"The union wanted to use the expiration of the evaluation system to keep ineffective teachers in classrooms, not to mention hold the city hostage in future negotiations, " she said.

WSJ: Deal May Ease Evaluation Plan

"The union wanted to use the expiration of the evaluation system to keep ineffective teaches in classrooms, not to mention hold the city hostage in future negotiations, " Bloomberg spokeswoman Lauren Passalacqua said after the announcement.

WSJ: Deal ensures NY teacher-evaluations don't expire

But Mr Medvedev is unlikely to stop the hostage-taking, corporate raids by state agencies, rent-seeking and corruption that have become part of a system.

ECONOMIST: Russian modernisation