MOSCOW - The resignation of Finance Minister Alexei Kudrin, a figure trusted by Western investors during his more than 10 years on the job, is a huge blow to Russia's economy at a critical time, the media said on Tuesday.

Kudrin resigned late on Monday in a public confrontation with President Dmitry Medvedev after he became the highest-profile official to break ranks with the plan for Medvedev to swap jobs with current Prime Minister Vladimir Putin in 2012.

"Kudrin's resignation will be a big blow for the Russian economy - experts are already forecasting a new wave of capital flight, a fall in the rouble rate and inflation growth," the daily Vedomosti said.

Leading journalist Konstantin Eggert said in a commentary on Kommersant FM that "rightly or wrongly, the now ex-finance minister Kudrin was perhaps the main guarantee for foreign companies that you can invest money in Russia".

"He was like a translator from the language of the Russian authorities to the universally understood language of global capitalism."

With his calls for austerity measures and less populist social policy, Kudrin has earned respect among the center-right of Russia's political spectrum.

Immediately upon his resignation, the ousted minister received an invitation to join the Right Case party as its leader.

Communist Party of the Russian Federation leader Gennady Zyuganov welcomed Kudrin's resignation, saying the event ought to be celebrated.

A successor has not been named, but Vedomosti said a possible contender is Health Minister Tatyana Golikova, although there are also candidates from within the Finance Ministry.

Local experts are convinced that Putin may invite Kudrin back to the government soon after presidential elections.

Kudrin, who many believed wanted to be prime minister himself, had announced last weekend he had no intention of serving in a government led by Medvedev due to major differences on economic policy.

But Russian newspapers said it was clear his resignation was agreed in advance with Putin.

Responding to a media request to comment on Medvedev's proposal to support Putin to run for the Russian presidency, Chinese Foreign Ministry spokesman Hong Lei said on Tuesday that the China-Russia partnership will maintain its good development momentum.

"China noted relevant reports on the proposal. China believes the China-Russia comprehensive strategic cooperation partnership will continue to develop in a healthy and stable way," Hong said.

AFP-Xinhua

(China Daily 09/28/2011 page11)