"It is a clear signal to the Government as well as to the countrys authorities at all levels. It shows that business has a negative view of the current investment situation and general economic climate in Russia," Mr. Sharonov said in an interview broadcasted live by the Mayak radio station.

In his opinion, it is highly important for the Government to m

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ake prompt decisions capable of assuring investors that Russia is vitally interested in creating favorable investment conditions.

To this end, the Cabinet is going to consider a draft of a new anti-monopoly law at its meeting in the second half of December.

The Deputy Minister emphasized the importance of adopting the new law. "Our economy remains highly monopolized, and the situation has changed little since the Soviet era," he added.

To prove his point, Mr. Sharonov referred to the recent hike in gasoline prices in Russia. According to him, it was a collusion of local producers, not the high world oil prices, that was behind the hike.

The new law, the Deputy Minister argues, will introduce new mechanisms of the anti-monopoly control and provide for harsher penalties for non-compliance.

At present, the base unit in calculating a penalty for violations of the anti-monopoly legislation is the minimum wage. The new law provides for levying penalties proportional to corporate cash flows.

"A penalty of 2 percent of a companys turnover is a serious punishment even for very rich companies," Mr. Sharonov pointed out.

MOSCOW, December 4 (RIA Novosti)