Power Struggle in Russia?

By: EW News Desk Team   Date: 14 July 2011

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EconomyWatch, News Desk Team

 

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14 July 2011

Top Russian business leaders from 27 leading companies were caught by surprise on Monday when a discussion over Russia’s investment climate with President Dmitry Medvedev turned into a political campaign for Medvedev to remain in office – as the Russian President prepares for a possible confrontation with his predecessor and former mentor, Prime Minister Vladimir Putin, in next March’s presidential elections.

According to Russian Financial Daily Vedomosti, the majority of the Russian tycoons present at the meeting were shocked when Medvedev informed them that they would soon have to decide on where their allegiances lied – with him or with former President Putin.

“It was so unexpected that I simply went numb,” said an unnamed businessman to the Russian paper. Another unidentified source told Vedomisti that Medvedev had subtly presented an ultimatum to those present.

"The president delicately and unequivocally gave us to understand that the time has come for the business community to decide who it wants to see as the next president – Medvedev or Putin,” said a businessman cited by Reuters.

During the meeting, the market-friendly Medvedev had apparently also expressed the contrasts between his own economic plan of privatisation and liberalisation, versus that of the more statist and conservative Putin.

Similarly at a showcase economic summit last month, Medvedev warned that Russia would face stagnation if it failed to modernise its resource-reliant economy and curb the state's dominant role – seen to be a hallmark of Putin's rule.

According to The Financial Times, Medvedev is keen on a second term as President though most observers believe that Putin would greatly desire to return to his former job.

Medvedev owes his current position as head of state to Putin, who installed Medvedev as his successor after a constitutional ban denied Putin the opportunity to run for a third straight term in 2008. The pair is often seen to be inseparable – with Medvedev commonly described to be nothing more than a puppet and placeholder for Putin.

As such, any sign of discord between the two Russian leaders often stirs up a minor media frenzy in Russia. However, as Vedomisti mentioned and Spero News pointed out, “not everyone at the meeting interpreted Medvedev's comments in the same way. One participant was quoted as saying that Medvedev's comments were ‘quite vague’ and over-interpreted by others present.”

Even so, comments made by Russian Finance Minister Alexei Kudrin last month appear to have undermined Medvedev’s current position. Kudrin told reporters after a government meeting that, “there is a possibility of a new president and a new government…who will certainly balance these decisions.”


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