Russian President Vladimir Putin introduced a government filled with loyalists on Monday, strengthening his control over the economy and national security following protests and limiting Prime Minister Dmitry Medvedev's ability to implement market reforms. Putin, aged 59, chose to maintain continuity by keeping his ally Igor Shuvalov as first deputy prime minister responsible for economic policy, while Igor Sechin will continue as his energy chief in a role outside of the government. Putin announced several new names for cabinet positions at a meeting in the Kremlin, but retained a core group of familiar faces, showing little desire for policy changes at the beginning of his six-year presidential term. The former KGB agent solidified his influence over the "power" ministries by appointing Moscow police chief Vladimir Kolokoltsev as interior minister, demonstrating his trust in a man who has used force against protesters demanding Putin's resignation. Putin indicated continuity in international and military matters by keeping Foreign Minister Sergei Lavrov and Defense Minister Anatoly Serdyukov in their positions, as well as maintaining Deputy Prime Minister Dmitry Rogozin, an ally overseeing the defense industry. Putin, addressing the new cabinet in a Kremlin meeting broadcast on state television, acknowledged the challenging work ahead due to uncertainties in the world economy. He emphasized the importance of implementing a privatization program and reducing the economy's reliance on oil and gas exports. Putin has also faced significant protests over allegations of electoral fraud and concerns about his prolonged rule. The opposition, representing a growing civil society, criticizes Putin for ignoring their views and hindering economic and political reforms in Russia. Putin's appointment of Kolokoltsev to the Interior Ministry signals his resistance to demands for more political freedom and decentralization of power. Opposition leader Boris Nemtsov told Reuters that there is a man who disrupts peaceful meetings with the use of cudgels, and this behavior is in line with the current approach of Putinism. Dmitry Medvedev, who became prime minister after Vladimir Putin's return to the presidency, has vowed to implement policies that promote economic growth and privatization. However, the process of forming the new government has raised concerns about potential divisions between the ruling tandem. Alfa Bank, based in Moscow, predicts that the new cabinet will prioritize budget stability over a pro-market agenda. The new cabinet is seen as an attempt to balance power between the president and PM, making it challenging to implement a unified economic agenda. The inclusion of new members, particularly from the group of young market liberals who worked under Medvedev, suggests a shift in responsibilities and priorities within the government. For example, Arkady Dvorkovich, now a deputy premier, is expected to oversee energy and industry policy, areas he had limited influence over in his previous role as economic adviser. Alexander Novak, a former deputy finance minister, was appointed as energy minister, indicating continued control by Sechin over the oil and gas sector. Mikhail Abyzov, another former aide to Medvedev, was appointed as coordinator of an "open government" forum, suggesting a continuation of discussions without significant action. Putin, who resigned as president in 2008 due to constitutional restrictions, has expanded his control over economic policy, traditionally overseen by the prime minister, by appointing individuals who align with his belief in state-led development to key positions. Anton Siluanov, a career bureaucrat, remains as finance minister, while Andrei Belousov, a pro-Putin economist, has been promoted to economy minister. Former Finance Minister Alexei Kudrin, who was removed from government in a power struggle with Medvedev, criticized the new government, stating that it lacks the ability to address the challenges facing Russia. Kudrin, who is still close to Putin, has been mentioned as a potential future prime minister. Analysts predicted that the cabinet would probably not have independence, with attention turning to Putin's Kremlin team for clues on policy direction during his six-year term. The balance of power in decision-making is expected to shift from the government to the presidential administration, according to Alexander Morozov, chief economist at HSBC in Moscow. Despite Russia's 4.9 percent economic growth in the first quarter, which was attributed to pre-election spending, concerns remain about the country's reliance on oil revenues. German Gref, head of Sberbank, warned of the potential consequences of this "oil curse." The government must establish a positive environment for investment and economic growth. Gref's bank is the top candidate for privatization, but the planned sale of a 7.6 percent stake has been delayed multiple times. Shuvalov recently blocked a sale due to poor market conditions, which have since worsened, decreasing the stake's value to $4.3 billion. The English-speaking lawyer is seen as a key figure who can mediate between market liberals and those, like Putin, with a background in security services. "Shuvalov has supported privatization in the past," said Peter Westin, chief economist at Moscow brokerage Aton. The decision to proceed and the pace at which it happens is determined by the price of oil.