Thursday, July 14, 2016


The Power Vertical

The 2012 Shadowboxing Intensifies

Vladimir Putin (right) and Dmitry Medvedev
Vladimir Putin (right) and Dmitry Medvedev
And here we go again.

In a commentary in "Vedomosti" on Wednesday, Igor Yurgens of the Institute of Contemporary Development and Yevgeny Gontmakher of the Institute of Global Economy and International Relations appealed to President Dmitry Medvedev to openly declare his intention to run for a second term.

The two Medvedev allies also argued that Russia would face a massive economic crisis and social tensions if Vladimir Putin returned to the Kremlin.

Literally hours after the Yurgens and Gontmakher commentary appeared, Reuters moved a story, citing anonymous officials, claiming that Putin had already decided to run for president in 2012.

Reuters cited one of the officials as saying that Putin was "troubled by the perception that his protege, whom he has known for more than two decades, did not have sufficient support among the political and business elite or the electorate to ensure stability if he pushed ahead with plans for political reform." Another official claimed that "an attempt by Medvedev to assert his authority in recent months had unsettled Putin, but the two leaders communicated well on a regular basis."

This, of course, was more than enough to set off another round of the-tandem-is-feuding-oh-my-oh-my! hand wringing.

In a piece today, "Nezavisimaya gazeta" spoke to the usual stable of Moscow pundits to get a handle on what is really going on.

Gleb Pavlovsky of the Effective Politics Foundation told the daily that the tension that has always existed among Putin and Medvedev's respective teams is now spilling over to the principles -- and that society was getting increasingly impatient with the drawn-out drama:

What happened yesterday was but another exchange of blows due to the growing tension within the tandem. This tension has already become a problem for participants in the tandem. They cannot even settle principal issues and work out a common political program in order to alleviate uncertainty. That's why Putin and Medvedev are ever on the lookout for ways to expand theirroom for maneuver. That is why they choose all sorts of quixotic means for that like Chinese media outlets and Reuters...
 
All these indirect signals indicate existence of illusions both politicians entertain. They think that they themselves will choose the moment when they make the rest of the country happy with the announcement that everybody has been waiting for. That's an illusion. They do not see how the situation is changing. Six month ago, the whole country was waiting for this announcement with trust and impatience. These days, the country is waiting with distrust, irritation, and apprehension. Natural coalitions that formed around participants in the tandem disintegrated and deteriorated into teams of neurotics.

Aleksei Malashenko of the Carnegie Moscow Center, meanwhile, downplayed the whole affair. "It was announced on countless occasions already that Medvedev must run for president. It was also denounced more than once that he should remain president," Malashenko told "Nezavisimaya gazeta." "In any event, there is no way to say what will happen. All of this is guesswork."

Meanwhile, as I blogged earlier in the week, Putin's Popular Front is drafting a platform for State Duma elections in December that appears to be moving in the direction of (mild and tightly controlled) political reform that Medvedev has long been calling for.

In an article in today's edition of "Novaya gazeta," political analyst Andrey Kolesnikov sarcastically noted the convergence:

Vladimir Putin, has entered the PR field of Dmitriy Medvedev: The place where "freedom is better than lack of freedom." And he has assumed strategic command heights in it. That is, the prime minister is now also the main democrat in the country, ready to share responsibility with the people for the troubles that the 6 years of the next presidential term may bring. He intends to give the people even more freedom than Medvedev.

The conventional wisdom in the Moscow punditocracy appears to be moving in the direction of Putin returning. For now, I am sticking to my assumption that Plan A is still for Medvedev to remain president and for Putin to remain in charge as National Leader (recognizing, of course, that Plan A can easily be abandoned for Plan B).

What I suspect happened yesterday was that the Medvedev and Putin teams, which (as Pavlovsky suggested) are becoming increasingly jittery, engaged in a bit of shadow boxing via the media.

In any event, I suspect we will soon see photographs of the smiling tandem hanging out together and enjoying some kind of fun outdoor activity.

-- Brian Whitmore

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Tags: Putin-Medvedev tandem

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Comments
     
by: Ivan from: Markov
July 29, 2011 00:45
I am also starting to think that Plan A is being slowly abandoned in favor of Plan B, which will actually be more democratic (Putin and Medvedev fighting against each other) but my prediction will be wrong in that case :)

The fact pundits are so worried that "all of this is guesswork" is telling us that Russian people are truly unaccustomed to real democracy as the "guesswork" is really how it should be.

I honestly tell you that Power Vertical is the best blog for Russian politics from western perspective, but it seems to me most people are used to read FP, NYT, WP (mainstream and basic) to form their foreign policy opinion so it will be hard for your Facebook page to take off. You will be better off selling your analysis to investment funds (like mine) thinking about investing in Russia, because most of Russian stocks have political risks "priced in" but those who "priced in" the risks have no idea about real political risks in Russia :)
In Response

by: SAmy from: Somwhere
August 02, 2011 19:39
In order to analyze Russia, you need to either have been born in Russia or live in Russia for a long time. You cannot possibly understand this country by being a "big investor", following it from safe distance, by watching "unbiased" foreign policy news reporting in EU (ridiculous statement as any I've read on the internet), or by reading blogs.... Hence the naive comments about Putin's "liberalization", "moving to the left" etc. You are 2 foreigners who definitely do not understand Russia or the functioning of a mind of a senior career KGB cadre.

by: Ivan from: Markov
July 30, 2011 14:41
Another plausible theory (from Timothy Post) that supports Putin against Medvedev campaign:

"I would venture to guess that Putin would take Alexei Kudrin as his Prime Minister and Medvedev would run with Mikael Prokhorov. Putin with United Russia (People's Front) and Medvedev with Right Cause. Such a scenario would do wonders to change international perceptions of Russia and help rebrand Russia.

My prediction is that Putin would win the election and Medvedev would then take-over the Directorship of Skolkovo from Vekselberg. Then expect Putin to take a hard turn to the left. Putin's current legacy is stellar in Russia but less than lackluster around the world (think Quadriga award in Germany and ABB's comments in Norway). Putin will liberalize Russia but he may take 12 years to do it.

PS: Expect that MBK and Lebedev to be released from prison before the election in March 2012."
In Response

by: Brian Whitmore from: Prague
August 01, 2011 16:39
Thanks for your constructive comments Ivan! I'm not quite ready to abandon my opinion on what Plan A is at this point. But one thing I have learned in following Russia over the years is to expect the unexpected -- and to be ready to adjust one's own analytical narrative accordingly.

If you're not doing so already, why not follow the Power Vertical on Twitter and join the Facebook page?
In Response

by: Ivan from: Markov
August 01, 2011 21:12
Thank you Brian. I am not on your Facebook page because I do not have a Facebook (or Twitter) account and do not plan to open one (too much distraction), sorry :) Besides, I prefer not to reveal my name (sorry RFE/RL my name is not Ivan from Markov) because I am not brave enough to enter political discussions openly. I am worried that in 10 years or so I could read my archived comments which I would not like and could possibly even hurt me in some way. Newspaper articles in the past would go away after some time but online sites keep a long history, so I guess you need to be careful as well ;) I am a fairly big investor and that is my main interest when following politics. For example, two big Russian companies are in my portfolio so my interests are clear - I want to see Russia to have a growing economy, a functional society, to have a stable government and that there are no revolutions. That would reduce political risks priced in the Russian stocks I hold and could translate into (larger than so far) profits for me.

I completely agree with your "to expect the unexpected - and to be ready to adjust one's own analytical narrative accordingly" and since the elections will be held soon, I follow your blog closely (reading Russian press is not an option since I can't read Russian). It seems to me that Putin reads (indirectly) what people say in the press and here on the internet and he understands that gradual liberalization will have to occur. I am fairly certain that he actively encouraged Prokhorov to join politics (I like his approach but I am not sure if electorate would like it) since he fixed issues for him in France, he met with him for Yo-Mobile launch, he skied with him in Courchevel, etc and that tells you Putin understands liberalization must occur and I believe a liberal Prime Minister (Kudrin or Prokhorov) would be in that direction.

By the way, I spent several years in the US (NYC) in the financial industry when I was younger and still closely follow American politics even though I live in the EU. I have no illusions that there is a large amount of foreign policy propaganda and bias in both US and Russian press (I admit more in Russia but still a lot in the US while the least in the EU) and filtering out propaganda, bias and all kinds of agendas is not easy. It is actually very frustrating and I often think "do you really think anyone intelligent would buy this" but unfortunately most people do buy it.

Israel-Iran conflict is probably inevitable and that is another topic I follow (and which by the way has absolutely huge effect on US-Russia, US-Israel and most of all Russia-Israel relations since it is an existential issue for Israel).

Disclaimer: Very often it is not understood well that interests of investors and general population are sometimes conflicting. Investors are interested in cheap labor and general population is interested in high wages. Investors are interested in profit (even if it comes from a communist country like China) and general population is interested in liberty. Therefore my comments may be out of touch with what people really want.

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The Power Vertical is a blog written especially for Russia wonks and obsessive Kremlin watchers by Brian Whitmore. It offers Brian's personal take on emerging and developing trends in Russian politics, shining a spotlight on the high-stakes power struggles, machinations, and clashing interests that shape Kremlin policy today. Check out The Power Vertical Facebook page or