Putin Boots A Reformer

By Peter Gumbel, Yuri Zarakhovich

Vladimir Putin was already going to have a hard time making the case that Russia is worthy of the leadership of the G-8, which it will take for the first time this year. But no one will be giving him the benefit of the doubt after the dramatic resignation of his economic adviser, the outspoken liberal reformer Andrei Illarionov, 44. The economist, a Kremlin maverick, fought to curb state interference in the economy, particularly in the energy sector. But with Moscow tightening its grip on oil and natural gas, Illarionov was recently stripped of a key post with the G-8 and had his staff cut. Illarionov implies he had been under pressure to keep quiet. "I chose to resign instead," he tells TIME. His exit came as Moscow sparred with Ukraine over natural-gas prices. Illarionov told TIME last Saturday that he simply could not, as asked, take the role of a "propagandist" explaining Russia's position as a reflection of its claimed liberal economic policies. To Putin, what matters is that Russia's economy is growing at a robust 6%. But without Illarionov at Putin's side, Russia's commitment to free markets will look less encouraging to the West.