Russia's Putin reins in security services

By Christian Lowe

MOSCOW (Reuters) - Russian President Vladimir Putin told state security services on Thursday they should respect citizens' rights in what could be a nod to concerns the heirs to the Soviet KGB have become too powerful under his rule.

Many observers say Putin, himself a former KGB spy, has decided to contain the power of the "siloviki," people with state security and military backgrounds who since he came to power have taken key posts in government and business.

His decision to endorse Dmitry Medvedev -- who is not from the "siloviki" camp -- to succeed him when he steps down as president next year suggests Putin is trying to distance himself from the group, say some analysts.

"All the actions of the security organs should be strictly grounded in the norms and letter of the law and correspond to the aims of the dynamic, progressive development of our society," Putin was shown as saying on state-run television.

He was speaking at a gathering of his former colleagues to mark their professional holiday.

"People should live and work calmly, be sure they can implement their plans, and sure their property and business are protected," Putin said. "This is the main criterion for public faith in your work," he said.

Putin also praised the security services' contribution to fighting terrorism and defending Russia's interests and said they had an important role to play in the future.

The "siloviki" have spearheaded a Kremlin campaign to restore state control over key sectors of the economy -- especially in the oil and gas industries -- that critics say has undermined property rights and distorted the economy.