Government dismissal weighs on Russia EMERGING MARKETS:
Russian markets nudged lower yesterday after President Vladimir Putin
dismissed the government and said he would appoint a fresh team after next
month's presidential election.
The dismissal of prime minister Mikhail Kasyanov and his administration came
as little surprise, although the timing did. Under the Russian constitution
the government must resign after presidential elections, which are due on
March 14.
Observers were puzzled why Mr Putin was unwilling to wait less than three
weeks to dismiss the government quietly.
However, analysts said markets had taken the developments largely in their
stride, with the RTS1 index falling 1.4 per cent to 647.61.
The rouble, which has been rising steadily against the dollar since the start
of 2003, also gave some ground. But dealers said the central bank, which
usually moves quickly to curb anything it sees as excess volatility, chose
not to intervene because the rouble's fall was not sharp enough.
The timing of Mr Kasyanov's removal took foreign investors and analysts
by surprise as he was a familiar figure to them during negotiations over
Russia's debt restructuring. But he was also a reminder of the Boris
Yeltsin era and his departure is seen by many as clearing the path for the
promotion of reformers such as German Gref, the economy minister.
|
RUSSIA IN FACTS
