Five days before the runoff election, Grigory Yavlinsky, chairman of the Yabloko Party, took time to talk to Russia Today correspondent Tracy Dove on July 28 and explain his views on the course of the Russian presidential elections. Yavlinsky, who finished fourth in the first round, is potentially a pivotal figure in the race. He has conditionally endorsed incumbent Boris Yeltsin, but he is scheduled to meet with the president. Speculation favors that he will join Yeltsin's government.

Russia Today: Grigory Alekseevich (Yavlinsky), you have often mentioned the fact that people have chosen to vote against Boris Nikolaevich (Yeltsin) and Gennady Zyuganov in this election. In America, we are aware of this phenomenon -- it is called the "negative vote." What role do you believe this "negative vote" has played in this campaign thus far?

Grigory Yavlinsky: "If the voter turnout is low [on July 3], it will help Gennady Zyuganov. This is because the democrats do not go to the polls and the communists do. The democrats believe that if the democratic forces are indeed correct, then they do not need to go and vote. They believe that everything will happen on its own. They will just sit in their homes and assume that the right thing will get done. And I understand the way these people think. But at the same time, they must realize that in an indirect manner, they are actually supporting Zyuganov. But this does not give us the right to forbid people from staying at home on election day. But still, they must understand what their actions mean.

RT: Concerning the course of the elections thus far, do you think that both of the remaining candidates -- Zyuganov and Yeltsin -- are addressing the issues properly for the Russian people, or they are just fighting amongst themselves?

GY: As far as I am concerned, I think that it is a profound mistake that Yeltsin has not changed his campaign at all after the first round. He has put all of his hopes into the fact that Aleksander Lebed has appeared in his government. I think Yeltsin must now turn to the voters, and constantly speak with them, address their concerns. But it is not certain that he will do this.

Yevgenniya Chernozatonskaya, another Russia Today reporter: And Yeltsin excused himself that he has lost his voice!

GY: [laughter] Yes, yes, he lost his voice!

RT: Up until now, Yabloko has been a very successful opposition party in Russian politics. Do you believe that participating in Yeltsin's government may compromise the advances that Yabloko has achieved thus far, and that maybe you should stay an opposition force?

GY: We are ready to participate, but we will stay away from a government that could compromise us as a party. We will not be in the opposition forever. On the other hand, we will not participate in a government that will defame us so badly that we will never again be rid of the damage that such an association would cause.

RT: And when do you expect the president to respond to the questions you proposed?

GY: The president called me and said that we will meet Sunday (June 30).

RT: And do you plan to hold a press conference then on Sunday?

GY: Maybe, I haven't thought about it yet.

RT: And now to economics. Grigory Alekseevich, many economists have different opinions as to how the Russian economy should be restructured. Monetarists argue for a stable currency and money supply, while others support production-side economics. Do you fall into one of these two camps, or is there a third way to overcome the current economic crisis?

GY: The main goal is a political one. It is an aggregate of 70 years of economics. Financial stability is of course an important background for all economic changes. The stability which we have thus far achieved is progress we cannot afford to lose. Now, there are important institutional issues to address in regard to restructuring the economy. The first thing to take on is land reform. In addition to this, we must also address property issues, de-monopolization of the economy and the raw material sector, as well as reconsider how we can reform the use of energy in the economy.

All of these areas of concern, together with opening the markets - especially in the former Soviet economies - are the main consideration for us as far as economic reform goes. Free trade, adjusting our policy of currency exchange and rates, the creation of a good environment for competition, these are the main focus of what must be done.

Today, we have three major crises in Russia. These are in the realms of budget management, investment in industry and privatization. All these three areas are currently dysfunctional, and they cannot withstand any pressures from without. This is the most serious problem of our economy today.

RT: So you are saying there is a third way for Russia to reform its economy beyond the standard schools of economics?

GY: There could be a fifth, sixth or seventh. This is an oversimplification of what you asked. These matters are connected. Naturally we should have it so that we achieve stabilization and have economic production at the same time.

RT: Yabloko has spoken in favor of more power to the Russian regions and limiting the power of the president and the government. But Russia historically has been controlled centrally from Moscow. Do you believe that such reforms are at all possible, and especially at this time?

GY: Yes. If such reforms are at all possible, then only right now. Only under the pressures of the elections and democratic procedures is it possible at all.

RT: And how?

GY: Do you see what Yeltsin does? He concludes separate agreements with different regions, and this is in conflict with the federation of Russia. Why can't he do this for all regions at the same time? He waits until someone from these regions comes to him and asks for something from the federal government. He cannot hold the power himself - he is forced to give it away.

But Yeltsin goes his own way. Instead of granting greater powers to all, he waits for a regional leader to come to him and ask - they must bow before him - this is what his system is. Do you understand? But generally speaking, it is absolutely possible; in fact, the regions are forced to do everything they can for themselves.

RT: Thank you, Grigory Alekseevich.

GY: You are welcome.