Russia’s new prime minister is career bureaucrat with no political ambition

The Russian government resigned Wednesday after President Vladimir Putin proposed extending his rule. The extraordinary resignation of the entire Russian government was announced by Russian Prime Minister Dmitry Medvedev on Wednesday. Medvedev also resigned. The move comes in response to proposed constitutional amendments by Russian President Vladimir Putin. The amendments would diminish the powers of the presidency while strengthening the powers of parliament and the prime minister. If Putin was

Mikhail Mishustin never had any political ambitions as a career bureaucrat.

His name didn't even come up as a top candidate to become Russia's next prime minister.

Nevertheless, he was appointed for the post Wednesday, hours after the Russian government resigned to allow President Vladimir Putin to stay in power beyond the end of his current term.

Who is Mikhail Mishustin? 

Mishustin, 53, is the longtime chief of Russia's tax service.

He has a degree in information technology and has been a state official for the last two decades. His career kicked off in 1998, when he became deputy head of the State Tax Service.

As a career bureaucrat who has been in charge of Russia's taxes for the last 10 years, Mishustin has always kept a low profile and stayed away from politics. He doesn't belong to a political party and in rare interviews prefers to talk about innovations in tax administration.

Former Russian Tax Service chief Mikhail Mishustin was installed as the country's new Prime Minister this week.

Credit: Mikhail Klimentyev

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Credit: Mikhail Klimentyev

In 2010, after a two-year stint at a private investment firm, Mishustin returned to the tax service, this time as its chief and handpicked by Putin, then himself a prime minister. Having earned about $2.6 million in 2009, Mishustin was the third-richest state official in Russia at the time.

Through the years, Mishustin “has created a cutting-edge tax service from the ground up, using modern technologies and (means of) digital economy,” said Vyacheslav Volodin, the speaker of Russia's lower house of parliament.

Under Mishustin, the tax service launched two vast data centers that collected invoices from businesses and information from retail cash registers, ensuring better control of cash flows. Mishustin also introduced a variety of online services that made paying taxes easier in an effort to raise tax collection rates.

What happened 

Putin put Mishustin's candidacy forward Wednesday night, several hours after long-serving prime minister Dmitry Medvedev resigned along with the whole Cabinet. Just before that, Putin proposed sweeping changes to the constitution that could keep him in power well past the end of his term in 2024.

Confirmation of his appointment by lawmakers in the lower house of parliament on Thursday was all but a formality after Mishustin earlier won the unanimous backing of the ruling party.

What it means 

The sudden resignation of Russia's full governing body sent shockwaves through Russia's political elite and left them pondering about future Cabinet appointments.

Mishustin has been hailed for modernizing Russia's rigid tax administration system and boosting tax collection rates. Government officials and businessmen describe him as a professional and effective manager who understands the economy well, which makes him a good fit for the Cabinet during a time when Russia's economy is weakened.

“The main tasks for the new prime minister will come from the necessity to modernize the economy," Abbas Gallyamov, a former Kremlin speech writer turned independent political analyst, wrote in a Facebook post. "Mishustin has a reputation of a person who has this experience.”

What to expect 

Mishustin could begin forming the new government this week.

His lack of political ambition or any political experience indicates that he is likely to dutifully carry out the Kremlin's wishes as the head of the Cabinet — which some commentators point out is especially important in the “transition period” of constitutional reforms proposed by Putin.

Russian President Vladimir Putin, left, listens to Tax Service chief Mikhail Mishustin Wednesday during their meeting in the Kremlin in Moscow.

Credit: Alexei Nikolsky

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Credit: Alexei Nikolsky

Mishustin's track record inspired hopes that as prime minister he would be able to shake up the country's stagnating economy — something Russians have been increasingly frustrated about in recent years.

What he said 

Mishustin vowed to focus on social issues and improve living standards.

“The president wants the Cabinet to spearhead economic growth and help create new jobs," he said. "Raising real incomes is a priority for the government."

Also notable 

While he’s not widely known outside of the tax authority, Mishustin developed a rapport with Putin as a member of the president’s Night Hockey League. A longtime hockey enthusiast, Mishustin sits on the supervisory board of Moscow’s CSKA club together with Igor Sechin, a Putin confidant who runs Russia’s state-run oil giant Rosneft PJSC.

The incoming prime minister is also an amateur musician and has penned pop songs as a hobby, including for singer Grigory Lepsveridze, who was sanctioned by the U.S. in 2013 for alleged ties to organized crime.

What’s next 

Putin said the constitutional changes need to be approved by the entire nation, but it wasn't immediately clear how such a popular vote would be organized.

Upper house speaker Valentina Matviyenko said lawmakers will work on amending the constitution and complete it in the spring.

Putin is also keeping Medvedev in his close circle, appointing him to the newly created post of deputy head of the presidential Security Council.

— Reporting by Bloomberg News was used to supplement this report. Compiled by ArLuther Lee, The Atlanta Journal-Constitution.