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On 26 March 1997, President Boris Yeltsin appointed Putin deputy chief of Presidential Staff, which he remained until May 1998, and chief of the Main Control Directorate of the Presidential Property Management Department (until June 1998).

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After Putin's appointment, the commission completed no such agreements, although during Shakhray's term as the Head of the Commission 46 agreements were signed.

On 25 July 1998, Yeltsin appointed Putin as Director of the Federal Security Service (FSB), the primary intelligence and security organization of the Russian Federation and the successor to the KGB. On 9 August 1999, Putin was appointed one of three First Deputy Prime Ministers, and later on that day was appointed acting Prime Minister of the Government of the Russian Federation by President Yeltsin.

According to Putin's biographer Masha Gessen, "Putin and his colleagues were reduced mainly to collecting press clippings, thus contributing to the mountains of useless information produced by the KGB." After the collapse of the Communist East German government, Putin returned to Saint Petersburg, where in June 1991, he worked with the International Affairs section of Saint Petersburg State University, reporting to Vice-Rector Yuriy Molchanov.

In May 1990, Putin was appointed as an advisor on international affairs to Mayor Sobchak.

Putin's law-and-order image and his unrelenting approach to the Second Chechen War against the Chechen Republic of Ichkeria, soon combined to raise Putin's popularity and allowed him to overtake all rivals.

While not formally associated with any party, Putin pledged his support to the newly formed Unity Party, On 31 December 1999, Yeltsin unexpectedly resigned and, according to the Constitution of Russia, Putin became Acting President of the Russian Federation.

On 27 June 1997, at the Saint Petersburg Mining Institute, guided by rector Vladimir Litvinenko, Putin defended his Candidate of Science dissertation in economics, titled "The Strategic Planning of Regional Resources Under the Formation of Market Relations".

On , Putin was appointed First Deputy Chief of Presidential Staff for regions, replacing Viktoriya Mitina; and, on 15 July, he was appointed Head of the Commission for the preparation of agreements on the delimitation of power of regions and the federal center attached to the President, replacing Sergey Shakhray.

The 2008 presidential election was won by Dmitry Medvedev, who appointed Putin Prime Minister, what some opponents considered the beginning of a period of "tandemocracy".

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