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Strategies & Market Trends : Investment in Russia and Eastern Europe

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To: Z Analyzer who wrote (1114)12/19/2000 10:49:34 PM
From: CIMA   of 1301
 
Putin Moving to Control Russia on All Political Levels

Summary

In the coming months, the Russian Duma will vote on legislation
that would redefine the legal concept of a political party. Under
this new legislation, most of the smaller political parties would
disappear or be absorbed into larger parties, leaving the Unity
Party and the Communist Party as the two largest parties in
politics. Once the law passes, the Unity Party, backed by
President Vladimir Putin, will increase control of politics at
the local and the federal levels.

Analysis

Russia's Central Elections Commission is pressing the Duma to
pass a bill that would redefine the terms and establishment of a
political party in Russia. According to the Moscow Times, this
new law would take effect in two years and reduce the existing
number of political groups by more than 90 percent, leaving only
major players at the local and federal levels.

The law will probably pass through the Duma, as the large
political parties - namely the Communist Party and the Unity
Party - control the majority of parliamentary seats and have the
most to gain. Both parties originally banded together as a
majority coalition in December 1999, but in reality they often
clash over economic issues, such as passing the 2001 budget.
Because neither party controls a majority of parliament's 450
seats, they count on the smaller parties' support, on an issue-
by-issue basis, to pass legislation through the Duma.

Though both parties will gain supporters, the Unity Party will
probably gain the most, therefore building a strong party
infrastructure from the local level to the federal level. Under
the new law, a political party would need at least 10,000
registered members nationwide, with at least 100 registered
members at branch offices in at least 45 of Russia's 89 regions.
Through this infrastructure, the Unity Party, controlled largely
by President Vladimir Putin, will secure a stronghold over
Russian politics at every level.

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