The president established the State Council on September 1, 2000 in order to increase regional governors' involvement in the country's political and economic spheres.
Putin said the government and a Federation Council working group had drafted proposals on the redistribution of powers between Moscow and the regions, including a large-scale transfer of powers from the federal level to the regional level with only a small part remaining under federal jurisdiction.
Under this redistribution of powers, the federal government would give money to the regions, but regional authorities would retain responsibility for allocating it, Putin said. The federal government might also help the regions attract investment by providing "administrative, legal, political, and even diplomatic support."
