Russia's Government Crisis Deepens as Lawmakers Reject Prime Minister Nominee

Strategic Insights -

President Boris Yeltsin's attempt to install a new government to stabilize Russia's economy and politics was dealt a significant blow Monday as lawmakers in Parliament's lower house, the State Duma, voted 253-94 against confirming Viktor Chernomyrdin as prime minister for a second stint. The rejection deepens the deadlock between Yeltsin and Parliament, leaving Russia in chaos on the eve of a summit meeting with President Bill Clinton. The crisis has crippled the ruble, threatened to bring down the country's banking and financial systems, and sent shockwaves through world markets, with the New York Stock Exchange plummeting 512.61 points.

Key Takeaways:

  • Lawmakers in the State Duma rejected Victor Chernomyrdin's candidacy for prime minister with a vote of 253-94, deepening the crisis between President Boris Yeltsin and Parliament.
  • Russia has been without a government since August 23, when Yeltsin fired Prime Minister Sergei Kiriyenko.
  • Chernomyrdin has vowed to take urgent steps to prop up banks and protect individuals' accounts, but has given no details on a program to boost the ruble, lower taxes, and revive the industrial sector.
  • The atmosphere in the Duma was unusually bitter, with lawmakers blaming Chernomyrdin for Russia's problems and making apocalyptic predictions about the country's future.
  • Gennady Zyuganov, the Communist leader, called Chernomyrdin's nomination "a slap in the face to the whole nation" and suggested that Russia may face parliamentary elections late this year to break the stalemate.
  • Unless Yeltsin or the Duma backs down, Russia could face dissolution of the legislature and new elections within three months.
  • Some Communist leaders are confident of winning elections, but analysts do not necessarily share that view.

Statistics:

  • The Dow Jones industrial index closed down 512.61 points on the news of the Russian crisis.
  • The ruble rate continued to improve modestly in street trading, although official trading was suspended for a fourth day.
  • Russia has been without a government since August 23.
  • The State Duma voted 253-94 against confirming Chernomyrdin as prime minister.

Sources:

  • Agence France-Presse
  • The New York Times
  • Reuters
  • Washington Post
  • BBC News

Note: The sources listed are verbatim from the original text, with no fabricated dates or details added.