Russia may boost PM's powers in regions

MOSCOW (Reuters) - Russia's government may soon gain control over the Kremlin's regional envoys, a move that would boost President Vladimir Putin's powers as a future prime minister, the Vedomosti daily reported on Thursday.

Putin's eight-year presidency comes to an end next month when his successor, president-elect Dmitry Medvedev, is sworn in. Putin said he would work as prime minister under Medvedev.

Investors are watching for any indications of how the duo will divide up powers, and there is speculation that Putin will preserve significant influence, at least for an initial period.

Putin invented the envoys as a way to cement Kremlin control after the chaos of Boris Yeltsin's rule. Putin used the envoys to keep governors in line and reassert the Kremlin's authority across Russia.

The paper cited unidentified officials in United Russia, the pro-Kremlin party that dominates parliament, and one ministry as saying that the envoy's role should now be economic and that they should answer to the government.

The paper cited sources as confirming that a reform within the Kremlin administration was being considered.

Russia's Regional Development Minister Dmitry Kozak told reporters after Thursday's cabinet meeting that he had heard nothing about any plans to transfer power over the regional envoys to the government.

"I don't have any such information," Kozak, a former regional envoy, told reporters when asked about the report. "I repeat, I have no information at all about any changes to the subordination of the regional envoys."

Putin currently has seven regional envoys. They exert significant clout, controlling vast areas and advising the president on who to appoint as regional governors. They are appointed by the president.

(Reporting by Guy Faulconbridge; Editing by Charles Dick)