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Monday, September 14, 1998 Published at 11:10 GMT 12:10 UK


World: Europe

G7 discusses Russia's crisis

G7 is anxious to hear Yevgeny Primakov's plans to get Russia out of its economic crisis

Officials of the group of seven leading industrial nations are meeting Russian officials in London to discuss the country's problems.

Russia crisis
The G7 - Britain, Canada, France, Germany, Italy, Japan and the United States - has made it clear that further economic aid depends on Russia sticking to the path of reforms.

BBC Business Correspondent Andrew Walker says the group will want to know much more about the economic policiy intentions of the new Russian Prime Minster Yevegeny Primakov, who was confirmed in office by the Russian parliament on Friday.


The BBC's Jon Devitt: "Russia will have to keep its reforms on track"
Russian officials are expected to address the meeting at the start, and they will be briefed after it is over, but they will not attend the main business.

Representatives of the International Monetary Fund, the World Bank and the European Commission are also attending.

The meeting is being described as a chance to share ideas and analyses of Russia's problems.

Our correspondent says it does not seem likely that the meeting will come up with specific proposals, or recommendations of new financial assistance.

Primakov promises 'social conscience'

Russia's new prime minister said on Sunday that his economic policies will take account of the social welfare of ordinary people.


[ image: Yevgeny Primakov: Wants to protect Russians from mass poverty]
Yevgeny Primakov: Wants to protect Russians from mass poverty
In his first major interview since his approval, Mr Primakov reaffirmed that market reforms would continue, but said the stark divide between rich and poor was not right.

"It must be a socially oriented economy," Mr Primakov told NTV commercial television.

"There should be no awful discrepancy under which the majority of the people live below the poverty line. We cannot allow this. No capitalist country allows it. At least they try. In this regard we need certain corrections which will be made," Mr Primakov said.

He said economic development should include the creation of jobs and the payment of wages.

"No return" to Soviet ideology

Mr Primakov also dismissed allegations leading reformers that the appointment of a communist, Yuri Maslyukov, as his first deputy prime minister meant a return to Soviet ideology.


[ image: Yuri Maslyukov: Former Soviet planning minister]
Yuri Maslyukov: Former Soviet planning minister
Yuri Maslyukov: Former Soviet planning minister "Maslyukov will not be carrying out policies dictated to him by the Communist Party," Mr Primakov said.

Mr Maslyukov, who formerly headed the Soviet state planning agency, will be the top economic official in the new government.

Two former government members, Yegor Gaidar and Boris Nemtsov, said earlier that the country was changing economic course.

"The Communist Party is the governing party now," Mr Nemtsov said in an interview earlier.

Mr Gaidar was quoted by the Interfax news agency as saying it was hard to say how long the "government of communists" would take to "destroy elements of a free market economy in Russia."





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