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Stanislav Belkovsky, the Russian political analyst and insider, gave sensational interviews in November 2007 to Die Welt and The Guardian, stating that Putin was worth approximately $40 billion. He said Putin was the beneficial owner of 37 percent of Surgutneftegaz ($18 billion), 4.5 percent of Gazprom ($13 billion), and half of a Swiss-based oil-trading company Gunvor ($10 billion)

Stanislav Belkovsky, the Russian political analyst and insider, gave sensational interviews in November 2007 to Die Welt and The Guardian, stating that Putin was worth approximately $40 billion. He said Putin was the beneficial owner of 37 percent of Surgutneftegaz ($18 billion), 4.5 percent of Gazprom ($13 billion), and half of a Swiss-based oil-trading company Gunvor ($10 billion).* If true, this fortune would make Putin one of the richest people in Europe and probably the world. It would also make him one of the most corrupt.

The legislation prohibits conflicts of interest, requires government workers to report income and property, and mandates them to report on coworker noncompliance. It is tailor-made for a behind-the-scenes assault on Putin's power and legitimacy.

So long as Russia's oil-fueled prosperity soared, people accepted Putin's implicit bargain: government corruption and constricted civil rights in exchange for rising living standards. But today, with Russia's economy in shambles, this social contract is fraying. Ordinary Russians are already taking to the streets demanding the type of change Putin is unlikely to deliver. He epitomizes the KGB old guard who got Russia into this mess. Sooner or later, he will become the Russian financial crash's most prominent victim.

Medvedev, a lawyer by training and instinct, offers perhaps the only realistic hope of turning Russia around, but he can't operate freely while Putin is still effectively in charge. Seemingly aware of this, Medvedev has, in recent weeks, taken steps to distance himself from his mentor and might be setting the stage to force him out of government.

When Medvedev became president in May 2008, the world economic situation seemed stable. Oil was more than $140 a barrel and Russian political leaders were riding high. With living standards rising for most Russians, political elites enjoyed the luxury of not having to make hard choices.

President Dmitry Medvedev vowed Tuesday to press ahead with an ambitious overhaul of Russia's armed forces despite the nation's economic problems and vocal opposition from within the military. Medvedev promised weapons upgrades but also endorsed organizational changes that will cut the officer corps by more than half, or as many as 200,000 positions.

The plan, first disclosed in October, envisions the most dramatic transformation of the Russian military since World War II, abandoning a structure designed to mobilize large numbers of new troops to fight a major war and replacing it with a leaner, standing army that can respond more quickly to local conflicts. Thousands of combat units staffed now only with officers would be eliminated, and the military's four-level command structure would be trimmed to a three-tier hierarchy.

The plan has run into stiff resistance from officers worried about cuts as well as retired generals and opposition politicians who say it will leave Russia too weak to prevail in a war against a strong opponent such as NATO or China. Russia's most severe economic crisis in a decade has also exacerbated concerns about the welfare of demobilized officers and the government's ability to equip the smaller military with new weapons as promised.

According to the Russian constitution, the president is supposed to define the guidelines for domestic and foreign policies. But in practice, he is a ruler without his own troops. Medvedev may be the official head of state, but it is actually his predecessor, current Prime Minister Putin, who controls Russia's fate, believes political scientist Fyodor Lukyanov. The editor of the journal Russia in Global Affairs told Moscow magazine The New Times that Medvedev is crippled "by the very source from which he derives his legitimacy -- Vladimir Putin."

Although Medvedev introduced a 100-member talent pool for key government positions, and helped a few classmates with their ascent to higher judicial posts, the real power positions remain firmly in the hands of Putin loyalists.

But Medvedev has eagerly sent out the message that he is devoted to a more liberal course. He wisely agreed to an interview with the highly regarded, Kremlin-critical newspaper Novaya Gazeta. On the day of the interview, he also invited human rights activists to the Kremlin, heartily congratulated the chair of the Committee of Soldiers' Mothers on her birthday and addressed the guests as "honored colleagues." Another signal of a softer stance in the Kremlin is the release of Svetlana Bakhmina. The respected former attorney of Khodorkovsky's Yukos oil company had been in prison since 2004 and the Kremlin refused to reduce her sentence despite the fact that she was pregnant. However, shortly after Medvedev's meeting with human rights activists, she was released on parole and reunited with her family.

President Obama said Thursday that Prime Minister Vladimir V. Putin of Russia still had “one foot” in the cold war and needed to move on, a provocative assessment for an American leader just days before traveling here for the first time since taking office.

“It’s important that even as we move forward with President Medvedev that Putin understand that the old cold war approaches to U.S.-Russian relations is outdated — that it’s time to move forward in a different direction,” Mr. Obama said in an interview with The Associated Press. “I think Medvedev understands that,” he said. “I think Putin has one foot in the old ways of doing business and one foot in the new.”

Mr. Obama’s distinction between the two Russian leaders reflects an American strategy to build up Mr. Medvedev as a possible counterweight to Mr. Putin, who is generally believed to still be the pre-eminent power in Russia.

Medvedev is trying a different approach: invite the activists to the Kremlin. Two weeks ago he met with representatives from 36 of Russia's leading nongovernmental organizations—groups that Putin had practically tried to eradicate with strict registration laws

The president said he regretted that Putin-era laws had been taken as meaning "all NGOs are enemies of the state." On the contrary, Medvedev said, their work is "essential for the health of our society."

The new tolerance goes far beyond the rights groups. State-controlled television has also undergone a marked liberalization. There's been a revival of televised political satire, and in February, Channel One gave serious airtime to Aleksandr Shokhin, head of the influential Russian Businessmen's Union, as he denounced the new charges against Khodorkovsky as a complete sham.

The US and Russia have agreed to work towards cutting deployed nuclear warheads to as few as 1,500 each under an agreement signed by Barack Obama on his first trip to Russia as president.

Obama and the Russian prime minister, Dmitry Medvedev, signed a framework deal aimed at cutting warheads to a maximum of 1,675 within seven years of a nuclear arms reduction treaty coming into force.

Current treaties allow for a maximum of 2,200 warheads, though both sides are thought to have more than that deployed, or capable of launch. According to some expert estimates of current numbers, the new commitment would mean each side scrapping almost 1,000 warheads.

The summit comes at a time of growing frustration between Brussels and Moscow over a host of issues ranging from energy policy to the war in Georgia. The EU was irritated by Russia's gas war in January with Ukraine and Medvedev's failure to pull Russian troops out of the breakaway Georgian republics of South Ossetia and Abkhazia.

For its part, the Kremlin is annoyed by the EU's attempt earlier this month to improve ties with half a dozen post-Soviet countries. A summit of 33 countries in Prague brought the EU's 27 governments together for the first time with the leaders of Ukraine, Georgia, Moldova, Armenia, Azerbaijan and Belarus.

Russia believes the EU's "eastern partnership" initiative is a challenge to its own strategic and security interests in a region it regards as its backyard. Medvedev insists that Moscow enjoys what he calls "privileged interests" in states occupying the volatile buffer zone between the EU and the Russian Federation.

Real power has remained solidly in the grasp of Prime Minister Putin and his inner circle, while the president has appeared to be little more than their fresh-faced, sweet-talking puppet.

But lately some of Medvedev's detractors are starting to think they may have underestimated him. The president has begun publicly overturning some of Putin's key policies, rolling back repressive legislation and paying attention to the government's critics rather than trying to silence them.

Medvedev's liberalized approach has had little visible affect on the country's hard-nosed foreign policy. So far, Putin seems firmly in charge there. But inside Russia, many activists say they're floored by the recent thaw, after a decade of being frozen out.

Russian President Dmitry Medvedev says imposing additional sanctions on Iran would only increase tensions between Tehran and the West.

In an interview with Italy's Rai television, Medvedev explained that Moscow supports what he called the new US administration's policy to pursue reconciliation with Tehran. "If I understand correctly, the United States would like to establish more open and more direct relations with Iran," Medvedev said during the interview, which was aired on Saturday. "We support this choice. It would be counter-productive to resort to other sanctions," he added.

US President Barack Obama and his Russian counterpart Dmitry Medvedev are expected to announce nuclear weapons cuts when they meet later in Moscow.

Officials on both sides were quoted as saying a document had been agreed, though Russia said it was not final. Both men say they want significant cuts - possibly down to 1,500 warheads each.

The Russian president said in an interview for Italian media released on Sunday that US missile shield plans for Europe put a "very prominent nuclear country like Russia... in a difficult situation".

Russian warships, led by the nuclear cruiser Peter the Great, are in the Caribbean Sea for the first time since the end of the Cold War to begin manoeuvres with the Venezuelan navy.

The exercises coincide with a visit to Caracas by the Russian president, Dmitry Medvedev, who is due in Venezuela on Wednesday, and are illustration of how close military ties between the two countries have grown in recent years.

While the Russian government has been playing down any political dimension to the training, the Venezuelan president, Hugo Chavez, has been doing just the opposite. In recent speeches, he has referred to Venezuela's "strategic partnership" with Russia and said the military ties were part of building a more "multi-polar world".

All year, despite its own economic spasms, Moscow has earmarked great chunks of cash for its impoverished post-Soviet neighbors, seeking to lock in their loyalty over the long term and curtail Western influence in the region.

But the neighbors seem to have other ideas. Belarus — which was promised $2 billion in Russian aid — is in open rebellion against the Kremlin, flaunting its preference for Europe while also collecting money from the International Monetary Fund. Uzbekistan joined Belarus in refusing to sign an agreement on the Collective Rapid Reaction Forces, an idea Moscow sees as an eventual counterweight to NATO.

Belarus — which was promised $2 billion in Russian aid — is in open rebellion against the Kremlin, flaunting its preference for Europe while also collecting money from the International Monetary Fund. Uzbekistan joined Belarus in refusing to sign an agreement on the Collective Rapid Reaction Forces, an idea Moscow sees as an eventual counterweight to NATO.

A three-step process for the phased elimination of nuclear weapons will be unveiled by a powerful group of former policy makers in Washington tomorrow.The report by the Global Zero Commission, formed last December to urge Barack Obama and Dmitry Medvedev to rid the world of nuclear weapons, is released ahead of a summit in Moscow between the two leaders next weekend.

The US and Russia possess 95% of the world's strategic nuclear warheads – about 5,000 each. Next weekend could see agreement to cut the number to 1,500 each.

The three-step disarmament process will be outlined in Washington DC by the 100 Global Zero commissioners including Richard Burt, the former chief US negotiator for Start-1 and a former ambassador to Germany, and Igor Yurgens, a senior adviser to Medvedev.

Late last month, the Ukrainian police briefly detained Russian military personnel who were driving truckloads of missiles through this port city, as if they were smugglers who had come ashore with a haul of contraband. Local officials, it seemed, were seeking to make clear that this was no longer friendly terrain.

President Dmitri A. Medvedev of Russia denounced Ukraine this month for “anti-Russian” policies, citing in particular its “incessant attempts” to harass Russia’s naval base in Sevastopol. Mr. Medvedev condemned Ukraine’s bid for NATO membership and its support for Georgia, and said he would not send an ambassador to Ukraine.

The Ukrainians have not only briefly detained Russian military personnel transporting missiles on several occasions this summer. They also expelled a Russian diplomat who oversees naval issues and barred officers from the F.S.B., the Russian successor to the K.G.B., from working in Sevastopol.

US President Barack Obama and Russian President Dmitry Medvedev have reached an outline agreement to cut back their nations' stockpiles of nuclear weapons.The "joint understanding" signed in Moscow would see reductions of deployed nuclear warheads to below 1,700 each within seven years of a new treaty.

The accord would replace the 1991 Start I treaty, which expires in December.

Mr Obama said the two countries were both "committed to leaving behind the suspicion and the rivalry of the past".

A third of Russians polled by the BBC are concerned by falling living standards and financial problems due to the global economic crisis. Some 30% of those polled said a falling standard of living was the single biggest issue facing the country. A significant number also mentioned inflation and high prices.

The BBC Russian service poll found that many more Russians believe PM Vladimir Putin holds real power in the country, rather than President Dmitry Medvedev. Almost twice as many people said Mr Putin was in charge compared to those who thought Mr Medvedev was in control. And almost 60% of those polled also said they believed Mr Putin, who has already served two terms as president, would return to the post after the next election, due in 2012.

According to the latest official figures almost two million Russians lost their jobs between January and the end of March. It has been reported that this means unemployment hit almost 12% in March, the worst figure for many years.

Russian President Dmitry Medvedev has dismissed the head of the country's powerful GRU military intelligence service, the Kremlin has said. Mr Medvedev signed a decree on Friday replacing Gen Valentin Korabelnikov with Gen Alexander Shlyakhturov. Officials gave no reason for the move. Gen Korabelnikov had led the Main Directorate of Intelligence since 1997.

The Main Directorate of Intelligence (GRU) of the General Staff is Russia's largest intelligence agency. It is believed to have six times as many agents in foreign countries as the Russian Foreign Intelligence Service (SVR), one of the successors to the Soviet KGB.

Nearly eight months after the war between Russia and Georgia, Russian troops continue to hold Georgian territory that the Kremlin agreed to vacate as part of a formal cease-fire, leaving a basic condition of that agreement unfulfilled.

It also underscores the strength of Russia’s military position in the southern Caucasus and its enduring confidence in undermining President Mikheil Saakashvili of Georgia and standing up to the West, even as Mr. Obama and President Dmitri A. Medvedev of Russia have signaled an intention to improve relations. Mr. Obama and Mr. Medvedev met on Wednesday, and exchanged warm remarks and pledges to cooperate, raising questions in Tbilisi, Georgia’s capital, about whether the United States would push to have the cease-fire plan fully honored.

Under the conditions of the cease-fire, the armed forces of all sides were to return to the positions they held before the war, which erupted Aug. 7. The agreement required a cessation of fighting, corridors for aid delivery and no use of force. It also granted Russia a loosely defined permission to take further security measures while waiting for international monitors.