OREANDA-NEWS. The markets of gas and electric power will be liberalized by 2011, Head of the Ministry of Industry and Energy of the Russian Federation Victor Khristenko, who was quoted by the representative of the ministry on Wednesday, declared.

According to Reuter, the last week Prime Minister Mikhail Fradkov has charged to finish positions of departments concerning fuel balance and tariffs for electric power and gas adjustable by the state and to discuss them at the session of the government on Thursday in response to criticism from the President Vladimir Putin.

Analysts say that authorities doubt of expediency of increase in tariffs which is fraught with dispersal of inflation during parliament-presidential elections 2007-08, despite of arguments of monopolists requiring investments.

According to the Head of the Ministry of Economic Development and Trade Gherman Gref and Khristenko, on Thursday at the session of the government the Ministry of Economic Development and Ministry of Industry will offer smooth increase of the domestic gas prices by more than twice by 2011: above $100 for a thousand cubic metres.

"The domestic price, which should be smoothly reached by 2011, will be below external approximately by 40 % in view of export duty and logistics. 100% liberalization of the market of electric power till 2011 "is necessary also”, Khristenko considers.

Gref informed on the eve that process of increase of gas tariffs is planned to be conducted stage by stage within five years.

According to him, the level of $125 for a thousand cubic metres in the home market is equilibrium from the point of view of cost of gas in the European market, taking into account 30 % export duty.

Till now officials have been discussing an opportunity of increase of domestic gas prices up to $90 for a thousand cubic metres by 2010 from current $45.