1991–1996: First term Radical reforms with
Leonid Kravchuk and
Stanislav Shushkevich, 8 December 1991 Just days after the dissolution of the Soviet Union, Yeltsin resolved to embark on a programme of radical economic reform. Surpassing Gorbachev's reforms, which sought to expand democracy in the socialist system, the new regime aimed to completely dismantle socialism and fully implement capitalism, converting the world's largest command economy into a free-market one. During early discussions of this transition, Yeltsin's advisers debated issues of speed and sequencing, with an apparent division between those favoring a rapid approach and those favoring a gradual or slower approach. On 1 February 1992, Yeltsin signed accords with U.S. president
George H. W. Bush, declaring the
Cold War officially over after nearly 47 years. A visit to Moscow from Havel in April 1992 occasioned the written repudiation of the Soviet intervention and the withdrawal of armed forces from Czechoslovakia. Through the 1990s, Russia's GDP fell by 50%, vast sectors of the economy were wiped out, inequality and unemployment grew dramatically, whilst incomes fell.
Hyperinflation, caused by the
Central Bank of Russia's loose monetary policy, wiped out many people's personal savings, and tens of millions of
Russians were plunged into poverty. Some economists argue that in the 1990s, Russia suffered an economic downturn more severe than the United States or
Germany had undergone six decades earlier in the
Great Depression. By 1993, conflict over the reform direction escalated between Yeltsin on the one side, and the opposition to radical economic reform in Russia's parliament on the other. Reporter Fred Kaplan, who served as the Moscow Bureau chief of the
Boston Globe from 1992 to 1995, noted that when he arrived in Moscow and tried to find places where bottom-up democracy was being built, soon discovered that there weren't any: despite press freedoms, Yeltsin's government had remained top-down.
Confrontation with parliament Throughout 1992 Yeltsin wrestled with the
Supreme Soviet of Russia and the
Congress of People's Deputies for control over government, government policy, government banking, and property. In 1992, the speaker of the Russian Supreme Soviet,
Ruslan Khasbulatov, came out in opposition to the reforms, despite claiming to support Yeltsin's overall goals. In December 1992, the 7th Congress of People's Deputies succeeded in turning down the Yeltsin-backed candidacy of
Yegor Gaidar for the position of
Russian prime minister. An agreement was brokered by
Valery Zorkin,
president of the Constitutional Court, which included the following provisions: a
national referendum on the new constitution; parliament and Yeltsin would choose a new head of government, to be confirmed by the Supreme Soviet; and the parliament was to cease making
constitutional amendments that change the
balance of power between the legislative and executive branches. Eventually, on 14 December,
Viktor Chernomyrdin, widely seen as a compromise figure, was confirmed in the office. The conflict escalated soon, however, with the parliament changing its prior decision to hold a referendum. Yeltsin, in turn, announced in a televised address to the nation on 20 March 1993, that he was going to assume certain "special powers" to implement his programme of reforms. In response, the hastily called 9th
Congress of People's Deputies of Russia attempted to remove Yeltsin from the presidency through
impeachment on 26 March 1993. Yeltsin's opponents gathered more than 600 votes for impeachment but fell 72 votes short of the required two-thirds majority. in Moscow, 3 January 1993 During the summer of 1993, a situation of
dual power developed in Russia. From July, two separate administrations of the
Chelyabinsk Oblast functioned side by side, after Yeltsin refused to accept the newly elected pro-parliament head of the region. The Supreme Soviet pursued its foreign policies, passing a declaration on the status of
Sevastopol. In August, a commentator reflected on the situation as follows: "The President issues decrees as if there were no Supreme Soviet, and the Supreme Soviet suspends decrees as if there were no President." (
Izvestia, 13 August 1993). On 21 September 1993, in breach of the constitution, Yeltsin announced in a
televised address his decision to disband the Supreme Soviet and Congress of People's Deputies by decree. In his address, Yeltsin declared his intent to rule by decree until the election of the new parliament and a referendum on a new constitution, triggering the
constitutional crisis of October 1993. On the night after Yeltsin's televised address, the Supreme Soviet declared Yeltsin removed from the presidency for breaching the constitution, and Vice-president
Alexander Rutskoy was sworn in as acting president. This led to the
de facto establishment of a super-presidential system.
Relations with China Boris Yeltsin initially prioritized relations with the West, paying little attention to relations with China. During a visit to China, Russian foreign minister
Andrei Kozyrev criticized China's human rights policies. Russia also moved to strengthen unofficial ties with Taiwan. The CCP in turn considered Yeltsin as a traitor and
anti-communist, but decided to maintain pragmatic ties; a leaked
Politburo meeting in January 1992 said that "Even if Yeltsin is very reactionary we can internally curse him and pray for his downfall, but we shall still have to maintain normal state relations with him". By summer of 1992, Yeltsin started pursuing a less pro-Western foreign policy. Former leader
Deng Xiaoping refused to meet with Yeltsin. Yeltsin also noted that "the ideological barrier" had been removed. The two countries also signed twenty-five documents ranging from cooperation in technology to space exploration. Yeltsin moved Russian foreign policy towards one that balanced the East and the West, while Russian foreign policy discussions were divided on
liberals that favored more alignment with the West and
Eurasianists that sought closer ties with China. After his August visit to Warsaw, Yeltsin saw the explosion of fright over NATO in the old guard and thereafter the window of détente slammed shut.
Norwegian rocket incident In 1995, a
Black Brant sounding rocket launched from the
Andøya Space Center caused a high alert in Russia, known as the
Norwegian rocket incident. The Russians were alerted that it might be a
nuclear missile launched from an American
submarine. The incident occurred in the post-Cold War era, where many Russians were still very suspicious of the United States and
NATO. A full alert was passed up through the military chain of command to Yeltsin, who was notified and the "
nuclear briefcase" (known in Russia as
Cheget) used to authorize nuclear launch was automatically activated. Russian satellites indicated that no massive attack was underway and he agreed with advisors that it was a false alarm.
Privatization and the rise of "the oligarchs" share a laugh in October 1995 Following the dissolution of the Soviet Union, Yeltsin promoted
privatization as a way of spreading ownership of shares in former state enterprises as widely as possible to create political support for his economic reforms. In the West, privatization was viewed as the key to the transition from Communism in Eastern Europe, ensuring a quick dismantling of the Soviet-era command economy to make way for "free market reforms". In the early 1990s,
Anatoly Chubais, Yeltsin's deputy for economic policy, emerged as a leading advocate of
privatization in Russia. In late 1992, Yeltsin launched a programme of free vouchers as a way to give mass privatization a jump-start. Under the programme, all Russian citizens were issued vouchers, each with a nominal value of around 10,000 rubles, for the purchase of shares of select state enterprises. Although each citizen initially received a voucher of equal face value, within months the majority of them converged in the hands of intermediaries who were ready to buy them for cash right away. tribune during the celebration of the 50th anniversary of
Victory, 9 May 1995 In 1995, as Yeltsin struggled to finance Russia's growing foreign debt and gain support from the Russian business elite for his bid in the 1996 presidential elections, the Russian president prepared for a new wave of privatization offering stock shares in some of Russia's most valuable state enterprises in exchange for bank loans. The programme was promoted as a way of simultaneously speeding up privatization and ensuring the government a cash infusion to cover its operating needs.
Korean Air Lines Flight 007 On 5 December 1991,
Senator Jesse Helms, ranking member of the Minority on the
U.S. Senate Committee on Foreign Relations, wrote to Yeltsin concerning U.S. servicemen who were POWs or MIAs: "The status of thousands and thousands of American servicemen who are held by Soviet and other Communist forces, and who were never repatriated after every major war this century, is of grave concern to the American people." Yeltsin responded with a statement made on 15 June 1992, whilst being interviewed on board his presidential jet en route to the United States, "Our archives have shown that it is true— some of them were transferred to the territory of the USSR and were kept in labour camps... We can only surmise that some of them may still be alive." For years the Soviet authorities had denied possessing these tapes. The openness of Yeltsin about POW/MIA and KAL 007 matters may also have signaled his willingness for more openness to the West. In 1992, which he labeled the "window of opportunity", he was willing to discuss biological weapons with the United States and admitted that the
Sverdlovsk anthrax leak of 2 April 1979 (which Yeltsin had originally been involved in concealing) had been caused as the result of a mishap at a military facility. The Russian government had maintained that the cause was contaminated meat. The true number of victims in the anthrax outbreak at Sverdlovsk, about east of Moscow, is unknown.
1996 presidential election , 1996 In February 1996, Yeltsin announced that he would seek a second term in the
1996 Russian presidential election in the summer. This announcement came after weeks of speculation that Yeltsin's political career was nearing its end because of his health problems and growing unpopularity in Russia. At the time, Yeltsin was recuperating from a series of heart attacks, and both domestic and international observers had noted his occasionally erratic behavior. By the time campaigning began in early 1996, Yeltsin's popularity was close to being non-existent. Meanwhile, the opposition
Communist Party had already gained significant ground in the
parliamentary elections held on 17 December 1995. Its candidate,
Gennady Zyuganov, boasted a strong grassroots organization, especially in the rural areas and small towns, and effectively appealed to nostalgia for the Soviet Union's international prestige and the domestic order under state socialism. At the same time, during and after the elections, the Communist Party secured the stability of Yeltsin and his regime, who relied on anti-communist rhetoric and on the fear of a resurgence of a strong communist party. The pro-government and pro-Yeltsin forces launched an anti-communist propaganda campaign in the media and established a special anti-communist newspaper '''' ("God forbid") promoting Yeltsin. Panic struck the Yeltsin team when opinion polls suggested that the ailing president could not win; some members of his entourage urged him to cancel the presidential elections and effectively rule as a dictator from then on. Instead, Yeltsin changed his campaign team, assigning a key role to his daughter,
Tatyana Dyachenko, and appointing Chubais as campaign manager. Chubais, acting as both Yeltsin's campaign manager and adviser on Russia's privatization programme, used his control of the privatization programme as an instrument of Yeltsin's re-election campaign. In mid-1996, Chubais and Yeltsin recruited a team of a handful of financial and media oligarchs to bankroll the Yeltsin campaign and guarantee favorable media coverage to the president on national television and in leading newspapers. In return, Chubais allowed well-connected Russian business leaders to acquire majority stakes in some of Russia's most valuable state-owned assets. Led by the efforts of
Mikhail Lesin, the media painted a picture of a fateful choice for Russia, between Yeltsin and a "return to totalitarianism". The oligarchs even played up the threat of civil war if a Communist was elected president. U.S. president
Bill Clinton also threw his support behind Yeltsin's campaign. At the White House's direction, American advisors were sent to join the campaign team of the sitting Russian president to teach new electoral techniques. Several European governments also showed their support for Yeltsin. French prime minister
Alain Juppé visited Moscow on 14 February, the day Yeltsin's candidacy was announced, and said he hoped the election campaign would be "an opportunity to highlight the achievements of President Yeltsin's reform policy". On the same day, German chancellor
Helmut Kohl visited Moscow, describing Yeltsin as "an absolutely reliable partner who has always respected his commitments". Yeltsin campaigned energetically, dispelling concerns about his health and maintaining a high media profile. To boost his popularity, Yeltsin promised to abandon some of his more unpopular economic reforms, boost welfare spending, end the war in Chechnya, and pay wage and pension arrears. Yeltsin had benefited from the approval of a US$10.2 billion
International Monetary Fund loan to Russia, which helped to keep his government afloat. Zyuganov, who lacked Yeltsin's resources and financial backing, saw his early lead gradually erode. After the first round of voting on 16 June, Yeltsin appointed
Alexander Lebed, a popular candidate who had finished in third place in the first round, as secretary of the
Security Council of Russia. At Lebed's behest, Yeltsin fired defense minister
Pavel Grachev and, on 20 June, sacked a number of his
siloviki, one of them being his chief of presidential security
Alexander Korzhakov, viewed by many as Yeltsin's
éminence grise. In the run-off on 3 July, with a turnout of 68.9%, Yeltsin won 53.8% of the vote and Zyuganov 40.7%, with the rest (5.9%) voting "
against all".
1996–1999: Second term (left) and President
Martti Ahtisaari (middle) in Helsinki, Finland on 21 March 1997 Yeltsin underwent emergency
quintuple heart bypass surgery in November 1996, and remained in the hospital for months. During his presidency, Russia received US$40 billion in funds from the
International Monetary Fund and other international lending organizations. However, his opponents allege that most of these funds were stolen by people from Yeltsin's circle and placed into foreign banks. From 1997, Yeltsin started to meet regularly with Chinese leader
Jiang Zemin. Yeltsin visited Beijing in November 1997, while Jiang visited Moscow in 1998. Relations were further strengthened by the joint opposition to the
NATO intervention in Yugoslavia. and warned of possible Russian intervention if NATO deployed ground troops to Kosovo. In televised comments, he stated: "I told NATO, the Americans, the Germans: Don't push us towards military action. Otherwise, there will be a European war for sure and possibly a world war." Yeltsin said that
NATO's bombing of Yugoslavia "trampled upon the foundations of international law and the United Nations charter". On 9 August 1999, Yeltsin fired his prime minister,
Sergei Stepashin, and for the fourth time, fired his entire Cabinet. In Stepashin's place, he appointed
Vladimir Putin, relatively unknown at that time, and announced his wish to see Putin as his successor. In late 1999, Yeltsin and U.S. president Bill Clinton openly disagreed on the war in Chechnya. At the November meeting of the Organization for Security and Cooperation in Europe, Clinton pointed his finger at Yeltsin and demanded he halt bombing attacks that had resulted in many civilian casualties. Yeltsin immediately left the conference. and Prime Minister
Vladimir Putin In December, whilst visiting China to seek support on Chechnya, Yeltsin replied to Clinton's criticism of a Russian ultimatum to citizens of
Grozny. He bluntly pronounced: "Yesterday, Clinton permitted himself to put pressure on Russia. It seems he has for a minute, for a second, for half a minute, forgotten that Russia has a full arsenal of nuclear weapons. He has forgotten about that." Clinton dismissed Yeltsin's comments stating: "I didn't think he'd forgotten that America was a great power when he disagreed with what I did in Kosovo." It fell to Putin to downplay Yeltsin's comments and present reassurances about U.S. and Russian relations.
Attempted 1999 impeachment On 15 May 1999, Yeltsin survived another impeachment attempt, this time by the democratic and
communist opposition in the
State Duma. He was charged with several unconstitutional activities, including the signing of the
Belovezha Accords dissolving the
Soviet Union in December 1991, the
coup-d'état in October 1993, and initiating the
war in
Chechnya in 1994. None of these charges received the two-thirds majority of the Duma required to initiate the process of
impeachment.
Mabetex corruption With
Pavel Borodin as the Kremlin property manager, Swiss construction firm
Mabetex was awarded many important Russian government contracts. They were awarded the contracts to reconstruct, renovate and refurbish the former
Russian Federation Parliament, the Russian Opera House,
State Duma and the
Moscow Kremlin. In 1998, the prosecutor general of Russia,
Yuri Skuratov, opened a bribery investigation against Mabetex, accusing its chief executive officer
Behgjet Pacolli of bribing Yeltsin and his family. Swiss authorities issued an international arrest warrant for Pavel Borodin, the official who managed the Kremlin's property empire. Yeltsin resigned a few weeks later on 31 December 1999, appointing Vladimir Putin as his successor. Putin's first decree as president was lifelong immunity from prosecution for Yeltsin.
Resignation On 31 December 1999, during a televised
New Year address, Yeltsin issued his resignation on the state-owned
ORT channel. In the speech, he praised the advances in cultural, political, and economic freedom that his administration had overseen although apologized to Russia's people for "not making many of your and my dreams come true. What seemed simple to do proved to be excruciatingly difficult." Yeltsin additionally announced that Vladimir Putin, by-then the most popular politician in the country, would be serving as acting president for the remaining three months until the
next presidential election on 26 March 2000. Polling also suggests that a majority of the Russian population were pleased by Yeltsin's resignation. ==Electoral history==