Putin signals he intends to stay in charge of Russia

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It was not always meant to be this way. Putin initially said he intended to hand the full powers of the presidency to his chosen successor and step aside. But as the time drew near, he clearly changed his mind as infighting between rival Kremlin factions spilled into the open, threatening to undermine political stability.

Veterans of the secret services have come to dominate the government under Putin, a 55-year-old former KGB officer. These powerful figures, known as the "siloviki," have been given leading roles in major businesses including oil companies and aircraft and automobile manufacturers that Putin has brought back under state control.

They see Putin as the key to preserving their positions and continued access to financial flows. Some of them opposed Putin's choice of Dmitry Medvedev, a 42-year-old lawyer, who was inaugurated as president on Wednesday.

Putin may have decided to stay around to keep the peace and protect his protege until he consolidates his position.

Immensely popular and at the height of his powers, Putin appears to want Russians to see him as still in charge and to anticipate his return to the presidency in 2012, which he has not ruled out.

In a fervent 45-minute speech Thursday before parliament, Putin laid out huge ambitions for the economy and boasted that under his leadership Russia "had not just changed but become a different country." He was approved by a vote of 392-56, with only the Communists opposing him.

Medvedev, by contrast, was a lackluster supporting player, introducing Putin in a bland five-minute address that underlined Putin's potency.

Putin left the Kremlin on Wednesday, but just moved down the road to the building known as the White House, the government headquarters near the U.S. Embassy. In anticipation of his arrival, the prime minister's fifth-floor office overlooking the Moscow River has been renovated and its staff greatly expanded. Many of those who served him as president have made the switch, and others are expected to follow.

Putin will continue to travel to work in a motorcade from the same wooded estate in one of Moscow's most exclusive suburban neighborhoods where he lived as president and which is now his to keep.

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