Fin24

Russian finance minister ousted

2011-09-26 18:10

Dimitrovgrad - Russian President Dmitry Medvedev accepted Finance Minister Alexei Kudrin’s resignation on Monday after the veteran finance minister and deputy prime minister refused to work in a government that Medvedev is expected to lead.

“I have resigned. My resignation was accepted,” Kudrin told Reuters.

Medvedev’s spokesperson said the president had signed Kudrin’s resignation papers.


The dismissal ends  the 11-year tenure of the fiscal hawk who rebuilt Russia’s finances after the trauma of the 1998 default and devaluation.

Following are comments from analysts on Kudrin’s departure:

Sergei Guriev, Rector, New Economic School in Moscow said he had “no clue” who might replace Kudrin. “He is unique as he understands economics (and) sticks to his principles.”

Yulia Tsepliayeva, economist at BNP Paribas in Moscow, said investors will take Kudrin’s resignation "extremely negatively... and capital outflows in this case would only accelerate”.

Alexei Devyatov, chief economist at Uralsib in Moscow: “There is no person who would be able to fully replace Kudrin at the moment - he is a professional who has proven himself at home and abroad.

“It is hard to say who may be appointed to replace him, maybe one of Kudrin’s deputies.”