Putin reshuffle sparks speculation over succession

Russian President Vladimir Putin promoted his two closest allies - his chief-of-staff and his Defence Minister - in a government reshuffle yesterday that made both of them strong contenders to succeed him in 2008.

In televised comments, Mr Putin said chief Kremlin aide Dmitry Medvedev, also chairman of gas giant Gazprom, had become first deputy Prime Minister in the government of Mikhail Fradkov.

Defence Minister Sergei Ivanov, a close political confidant, will take on the extra job of deputy Prime Minister, a rank already held by key liberal economic strategist Alexander Zhukov.

Politicians and analysts said Mr Putin's surprise move meant it was now a straight choice between Mr Medvedev and Mr Ivanov as the hand-picked successor to the presidency when he bows out in 2008.

"This decision effectively means the start to the presidential campaign of 2008," said Dmitry Rogozin, who heads the nationalist Rodina (Motherland) party.

"Vladimir Putin has effectively named his possible successors for the future presidential elections," Nikita Belykh, heads of the Union of Right-wing Forces, was quoted as saying by Interfax news agency.

Sergei Sobyanin, currently governor of energy-rich Tyumen region in western Siberia, was named new Kremlin chief-of-staff.

Both Mr Medvedev, who has been in his present job for two years, and Mr Ivanov, Mr Putin's friend from his days in the KGB state security apparatus, have long been at the top of the list of potential candidates to replace him.

Mr Ivanov, 52, and Mr Putin have known each other since the 1970s, both hailing from Russia's second city St Petersburg and both former KGB spies. Self-effacing and doggedly loyal to Mr Putin, Mr Ivanov has repeatedly denied any ambitions for the Kremlin top job.

Mr Medvedev is a 40-year-old lawyer, also from Petersburg, who started out in politics in the early 1990s in the ranks of former city mayor Anatoly Sobchak's team alongside Mr Putin.

Mr Putin cannot stand for a third term under the Constitution. But it has always been clear he would want to hand-pick his heir - as he himself was chosen by former President Boris Yeltsin.

Mr Putin was head of the FSB state security force in August 1999 when Mr Yeltsin appointed him Prime Minister. He went on to win election as President the following March.