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President Putin will pay attention to business in his address. Analysts offer predictions about President Putin's eighth address

President Vladimir Putin will deliver his eighth (and very likely last) address to parliament on April 25. Putin will report on the national projects and set some objectives for the future: one of the most important objectives will be diversifying the economy.

President Vladimir Putin will deliver his eighth (and very likely last) address to parliament on April 25. This address will be Putin's "political testament," but he will strive to prove that he remains in control of the situation. Putin will report on the national projects and set some objectives for the future: one of the most important objectives will be diversifying the economy.

A substantial part of the address is likely to focus on the problems of greatest concern to the private sector and industry leaders: the first time they have received so much attention since the YUKOS affair.

Since Putin is not withdrawing from Russian politics, he continues to set objectives for the legislative branch and the executive branch. Since the purpose of Putin's period in office has been to establish Russia as a mighty superpower, he will outline ways to continue transforming this idea into reality.

Konstantin Simonov, general director of the National Energy Security Foundation: "In order to position Russia as an energy superpower, we need economic diversification - and Putin will speak of that." Simonov notes that this issue was discussed when Putin met with Russian Union of Industrialists and Entrepreneurs (RUIE) representatives in February; they argued that Russia needs to invest in processing industries, including oil refining. In the same context, Putin will probably have to say something about VAT cuts - a topic of intense debate in the business community. Another issue of concern to the private sector is ruble appreciation, and Putin is likely to mention this as well, although he has already expressed some anxiety about a substantially stronger ruble. According to a source close to the presidential administration, Putin will pay substantial attention to the problems of big business in Russia - although this has not been a major topic in his annual addresses since the YUKOS affair.

Part of the new address will be a report, says the source close to the presidential administration: Putin will cover progress on the national projects, especially health-care and affordable housing. The underperforming officials who haven't managed to meet 100% of the targets in last year's address will face a certain amount of criticism.

Valery Khomyakov, general director, National Strategy Council: "Putin is raising topics like anti-corruption efforts and the failure of administration reforms - and these will be the election campaign issues in 2007-08." The United Russia party has already drafted legislation that would make objectives set in presidential addresses binding for the parliament; so far, about half of the president's instructions are carried out.

Khomyakov predicts that Putin will also talk about foreign affairs. This will concern Russia's role in the former Soviet Union, as well as relations with the United States, where a presidential election is coming up soon: "Putin's criticism of the Bush Administration's policies should encourage the Democrats - they'll see that their president's policies are criticized even across the ocean."

Logically, this address should offer guidance to Putin's successor and report on the results of Putin's two terms in office. According to our sources, however, it won't sound like a farewell address; that option was considered, but dismissed as unsuitable. Putin has stated repeatedly that he will not seek a third term as president, but has also promised to remain in politics and find "a place in the ranks."

Independent political analyst Dmitri Oreshkin: "The address is sure to include a hint that it's too soon to write off Putin - he will remain in control of the situation. Putin will strive to convince everyone that he's not a lame duck. It will be an address with substantial goals for the future."

Source: "RBC Daily", April 23, 2007

Translated by Elena Leonova


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Analytical series “The Political compass”:

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