Although Putin's return to the presidency will probably ensure an element of continuity in the system when looked through the prism of managed democracy, bureaucratic capitalism, and widespread corruption, political and economic reforms are the need of the hour in Russia.

With Putin expected to assume the Presidency in March 2012, one can expect a more assertive Russia in its dealings with the West though there may not be any major changes in current policies.

Russia has signed a landmark weapons deal with France for the purchase of two Mistral class amphibious assault ships, which will strengthen the Russian Navy’s capabilities for power projection.

With Turkey’s accession negotiations for EU membership going nowhere, Ankara is pursuing other diplomatic options.

With Russia hosting three major world sporting events in the next eight years, it is hoped that there would be a massive infusion of capital to boost the country’s infrastructure and upgrade the transport and tourism sectors.

The Skolkova initiative is part of Russia’s attempt to develop a robust national innovation system and a knowledge based economy.