Dmitri A. Medvedev, Kremlin lawyer and party official who has never held an elected office was sworn in Wednesday in the Kremlin’s Andreyevsky Hall, bringing an end to Vladimir Putin’s eight year presidency.

During his inaugural speech he pledged to bolster the country’s economic development and address several key civil rights issues. These comments may signal a stark divergence between the presidencies of Putin and Medvedev.

“The ceremony, mixing czarist splendor with renewed Russian confidence, marked the passing of formal power from departing President Vladimir V. Putin to his young and untested protégé,” according to New York Times’ C.J. Chivers.

The events were also a tribute to Russia’s second President since the fall of the Soviet Union, and was regarded as widely popular in spite of his K.G.B. career. Although, he took Russia’s economy to new heights mixing capitalist aspects with a dominate protectionist policy, he rolled back civil liberties while presiding over a corrupt government.

Russia’s March elections gave Putin and Medvedev a resounding mandate from the people to continue advocating their current policies. Many opponents of Putin’s regime in Russia and abroad cite recent police measures and the manner in which the election was held, as a sign that Russia may be retreating from Democracy.

Within two hours of Medvedev’s inauguration he had already appointed ex-President Vladimir Putin as Russia’s next Prime Minister.

Further stately shows of Russian greatness, in commemoration of Putin’s legacy and anticipation for Medvedev’s presidency, the military is scheduled to display a triumphant parade through Red Square, the likes of which have not been seen since the Berlin Wall fell.

Political Divergence

However, during several points in his speech, Medvedev stated the need for ”the development of civil and economic freedom,” while calling it a high priority. ”Human rights and freedoms … are deemed of the highest value for our society and they determine the meaning and content of all state activity.”

”I’m going to pay special attention to the fundamental role of the law. We must achieve a true respect in law, overcome the legal nihilism which is hampering modern development,” he continued.

Although, it is unclear the actual power dynamic of the two powerful leaders, it sends a positive sign to the other Western Nations that Russia is going to take a role as nation who is deeply concerned with the civil liberties of its citizens.

Russian newspapers are claiming that Putin has planned to increase the number of deputy prime minsters to at least twice it’s current size, further signaling that he intends to still remain a dominant political figure in Russia.

Economic Concerns

Amidst great celebration in Russia several economist are quietly worrying over a possible downturn in the Russian economy, Putin’s key successful issue.

Russia’s recent economic success is heavily dependent on it’s natural resources, mainly oil. When Putin took office eight years ago, oil was at a relatively low price of $20 to $30 dollars per barrel, now it’s hovering at a $123 dollars per barrel with no ceiling in sight. However, inflation is in store for Russia’s future.

With the rise of any economy the inevitable problem of synchronizing the other sectors in the economy is always an issue. Interest rates have already surpassed 13 percent, spreading worry to the generation of workers who went through the inflation-heavy times of the 90′s.

Undisclosed sources within the Kremlin have also been quietly discussing raising interest rates to sure-up the Rubble as a sound currency and stave off inflation. Paul Volker, Fed Chairmen during the 80′s under the Reagan administration, adopted a similar policy that set the economy back on the track.

Long-term solutions are more illusive, the need to update infrastructure, which largely dates back to Soviet times, is of the utmost priority. Especially when coupled with the worldwide decline in oil production, and the looming possibility that alternative fuel sources might supplant oil as the dominate energy source throughout the world.

Foreign Policy

Russia has recently showed staunch opposition to Europe and America’s recognition of Kosovo’s independence, as well as the recent NATO expansion eastward into former Soviet satellite nations.

“There’s no sign yet that Medvedev’s angle on the eastward expansion of NATO and the EU is different from Putin. I am sure he is firmly opposed,” said Charles Grant, an analyst at the Center for European Reform, a London think tank.

Tensions between Russia and it’s former Soviet republics of Georgia and Ukraine were not a key issue at the inauguration, but will definitely play a strong role in the upcoming months and years.

A Georgian minister said Tuesday that Russia’s backing of separatist movements in Georgia is tantamount to provoking a “war.”

“We literally have to avert war, because we see what is happening on the ground and we have all indications that Russia is trying to provoke Georgia to start war,” Temuri Yakobashvili, Georgia’s state minister of reintegration, told a news conference in Brussels.