Putin

Vladimir Putin, in the manner of a modern day Tsar, has launched a series of initiatives to mark his march back to the Kremlin. His most eye-catching proposal is to form a Eurasian Union, a Moscow-controlled EU for the post-Soviet space. Writing in Today’s Times (£), Russia’s strongman explains the benefits: a union would aid greater economic integration in the region and it would place a regional bloc on the other side of the negotiating table from the European Union. But, what are Putin’s real aims, beyond laying out an agenda for his presidential term? Steps could be taken to integrate the post-Soviet region; but, without domestic reforms in Russia, Ukraine, Kazakhstan and so on, the benefits of further economic integration will probably be minor.

The dramatic – some would say theatrical – exit of Alexei Kudrin as Russia’s finance minister couldn’t have come at a worst time. The world economy is incredibly fragile and oil prices are in flux. But is Kudrin, highly respected for his fiscal policies and a member of Putin’s inner circle, merely pushing for promotion? With the ruble slumping to a 28-month low yesterday, there are signs the market is worried over the loss of a finance minister who prudently curbed Russia’s budgetary excesses and far-sightedly built up its oil wealth funds.

President Dmitri Medvedev has named his successor: one Vladimir Putin. Reports from Moscow say that Medvedev will step aside and support the man he succeeded in elections next March. This turn of events is not particularly surprising and Putin is a certain victor: as Pavel Stroilov revealed on Coffee House last week, Putin has been practicing that singularly Russian art of eliminating the opposition. Stroilov also warned Western governments against falling into Putin’s embrace. Russia is forecast to grow very quickly in the next 30-odd years, retaining its spot in the G7 according to PwC’s recent research paper, The World in 2050.