FINANCE MINISTRY: BUSINESSES SHOULD HAVE TO CONVERT ALL HARDCURRENCY PROFITS.

The Russian finance ministry has urged thegovernment to force Russian businessmen to convert 100 percentof their hard currency profits into rubles, up from the 50 percentof such profits that they must convert now, FIA-Interfax reportedJuly 21. Such a requirement would increase the government’s hardcurrency reserves but weaken businesses that rely on hard currencyfor their operations. In a related development, the Russian taxpolice will now concentrate on private enterprises, rather thanon government enterprises, Kommersant-Daily reported July21. Somewhat ominously, the tax police have asked the interiorand defense ministries to help them out in this area.

Economics Ministry Admits Inflation Will Be Above Projections.