15.12.08

Vladimir Putin frustrated some analysts' expectations and decided against becoming a party functionary i.e. against abandoning the government. He chose to shoulder responsibility for consequences of the economic crisis instead.

It could be a result of unwillingness to rearrange forces in the circles closest to him. After all, Putin had spent eight years arranging them to his liking. His report at United Russia convention makes it plain that Putin himself will carry out anti-crisis measures at least in the next couple of months.

Members of his team entrusted with major state corporations wouldn't want to see Putin go either. They reckon that conflicts over finances will be inevitable with Putin gone from the government. So, Putin has to stay on at least until February when the sums in question are scheduled to reach recipients.

There are, however, more fundamental reasons for Putin to remain in the government. Some sources imply that the Cabinet becomes increasingly more convinced that modernization of national economy is only possible if all liberalism in connection with its development is abandoned. The Cabinet believes that "controllable inflation" (infusion of economy with money) is precisely what Russia needs. Introduction of import-replacing technologies is another must. All these ideas are attributed to Belousov, Chief of the government's Department of Economy and Finances whose name is actually associated with Deputy Premier Igor Sechin.

According to analysts, Putin has faith in this transformation of Russian economy and sees it as the only way for Russia to stop being exporter of oil and gas and nothing else. Saturn Engines was nationalized within the framework of this policy, this Tuesday.

Analysts believe that Putin chose to remain the premier in order to personally carry out transformation of the national economy. When the president recently, he already transformed the political system.

Economists Putin trusts are said to be telling him that transformation of economy will be a rapid process and that Russia has money to last it seven years. Finance Minister Aleksei Kudrin objects to this transformation and claims that Russia's reserves will be depleted within three years. In a word, Putin will be taking certain risks. He must have taken possibility of failure into account. After all, Putin does have the vertical of executive state structures to rely on.

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Source: Argumenty Nedeli