Date:06/02/2007 URL: http://www.thehindu.com/2007/02/06/stories/2007020602321300.htm

International

Speculation rife as Putin nears end of his second term

Vladimir Radyuhin

MOSCOW: A year before his second and last term runs out, Russian President Vladimir Putin said political consolidation and economic growth were the main problems for the coming power succession.

"I hope very much that all branches of authority realise their responsibility to the Russian nation and stand up to the task of consolidation, so that the Government will be able to work efficiently and resolve problems facing the country," Mr. Putin said addressing his annual news conference in the Kremlin. Russia is to elect a new Parliament in December 2007 and choose a new President in March 2008.

Mr. Putin's call for consolidation — made twice in the course of the 3.5-hour news conference — came against the backdrop of reports about growing power struggle in the Kremlin over the "problem of 2008", when Mr. Putin is to step down as per the Constitution, which allows only two straight presidential terms.

The so-called "siloviki" — senior officials in the security and law enforcement agencies — are reportedly opposed to Mr. Putin's plans to hand over power to "liberals" led by First Deputy Prime Minister Dmitri Medvedev, and want to amend the Constitution to allow Mr. Putin to stay for another four-year term.

Mr. Putin refused to name a possible presidential contender he might back in the coming election and said he will not reveal his preference before the election campaign gets underway at the end of 2007.

Mr. Medvedev and Defence Minister Sergei Ivanov — both very close to Mr. Putin — are tipped to run for President.

Asked about his main achievements as President Mr. Putin named restoring the country's territorial integrity, strengthening the political system and speeding up economic growth.

The Russian leader said the country's economy had turned the corner last year.

"2006 was the year of transition from the policy of stabilisation and saving to the policy of development," he said.

"While in previous years we had a net outflow of capital to the tune of $15, $20 or $25 billion, last year we saw a massive inflow of private investment in Russia — an unprecedented $41 billion, including $31 billion of FDI," Mr. Putin told a packed hall of over 1,200 Russian and foreign journalists.

He cited gross domestic product growth of 6.7-6.9 per cent last year. Russia paid off "practically all former Soviet debts," which stood at $165 billion in the mid-1990s, and accumulated the third largest foreign currency reserves in the world of more than $300 billion.