Tuesday, April 15, 2008

Putin to lead Russia's ruling party as premier

President Vladimir Putin on Tuesday agreed to become leader of Russia's ruling party in a significant shift of the political landscape three weeks before he hands power to successor Dmitry Medvedev.

Putin, who leaves the Kremlin after two terms on May 7, also confirmed he would become prime minister under Medvedev.

"With gratitude I accept the proposal of the party members and their leadership.... I am ready to take on the additional responsibility and head United Russia," he told a party congress in Moscow.

The 55-year-old ex-KGB officer's announcement, which was carried live on state-run television, signalled a reordering of Russia's political mix just before Medvedev takes over.

During his eight years in the Kremlin, Putin steadily centralised power, with United Russia his tool for ensuring loyalty of the parliament.

Becoming head of the party, which won a constitutional majority with 63 percent of the vote in December elections, will now hugely strengthen Putin's status as prime minister.

The development was likely to add to questions raised in Moscow and foreign capitals over who will really be in charge from next month -- the untested Medvedev or a powerful ex-president, turned prime minister and parliament leader Putin.

"Analysts and those in the media are still trying to figure out whose portrait will end up hanging in government offices across the country," commentator Konstantin Sonin wrote in Tuesday's Moscow Times daily.

Observers say that at minimum Putin is searching for ways to slow down his impending loss of authority to Medvedev.

"Putin will not start dealing with the trifles of party business... but the position in United Russia will give him one more anchor to hold on to power," the Vedomosti business daily commented Tuesday.

The party late Monday voted changes to its charter that would allow Putin to become chairman without actually holding membership. Delegates also decided to split the leadership, with Putin taking the chairmanship and Gryzlov the more technical ruling council.

Recruiting Putin appeared to be the logical next step for a party that has always been seen as a Kremlin creation tasked with turning the once combative parliament of the 1990s into a rubber stamp.

Gryzlov, whose pleading that Putin take his job is only the latest expression of loyalty, explained Monday just how close the outgoing president and dominant party were to each other.

"The eight presidential annual addresses delivered by Vladimir Putin are what define the 'Putin course' -- the course toward becoming a great power, a great Russia. And this is the programme of our party," he said.

A Deutsche Bank analysis for investors pointed to a Putin leadership of United Russia strengthening the future role of parliament.

"At the same time, being the head of United Russia would further strengthen Putin's role in post-2008 Russia, with the post of the head of the government being complemented by greater sway over the legislature," the bank said in the note for investors.

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