Putin makes big changes to cabinet

MOSCOW: President Vladimir Putin replaced his foreign minister but kept his main economic reformers in place yesterday in a …

MOSCOW: President Vladimir Putin replaced his foreign minister but kept his main economic reformers in place yesterday in a government overhaul that slashed the number of ministries.

The overhaul underlined Mr Putin's power five days before presidential elections.

The departure of Mr Igor Ivanov, Moscow's foreign minister since 1998, prompted the postponement of today's planned ministerial talks in Dublin between the EU and Russia.

Mr Ivanov was replaced by Mr Sergei Lavrov, Russia's envoy to the UN since 1994 and a highly regarded diplomat. He speaks fluent English and French and is seen as a man capable of improving Moscow's ties with the West during a second term in office that Mr Putin is almost certain to win on Sunday.

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Most analysts were relieved that Finance Minister Mr Alexei Kudrin and Economics Minister Mr German Gref retained their jobs, seeing it as a sign of the Kremlin's commitment to much-needed economic reform.

"This simply shows that they have chosen the best people," said Mr Christopher Granville, a strategist with United Financial Group in London. "This is a pretty positive lineup for reform from the point of view of the financial markets."

Mr Sergei Ivanov, a close ally of Mr Putin's from their days in the KGB, stays on as Defence Minister, and Mr Sergei Shoigu remains Emergencies Minister.

Mr Putin also confirmed Mr Rashid Nurgaliyev as Interior Minister and handed Mr Viktor Khristenko - acting prime minister since last month - a powerful portfolio as Energy Minister, with responsibility for construction, industry, arms production and nuclear power. Mr Mikhail Fradkov, a former EU envoy who was made prime minister last week, introduced the ministers at a televised meeting.

"This is the team that, after the elections, will immediately and assuredly take up the job of strengthening the country and improving the quality of life of our citizens," Mr Putin said.

Mr Putin said the number of ministries would be slashed to 17 from 30, "to increase personal responsibility of each minister for his job".

The appointments completed a process begun a fortnight ago with the dismissal of prime minister Mr Mikhail Kasyanov and his cabinet. He had clashed with Mr Putin over economic policy and was seen as close to the tycoons who have come under increasing legal pressure in recent months.

Mr Andrei Piontkovsky, an analyst at Moscow's Centre for Strategic Studies, said little had changed in the new cabinet.

"All this shows is that the sacking of the government was just to get rid of Kasyanov," he said.

Daniel McLaughlin

Daniel McLaughlin

Daniel McLaughlin is a contributor to The Irish Times from central and eastern Europe