InfoAnda - Insight: Putin's Russia: more fragile than it looks |

Pakistanis angry over detentions in Times Sq. case
Monday, May 24, 2010
ISLAMABAD – Relatives of three men detained by Pakistan for alleged links to the suspect in the attempted Times Square bombing say the men are innocent.
They

Taiwan denies boycotting Australian film festival
Thursday, August 6, 2009

AFP - Thursday, August 6TAIPEI (AFP) - - Taiwan's Beijing-friendly government on Wednesday denied boycotting an Australian film festival amid a row over the e

Merkel's support dips, regional ally resigns International
Thursday, September 3, 2009

By Sarah Marsh and Noah Barkin

BERLIN (Reuters) - Chancellor Angela Merkel suffered a double blow on Thursday as a senior party ally in east German

Minister seeks closure of anti-Berlusconi websites
Wednesday, December 16, 2009
ROME (AFP) - – The Italian government moved Tuesday to close down Internet sites encouraging further violence against Prime Minister Silvio Berlusconi, who

Asian markets mixed after Wall Street rally
Wednesday, March 18, 2009

By ELAINE KURTENBACH,AP Business Writer AP - Wednesday, March 18SHANGHAI - Asia's stock market rally seemed to be running out of steam Wednesday, despite an

Iraq car bombs kill 16 | 9 July 2009
Samsung Electronics creates component division as LCD struggles | | 1 July 2011
Beijing looks to revitalise bicycle culture | 27 May 2010

Indian police kill 2 suspected Pakistani militants | 25 January 2009

Forum Views () Forum Replies ()

Read more with google mobile : Insight: Putin's Russia: more fragile than it looks |

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 Legal Deals Earnings Social Pulse Business Video The Freeland File Aerospace & Defense Investing Simplified Markets Markets Home U.S. Markets European Markets Asian Markets Global Market Data Indices M&A Stocks Bonds Currencies Commodities Futures Funds peHUB Dividends World World Home U.S. Brazil China Euro Zone Japan Mexico Russia India Insight World Video Reuters Investigates Decoder Politics Politics Home Election 2012 Campaign Polling Supreme Court Politics Video Tech Technology Home MediaFile Science Tech Video Tech Tonic Social Pulse Opinion Opinion Home Chrystia Freeland John Lloyd Felix Salmon Jack Shafer David Rohde Nader Mousavizadeh Lucy P. Marcus Nicholas Wapshott Bethany McLean Anatole Kaletsky Edward Hadas Hugo Dixon Ian Bremmer Lawrence Summers Susan Glasser The Great Debate Steven Brill Reihan Salam Frederick Kempe Christopher Papagianis Mark Leonard Breakingviews Equities Credit Private Equity M&A Macro & Markets Politics Breakingviews Video Money Money Home Tax Break Lipper Awards 2012 Global Investing MuniLand Unstructured Finance Linda Stern Mark Miller John Wasik James Saft Analyst Research Alerts Watchlist Portfolio Stock Screener Fund Screener Personal Finance Video Money Clip Investing 201 Life Health Sports Arts Faithworld Business Traveler Entertainment Oddly Enough Lifestyle Video Pictures Pictures Home Reuters Photographers Full Focus Video Reuters TV Reuters News Article Comments (1) Slideshow Full Focus Editor's Choice Our best photos from the last 24 hours. Slideshow Download our Wider Image iPad app Images of September Follow Reuters Facebook Twitter RSS YouTube Read Scope of Sandy's devastation widens, death toll spirals | 1:36am EDT Jobless rate seen rising, offering Obama no relief 12:04am EDT U.S. Coast Guard suspends search for captain of replica HMS Bounty 01 Nov 2012 CIA officials in Libya made key decisions during Benghazi attacks 01 Nov 2012 Apple rolls out iPad mini in Asia to shorter lines 12:44am EDT Discussed 96 Race is tied, but most think Obama will win: Reuters/Ipsos poll 88 Analysis: U.S. presidential race is all about Ohio – or is it? 64 Obama cancels Florida event, returns to Washington to monitor storm Sponsored Links Insight: Putin's Russia: more fragile than it looks Tweet Share this Email Print Related News Russian punk band "risk lives" in Soviet-style prisons Mon, Oct 29 2012 Russia activists detained after opposition council meets Sat, Oct 27 2012 Kremlin dismisses talk Putin has back trouble Thu, Oct 25 2012 Pussy Riot got what they deserved: Putin Thu, Oct 25 2012 UPDATE 2-Russia's Putin: Mixed feelings over Rosneft-BP alliance Thu, Oct 25 2012 Analysis & Opinion How would Tocqueville see this election? What the Cuban missile crisis teaches us about Iran Related Topics World » Russia » Investing Simplified » 1 of 6. Workers attach a pre-election poster featuring then Russia's President Dmitry Medvedev (R) and Prime Minister Vladimir Putin, appealing to people to vote for the United Russia political party, onto an office building in the southern city of Krasnodar November 24, 2011. Credit: Reuters/Eduard Korniyenko/Files By Michael Stott MOSCOW | Fri Nov 2, 2012 2:02am EDT MOSCOW (Reuters) - When Vladimir Putin celebrated his 60th birthday this month, a group of patriotic mountaineers unfurled a portrait of the Russian leader on a 4,150-metre mountain peak. Hailing him as a guarantor of happiness and stability, the climbers' leader explained: "We have stuck Putin's portrait on a rock wall we see as unbreakable and eternal as Putin". But as Putin nears the end of his 13th year ruling this vast country, Russians feel increasingly unhappy and worries over long-term political and economic stability are growing. Russia is exporting three things in great quantity, says a leading Moscow banker: natural resources, capital and people. Only the first could be regarded as healthy and sustainable; the other two imply that oligarchs and ordinary citizens alike are turning their back on Putin's Russia. Almost a third of city-dwellers would like to emigrate from Russia, according to a poll in September. Among young people the proportion rose to nearly half. The most favored destinations were Europe, the United States, Australia and New Zealand. The reasons for this exodus of talent and money? A growing sense among educated Russians that their country is heading in the wrong direction, and that no change is likely. It all began very differently. Putin replaced Boris Yeltsin in the Kremlin on December 31, 1999. His early years generated hope as the chaos of the Yeltsin era was replaced by order, the economy grew strongly - Russia's GDP has grown nearly 10-fold under Putin - and a consumer boom created a new middle class. A group of reform-minded ministers led by Alexei Kudrin at Finance and German Gref at Economy raised hopes of real change to increase private investment, modernize industry and infrastructure and reduce dependence on raw material exports. Fast forward to 2012. Putin began a fresh six-year presidential term this March, with his supporters calling for him to stay in power until a constitutional term limit of 2024 - by which time the former KGB spy would have ruled longer than any Kremlin leader since Stalin. Outwardly Putin's reform agenda continues. The president and his government repeat the mantra of modernization - a concept beloved of tsars for centuries. Putin told Russia's main economic forum this summer that his government would implement a program of major transformation to build a new economy, create or modernize 25 million jobs and become an exporter of innovative goods and services. But the facts on the ground point in a different direction. POLITICAL THAW REVERSED A brief and shallow political thaw under Dmitry Medvedev's 2008-12 presidency (in which Putin continued to wield ultimate power from the prime minister's office) is being reversed. Opposition leaders have been arrested on charges which human rights organizations say are trumped-up, new controls have been clamped on the Internet and a Medvedev repeal of slander laws has been reversed. Gref and Kudrin are both long gone from the government and unconfirmed rumors swirl in Moscow that Medvedev himself will be fired by Putin before the end of the year. Growth presses on but at the same time Moscow has the world's biggest population of billionaires, corruption is rampant and the country's huge wealth is very unevenly spread. Kudrin helped to fund a startling study from the Centre of Strategic Research think-tank, published last week. It concluded from interviews with focus groups in Moscow and regional cities that Russians saw little chance of changing their "predatory" ruling elite through the ballot box. Most thought a revolution was possible and even desirable. Medvedev cuts an increasingly lonely figure in Moscow, his credibility with voters gone after stepping aside without a murmur to make way for Putin's return to the Kremlin this year. His supporters privately despair of any chance for real change in an economy that looks increasingly Kremlin-controlled. One recent mega-deal shows the trend. Last month, state-controlled oil giant Rosneft said it would take over the number three oil producer, TNK-BP. Rosneft will buy out the current owners - four Soviet-born oligarchs and Britain's BP - to create the world's biggest publicly listed oil company. At a time when Russian oil production is falling and large-scale investment is badly needed to open up new fields, the Kremlin is instead spending $55 billion in cash and shares to acquire control of a major oil company from the private sector. As the government splurges, Russia's oligarchs are shifting more money abroad because of the poor investment climate. Deputy Economy Minister Andrei Klepach estimates that $50-60 billion of private capital will flow out of Russia this year. Moscow bank Uralsib predicts the figure could hit $80 billion. "MIXED FEELINGS" Putin told a group of visiting academics and journalists last week over dinner at his residence that he had "mixed feelings" about the Rosneft takeover of TNK-BP because it increased state participation in the economy. Russia-watchers, however, had little doubt that the takeover was scripted inside the Kremlin. Rosneft is run by Igor Sechin, a long-time close Putin ally and Kremlin hard-liner who has always favored extending state control over key assets. The two-hour, seven-course dinner with the Valdai Group of Russia experts was held at Putin's Novo-Ogaryovo residence in an exclusive wooded suburb outside Moscow. The occasion was billed as a chance to gain insight into the latest Kremlin thinking and learn Putin's ideas for his new term. But at dinner, the Kremlin chief surprised some attendees with an uncharacteristically flat performance, devoid of the quips and bravado for which he is renowned and lacking in new ideas. Corruption is one of the biggest problems in Russia for ordinary citizens, businessmen and foreign investors. The country has slid to 143rd place out of 182 on Transparency International's Corruption Perceptions Index, tied with Nigeria. Yet Putin shrugged off a question about corruption with a tired sigh, asking his audience what they expected him to say that was new about such a perennial topic. Intimations of Putin's mortality have surfaced. The president's press secretary last week denied a Reuters report that the Kremlin leader needed surgery to correct a back injury, then days later squelched fresh rumors about Putin's health, saying he was working from home to avoid traffic congestion. Such issues are no minor matter in a country where so much power is concentrated in the hands of one man, a man with no visible successor. President Barack Obama memorably described Putin before their first meeting in 2009 as a leader with one foot stuck in the Soviet past, and signs of a drift backwards are visible in Moscow. The Kremlin administration is now headed by 59-year-old former KGB spy Sergei Ivanov, who likes to describe himself as "rather conservative on national security but quite liberal on economics". Ivanov previously headed the Defense Ministry and the military-industrial complex. ZASTOY AND PUTIN On the lips of many educated Muscovites today is the word "zastoy" (stagnation) - an epithet which came to define the lackluster latter years of Soviet leader Leonid Brezhnev in the 1970s and early 1980s, but is now increasingly used of Putin. Despite years of government promises, Russia has yet to build a modern pensions saving system, improve regulation to create a viable financial market trading centre to compete with Dubai or invest in its crumbling infrastructure. Already weighed down by the cost of hefty public sector pay rises ahead of this year's presidential election, the Russian government's latest budget envisages spending $620 billion by 2020 re-equipping the country's military, while cutting spending on infrastructure and education. These priorities have upset business leaders, who are desperate for improvements to the creaking road network. And despite repeated Putin's pledges to cut the economy's dependence on oil and gas exports, the oil price required by the Kremlin to make its budget sums add up has more than doubled over the pasts five years to $110. In foreign policy, Medvedev's much-vaunted plan to reset relations with the United States on a more constructive track has stalled. Instead Moscow has confronted the West over Syria and given priority to pursuing a free trade area with former Soviet neighbors Belarus and Kazakhstan. Alexei Pushkov, chairman of the Duma's Foreign Affairs Committee, says Russia wants to be an "independent centre of attraction" for nations in its neighborhood and adds: "The West made a major mistake wanting Russia to be like the West - Russia wants to be Russia". PUNISHING PUSSY RIOT One of the clearest signs of divergence between Russia and the West is the treatment of Pussy Riot - a punk feminist band who staged a protest song in Moscow's main cathedral this year imploring the Virgin Mary to rid Russia of Putin. Three of its members were jailed for two years - one later released on a suspended sentence - for "hooliganism motivated by religious hatred". Putin said the women had "got what they deserved" because their performance amounted to a vulgar act of group sex and threatened the moral foundations of Russia. Western governments and human rights groups were outraged at what they saw as a grossly disproportionate punishment. Yet the harsh treatment meted out to Pussy Riot may signify something deeper than moral indignation. Many analysts see the jail terms as a sign of something deeper - Kremlin insecurity amid rising popular discontent. While the street protests which swept Moscow last winter have now abated, political analysts say the urban, educated population is increasingly unhappy with Putin's leadership. Far from the grandeur of Putin's Novo-Ogaryovo residence, its wrought-iron gates topped with the double-headed Russian eagle, to the north of Moscow lies the featureless dormitory town of Krasnogorsk. Inside a small, noisy McDonald's restaurant there, a diminutive 30-year-old woman energetically explained her prediction for Russia's future under Putin, as a snowstorm swirled outside. "The system itself is crumbling," said Yekaterina Samutsevich, the released Pussy Riot member. "It's becoming more repressive ... those in power have very strong fears and their behavior is more and more wild. We could end with a total collapse like the Soviet Union." Whether the vision of the strong, stable, great power projected by Putin or the apocalyptic prediction of the young punk rocker come to pass remains to be seen. But in the meantime Russia's people and its business elite are voting with their feet and their wallets. And Putin is not winning. (Writing by Michael Stott; Editing by Peter Millership) World Russia Investing Simplified 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 (1) DeanMJackson wrote: 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 Support Corrections Connect with Reuters Twitter Facebook LinkedIn RSS Podcast Newsletters Mobile About Privacy Policy Terms of Use AdChoices Copyright 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. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

Other News on Friday, 2 November 2012
Syrian rebels kill 28 soldiers, several executed |
Insight: Putin's Russia
Abbas hints has no right of return to home in Israel |
Greek journalist acquitted in Swiss accounts scandal |
Netanyahu rival blasts his obsession with Iran |
Venice hit by worst flooding in two years |
Greek court challenges pension reform plan |
Pakistani couple kill daughter who talked to a boy |
Peru cuts commercial fishing drastically on worries about stocks |
Microsoft pushes new Windows to developers |
Court in UK tells Apple to change statement on Samsung case |
LinkedIn beats expectations, raises full-year revenue view |
Toad Hall gets Wifi in the Willows with new app |
PayPal enters the holiday price-matching fray |
First iPad mini teardown reveals Samsung display |
Kardashian boosts X Factor ratings, but wins few fans |
Jodie Foster to get lifetime achievement award at Golden Globes |
Hunger Games sticks with director Lawrence for sequels |
Cablevision says Sandy power outage hit half of its customers |
Playboy Clubs to enter India, without the bunny costumes |
Rhode Island sues Schilling over failed 38 Studios deal |
Amy Winehouse wedding dress stolen: family foundation |
British millionaire pleads guilty in Iran missile scheme |
Second stealth jet puts China on path to top regional power: expert |
Strike at East African hub port of Mombasa enters second day |
Insight: Putin's Russia: more fragile than it looks |
Blind Chinese activist's brother says lawsuit rejected |
CIA officials in Libya made key decisions during Benghazi attacks |
Pigeons set China Congress security plans aflutter |
Japan to import rare earths from Kazakhstan: media |
Apple rolls out iPad mini in Asia to shorter lines |
Microsoft versus Google trial raises concerns over courtroom secrecy |
FTC staff recommends Google be sued over patents: source |
Japan's Sharp falls as losses mount, Sony picks up |
LinkedIn beats expectations, raises full-year revenue view |
Sony rises after it posts small profit, keeps annual guidance |
Blake Shelton dominates Country Music awards |
Jodie Foster to get lifetime achievement award at Golden Globes |
Judge allows R&B singer Chris Brown to do European tour |
Judge throws out lawsuit against Britney Spears, parents |
Suicide Silence singer Lucker dies in California motorcycle accident |
Syria army quit base on strategic Aleppo road |
Gunmen kill 18 in Pakistan bus attack: police |
Nigeria army kills 30 in raid on militant bastion: witnesses |
China to promote rising star in Bo Xilai's old stomping ground: sources |
Myanmar president signs long-awaited foreign investment law |
Islamists protest in Cairo, call for Islamic law |
Merkel seeks coalition unity for 2013 election challenges |
Ukraine opposition complains of stolen seats as count nears end |
Uganda says to pull out of Somalia over Congo charges |
Klingon goes boldly beyond Star Trek into pop culture |
Greece at new risk of being pushed off euro
Bodies of missing Tenn. mom, Jo Ann Bain, and daughter found
Female Breasts Are Bigger Than Ever
AMD Trinity Accelerated Processing Units Now in Volume Production
The Avengers (2012 film), made the second biggest opening- and single-day gross of all-time
AMD to Start Production of piledriver
Ivy Bridge Quad-Core, Four-Thread Desktop CPUs
Islamists Protest Lady Gaga's Concert in Indonesia
Japan Successfully Broadcasts an 8K Signal Over the Air
ECB boosts loans to 1 trillion Euro to stop credit crunch
Egypt : Mohammed Morsi won with 52 percent
What do you call 100,000 Frenchmen with their hands up
AMD Launches AMD Embedded R-Series APU Platform
Fed Should not Ignore Emerging Market Crisis
Fed casts shadow over India, emerging markets
Why are Chinese tourists so rude? A few insights

USD EUR - 1 year graph	VPN on MacOSX	BlogMeter 1.01