INDUSTRY GROWTH ALLOWS GOVT TO ALLOCATE EXTRA MONEY TO FEDERAL TROOPS IN CHECHNYA

MOSCOW, December 29 (AVN) -- The unified federal group in the North Caucasus is financed from the budget First Deputy Prime Minister Nikolay Aksenenko told a news briefing in Moscow.

And with the growth of industry and production the government has received some extra money to allocate for the needs of the army, he added. Aksenenko assured the journalists, that despite the war, the government was paying due attention to the economic problems of the republics of the regions, such as Dagestan, Karachaevo-Cherkessia, Kabardino-Balkaria, North Ossetia, Alania, Chechnya, Ingushetia, Postov region, Stavropol and Krasnodar territories.

A special role is given to the local defence industry enterprises. The government is positive that the production growth at these enterprises "will secure the economic development and growth of the region." The government will do everything possible to help the defence industry, Aksenenko stressed.

According to Deputy Prime Minister the previous forecasts which said the production will drop after the 1998 crisis have proven wrong. A the moment the production growth rate in Russia is 10 percent. Almost all the branches of the industry are developing.

Gas drilling has not reduced, oil drilling grew by one percent. The production of coal was 17 million tons higher than in 1998.

"This is very important, since the emerging Russian economy needs a lot of energy carriers," Aksenenko added.