Last night’s broadcasts on the main Russian channels reported on premier Vladimir Putin’s visit to Ukraine, while certain Russian newspapers and foreign agencies quoted Medvedev as saying that the security services and controlling bodies should stop ‘nightmaring’ business. Medvedev has thus coined a new phrase with which to warn the state bodies he openly accuses of corruption and stifling private business, his speech culminating with a signal, or warning (siloviki in Russian political speak).

This angry language matched that displayed by his predecessor (and current prime minister) Vladimir Putin when he slammed coal producer Mechel for alleged tax avoidance, sending both Mechel and the Russian stock market in general into a nose-dive. Investors panicked about the possibility of nationalisation of the coal industry and the potential assault of the state into the economy. However, Medvedev’s words- ‘Putinesque’ in their invention- should have reassured investors and balanced out Putin’s attack.

Medvedev’s credentials as a supporter and defender of private business, both domestic and foreign, are evident, but whether investor confidence will be reassured will depend on how well he can back his warning with real action. Yesterday Medvedev signed a large-scale anti-corruption programme that sees the introduction of a law defining corruption, widening the scope of state officials controlled under the legislation, and amendments to 25 other legislative acts adopted by parliament before the end of the year. Apart from the legislative, the new programme has three other components. The second part of the programme focuses on the improvement of state administration, including partial devolution of power to the regional administrations from the federal level, the adoption of standards for state services and increasing transparency. The third part of the programme will set up watchdog agencies within governmental bodies to monitor the personal assets of bureaucrats. Finally, the document orders the enhanced usage of the internet in the rendering of public services and the creation of public legal aide centres. The government will also set up a special body to ensure and oversee Russia’s compliance with international norms and accords on fighting corruption. The programme is fairly wide and all encompassing. The catch for Medvedev is, of course, that he needs the very security services who are now seen as most corrupt, to bring these plans to life. The recent legislative changes supporting small and medium businesses are reportedly being bogged down by the state administration, as business representatives informed the president at a meeting yesterday, undoubtedly adding more determination to his later command to the security services to stop ‘nightmaring’ businesses.

Outlook and Implications

One of Dmitry Medvedev’s long-term goals is to fight corruption. The crucial question for both the prospects of this anti-corruption fight in Russia and the fast development of private business is whether he will be able to back his intentions with actions, and have enough resources to materialise his ‘warning’ should he need to. An additional angle to the debate is whether Medvedev’s attack was also indirectly targeted at Putin, who after his resignation as president is now more closely associated with siloviki, it appears. The most tangible, if only, evidence of a possible rift is that the Russian media today widely circulated a poll saying that an overwhelming majority of the Russian public still consider Vladimir Putin the key decision-maker in the country, hardly a coincidence. The sidelining of Medvedev’s speech in favour of Putin’s coverage on Russian television is also an apparent sign of muted resistance from the powerful groups whom Medvedev is targeting. The fight against corruption and support for private business is both the outcome and cause of a major controversy between the liberally and conservatively oriented groups within the Russian government. The new Russian president needs to prove now that he has not only the will but also the way to implement his vision for Russia as a country with a rule of law and thriving private sector.