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The Russian state machine slows down and almost stops
On the background of painful sanctions Putin clans can not agree on the question about the arrest of tycoon

"The Russian state machine slows down and almost stops," according to Bloomberg journalists Irina Reznik, Evgenia Pismennaya and Ilya Arkhipov. "This assessment gives five officials close to President Putin. They say that the struggle at the center of the middle circle Putin slows down decision making at a time when the economy pressure of sanctions. In a situation where Putin focused on foreign policy, competing factions vie for influence, said these people, who wished to remain anonymous when discussing domestic issues," the article says.

According to these sources, one of the groups that gathered around the Prime Minister Dmitry Medvedev, concerned about the growing isolation of Russia from the global financial system. Another group, which includes heads of state-owned companies like Igor Sechin from Rosneft and veterans of the security services, favours the strengthening of state control over the economy.

According to the newspaper, Russia's ruling elite is experiencing a shake-up at a time when the economy is heading toward recession, the ruble record weakens, and the conflict in Ukraine exacerbates the confrontation with the U.S. and its allies. Oil prices fell to a minimum for the last 27 months, banks are increasingly applying for funding to the state, so that money becomes less.

"The conflict between rival Pro-Putin clans, which lasts for a long time, has escalated to war, " said Stanislav Belkovsky, a former adviser to the Kremlin. - Elite struggles for scarce housing assets.

"For its part, the President's press Secretary Peskov said that the disputes between officials do not affect the effectiveness of control and "wrong" to claim that Putin is too busy to deal with urgent economic issues," the article says.

"Disputes were always, " Peskov said in a telephone interview. Disputes are and will be. But the claim that there is escalation, absolutely wrong."

Meanwhile, according to officials, the civil strife of contending groups is enhanced because of the arrest Yevtushenkov and legal campaign Prosecutor's office for the nationalization of its oil company "Bashneft" (language edition).

Sources claim that Yevtushenkov is in close Alliance with Medvedev and his allies. "They don't get along with the "siloviki" - a group of powerful politicians, which includes such figures as Sergei Ivanov, the head of Putin's administration, those who in the past served in the secret service and had worked for decades with the President," reported by the journalists.

"Medvedev will lose this battle, and Bashneft will repeat the fate of Yukos," said Belkovsky.

"The state went on the offensive on private business, " says sociologist Olga Kryshtanovskaya. - There is a lack of resources. They need resources, and Putin in loyalty and accountability".

"People say that the officials who already have disagreements from Ukraine, now keep quiet and wait the thing out Yevtushenkov, and who might be the next," says the article.

October 2, Putin has tried to reassure investors, saying that the mass of the revision of privatization results will not.

"Five officials, who spoke after the arrest Yevtushenkov and before Putin commented on the potential sale of assets, said that the inability to agree almost makes policies needed to prevent recession in the economy and adaptation to sanctions," says the publication.

According to two sources, delayed reaction of Russia's economic problems can be attributed to the fact that Putin is busy foreign policy, Medvedev fell into indecision.

Meanwhile, Igor Sechin, has denied allegations that he allegedly directed case Yevtushenkov, to achieve control over the "Bashneft".

"It's a myth, " said Sechin in an interview on September 26. - Some agencies have a method of distraction, and in this case this topic for a distraction - it's me".

He drew a parallel between the case of "Bashneft" and investigation in connection with the Croatian company INA Industrija Nafte d.d. In Croatia, the former de facto President Ivo Sanader was found guilty of bribery and official misconduct.

"Nobody says that this situation has damaged the investment climate in Croatia, on the contrary, " said Sechin. Some heads of state agencies arrested, the investigation continues. And this market is very transparent, legitimate and safe for business. I think this way need to apply to this situation."

On June Sechin said: "At the head of government is Prime Minister with a huge experience that inspires respect."

For its part, the analyst Masha Lipman says, "When economic efficiency and rationality in conflict with control and rule, Putin always chooses the second one." According to her, the fraction of "statist" increasingly want full power for themselves. "This trend has become irreversible. Medvedev threatened, and his dismissal from the post of Prime Minister will destroy the last Bastion [faction] rationalists".
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