Business

Russian politicians approve Mikhail Mishustin as PM amid government overhaul

Russian politicians approve Mikhail Mishustin as PM amid government overhaul

Russian politicians have approved Vladimir Putin’s pick for prime minister a day after the whole government resigned as experts predict the president is attempting to become ruler for life.

The State Duma, the lower house of parliament, gave its backing to Mikhail Mishustin, a 53-year-old with almost no political profile, endorsing his nomination with 383 votes of 424 cast.

Nobody voted against him; there were 41 abstentions.

Mr Mishustin, who has headed the country’s tax service and played ice hockey with Mr Putin, said he would name his cabinet in the near future.

Mikhail Mishustin, President Vladimir Putin's nominee for the post of prime minister.

Mr Putin signed a decree appointing him prime minister soon afterwards.

His elevation is part of a sweeping shake-up of the political system announced by Mr Putin on Wednesday, which led to the resignation of Dmitry Medvedev as prime minister along with his government.

The changes are widely seen as giving Mr Putin, 67, scope to extend his grip on power once he leaves the presidency in 2024.

“I’m sure the Russian people will support me,” Mr Putin said of his proposed constitutional reforms.

China’s Xi Jinping (pictured right) with Russia’s Vladimir Putin amended his nation’s constitution to remove presidential term limits – which has effectively made him ruler-for-life

He has dominated Russian politics, as president or as prime minister, for two decades.

The sudden and radical overhaul cements Mr Putin’s control of the transition process and is seen by some as an attempt to reduce intra-clan infighting between now and 2024.

The abrupt departure of Mr Medvedev’s government also allows Mr Putin to show he is responding to public discontent after years of belt-tightening and an unpopular pension age hike.

Mr Medvedev, head of the government since 2012, has been a lightning rod for Russians’ frustrations as he has played steward to an economy buffeted by a 2014-16 downturn, Western sanctions and swings in the price of oil, Russia’s life blood.

Russian President Vladimir Putin (R) and Prime Minister Dmitry Medvedev.

Real wages have been falling for more than five years and have gradually eroded the government’s popularity ratings, raising the prospect they could start bleeding into Mr Putin’s own ratings, analysts and critics of the Kremlin said.

That was seen as a concern for the Kremlin ahead of a parliamentary election next year and as something that could make a smooth transition for Mr Putin harder to achieve.

“There were large suspicions that if this stagnation continued and everything remains as it is, then the make-up of the new (parliament) would be considerably less friendly towards the Kremlin,” said Vladimir Tikhomirov, chief economist at the BCS Financial Group.

Russian Tax Service chief Mikhail Mishustin, foreground centre, who was nominated to replace Medvedev, speaks during a session at the State Duma, the Lower House of the Russian parliament in Moscow, Russia.

The constitutional reform proposals, which he set out on Wednesday and suggested should be put to a referendum, would give him the option of taking an enhanced role as prime minister after 2024 or a new role as head of the State Council, an official body he said he was keen to build up.

Opposition politician Leonid Volkov said it looked as though Mr Putin was digging in.

“It’s clear to everyone that everything is going exclusively towards setting Putin up to rule for life,” he wrote on social media.

The Kommersant business daily on Thursday called Mr Putin’s shake-up “the January revolution”.