Business As Usual in the Kremlin

Al Habtoor Information & Research
 

There may be a new titular head in the Kremlin but the Jury’s still out as to who has the final say on running the country. Does the newly inaugurated president Dmitri Medvedev have the game as well as the name, or does his former boss and mentor Vladimir Putin, to whom President Medvedev has awarded the post of Prime Minister, still pull the strings? Some analysts believe the pair plans to share power for the next 20 years by shifting it back and forth. Others believe Mr. Medvedev may be in the process of transitioning from Putin’s man into his own. So far, though, the difference between the two men is style rather than substance.

Arguably the most popular leader in Russia’s history, Vladimir Putin is a hard act to follow. Forced to relinquish his presidency due to constitutional constraints on its duration (no more than two successive terms), it’s by no means sure he has relinquished his powers. Nevertheless, for all intents and purposes President Medvedev holds the reins while Prime Minister Putin has the number two job.

When a sceptical journalist from Le Monde asked Putin the question everyone wants answered ‘who is Russia’s real leader?’ the former president answered definitively and unassumingly. “There is no ambiguity. The president, without question, has the final word, and the president, today, is Mr. Medvedev,” he said. “Russia is a presidential republic. We are not modifying the key role of the head of state in the political system…I am a humble servant that is concerned with economic and social affairs”.

The role of humble servant is certainly not one that suits Mr. Putin and it was one that was questioned when, as Prime Minister, he was received by the French President Nicolas Sarkozy as though he was still Russia’s head-of-state. Some observers wonder whether Putin will continue the prime ministerial tradition of reporting weekly to the president and if he will reverently hang Medvedev’s portrait on the wall of his new office. “I don’t need to bow to a portrait. There are other ways of building a relationship,” Putin is quoted as saying.

When Medvedev was asked whether Mr. Putin would be a transitional premier or whether he would be a fixture throughout his presidential terms, his response was diplomatic. “You know, I think we have a good alliance to solve the complicated problems faced by Russia,” he said. “We will work for as long as is needed to achieve the goals which stand before us”.

In theory, Medvedev could decide to sack his Prime Minister at any time but if he did, he would have to answer to a public that is still largely devoted to Mr. Putin and grateful to him for returning Russia to the status of a main international player as well as increasing GDP six-fold.

It’s still early days and Medvedev hasn’t yet had the opportunity of asserting himself on the global arena let alone rocking the boat of his predecessor’s policies. His personality may be slightly warmer than Putin’s and his veneer somewhat softer but until now his foreign agenda has been strictly on message.

When it comes Russia’s relationship with the US, which has been strained in recent years over NATO’s expansionism, US recognition of Kosovo’s self-declared independence and an American missile defence shield Washington’s wants stationed in Europe, Medvedev appears to be adopting a ‘wait-and-see approach’ to the US presidential election.

In the meantime Russian and American officials put on a friendly show for public consumption while everyone acknowledges that the opportunities for a real and lasting détente are diminishing and, instead, both sides have settled for a distinctly chilly peace.

He’s probably won few friends in Washington by suggesting the Russian rouble could stand as an alternative reserve currency to the weak dollar within Russia and the CIS region. And whereas Russia’s reserves were “mainly concentrated in dollars” the country now uses the “Euro practically on a parity basis with the US dollar” and “partially using other currencies as well, in particular, sterling”. President Medvedev regrets that “the entire international financial system hinges on the state of things in the dollar zone”.

Moreover, during his speech at the St. Petersburg Economic Forum, Medvedev blamed the US for the global economic crisis, saying, this occurred partly due to the “aggressive financial policies of the world’s biggest economy led not only to the failure of corporations. The majority of people on the planet have grown poorer”. He said the gap between America’s formal role in the world economy and its real capabilities was one of the key reasons for the crisis”.
 

Moscow’s relationship with Europe is less frosty. In June, President Medvedev told Reuters that Russia seeks a brief, legally-binding “serious” pact with the EU that would affirm that Russia is a part of Europe, preventing trade and business issues from being affected by political disputes. Putin has long wanted Russia to enjoy a greater political reach within Europe but, for its part, the EU fears that Moscow flush with oil/gas revenue will use its ever more precious energy resources to increase its political and economic clout.

On internal matters, Medvedev is keen to lower taxes, facilitate the owning of private property, cutting red tape, defending personal freedoms and fighting corruption.

With hardly a chink of light separating their policies, Medvedev and Putin both have simple backgrounds. Whereas Putin was the son of a factory worker and a naval conscript, Medvedev’s parents were university professors who lived in a 40 square meter apartment in a poor district of St. Petersburg (then Leningrad). Growing up, he said he dreamed of having enough money to buy jeans as well as Deep Purple and Pink Floyd records.

Both men are happily married parents, fitness freaks and pet owners (Putin has a dog, Medvedev a cat). Both graduated from Leningrad State University but there the similarity ends. Putin joined the KGB and rose up through the ranks, while Medvedev’s career path meandered through academia and politics until he was appointed chairman of Gazprom.

In the run-up to the presidential elections Putin and Medvedev campaigned together under banners reading: “Together we will be victorious”. Thanks to Putin’s following winning was easy. But the hard part is still to come.

Will they always get along? Will there be a power play? And what happens if Medvedev wants to change the script? Are they playing musical chairs and, if so, when will they swap? Those are questions only time and the vagaries of fate can answer.
 


| Home | Al Habtoor Group | Habtoor Hotels | Al Habtoor Automobiles |
|
Diamond Leasing | Emirates International School |

Copyright © 2007 Al Habtoor Group. All Rights Reserved.
Articles, excerpts, and translations may not be reproduced in any form
without written permission of the Al Habtoor Group.