify which sectors posted the strongest growth.

Russia's economy contracted for almost a decade before 1999.

Recent economic growth has some analysts concerned about new inflation. Kasyanov said the government would contain price rises by official decree if necessary.

Kasyanov also said the government wants to reform the state railroad and electricity monopolies, but must make sure that higher energy or cargo transport prices also don't ignite inflation.

The government "must not make any unfounded decision on raising tariffs to avoid stimulating inflation, while it has to carry out the restructuring of two natural monopolies,'' Kasyanov said.



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