Chubais gets key post in new lineup

The new Russian Prime Minister, Mr Sergei Kiriyenko, named a clutch of liberals to key economic posts yesterday as his cabinet…

The new Russian Prime Minister, Mr Sergei Kiriyenko, named a clutch of liberals to key economic posts yesterday as his cabinet appointed arch reformer Mr Anatoly Chubais to head the influential power giant UES, in a further boost to reform.

President Yeltsin completed a troika of deputy prime ministers, putting Mr Oleg Sysuyev in charge of the sensitive social affairs portfolio, covering pensions and housing reform, that he handled in the outgoing government.

The Kremlin chief on Tuesday named prominent reformer, Mr Boris Nemtsov, as number two in the government along with another liberal, Mr Viktor Khristenko, installing a triumvirate of youth at the head of the government.

Mr Yakov Urinson, the dynamic Economics Minister, retained his post while Mr Fazit Gazizullin was re-appointed to the privatisation portfolio.

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The appointments followed the return of Mr Chubais (42) to a high-profile post. The father of Russia's crash privatisation programme was named chief executive of the giant electricity monopoly Unified Energy Systems (UES).

Analysts hailed the move as good for the economy and reform in Russia, saying it would help the government to get to the crux of the non-payments crisis stifling the Russian economy.

The non-payments problem has developed into a vicious circle of debt, tax shortfalls and punctured budgets. Because companies cannot pay debts to other companies, tax defaults have become widespread.

"It's a great sign for UES and for the power sector in general and another sign that the Russian government is serious about economic reform," said Mr Derek Weaving, an energy analysts at Deutsche Morgan Grenfell in Moscow.