Is Russia a bunch of good guys
manipulated by a bad guy? Or is it more complicated than that? Let's
start at the simple level. Why is it that I get this feeling of
uneasiness whenever a Russian crosses my path? I tell myself it's
silly, there is no rational reason for this, but it keeps recurring.
Worse, too often my suspicions are confirmed. Let me give you an
example.
In my neighborhood, many houses are
just for vacation use, owners are absent for long periods, and
neighbors often use their parking spaces. So it happened one day a
year or two ago that a Russian-registered car, a nice new BMW X6 SUV,
turns up in this absent neighbor's car port. “Good going”, I
thought, “Russians doing well and establishing themselves in our
area. - Still,” I thought, “what a long drive!” But after a
couple of weeks, as I'd been walking my dog past the Russian car
every day, it occurred to me I hadn't seen any Russians, and the car
hadn't moved, it was just sitting there gathering dust, more by the
day. A month goes by, two months, no change, just more dust. So
finally I ask the German lady in the next house if she knows who owns
the car. “Someone I know,” she says vaguely, and leaves me
standing there. The next day the car is gone; I've never seen it
since. (It may be added that, as far as I know, there are no Russians
living in our neighborhood, only other expatriates and the odd
Spaniard, including this surly lady friend of the BMW “owner's”.
She now has an E-minus in my book.)
There has been a steady stream of
emigrants from Russia in recent years. Not merely to the
Greek-orthodox EU tax haven Cyprus (where they tend to bunch up), but
also to the US and Canada and parts of Western Europe (Britain,
France, Spain, and Greece among them). Of course, retirees seek the
sun more than anything. And they are welcome in the south, bringing
their money to the wobbling Mediterranean economies. But then there
is this curious fact about them: most of the recent Russian arrivals
seem to be young swingers, not exactly retirement age. And they are
always well supplied with cash. A local businessman tells me he has
more and more Russian customers - “--- they pay cash for
everything, leafing their bills out of big wads of money,” he says.
“And they gladly pay everything in advance.”
I am curious as to how it is that these
young folks are not back home in Russia helping Mr. Putin run his
(their?) country – or simply working at an ordinary job in the
roaring raw materials economy of the beloved Motherland, instead of
working at shipping money out of it. In the new post-Cold War
international environment in which Russians are free to do things
they never could before, they have a few favorite activities: foreign
investment (often in somewhat odd activities); bank accounts abroad;
freewheeling spending as they travel. Western financial commentators
are drawn by the money flow to pay attention to such facts, less to
asking where all this money comes from. I can only guess.
During a year I spent in Paris 1997-98
I always passed a Russian restaurant on my way to and from work, a
small bistro elegantly decorated, attractively lit. During that year
I never once saw a guest in that place, except for a Christmas party.
Obviously it was part of a money-laundering scheme. Of course, this
is just anecdotal. Yet, somehow I believe repeated random examples
are to some extent indicative of a larger phenomenon. Russian
business abroad is in no small measure about money-laundering.
Of course, I am biased. Because, if you
lift your glance from the personal-anecdotal to a broader view of
international politics, Russia is doing well, back in positions of
power, rebuilding its influence after the soviet breakdown. In its
own eyes, if not in those of others, Russia is playing the role of a
great power the way Russians always wanted and felt entitled to. The
once powerful soviet military – which turned out to be a potemkin
village of rusting equipment - is now being restored to a more usable (Russian) version of its former glory. The export of raw materials is obviously
what pays for this, but that extractive business is also what Putin
is using to bait his trading partners into long-term relationships of
supply and dependency.
Diplomacy is a central part of this
offensive. In the old days, Soviet negotiators were hard to beat,
brought up as chess players, able to sit for hours and hours without
a break, and - according to a Norwegian Russia expert of that period
- without saying a word either, if that was required. In Russian, he
said, the expression of approval was “steel ass”.
Today, with international law less
beholden to power plays, Russian negotiating skills and steel asses
are less productive. Also, Putin's government has little patience for
negotiations. The priority is for Russian gas and oil exports to get
to their markets without delay, and especially without the delays of
dealing with transit countries for pipelines or transshipment.
Trouble-making intermediaries (such as, especially, Belarus) have
been cut out without mercy. Old gas and oil pipelines from soviet
times have been carefully rerouted to escape bothersome transit
partners like Latvia, Belarus, Poland and Estonia. Oil shipments
through Latvia were quickly done away with when the Latvians faced
down angry Russian expat pensioners in Riga in 1997-98. By an
incredibly rapid effort the Russians built several large new oil
transshipment terminals near St Petersburg. After those started
operating from 2001, the Latvians were left sitting there with
nothing to show for their previous precious asset, the old soviet era
oil terminal at Ventspils, once the biggest on the Baltic.
The subsequent project to build a gas
pipeline along the seabed of the Baltic Sea from Russia to Germany
(“Nord Stream”) was a stroke of geopolitical genius – all the
intermediaries, potentially 3-5 bothersome governments, were swept
aside at one go. Who could object to such a convenient routing
scheme? Of course, the neighbors did their best. When the Russians
asked permission (as they legally had to) for their pipeline to cross
the others' maritime exclusive economic zones, the neighbors pulled
out all the stops, throwing up legal objections to the best of their
ability. But if this “harassment” of the Russians had some
success, it was only passing. Eventually the Russians tackled the
obstacles, one by one. After that, when the pipeline had been built,
there was no longer anything to protest.
Elsewhere, there are projects for
Russian oil, and especially gas, moving both westward and eastward,
in several gigantic projects. Gas exports to China have been under
negotiation for a number of years, and the first major Russian oil
pipeline to China has been operating since 2011. (China is not
self-supplied with oil and gas.) To the west, the South Stream
project towards southwest Europe is a copy of the Nord Stream
pipeline, similarly stretching across the ocean floor, in this case
the Black Sea. The project is a competitor to the simultaneous
(non-Russian) Nabucco pipeline project, offering gas to Europe from
Azerbaijan piped via Turkey and Bulgaria. In geopolitical
perspective, Russia seeks to tie the EU to Russia for the long term,
while Nabucco is designed to relieve the EU of such Russian
dependency.
These projects show that Russian
policymakers have learned something important from the failures of
the Soviet system: Economic ties don't have to be kept in place by
military means; in fact, things work much better without the clumsy
tools of violence; economics has its own incentives and its own
sanctions.
Still, behind all of these projects is
the same old geopolitical thinking. Geopolitics is a Russian favorite
worldview, an idea that makes sense to them, more than to most other
nations, except perhaps the Chinese, who seem lately to have
discovered it too. Power is linked to territorial control, in
whatever way you can achieve it. Russia discovers, now that the
receding Arctic ice is opening a new, shorter sea route from the
Atlantic to the Pacific, there are new geopolitical advantages
becoming available to them all around. The Northern sea route
drastically shortens the maritime connection between Europe and East
Asia. Also, of necessity it passes close to the Russian coast all the
way from Northern Norway to the Bering Strait, close enough to check
or block transits on demand. The same goes for the Trans-Siberian
Railway, now functioning as a major cargo link between east and west.
Of course, you and I would never think
about trade in terms of control and blocking potential. But if you
think the Russians don't, you should think again. The thing is, it's
not just the blessed little father in the Kremlin who does all the
geopolitical thinking and scheming. It's a major bureaucratic
undertaking. And it's everyman's pipe dream. We are not talking
democracy here, it's not as if the State Duma invents these schemes
based on popular opinion of geopolicy. Rather, the public –
minus the still vigorous anti-Putin opposition (bless them) – are
the cheering spectators, loving every minute of the carousel ride Mr.
Putin offers them.
What Russian democracy under Boris
Yeltsin never achieved, a stable economy and regular payment of
pensions, has been achieved by Vladimir Putin, not because Mr. Putin
is more honest, but because he understands the risk of not performing
on these scores. Besides, he has much more efficient control of the
cleptocracy centered in the FSB that runs his regime than Mr. Yeltsin had of the cleptocracy that ran his.
So much for the country that many of us
had high hopes for in 1990 or thereabouts. We have learned, not just
from the Russian case but from others even more complex, the dangers
of thinking a deep culture of governance can be turned around just by
a snap of the fingers (say, an election), or just by helping them throw off existing
fetters.
The deep culture of voluntary
authoritarian government is well chained and anchored wherever it's found, and it is
widely spread around the globe. Hence, my anti-Russian bias is misdirected; it is too narrow. But Russia is a heck of an example of things that are wrong in the world. So I suspect my anti-Russian bias - like Russia itself - won't change in the foreseeable future.