Russian Republic Embarks on Radical Economic Reform Plan

The Russian Federation, the most powerful of the Soviet Union’s republics, said today it has begun implementing its own radical 500-day economic reform plan.

“I think you can say we have already started today. We have just had a meeting of government ministers. . . . Privatization has already begun,” Russian Deputy Premier Gennady Filshin said.

Russian Federation President Boris N. Yeltsin had vowed to go ahead with the radical plan for transfer to a market economy from Nov. 1 despite what he called Soviet President Mikhail S. Gorbachev’s attempts to hinder privatization. The move could quickly set the pace for other key republics.

“There is no time now for conflict with the central government,” Filshin said. “We are going ahead with the resources we have . . . “

Earlier this month, Gorbachev’s reform blueprint combining the so-called 500-day plan and a more conservative central government program was backed by the national Parliament. But Gorbachev, imposing his guidelines by decree, said he will allow the 15 republics scope for their own plans.

Filshin said Russian ministers considered plans today for privatization of the country’s biggest wood and paper combines. Legislation to be passed next month would allow creation of stock companies with foreign investment.

Gorbachev’s blueprint is vague about the extent and rate of privatization of state property.