In an oblique way, Russia stands to benefit from an escalated crisis in the Middle East. As long as the U.S.-Iranian standoff continues, Russia's military industrial complex stands to pocket handsomely from Iranian fears of US invasion. Indeed, Iranians are well received customers of Russia's bargain bin defence industries.
Another positive by-product of Middle East tension is high energy prices: 30% of Russia's budget comes from the export of energy products. It is no surprise that, besides the economic benefits, high oil prices fill both government and oligarch coffers substantially. Russian oligarchs and Kremlin officials must be asking themselves "why deescalate the crisis when we profit so handsomely from it?" consequently, it is not in Russia's interest to resolve the American-Iranian standoff.
Most significant Russian enterprises, military-industrial firms, banks and energy giants such as Gazprom are so closely tied to the state that there are in fact almost no boundaries between business and the Kremlin. In fact, you could go as far as to coin an entirely new term for these enterprises, namely "Kremlinprises:" the money machines of Russia's well connected oligarchic elite.
Turning to the political perspective, America's desperation in the Middle East has given Putin a carte blanche to deal with his own pestering fundamentalist problems in Russia's caucus powder keg of Islamic nationalists. For a country as large as Russia, remarkably little news finds it way to the press, unless it concerns energy of course.
The Russian bear seems to finally be waking up from its democratic and free market hangover of the wild 90's. The current nationalist and authoritarian reflex is one that has gone by with remarkable support, albeit at the expense of freedom and equality. Nonetheless, Putin has managed to charm much of the world, using not only his own charm, but borrowing heavily from the grandeur and symbolism of old Tsarist times as well.
With new splendor, power and determination, Russia is once again present on world stage as a worthy global power. Within this reborn diplomatic fervor, Putin is striking deals and renewing bonds with old allies such as India. If during the cold war Russian alliances and diplomatic interests where based on ideology, today they are based on business. With business and state affairs so closely connected in the Kremlin, Russia is basically one giant state enterprise, though one in which top level managers reap a significantly larger portion of the benefits. Russia's neighbors are feeling the pinch of the surgent Kremlin corporatism. Tough renegotiated oil contracts show that the regime favors money more than it does old compatriots (witness the recent standoff with arch ally Belarus).
The US would be wise to take heed of this new transformation and understand the novel role Russia is playing not only in Europe, but also in the Middle East and Asia. While the US is seemingly wasting its resources in a futile bid for control and stability in the Middle East, Russia is biding its time, patiently rebuilding its domestic, political, industrial and economic power base. After nearly a century, Russia has a new Tsar. Funny enough, the pawns, as well the stakes, are the same (if not greater).
Please click here for The Oil Tsars Part 1
Another positive by-product of Middle East tension is high energy prices: 30% of Russia's budget comes from the export of energy products. It is no surprise that, besides the economic benefits, high oil prices fill both government and oligarch coffers substantially. Russian oligarchs and Kremlin officials must be asking themselves "why deescalate the crisis when we profit so handsomely from it?" consequently, it is not in Russia's interest to resolve the American-Iranian standoff.
Most significant Russian enterprises, military-industrial firms, banks and energy giants such as Gazprom are so closely tied to the state that there are in fact almost no boundaries between business and the Kremlin. In fact, you could go as far as to coin an entirely new term for these enterprises, namely "Kremlinprises:" the money machines of Russia's well connected oligarchic elite.
Turning to the political perspective, America's desperation in the Middle East has given Putin a carte blanche to deal with his own pestering fundamentalist problems in Russia's caucus powder keg of Islamic nationalists. For a country as large as Russia, remarkably little news finds it way to the press, unless it concerns energy of course.
The Russian bear seems to finally be waking up from its democratic and free market hangover of the wild 90's. The current nationalist and authoritarian reflex is one that has gone by with remarkable support, albeit at the expense of freedom and equality. Nonetheless, Putin has managed to charm much of the world, using not only his own charm, but borrowing heavily from the grandeur and symbolism of old Tsarist times as well.
With new splendor, power and determination, Russia is once again present on world stage as a worthy global power. Within this reborn diplomatic fervor, Putin is striking deals and renewing bonds with old allies such as India. If during the cold war Russian alliances and diplomatic interests where based on ideology, today they are based on business. With business and state affairs so closely connected in the Kremlin, Russia is basically one giant state enterprise, though one in which top level managers reap a significantly larger portion of the benefits. Russia's neighbors are feeling the pinch of the surgent Kremlin corporatism. Tough renegotiated oil contracts show that the regime favors money more than it does old compatriots (witness the recent standoff with arch ally Belarus).
The US would be wise to take heed of this new transformation and understand the novel role Russia is playing not only in Europe, but also in the Middle East and Asia. While the US is seemingly wasting its resources in a futile bid for control and stability in the Middle East, Russia is biding its time, patiently rebuilding its domestic, political, industrial and economic power base. After nearly a century, Russia has a new Tsar. Funny enough, the pawns, as well the stakes, are the same (if not greater).
Please click here for The Oil Tsars Part 1
2 comments:
As you rightly point out, the distinction between the state and the industrial sector in Russia is blurry at best.
According to some definitions of fascism, one of the key components of a fascist government is a level of intense collaboration between private industry and the state, military-industrial complexes being one obvious example. Certainly this was true of Nazi Germany, and Mussolini's Italy.
You refer to the current situation in Russia as an oligarchy of sorts, but I wonder if there is scope for comparisons with fascism. I was particularly intrigued by the following passage from Part 1:
"The streets in Russia are also becoming poisoned with ultra right wing nationalism, where gangs and organized crime contest for control. State owned media is for a large part responsible for fueling this nationalist sentiment. The atmosphere is reminiscent of 1930's Nazi Germany, with minority groups being openly blamed and targeted for the social economic turmoil."
So in favour of fascism we have: right-wing nationalism, nationalist fervour spurred on by state-owned media/propaganda and industrial collaboration.
One thing missing is an authoritarian leader. Putin's personality may well suit such a role, but he's doing a good job of hiding it in the eyes of the world.
I'd appreciate hearing what you think.
There are certainly some "far reaching" comparisons between current state of Russia and Nazi Germany. But Putin has it made clear that there will be elections in 2008 in which he will stand down. Also different from Nazi germany is that there as yet no obvious links of orchestration with regards to skinhead groups and the kremlin. At the very least though they are tolerated and current media control is rather spiteful of immigrant groups: linking them to terror groups, stealing jobs etc.
It remains to be seen, however, the extend Putin can be personally linked with these developments.
Post a Comment