Russian President Vladimir Putin introduced a new government on Monday that is filled with loyalists, further solidifying his control over the economy and national security following protests. Prime Minister Dmitry Medvedev's ability to implement market reforms has been limited as a result. Putin, 59, has chosen to maintain continuity by keeping Igor Shuvalov as first deputy prime minister in charge of economic policy and Igor Sechin as his energy chief. While Putin announced several new cabinet appointments, he has kept many familiar faces in key positions, showing little interest in making significant policy changes at the beginning of his six-year presidential term. Putin has strengthened his control 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 calling for Putin's resignation. In terms of international and military affairs, Putin has maintained Sergei Lavrov as Foreign Minister, Anatoly Serdyukov as Defense Minister, and Dmitry Rogozin as Deputy Prime Minister overseeing the defense industry. Putin addressed the new cabinet during a Kremlin meeting, expressing the challenges of the current global economic situation and emphasizing the importance of implementing privatization and reducing dependence on oil and gas exports. He also acknowledged the recent protests against his extended term in office and dismissed calls for political reforms, signaling his intention to maintain central control over Russia. Opposition leader Boris Nemtsov told Reuters that a man who disrupts peaceful meetings with cudgels is following the logic of modern Putinism. Despite Prime Minister Medvedev's plans for pro-growth policies and privatization, concerns arose over factional divisions between the ruling 'tandem' as they switched jobs last September. Alfa Bank in Moscow noted that the new cabinet is more likely to prioritize budget stability over a pro-market agenda. The authors believe that the new cabinet represents an attempt to balance power between the president and prime minister, which could hinder the ability to implement a cohesive economic agenda. The cabinet includes some new members who were part of a group of young market liberals in Medvedev's administration, but who were unable to enact significant reforms during his presidency. One of these new members, Arkady Dvorkovich, has been appointed as one of six deputy prime ministers, with a focus on energy and industry policy, areas in which he had limited influence in his previous role as economic adviser. The energy minister position went to Alexander Novak, a former deputy finance minister, suggesting that Sechin will continue to control Russia's oil and gas sector despite leaving the government. Another former Medvedev aide, Mikhail Abyzov, was named coordinator of an "open government" forum, which has so far produced more discussion than action. Putin, who relinquished his role as president in 2008 due to constitutional restrictions, has expanded his control over economic policy by appointing individuals who align with his vision of state-led development to key positions such as finance and economy ministers. 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 his position in a power struggle with Medvedev, criticized the new government as lacking innovation and expressed skepticism about its ability to address the challenges facing Russia. According to analysts, it is expected that the cabinet will not have independence and decisions will be influenced by the Kremlin team led by Putin. The balance of power in decision-making is likely to shift towards the presidential administration, with little appetite shown for structural reforms. Despite a 4.9 percent growth in Russia's economy in the first quarter, it was largely due to pre-election spending, raising concerns about the country's budget balancing in the future. The head of Russia's largest bank, Sberbank, warned of the potential consequences of relying too heavily on oil revenue. The only choice the government has is to create a positive environment for investment and economic growth. Gref's bank is the top state asset scheduled for privatization, but the planned sale of a 7.6 percent stake has been delayed multiple times. Shuvalov recently stopped a sale due to poor market conditions, which have worsened, reducing the stake's value to $4.3 billion. The English-speaking lawyer is one of the few officials able to mediate between market liberals and those with a security services background, like Putin. "Shuvalov has supported privatization in the past," said Peter Westin, chief economist at Moscow brokerage Aton. The decision to proceed and the rate at which it progresses hinges on the price of oil.