Al-Jasser: work is underway to restructure and develop aviation infrastructure    Diriyah to host third IMFC Deputies meeting under Saudi chairmanship    15,135 decisions taken to penalize Saudis and expats for violations    Saudi-European Parliamentary Friendship Committee discusses cooperation during Strasbourg visit    Saudi stock market loses half a trillion riyals, with Aramco's losses amounting to SR340 billion Tariff turmoil rattles Gulf markets    KAU to host Digital Communication Conference in Jeddah from April 29 to May 1    TGA: Riyadh tops with 45% of 290 million orders delivered in 2024    Aja and Salma mountains draw nature lovers to Hail's rugged landscapes    US revokes all visas for South Sudanese nationals over deportation dispute    Death toll from Myanmar earthquake rises to 3,471    Macron to hold Gaza summit with Egypt and Jordan in Cairo    Benzema rescues Al Ittihad with stoppage-time equalizer in thrilling Jeddah Derby    Al Qadsiah and Al Ettifaq share spoils in tense Eastern Derby stalemate    Moussa Diaby praises Al Ittihad's resilience after Jeddah Derby draw "When you can't win, you take a point"    Saudi assistant referee Iman Al Madani joins AFC elite list for 2025    Riyadh Art Week launches with over 50 galleries showcasing global artistic dialogue    Turki Al-Sheikh announces five new Saudi film projects to be produced in Riyadh    Saudi Ministry of Education to showcase innovations at 2025 Geneva International Exhibition    Ed Sheeran weaves Persian music into new song, Azizam    Veteran Bollywood actor Manoj Kumar dies at 87    Screen time in bed linked to insomnia, study finds    Bollywood actress vindicated over boyfriend's death after media hounding    Grand Mufti rules against posting prayers and preaching in mosques on social media    King Salman prays for peace and stability for Palestinians in Ramadan message King reaffirms Saudi Arabia's commitment to serving the Two Holy Mosques and pilgrims    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Putin's gamble
Published in The Saudi Gazette on 29 - 10 - 2014

The US-led economic sanctions that were originally imposed on Russia stem from Moscow's seizure of the Crimea and its violation of Ukrainian sovereignty. Further attempts to censure Russia have been triggered by Russia's clear interference and indeed fostering of the current separatist fighting in the east of Ukraine.
The echoes of Cold War proscription on trade with the Soviet Union are clear. Communist leaders were by and large forced to go it alone, economically. President Vladimir Putin has just told a gathering of foreign correspondents that he is perfectly content to return to the old Soviet-era self-sufficiency. Indeed, his officials were busy briefing that Russia positively relished the opportunity to replace foreign consumables that have become shopping staples of the middle classes.
It is a given, even among diehard Communists that the Soviet state, dominated as it was by the so-called “Military Industrial Complex” demonstrated ever-greater economic illiteracy. Indeed, it was the parlous failure of the centrally-planned economy that triggered the Communist political collapse.
Russia today, so the Kremlin argues, is very different. It is a free-market economy with a strong financial system, substantial foreign currency reserves, a steady income from oil and gas sales and plenty of entrepreneurs ready to expand their production to make up for the loss of French yoghurts and cheeses, German wurst and Italian designer clothes. Indeed, argue Putin's people, the economic sanctions which have cut off corporate Russia's access to further foreign currency loans mean that the country simply must boost its import substitution, because there will not be the free flow of dollars and euros with which to pay for imports.
Yet the reality is rather different. Putin is in many ways recreating Soviet-era structures as part of a drive to return absolute power to the Kremlin. Those super-rich oligarchs who have survived imprisonment for challenging the president are no longer powers in the land. Their businesses are being renationalized, particularly in the oil and gas sector.
Russian manufacturers may just step up to the plate and produce the desirable goods that can no longer be imported. However, it seems more likely that a much greater and indeed simpler investment will be made in black market imports. One more layer of economic incoherence, if not criminality, will have been added to an already distorted market.
Western analysts who enthusiastically predict a Russian collapse are influenced by what they hope will happen. Russia will survive, one way or another. Dissent is no longer a threat to Putin. The media has been largely muzzled. Prominent protest leaders are now closely marked by the FSB successor to the KGB in which Putin learnt much his politics.
And of course, Putin has the national pride card to play. It seems clear that many ordinary Russians still admire their tough autocratic leader. They are enjoying the newly assertive Russian foreign policy and they are proud to have “got back” the Crimea. Putin has said that the Crimean annexation is irreversible. He may seek to end international sanctions by enforcing a peace in the eastern Ukraine and quelling Russian separatists. His calculation would be that if he won this deal, it would be a de facto recognition of Moscow's claim to the Crimea. His problem is that the failing President Obama as he approaches his last two anticlimactic years in office, does not wish to appear any weaker.


Clic here to read the story from its source.