Putin consolidates power as Russian government resigns

Russia’s government resigned Wednesday to make way for major new constitutional changes, according to the Tass state news agency, citing Prime Minister Dmitry Medvedev. Without giving much detail, the news agency said President Vladimir Putin thanked Medvedev’s government for its work. The move was reportedly made so Putin can carry out sweeping constitutional changes he spoke about at his annual address just hours earlier.

The Russian leader proposed a national vote on constitutional changes. Putin, 67, has led Russia for two decades as either prime minister or president, shifting between the roles in the current Russian constitution that prevents someone from serving more than two consecutive terms as president. But the latest move could be a way for him to circumvent or scrap that rule entirely as his fourth term in office is due to end in 2024.

Timothy Ash, senior emerging markets strategist at Bluebay Asset Management, said the changes could be seen as Putin trying to refresh things with a new prime minister and government. He said Russian Economy Minister Maxim Oreshkin was a possible name for new prime minister, but added that there would be no changes in terms of Putin still holding power in Moscow. The dollar pushed higher against the ruble following the news, with the greenback up 0.4% on the Russian currency.

Putin consolidates power as Russian government resigns, CNBC, Jan 15