Russia's Medvedev ally emerges for Rosneft board

Thu Mar 13, 2008 8:11am EDT
 
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MOSCOW, March 13 (Reuters) - A close ally of Russian president-elect Dmitry Medvedev has been nominated for the board of state oil giant Rosneft (ROSN.MM), a first signal that Medvedev is seeking to install his people in key posts.

Russia's state property fund has proposed its head Yuri Petrov, Medvedev's former teacher at Leningrad State University, to the board of Russia's largest oil producer, a property fund spokesman and Rosneft said.

A Kremlin source told Reuters the nomination was intended "to put his name on the map", adding: "So one should not exclude he would go much higher".

Rosneft is chaired by Putin's close ally, the deputy head of the Kremlin administration Igor Sechin. Sechin is a highly influential figure and the informal leader of a hardliner faction of ex-KGB officers within the government.

This faction has clashed with the more liberal camp within the Kremlin, in which Medvedev has been a leading light. Sechin is expected to leave the presidential administration when Medvedev takes over but keep his Rosneft role.

The business daily Vedemosti reported on Thursday that Petrov had been nominated specifically as Medvedev's counterweight to Sechin's power within Rosneft.

"It is part of the ongoing arrangements," a government source told Reuters about Petrov's appointment, referring to a widely expected government and presidential administration reshuffle following Medvedev's election victory this month.

Medvedev's political mentor, current President Vladimir Putin, will become prime minister after May 7, when Medvedev is sworn in, and will govern alongside his protege.

Political analysts and government sources say the two men are already working on how to split their responsibilities with Medvedev being keen to bring in some of his allies.

Putin and Medvedev say they will work harmoniously and respect the constitutional division of powers between president and prime minister.

Political analysts and Kremlin watchers are eager for any news about Sechin's role after May as they say it would provide guidance whether Putin is in fact ceding power or whether Medvedev will stay in his shadow.

Rosneft will hold a shareholders' meeting in June to elect a new board. (Reporting by Yekaterina Golubkova and Anastasia Onegina, writing by Dmitry Zhdannikov; editing by Michael Stott)

 
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