Spies 'R' Us -- Who's Running Russia?

Putin appoints an unknown as his new PM, prompting succession debate.

ByABC News
January 8, 2009, 1:14 AM

Sept. 12, 2007 — -- When on the eve of the millennium then-President Boris Yeltsin appointed Vladimir Putin as his successor, the world was astonished.

To Russians the nomination was less of a surprise – after all he was promoting the prime minister, who by then had been in office for five months and wasn't unknown to most Russians.

As the Russian Cabinet resigned today at the behest of Putin, most Russians had no doubt that the purpose of that move was to promote deputy Prime Minister Sergei Ivanov to the post of prime minister.

Ivanov has been Putin's close friend and associate for many years and thought by most observers to become Putin's successor as president of Russia. The prime minister's office would be the perfect step towards presidency in 2008, just as in Putin's case in 2000.

However, it was not Ivanov who was nominated today, much to the surprise of even reliable Russian broadcasters such as the Echo Moskvy radio station.

The man Putin named is Viktor Alexeyevich Zubkov, a little known deputy minister. The Duma, Russia's parliament, must still rubber stamp Zubkov's nomination and may do so as soon as Friday.

Caught flat-footed by the news, Russian media were able to produce little more than dry facts from the nominee's career.

Viktor Zubkov, 66, is an economist from St. Petersburg. He was a deputy minister in charge of taxes, and will now come to the office of prime minister from holding the post of deputy finance minister. He is also the chairman of the committee on financial monitoring – a low-profile but significant body which tries to combat Russia's huge problem with money laundering. Zubkov is also chairman of the ruling United Russia party's St. Petersburg chapter.

Above all, however, Zubkov has the prime credentials for holding a top post in Russia's power structure – he is from Putin's inner circle of friends. He was Putin's close associate when both worked in St. Petersburg's mayor's office, both in charge of foreign relations.