Watch: Russian PM announces his resignation after Putin proposes constitutional shake-up

President Vladimir Putin engineered a shakeup of Russia's leadership on Wednesday, proposing changes to the constitution that could keep him in power well past the end of his term in 2024.

Prime Minister Dmitry Medvedev resigned his post soon after but Putin kept his longtime ally in the Kremlin's leadership structure, appointing him to the newly created post of deputy head of the presidential Security Council.

The shakeup sent shock waves through Russia's political elites who were left pondering what Putin's intentions were and speculating about future Cabinet appointments.