Russian President Vladimir Putin promoted a close ally widely tipped as a possible presidential candidate to the rank of first deputy prime minister on Thursday, from defence minister, according to Reuters. Sergei Ivanov, 54, a longtime KGB veteran, is considered the more hawkish of the two leading candidates to succeed Putin in presidential elections in March 2008. More than 20 years of service in the KGB and its successor organisations have given Ivanov close contacts in Russia's military and intelligence community. Speculation about the presidential succession has been intense, with Putin refusing to give any hint of his intentions. Putin's huge political influence and unchallenged power means his electoral preference is likely to be decisive. Following the promotion from the lower rank of deputy premier Ivanov will have equal status to Dmitry Medvedev, the other presidential front-runner, who is generally viewed as representing the more liberal factions within the Kremlin. "We agreed with the prime minister to expand the sphere of responsibilities of Sergei Ivanov ... he will be coordinating part of the civilian sector of the economy," Putin said at a weekly cabinet meeting. "Sergei Borisovich coped with all the tasks that were put before him at the defence ministry and dealt with them successfully," Putin added in televised remarks, using Ivanov's patronymic middle name. Putin said the new defence minister would be Anatoly Serdyukov, 45, the little-known former head of the Federal Tax Service.