The surprise election advances made by the ultra nationalist Liberal Democratic Party in Russia, and the sudden prominence of its colourfully eccentric leader Mr.Zhirinovsky, has prompted many western oil and gas companies to ask where they now stand in relation to new or existing business projects in the republic. The answer to this question, as with many other involving Russian domestic political issues is not easy to find. While it is clear that the elections and the simultaneous referendum on Russia's constitution has concentrated enormous political power in the hands of President Yeltsin, it is more than possible that the Zhirinovsky Factor' has dragged the centre of political debate in Russia overwhelmingly to the right. It is possible to interpret a number of President Yeltsins' post-election statements in such a light. Yeltsins tough line on the treatment of ethnic Russians in other republics and the vigorous line taken against Baltic representation in NATO are but two examples of this.