The OSCE (the largest European monitoring group) sent almost 400 observers last time. The issue of foreign observers has become a source of friction between Russia and the West after Russian authorities cut the numbers right down for the parliamentary election last month.
This, along with delays to visas and restrictions on what could be said publicly about the conduct of the election, led the OSCE to abandon its mission to Russia.
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Further cutting of the foriegn monitors will only increase Russia's headbutting with the Western world. Most foriegn monitors wonder if its even worth the hassel this time. There is not really a struggle in the elections. It is clear that Medvedev will win president and Putin will for Prime minister. So why go through all the trouble of Visa's and what not?
Other than the already known outcome, Only 70 foriegn monitors from OSCE can go. With Russia and the western world already exchanging harsh glances, I don't think Russia further limiting foriegn monitors would help relations. However since this is an election already won by Medvedev, then hopefully no serious hostile tension will be established over this.
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