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. Last Updated: 07/27/2016

Kadannikov Surprise

The perspectives of [First Deputy Prime Minister Vladimir] Kadannikov are quite a departure from world practice.

Take his vision of adjustments to the privatization process: The government should turn unprofitable ventures into profitable ones, and then turn state shares over to the workers ...

It is probably a bit premature to call him a developing macroeconomist. In this sense it is doubtful that he is an adequate replacement for Chubais.

In particular, his announcement that Russia will increase its foreign sales of precious metals and diamonds in order to reduce the budget deficit is an unforgivable mistake for a government official. Afterward, gold, platinum and palladium prices fell sharply on the London Metal Exchange.

As a whole, Kadannikov's first 50 days in office have been somewhat of a surprise.