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We develop a theory of the soliton self-frequency shift compensation by the resonant radiation recently observed in photonic crystal fibers. Our approach is based on the calculation of the soliton plus radiation solution of the generalized nonlinear Schrödinger (GNLS) equation and on subsequent use of the adiabatic theory leading to a system of equations governing evolution of the soliton parameters in the presence of the Raman effect and radiation. Our theoretical results are found to be in good agreement with direct numerical modeling of the GNLS equation.