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Meet Mikhail Mishustin, Russia’s new Prime Minister

Kester Kenn Klomegah

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Plucked from obscurity and little known in wide national political scene, the Head of the Federal Tax Service, Mikhail Mishustin, to become the new Prime Minister was a complete surprise, but not the first time in Russia’s politics. President Vladimir Putin was pulled upto the top political field, in a similar way, by Boris Yeltsin. In August 1999, Putin was appointed one of three First Deputy Prime Ministers, and later on, was appointed acting Prime Minister of the Government of the Russian Federation by Yeltsin.

Yeltsin announced that he wanted to see Putin as his successor. Readily, Putin agreed to run for the presidency and later approved by State Duma with 233 votes in favor (vs. 84 against, 17 abstained), while a simple majority of 226 was required, making him Russia’s fifth PM in fewer than eighteen months.

On his appointment, few expected Putin, virtually unknown to the general public, to last any longer than his predecessors. He was initially regarded as a Yeltsin loyalist, like other prime ministers of Boris Yeltsin, Putin did not choose ministers himself, his cabinet was determined by the presidential administration.

Now, with a new chapter opening, Mikhail Mishustin eventually replaces Dmitry Medvedev who served as Prime Minister until mid-January 2020. Putin and Medvedev worked together and even switched positions between President and Prime Minister. This switch was termed by many in the media as “Rokirovka”, the Russian term for the chess move “casting” and later Medvedev said he himself would be ready to perform “practical work in the government” with under Putin.

On January 15, in his address to the Federal Assembly, Putin explicitly explained: “Our society is clearly calling for change. People want development, where they live and work, that is, in cities, districts, villages and all across the nation. The pace of change must be expedited every year and produce tangible results in attaining worthy living standards that would be clearly perceived by the people. And, I repeat, they must be actively involved in this process.”

Meeting with the Cabinet thereafter, Putin said: “For my part, I also want to thank you for everything that has been done so far in our joint work. I am satisfied with the results of your work. Of course, not everything was accomplished, but things never work out in full.” He thanked the government and added that Medvedev served as President and for almost eight years now he has been the Prime Minister, which is probably the longest stint in this post in Russia’s recent history.

Further, Putin held a separate working meeting with Head of the Federal Taxation Service Mikhail Mishustin and proposed him to take the post of Prime Minister. Having received his consent, the President submitted the candidacy of Mikhail Mishustin for consideration to the State Duma.

On January 16, the State Duma (lower house) endorsed Mishustin, as the new Prime Minister of the Russian Federation. As many as 383 lawmakers supported Putin’s choice, none were against, and 41 parliamentarians abstained. “Colleagues, the decision has been taken. We have given consent to the appointment of Mishustin Mikhail Vladimirovich as Prime Minister by the president of the Russian Federation,” Duma Speaker Vyacheslav Volodin said, summing up the results of the vote.

President Vladimir Putin has signed a decree appointing Mikhail Mishustin as the country’s Prime Minister. “In accordance with Article 83(a) of the Russian Constitution, Mikhail Vladimirovich Mishustin is appointed as Russia’s Prime Minister,” says the decree published on the Kremlin’s website. The decree comes into force on the day of its signing.

Mikhail Mishustin was born on March 3, 1966 in Moscow to a father of Russian-Jewish origin and a mother of Russian origin. He completed postgraduate studies in 1992. He is married and has three sons. His interest is in sport, playing ice hockey. He is a member of the supervisory board of HC CSKA Moscow.

In 2003, he defended a thesis, headlined “Mechanism of state fiscal management in Russia” and received a PhD in economics. In 2010, he received a doctoral degree in economics at the Academy of National Economy under the Government of the Russian Federation (currently Russian Presidential Academy of National Economy and Public Administration).

Since graduation, he has worked in several enterprises. In February 2009, he joined the personnel reserve of the President of Russia. In 2010, Mikhail Mishustin was appointed as the Head of the Federal Tax Service (FTS). From 2011-2018, he was a member of the Presidential Council for Financial Market Development.

During this period, the tax service was criticized for its overly strict approach to business, and Mishustin rejected this accusation, citing a significant reduction in the number of inspections. So, with the arrival of Mishustin in 2010, the Federal tax service changed its approach to the organization of control events, focusing on analytical work.

As a result, the number of on-site tax audits has sharply decreased, while their efficiency has increased. If earlier every tenth taxpayer was checked, in 2018, the tax authorities checked only one small business company out of 4,000. The number of inspections of large and medium-sized businesses has also decreased significantly.

“This candidacy comes absolutely unexpectedly, but that does not mean he is a figure who brings about repulsion. Perhaps even the contrary. Not all fiscal heads are likeable and agreeable. In my view, Mishustin is largely seen by the public as agreeable,” Federation Council Deputy Speaker Ilyas Umakhanov told Interfax News Agency.

“This is yet more proof that our president relies on professionals at this difficult, critical moment when the country needs a qualitative leap, primarily in the economic sphere. This is down to new technology, digitalization; this is precisely where Mishustin made a mark as the Russian tax chief. He has huge experience under his belt, which has been embedded into the system,” added Umakhanov.

First Deputy Head of the Federation Council Committee for the Budget and Financial Markets Sergei Ryabukhin, for his part, described Mishustin as a very successful public administrator. “A top professional, a very big statesman and individual who has achieved great successes within the system of public administration in the tax and financial sphere. I think his is a good candidacy,” according to Ryabukhin.

According to experts, the surprise shake-up could have been triggered by launching a reset of the Russian political system and the upcoming power shift. Political Analyst Konstantin Kalachev believes that Putin’s decision to pick Mishustin as the new premier is related to his political neutrality, and he is also known in the business and corporate community. However, the new head of the government is unlikely to become Putin’s successor.

All officials interviewed by Vedomosti have described the choice as a surprise but a good one. Taxation is the only sector that has demonstrated a breakthrough in Russia’s state administration. The Russian Tax Service is one of the best in the world in terms of collecting taxes and developing technologies, an official linked to the financial system said. Mishustin is well-known in the government as a good administrator and his service was a lifesaver during the crisis, according to several media reports.

Mishustin is tasked with fulfilling Putin’s economic program, namely the National Projects to the tune of 26 trillion rubles ($424 billion) up to 2024. The program’s slow implementation and weak economic growth were among the reasons Medvedev’s government came under fire, the paper says. Mishustin’s major achievement is turning the tax-collecting agency into a service tool, said Partner at Taxology Alexei Artyukh.

He reformed the administration of major taxpayers and businesses can coordinate deals in advance in exchange for the Federal Tax Service’s access to companies’ accounting systems. If these approaches are extended to other services, this would result in huge progress, Alexei Artyukh said.

Kommersant, a local Russian newspaper, reported that Russia would remain as a strong presidential republic, and all the upcoming changes are linked to the the upcoming presidential election in 2024. Unreservedly, Mishustin stated during a plenary session of the State Duma that Russia has sufficient funds to achieve all goals set by President Vladimir Putin. Implementation of all the social obligations the president enumerated in his State of the Nation Address would require $64.8 billion.

Russia, with the largest territory in the world, has a wide natural resource base, including major deposits of timber, petroleum, natural gas, coal, ores and other mineral resources that can be used to support the expected economic development and raise the overall living standards of the population.

Kester Kenn Klomegah is an independent researcher and writer on African affairs in the EurAsian region and former Soviet republics. He wrote previously for African Press Agency, African Executive and Inter Press Service. Earlier, he had worked for The Moscow Times, a reputable English newspaper. Klomegah taught part-time at the Moscow Institute of Modern Journalism. He studied international journalism and mass communication, and later spent a year at the Moscow State Institute of International Relations. He co-authored a book “AIDS/HIV and Men: Taking Risk or Taking Responsibility” published by the London-based Panos Institute. In 2004 and again in 2009, he won the Golden Word Prize for a series of analytical articles on Russia's economic cooperation with African countries.

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Coronavirus: Why Russians Are Lucky to Be Led by Putin

Eric Zuesse

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On Tuesday, March 24th, the following happened:

U.S.A. had the world’s largest number of new coronavirus-19 cases: 10,168. The prior day, there were 33,546 cases; so, this 10,168 new cases were a 30% increase from the day before. 

Russia had 71 new cases, up 19% from the prior day’s 367

Reuters bannered “U.S. has potential of becoming coronavirus epicenter, says WHO” and reported that,

The World Health Organization said on Tuesday it was seeing a “very large acceleration” in coronavirus infections in the United States which had the potential of becoming the new epicenter.

Over the past 24 hours, 85 percent of new cases were from Europe and the United States, WHO spokeswoman Margaret Harris told reporters. Of those, 40 percent were from the United States.

Asked whether the United States could become the new epicentre, Harris said: “We are now seeing a very large acceleration in cases in the U.S. So it does have that potential.

Right now, on Wednesday the 25th, the U.S. again has the world’s largest number of new cases reported, 11,074. That’s a 25% increase added to the 43,734 cases total on March 24th. And, within just three more days, America will have the world’s largest total number of cases, if Italy won’t. And after yet another day, the U.S. will almost certainly have the world’s largest total number of cases, because Italy has been adding only around half as many new cases per day as the U.S., though Italy’s total right now is higher than America’s, and is actually the second largest total after only China’s. China will have the world’s third-largest total number of cases by this weekend, the 28th or 29th, and America will be #1 then, not only on the number of new cases, but on the total number of cases, of this infection. That quickly, then, China will become no longer the #1 coronavirus-19 nation, but, instead, #3, behind the #1 U.S., and the #2 Italy. 

America has been in political chaos because each of its two houses of Congress, and both Parties, and the President, have been blocked from agreeing on what to do — all of them were ignoring that this is an existential emergency and thus dealt with it as if it were instead just another way for each to increase its chances of re-election at the expense of the others. Both political Parties, Republicans and Democrats, and Congress and the President, agreed on a “$500 billion fund for corporations” to reduce the negative impact on billionaires’ wealth, but Democrats demanded that limits be placed on executives’ pay, and “included reducing student debt and boosting food stability programs. Some of the ideas would be major sticking points with Republicans: The bill, for example, would invest money ‘to eliminate high-polluting aircraft’ and ‘research into sustainable aviation fuels.’” Democrats also wanted, but Republicans refused, some costly measures to continue workers’ incomes during their plague-induced period of unemployment. Agreement had been reached only on the billionaire-bailouts — protections especially of stock-values. This is the way America’s ‘democracy’ works. Rule by the billionaires is considered to be ‘democracy’. Luxuries are treated as being more important than necessities are. (Billionaires are thought to be superior people, who must be served before anyone else.) Dollars rule, people don’t. And this chaos is the result of that.

On March 23rd, the prominent progressive economist James K. Galbraith headlined “What the Government Needs to Do Next” and described in detail what a governmental policy-response would be that would subsidize the public to deal with this crisis, but not subsidize the billionaires (who already have way too much and can well afford to become merely millionaires while not actually suffering at all), and that would be of maximum benefit to the total economy by protecting the assets of the most-vulnerable (who could then continue to shop and work), but his common-sense proposal wasn’t even being considered by the legislators, nor by the President.

Only a few countries had a faster rate of increase in cases than the U.S. did on March 24th, but all of them had far fewer cases: Portugal, South Africa, Burkina Faso, Nigeria, Rwanda and Uganda. For example, Rwanda had the world’s highest percentage-increase from the day before, almost a doubling, but that was 17 new cases, up from a total of 19 on the day before. So, America’s 30% increase was clearly the world’s worst performance, on that single day.

Russia’s performance is perhaps the world’s best.

On March 22nd, CNN headlined “Why does Russia, population 146 million, have fewer coronavirus cases than Luxembourg?” (that’s a country of 628,000 people) and reported that 

Russia’s early response measures —  such as shutting down its 2,600-mile border with China as early as January 30, and setting up quarantine zones — may have contributed to the delay of a full-blown outbreak, some experts say.

Russian President Vladimir Putin responded to criticism over the number of recorded cases.

A strong record on testing

“The director-general of WHO said ‘test, test, test,’” Dr. Melita Vujnovic, the World Health Organization’s representative in Russia, told CNN Thursday. “Well, Russia started that literally at the end of January.”

Vujnovic said Russia also took a broader set of measures in addition to testing.

“Testing and identification of cases, tracing contacts, isolation, these are all measures that WHO proposes and recommends, and they were in place all the time,” she said. “And the social distancing is the second component that really also started relatively early.”

Rospotrebnadzor, Russia’s state consumer watchdog, said Saturday that it had run more than 156,000 coronavirus tests in total. By comparison, according to CDC figures, the United States only picked up the pace in testing at the beginning of March.

On March 20th, the permanently anti-Russian U.S. organization, Carnegie Endowment for International Peace (whose “Orwellian” name was perhaps one of the inspirations for George Orwell’s permanent-warfare novel, 1984) headlined “Confronting the Challenges of Coronavirus, Russia Sees Its Worldview Vindicated”, and tried to put as bad a face on Russia’s coronavirus performance as they could, such as by alleging that (alleged) dictatorships were performing no worse than ‘democracies’ at controlling the coronavirus threat:

The state has reasserted itself as the prime actor on the global scene. International institutions like the World Health Organization have become mere statisticians, and even the EU has taken a back seat to the governments of member states.

The world’s democracies are not faring better in the crisis than nondemocracies.

However, back on 27 July 2015, that organization had bannered “How Authentic is Putin’s Approval Rating?” and reviewed more than 15 years of Putin’s approval ratings from the Russian public, and reluctantly concluded that it was and had always been “Authentic,” and almost always high.

Internationally, too, Putin’s leadership of Russia is more highly regarded than is the current U.S. President’s leadership of America.

Back in 2017, the British firm of WIN/Gallup International issued “Gallup International’s 41st Annual Global End of Year Survey Opinion Poll in 55 Countries Across the Globe”, which sampled 1,000 persons in each country in order to determine in each one the percentage of the public who rated “Favorable” and who rated “Unfavorable” each of the following 12 national heads-of-state (listed here in descending order of their net favorability, or “favorable” minus “unfavorable”): Merkel, Macron, Modi, May, Xi, Putin, Saud, Netanyahu, Rouhani, Erdogan, and Trump. (Merkel globally scored highest, Trump lowest.)

Amongst Russians, the score for Putin was 79% Favorable, 11% Unfavorable, for a net score of +68%.

Though Germany’s Merkel had the highest score worldwide, her score in Germany was only 54% Favorable and 44% Unfavorable, for a net of +10.

Macron’s net score in France was -1%.

May’s net in UK was -18%

Rouhani’s in Iran was +37%

Erdogan’s in Turkey was +22%

Modi’s in India was +72% (that’s 84%-12%)

Trump’s in U.S. was -23% (35%-58%) — the worst of all.

The following leaders weren’t surveyed in their own countries: Xi, Netanyahu, and Saud.

So: Putin’s net +68% score amongst his own country’s population was second ony to Modi’s — and, whereas Modi had been in office for only 3 years and had not yet begun his controversial actively anti-Muslim campaign, Putin had led Russia for 17 years, and was a very firmly established high performer in these figures. Here are some of the reasons for this.

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Russian-Japanese dialogue in the context of amendments to the Constitution

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As Russia discusses amendments to the Constitution, an issue of particular concern has been the amendment that prohibits the alienation of Russian territories. The amendment will likely be put to vote on April 22. It is not surprising that it has evoked interest abroad, especially in Japan, where they still expect to regain control of the so-called “northern territories”. Unlike a great number of categorical alarmist comments in the Japanese press on this issue, Sankei Shimbun writes: “The amendment includes the wording “except for cases of demarcation or re-demarcation of borders with neighboring states”. Thus, negotiations on the Japanese “northern territories” can be considered not in conflict with the new Constitution. “

Are there grounds for such an interpretation of the amendment in question? “Any moves aimed at alienating territories, as well as calls for such actions, are not permitted,” – the presidential amendment says, specifying that it is not indeed about delimitation, demarcation, or re-demarcation of the state border.

Japan, claiming the southern islands of the Kuril Ridge, cites the Soviet-Japanese Declaration of October 19, 1956 “On ending the state of war between the two states and restoring diplomatic and consular relations”, according to which the USSR pledged to transfer the Shikotan and Habomai Islands. The Declaration, ratified by the parliaments of the two countries, has not been abolished. Another presidential amendment to the Constitution of the Russian Federation stipulates that Russia is the legal successor of the USSR in its territory and as a member of international organizations and international treaties.

However, the Tokyo Declaration indicated that the de facto transfer of these islands to Japan would be executed after the signing of a peace treaty between the USSR and Japan. In addition, the Soviet Union was also far from happy about the presence of American military bases on Japanese territory.

At present, what obstructs progress on the islands and the peace treaty is Japan’s unwillingness to take into account Russia’s strategic concerns about the status of the four islands of the South Kuril Ridge. In particular, Russia would like to receive guarantees about the neutral status of these territories and the non-deployment of US military bases on them.

The main thing is that while considering the issue of concluding a Peace Treaty with Japan, Russia insists that Japan recognize the results of World War II – something it has refused to do for many years. This approach is regrettably deeply rooted in the minds of the Japanese establishment and expert community. The abovementioned newspaper, for example, cites the opinion of Professor Sindzo Hakamada of Niigata University that “if Japanese Prime Minister Shinzo Abe takes part in the celebration of Victory Day this year, it will mean acknowledgment of a blatant distortion of history by Russia and its uncompromising policy towards Japan.

From the Russian point of view, such statements are characteristic of the position of Japan. History, by the way, remembers cases when Tokyo changed this position depending on the political situation. A. Koshkin writes that in the spring of 1945, amid fears that the Soviet Union could participate in the war against Japan on the side of the Allied Powers, the Japanese leadership began to develop plans to “interest” the Soviet government by the concessions which Tokyo could make in exchange for Moscow’s neutrality and consent to mediate in armistice negotiations, including the abandoning of claims on Sakhalin and the Kuril Islands.

Some Japanese experts, for example, M. Sato, believe that even after the amendments are made, there are two ways to resolve this problem so that the transfer of Habomai and Shikotan does not contradict the Russian Constitution. “The first way: to confirm that the transfer of Japanese islands to the USSR was recorded in the Yalta agreement of February 1945 and that in accordance with the San Francisco Peace Treaty, the Kuril Islands, which Japan turned down, do not include Habomai and Shikotan. The transfer of Habomai and Shikotan is not an act of alienation of territories, but the result of demarcation of borders, so this will not run counter to the Constitution of Russia. The second way: since the Soviet-Japanese declaration is an international agreement signed long before the approval of the Russian Constitution, the provisions of the Fundamental Law of Russia should not apply to it.

In any case, the presidential amendment that delimitation, demarcation and re-marking of the state border do not fall under the alienation of territories is fairly substantial. There have been similar situations in the past, for example, how would the Russian leadership act when considering the demarcation of the Russian-Chinese border in 2005 or the Russian-Norwegian border in 2010?

However, in the case of Japan, the formality – when and if the presidential amendment is adopted – is less important than content. The Russian-Japanese dialogue on a Peace Treaty is still possible and may end to the benefit of both parties if they manage to accept the terms of the Tokyo Declaration taking into account the new realities. In my opinion, this is what the presidential amendment to the Russian Constitution is all about.

From our partner International Affairs

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Coronavirus: A blessing in disguise

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Last week, many universities and colleges in Europe and other countries canceled classes and moved to online instruction amid coronavirus fears as the authorities are trying to check the spread of the COVID-19 pandemic. Paradoxically, such measures can prove beneficial to the world’s leading universities that practice online training and have developed platforms for this, above all in Russia, where the oldest educational institutions have long been using digital technology in teaching.

St. Petersburg State University (SPbU), the alma mater of Russia’s President Vladimir Putin, is among the institutions, which are best prepared to go on-line, and a large number of dedicated courses developed by the university can already be found on federal educational platforms such as https://openedu.ru/. The issue of digital education featured prominently on the agenda of the 4thInternational Labor Forum held in St. Petersburg in February – the last major international event held by the university before the onset of the coronavirus pandemic. Speaking at the forum, the university’s rector, Nikolay Kropachev, described SPbU as being at the forefront of the development of online courses and distance learning.

Nikolay Kropachev also said that the university had come a long way in promoting international cooperation, and was among the first to protect foreign students from being subjected to irrational and ill-advised measures related to the spread of coronavirus. In February, after many Russian politicians proposed isolating all students from Southeast Asia, Nikolay Kropachev appealed to common sense, questioning the need to place in quarantine for several months students who have not been in their home country since their last vacation.

Now that the entire university has gone on a kind of “antiviral” vacation, St. Petersburg State University is working out an algorithm of distance learning, including by foreign students, who come for a year or two studying in English and other languages. Thus, even if the coronavirus epidemic lingers on, students will not lose a semester or two and will be able to fully communicate with their tutors via a computer screen. Also, everyone is welcome to come aboard and join the training process. For more details, go to the University website.

Note: St. Petersburg State University is a complex of early 18th century buildings – the city’s oldest stone structures, which housed the ministries of Russia’s first emperor, Peter the Great. Nikolay Kropachev wants to move some of the classrooms out to create in their place several museums dedicated to Russian history and Russia’s greatest scientists. Just like other Russian universities, SPbU now has chance to check the effectiveness of its achievements in the field of distance learning. “A blessing in disguise” as the Russian proverb has it. 

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