Russia's government has just resigned, a report citing the Prime Minister said

<pre><pre>Russia's government has just resigned, a report citing the Prime Minister said

Russian President Vladimir Putin will meet with Prime Minister Dmitry Medvedev in Moscow on January 15, 2020.

Alexey Nikolskhy | AFP | Getty Images

According to the state news agency quoting Russian Prime Minister Dmitri Medvedev, the Russian government has resigned to make room for major new constitutional changes in the country.

According to the news agency, President Vladimir Putin thanked the Medvedev government for its work. The move was reportedly to allow Putin to make major constitutional changes a few hours earlier, which he spoke about in his annual speech.

"For my part, I would also like to thank you for everything that has been done in this phase of our joint work. I want to express my satisfaction with the results achieved," said the President at a ministerial meeting, according to TASS.

"Not everything has been done, but everything never works," said Putin.

The news comes shortly after Russian President Vladimir Putin's annual speech to the legislature. The Russian leader proposed a national vote on constitutional changes that would drive power to the prime minister and parliament and away from the presidency.

"Reach the West"

Timothy Ash, senior emerging market strategist at Bluebay Asset Management, said the changes could be seen as Putin trying to freshen things up with a new prime minister and a new government.

"They will focus more on reforms and improve government effectiveness to drive growth and improve living standards," Ash said in a research note immediately after the news.

"Many people thought Putin would do this after the presidential election, but he gave Medvedev a little more time," he added.

Ash said that Russian Economics Minister Maxim Oreshkin was a possible name for the new prime minister, but added that there would be no changes to Putin's takeover in Moscow.

"I think all of this is in response to opinion polls that reflect people's discontent with the government and their life problems, and are even waning Putin's support," Ash said. In terms of timing, Putin has waited until he believes the external risks of the sanctions have decreased. He will sell this new, fresh government as part of a fresh start and reach the West. "

The dollar rose against the ruble after the news, with the dollar gaining 0.4% against the Russian currency over the period.

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