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Sunday, 25 September 2011 - Russia's Putin to seek presidency, finance chief to go |
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      Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Home Business Business Home Economy Technology Media Small Business Green Business Legal Deals Earnings Summits Business Video Markets Markets Home U.S. Markets European Markets Asian Markets Global Market Data Indices M&A Stocks Bonds Currencies Commodities Futures Funds peHUB World World Home U.S. Brazil China Euro Zone Japan Mexico Russia Afghan Journal Africa Journal India Insight Global News Journal Pakistan: Now or Never? 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Sat, Sep 24 2011 Russia's Dmitry Medvedev Sat, Sep 24 2011 Related News Kudrin rules out role in Russia's next government 1:13am EDT Analysts' view: Putin to return to the Kremlin Sat, Sep 24 2011 Timeline: Highs, lows of Putin-Medvedev double act Sat, Sep 24 2011 Putin's Kremlin shuffle no surprise for Russians Sat, Sep 24 2011 Putin's Kremlin shuffle no surprise for Russians Sat, Sep 24 2011 Analysis & Opinion The US elections and pandering to Israel Advani’s “withdrawal” may come back to haunt BJP Related Topics World » Russia » Related Video Putin to return as Russian president Sat, Sep 24 2011 1 of 6. Russia's President Dmitry Medvedev (R) and Prime Minister Vladimir Putin walk along tha stage to address the audience during the United Russia congress in Moscow September 24, 2011. Credit: Reuters/Denis Sinyakov By Timothy Heritage and Lidia Kelly MOSCOW/WASHINGTON | Sun Sep 25, 2011 3:15am EDT MOSCOW/WASHINGTON (Reuters) - Russia's finance minister announced on Sunday he would step down next year if President Dmitry Medvedev becomes prime minister following Vladimir Putin's expected return to the presidency. Prime Minister Putin said on Saturday he would reclaim the presidency in an election next March that could open the way for the former KGB spy to rule until 2024. But in comments likely to worry foreign investors who have praised his guardianship of Russia's economy, Finance Minister Alexei Kudrin made clear he was unhappy with Putin's decision to ask Medvedev to be prime minister after the election. "I do not see myself in a new government," Kudrin, 50, said in comments released in Washington, where he was meeting global policymakers. "The point is not that nobody has offered me the job; I think that the disagreements I have (with Medvedev) will not allow me to join this government." Kudrin, who has hinted he would like to be prime minister, has won the respect of investors by saving windfall oil revenues for a rainy-day fund which helped Russia through the 2008 global economic crisis. Putin's decision to return to the post he held from 2000 to 2008 is also likely to cause some nervousness in the West, where he is considered less liberal than Medvedev and more outspoken in his criticism of Western policies. Washington said it expected to keep making progress in the "reset" toward better relations with Moscow, whoever was the next Russian president. But many in the West are wary, and economists fear economic stagnation under Putin. "This (announcement) shows that Russia is far away from open, democratic competition for the presidency," said Ruprecht Polenz, chairman of the foreign affairs committee in the German Bundestag, the lower house of parliament. James Goldgeier, a Russia expert at American University in Washington, said: "There will be a businesslike relationship (between Washington and Moscow), but not a warm one." POWER-SHARING AGREEMENT Putin, 58, and Medvedev, 46, have ruled in a power 'tandem' since Putin was forced by the constitution to yield the presidency in 2008 after serving a maximum two consecutive terms. Putin accepted a proposal by Medvedev to return as president at a carefully choreographed congress of Putin's ruling United Russia party on Saturday. "I want to say directly: (Medvedev and I) reached an agreement between ourselves long ago, several years ago, on what to do in the future, on who should do what," Putin said. Over 11 years in power, Putin has cultivated the image of a vigorous leader and been filmed riding bare-chested on horseback, scuba diving and showing off his judo skills. His policies -- crushing a Chechen separatist rebellion, taming super-rich businessmen and bringing wayward regions to heel -- have similarly won him popularity among Russians. But critics say his return to the Kremlin, virtually unopposed, could bring back memories of the economic and political stagnation under Soviet leader Leonid Brezhnev in the 1970s and early 1980s. "It's a sign of growing stagnation in the Russian political elite and it means that Mr Putin, if elected, can rule for another 12 years until 2024," said Yevgeny Volk, deputy director of the Yeltsin Foundation think tank. Opinion polls show other potential candidates, such as nationalist Vladimir Zhirinovsky or Communist Gennady Zyuganov, have much less support and Putin will easily be elected. The main liberal opposition leaders such as former prime minister Mikhail Kasyanov have only limited appeal nationwide. The next president will be elected for six years and is allowed up to two consecutive terms. PUTIN'S PARTY SEEKS ELECTION BOOST Putin proposed Medvedev to lead United Russia's list of candidates for a parliamentary election on December 4 as well a become prime minister next year. The move is intended to help reverse a decline in support for United Russia and boost its hopes of retaining a two-thirds majority in the State Duma lower house. Investors had been urging that Putin and Medvedev put an end to the political uncertainty that has deterred many from putting money into the $1.5 trillion economy of the world's largest energy producer. In his previous eight-year spell as president, Putin oversaw an economic boom where household incomes improved on the back of a rise in global oil prices, and his tough talking helped restore Russia's self-confidence on the world stage. But Putin, who was once a KGB officer in East Germany, is accused by critics of riding roughshod over human rights and democracy, and expanding the power of the security forces. Many economists say his return to the Kremlin makes it less likely that Russia will carry out pension reforms and reduce Russia's dependency on natural resources. Oil and gas revenues make up half the budget. Kudrin challenged this view. "Putin feels (the country's) problems very seriously and reacts to them," he said. "I hope that he will feel it necessary to conduct structural reforms to boost the potential for economic growth." (Additional reporting by Douglas Busvine in Moscow, Matt Spetalnick in Washington and Andreas Rinke in Berlin) World Russia Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above. Social Stream (What's this?)   Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Contact Us Advertise With Us Connect with Reuters Twitter   Facebook   LinkedIn   RSS   Podcast   Newsletters   Mobile About Privacy Policy Terms of Use Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us   Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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