When we talk about Putin and Russia, we talk about the rise and fall of a great icon. He once loved, then despised, but he remains in power.

Putin appointed as an acting president of Russia right during New Year Eve 2000 after Yeltsin’s resignation, and inaugurated on the May 20th 2000. He was a different figure than Yeltsin, from his persona to his work ethics.

If someone asked whether Putin will reign this long? No one will say yes. He probably will be gone in the middle of a crisis, or he will step down in 2008. But here we are in 2020, and he is still the president of Russia, and probably could be the longest serving president of Russia in modern days.

This series mark his 20 years of serving, from all the good and the bad deeds that he has done, and the future mistakes that he may take. Putin’s election was Russia’s first democratic election, and now he is paving the way to rule until 2036.

Part I: The War Against Oligarchs

Putin inherited a country that was falling apart. There was the Second Chechen War that he had to finish. Other than that, the country’s authoritarian system was halfway done. He had a lot of things to work on. He actually could change the country if he wanted to.

In his first speech, Putin showed different things; he was nobody, he was (and still is) sober, he was interested in building good relationships with the West. People were sure that he could save the desperate Russia. While on the other hand, Yeltsin was an alcoholic, always work with oligarchs, implemented ‘vertical politics’, and at the end of his popularity.

The 2nd Chechen war was inherited from Yeltsin. While Yeltsin made a resignation speech, the Russian troops have already in Chechnya and Putin even visited the troops that night, which was a declaration of war.
This war showed how he could resolve the crisis in the Yeltsin’s era and continue Russian ‘managed democracy’.

The Second Chechen War

Maybe some of you have not been familiar with the Chechen war. You probably ask how one of the most brutal wars in modern Europe is very important for Putin.

The Second Chechen War launched in 1999 was a Russian attempt to pacified the North Caucasus region. They are trying to restrain Chechen separatism and also Islamic militants. During the first few months before the Second War, the capital city of Grozny lost control of all of the Chechen and fought against Wahhabi jihad groups, such as Emir al-Khattab.

Akhmad Kadyrov, a Mufti in Chechnya saw this extremist as a threat to Muslims in Chechnya, and decided to change the alliance to Russia. Chechen separatists carried out various attacks in Russia, including the series of explosions in apartment buildings in Moscow and 2 other cities that killed 300 Russians. This caused Moscow to impose an anti-terrorist operation that turned into the Second Chechen War.

Due to this war, Putin’s approvals were skyrocketing. With the help of Kadyrov and his ally, Moscow successfully “pacified” the region (although many Russian troops died), and Akhmad Kadyrov became president in 2003. Although in fact small rebellion movements still occur up until nowadays.

This success was due to the “Chechenization” policy, which was Putin’s attempt to co-opt Chechen leaders, such as Kadyrov, who opposed the militant to become the Chechen leader. He then would transfer the conflict to them, and the conflict become the Chechen vs. Chechen, even though Russia is behind Kadyrov.

Kadyrov assassinated in 2004, but his son Ramzan Kadyrov immediately became president and remained loyal to the Kremlin. Putin also always supported Kadyrov, even 80% of Chechen funding came from the Kremlin. Therefore, Kadyrov Jr. kept trying to suppress the possibility of another separatist movement.

Kadyrov also enforced the same vertical politics as Putin, killing many of his political opponents and so far his policy had succeeded in controlling his country.

Putin Successful Economy Reform

During the Putin’s first few years, the country experienced financial slum. The Russian oil industry was falling. Oil production had fallen almost 50%, and the oil price had collapsed 60% from its Soviet peak. The oil tycoons also did not pay taxes and hid their revenues. Therefore taxation policy became Putin’s concern. He asked the assistance of Mikhail Kasyanov for reforming the economy. Kasyanov was the man that responsible for Russia’s IMF; he was competent but corrupt.

Kasyanov is working with Putin and other economist like Alexey Kudrin to conduct economy reforms in the country, for all kind of businesses- big or small.

In 2002, the corporate profits tax was cut from 35% to 26%. It also changed the progressive incomes tax for a flat tax of 13%. Surprisingly, Russians actually willing to pay and it increased the revenue of the country.

Finally there are growth and recovery, GDP was growing, inflation rate declined and overall things are better financially and strengthen Putin’s popularity, he is the man that gets things done.

Putin and Boris Berezovsky

Putin raised from no-one to a president with the help of Boris Berezovsky, an oligarch who owned one of the most powerful Russian TV Chanel, ORT (Obshchestvennoye Rossiyskoye Televideniye). Putin was his protege and Berezovsky was the one who supported Putin’s campaign.

Berezovsky thought that Putin was a grey, and he could project all of his political dreams into Putin. Unfortunately, he misread Putin, Putin is not Yeltsin.

During that time, TV stations had a lot of power in supporting and taking down Russian politicians, therefore Putin had a plan to build power over TV. There were two powerful TV stations, ORT owned by Berezovsky and NTV by Vladimir Gusinsky. Putin realized, if he ruined his relationship with them, they will make the government look weak in front of the people.

NTV loaned some money from Gazprom (state-owned gas company) during Yeltsin’s era. Gusinsky used this to ask more money from Putin and offered to promote him. Putin were against Gusinsky’s idea to control him. Not long after, he put Gusinsky in jail and let Gazprom owned NTV.

Berezovsky felt that he was in a strong position and he could defend democracy in Kremlin. After his inauguration, Putin made a strong statement that oligarchs will not get any special treatment. In July 2000, Putin gathered 21 leading tycoons except Gusinsky and Berezovsky to made a deal. He said that the government would not interfere their business as long as oligarchs would not involved in politics and criticized the government.

The end of the family, the end of oligharcs

Berezovsky started to criticize Putin. ORT made a bad publication about Putin, on how he was a bad communicator during the sinking submarine case. Then Putin confronted his patron and ORT. Putin decided to control ORT and put Berezovsky in exile. Putin issued an international arrest warrant against Berezovsky who fled to the UK.

Berezovsky sold ORT to Roman Abramovich who gave it to the state, so now both ORT and NTV are controlled by Putin. By 2008, 90% of Russian media were under Putin’s control. Kremlin started to use the media as a very powerful propaganda tool and brainwashed the people. Those are only two examples of how Putin took away oligarchs’ powers. There were more oligarchs disadvantaged financially or put into jail by Putin.

He arrested Mikhail Khodorkovsky, head of the oil group Yukos for fraud and tax evasion. He is an example of what will happen if oligarchs interfere with the government. Yukos was producing 20% of Russia’s oil output and had done several international expansions, and purchased the majority of shares in Slovakia and Lithuania.

It is believed that the real intention was to obtain Yukos’s assets for the government. later on, Yuhanskneftgaz, the most important subsidiary of Yukos sold in a closed room with Gazpromneft and Baikalfinansgrup. Then Rosneft (government-owned oil company) acquired Baikalfinansgrup and bought Yuganskneftegaz. After that, Gazprom-Rofneft accounted for 25% of the country’s energy production.

In conclusion, Putin created the right image the first time he came into the picture. He was a fresh start compared to Yeltsin. He looked revolutionary. He came at the right time, he was obedient (or looked like he is obedient) and hardworking, therefore he was chosen to replace Yeltsin.

He did what he had to do. He finished the jobs left in Chechen, he “pacified” the country by working together with former Russian enemy and made him the leader.

He also reformed the economy, and he succeeded to make more people pay the tax, grew the GDP, and decreased inflation. He nationalized essential businesses, especially related to the oil and gas industry, to let the country have more control over it.

He dismissed oligarchs, took away their tool which is media and turn it into the most powerful propaganda tool. He got things done, but he also continues the vertical power, managed the Russian democracy and started to show the tendency to be authoritarian.

I guess during the first four years, Russians did not really care about how he gradually changed his style. They are satisfied with his work. While on the other hand, he disarmed the former controllers of the country, and become the main master himself.

Reference:

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