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I argue that the framework for maintaining territorial resilience is the “vertical of power,” i.e., a model of center-regional relations that works for ultimate political centralization. Within this model, the institutions of federalism and decentralization facilitate the resolution of the conundrum of limiting the size of the inner circle around Putin while expanding the coalition that supports personalistic regimes by including regional governors. By creating a multi-level power structure, federalism and decentralization protect the ruling clique from public scrutiny and potential uprisings by elites and citizens.