Primakov ministers told to draft reforms easing people's plight

Russia's new Prime Minister, Mr Yevgeny Primakov, opened his first government meeting yesterday by urging ministers to quickly…

Russia's new Prime Minister, Mr Yevgeny Primakov, opened his first government meeting yesterday by urging ministers to quickly draft reasonable economic reforms that can benefit the people. Future reforms must "make a lot of social sense", Mr Primakov told a cabinet session attended by Russia's interim ministers.

"We cannot implement reforms that reflect poorly on the people," the former foreign minister said. "This is not an easy time."

His comments were seconded by Russia's new Communist economic manager, Mr Yury Maslyukov. "The government's very first anti-crisis measures will aim to solve the problems of wage arrears, and also at least partly to resolve the problems with pensions," the first deputy prime minister was quoted as saying by ITAR-TASS.

The remarks are the first sign that Russia may resume printing money to help the population to prepare for the harsh winter ahead. Several regions across the vast nation have announced states of emergencies as cash shortages mean more people are left without hot water and electricity.

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Confirmed by parliament last Friday, Mr Primakov said he would hold meetings with politicians and financiers in order to draft a reasonable reform programme.

Opposition leaders in the Duma had made their support for Mr Primakov conditional on the inclusion of their deputies in his cabinet. With little experience in economic management, he has placed Mr Maslyukov in charge of the economy and named the Soviet-era banker Mr Viktor Gerashchenko as head of the central bank.

The two appointments have been viewed with concern by some analysts, who fear that the Prime Minister may discontinue measures that could help Russia in the long term in favour of heavy social spending financed by money-printing.

Yesterday's government session was attended by Mr Maslyukov as well as the acting deputy prime ministers, Mr Boris Fyodorov, Mr Viktor Khristenko and Mr Oleg Sysuyev.

Foreign investors in Russia have said the retention of Mr Fyodorov, a strict monetarist who also heads the state tax service, may prove pivotal to determining whether the new government follows strict policies or not.

Meanwhile, the liberal opposition leader, Mr Grigory Yavlinsky, yesterday turned down an offer from Mr Primakov to become a deputy premier in the new cabinet, Interfax reported.

Mr Yavlinsky, head of the reformist Yabloko faction in the Duma, met the new Prime Minister in the government White House as Mr Primakov continued his efforts to form a government.

According to Interfax, Mr Yavlinsky said Mr Maslyukov "has a different opinion about the course of economic and political reforms. The government should not be a discussion club".