Putin to return as Russia's president

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Putin to return as Russia's president

By Heritage and Guy Faulconbridge | Reuters – 1 hour 25 minutes ago

MOSCOW (Reuters) - Vladimir Putin declared on Saturday he planned to reclaim the

Russian presidency at March elections that could open the way for the former KGB

spy to rule until 2024.

The announcement, greeted by cheers at a congress of Prime Minister Putin's

ruling United Russia party, ended months of speculation over whether he or

President Dmitry Medvedev would run. The two have ruled in a power 'tandem'

since Putin was forced by the constitution to yield the presidency four years

ago after serving a maximum two consecutive terms.

" It is a great honor for me, " Putin said to a long standing ovation from

thousands of party members in a Moscow sports stadium after Medvedev proposed

his mentor return as president. " Thank you, I hope for your support. "

Putin, 58, described in leaked U.S. diplomatic cables as the " Alpha dog " in the

tandem, then left the stage and embraced Medvedev. He also proposed his younger

and more liberal protege replace him as prime minister after the March election

to lead a young reformist government.

Over 11 years, Putin has cultivated the image of a vigorous leader, filmed

riding bare chested, scuba diving and showing his judo skills. His policies,

crushing a Chechen separatist rebellion, taming super-rich businessmen and

bringing wayward regions to heel have similarly won him popularity.

But critics say his return to the Kremlin, virtually unopposed, could herald an

era of economic and political stagnation in the world's largest country.

MEDVEDEV TO HEAD PARTY LIST

In carefully choreographed scenes, Putin had earlier on Saturday proposed

Medvedev, 46, to lead United Russia's list of candidates for a parliamentary

election on December 4.

This will prepare Medvedev for a role in government. The move is also intended

to help reverse a decline in support for United Russia and boost its hopes of

maintaining its two-thirds majority in the State Duma lower house.

" I want to say directly: (Medvedev and I) reached an agreement between ourselves

long ago, several years ago already, on what to do in the future, on who should

do what, " Putin said.

" But both I and Dmitry Anatolyevich Medvedev believe that this is far from the

most important thing -- who will do what, who will sit in what place. What is

far more important is something else: how we will all work, what results we

achieve, and how the citizens of our country will relate to this. "

Opinion polls show other potential candidates, such as nationalist Vladimir

Zhirinovsky or Communist Gennady Zyuganov, have much less support and Putin will

easily be elected.

The main liberal opposition leaders such as former Prime Minister Mikhail

Kasyanov have only limited appeal nationwide and Kasyanov's party has been

barred from taking part in the parliamentary election.

The next president will be elected for six years and the constitution still

limits the head of state to a maximum of two straight terms -- meaning Putin

could be in power for 12 years.

Investors had been urging him to announce his plans because the political

uncertainty has deterred many from putting money into the $1.5 trillion economy

of the world's largest energy producer.

As president from 2000 to 2008, Putin oversaw an economic boom where household

incomes improved on the back of a rise in global oil prices and his tough

talking and macho image helped restore Russia's self confidence on the world

stage.

But Putin, who was once a KGB officer in East Germany, is widely seen as more

conservative than Medvedev and critics accuse him of riding roughshod over human

rights and restoring the power of the security forces.

ERA OF STAGNATION?

Some economists say his return to the Kremlin makes it less likely that Russia

will carry out much-needed changes such as pension reforms and reducing Russia's

dependency on natural resources. Oil and gas revenues make up half the budget.

But Weafer, a strategist at Troika Dialogue investment bank, said the need

for change made it impossible for Putin not to carry out reforms.

" There will not be a return to the government style and agenda priorities of the

previous Putin administration. That simply is not an option, " he said.

Some experts fear a return to the economic stagnation of the 1970s and 1980s

under Soviet leader Leonid Brezhnev if reforms are not carried out. Critics such

as former Soviet leader Mikhail Gorbachev have warned of the risk of unrest.

" For today the country must face a very gloomy outlook -- this is stagnation and

decay for another 12 years, this is the Brezhnev era revisited, " said Andrei

Piontkovsky, a political analyst at the Russian Academy of Sciences.

Russia, a nuclear power and permanent member of the United Nations Security

Council, also faces difficulties in ties with the United States, despite calls

for a " reset' in relations, and uncertainty following the upheaval in the Arab

world.

Putin's return to the presidency puts at risk the good reputation he established

among many Russians for restoring a degree of stability after President Boris

Yeltsin's chaotic presidency in the 1990s following the Soviet Union's collapse.

But senior political sources had said Putin was worried by a perception that

Medvedev did not have enough support among political and business leaders to

ensure stability if he tried to push ahead with political reforms as head of

state.

Other political sources suggested Putin simply did not trust Medvedev enough to

allow him another six years as president -- the term has been extended from four

years -- and has been disappointed with his performance.

" I fully agree (with Putin's decision to run). He is a very good and a wise

man, " said Denis, a Muscovite in his mid-20s.

But some Russians complain there is still a lack of democracy and media freedom

in Russia and that they have little say in who runs the country of 142 million

people.

" Our opinion does not count, as (the outcome) of both the current and the

previous elections was pre-determined, " said , a Muscovite in her 20s.

(Additional reporting by Gleb ksi, Steve Gutterman and ei Anishchuk,

Busvine and Grove; editing by Ralph Boulton)