New risks to Russian civil society
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Add this to Putin's recent efforts to shift more power to the Kremlin: he turned state governorships into Kremlin appointments from democratic elections, and the state owns an alarming portion of the country's energy/media industries, to name but a few. Look also at the legal proceedings against former Russian energy magnate Mikhail Khodorkovsky, who many pundits suggest was targetted because of his efforts to play a political role. The majority in Parliament is a party called United Russia that essentially follows the Kremlin line, and Putin was re-elected in 2004 with around 70% of the vote. It doesn't paint a very encouraging picture of a nation purportedly on the path to democracy.
I don't want to suggest categorically that Putin is a tyrant or dictator aiming to return the country to its totalitarian Tsarist/Soviet roots - as I mentioned earlier, it's equally possible that he is merely trying to make the country work as efficiently as possible. But his efforts to date haven't been beneficial for Russian democracy, nor for foreign opinion of Russia. And the proposed new NGO rules will stifle a great deal of good work that is done in the country - and for that, there is no excuse.