Yeltsin appoints liberal reformers to new cabinet

LIBERAL reformers are likely to take a firm grip on Russia's new government after President Yeltsin surprisingly handed a top…

LIBERAL reformers are likely to take a firm grip on Russia's new government after President Yeltsin surprisingly handed a top job to a young regional governor yesterday and several other liberals were brought in or promoted.

The Russian Prime Minister, Mr Viktor Chernomyrdin, said his new government, spearheaded by two first deputy prime ministers, Mr Anatoly Chubais (41) and Mr Boris Nemtsov (37), governor of Nizhny Novgorod, would include several fellow reformers at deputy prime minister level.

Keeping a promise to press ahead with stalled freed market reforms, Soviet-style industrial management ministries, including the Industry Ministry, would be scrapped or downgraded.

The Deputy Economy Minister, Mr Yakov Urinson, will step up to become deputy prime minister and economy minister. He is likely to report to Mr Chubais, former privatisation adviser and Kremlin chief of staff, who will have overall charge of economic reform and was reported to be taking the finance ministry.

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Mr Alfred Kokh, head of the State Property Committee and so effectively Russia's privatisation minister, was also promoted to deputy prime minister. The reformist communications minister, Mr Vladimir Bulgak, will be deputy prime minister overseeing technology.

The more conservative Interior Minister, Mr Anatoly Kulikov, stays on as deputy prime minister as does Mr Valery Serov, who is in charge of dealing with other former Soviet republics.

The rest of the cabinet line up would be announced by the end of the week, Mr Chernomyrdin said.

The liberal mayor of the industrial city of Samara will join the cabinet at the same rank, he said, stressing that the Moscow leadership was turning its attention to the problems of Russia's regions. Millions of workers and pensioners have not been paid and labour unions plan a day of protests on March 27th.

Also with profound regional experience, Mr Nemtsov was a surprise appointment since Mr Yeltsin had said Mr Chubais would be Mr Chernomyrdin's only first deputy.

Mr Nemtsov was seen by some analysts as having been brought in to build a bridge between Mr Chubais and the more conservative Mr Chernomyrdin (58).

Russian liberals, who have criticised Mr Yeltsin for a lack of progress in market reforms, hailed Mr Nemtsov's appointment as a sign the president was committed to the reformist course.

Mr Yeltsin, worried by the growing tension caused by delays in wages and pensions and the government's inability to handle the crisis, has told Mr Chernomyrdin to review the cabinet structure and dramatically improve its performance.

Mr Yeltsin said Mr Nemtsov would handle social programmes, natural monopolies and deal with powerful regional authorities.

By stepping in to the delicate issue of forming the cabinet, Mr Yeltsin also reminded the other players that he held the top authority and that months of illness were definitely over.