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A losing battle

September 27, 2011

Russia's finance minister has resigned after a clash with President Dmitry Medvedev. Kudrin had opposed several government spending policies and made a short-lived stand against the Kremlin.

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Alexei Kudrin
Kudrin briefly stood up for himself, then he stood downImage: RIA Novosti

Russian Finance Minister Alexei Kudrin has quit his post after an argument with President Dmitry Medvedev. Kudrin's decision followed a one-day ultimatum issued by Medvedev earlier Monday.

"I have resigned. My resignation was accepted," Kudrin told the Reuters news agency.

The veteran finance minister and deputy prime minister said in the US on Sunday that he opposed Medvedev's economic policies - particularly the decision to increase military spending - and would not be able to serve under the current president if his planned job swap with Prime Minister Vladimir Putin goes ahead in the 2012 election. His comments prompted a furious challenge from Medvedev.

"Such statements appear improper…and can in no way be justified. No one has annulled the rules about internal discipline and speaking out of turn," Medvedev said at a meeting with officials, including Kudrin, in the city of Dimitrovgrad. "If, [Kudrin], you disagree with the course of the president, there is only one action and you know it: to resign."

A Sukhoi T-50 Stealth fighter jet makes a test flight near Zhukovsky Airfield outside Moscow
Kudrin said more military spending threatened Moscow's budgetImage: picture-alliance/dpa

As president, Medvedev does not have the authority to fire Kudrin from his cabinet post. Kudrin - a popular figure among Western investors who see him at the heart of Russian economic growth - was always considered a close ally of former president, current prime minister and expected returning president Vladimir Putin.

"Yes, it is indeed true that I have disagreements with you," he said in response to Medvedev's challenge. "I will take a decision on your proposal after consulting with the prime minister."

Kudrin submitted his resignation a few hours later.

Upper echelon job sharing

On Saturday, Putin and Medvedev confirmed the widespread rumors that the pair would swap seats for the 2012 election campaign. Putin's decision to run as prime minister in the 2008 election for the dominant United Russia party, with a virtual unknown in Medvedev campaigning for the presidency, immediately prompted speculation that the then-president was seeking a way to circumvent Russia's two-term limit for presidents by serving in another capacity for four years.

Despite hardly coming as a surprise, the announcement prompted criticism from other parties besides Kudrin.

The last leader of the Soviet Union, Mikhail Gorbachev, wrote in the Novaya Gazeta newspaper that Russia had reached an "impasse," adding that he didn't think Putin would be the man to implement change.

"We can assume that there will be no movement forward if there are not serious changes along the lines of a replacement of the entire system," Gorbachev wrote in the paper, which he partly owns. "Without this, we could lose six years. I think the future president needs to think about this very seriously."

In 2012, the presidential term will be extended from four to six years, meaning Putin is now eligible to serve as the country's leader until 2024. He took up the presidency in 2000 and has spent the past four years in charge of the Russian cabinet and government as prime minister.

Russian President Dmitry Medvedev and Prime Minister Vladimir Putin stand face-to-face
Putin and Medvedev's plan to essentially rotate Russia's top two jobs has met with criticismImage: picture alliance/dpa

'There are no elections in Russia'

Defeat for United Russia next year is practically impossible, as both the party and Putin enjoy widespread support. The country lacks a credible opposition and several groups that would oppose United Russia are often refused the permission to do so. For instance, the People's Freedom Party recently sought to register for upcoming parliamentary elections in December, but had their application denied.

"There are no elections in Russia," Ilja Jaschim, a member of the People's Freedom Party, told Deutsche Welle. He believes another Putin presidential tenure would exacerbate existing problems like poverty, administrative corruption and police brutality; his colleagues concur.

"The catalyst for civil unrest and possible revolutionary events will be Putin himself," said Boris Nemtzov, outspoken Kremlin critic and former deputy prime minister.

Boris Nemtsov
Nemtsov says dissatisfaction with Putin might spark a Russian revolutionImage: DW/A.Khan

Nemtzov is one of the leading figures in the People's Freedom Party, and he says Russia's increasingly dictatorial democracy could incite uprisings similar to those in North Africa and the Middle East this year.

Political scientist Leonid Radzihovsky, however, does not see any real threat to the popular Putin and his dominant party.

"Right now, Russia has neither the political parties, nor the civilian forces or mindset to trigger such an uprising," Radzihovsky said.

United Russia, meanwhile, argue Putin's presidential bid is an attempt to boost democracy in Russia, not constrain it.

"There's a simple logic behind this decision," said Sergey Markov, academic and United Russia parliamentarian. "Vladimir Putin is still [Russia's] most popular politician, and his intention to stand for the presidency will breathe life into the parliamentary elections."

Author: Igor Vinogradov, Mark Hallam (AFP, dpa, Reuters)
Editor: Martin Kuebler