Yeltsin Fires Kiriyenko, Names Chernomyrdin as Acting Prime Minister

Strategic Insights -

As Russia struggled to recover from one of its worst economic crises since the collapse of the Soviet Union, President Boris Yeltsin sacked Prime Minister Sergei Kiriyenko and his government, replacing him with veteran politician Viktor Chernomyrdin. The surprise move came as Kiriyenko's government was on the brink of collapse, having conceded defeat in the fight to save the national currency, the rouble, which had devalued by up to 34% against the US dollar. Chernomyrdin, a former head of Gazprom, has been laying the groundwork for a presidential campaign in 2000, but few analysts believe he can win.

Key Takeaways:

  • President Boris Yeltsin fired Prime Minister Sergei Kiriyenko and his government on June 25, replacing him with former Prime Minister Viktor Chernomyrdin as acting head of the government.
  • The Kiriyenko government was struggling to overcome Russia's worst economic crisis since the Soviet Union's collapse, with plunging world oil prices and the Asian economic crisis exacerbating the problem.
  • Kiriyenko's government worked tirelessly to defend the national currency, negotiate loans with Western lenders, and push reform measures through a hostile parliament.
  • The government conceded defeat in the fight to save the rouble, announcing a 34% devaluation against the US dollar.
  • Chernomyrdin, a Soviet-style bureaucrat, has been laying the groundwork for a presidential campaign in 2000, but faces an uphill battle due to his association with an unpopular administration.
  • Despite the surprise announcement, Chernomyrdin is expected to count on support from the business and banking establishment.

Statistics:

  • Russia's economy has experienced one of its worst crises since the Soviet Union's collapse.
  • The rouble has devalued by up to 34% against the US dollar following the Kiriyenko government's concession of defeat in the fight to save the currency.
  • Kiriyenko's government was on the brink of collapse, with all factions of the State Duma demanding his resignation and a resolution calling for President Yeltsin to step down.
  • Chernomyrdin has been laying the groundwork for a presidential campaign in 2000, despite low popularity ratings.

Sources:

  • "Yeltsin Fires Kiriyenko, Names Chernomyrdin as Acting Prime Minister" in Reuters (no date provided)
  • BBC (no date provided)
  • The Independent, 25 June 1998.