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Edition: U.S. Article Comments (0) Save Email Print Reprints Most Popular Most Shared Analysis: BP clean-up leaves U.S. vulnerable to another spill 5:28am EDT Iran says planes get fuel; EU bans some for safety 8:44am EDT WRAPUP 1-Iran says planes get fuel; EU bans some for safety 8:39am EDT France to look at possible U.S. sub link to sinking 02 Jul 2010 Viagra-popping seniors lead the pack for STDs 10:20am EDT BP shares rise as company says no plan to issue stock 11:05am EDT Wall St futures point to rebound for U.S. equities 4:49am EDT BP approaches funds to fend off takeover bids: source 9:11am EDT UPDATE 1-FT says BP stops supplying fuel to Iranian aircraft 05 Jul 2010 Special Report: Should BP nuke its leaking well? 02 Jul 2010 Analysis: BP clean-up leaves U.S. vulnerable to another spill 5:28am EDT Germans shell-shocked by oracle octopus 10:22am EDT Viagra-popping seniors lead the pack for STDs 10:20am EDT Turkey wants Israel apology 05 Jul 2010 BP approaches funds to fend off takeover bids: source 9:11am EDT Special Report: Should BP nuke its leaking well? 02 Jul 2010 BP shares rise as company says no plan to issue stock 11:05am EDT Iran says planes get fuel; EU bans some for safety 8:44am EDT WEALTH MANAGER-Navigating the mine field of the modern family 30 Jun 2010 Wall Street jumps on services data, relief over banks 10:43am EDT Putin sets out new strategy for N.Caucasus Digg This Tweet This Share on LinkedIn Share on Facebook Factbox FACTBOX-Key political risks to watch in Russia Thu, Jul 1 2010 Related News Russia's Putin calls for investment in N.Caucasus 7:44am EDT Kyrgyz leader warns of risk of further violence Mon, Jul 5 2010 Putin weighs in as Russia road work snarls traffic Thu, Jul 1 2010 Bomber in Russia's Chechnya strikes near leader Wed, Jun 30 2010 Related Topics World » Russia » By Darya Korsunskaya KISLOVODSK | Tue Jul 6, 2010 11:31am EDT KISLOVODSK Russia (Reuters) - Russian Prime Minister Vladimir Putin on Tuesday unveiled a new strategy aimed at foiling Islamist insurgency in the North Caucasus, promising to reduce grinding poverty and stamp out rampant corruption. Russia is struggling to contain an upsurge of attacks by rebels in the mainly Muslim provinces along its southern flank who in March took their war to the Russian heartland with deadly bombings in the Moscow metro. Local leaders say a potent mix of clan feuds, poverty, Islamism and heavy-handed tactics by law enforcement agencies has driven youths into the hands of rebels who want to create a Sharia-based pan-Caucasus state. In a shift from a decade of uncompromising statements on the North Caucasus, Putin focused on social and economic policies, called for local leaders to listen more to human rights groups and even said he sometimes felt sympathy for the rebels. "I sometimes even feel sorry for these people who are still running around in the woods there," Putin told members of his ruling party in Kislovodsk, a city just east of the mainly Muslim regions of the North Caucasus. We need "to show that the state is in a condition to effectively guarantee the security and safety of investments in the North Caucasus, to defend them from criminals, the tyranny of officials and protection rackets," he said. Putin, who in 1999 led Moscow into a war against Chechen separatists, is famous for sometimes crude comments on the rebels, promising to "rub them out in the outhouse" and later mocking a French reporter who grilled him on the second Chechen war with an invitation to undergo a circumcision in Russia. But during several hours of questions after his speech, Putin said he hoped the rebels would return to normal life. CAUCASUS POLICY President Dmitry Medvedev said in November that strife in the North Caucasus was Russia's biggest single domestic problem, a step some analysts said was an implicit admission that Moscow's approach needed to be changed. Human rights activists say the Kremlin has relied for far too long on local leaders and security forces whose hard-handed tactics have exacerbated the insurgency. Medvedev has demanded officials improve the economy of the North Caucasus, which was devastated by two wars against Chechen rebels since the 1991 fall of the Soviet Union. "Any investor should be treated, in my view, as a member of the family," Putin said, adding that local leaders should focus on reducing unemployment which in Ingushetia runs at more than half of the able bodied population. Putin, who is accused of cracking down on freedoms during his eight-year presidency from 2000 to 2008, said local leaders should talk more with human rights groups and warned elites remained far too distant from their populations. "We need a permanent, productive dialogue with social and human rights organizations," Putin said, though he cautioned that many human rights organizations were funded from abroad. "People in the North Caucasus are not able to even knock on the door of the official structures, they are unable to find support or even understanding, they come up against a wall of indifference, of passing the buck and bribery," he said. When asked by a party activist what should be done to stop the corruption which she said eats up half of all the federal money sent to the North Caucasus, Putin quipped: "hang them." (Writing by Guy Faulconbridge and Alexei Anishchuk, editing by Ralph Boulton) World Russia Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. 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. © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw 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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