This article is from the source 'nytimes' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.nytimes.com/2015/08/18/world/europe/head-of-russias-national-railway-a-putin-associate-said-to-be-ousted.html

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
Head of Russia’s National Railway, a Putin Associate, Said to Be Ousted Shake-Up in Moscow as Railways Chief, a Putin Friend, Is Reported Ousted
(about 2 hours later)
MOSCOW — Vladimir I. Yakunin, the director of Russia’s national railway company and a longtime associate of President Vladimir V. Putin, has reportedly been ousted in one of the most significant shake-ups in domestic politics since the Russian economy slipped into recession last year. MOSCOW — Vladimir I. Yakunin, the director of Russia’s national railway company and a longtime associate of President Vladimir V. Putin, has reportedly been ousted in one of the most significant shake-ups in domestic politics since the Russian economy slipped into recession last year.
Mr. Yakunin, who has known Mr. Putin since the early 1990s, has accepted a mostly ceremonial political position in the upper house of Parliament, local news media reported.Mr. Yakunin, who has known Mr. Putin since the early 1990s, has accepted a mostly ceremonial political position in the upper house of Parliament, local news media reported.
His posting as a diplomat in the United States in the late Soviet period stoked speculation — never confirmed or denied — that he, like Mr. Putin, had worked for the K.G.B. He was also a co-founder of Bank Rossiya, which Western officials last year identified as having close financial ties to Mr. Putin’s inner circle.His posting as a diplomat in the United States in the late Soviet period stoked speculation — never confirmed or denied — that he, like Mr. Putin, had worked for the K.G.B. He was also a co-founder of Bank Rossiya, which Western officials last year identified as having close financial ties to Mr. Putin’s inner circle.
The bank, many of its clients and Mr. Yakunin himself were hit with sanctions by the United States in response to Russia’s annexation of Crimea. After the sanctions, Mr. Putin made a point of directing government business toward sanctioned companies, asking that his own salary as president, for example, be deposited in a Bank Rossiya account. The bank, many of its clients and Mr. Yakunin were hit with sanctions by the United States in response to Russia’s annexation of Crimea. Afterward, Mr. Putin made a point of directing government business toward sanctioned companies, asking that his salary as president, for example, be deposited in a Bank Rossiya account.
It was unclear whether the sanctions on Mr. Yakunin played any role in his departure from the top job. But the national railway company was frequently been embroiled in scandals and accused of mismanagement. It was unclear whether the sanctions on Mr. Yakunin played any role in his departure. But the national railway company has frequently been embroiled in scandals and accused of mismanagement.
A recent effort to spin off regional commuter train lines led to a total breakdown in service in many cities, angering commuters and embarrassing the president.A recent effort to spin off regional commuter train lines led to a total breakdown in service in many cities, angering commuters and embarrassing the president.
“Putin is a man who is fiercely loyal to people who have been loyal to him,” Cliff Kupchan, chairman of the Eurasia Group, a political risk consultancy in New York, said in a telephone interview, discounting the idea that sanctions alone could have cost Mr. Yakunin his job. “Putin is a man who is fiercely loyal to people who have been loyal to him,” Cliff Kupchan, chairman of the Eurasia Group, a political risk consultancy in New York, said in a telephone interview. He discounted the idea that sanctions alone could have cost Mr. Yakunin his job.
“If he were starting to go after his insiders, that could well lead to panic and a true threat to the regime,” Mr. Kupchan said of Mr. Putin. “If it’s more of a pinpoint strike against an oligarch, a loyalist, who presides over a key sector that needs to perform better, that’s a more plausible explanation.”“If he were starting to go after his insiders, that could well lead to panic and a true threat to the regime,” Mr. Kupchan said of Mr. Putin. “If it’s more of a pinpoint strike against an oligarch, a loyalist, who presides over a key sector that needs to perform better, that’s a more plausible explanation.”
The domestic policy shuffle in Moscow on Monday interrupted what had been a focus on Middle Eastern policy.The domestic policy shuffle in Moscow on Monday interrupted what had been a focus on Middle Eastern policy.
Russia’s foreign minister, Sergey V. Lavrov, met on Monday with his Iranian counterpart, Mohammad Javad Zarif, as the two countries pressed ahead with efforts to find a political solution to the Syrian civil war while preserving the rule of their ally there, President Bashar al-Assad. Last week, Mr. Lavrov met with the Saudi foreign minister and earlier in the month traveled to Qatar. Russia’s foreign minister, Sergey V. Lavrov, met on Monday with his Iranian counterpart, Mohammad Javad Zarif, as the two countries tried to find a political solution to the Syrian civil war while preserving the rule of their ally there, President Bashar al-Assad. Last week, Mr. Lavrov met with the Saudi foreign minister and earlier in the month traveled to Qatar.
By evening, state news outlets seemed to corroborate reports of Mr. Yakunin’s ouster by citing government officials discussing his future after leaving the railway, where he took the top position in 2005.By evening, state news outlets seemed to corroborate reports of Mr. Yakunin’s ouster by citing government officials discussing his future after leaving the railway, where he took the top position in 2005.
Also, earlier Monday, at a meeting of Mr. Putin and regional tourism officials, the railway company had, ominously, come under sharp criticism for the high price of its tickets. Earlier Monday, at a meeting of Mr. Putin and regional tourism officials, the railway company had, ominously, come under sharp criticism for the high price of its tickets.
The Senate, like much of the formal structure of government in Russia, is largely powerless in the political system that has emerged under Mr. Putin. In his role as railway director, however, Mr. Yakunin had been viewed as a powerful insider, controlling levers of influence over mining and oil and gas companies in setting freight rates.The Senate, like much of the formal structure of government in Russia, is largely powerless in the political system that has emerged under Mr. Putin. In his role as railway director, however, Mr. Yakunin had been viewed as a powerful insider, controlling levers of influence over mining and oil and gas companies in setting freight rates.
Russian Railways is also politically powerful as one of the largest civilian employers in Russia, and one of the largest in the world, with about a million employees.Russian Railways is also politically powerful as one of the largest civilian employers in Russia, and one of the largest in the world, with about a million employees.
In the mid 1990s, Mr. Yakunin and Mr. Putin, then a city official in St. Petersburg, joined six local businessmen in forming a cooperative of summer homes called Ozero, or “Lake,” outside of the city. In the mid-1990s, Mr. Yakunin and Mr. Putin, then a city official in St. Petersburg, joined six local businessmen in forming a cooperative of summer homes called Ozero, or “Lake,” outside the city.
The group, whose members were then mostly unknown publicly, went on to have an oversize influence over Russia’s economy during the oil boom and under Mr. Putin’s presidency. Members of Ozero accumulated billions of dollars in profits over the years in banking, retail gasoline and other ventures; members, including Mr. Yakunin, whose salary at the railway in 2013 was $15 million, deny they owe their riches to Mr. Putin’s rise in politics. The group went on to have an oversize influence over Russia’s economy during the oil boom and under Mr. Putin’s presidency. Members accumulated billions of dollars in profits over the years in banking, retail gasoline and other ventures; members, including Mr. Yakunin, whose salary at the railway in 2013 was $15 million, deny they owe their riches to Mr. Putin’s rise in politics.