“The groups’ composition has not yet been defined. The Baltic and Northern are still counting their capabilities,” said the commander-in-chief who is taking part in an operational-mobilisation training exercise with navy executives in St Petersburg, RIA-Novosti reported.

The transfer of the Navy personnel to the contractual basis will be completed in 2007, Vladimir Kuroyedov said. “I believe that submarine forces will be transferred by 90% in 2006. Surface vessels will be transferred by 80% in 2007. This will be quite enough”, the commander-in-chief said adding that the Navy would still need compulsory military service.