Timothy Ash, senior emerging markets strategist at Bluebay Asset Management, said the changes could be seen as Putin trying to refresh things with a new prime minister and government.
“(They’ll be) more focus on reform, and improving the effectiveness of government to deliver growth and improving living standards,” Ash said in a research note immediately after the news.
“Many people thought Putin would do this after presidential elections, but he gave Medvedev a bit more time,” Ash added.
“I think all this is a response to opinion polls reflecting popular dissatisfaction with government and their lots in life, and ebbing support even for Putin,” Ash wrote. “In terms of timing, Putin has waited until what he sees as the external risks from sanctions moderating. He will sell this new, fresh government as part of a fresh start/reach out to the West.”
The dollar pushed higher against the ruble following the news, with the greenback up 0.4% on the Russian currency.
Adeline Van Houtte, a Europe analyst at The Economist Intelligence Unit, said the constitutional reforms would increase the powers of the prime minister and Cabinet members.
“This will fuel speculations ahead of 2024 (the end of Putin’s second consecutive term). Putin will now be able to choose loyalists that he will put in power positions in his new government while he might be preparing to transition to a PM position with enlarged powers in 2024.”
Source Article from https://www.cnbc.com/2020/01/15/russian-government-has-resigned-report-says-citing-pm.html
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