Intelligence

DATE=3/11/03

TYPE=CORRESPONDENT REPORT

TITLE=PUTIN / SECURITY (L-ONLY)

NUMBER=2-300558

BYLINE=LISA MCADAMS

DATELINE= MOSCOW

CONTENT=

INTRO: President Vladimir Putin has reorganized Russia's security agencies, giving greater authority to the K-G-B's main successor, the F-S-B (Federal Security Service). Mr. Putin previously worked for the K-B-G and headed the F-S-B. V-O-A's Lisa McAdams in Moscow reports the shake-up also calls for abolishing Russia's main communications surveillance agency, along with the federal tax police.

TEXT: The Russian president announced the changes in televised remarks to his cabinet Tuesday. Chief among the measures is the strengthening of the F-S-B's powers, which will now include overseeing the country's border guards and government communications.

It is the second time during his presidency that Mr. Putin has announced major changes in the Russian security structure. He says the action is well-considered and enjoys broad support.

President Putin says the changes were necessary, in part, to address what he said were inadequacies in fighting the war on drugs.

/// PUTIN ACT IN RUSSIAN ESTABLISH, THEN FADE ///

President Putin said Russia could not claim that it's government agencies have been successful in the war on drugs so far.

He also said he hopes the changes will bolster the fight against terrorism.

/// OPT /// President Putin also named the border guards' former director as Russia's new representative to NATO. And he appointed the former tax police chief to be Russia's new representative to the European Union. /// END OPT ///

The Deputy Director of the Moscow-based research organization the U-S-A-Canada Institute, Victor Kremenyuk, says he believes President Putin took the action for one reason only -- to consolidate his hold on power.

/// KREMENYUK ACT ///

It is an attempt to meet two challenges. One, is the failure of the civilian sector to stir up (or deliver) economic and social developments and the expectation that this failure will be followed by some rising protests all around the country. So, I think that in the wake of this the president wants to strengthen his security power.

/// END ACT ///

Mr. Kremenyuk adds that the moves definitely boost the F-S-B's hold on power.

/// OPT /// Asked how he thought Tuesday's changes would be received, Mr. Kremenyuk says that for many people in Russia, it will be business as usual. But he says others will likely challenge the changes.

/// OPT /// KREMENYUK ACT TWO ///

I think there will be people who may try to protest against that and will of course draw the parallels with the Soviet period. So, I don't think Russia will be indifferent to that.

/// END OPT /// /// END ACT ///

Mr. Kremenyuk says most Russians will also note that the new powers granted the F-S-B come from President Putin, a 16-year K-G-B veteran, who headed the F-S-B before becoming Russia's prime minister and then president. (Signed)

NEB/LAM/AWP/KBK/RH