Russia has entered the year 1997 with a heavy burden of problems and the situation in the country is extremely complex, above all as concerns the economy. We have failed to stop the production slump and ensure the influx of investments. Society's belief in the ability of the power structures to stop the onslaught of crime is being undermined. It is ever more difficult to provide the armed forces with the essentials. The already low standard of living for the majority of Russian citizens continues to decline. People are suffering from delays in the payment of wages, pensions and benefits. All efforts to solve this problem have failed to yield tangible results

Great harm to the country is done by the passing of laws that cannot be implemented. No allocations for them are envisaged in the budget. The deputies are aware of this, but still insist on passing laws that require tens of trillions of roubles to implement. It is strange that the authoritative and experienced regional leaders -- members of the Federation Council.

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Today I am turning to you for the last time with New Year's greetings. But that's not all. Today I am turning to you for the last time as president of Russia. I have made a decision. I thought long and hard over it. Today, on the last day of the departing century, I am resigning. I have heard many times that "Yeltsin will hang onto power by any means, he won't give it to anyone." That's a lie. But that's not the point. I have always said that I would not depart one bit from the constitution. That Duma elections should take place in the constitutionally established terms. That was done. And I also wanted presidential elections to take place on time — in June 2000. This was very important for Russia. We are creating a very important precedent of a civilized, voluntary transfer of power, power from one president of Russia to another, newly elected one. And still, I made a different decision. I am leaving. I am leaving earlier than the set term. I have understood that it was necessary for me to do this. Russia must enter the new millennium with new politicians, with new faces, with new, smart, strong, energetic people. And we who have been in power for many years already, we must go. Seeing with what hope and faith people voted in the Duma elections for a new generation of politicians, I understood that I have completed the main thing of my life. Already, Russia will never return to the past. Now, Russia will always move only forward.

Today, on this day that is so extraordinarily important for me, I want to say just a few more personal words than usual. I want to ask for your forgiveness. For the fact that many of the dreams we shared did not come true. And for the fact that what seemed simple to us turned out to be tormentingly difficult. I ask forgiveness for not justifying some hopes of those people who believed that at one stroke, in one spurt, we could leap from the gray, stagnant, totalitarian past into the light, rich, civilized future. I myself believed in this, that we could overcome everything in one spurt. I turned out to be too naive in something. In some places, problems seemed to be too complicated. We forced our way forward through mistakes, through failures. Many people in this hard time experienced shock.

It is time to have order. First of all, inside the power structures. And I will have it. I am not satisfied with the government. The executive power has proved unable to work without presidential peremptory shouts. Most of the promises given to the people, particularly as concerns social questions have not been fulfilled. I have prepared a package of important and urgent measures. The structure of the government will change. Competent, energetic people will join it. I will announce within the next few days. But emergency measures are not enough. For this reason we shall begin to restore order to the entire system of bodies of state authority, state finances, regulation of the economy, and the fulfillment of social promises of the state, and we shall do it this year. This year, we shall draft and approve a program of radical reform of the executive power. Its aim is to radically enhance the efficiency of the state government.

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For many years our two nations were the two powers, the two opposites. They wanted to make us implacable enemies, that effected the destinies of the world in a most tragic way. The world was shaken by the storms of confrontation. It was close to exploding, close to perishing, beyond salvation. That evil scenario is becoming a thing of the past. Reason begins to triumph over madness. We have left behind the period when America and Russia looked at each other through gun sites ready to pull the trigger at any time. Despite what we saw in the well-known American film, The Day After, it can be said today, tomorrow will be a day of peace, a day less of fear and more of hope for the happiness of our children. The world can sigh in relief. The idol of communism which spread everywhere social strife, animosity and unparalleled brutality which instilled fear in humanity has collapsed. It has collapsed never to rise again. I am here to assure you we shall not let it rise again in our land. I am proud that the people of Russia have found strength to shake off the crushing burden of the totalitarian system. I am proud that I am addressing you on behalf of the great people whose dignity is restored. I admire ordinary Russian men and women who in spite of s...severe trials have preserved their intellectual integrity and are enduring tremendous hardships for the sake of the revival of their country. Russia has made its final choice in favor of a civilized way of life, common sense and universal human heritage. I am convinced that our people will reach that goal. There is no people on this earth who could be harmed by the air of freedom. There are no exceptions to that rule.

What have they done to our poor people?... [the] pain for all of us, for our country so rich, so talented and so exhausted by incessant experiments... I think we have committed a crime against our people by making their standard of living so incomparably lower than that of the Americans.

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Using the traditional demagoguery, which has been tried and tested over the years, the putschists blame all our current difficulties on the democrats and promise economic recovery and a better life, security and prosperity for the citizens of the USSR. What a hypocritical lie! Surely Pavlov is responsible for rocketing inflation and unprecedented price rises this year? Surely Yazov as leader of the most corrupt highest placed generals, is responsible for the poverty and lawlessness of our servicemen? Surely Pugo bears personal responsibility for the blood shed in the Baltic republics? Surely Starodubtsev, leader of the organization of Soviet land-owners is to blame, owing to the stance he assumed, for the abortive collection of last year’s bumper crops? And these are the people who promise to “restore order in the country!”

There are numerous bugbears in the profession of a politician. First, ordinary life suffers. Second, there are many temptations to ruin you and those around you. And I suppose third, and this is rarely discussed, people at the top generally have no friends.

It looks as if some people either have a short memory and are forgetting about that time and the events that occurred then … Let us recall the putsch of August 19, 1991. It was after the putsch that the republics began, one after another, to declare their independence. Russia also declared its independence. This was approved by the Supreme Soviet, and you know and remember that there was the Declaration on the Independence of Russia. So, the entire course of history was leading to a point when the regime, the political regime in the country had to be changed. It demonstrated that the Union was not as strong as this was loudly preached by mass media and the propaganda in general. The republics wished to become independent. This must only be welcomed... We have good peaceful relations and there were no military clashes. None of these countries had revolutions with bloody casualties and there was no civil war in any of the republics... Russia had to change and it did change.