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Thursday, December 24, 1998 Published at 12:03 GMT Business: The Economy Primakov threatens to quit ![]() Life is hard for ordinary Russians The Russian prime minister, Yevgeny Primakov, has said he will resign if parliament fails to approve his government's austerity budget for 1999.
He said: "If the budget is not adopted, we will not remain.
"We're not fooling anybody, the budget has to be tough." The budget had been expected to have a smooth passage through parliament, until the powerful Communist Party leader, Gennady Zyuganov, called on Wednesday for an initial vote to be postponed until next week. Mr Zyuganov said this would allow serious amendments to be made that took account of complaints by regional leaders over the proposed share-out of tax revenues. Downward spiral As the politicians continue to debate Russia remains gripped by its worst economic crisis since the Soviet collapse. Foreign lenders froze aid to the country after the government defaulted on some debts and devalued the currency in August.
The International Monetary Fund has insisted that a credible budget is a condition of any further loans. Mr Primakov said: "When we talk about the need for passing the budget, and ask for this as quickly as possible, we are assuming this will strengthen our position in talks with international financial organisations." Food aid Meanwhile, the United States and Russia have signed a $625m food aid agreement after months of negotiations, clearing the way for deliveries of American food to prevent hunger among Russia's needy. The United States will donate 1.5m metric tonnes of wheat to Russia free of charge, and provide another 1.5m tonnes of various agricultural commodities under a long-term loan. An extra 100,000 tonnes of various foodstuffs will be distributed directly to Russia's poor. |
The Economy Contents
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