Yeltsin struggles to stabilize Russia

Yeltsin apparently was considering alternatives to acting Prime Minister Viktor Chernomyrdin, including a Communist whose nomination undoubtedly would sail through the leftist-dominated parliament. But there were signs that Yeltsin might insist on Chernomyrdin after all.

The political stalemate is exacerbating Russia's economic collapse, which was reflected yesterday by rising prices and a spread of emergency measures, such as price controls, in some regions of the country.

Surprisingly, however, the country's tattered currency, the ruble, bounced back a bit. Rubles, which were selling at about 20 to the U.S. dollar Tuesday, rose in street sales to as strong as 10 to the dollar, although rates varied widely. The official rate was 15.77 rubles to the dollar.

Foreign currency dealers said the improved rate suggested that people had exhausted their ruble supply in panic buying and had begun to exchange more of their dollar savings for rubles. Many Russians keep their savings in U.S. dollars.

The lack of rubles sent the currency's value up.

"I've been trying in the last few days to buy more," said 25-year-old Dmitry, a police officer who wouldn't give his last name. "But I can't change my money at a bank because there aren't any rubles."

Stores in Moscow were restocking shelves and people seemed less worried about food shortages.

"I'm buying but I haven't been in panic," said Tatyana Shishkova, a retired teacher. "We see people hoarding, but we don't do it. There's no reason for it. You can't buy for your entire life."

Yeltsin spent the day at his country house outside Moscow, meeting with top aides and deciding if he would agree to a compromise candidate for prime minister.

There was speculation in the Duma, the lower chamber of parliament, that Yeltsin was considering Yuri Maslyukov, a Soviet-era economic official and a member of the Communist Party. Maslyukov has worked with Yeltsin before, resigning last week as trade and industry minister.

Communist and centrist leaders praised Maslyukov, saying they would back him for prime minister. Maslyukov met yesterday with Yeltsin's chief of staff, Valentin Yumashev, but there were no details on what they discussed, the ITAR-Tass news agency reported.

Maslyukov's spokesperson said he hadn't been offered any government post yet, according to Interfax.

Moscow Mayor Yuri Luzhkov, whose name has been mentioned prominently as a potential prime minister, met with Chernomyrdin and Yeltsin's chief of staff, and predicted afterward that Chernomyrdin would be nominated a third time, ITAR-Tass reported.

The Duma twice has rejected Chernomyrdin's nomination as prime minister. If it rejects Yeltsin's nominee a third time, Yeltsin would be forced by law to dissolve parliament and call new elections.

09-10-98