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Months of infighting between Russian Prime Minister Vladimir Putin and President Dmitry Medvedev over Russia's budget ended on Monday - with Medvedev on top. At a meeting with senior government officials, the President announced a strikingly pessimistic set of spending priorities until 2012, based on conservative estimates suggesting that Russia will remain hampered by the economic crisis into next year and beyond...

Author: /time Magazine | Title: Medvedev's Grim View of Russia's Economy | 5/26/2009 | See Source »

...Putin's more optimistic forecasts, which some saw as an attempt to fend off political instability, "suffered a radical readjustment," wrote the daily Nezavisamaya Gazeta. "We all understand what a difficult situation our country, our economy, is in," Medvedev said as he announced that budget expenditures would exceed revenues for the first time in 10 years. He said the government would move "to a strict regime of saving budget resources" along the lines championed by bearish Finance Minister Alexei Kudrin. (See pictures of Putin...

Author: /time Magazine | Title: Medvedev's Grim View of Russia's Economy | 5/26/2009 | See Source »

...Putin is not known for his tact when speaking of Russia's western neighbor, which declared independence from the Soviet Union in 1991. In April 2008, a source told Russia's Kommersant newspaper how Putin described Ukraine to George Bush at a NATO meeting in Bucharest: "You don't understand, George, that Ukraine is not even a state. What is Ukraine? Part of its territories is Eastern Europe, but the greater part is a gift from...

Author: /time Magazine | Title: Putin to the West: Hands off Ukraine | 5/25/2009 | See Source »

...These levers are likely to play a significant role in Ukraine's upcoming presidential elections, set for next January. Last time around, in 2004, Russia and Putin threw their weight behind then Prime Minister Viktor Yanukovych, whose initial victory was overturned after massive protests in Kiev against vote-rigging, which turned into the so-called Orange Revolution. This time, analysts say the Kremlin will probably diversify its approach, with support for both Yanukovych and previously hostile Prime Minister Yulia Tymoshenko, President Yushchenko's former Orange ally...

Author: /time Magazine | Title: Putin to the West: Hands off Ukraine | 5/25/2009 | See Source »

...Russian leadership learnt one important lesson from 2004 - not to put all their eggs in one basket," says Trenin. Meanwhile, Russians and Ukrainians alike will be watching for Putin's next trenchant explanation from literary history...

Author: /time Magazine | Title: Putin to the West: Hands off Ukraine | 5/25/2009 | See Source »

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