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Politics in Russia: power, lobby, conflicts. Issue No (44) 732

Politics in Russia: power, lobby, conflicts. Issue No (44) 732

October 20-26, 2008

Main tendencies of political week

Economic issues continued prevailing the last week agenda due to Russia’s involvement in negative processes occurring in the world. At the same time operative management of economic problems was getting more and more concentrated in Dmitry Medvedev’s hands, who had created the council for financial system development. This body could become another consultative entity of the president, if it did not include the FSB director and interior minister. It seems Dmitry Medvedev and Vladimir Putin shared the roles again considering the latest developments. The PM acts as the leader of optimists, who do not notice problems in the economy and insist on retaining the status quo, while the president expresses cautious concern about the developments. At the same time both tandem members show community of the fundamental assessment of the situation.

Economic problems started influencing the domestic politics more noticeably, including staff struggle. Last week deputy finance minister Sergey Storchak was released from custody at the initiative of the Investigation Committee. The formal reason for this was the completion of investigation of his case. However, the real reason is the worsening of the situation with debts of Russian companies. There is a serious danger that the assets of the raw materials sector may be obtained by western creditors following margin calls; thus, a necessity in Storchak as specialist in settling debts emerged. In its turn this strengthened positions of finance minister Alexey Kudrin, whose conservative financial policies provided for the accumulation of reserves for a rainy day.

Last week attempts to artificially start the wave of protests organized by the non-systemic opposition failed: actions in practically all cities attracted few people representing mainly ultra-left and ultra-liberal organizations. It seems that under the conditions of ‘soft landing’ of the economy and social sphere the population is not ready to participate in protests and prefers individual strategies of adapting to the situation not resorting to radical actions.

Major events October 20 - October 26, 2008

Event Winning side Defeated side Development Outlooks
Creation of the president’s council for developing financial system Dmitry Medvedev   President will head the working out of measures aimed at improving the situation in economy
Change in restraint for deputy finance minister Sergey Storchak Alexey Kudrin   Sharpening of relations between the finance ministry and Vnesheconombank is possible
New distribution of duties between deputy PMs is approved Dmitry Kozak Igor Shuvalov, Alexander Zhukov Kozak will get additional authority on supervising regions
Information is posted that the institution of warrant officers will be disbanded within the next year     The majority of warrant officers will become sergeants, so there will be no massive retirement of warrant officers
Preparation of the government’s decree on the rules of conducting anti-graft examination of regulatory and legal acts is completed Justice Ministry Public Chamber PC will attempt to get part of authority of anti-graft examination of legislation
Deputy economy minister Igor Manylov says the single state body for registering real estate will be created as a result of unification of the Federal Registration Service, Federal Agency for Registering Real Estate and Federal Agency of Geodesy and Cartography Ministry of Economic Development Federal Agency for Managing State Property (FAUGI) FAUGI head Yury Petrov will try to get part of authority of the disbanded entities
Gennady Sklyar is replaced with Alexey Malinin as RTRS head   Gennady Sklyar Malinin will speed up the process of transfer of domestic television to digital format
Mikhail Shvydkoy replaces Vladimir Pozner as president of the Russian Television Academy Mikhail Shvydkoy   Conflict between the academy and federal channels will be settled
Patriots of Russia and the Party of Peace and Unity declare about their intention to unite     This merger will not bring dividends to its participants
Vladlen Maximov, head of the Moscow city branch of SPS, declares about the branch’s intention to continue independent operations after the party’s liquidation     De jure the branch will be dissolved

Volume: 15 pages


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Other issues:
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Analytical series “The Political compass”:

Political power in Russia after presidential election
State Corporations in the Russian Economy
Political Results of 2007: Russia on the Eve of Power Shuffle
Political Landscape Ahead of the Parliamentary Election 2007
«Centers of influence» in the Russian politics
Leading Russian corporations and the executive power: interaction methods
Forecast of political developments after the presidential election in 2008

All reports for: 2009 , 2008 , 2007

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