In his statement, Mr. Putin said the decision was not connected with the government's performance, which he assessed as satisfactory. He said this decision was due to his desire to outline his position regarding the country's course of development after March 14.

"A timely formation of the government will prevent uncertainty in the federal executive branch, and support the working capacity of the state, it will help keep the speed of reforms, including administrative reforms," he stressed.

According to the Russian Constitution, the President should nominate a new prime minister within two weeks. Opinions differ as to who will be named Russia's new premier. Finance Minister Alexey Kudrin, Defense Minister Sergey Ivanov and Viktor Khristenko are named as the most likely candidates for the post.

Mr. Kudrin said reforms would continue in Russia after the dismissal of the Cabinet. According to him, the government will be working as normal in a few days. Acting Deputy Prime Minister Vladimir Yakovlev agrees: "Uncertainty will not last long." "This is a new level of responsibility for the policy pursued," believes acting Deputy Prime Minister Galina Karelova.

Irina Khakamada, candidate for Russia's presidential elections, said Mr. Putin's move "destabilized the situation in the country". She said a newly elected President would change the Cabinet again after the elections, according to the Constitution.

Nikolay Kharitonov, an election candidate nominated by the Communist Party, believes that the dismissal of the Cabinet is Mr. Putin's attempt to boost his popularity with voters. "Neither the actions of Vladimir Putin nor the performance of the government are trustworthy," he noted. Another election candidate, Sergey Glazyev, welcomed Mr. Putin's decision. In his opinion, Mr. Kasyanov's Cabinet was "absolutely unprofessional". At the same time, he noted that serious conclusions could only be made after a new prime minister was appointed.

The dismissal of the Cabinet seems to have taken Russia's political establishment by surprise. Although there were talks about Mr. Kasyanov's possible resignation, most politicians did not expect it to happen on the eve of the presidential elections.

Analyst say Mr. Putin's election rating will rise as a result. According to them, it will rise above 70 percent. Sergey Markelov, head of the Mark Communication consulting group, believes that the incumbent president should take measures to become the "backbone of the election campaign" and attract public attention.

Meanwhile, the political events had an impact on the stock market. Most Russian stocks dropped, although insignificantly. On average, shares went down by 0.42 percent on the Moscow Interbank Currency Exchange. Perhaps, Russian stocks will recover on Wednesday.

The dollar's exchange rate against the ruble rose RUR 0.04. But experts say the exchange rate will return to 28.48 RUR/USD on Wednesday.