Russian, Chechen Leaders Agree on Economic Plan

MOSCOW —  Russian and Chechen officials agreed Saturday to pool funds to revive Chechnya’s war-ravaged economy, a welcome sign of cooperation amid rising tensions in the rebel republic.

Ramazan Abdulatipov, a Russian deputy prime minister who led a delegation from Moscow to the Chechen capital for talks Saturday, reported a “serious breakthrough” in relations.

The meetings were meant to defuse a crisis that began last week when Russia’s interior minister proposed preventive strikes against “bandits” in Chechnya, prompting alarmed Chechen leaders to put their forces on alert.

After talking with Chechen President Aslan Maskhadov and his top deputy, former rebel commander Shamil Basayev, Abdulatipov said the two sides agreed to jointly finance restoration of the economy, battered by the 1994-96 war between separatist Chechen rebels and Russian troops.

Attracting investment to Chechnya under Russian guarantees is a key part of their plan, the Interfax news agency quoted Abdulatipov as saying. Before the talks, Abdulatipov complained that relations were marred by “too much politics and too little action.”

The talks came as Chechnya was forming a new government.

Maskhadov’s Cabinet has had trouble imposing order, keeping armed groups under control and rebuilding the economy. Last week, he asked Basayev to put together a new administration.

Basayev said he would present a full list of proposed Cabinet members to the Chechen president today. The number of ministries is to be slashed, but many key officials will keep their jobs, Russian news agencies said.