Putin's choice of new PM seen as surprise

RUSSIA: President Vladimir Putin named an EU envoy and former head of Russia's notorious tax police as the country's new prime…

RUSSIA: President Vladimir Putin named an EU envoy and former head of Russia's notorious tax police as the country's new prime minister yesterday, hailing him as a political all-rounder with a tough crime-fighting edge, writes Daniel McLaughlin in Moscow

Mr Mikhail Fradkov's nomination surprised a nation alive with speculation over who Mr Putin would name as successor to Mr Mikhail Kasyanov, the prime minister who was sacked along with his cabinet by the former KGB spy last week.

A grey figure, Mr Fradkov appeared to offer something to both factions now fighting for Kremlin influence; the West-leaning, business-friendly liberals and the security service veterans who have promised a crackdown on corruption.

"It had to be a highly professional person, well-organised, with strong experience in various branches of state activity," Mr Putin said after discussing his nomination with leaders of the pro-Kremlin United Russia party that dominates parliament. It will rubber-stamp Mr Fradkov's nomination on Friday.

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Mr Putin said two terms as trade minister and a year as EU envoy made Mr Fradkov (53) sound on economic issues and an experienced negotiator, while a spell on Russia's Security Council and as chief of the tax police gave him "thorough experience in fighting corruption".

With just two months to go until eight former communist-bloc countries join the EU, Mr Fradkov's promotion also suggested the Kremlin was keen to have government led by a man who is known in Brussels and familiar with its workings.

"This is a positive signal of the importance that Russia attaches to relations with the EU," said Mr Reijo Kemppinen, a spokesman for the European Commission.

"Mr Fradkov has deep knowledge of the EU, and his appointment will certainly facilitate contacts and understanding between us."

Russian markets wobbled as they took in Mr Putin's choice, but recovered as most analysts deemed Mr Fradkov a figure with little political ambition who would offer few surprises while implementing the Kremlin's well-known policy of tax discipline.

A recent crackdown on corruption has snared Mr Mikhail Khodorkovsky, Russia's richest man, and several other wealthy officials at the Yukos oil firm, and they face charges of tax evasion and fraud on a massive scale.

"He's a civil servant who represented Russia at the European Union and World Trade Organisation. He should be an acceptable figure for Western investors," Mr Max Shein, chief analyst at the BCS financial services firm, said of Mr Fradkov. "At the same time he headed the tax police . . . which may not be so good for Yukos and other companies."

Mr Putin is set for a landslide win in March 14th presidential elections. When he sacked Mr Kasyanov and his cabinet, he said he wanted to give Russians a chance to acquaint themselves with a new government before the polls.

The style of Mr Fradkov, a dour man, is set to differ sharply from that of his predecessor. The dapper Mr Kasyanov was the last senior Yeltsin-era official to survive under Mr Putin, and clashed with the Kremlin over economic policy and the arrest of Mr Khodorkovsky.

Some analysts said Mr Fradkov would be a bland interim manager for Mr Putin, allowing him to select a long-term successor for when he steps down in 2008.

Mr Fradkov could be used to take flak for unpopular but much-needed cutbacks in housing, healthcare and education spending. No one saw him as a real protégé for Mr Putin, and he will not tip the balance of power in favour of either the liberal clique or the former KGB men.