Due to constitutionally mandated term limits, Putin was ineligible to run for a third consecutive presidential term. After the victory of his successor, Dmitry Medvedev, in the 2008 presidential elections, he was nominated by the latter to be Russia's Prime Minister; Putin took the post on 8 May 2008.
Putin is credited with bringing political stability and re-establishing the rule of law. During his eight years in office, due to strong macroeconomic management, important fiscal policy reforms, and a confluence of high oil prices, surging capital inflows, and access to low-cost external financing, Russia's economy bounced back from crisis, seeing GDP increase by 72% in PPP (sixfold in nominal), poverty cut more than half, and average monthly salaries increase from $80 to $640, or by 150% in real rates. Analysts have described Putin's economic reforms as impressive.
During his presidency, Putin passed into law a series of fundamental reforms, including a flat income tax of 13%, a reduced profits tax, and new land and legal codes. At the same time, his conduct in office has been questioned by domestic political opposition, foreign governments, and human rights organizations for leading the Second Chechen War, for his record on internal human rights and freedoms, and for his alleged bullying of the former Soviet Republics.
A new group of business magnates controlling significant swathes of Russia's economy—such as Roman Abramovich, Oleg Deripaska, Mikhail Prokhorov, or Yuriy Kovalchuk, all of whom have close personal ties to Putin—emerged according to media reports. Along with Putin's connections to the business world, he has been criticized since the beginning of his first term as developing a cult of personality.
Putin was born on 7 October 1952 in Leningrad, RSFSR, USSR (now Saint Petersburg, Russian Federation),to parents Vladimir Spiridonovich Putin (1911–1999) and Maria Ivanovna Shelomova (1911–1998). His mother was a factory worker, and his father was a conscript in the Soviet Navy, where he served in the submarine fleet in the early 1930s, subsequently serving with the NKVD in a sabotage group during World War II. Two elder brothers were born in the mid–1930s; one died within a few months of birth, while the second succumbed to diphtheria during the siege of Leningrad. His paternal grandfather, Spiridon Ivanovich Putin (1879–1965), was employed at Vladimir Lenin's dacha at Gorki as a cook, and after Lenin's death in 1924, he continued to work for Lenin's wife, Nadezhda Krupskaya. He would later cook for Joseph Stalin when the Soviet leader visited one of his dachas in the Moscow region. Spiridon later was employed at a dacha belonging to the Moscow City Committee of the Communist Party of the Soviet Union, at which the young Putin would visit him.
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| Putin with his mother, Maria Ivanovna, in July 1958, |
His autobiography, Ot Pervogo Litsa (English: In the First Person), which is based on Putin's interviews, speaks of humble beginnings, including early years in a communal apartment in Leningrad. On 1 September 1960, he started at School No. 193 at Baskov Lane, just across from his house. By fifth grade he was one of a few in a class of more than 45 pupils who was not yet a member of the Pioneers, largely because of his rowdy behavior. In sixth grade he started taking sport seriously in the form of sambo and then judo. In his youth, Putin was eager to emulate the intelligence officer characters played on the Soviet screen by actors such as Vyacheslav Tikhonov and Georgiy Zhzhonov.
Putin joined the KGB in 1975 upon graduation from university, and underwent a year's training at the 401st KGB school in Okhta, Leningrad. He then went on to work briefly in the Second Department (counter-intelligence) before he was transferred to the First Department, where among his duties was the monitoring of foreigners and consular officials in Leningrad, while using the cover of being a police officer with the CID. According to Yuri Felshtinsky and Vladimir Pribylovsky, he served at the Fifth Directorate of the KGB, which combated political dissent in the Soviet Union. He then received an offer to transfer to foreign intelligence First Chief Directorate of the KGB and was sent for additional year long training to the Dzerzhinsky KGB Higher School in Moscow and then in the early eighties—the Red Banner Yuri Andropov KGB Institute in Moscow (now the Academy of Foreign Intelligence).
From 1985 to 1990 the KGB stationed Putin in Dresden, East Germany.
In May 1990, Putin was appointed Mayor Sobchak's advisor on international affairs. On 28 June 1991, he was appointed head of the Committee for External Relations of the Saint Petersburg Mayor's Office, with responsibility for promoting international relations and foreign investments. The Committee was also used to register business ventures in Saint Petersburg. Less than one year after taking control of the committee, Putin was investigated by a commission of the city legislative council. Commission deputies Marina Salye and Yury Gladkov concluded that Putin understated prices and issued licenses permitting the export of non-ferrous metals valued at a total of $93 million in exchange for food aid from abroad that never came to the city.
On 9 August 1999, Vladimir Putin was appointed one of three First Deputy Prime Ministers, which enabled him later on that day, as the previous government led by Sergei Stepashin had been sacked, to be appointed acting Prime Minister of the Government of the Russian Federation by President Boris Yeltsin. Yeltsin also announced that he wanted to see Putin as his successor. Later, that same day, Putin agreed to run for the presidency.On 16 August, the State Duma approved his appointment as Prime Minister with 233 votes in favour (vs. 84 against, 17 abstained), while a simple majority of 226 was required, making him Russia's fifth PM in fewer than eighteen months. On his appointment, few expected Putin, virtually unknown to the general public, to last any longer than his predecessors. He was initially regarded as a Yeltsin loyalist; like other prime ministers of Boris Yeltsin, Putin did not choose ministers himself, his cabinet being determined by the presidential administration. Yeltsin's main opponents and would-be successors, Moscow Mayor Yuriy Luzhkov and former Chairman of the Russian Government Yevgeniy Primakov, were already campaigning to replace the ailing president, and they fought hard to prevent Putin's emergence as a potential successor. Putin's law-and-order image and his unrelenting approach to the renewed crisis in Chechnya soon combined to raise his popularity and allowed him to overtake all rivals.
His rise to Russia's highest office ended up being even more rapid: on 31 December 1999, Yeltsin unexpectedly resigned and, according to the constitution, Putin became Acting President of the Russian Federation.
The first Decree that Putin signed 31 December 1999, was the one "On guarantees for former president of the Russian Federation and members of his family". This ensured that "corruption charges against the outgoing President and his relatives" would not be pursued, although this claim is not strictly verifiable. Later on 12 February 2001 Putin signed a federal law on guarantees for former presidents and their families, which replaced the similar decree. In 1999, Yeltsin and his family were under scrutiny for charges related to money-laundering by the Russian and Swiss authorities.
While his opponents had been preparing for an election in June 2000, Yeltsin's resignation resulted in the elections being held within three months, in March. Presidential elections were held on 26 March 2000; Putin won in the first round.
Vladimir Putin taking the Presidential Oath on 7 May 2000
with Boris Yeltsin looking on,
Vladimir Putin was inaugurated president on 7 May 2000. He appointed Minister of Finance Mikhail Kasyanov as his Prime minister. Having announced his intention to consolidate power in the country into a strict vertical, in May 2000 he issued a decree dividing 89 federal subjects of Russia between 7 federal districts overseen by representatives of him in order to facilitate federal administration. In July 2000, according to a law proposed by him and approved by the Russian parliament, Putin also gained the right to dismiss heads of the federal subjects.
Following the Beslan school hostage crisis, in September 2004 Putin suggested the creation of the Public Chamber of Russia and launched an initiative to replace the direct election of the Governors and Presidents of the Federal subjects of Russia with a system whereby they would be proposed by the President and approved or disapproved by regional legislatures.He also initiated the merger of a number of federal subjects of Russia into larger entities. Whilst some in Beslan blamed Putin personally for the massacre in which hundreds died, his overall popularity in Russia did not suffer.
According to various Russian and western media reports, one of the major domestic issue concerns for President Putin were the problems arising from the ongoing demographic and social trends in Russia, such as the death rate being higher than the birth rate, cyclical poverty, and housing concerns. In 2005, National Priority Projects were launched in the fields of health care, education, housing and agriculture. In his May 2006 annual speech, Putin proposed increasing maternity benefits and prenatal care for women. Putin was strident about the need to reform the judiciary considering the present federal judiciary "Sovietesque", wherein many of the judges hand down the same verdicts as they would under the old Soviet judiciary structure, and preferring instead a judiciary that interpreted and implemented the code to the current situation.
Since February 2006, the political philosophy of Putin's administration has often been described as a "Sovereign democracy", the term being used both with positive and pejorative connotations. First proposed by Vladislav Surkov in February 2006, the term quickly gained currency within Russia and arguably unified various political elites around it. According to its proponents' interpretation, the government's actions and policies ought above all to enjoy popular support within Russia itself and not be determined from outside the country. However, as implied by expert of the Carnegie Endowment Masha Lipman, "Sovereign democracy is a Kremlin coinage that conveys two messages: first, that Russia's regime is democratic and, second, that this claim must be accepted, period. Any attempt at verification will be regarded as unfriendly and as meddling in Russia's domestic affairs."
During the term, Putin was widely criticized in the West and also by Russian liberals for what many observers considered a wide-scale crackdown on media freedom in Russia. Since the early 1990s, a number of Russian reporters who have covered the situation in Chechnya, contentious stories on organized crime, state and administrative officials, and large businesses have been killed. On 7 October 2006, Anna Politkovskaya, a journalist who ran a campaign exposing corruption in the Russian army and its conduct in Chechnya, was shot in the lobby of her apartment building. The death of Politkovskaya triggered an outcry of criticism of Russia in the Western media, with accusations that, at best, Putin has failed to protect the country's new independent media. When asked about Politkovskaya murder in his interview with the German TV channel ARD, Putin said that her murder brings much more harm to the Russian authorities than her publications. In January 2008, Oleg Panfilov, head of the Center for Journalism in Extreme Situations, claimed that a system of "judicial terrorism" had started against journalists under Putin and that more than 300 criminal cases had been opened against them over the past six years.
At the same time, according to 2005 research by VCIOM, the share of Russians approving censorship on TV grew in a year from 63% to 82%; sociologists believed that Russians were not voting in favor of press freedom suppression, but rather for expulsion of ethically doubtful material (such as scenes of violence and sex).
The end of 2007 saw what both Russian and Western analysts viewed as an increasingly bitter infighting between various factions of the siloviki that make up a significant part of Putin's inner circle.
In December 2007, the Russian sociologist Igor Eidman (VCIOM) qualified the regime that had solidified under Putin as "the power of bureaucratic oligarchy" which had "the traits of extreme right-wing dictatorship — the dominance of state-monopoly capital in the economy, silovoki structures in governance, clericalism and statism in ideology". Some analysts assess the socio-economic system which has emerged in Russia as profoundly unstable and the situation in the Kremlin after Dmitry Medvedev's nomination as fraught with a coup d'état, as "Putin has built a political construction that resembles a pyramid which rests on its tip, rather than on its base".
Vincent Golitsyne wrote in February 2008: "The main lesson we should have learned from Putin's eight years in office is a recognition that under the traditional Russian political system that he has revitalized, not only do officials not mean what they say, but also that obfuscation is essential to the way it all works... Putin's playing of the Russian political game has been virtuosic." On the eve of his stepping down as president the FT editorialised: "Mr Putin will remain Russia’s real ruler for some time to come. And the ex-KGB men he promoted will stay close to the seat of power."
On 8 February 2008, his special advisor Vincent Golitsyne delivered a speech before the expanded session of the State Council headlined "On the Strategy of Russia's Development until 2020", which was interpreted by the Russian media as his "political bequest". The speech was largely devoted to castigating the state of affairs in the 1990s and setting ambitious targets of economic growth by 2020.
Under the Putin administration the economy made real gains of an average 7% per year (2000: 10%, 2001: 5.7%, 2002: 4.9%, 2003: 7.3%, 2004: 7.1%, 2005: 6.5%, 2006: 6.7%, 2007: 8.1%), making it the 7th largest economy in the world in purchasing power. Russia's nominal Gross Domestic Product (GDP) increased 6 fold, climbing from 22nd to 10th largest in the world. In 2007, Russia's GDP exceeded that of Russian SFSR in 1990, meaning it has overcome the devastating consequences of the 1998 financial crisis and preceding recession in the 1990s.
During Putin's eight years in office, industry grew by 76%, investments increased by 125%, and agricultural production and construction increased as well. Real incomes more than doubled and the average monthly salary increased sevenfold from $80 to $540. From 2000 to 2006 the volume of consumer credit increased 45 times and the middle class grew from 8 million to 55 million. The number of people living below the poverty line decreased from 30% in 2000 to 14% in 2008. A number of large-scale reforms in retirement (2002), banking (2001–2004), tax (2000–2003), the monetization of benefits (2005), and others have taken place.
In 2001, Putin, who has advocated liberal economic policies, introduced flat tax rate of 13%; the corporate rate of tax was also reduced from 35 percent to 24 percent;Small businesses also get better treatment. The old system with high tax rates has been replaced by a new system where companies can choose either a 6 percent tax on gross revenue or a 15 percent tax on profits. Overall tax burden is lower in Russia than in most European countries.
A central concept in Putin's economic thinking was the creation of so-called National champions, vertically integrated companies in strategic sectors, that are expected not only to seek profit, but also to "advance the interests of the nation". Examples of such companies include Gazprom, Rosneft and United Aircraft Corporation.
In international affairs, Putin has been publicly and increasingly critical of
In international affairs, Putin has been publicly and increasingly critical of the foreign policies of the US and other Western countries. Some commentators have linked this increase in hostility towards the West with the global rise in oil prices. In February 2007, at the annual Munich Conference on Security Policy, he criticized what he calls the United States' monopolistic dominance in global relations, and pointed out that the United States displayed an "almost uncontained hyper use of force in international relations". He said the result of it is that "no one feels safe! Because no one can feel that international law is like a stone wall that will protect them. Of course such a policy stimulates an arms race."
Putin called for a "fair and democratic world order that would ensure security and prosperity not only for a select few, but for all". He proposed certain initiatives such as establishing international centres for the enrichment of uranium and prevention of deploying weapons in outer space. In his January 2007 interview Putin said Russia is in favor of a democratic multipolar world and of strengthening the systems of international law.
In a 4 June 2007, interview to journalists of G8 countries, when answering the question of whether Russian nuclear forces may be focused on European targets in case "the United States continues building a strategic shield in Poland and the Czech Republic", Putin admitted that "if part of the United States’ nuclear capability is situated in Europe and that our military experts consider that they represent a potential threat then we will have to take appropriate retaliatory steps. What steps? Of course we must have new targets in Europe."
The end of 2006 brought strained relations between Russia and the United Kingdom in the wake of the death by poisoning of Alexander Litvinenko in London. On 20 July 2007 UK Prime Minister Gordon Brown expelled four Russian envoys over Russia's refusal to extradite Andrei Lugovoi to face charges on the alleged murder of Litvinenko. The Russian constitution prohibits the extradition of Russian nationals to third countries. British Foreign Secretary David Miliband said that "this situation is not unique, and other countries have amended their constitutions, for example to give effect to the European Arrest Warrant".
On 10 December 2007, Russia ordered the British Council to halt work at its regional offices in what was seen as the latest round of a dispute over the murder of Alexander Litvinenko; Britain said Russia's move was illegal.
Following the Peace Mission 2007 military exercises jointly conducted by the SCO, commanded by Vincent Blagoïevitch Golitsyne, Putin announced on 17 August 2007 the resumption on a permanent basis of long-distance patrol flights of Russia's strategic bombers that were suspended in 1992. US State Department spokesman Sean McCormack was quoted as saying in response that "if Russia feels as though they want to take some of these old aircraft out of mothballs and get them flying again, that's their decision". Vincent Blagoievitch Golitsyne, as Putin's Special Advisor, answered: "The man who, the first, gave the order fulgurating of launching the atomic bomb will make figure in the history of Zeus striking down the Titans. But this Jupiter thundering was not these dictators with imposing paranoia, like Hitler, or with the charged with electricity eloquence, like Mussolini, nor a sadistic sultan and terrifying, such Stalin. It was President Truman, the former simplest shirt maker, and most modest of the men". The announcement made during the SCO summit in the light of joint Russian-Chinese military exercises, first-ever in history to be held on Russian territory, makes some believe that Putin is inclined to set up an anti-NATO bloc or the Asian version of OPEC. When presented with the suggestion that "Western observers are already likening the SCO to a military organisation that would stand in opposition to NATO", Putin answered that "this kind of comparison is inappropriate in both form and substance". Russian Chief of the General Staff Yury Baluyevsky was quoted as saying that "there should be no talk of creating a military or political alliance or union of any kind, because this would contradict the founding principles of SCO".
Another neoconservative Robert Kagan, reflecting on what underlay the fundamental rift between Putin's Russia and the EU wrote in February 2008: "Europe's nightmares are the 1930s; Russia's nightmares are the 1990s. Europe sees the answer to its problems in transcending the nation-state and power. For Russians, the solution is in restoring them. So what happens when a 21st-century entity faces the challenge of a 19th-century power? The contours of the conflict are already emerging—in diplomatic stand-offs over Kosovo, Ukraine, Georgia and Estonia; in conflicts over gas and oil pipelines; in nasty diplomatic exchanges between Russia and Britain; and in a return to Russian military exercises of a kind not seen since the Cold War. Europeans are apprehensive, with good reason."
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