MOSCOW, Dec 10: President Vladimir Putin endorsed technocrat ally Dmitry Medvedev as his successor on Monday in a surprise announcement that could clear the way for the Kremlin leader to retain power behind the throne.

Putin, whose support is seen as virtually guaranteeing victory in a March 2, 2008, presidential election, threw his weight behind Medvedev, a longtime ally who chairs gas behemoth Gazprom and serves as first deputy prime minister.

The choice surprised observers because Medvedev is a relative liberal in the Kremlin and unlike most of Putin’s allies is not known to have served in the Soviet KGB. Although touted in the media as a possible successor he has never suggested he wanted the job.

“I have known him for more than 17 years, I have worked with him closely all these years, and I completely and fully support this candidacy,” Putin said on state-run Channel One after four political parties nominated Medvedev.

The nomination followed months of intrigue over who would succeed 55-year-old Putin when he steps down next year after two consecutive terms at the head of the nuclear power and leading global energy exporter.

“On March 2, 2008, Medvedev will become the third president of Russia,”news site www.gazeta.ru wrote.

But analysts said the choice of the baby-faced Medvedev, 42, would help Putin keep his options open in retaining authority.

Options considered most likely for Putin include becoming prime minister, heading the Kremlin Security Council, or even taking over as chief of a new state combining Russia and ex-Soviet republic Belarus — which Putin is due to visit Thursday and Friday.

Heading a programme of government social projects, Medvedev is outside the circle of hawkish officials dominating the Kremlin and he owes his entire career to Putin.

“Medvedev is incapable of forming his own clan and he will always need Putin,” Yury Korgunyuk, at the Indem Foundation, said.

Vladimir Pribylovsky, at the Panorama think tank, said Medvedev was loyal and “guarantees Putin the status quo.” The Moscow stock market’s RTS index leapt immediately by 1.62 per cent to 2,323.37 points, while shares in state-owned Gazprom, the world’s biggest gas company, shot up three percent.

Alexei Sidorenko, at the Moscow Carnegie Centre, said that Putin could still allow a rival candidate to emerge. “It’s not the last surprise of this presidential campaign.” However, Kremlin spokesman Dmitry Peskov said such a development was “unlikely. (Putin) quite openly gave his support to one candidate.” Boris Nemtsov, one of the leaders of Russia’s enfeebled liberal opposition, attacked Medvedev’s nomination as “humiliating for the people, when the authorities determine who needs to be supported,” Interfax reported.

Most observers had been expecting Putin to give his choice next Monday when United Russia holds a congress.

Putin, whose United Russia party swept to a controversial landslide in elections last weekend, took pains to emphasise the support from Medvedev from four parties — United Russia, A Just Russia, the Agrarians and Civic Force.

“This gives a chance to create the conditions for carrying out the course that has brought results all these last eight years,” Putin said. A lawyer by training, Medvedev was hired by Putin in the early 1990s to work on his staff at the Saint Petersburg local government.

After serving as Putin’s campaign manager for his successful 2000 election run, Medvedev was appointed presidential chief of staff in the Kremlin and later chairman of Gazprom, the jewel in Russia’s energy crown.—AFP