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Russia's special economic zone agency head leaves post - 1

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(Updates source, recasts, adds paragraphs 2-7)

MOSCOW, September 12 (RIA Novosti) - Yury Zhdanov has left his post as the head of the Federal Agency for Special Economic Zones, the government press service said Tuesday.

The press service said Prime Minister Mikhail Fradkov had signed the order Monday to relieve Zhdanov of his role overseeing a high-profile project to establish six special economic zones in Russia by the end of 2007. The areas should provide companies, some of which could be foreign firms, with customs and tax breaks of up to 20 years in a bid to boost the country's economic performance.

A government source said Zhdanov, who will turn 43 on Friday and was appointed as the agency's head in July 2005, had asked to step down. "He himself wrote a request asking to be relieved of his duties," the source said.

And the agency's press secretary also moved to quash speculation that Zhdanov had been fired.

"This [dismissal] is not because Zhdanov failed to cope with his duties," Irina Volina said. "He was invited to launch a project on special economic zones. The project has been launched, the zones operate, and now Zhdanov is changing his job."

Volina declined to specify which post Zhdanov might assume, but did say he had been offered several proposals, including continuing within the state's service.

Olga Markova, who is in charge of tourist recreational zones, has been made acting head of the agency.

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