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Investors eye Russia vote
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August 31, 1998: 9:22 a.m. ET
Russian stocks freeze, Chernomyrdin criticizes ruble devaluation a mistake
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NEW YORK (CNNfn) - Investors in Russia and overseas nervously awaited the results of a vote Monday that could officially reinstate once-ousted Prime Minister Viktor Chernomyrdin.
The vote, which is critical for the country's economic and political future, is scheduled for Monday afternoon.
Amid the uncertainty the Russian stock market remained in negative territory. Russia's main shares index, the RTSI-Interfax, fell 3.77 percent to 64.26 on light trading Monday at its first calculation
The Reuters composite index was down 0.36 percent to 47.80 on 11.6 million shares volume.
Trading of the ruble, which was halted Thursday and Friday, was suspended again on Monday after early trading suggested another bout of heavy losses.
Unofficial trading of the currency gained some ground on the streets of Moscow Monday, but still has lost some 25 percent of its value since the government stopped servicing its debts two weeks ago.
Giving investors no comfort, Chernomyrdin told parliament on Monday that the country was on the verge of collapse.
"Russia today is, in essence, on the verge of economic and political breakdown," he told the State Duma lower house in opening a debate in which he is seeking to be confirmed in office to form a government.
He also said Russia was wrong to effectively devalue the ruble at the same time its implemented a temporary moratorium on international debt repayments.
"I did not declare a devaluation and at the same time a moratorium on the state's debt commitments," Chernomyrdin said, referring to his previous five-year stint as premier. "I consider that here in particular a mistake was allowed."
The Communists and their allies, who together have close to a majority in the Duma, said on Monday they would vote against Chernomyrdin, who was fired from the post five months ago.
The strike against Chernomyrdin lputs his reinstatement by parliament in doubt.
Chernomyrdin said Friday he had the backing of Russian President Boris Yeltsin and two key potential rivals for the premiership, Interfax news agency reported.
The ruble has fallen sharply since Yeltsin fired his government, including previous prime minister Sergei Kiriyenko, Sunday and reinstated Chernomyrdin only five months after ousting him from office.
Reacting in part to the financial crisis in Moscow, the U.S. stock market Friday suffered its worst weekly loss in history. 
--from staff and wire reports
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