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 RUSSIA IN FACTS
17 January 2005 14:06
Cabinet "liable for new law implementation"
Russian President Vladimir Putin’s cabinet session today is expected to have the new law on paying money compensation instead of providing social benefits as its key topic. Ministers’ jobs are unlikely to be lost but the president will sharply criticize their actions, Kommersant daily reports. Three ministers are responsible for putting the new rules into effect - Finance Minister Alexei Kudrin, Healthcare and Social Development Minister Mikhail Zurabov, and Transportation Minister Igor Levitin. Regional governors are expected to take the brunt of the blame for a blunder that has led to protest demonstrations across several Russian regions. These would not go unheeded at the highest level, Kommersant says in a report assessing the affair.

The cabinet meeting is being broadcast by all Russian federal TV channels to signal that protests are taken into account and that steps will be taken to resolve the crisis. Who will the president blame? the daily asks.

Finance Minister Kudrin is responsible for funding monthly payments to those entitled to social benefits. His ministry did not work with the Russian regions and republics successfully and should improve the situation as soon as possible. Regional governors sent the ministry their plans to pay monetary compensation, which recommended regions allocate funds enough for about RUR300-200 (about USD10.7-USD7.14) for each person enjoying social benefits. That is not enough even to pay for one month’s worth of transport tickets, Kommersant said.

Kudrin also regulates inter-budget transfers and other elements of financial relief to Russian regions, thus possessing one more instrument for exercising pressure on regional governors. Therefore, regions with the record number of protest demonstrations will likely be granted financial relief, a development confirmed on January 16.

Healthcare Minister Zurabov, arriving in St. Petersburg on Sunday, said Russian authorities had started paying compensation to transport companies which were to offer cheaper tickets for those with social benefits. The Russian Pension Fund was also expected to pay additional sums to these individuals. Kudrin had proposed discussing a RUR100 (about USD3.57) increase in pensions to ease problems, the news article said.

Zurabov is expected to be blamed for giving no public explanation of changes in the system and over provision of medications for those in need. Transport Minister Levitin’s lot looks to be the best, having implemented the ministry’s duties successfully in providing special tickets for commuter train journeys, the daily says.

Regional governors will have to address most of the accusations at today’s meeting, likely held accountable for the failures. Ministers will submit data on multiple violations of Russian law by chiefs in the regions. At a meeting of the United Russia party, ministers told deputies of payments of money compensation through banks instead of with pensions, as the law demands.

Now, as the law on Putin’s appointing the heads of Russian regions and republics has become effective and as the wave of protest against the benefits law broke out, a new question becomes weighty, says Kommersant: what about people’s confidence, and what’s more important, what about federal officials’ confidence, in regional governors?

The demonstrations have been the first of such significance since the conflict with coalminers over unpaid wages in the Nineties. Angry protests flared among pensioners denied free public transport from the Far East to Kaliningrad, Russia’s western enclave. Pensioners blocked major highways and traffic was at a standstill in Russian cities. Policemen were in no hurry to scatter protesters since their own officers had also lost several privileges.

Meanwhile, new protests will likely emerge, both among those due to pay for utility services at the end of January or the start of next month and among disabled people facing new problems with healthcare services.


[RBCTop]
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