Russian leader's inner team plays central policy role

Subject

How Putin's inner team shape and direct policy.

Significance

An economic adviser in the Presidential Administration, Andrey Belousov, has caused shock waves with a controversial proposal to tax metals and mining firms more heavily. The idea is likely to be resisted by government ministers as well as industry, but shows the influence President Vladimir Putin's team of advisers and officials can exert on policy formulation. Putin reshuffled his Presidential Administration in June but made surprisingly few changes.

Impacts

• Putin's focus seems to be on implementing his development strategy while leaving the old guard in charge of foreign policy.
• Control of policy on the development strategy will be a source of tensions between the Presidential Administration and government.
• Appointments of regional governors will reflect the greatest experimentation; above that level, Putin will opt for caution.