A crossroad for Russia and America

By Ellen Barry
Published: January 11, 2009
IHT

In August of last year, a new Russia presented itself to the world. From the battlefield of Georgia, the message said: We are no longer seeking the good opinion of the West. The new taste for confrontation was seen by many as a byproduct of oil and gas wealth, which had given Russia's leaders the confidence to risk international isolation. In the title of a book he published in April, the scholar Marshall Goldman offered a one-word explanation: "Petrostate."

That thesis may have a short shelf life. Russian leaders, no longer hoping to make the ruble an international reserve currency, now face a confluence of disasters: The price of a barrel of oil has slid below $40, shares of Gazprom fell 76 percent in a year and more than a quarter of Russia's cash reserves have been spent shoring up the ruble.

But does that mean we can expect a thaw between Russia and America?

The question arises at a moment of high tension. The deadlock between Russia and Ukraine on gas prices has drawn in all of Europe; violence in Georgia could flare up again. Barack Obama's Russia policymakers are taking office under the pressure of unfolding events.

Henry Kissinger, who was in Moscow last month, is offering the hopeful view that the global financial crash could lead to "an age of compatible interests." But others see the crisis pushing Russia in the opposite direction. So there are two paths:

SCENARIO 1: COOPERATION

In the global financial collapse, as Alexander Rahr of Germany's Council on Foreign Relations put it: "We have all become weaker. We have all become poorer." So, pressed by domestic concerns, both sides pare back their foreign ambitions. Washington slows its timetable on NATO expansion and missile defense; Russia defers the dream of recapturing the Soviet "privileged sphere of influence." Leaders in Moscow present this to the public as a victory.

The logic here is straightforward: A cash-strapped Russia would need Western money and technology to develop its energy fields. State monopolies would seek foreign partners, and bare-knuckled power grabs like Russia's past moves against BP and Shell Oil would look counterproductive. The "battle of ideas" within the Kremlin, as Igor Yurgens, an adviser to President Dmitri Medvedev, describes it, would turn away from "isolation, seclusion, imperial instincts" and toward long-term partnership with the West.

"If we take care of the crisis by isolating ourselves, if we don't learn the lessons from what is already being done, then the fate of Russia can be the repetition of the fate of the U.S.S.R.," Yurgens said. "I don't think we are stupid enough."

SCENARIO 2: RETRENCHMENT AND NATIONALISM

"Less resources means more selfish behavior," as Sergei Markov, director of the Institute of Political Studies in Moscow, has said. In this case, Russia finds itself facing internal dissent and the threat of regional separatism, and lacking large piles of oil money to disburse in hopes of keeping control. Forced to fight for their own survival, political leaders tailor their policies to domestic public opinion. They focus on an external enemy — the United States, which leaders have already blamed for Russia's financial crisis, and with whom Russia is already deeply irritated over the prospect of American military influence reaching Ukraine.

By this logic, it would be absurd to cede ground to the West now, after the long-awaited taste of satisfaction that Russians got in Georgia. Many Russians see the August war as a restoration of Russia's rightful place in world events — a product not of oil wealth, but of the Russian society's recovery from the Soviet collapse.

"Russia has returned, period," said Vyacheslav Nikonov, president of the Kremlin-aligned Polity Foundation. "That will not change. It will not get back under the table."

WHICH scenario is more likely?

"It's just the way things are," said Vyacheslav Nikonov, whose grandfather, Vyacheslav Molotov, was Stalin's foreign minister. Searching his memory for periods of warmth between the two countries, Nikonov came up with two: March and April of 1917, and August through December of 1991.

The full article is here