Image: Vladimir Putin
Ivan Sekretarev  /  AP
Russian Prime Minister Vladimir Putin's proposal for higher taxes for the wealthy appears to reflect growing discontent over the wide gaps between the grandiosely rich and the millions of Russians who continue living in poverty or marginal circumstances.
msnbc.com news services
updated 9/24/2011 12:02:22 PM ET 2011-09-24T16:02:22

Vladimir Putin said Saturday he'll run for Russia's presidency in 2012, almost certainly ensuring he'll retake the office he previously held and likely foreshadowing years more of a strongman rule that many in the West have called a retreat from democracy. If Putin wins two presidential terms in a row, he will have been atop the Russian hierarchy for almost a quarter-century.

In nominating Putin on Saturday, his United Russia party also approved his proposal that President Dmitry Medvedev take over Putin's current role as prime minister. Putin took over the premiership after serving as president from 2000-2008, bowing to term limits. But he was always the more powerful figure, with Medvedev viewed as a caretaker president.

During his presidency, Putin ruled Russia with a steely command, bringing about a system known as "managed democracy" that saw opposition politicians all but eliminated from the national eye. His personal popularity aided his maneuvering. Many Russians view Putin as the strong, decisive figure needed by a sprawling country troubled by corruption, an Islamist insurgency and massive economic inequality.

Dmitry Medvedev
Mikhail Klimentyev  /  AP
Russian President Dmitry Medvedev chairs a Security Council meeting in the Gorki residence outside Moscow, Friday, Sept. 23, 2011. (AP Photo/RIA Novosti, Mikhail Klimentyev, Presidential Press Service)

Putin's nomination at a congress of the United Russia party end months of intense speculation as to whether he would seek to return to the Kremlin or whether he would allow the more mild-mannered and reform-leaning Medvedev to seek another term in next year's election.

The presidential election, to be held March 4, is preceded by national parliamentary elections on Dec. 4, in which United Russia will seek to retain its dominance; the party has 312 of the 450 seats in the current parliament.

The period for formal submission of presidential candidates' names has not yet begun, and it is unclear who might choose to challenge Putin for president. Constitutional changes have extended the presidential term to six years from four beginning in 2012, meaning Putin could stay on as president through 2024.

US: 'Reset' endures no matter who is president
The White House said Saturday it expects to keep making progress in the "reset'' of U.S.-Russia relations regardless of who becomes the next Russian president.

"The question of who will be the next Russian president should be for the Russian people to determine,'' White House spokesman Tommy Vietor said.

"While we have had a very strong working relationship with President Medvedev, it's worth noting that Vladimir Putin was prime minister throughout the reset,'' Vietor said. "We will continue to build on the progress of the reset whoever serves as the next president of Russia, because we believe that it is in the mutual interests of the United States and Russia and the world.''

Video: Putin to run for president in 2012 (on this page)

As president, Medvedev called for improvements in Russia's unreliable court system and for efforts against the country's endemic corruption. But his initiatives have produced little tangible result. Moving Medvedev to the premiership could set him up to take the brunt of criticism for austerity measures that Putin has warned will be necessary for Russia amid global economic turmoil.

Medvedev's advisers were clearly disappointed that he would not have another term in the Kremlin to try to continue pursuing reforms and bristled at political maneuverings.

Medvedev's presidency help hopes for change "but our political elite made a different decision and chose the path to so-called stability," Yevgeny Gontmakher of the Medvedev-established Institute for Contemporary Development think-tank, said on Ekho Moskvy radio.

"This filthy deal of the country's supreme authorities is a blow to the institution of the presidency," Kremlin-connected analyst Gleb Pavlovsky told the radio station.

Putin started a carefully orchestrated series of maneuvers at Saturday's session of the party congress in a Moscow sports arena by proposing that Medvedev head the party list for the December elections. Medvedev then proposed that Putin be the party's presidential candidate, and Putin returned to the stage to accept the proposal and express support for Medvedev as prime minister.

On his return to the stage, he found the microphone had been turned off temporarily, but said with a smile "I will speak louder. My commander's voice has not yet been lost."

The congress approved the moves with no apparent opposition. Despite apparently growing discontent among ordinary Russians with the party, United Russia exerts such an overwhelming presence in the country's politics that Putin's election and Medvedev's switch to the premiership is virtually ensured.

'Openly and honestly'
Many connect Putin with Russia's turnaround from post-Soviet poverty to prosperity, largely driven by high prices for Russia's vast supplies of oil and natural gas. But growing awareness of the need to move beyond a natural-resources economy could force Putin in a new term as president to pursue reforms, some analysts say.

"I expect Putin will establish a very pro-business and pro-reform cabinet," said Chris Weafer, chief strategist of the Russian investment bank Troika Dialog.

Putin also proposed Saturday that Russia's richest citizens face higher taxes. The flat income tax that came into effect during Putin's 2000-2008 presidency has been widely praised as improving tax collection and Putin's proposal would not change that, but he called for increases in consumption and real estate taxes that hit the rich comparatively harder.

Putin, who built his popularity on the back of strong economic growth, told the party congress on Friday that salaries and pensions would continue to grow, and he promised increased funding for education, health care and housing.

But he also cautioned that the government may need to take unpopular steps to cope with the global financial turmoil.

"The task of the government is not only to pour honey into a cup, but sometimes to give bitter medicine," Putin said. "But this should always be done openly and honestly, and then the overwhelming majority of people will understand their government."

The Associated Press and Reuters contributed to this report.

© 2013 msnbc.com

Video: Putin to run for president in 2012

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