Russian president: anti-crisis steps inefficient

MOSCOW MILLS — Russian President Dmitry Medvedev on Sunday issued a veiled criticism of his predecessor and mentor Vladimir Putin, saying the Cabinet has dragged its feet in implementing anti-crisis measures.

Medvedev said the Cabinet's financial rescue package has been only 30 percent implemented so far, which is "slower than current circumstances require."

Putin was barred constitutionally from seeking a third straight term as president, and became prime minister after Medvedev, his longtime protege and favored successor, was elected last March. Putin is still seen as the man calling the shots in Russia.

"I have to admit that the planned measures are being implemented more slowly than we expected," he said on a visit to an engine-making plant. He didn't specifically blame Putin or anyone else in the Cabinet.

Last year, Russia's government announced more than $20 billion in a financial aid package aimed to support industrial majors, subsidize key industries and help small business. But the rescue package has been slow to reach industries as banks are offering credit at exceptionally high interest rates and bureaucracy is putting obstacles on the way to get loans from state-controlled banks, Medvedev said.

Russia's industrial production in November dropped 11.1 percent compared to the previous month. It fell 2.7 percent between January and November 2008 compared to the same period last year, the Industry and Trade Ministry said Sunday.

The global financial crisis is the biggest test Russia has faced in a decade. High oil prices fueled an eight-year consumer boom, with Russians flocking to banks for mortgages, car loans and other credit. As the credit crunch began to take its toll on the economy, banks have dramatically cut on lending and increased interest rates.

Observers warned that the economic crisis is likely to quickly erode the popularity of both Medvedev and Putin, and Medvedev's statement sounded like an attempt to shift the blame for worsening economic conditions.

The remarks marked the second time in two weeks when Medvedev criticized his former patron since March's presidential election. He said in late December that the Cabinet's anti-crisis program was "well-balanced but not ideal."

Some analysts interpreted that statement as a sign of growing friction in the Putin-Medvedev tandem.

A hasty passage of constitutional amendments that extended the presidential term from four to six years has stoked speculation that Putin wants to return to office now before the financial crisis erodes his popularity.

Most analysts expect Medvedev would step aside if Putin asked him to do so. But some think the president could try to strengthen his position at Putin's expense as Russians become increasingly angry over economic difficulties.

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