In order to streamline the so called "power vertical" President Putin initiated to unite 89 regions of Russia under auspicies of seven Federal Districts by his decree of May 13, 2000. They coincide with military districts and are the following:

1. Central District
President Representative Georgy Poltavchenko
It covers Moscow and big industrial and agricultural areas around it with huge production potential.
Capital: Moscow

2. North-West District
President Representative Victor Cherkesov
It covers St.-Petersburg and neighbour areas (including Kaliningrad) which focus upon high-tech and military facilities.
Capital: Saint Petersburg

3. South District
President Representative Victor Kazantsev
It covers vast areas between The Black Sea and The Caspian Sea including the North Caucasian Republics.
Capital: Rostov-on-Don

4. The Volga Basin District
President Representative Sergey Kirienko
A highly developed area around The Volga River, a "heart of Russia". A significant part of it is populated with Muslim nations such as tartars, bashkirs, etc.
Capital: Nizhny Novgorod

5. The Urals District
President Representative Peter Latyshev
The second big industrial area of the country. A kind of a border between European and Asian part of Russia stretched between the Arctic Ocean and Kazakhstan.
Capital: Ekaterinburg

6. The Siberian District
President Representative Leonid Drachevsky
The region which is extremely reach with all kinds of natural resources.
Capital: Novosibirsk

7. The Far East District
President Representative Constantin Pulikovsky
This is a real far away area - 10 hours to fly from Moscow. Rather underpopulated and underdeveloped. Borders with China and USA.
Capital: Khabarovsk

The purpose of these moves is to curb separatism and to set up a unified power vertical (a tool to control power) along the federal - regional - municipal axis. In the past, these three elements were separated and often acted in parallel, thus bringing ground to numerous conflicts.

A new system will allow the President to closely monitor activities of 89 governors in the field of legislation (in many cases local laws contradict Constitution and Federal Laws) and business (some regional authorities tend to forget that they are an integral part of a Federal State). Those who flagrantly violate the laws in question may be brought before court. It should be specially noted that these changes are within the present scope of authority of the President and do not violate any Federal Law or Constitution.