minister, giving a clear sign of how he plans to keep power after his second term ends next year. Speaking at a congress of the main pro-Kremlin force, United Russia, Putin announced he would head the party's list for December's parliamentary elections, guaranteeing him a place in the State Duma (lower house of parliament).
"As far as heading the government is concerned -- this is a quite realistic suggestion but it is still too early to think about it," Putin said.
"Two conditions must be met first - United Russia must win the election and a decent, capable and modern person with whom I work as a team should be elected as president," he added.
Initial reaction from financial markets was positive.
"Irrespective of one's view of Putin's democratic credentials, markets respect the stability and prosperity he has brought to Russia, and should react positively to the latest development," said Tim Ash, an emerging markets economist at Bearns Stearns in London.
All polls published so far give United Russia a huge lead for December's vote, with at least 50 percent of the vote. The number two force, the communists, poll around 10-20 percent.
Putin's own popularity and the Kremlin's control over politics and the media virtually guarantees whoever he anoints as his successor a resounding electoral victory in the presidential vote next March.
Putin has not yet indicated whom he will back as his successor. Speculation has centred on first deputy prime ministers Dmitry Medvedev and Sergei Ivanov, newly-appointed prime minister Viktor Zubkov and a host of lesser figures.
