Russia's Putin removes chief prosecutor

MOSCOW, June 2 (Reuters) Russian President Vladimir Putin removed his hawkish chief prosecutor today in what analysts said was a tactical victory for moderates over hardliners in a Kremlin power struggle.

Prosecutor-General Vladimir Ustinov, who played a key role in prosecuting Mikhail Khodorkovsky, billionaire founder of the oil firm, was removed from his post by the upper house of parliament acting on a request from Putin.

Officials said Ustinov -- linked to the so-called ''siloviki'' hardliners -- had himself asked to be relieved of his duties but no detailed explanation was offered.

''This (change) is connected to the president's decision to carry out some personnel changes,'' ITAR-TASS news agency quoted an unnamed Kremlin source as saying.

Some analysts linked the move to a turf war between the ''siloviki'' -- a group of officials with security or military backgrounds that favour tough central rule -- and a more liberal faction led by First Deputy Prime Minister Dmitry Medvedev.

''(Ustinov's removal) is the latest skirmish in the battle inside Putin's entourage,'' said analyst Stanislav Belkovsky. ''In this case Medvedev has delivered a serious blow (to the rival faction).'' The rivalry between the factions has intensified because Putin, limited by law to two terms, has to step down in 2008. The factions are competing to have their candidate anointed as Putin's heir apparent, say the analysts.

The burly chief prosecutor became a household name in Russia when his office oversaw Khodorkovsky's prosecution on fraud and tax evasion charges.

Once Russia's richest man, the tycoon is serving eight years in a Siberian prison.

The campaign against Khordokovsky and his company alarmed markets and prompted concerns that the Kremlin was using the judicial system to bring down its opponents.

ANTI-GRAFT CAMPAIGN Lawmakers in the Federation Council, the upper house of parliament voted by 142 to none to remove Ustinov from his post, though it was clear even some of Putin's closest supporters were caught off balance by the news.

''There must have been good reasons to do this,'' Defence Minister Sergei Ivanov, a close confidant, was quoted as saying by news agencies as saying.

The vote was added to the chamber's agenda at the last minute after lawmakers received a letter from Putin asking them to remove the chief prosecutor.

Ustinov himself also sent a letter saying he wanted to step down, said Federation Council speaker Sergei Mironov.

Other analysts linked Ustinov's departure to a drive by Putin to clamp down on corruption.

Putin told his subordinates this month they had to redouble their efforts to stamp out graft: a drive in which the prosecutor's office is likely to play a central role.

Russian news agencies floated two names as possible successors to Ustinov -- Dmitry Kozak and Alexander Konovalov.

A tough-talking former Kremlin chief of staff close to Putin, Kozak is in charge of bringing order to the violent North Caucasus region. Konovalov, a former prosecutor, is currently Putin's envoy to Volga region.

Speaking in his annual address to the nation on May 10, Putin said corruption remained one of the biggest obstacles to Russia's development. He said tackling it was a national priority.

Two days later senior officials from the Interior Ministry, the state security service and Ustinov's office were sacked.

Reuters DKS VV1535