III. Statement by President Boris Nikolayevich Yeltsin of the Russian Federation

2. Economic issues

President Boris Yeltsin: Now, the economic questions. In the last year, Russia has got out of the dead end of the former system. The major first step has been taken. Our economy is not a state economy; it is a different one. There is a freeing of prices and the market mechanisms are being instituted. We are getting to the level of the normal functioning of a free market economy. We are taking steps to reduce the budgetary deficit and raise the level of productivity. We are controlling inflation. Naturally, we are trying to do our best on the basis of our internal resources. There is still a vast number of problems facing us. Therefore, we welcome assistance to the process of reform in Russia from major leading countries. Now, what was the gist of the issues discussed at this meeting? Naturally, the leaders of Group of Seven have promised to give further assistance, and the International Monetary Fund has promised $1.5 billion towards the end of the summer. The second tranche will be given and paid in autumn. With the creation of the Facility for Privatization, about $3 billion has been promised. This is a package that is to be paid before the end of this year or by the beginning of 1994. Of course, this particular facility has about $300 million. Perhaps this is not enough, but it is going to be broadened subsequently. There was support from the European Bank for Reconstruction and Development to support the energy sphere of production, in oil and gas, about $600 million. Immediate negotiations will be started with regard to credit from the International Monetary Fund for stabilization of our currency, the ruble. One of the major spheres of cooperation concerns nuclear safety and the Prime Minister mentioned this. There are priority matters concerning the closing down of atomic energy power stations, providing safety in connection with nuclear waste and nuclear materials. We have to resolve technical problems, naturally. It is precisely in this sphere that we must resort to grants in this connection. We shall continue work in creating an effective mechanism of coordination of control in using such economic support for Russia, and we will do our best to make sure that such resources will go to good purposes.

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