Putin adviser quits, citing repression

MOSCOW – President Vladimir Putin’s economic adviser quit Tuesday, citing his disillusionment with a Kremlin he says is bent on eradicating political freedom and commandeering the country’s economy.

“It is one thing to work in a partially free country such as Russia was six years ago,” said Andrei Illarionov, who joined the Kremlin when Putin became president in 2000. “But it is quite another when the country has ceased to be politically free.”

For many, Illarionov’s resignation came as little surprise. The staunchly liberal economist had become a thorn in the Kremlin’s side, publicly rebuking his employer for the 2004 state takeover of Russian oil giant Yukos’ core subsidiary and, more recently, for its use of the state’s natural gas monopoly to turn the screws on Ukraine’s post-Orange Revolution government.

An adherent of market economics, Illarionov grew increasingly alienated by the Kremlin’s shift toward an economy stewarded by the state. The fulcrum for Russia’s economy is its energy sector, and in the past two years the Kremlin has reasserted its control over the country’s vast natural gas and oil wealth.

Analysts believe the Kremlin allowed the outspoken Illarionov to stay as a signal to the West that there was room on Putin’s team for a liberal voice.

“He was useful – the authorities could repel any accusations about a lack of democracy by pointing to Illarionov,” said Mikhail Delyagin, head of the Institute for Globalization Issues. “Moreover, as a man of pro-American views, he was very useful in relations with the Americans.”

Illarionov never shied away from speaking out against the Kremlin, and a news conference he held Dec. 21 appeared to be his parting shot.

He warned that authorities were turning the country into a “corporate” state, wresting control of energy majors and other large corporations pivotal to Russia’s economy. He cited this year’s acquisition of Russian oil major Sibneft by Gazprom, the state-owned natural gas monopoly, as one example.

Illarionov’s remarks at the news conference drew no reaction from the Kremlin. However, in announcing his decision to leave Tuesday, the 44-year-old economist said it had become clear he would no longer be allowed to speak freely.

“I considered it important to remain here at this post as long as I had the possibility to do something, including speaking out,” Illarionov said. “Until recently, no one put any restrictions on me expressing my point of view. Now the situation has changed.”

Illarionov said he had no plans to embark on a career in politics, a declaration that some liberal politicians in Moscow hope will change.