VICTOR CHERNOMYRDIN, RUSSIA'S NEW PRIME MINISTER, MADE HIS FIRST TRIP TO WESTERN EUROPE SINCE TAKING OFFICE TO ATTEND THE CONFERENCE. HE ASSURED BUSINESS LEADERS THAT REFORM WAS THE ONLY PATH THE RUSSIAN FEDERATION COULD FOLLOW. ASKED WHETHER HE WAS PREPARED FOR BANKRUPTCIES OF STATE ENTERPRISES IN A MARKET ECONOMY, HE REPLIED, YES, WE ARE READY. BUT HE NOTED THAT THE PROSPECT OF MASSIVE UNEMPLOYMENT OBLIGED THE GOVERNMENT TO BE CAUTIOUS IN DE-MONOPOLIZATION.
DEPUTY PRIME MINISTER BORIS FEDOROV SAID THAT FINANCIAL ASSISTANCE SHOULD BE DIRECTED TO THE PRIVATE SECTOR, ESPECIALLY TO SMALL BUSINESSES AND TO THE ENERGY AND AGRICULTURAL SECTORS. HE ALSO SAID THAT SOME 30 PERCENT OF STATE ENTERPRISES SHOULD BE CLOSED.