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Foreign labor quota could trigger price hikes - official

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MOSCOW, January 16 (RIA Novosti) - Russia's deputy prime minister said Tuesday that authorities must work to avert possible price hikes for staple goods after a ban on foreign labor in the retail trade sector enters into force this spring.

As of January 15, the number of foreigners allowed to work in outdoor clothes and food markets has been reduced to 40% of the overall workforce. Beginning April 1, 2007, they will be barred entirely, a move designed to bring order to the sector and curb a wave of ethnically motivated crimes in the country.

Speaking at a Cabinet meeting devoted to the problem, Alexander Zhukov said: "Our objective is to prepare for the changes, to prevent a goods shortage, the shutdown of marketplaces and consequently a possible price hike for staple products, above all food."

Some experts say the measures are discriminatory. They could affect relations with members of the Commonwealth of Independent States (CIS), a union of 12 ex-Soviet republics, which provide Russia with most of its foreign labor force, and prompt more race-hate attacks.

Authorities in Russia, which is suffering a sharp population decline, also moved to streamline registration proceedings for guest workers, the main labor force in many industries, primarily the booming construction sector, but limited the number of issued job permits to no more than 6 million a year.

The Federal Migration Service said last year that over 20 million people come to Russia every year as part of a post-Soviet "migration boom," and that half of those are in the country illegally.

The amendments, effective as of Monday, allow migrants to register on arrival in Russia at post offices by filling out a form and paying a 1,000-ruble (about $38) tax. The job permit, which is valid for one year and can be extended, must be issued within 10 days, compared with three to six months previously.

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