Economics Minister Alexander Shokhin, one of the few survivors of President Boris Yeltsin's original reformist team, announced his resignation Friday after a new finance minister was named over his head.
Shokhin's resignation left Russian economic policy in uncharted waters as the government lost the third of its three top financial managers in as many weeks. The coveted post of finance minister went to Vladimir Panskov, an economic specialist in Yeltsin's administration who spent five months in jail last year on corruption charges which were later dropped.
Shokhin's economics portfolio had been rumored to be on the line ever since the crash of the ruble on so-called Black Tuesday, Oct. 11, but he did not wait for the axe to fall. He told reporters Friday that he opposed Panskov's economic outlook and had been informed about the new minister's appointment only as he was walking to the press conference in the Radisson-Slavjanskaya Hotel.
"As I went up the staircase I made up my mind that I would probably hand in my resignation today," he said.
Shokhin, 43, who has been in the Russian government since May 1991, said he would also quit his deputy prime minister's job because "I don't leave step by step."
He said Panskov was a "good man" with the relevant experience for the new job, but he had no faith in his reformist credentials.
Shokhin said the chances were only "50-50" that Panskov would take a tough line on next year's budget, which sets strict spending targets.
"It's the first time I've had the sense that I won't be able to do what I want in the government," Shokhin said of the shakeup. "After this, my hands will be tied." Shokhin added that as far as he knew, Prime Minister Viktor Chernomyrdin had never even met Panskov before the appointment, which did not inspire confidence.
Chernomyrdin was with Panskov at the Finance Ministry on Friday, however, introducing him to staff, and he took the opportunity to warn the new minister to stick to the tight budget plan, Reuters reported.
"I am telling the new minister specifically that this ministry has done a great job on the budget, it gave birth to a new course and we will not abandon it," the ministry's press service quoted Chernomyrdin as saying.
Panskov himself told Itar-Tass on Friday that he was in favor of a tough fiscal policy but added: "We don't need toughness for its own sake. It's senseless to hand out money left and right when there's not enough of it, but it's essential to support industry as it is restructured."
The new minister, who has a long career in Soviet and Russian finance, appeared to be a consensus choice. His name was put forward to Yeltsin by several opposition factions in the State Duma, but more reformist figures were quick to praise him as a professional.
Mikhail Zadornov, the chairman of the budget committee from the liberal Yabloko bloc said Friday that Panskov was an "apolitical" and "authoritative" figure and a "fortunate choice" as finance minister.
Reformists said they were more alarmed by the political demise of Shokhin.
"Two or three people more and all the demands of the Communists and the LDPR will be met," said former finance minister Boris Fyodorov, adding that the government was being slowly purged of pro-reform figures.
"The government is now much more diverse and incapable of pursuing a coherent policy," said Zadornov.
The outlook of the government tilted towards the opposition last week when Alexander Nazarchuk from the anti-government Agrarian Party was made agriculture minister. Analysts interpreted this as a concession to the Duma on the day it voted in strength for a motion of no-confidence in the government.
"A pattern is being set, said one Western diplomat. "The government is not confident in its own ability to get through no-confidence votes and get the budget through the Duma in a relatively unchanged manner, so it's trying to shore up its strength with the Duma"
But although the government has lost most of its best-known reformers, the diplomat said, it is too early to write off the policy of reform altogether. New incumbents, such as Chernomyrdin himself have tended to face the "realities" of fighting inflation and carried on roughly similar policies to their predecessors.
The leading agent of radical reform is now likely to be Yakov Urinson, a survivor from Gaidar's original team and Shokhin's deputy in the Economics Ministry. Urinson has in fact been running the ministry day to day while Shokhin has devoted more time to being deputy prime minister and a deputy in the Duma, the diplomat said.
The much-debated government reshuffle, which has now claimed three ministers, probably has a little way to go. Chernomyrdin has said he wants to find a new minister for cooperation with the CIS and a new justice minister may also be appointed soon.
The current Justice Minister Yury Kalmykov was one of five candidates put forward Thursday by Yeltsin to be judges in the Constitutional Court. Kalmykov's press secretary Vladimir Zimonenko said Friday that he would relinquish his post if and when his nomination was confirmed by the Federation Council.
Shokhin's resignation left Russian economic policy in uncharted waters as the government lost the third of its three top financial managers in as many weeks. The coveted post of finance minister went to Vladimir Panskov, an economic specialist in Yeltsin's administration who spent five months in jail last year on corruption charges which were later dropped.
Shokhin's economics portfolio had been rumored to be on the line ever since the crash of the ruble on so-called Black Tuesday, Oct. 11, but he did not wait for the axe to fall. He told reporters Friday that he opposed Panskov's economic outlook and had been informed about the new minister's appointment only as he was walking to the press conference in the Radisson-Slavjanskaya Hotel.
"As I went up the staircase I made up my mind that I would probably hand in my resignation today," he said.
Shokhin, 43, who has been in the Russian government since May 1991, said he would also quit his deputy prime minister's job because "I don't leave step by step."
He said Panskov was a "good man" with the relevant experience for the new job, but he had no faith in his reformist credentials.
Shokhin said the chances were only "50-50" that Panskov would take a tough line on next year's budget, which sets strict spending targets.
"It's the first time I've had the sense that I won't be able to do what I want in the government," Shokhin said of the shakeup. "After this, my hands will be tied." Shokhin added that as far as he knew, Prime Minister Viktor Chernomyrdin had never even met Panskov before the appointment, which did not inspire confidence.
Chernomyrdin was with Panskov at the Finance Ministry on Friday, however, introducing him to staff, and he took the opportunity to warn the new minister to stick to the tight budget plan, Reuters reported.
"I am telling the new minister specifically that this ministry has done a great job on the budget, it gave birth to a new course and we will not abandon it," the ministry's press service quoted Chernomyrdin as saying.
Panskov himself told Itar-Tass on Friday that he was in favor of a tough fiscal policy but added: "We don't need toughness for its own sake. It's senseless to hand out money left and right when there's not enough of it, but it's essential to support industry as it is restructured."
The new minister, who has a long career in Soviet and Russian finance, appeared to be a consensus choice. His name was put forward to Yeltsin by several opposition factions in the State Duma, but more reformist figures were quick to praise him as a professional.
Mikhail Zadornov, the chairman of the budget committee from the liberal Yabloko bloc said Friday that Panskov was an "apolitical" and "authoritative" figure and a "fortunate choice" as finance minister.
Reformists said they were more alarmed by the political demise of Shokhin.
"Two or three people more and all the demands of the Communists and the LDPR will be met," said former finance minister Boris Fyodorov, adding that the government was being slowly purged of pro-reform figures.
"The government is now much more diverse and incapable of pursuing a coherent policy," said Zadornov.
The outlook of the government tilted towards the opposition last week when Alexander Nazarchuk from the anti-government Agrarian Party was made agriculture minister. Analysts interpreted this as a concession to the Duma on the day it voted in strength for a motion of no-confidence in the government.
"A pattern is being set, said one Western diplomat. "The government is not confident in its own ability to get through no-confidence votes and get the budget through the Duma in a relatively unchanged manner, so it's trying to shore up its strength with the Duma"
But although the government has lost most of its best-known reformers, the diplomat said, it is too early to write off the policy of reform altogether. New incumbents, such as Chernomyrdin himself have tended to face the "realities" of fighting inflation and carried on roughly similar policies to their predecessors.
The leading agent of radical reform is now likely to be Yakov Urinson, a survivor from Gaidar's original team and Shokhin's deputy in the Economics Ministry. Urinson has in fact been running the ministry day to day while Shokhin has devoted more time to being deputy prime minister and a deputy in the Duma, the diplomat said.
The much-debated government reshuffle, which has now claimed three ministers, probably has a little way to go. Chernomyrdin has said he wants to find a new minister for cooperation with the CIS and a new justice minister may also be appointed soon.
The current Justice Minister Yury Kalmykov was one of five candidates put forward Thursday by Yeltsin to be judges in the Constitutional Court. Kalmykov's press secretary Vladimir Zimonenko said Friday that he would relinquish his post if and when his nomination was confirmed by the Federation Council.
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