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The latest news and stories from Russia. Stay tuned for updates and breaking news on defense, politics, economy and more.

Morning re-cap of main news, August 27

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* A draft federal budget for 2007 projects a considerable increase in government expenditures on the social sphere and the national economy, Deputy Prime Minister Alexander Zhukov said

* The government hopes that inflation will not exceed 5% in 2008, Deputy Prime Minister Alexander Zhukov said

* Police found a cache full of ammunition in the Republic of Kabardino-Balkaria in Russia's troubled North Caucasus region

* President Vladimir Putin congratulated the Moldovan president with the 15th anniversary of the republic's independence

* President Vladimir Putin congratulated the Russian coal industry's workers and veterans with Miners Day

* Dagestani warlord Gadzhi Melikov was killed in a special operation in the Republic of Dagestan in Russia's troubled North Caucasus region

* Russian tennis player Nikolai Davydenko won the U.S. New Haven title Saturday, beating Agustin Calleri (Argentina) 6-4, 6-3

* Patriarch of Moscow and all-Russia Alexy II urged world religious leaders at the 8th Assembly of the World Conference of Religion for Peace in Kyoto, Japan, to counter terrorist attempts to exploit believers' feelings

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