President Boris Yeltsin elevated Vladimir Putin—then a little-known former security official—to lead the government. The move signaled that Yeltsin was searching for a successor during a period of political instability and frequent prime-minister changes. Putin’s new role gave him national visibility and control over key state institutions.
Fighting escalated after militants launched attacks in Dagestan in August 1999, followed by a wave of apartment bombings in September that killed hundreds. Russian leaders blamed Chechen-linked militants and launched a major military campaign that became known as the Second Chechen War. Putin’s hard-line response helped build his public support as a “law-and-order” leader.
On December 31, 1999, Boris Yeltsin resigned and transferred presidential powers to Prime Minister Vladimir Putin. The constitution required a new presidential election within months, giving Putin the advantage of incumbency. Yeltsin also signed a decree granting himself legal protections, a detail that shaped public debate about the handover.
Russia held an early presidential election on March 26, 2000, and Putin won in the first round with about 53% of the vote. Election observers and analysts reported unequal media access and administrative advantages for the acting president, issues that would become recurring concerns in later Russian elections. The result gave Putin a full constitutional mandate to govern.
On May 7, 2000, Putin took the presidential oath in the Kremlin, marking the formal start of his first term. He presented goals of restoring state capacity and national stability after the turbulent 1990s. The inauguration also signaled that a new political team would consolidate authority in Moscow.
Putin signed a decree dividing Russia into seven federal districts, each overseen by a presidential envoy. The reform aimed to improve enforcement of federal laws and reduce the autonomy that many regions had gained in the 1990s. It became a key early step in building a more centralized “power vertical” (a chain of authority from the Kremlin downward).
On August 12, 2000, the nuclear submarine Kursk sank in the Barents Sea during naval exercises, killing all 118 crew members. The disaster triggered public anger over delays, secrecy, and the state’s crisis response. It became an early moment when many Russians judged Putin’s government on competence and transparency, not just promises of stability.
Putin created the State Council, an advisory body made up of regional leaders, after changing how regions were represented in national politics. The structure offered governors a forum to consult with the president while keeping key decision-making in the Kremlin. This helped Moscow reshape center–region relations without fully excluding regional heads from the political system.
In April 2001, the state-dominated gas company Gazprom took control of NTV, which had been Russia’s most prominent independent national television channel. The takeover followed months of pressure and legal and financial conflict involving the channel’s owners. It marked a major turning point in the media environment, narrowing space for televised criticism of the Kremlin.
In October 2002, Chechen militants seized a Moscow theater, taking hundreds of hostages. Russian forces ended the siege using an unknown gas, and many hostages died. The crisis reinforced Putin’s emphasis on counterterrorism and strong state power, while also raising questions about accountability and civilian protection in security operations.
In October 2003, authorities arrested Mikhail Khodorkovsky, the head of oil company Yukos and one of Russia’s richest businessmen. The case became a symbol of the new rules between the Kremlin and big business: political independence by oligarchs would carry severe risks. It also supported a wider shift toward a larger state role in strategic parts of the economy.
On March 14, 2004, Putin won re-election by a wide margin, securing a second term. By this point, the state had strengthened control over regions, brought major national television under friendly ownership, and signaled limits on oligarch political power. The vote marked the close of Putin’s initial rise and the start of a more entrenched governing model built around centralized authority.
Rise of Vladimir Putin and Early Presidency (1999–2004)