New Russian government formed

Russian President Vladimir Putin today approved a new government presented by prime minister Dmitry Medvedev.

Politician Dmitry Kozak has been appointed as deputy prime minister in charge of industry and energy issues. Kozak, who is included on US and EU sanctions lists, is a newcomer to the energy sector. He most recently served as a deputy prime minister responsible for regional development, including economic development in Crimea after its 2014 annexation. Kozak supervised the Sochi winter Olympics in 2014 and served as presidential envoy to the southern federal district, which includes the restive north Caucasus, in 2004-07.

Kozak succeeds Arkady Dvorkovich, who has overseen the energy sector since 2012 but is said to have fallen out of favour with Putin. Dvorkovich was not closely involved in the day-to-day running of the oil and gas industry, but Kozak — a technocrat with a track record of overseeing difficult projects — may take a more active role. Among the issues he will oversee is the implementation of a pilot profit-based taxation system for oil producers in 2019. Dvorkovich will not serve in the new government.

Energy minister Alexander Novak retains his post, which he has held since May 2012. Insiders say Putin has been pleased with Novak and his role in facilitating co-ordinated production cuts by Opec and a Russia-led group of non-Opec producers. He is also credited with establishing positive dialogue between Russia and Opec members, notably Saudia Arabia.

As expected, natural resources minister Sergei Donskoi has lost his job and will be replaced by Dmitry Kobylkin, who since March 2010 was governor of the oil-and-gas rich Yamal-Nenets district. Kobylkin was proposed for the ministerial role by Putin's close friend and independent gas producer Novatek co-owner Gennady Timchenko, according to some observers. The natural resources ministry oversees oil and gas upstream licence distribution.

Transport minister Maxim Sokolov has lost his job. He will be replaced by Yevgeny Ditrikh, deputy minister since October 2015.

Finance minister Anton Siluanov will remain in his post and will become a deputy prime minister. Minister of industry and trade Denis Manturov, minister of economic development Maxim Oreshkin, minister of foreign affairs Sergei Lavrov and defence minister Sergei Shoigu remain in the government.