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You won’t find any prices in dollars or euros in Russia soon

Date: 2006-05-25

(Itar-Tass) - The State Duma on Wednesday passed the first reading of a draft law according to which all price tags for goods, works and services in Russia have to be only in roubles, not in a foreign currency.

“Basically this must lead to a ban on consumer information about the price of goods in foreign currencies or conventional units,” lawmakers said.

The document also amends advertising and mass media laws by imposing a ban on the use in mass media and on the Internet of information about the price of goods and sums of transactions, as well as budget parameters in foreign currencies.

The draft law prohibits top officials, including public servants, members of the Federation Council (the upper house of parliament), and the State Duma (the lower house) from mentioning sums in foreign currency in public speeches.

Top and high-ranking official will have to mention only roubles in economic and financial presentations. Otherwise they will face penalties of up to 40-50 minimum wages. One minimum wage is 1100 roubles.

Relevant changes in the Law on the Protection of Consumer Rights have been in effect for more than a year, but the situation has not changed, Reznik said.

Providers continue to price their goods, works and services in “conventional units”, especially in the telecom, tourist, trade and other sectors.

Prices in roubles may be duplicated in “conventional units”. “Conventional units” may stand for U.S. dollars or euros.

The pro-presidential United Russia party said the socio-economic situation would improve if the government stops calculating federal budget revenues and expenditures in foreign currency.

State Duma speaker Boris Gryzlov also supported the Public Chamber‘s initiative. “The rouble is stronger than the dollar and the euro, this is a reliable currency,” he said. “The rouble is the currency unit, which should be used for calculations throughout Russia.”

Gryzlov stressed that the rouble should become a currency respected around the world.

In reply to a query about supporting the initiative legislatively, Gryzlov said it was not a matter for discussions for the time being. However, he believes that the issue needs to be discussed widely.

The head of the Duma Committee on Constitutional Legislation, Vladimir Pligin, said, “Since public trust in the national currency is growing, which has been called the strengthening of the rouble, relevant amendments to existing laws would be timely.”



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