Russia will soon have another liberal ex-president. Twenty years ago this December, Mikhail Gorbachev stood in the Kremlin as the Soviet flag was lowered and replaced with the Russian tricolor. He sat down in the back seat of his limousine and was driven out the Borovitskaya gate, no longer president of the Soviet Union but instead a private citizen of the newly independent Russian Federation.

In March, Dmitry Medvedev, who has been president of Russia since 2008, will have a similar experience. He will surrender his office to his prime minister, predecessor and political patron Vladimir Putin, who after months of speculation has at last confirmed his intention to run for president on the ruling United Russia party's ticket. When Medvedev leaves office in March, he like Gorbachev will face the question of what role to play in his country's future. What becomes of a liberal ex-president in a decidedly illiberal state like Russia?

One thing is certain—Medvedev's welfare and personal security are assured as long as Putin remains in control. Medvedev has long been a close ally of Putin, and the latter is thought to have chosen him to become president in 2008 because of his unswerving loyalty. Thus, unlike former leaders in some other authoritarian states, Medvedev need not seek asylum abroad.

In fact, Medvedev has already telegraphed one likely possibility, namely that Putin's faith in him remains so great that he will continue to serve in the government, perhaps as prime minister. Putin may also define a new position for his protégé within the Russian government—for example, as chief justice of the constitutional court or in some high-profile international position, such as an ambassador at large for global security.

In any event, Medvedev's role in a future Putin-dominated government is likely to remain functionally similar to what it is today: evangelist in chief for Russia's modernization efforts, including the Skolkovo "city of innovation." Medvedev's voice could also continue to serve Putin's need for a popular lightning rod against corruption or in foreign policy as a spokesman and manager of the U.S.-Russia "reset."

If Medvedev is not given a formal appointment by his successor, he has another set of options altogether.

He can choose to follow the precedent set by Gorbachev, who also left office at a young age and well known for his liberal views—by participating selectively in political debates, possibly creating and leading a new political party or perhaps standing for office again in the next election, as Gorbachev did in 1996. Putin's predecessor and patron, Boris Yeltsin, was already in poor health when he left office in 1999, but even he spoke out occasionally on political and foreign-policy matters until his death in 2007.

Even without holding a formal office, Medvedev's voice will be influential. He could reach out to current and former political and business leaders and raise funds for favored causes. He could choose a signature initiative—most likely modernization—and create a nongovernmental organization to advance it, on the model of Gorbachev's Green Cross International or the Clinton Global Initiative. Other worthwhile causes might include combating corruption, environmental degradation, and drug and alcohol abuse, all of which cast a shadow over Russia's future.

Because he owes so much to Putin personally, Medvedev is unlikely to speak out as frankly or critically to Russian audiences about the Putin system as either Gorbachev or Yeltsin did. But he may have the opportunity to rise to a greater and more revered status internationally than he enjoyed as president if he chooses the path of ex-leaders like Vaclav Havel or Jimmy Carter, concerning himself with democratic development and human rights around the world. Even though he did not deliver perfect democracy and rule of law in his own country, the international community will surely welcome a prominent Russian voice to advocate these values.

Many outgoing presidents become obsessed with "legacy" to the point of wasting resources and political capital pursuing unrealistic or impossible goals during their last months in office. Thus far, Medvedev seems to have avoided chasing political rainbows. If anything he has refined his focus on concrete initiatives like Skolkovo and new campaigns against alcohol and tobacco use.

Perhaps Medvedev is keeping his head down, hoping that if he does not appear to threaten the system's stability, Putin will agree to keep him at the center of power, or perhaps even restore him to the presidency in 2018. Then again, maybe Medvedev has already defined his legacy and post-presidential role: offering Russians a bright vision of their country's future but accepting that the road to get there will be long and winding and that he may not himself be in the driver's seat.

Matthew Rojansky is the deputy director of the Russia and Eurasia program at the Carnegie Endowment for International Peace.

Russia watchers in the West cannot be surprised that Vladimir Putin is on his way back to the Russian presidency. Dmitri Medvedev was always his protégé, and there was no doubt that major decisions could not be made without his approval. This includes signing the New START arms control treaty, cooperating with NATO in Afghanistan and supporting U.N. sanctions on Iran — all of which should provide reassurance that Putin’s return won’t undo the most important accomplishments of the U.S.-Russia “reset.”

Yet the relationship with the West will inevitably change. For one thing, Putin can have nothing like the rapport his protégé developed with President Obama, which was built upon the two leaders’ shared backgrounds as lawyers, their easy adoption of new technologies, and their fundamentally modern worldviews.

The Bilateral Presidential Commission which Obama and Medvedev created and charged with advancing U.S.-Russia cooperation on everything from counterterrorism to health care may suffer. The relationship as a whole is not adequately institutionalized, and depends on the personal attention of Russian officials who will likely avoid taking action without clear direction from Putin, or who may be removed altogether during the transition.

Putin’s return to the presidency will also provide fodder for Western critics bent on portraying Obama and the reset as a failure, or dismissing Putin’s Russia as merely a retread of the Soviet Union.

These critics are wrong — today’s Russia bears little resemblance to what Ronald Reagan dubbed an “evil empire” — but Putin has been far more tolerant of Soviet nostalgia than his junior partner, and his next term will surely bring a new litany of quotations about Soviet accomplishments and Russia’s glorious destiny that will turn stomachs in the West.

Although he has spent his entire career within the apparatus of state power, including two decades in the state security services, Putin is at heart a C.E.O., with a businessman’s appreciation for the bottom line. Western companies already doing business in Russia can expect continuity in their dealings with the state, and it will remain in Russia’s interest to open doors to new business with Europe and the United States. The next key milestone for expanding commercial ties will be Russia’s planned accession to the World Trade Organization, which could come as soon as December.

At home, Putin faces a looming budget crisis. As the population ages and oil and gas output plateaus the government will be unable to continue paying pensions, meeting the growing demand for medical care, or investing in dilapidated infrastructure throughout the country’s increasingly depopulated regions.

This means that while Putin will seek to preserve Russia’s current economic model, which is based on resource extraction and export, he will be forced to assimilate many of his protégé’s ideas for modernizing Russia’s research and manufacturing sectors. Medvedev’s signature initiative, the Skolkovo “city of innovation,” will likely receive continuing support from the Kremlin, although it will have little long-term impact without a thorough nationwide crackdown on corruption and red tape.

Putin’s restored power will be strongly felt in Russia’s immediate neighborhood, which he has called Moscow’s “sphere of privileged interests.” Even though Kiev has renewed Russia’s lease on the Black Sea Fleet’s Sevastopol base through 2042 and reversed nearly all of the previous government’s anti-Russian language and culture policies, Ukraine is unlikely to win a reprieve from high Russian gas prices. Putin will also continue to press Ukraine to join the Russia-dominated customs union in which Kazakhstan and Belarus already participate. He may also take advantage of Belarus’s deepening economic isolation and unrest to oust President Aleksandr Lukashenko in favor of a more reliable Kremlin ally.

Putin and Medvedev have been equally uncompromising toward Georgia. Both are openly contemptuous of Georgian President Mikheil Saakashvili, and it is unlikely that any progress on relations can occur until Georgia’s presidential transition in 2013.

Putin has good reason to continue backing NATO operations in Afghanistan to help stem the flow of drugs, weapons and Islamism into Tajikistan, Uzbekistan and Russia itself. Moreover, as China extends its economic hegemony into Central Asia, he may find America to be a welcome ally.

Putin appreciates the advantages of pragmatic partnerships and will seek to preserve the influence of traditional groupings like the U.N. Security Council and the G-8 while at the same time promoting alternatives like the Shanghai Cooperation Organization and the Brics.

The succession from Putin to Medvedev and back again was decided behind closed doors, and the formal transition of power is likely to take place with similar discipline. This should offer the West and the wider world some reassurance. Putin’s return to the presidency is far from the democratic ideal, but it is not the end of “reset.” Many ordinary Russians support him because he represents stability and continuity of the status quo and, for now, that is mostly good for Russia’s relations with the West.