Kasyanov, as prime minister. The first major challenge to Putin's popularity came in August 2000, when he was criticized for the alleged mishandling of the Kursk submarine disaster. That criticism was largely because it took several days for Putin to return from vacation, and several more before he visited the scene. Between 2000 and 2004, Putin set about the reconstruction of the impoverished condition of the country, apparently winning a power-struggle with the Russian oligarchs, reaching a 'grand bargain' with them. This bargain allowed the oligarchs to maintain most of their powers, in exchange for their explicit support for—and alignment with—Putin's government. The Moscow theater hostage crisis occurred in October 2002. Many in the Russian press and in the international media warned that the deaths of 130 hostages in the special forces' rescue operation during the crisis would severely damage President Putin's popularity. However, shortly after the siege had ended, the Russian president enjoyed record public approval ratings—83% of Russians declared themselves satisfied with Putin and his handling of the siege. In 2003, a referendum was held in Chechnya, adopting a new constitution which declares that the Republic of Chechnya is a part of Russia; on the other hand, the region did acquire autonomy. Chechnya has been gradually stabilized with the establishment of the Parliamentary elections and a Regional Government. Throughout the Second Chechen War, Russia severely disabled the Chechen rebel movement; however, sporadic attacks by rebels continued to occur throughout the northern Caucasus. 2004–2008: Second presidential term On 14 March 2004, Putin was elected to the presidency for a second term, receiving 71% of the vote. The Beslan school hostage crisis took place on 1–3 September 2004; more than 330 people died, including 186 children. The near 10-year period prior to the rise of Putin after the dissolution of Soviet rule was a time of upheaval in Russia. In a 2005 Kremlin speech, Putin characterized the collapse of the Soviet Union as the "greatest geopolitical catastrophe of the Twentieth Century." Putin elaborated, "Moreover, the epidemic of disintegration infected Russia itself." The country's cradle-to-grave social safety net was gone and life expectancy declined in the period preceding Putin's rule. In 2005, the National Priority Projects were launched to improve Russia's health care, education, housing, and agriculture. The continued criminal prosecution of the wealthiest man in Russia at the time, president of Yukos oil and gas company Mikhail Khodorkovsky, for fraud