In September 1991, Yegor Gaidar headed a group of experts working on the economic reform strategy in Russia. He was appointed Deputy Chairman in charge of the Economic Policy in the Russian Government on November 6, 1991. One of the harsh and unpopular measures advocated by Gaidar was transformation of the command economy by means of liberalization of prices in early 1992. Gaidar was elevated to the post of First Deputy Chairman on March 2, 1992, and briefly shared the power with Gennady Burbulis. When the latter was removed from the government in April 1992, Gaidar seized the opportunity and promoted the rapid transition to a market economy rejected by masses and his opponents in the Russian parliament and the Congress of People's Deputies. During the work of the 6th Congress, the government, bitterly criticized by the deputies, submitted a resignation (April 13), but the President did not accept it. On June 15, 1992, President Yeltsin before going abroad signed a decree conferring on Gaidar a title of Acting Chairman of the Government.

However, all efforts of Yeltsin to put Gaidar in charge of the government with consent of the Congress failed. On December 9, 1992, the Congress refused to grant approval to Gaidar's appointment to the post of prime minister (467 votes out of 1040). Though Yeltsin declared that it is impossible to co-operate with the Congress, he had to agree to Gaidar's resignation as deputy chairman and acting chairman officially confirmed by presidential decree on December 15. Earlier, on December 14, the Congress voted the appointment of Viktor Chernomyrdin to the post of prime minister.