Putin in control as Russia names cabinet
MOSCOW (Reuters) - Russian President Dmitry Medvedev onMonday appointed three of Vladimir Putin's closest aides to runhis administration, ensuring Putin retains his strong grip onpower despite leaving the Kremlin.
Putin, who moves to become prime minister, also announced acabinet which combined key ministers and powerful figures intowhat analysts said was an unusually strong team.
Medvedev and Putin have pledged to rule Russia together inan unprecedented "tandem" arrangement. But many analysts saidthe appointments confirmed that Putin remains the real boss, atleast for now.
Key Putin ally Sergei Naryshkin -- a former governmentchief of staff reported by Russian media to have links to thesecurity services -- was named head of Medvedev's Kremlinadministration, while one of Putin's main ideologues VladislavSurkov becomes the first deputy chief of staff.
"I don't think the appointment of Sergei Naryshkin as headof the presidential administration is the decision of DmitryMedvedev," said independent political analyst Georgy Bovt.
"I think it is the decision of Vladimir Putin and I don'tactually see any appointments apart from (new Justice MinisterAlexander) Konovalov that you can put down exclusively toDmitry Medvedev."
Surkov is credited with partly formulating Russia's"sovereign democracy" system of government which some observerssay is autocratic and Medvedev has criticised in the past.
Alexei Gromov, Putin's former press secretary, will alsostay in the Kremlin as deputy chief of the presidential staff.
Putin re-appointed his long-serving finance minister,Alexei Kudrin, seen by markets as a guarantor of Russia'sfree-market policies. Sergei Lavrov, the public face ofMoscow's assertive, anti-Western diplomacy, also stayed on asforeign minister.
"While planning the optimisation of federal executiveauthorities, we aimed to increase the efficiency of the statemachinery and its personnel," Putin told reporters as heannounced his nominations.
Russia's stock market, which surged last week on thesuccessful conclusion of the political transition, postedfurther gains of 1.5 percent on Monday.
TWO KEY FIGURES
Two key figures from the all-powerful Kremlinadministration moved with Putin to take up new roles in theWhite House, the riverside seat of Russia's government.
Sergei Sobyanin, a former governor of the oil-rich regionof Tyumen who headed the Kremlin administration under Putin,becomes the new premier's chief of staff and one of five deputyprime ministers.
Igor Sechin, formerly a deputy head of the presidentialadministration and a key Kremlin hardliner with close ties tothe security services, becomes another of the five deputy primeministers, tasked with overseeing industry and energy.
Analysts said the combination of key Kremlin figures andinfluential serving ministers made Putin's administrationunusually strong. Under Russia's 1993 constitution, presidentshave dominated with prime ministers usually being weak figures.
State-controlled oil major Rosneft strongly outperformedthe stock market, with gains of 4.5 percent, in a performancewhich underlined the close ties between the Kremlin andbusiness.
Traders attributed the rise to the promotions of Sechin andNaryshkin, who were also Rosneft chairman and deputy chairmanrespectively.
Former prime minister and ex-collective farm boss ViktorZubkov continued in the cabinet as one of two first deputyprime ministers -- the most senior posts after Putin's. Theother was Igor Shuvalov, who was Putin's top economic aide atthe Kremlin.
"Overall, there are no surprises," said YevgenyGavrilenkov, chief economist at Moscow brokerage Troika Dialog.
"It is no doubt a positive sign that Kudrin, known for hisconservative policies, has stayed ... It is logical that peoplewho worked with Putin in the presidential administration movedto the government."
Among the few major changes were the removal of TelecomsMinister Leonid Reiman, who has repeatedly denied media reportsthat he indirectly owns a major stake in Russia's number threemobile operator Megafon.
Medvedev's other two key appointments were the naming offormer FSB spy service chief Nikolai Patrushev, a Putin ally,to run Russia's powerful Security Council and the promotion ofFSB deputy chief Alexander Bortnikov to replace Patrushev.
Bortnikov was previously head of the FSB in Putin's homecity of St Petersburg.
Under Russia's constitution, the prime minister proposescabinet names to the president, who must approve them beforethey are final.
(Additional reporting by Guy Faulconbridge and JamesKilner; Writing by Michael Stott; Editing by Stephen Weeks)