It remains to be seen if Medvedev, Putin's handpicked successor, will implement real policy changes. Most investors are rooting for stabilityThere was never much intrigue about the result of Russia's Mar. 2 presidential election. As widely predicted, Dmitry Medvedev, the man handpicked by outgoing President Vladimir Putin to become his successor, won by a landslide. Some 70.2% of Russian voters cast their ballots for the Kremlin's man, well ahead of the nearest contender, veteran Communist leader Gennady Zyuganov, who drew 18% of the vote.
As usual with Russian elections these days, the way the campaign was conducted has been criticized by international monitors. Observers from the Council of Europe noted widespread media bias and a lack of genuine competition, but also stated that Medvedev had "a solid mandate." There's certainly little doubt most Russians welcome the political continuity that Medvedev represents.
Business and investors, too, will be relieved that Russia's political transition has occurred in a stable manner, with every sign that present economic policies will be continued. Last year, Russia's economy grew by 8%, one of the best results on record, which explains why business will be satisfied if there are no abrupt political changes. "Investors view this as a very favorable outcome," says Chris Weafer, chief strategist at Russian investment bank Uralsib (USBN.RTS). "It combines the stability associated with Putin with the more liberal agenda that comes with Medvedev."
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