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This is an archive article published on November 21, 1997

Chubais stays deputy premier despite scandal

MOSCOW, Nov 20: Russian President Boris Yeltsin found a compromise formula today to keep key reformer Anatoly Chubais in the government des...

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MOSCOW, Nov 20: Russian President Boris Yeltsin found a compromise formula today to keep key reformer Anatoly Chubais in the government despite a corruption scandal, while replacing him as Finance Minister with a respected liberal economist.

The shake-up aimed to end a serious political crisis sparked by allegations last week that Chubais, the architect of Russia’s free-market reforms, and four other senior government figures had taken bribes from a top bank.

The announcement followed a meeting between Yeltsin and Prime Minister Viktor Chernomyrdin, who yesterday faced calls from the communist-dominated Lower House of Parliament, the state Duma, to dump Chubais altogether.

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It remained unclear whether replacing Chubais with Zadornov as Finance Minister would be enough to placate Opposition deputies, some of whom had threatened to block passage of the 1998 budget and a new tax code unless Chubais went.

Zadornov, 34, from the liberal, but anti-government Yabloko Party, has so far worked as chairman of the Duma’s budget committee, where he has won widespread plaudits. Zyuganov was later to hold a meeting of communist and other leftist groups in Parliament, possibly to call for sweeping changes to the government’s free-market reforms, Interfax reported.

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