Business Day

Putin cements grip on power

• The war in Ukraine, the domestic economy and energy are among the most serious issues

- Guy Faulconbri­dge, Andrew Osborn

President Vladimir Putin won a record post-Soviet landslide in Russia’s election on Sunday, cementing his already tight grip on power in a victory he said showed Moscow had been right to stand up to the West and send its troops into Ukraine.

Putin, a former KGB lieutenant-colonel who first rose to power in 1999, made it clear that the result should send a message to the West that its leaders will have to reckon with an emboldened Russia, whether in war or in peace, for many more years to come.

The outcome means Putin, 71, is set to embark on a new sixyear term that will see him overtake Josef Stalin and become Russia’s longest-serving leader for more than 200 years if he completes it.

Putin won re-election with 87.28% of the vote, figures published by the country’s electoral commission showed, with all the votes counted.

Communist candidate Nikolai Kharitonov finished second with just under 4%, newcomer Vladislav Davankov third, and ultra-nationalis­t Leonid Slutsky fourth, partial results suggested.

Putin told supporters in a victory speech in Moscow that he would prioritise resolving tasks associated with what he called Russia’s “special military operation” in Ukraine and would strengthen the Russian military.

“We have many tasks ahead. But when we are consolidat­ed — no matter who wants to intimidate us, suppress us — nobody has ever succeeded in history, they have not succeeded now, and they will not succeed ever in the future,” Putin said.

Supporters chanted “Putin, Putin, Putin” when he appeared on stage and “Russia, Russia, Russia” after he had delivered his acceptance speech.

Inspired by opposition leader Alexei Navalny, who died in an Arctic prison last month, thousands of opponents protested at noon against Putin at polling stations inside Russia and abroad.

Putin told reporters he regarded the election as democratic and said the Navalnyins­pired protest against him had had no effect on the outcome.

In his first comments on his death, he also said that Navalny’s passing had been a “sad event” and confirmed that he had been ready to do a prisoner swap involving the opposition politician.

When asked by NBC, a US TV network, whether his re-election was democratic, Putin criticised the US political and judicial systems.

“The whole world is laughing at what is happening (in the US),” he said. “This is just a disaster, not a democracy.”

“Is it democratic to use administra­tive resources to attack one of the candidates for the presidency of the United States, using the judiciary among other things?” he asked, making an apparent reference to four criminal cases against Republican candidate Donald Trump.

While Putin’s re-election was not in doubt given his control over Russia and the absence of any real challenger­s, the former KGB spy had wanted to show he had the overwhelmi­ng support of Russians.

Nationwide turnout was 74.22% when polls closed, election officials said, surpassing 2018 levels of 67.5%.

There was no independen­t tally of how many of Russia’s 114-million voters took part in the opposition demonstrat­ions, amid tight security involving tens of thousands of police and security officials.

At least 74 people were arrested on Sunday across Russia, according to OVD-Info, a group that monitors crackdowns on dissent.

Over the previous two days, there were scattered incidents of protest as some Russians set fire to voting booths or poured green dye into ballot boxes. Opponents posted pictures of ballots spoiled with slogans insulting Putin.

But Navalny’s death has left the opposition deprived of its most formidable leader, and other major opposition figures are abroad, in jail or dead.

Vladimir Putin has won six more years in the Kremlin with a landslide victory in an election in which he faced no serious competitio­n.

Looking ahead, he faces important challenges.

UKRAINE WAR

Challenge: whether to escalate now and when to stop. Russia controls nearly a fifth of Ukraine, barely changed since late 2022. Putin has not defined territoria­l goals but his ally Dmitry Medvedev said in February that Russia aimed to bite off much more of Ukraine, including Odesa and eventually Kyiv.

● Putin could just let the war grind on, calculatin­g that time is on his side and awaiting the outcome of the US election in November. Russia made its first advance in nine months by capturing the town of Avdiivka in February and Putin has said it will press further. Ukraine is running low on ammunition as a big US aid package has been held up in Congress, and Russia has been encouraged by signs of discord and faltering resolve in the West.

● Putin could escalate by embarking on a new military mobilisati­on, on top of the callup of 300,000 men he ordered in September 2022. But that first wave was chaotic and unpopular, prompting hundreds of thousands of Russians to flee abroad. The Kremlin has repeatedly said there is no need for a repeat.

● Putin could seek a negotiated outcome. Russia has said this would have to be on its terms, leaving it in control of captured Ukrainian territory, which Kyiv has said it will never accept. Reuters reported in February that Putin had signalled to Washington he was ready to agree a ceasefire that would freeze the war at current lines. Washington rejected this after contacts between intermedia­ries.

TRADE AND ENERGY

Challenge: rerouting trade to blunt Western sanctions.

Russia has lost most of its lucrative European energy market because of sanctions and the blowing-up of the Nord Stream gas pipelines. Progress on three major projects will be a gauge of his success in pivoting Russian trade eastward:

● Anew “gas hub” in Turkey to enable Russia to reroute its gas exports.

● A new pipeline, the Power of Siberia 2, to bring another 50-billion cubic metres a year of Russian gas to China via Mongolia.

● An expansion of the Northern Sea route, made possible by the melting of Arctic sea ice, to link Murmansk near Russia’s border with Norway to the Bering Strait near Alaska.

NUCLEAR WEAPONS

Challenge: setting new security framework with the US or entering a new arms race. The New START treaty that caps the number of strategic nuclear warheads that Russia and the US can deploy is due to expire in February 2026. If it lapses, both sides could then expand their arsenals without limits.

Putin has said Russia must maximise its return on defence spending to prevent the US from “exhausting” it in the kind of arms race that sapped the Soviet Union during the Cold War. He said Russia was continuing to develop “several new weapons systems”, while denying US assertions that he plans to deploy nuclear weapons in space. Putin has suggested that Russia might resume nuclear testing, but only if the US does so first. Russia says it is ready to engage in “strategic dialogue” with the US but that this must include all issues affecting its security, including Ukraine.

DOMESTIC ECONOMY

Challenges: inflation, labour shortages, demographi­cs. The economy grew 4.6% year on year in January, thanks to a huge increase in military production, but labour shortages and low productivi­ty pose problems. Defence and security make up about 40% of the budget, squeezing other areas such as education and health.

Wages are rising, especially in regions where defence industries are concentrat­ed. But Putin has failed to deliver on a 2018 promise to achieve a “decisive breakthrou­gh” in living standards, and real incomes overall have stagnated for the past decade.

Near-term priorities are to cut inflation, running at 7.6%, and to reduce budgetary strains.

Putin has signalled this will mean higher taxes for firms and wealthier individual­s. Further out, he wants to raise life expectancy and boost the birth rate with measures to support families, but is struggling to reverse Russia’s long-term population decline.

RENEWING THE ELITE

Challenge: refreshing an ageing team. Putin will be 77 by the end of his new term — though still younger than US President Joe Biden when he was sworn in.

Some leading figures in Putin’s circle are older than he is, including FSB security chief Alexander Bortnikov (72), security council head Nikolai Patrushev (72) and foreign minister Sergei Lavrov (74 this week). Defence minister Sergei Shoigu and chief of staff Valery Gerasimov (both 68) have kept their jobs despite fierce criticism from some pro-war commentato­rs over Russia’s military failings in Ukraine. Putin has long shown himself to be reluctant to shake up his team, and critics have accused him of prizing loyalty over competence.

PROGRESS ON THREE MAJOR PROJECTS WILL BE A GAUGE OF HIS SUCCESS IN PIVOTING RUSSIAN TRADE EASTWARD

PUTIN HAS SAID RUSSIA MUST MAXIMISE ITS RETURN ON DEFENCE SPENDING TO STOP THE US FROM ‘EXHAUSTING’ IT

Younger figures to watch include parliament speaker Vyacheslav Volodin (60), agricultur­e minister Dmitry Patrushev (46) and Putin’s former bodyguard Alexei Dyumin (51), the governor of Tula region.

In a first significan­t personnel change, Boris Kovalchuk (46) the son of Putin’s businessma­n friend Yuri Kovalchuk, left his post as head of the Inter RAO utility company in March after 15 years to join the presidenti­al administra­tion, Vedomosti newspaper reported.

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Vladimir Putin
 ?? /Sergey Guneyev/Pool/AFP via Getty Images ?? Landslide win: Vladimir Putin’s fifth term as the elected Russian president was entirely predictabl­e.
/Sergey Guneyev/Pool/AFP via Getty Images Landslide win: Vladimir Putin’s fifth term as the elected Russian president was entirely predictabl­e.

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