» Politics

In Russian politics as well as business, alignment with or against Putin carries weighty repercussions. During his presidency, Putin filled the Kremlin with compatriots from his days in the Soviet KGB, giving them positions as defense minister, interior minister and head of a powerful anti-drug agency. Some analysts see Putin's influence as a stabilizing force among various factions vying for power. Russia's continued economic growth and international weight may depend on the role Putin assumes after his term as president ends.

In Dec. 2 parliamentary elections, Putin headed the pro-Kremlin United Russia party, which won more than 64 percent of the vote. Putin's backing of Dmitry Medvedev to succeed him as president practically assures Medvedev's victory in March elections. A day after Putin's endorsement, Medvedev announced his support for Putin continuing in politics as prime minister.

» Democracy

Under Putin, Russia has placed limits on its post-Soviet experiment with democracy: Putin has reversed the popular election of regional governors, curtailed independent broadcasts, imposed new restrictions on grass-roots advocacy groups, and squeezed rival parties, reducing them to obscurity. To eliminate broadcasts critical of Putin's government, the Kremlin drove the owners of state-controlled Channel One and independent NTV out of the country and seized control of both networks. The Kremlin also targets opposition from the country's oligarchs, modeled in the arrest of oil baron Mikhail Khodorkovsky, then the richest man in Russia, and the breakup of his energy company, Yukos. Khodorkovsky is serving an eight-year sentence for his conviction in 2005 on fraud, embezzlement and tax-evasion charges.

» Economy

When Putin rose to the presidency, climbing oil prices helped him stabilize the Russian economy and pay off international debt from the 1990s. Putin's popularity grew out of his economic reforms, but his critics say prosperity has come with increased corruption and curtailed freedoms. Russia's oil and gas industry is controlled by the state and remains opaque to Western investors. Europe relies heavily on Russian natural gas supplies, raising fears that Russia will use Europe's energy dependence for political purposes. Russia's state-controlled energy giant, Gazprom, has already clashed over gas prices with neighboring Ukraine and Belarus, threatening to cut supply through the countries.

» U.S. Relations

The relationship between Putin and Bush has frayed since Putin backed U.S. operations in Afghanistan after Sept. 11, 2001. The two countries have had many disputes over the Iraq war, Iran's nuclear program, Kosovo independence and Russia's involvement in neighboring countries. The Bush administration has sharply criticized Putin's rollback of political freedoms, though it eased pressure on Putin in 2007 as anti-American rhetoric grew in Russia. In July of that year, Bush invited Putin to his family's compound in Kennebunkport, Maine, in an effort to improve U.S.-Russian relations strained over Bush's plan to deploy an anti-missile system in Eastern Europe.