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Strategies & Market Trends : Russian Crisis - Is it a buying opportunity? -- Ignore unavailable to you. Want to Upgrade?

To: Wallace Rivers who wrote (61)	8/31/1998 9:12:00 AM
From: Jeffrey L. Henken	Respond to of 175

Russian deal falls through MOSCOW - Casting a darker cloud over an already troubled Russia, the leader of the Communist Party said Sunday that his members plan to vote Monday against confirmation of acting Prime Minister Viktor Chernomyrdin. The 11th-hour announcement by Gennady Zhuganov threw into confusion prospects for an early resolution of Russia's political and financial crisis. Just hours earlier, lawmakers had announced an agreement with representatives of President Boris Yeltsin to boost parliament's powers at the president's expense. The deal had been designed to assure confirmation of the new prime minister in time for President Clinton's arrival here Tuesday. In Washington, the White House said only that the United States hoped a new government would be in place "as quickly as possible." U.S. and International Monetary Fund officials told Moscow Friday that international financial support could be cut off if the new government returned to the state controls of its Soviet past. "What is crucial is not words at this point but actions the Russians are able to take," Deputy Treasury Secretary Lawrence Summers said Sunday on CBS's Face the Nation. The Duma, or lower house of parliament, had been scheduled to vote Monday on Chernomyrdin's nomination. The Communists are the Duma's largest faction, but the rank and file have defied their leader on similar leadership votes in the past. Still, the move by Zhuganov marks an escalation in the struggle between an ailing Yeltsin, who enjoys enormous power under the Constitution, and a parliament that covets greater influence. "His position is weaker," said Andrei Ryabov of the Gorbachev Foundation, a think tank in Moscow. "That's why the left opposition is trying to use this moment to realize their plans for change." Yeltsin and his Communist rivals played a similar game of political chicken in March over the last prime minister, reformer Sergei Kiryenko. Ultimately, lawmakers surrendered and approved Yeltsin's nominee rather than face early elections, which they must do if a nominee is turned down three times and the president dissolves parliament. Though he has said he has no plans to resign, Yeltsin now is far weaker politically. But lawmakers still are not eager to face the voters. So further talks between the president and parliament are likely. During the weekend, fears about the currency crisis eased as the ruble rebounded from 15 to the dollar to about 9 to the dollar in unofficial trading. By David J. Lynch, USA TODAY usatoday.com Wallace, I'm glad you have started the new thread. I will post a URL here if you don't mind? Regards, Jeff