Some of the questions which were asked during three hours, 30 minutes, and 20 seconds were so specialized that the event reminded a televised consultation with a lawyer. Diversification was the key word. It was used in two contexts - the need to overcome Russia's economic dependence on energy sources, and a search for alternative energy transportation routes.
Putin qualified the former as the main avenue of economic development, and used the latter to bring up transit countries, which Russia has paid 4.2 billion dollars. This makes the task of diversifying routes of Russian gas supplies to major European consumers even more urgent.
Economy
The president concentrated on economic issues. Putin believes that the main problem is a huge gap in incomes, despite statistically meaningful, considerable social achievements - the growth of average wages and salaries, incomes, and pensions. High economic growth rates are a natural way of resolving this problem. This is why Putin has not given up the goal of doubling the GDP - he insists that the economy should average a seven percent annual growth.
He did not say much about the use of the Stabilization Fund, but noted that it should primarily create a margin of safety to ward off the impact of a drop in oil prices. In other words, the president is still siding with the finance ministry, which wants to keep the fund intact.
In many respects, Putin's view of the most important achievement coincides with that of many economic experts - an almost seven percent growth has largely been generated not so much by foreign trade, as by domestic investment and consumer demand. The rapid re-equipment of key assets, growing investment into fixed capital (13% in 2006), and a massive flow of private capital to Russia (direct foreign investment alone amounted to $31billion) all illustrate the point. All this shows that the next step for Russia is to progress from economic stabilization and accumulation to development.
Fuel-and-Energy Sector
Energy problems are part of the economy, but they deserve special attention considering the importance of energy security in Russia and the rest of the world.
It was clear that Putin was pleased to talk about energy and knows the subject in and out. He often went into the offensive when replying to "uncomfortable" questions. Here's an example. The West has been accusing Russia of unreliable hydrocarbon supplies, and is searching for alternatives suppliers. Putin made it clear that Russia, partly in response to this, is speeding up the construction of pipelines to the East and looking for customers in the growing new markets in third countries. Putin even expressed the hope that in the near future Russian gas may reach southern Europe and Israel when the Blue Stream's second extension is ready. Talking about "old partners," Putin singled out Italian and German energy companies, with which Russia is building a relationship with a view to long-term cooperation in the next 30 to 35 years.
When asked whether Russia intends to set up a gas cartel with Iran, Putin replied: "A gas OPEC is an interesting idea, and we will give it some thought." This is a new approach, because several days before the Ministry of Economic Development and Trade rejected the idea. Putin said that by pooling their efforts, leading gas suppliers could reliably meet the demand of major consumers. But for the time being, "we cannot set up any cartel," he added.
When asked by a Greek journalist about the future of the Burgas-Alexandroupolis oil pipeline, the construction of which has been discussed for 15 years, the president placed the blame on "the European buyers of Russian oil," who do not seem to be interested in guaranteed supplies.
Domestic Policy
Who will be Russia's next president? This is the central political subject of universal interest. The political and business circles, the public at home and abroad, and the media would like to know the answer. They could consider Putin's answer evasive ("Everyone is doing his job," or "There will be no successors,"), but an attentive observer would notice that he promised to express his preference "during the election campaign," referring, most likely, to the presidential race rather than the State Duma elections. In other words, he will name someone, but not for a while. Besides, as Putin put it: "Why are you pushing me out (of politics) ahead of time - I'll leave by myself."
Among major achievements of the last seven or eight years, Putin named the restoration of Russia's territorial integrity, referring to the Chechen issue and control over Russia's regions. Another accomplishment mentioned is the consolidation of its political system, by which the president meant stronger political institutions and the party system.
Putin does not see the election race between two "nomenclature" parties - United Russia and Fair Russia - to be artificial, and believes that the former is more liberal, while the latter is socialist. Speaking about party battles and hinting at the political system's growing pains, Putin said: "The level of maturity in political competition depends on the maturity of its participants."
The growth of xenophobia in Russia is at the top of the agenda. Putin believes that it has at least two roots - the phantom pains after the Soviet Union's disintegration, which "caused the most numerous national groups to feel that they had lost some of their rights," and deregulation of the labor market where "the balance did not always favor Russia's indigenous population." The president did not suggest a remedy, but reaffirmed that the disease has to be treated.
These questions covered the most important domestic political issues at the news conference.
Russia's Foreign Policy and Image
Putin responded in an amicable manner to the long-standing accusations of using energy for political ends. Having reminded that Russia has always honored its oil-and-gas commitments to foreign consumers, he interpreted the recent clashes with Ukraine and Belarus as a totally unjustified response to Russia's transition to market relations with those who would like to subsidize their economies at the expense of the Russian budget.
The president rejected the view that Russia has been surrounding itself with more and more "ill-wishers." When you betray national interests, you get immediate applause, but when you start building balanced international relations proceeding from your objective interests, you invite criticism, Putin observed. The success of the G8 summit last summer has convinced him that "our relations have not deteriorated - to the contrary, they are becoming more and more stable and reliable."
In turn, Putin criticized the EU administration for enormous subsidies to the agricultural sector of new members, such as Hungary, which are then trying to "dump" their produce on Russia. He described Washington's periodic sanctions against Russian arms manufacturers as dishonest competition.
Speaking about U.S. plans to deploy ABM systems in Eastern Europe, Putin emphasized that "Russia's growing might has nothing to do with them." Russia is spending 25 times less on defense than the U.S., he pointed out. The president believes that the idea of bringing American radars and ABM missiles to Poland and the Czech Republic "has a direct bearing on Russia." Does Iran or terrorists have ballistic weapons? Having asked this rhetoric question, he warned that Moscow's response would be asymmetrical and effective.
The president did not avoid answering sensitive questions related to Anna Politkovskaya's murder and other similar crimes which have tarnished Russia's image. Russia is aware of its responsibility for investigating these crimes, and is prepared to do all it can to protect journalists against violence. The president referred to the solution of the case of a high-profile murder of Central Bank Deputy Chairman Andrei Kozlov as a positive sign.
Speaking about Litvinenko's case, the president said that this former convoy officer and ex-FSB agent, who had once been tried for beating suspects, "said everything he had to say about Russian security services a long time ago." A court of law rather than investigators will decide who is guilty of his death.
Putin continues to believe that runaway oligarchs in Western Europe, and Israel are trying to do damage to Russia. It was a clear hint at Boris Berezovsky in London and Leonid Nevzlin in Tel Aviv. Nonetheless, the president does not believe in an international conspiracy to denigrate Russia, or, to be more precise, it does not bother him.
"Russia's stability allows us to disregard it," he explained. This statement reflects his confidence as a leader of what can be called a relatively prosperous country, considering its distinct development course.
Conclusions
Contrary to the expectations of many analysts, Putin did not announce his political will. It is too early. He still has almost a year and a half to the end of his term, and the time has not yet come for a will, or even its draft. In any event, a seasoned politician, Putin is not going to tell the public at large about his intentions - this would contradict the logic of his personal strategy.
Judging by both questions and answers, the news conference could be described as a regular event, although the head of state outlined what he considers the most meaningful economic, social, and political gains, and the most pronounced trends of the last few years. Let's repeat that he mentioned a trend of transition to the new quality of economic growth - more diversified in structure, and encouraged by the domestic demand.
Russia's economic diversification and ability to compete are becoming key words. This is probably the main outcome of the event, and the interim result of Putin's presidency for nearly seven years.
