Thursday, February 18, 2016

Putin Removes Head of VEB State Development Bank as Crisis Bites

 
Reuters, 18/02 17:17 CET

By Margarita Papchenkova, Darya Korsunskaya and Oksana Kobzeva

MOSCOW (Reuters) – President Vladimir Putin has removed the head of Russia’s ailing state development bank VEB after its bailout needs rose to $16 billion, two sources told Reuters, a sign that in times of crisis Putin puts fiscal discipline before loyalty to allies.

The dismissal of Vladimir Dmitriev, if confirmed, is the latest evidence that fealty to Putin is not the get-out-of-jail card it used to be. He may have a reputation in the West for being a tough leader, but at home he is known for his reluctance to sack people he deems devoted to him, even if they mess up.

Indications are growing however that his country’s economic crisis – fuelled by low oil prices, a weak rouble and Western sanctions – is changing the Russian leader’s calculus.

“Putin doesn’t really like to fire people, even for big failures,” one senior government official told Reuters. “But the crisis has changed this mindset – there is no money any more.” 

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Source: Euronews

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