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Download the PDF version of the report
"Behold the Bear: Ten Reasons Americans Should Care About Russia"
The war in South Ossetia and Georgia, though appalling, resulted in fewer deaths and damage than originally reported. It is still not "over" and probably won't be for some time. Meanwhile, it definitely did serious damage to Russia's relationship with the West. In some ways, relations are worse than at any time since well before the collapse of the USSR--in other words, in roughly a quarter century.
We are going to say a lot more on this, and we are not inclined to be particularly laudatory to any of the players. The war has not made any country look good.
Meanwhile, before the war we wrote a report on Ten Reasons Americans Should Care About Russia. It follows, and, as you will see, it remains valid. Perhaps as tempers cool, people of good will can consider what is at stake; what there is to gain, and what there is to lose.
Download the PDF version of the report, or proceed to the extended post to read the online version of the publication.
Continue reading "Behold the Bear: 10 Reasons Americans Should Care about Russia" »


Georgian President Mikheil Saakashvili (left) and Russian President Dimitri Medvedev
Russians and Georgians fight it out--in print. The Financial Times has scored by publishing articles by both Dimitri Medvedev and Mikheil Saakashvili. (P.R. firms representing both sides must be working overtime.) Obviously, both presidents are biased, but their points of view could have not been presented more clearly. Medvedev's "Why I had to Recognise Georgia’s Breakaway Regions" and Saakashvili's "Moscow’s Plan Is to Redraw the Map of Europe" in the order of their appearance in the FT:
Why I had to Recognise Georgia’s Breakaway Regions
By Dmitry Medvedev
Financial Times
August 26, 2008
On Tuesday Russia recognised the independence of the territories of South Ossetia and Abkhazia. It was not a step taken lightly, or without full consideration of the consequences. But all possible outcomes had to be weighed against a sober understanding of the situation – the histories of the Abkhaz and Ossetian peoples, their freely expressed desire for independence, the tragic events of the past weeks and international precedents for such a move.
Continue reading "The Battle of the Dueling Presidents: Take Your Pick or “None of the Above"" »

Russia's Natalia Paderina and Georgia's Nino Salukvadze hugged after winning Olympic silver and bronze medals, respectively, in the women's 10-meter air pistol competition.
The Beijing Olympics 2008 set a high standard for the next Olympics hosts, Canada (Vancouver 2010). Then comes Britain (London 2012), and Russia (Sochi 2014). Undoubtedly all will be daunted by the precedence of extravagance that China displayed, while there also will be new security concerns for future events. Not everyone will want to, or be able to, crack down on dissent the way the Chinese did, either. Just one thought: Sochi is only a few miles from the Georgia frontier and the Sochi winter games are only four years away.
While the Russian team didn’t do well in the beginning of the 2008 games, lagging behind other nations at the eighth and sometimes 12th places in the total medal count, the country caught up towards the end and finished in a solid third place with 72 medals behind America (110 medals) and China (100 medals). Americans earned more medals than ever before, however China ended in the first spot with the most gold medals.
Overall, Russia’s performance was admirable. Two and three decades ago many nations were united under one Soviet flag, representing a larger population and therefore more athletes to draw from. It’s interesting to note that in 2008 Ukraine ended in 11th place with 27 medals, an impressive display for a relatively small nation, and Belarus surprised us with its 16th spot and 19 medals, ahead of such countries as Poland or Canada. Georgia came in 27th place with six medals, and Kazakhstan secured the 19th position with 13 medals. Those who followed the Olympics closely noticed that the former Soviet nations performed best in their historically strong areas. Kazakhstan, Ukraine, and Belarus did well in boxing, wrestling, weight-lifting, and other “manly” activities. Ukraine, Belarus, and Russia secured best spots in women’s gymnastics. Overall, Russian women looked stronger and more confident in their disciplines than the men did.
Please visit the extended post to see the table of medals for the team of the Russian Federation.
Continue reading "Russians, Happy Over Olympics, Look to Sochi, 2014" »
There is a certain game-playing going on in the Caucasus that is not very confidence-inspiring.

The U.S. Coast Guard cutter, Dallas at Georgia's Black Sea port of Batumi, Wednesday, Aug. 27, 2008. The Dallas, had originally been slated to dock at the Black Sea port of Poti, which is still controlled by Russian forces. (Photo and story by AP)
US, Russia Anchor Military Ships in Georgian Ports
By Sergei Grits and Jim Heintz
Associated Press
BATUMI, Georgia (AP) — A U.S. military ship loaded with aid docked at a southern Georgian port Wednesday, and Russia sent three missile boats to another Georgian port as the standoff escalated over a nation devastated by war with Russia.
The dockings came a day after Russian President Dmitry Medvedev recognized two Georgian rebel territories of South Ossetia and Abkhazia as independent states, prompting harsh criticism from Western nations.
Continue reading "Suddenly it’s a Georgia “Standoff”?" »

Download the PDF version of the report Russia’s Forestry Industry Overview

John Deere service center in Syktyvkar, the Republic of Komi
The Russian Federation has experienced significant changes since the volatile years of the 1990s. Nine straight years of consistent GDP growth along with political stability, high commodity prices, and a great influx of foreign direct investment have transformed Russia into a modern country with the 9th largest economy in the world. (1) The country’s newfound wealth is driving the modernization of all major industries in the country and especially in the forestry sector.
With the passing of the 2007 forest code and continuing modernization in equipment and techniques, Russia's forestry industry has the potential to increase wood products output by 4 times its current rate. (2) Considering that Russia contains one quarter of the world’s forests, industry experts proclaim that “the potential of the national timber industry is no less than that of the oil, iron, and steel industries.” (3) According to some experts, the economic potential of Russia’s forestry industry can be estimated at more than 100 billion US dollars(!). (4)
Continue reading "Weekly Market and Industry Report: Russia’s Forestry Industry Overview" »


The Villa Leopolda on the French Riviera
When Bill Gates, the founder of Microsoft, spent $45 million a few years ago to build a mansion on the east side of Lake Washington, near Seattle, it was thought to have been the most expensive house ever. Regardless, it was a carefully thought out space for man who was the richest person in the world — at least until he gave most of his fortune away. Gates is the individual who did more than anyone to help put a personal computer in every office and home. Then he and his wife turned to helping save lives around the world through their new foundation.
In any case, the honors for Big-Spender in the home category just keep going up and up. And wouldn’t you know that the folks who sold off Russia’s assets in the 1990s would be the leading contenders what has become a spectacular new conspicuous consumption sweepstakes?
When the $750 million house on the Riviera went on the market recently, many just assumed that the buyer—if any—would turn out to be a Russian. And so it is, according to Fox News.
Just who is the happy new home owner? Is he someone who, like Gates, made his money improving life for others while making a fortune for himself? Did he, too, set up a prestigious foundation to help the sick and unfortunate? Or is he one of the notorious kleptocrats?
Continue reading "Russian Conspicuous Consumption Reaches New Heights" »


It may take 50, 100, or even more years before historians acquire a proper understanding of Alexander Solzhenitsyn's legacy. For his contemporaries, however, he is first of all the literary giant who almost single-handedly delivered the most powerful weapon in the East – West ideological confrontation with his works. This weapon helped the West to defeat the "Evil Empire" with the collateral result of crushing the Communist International and "reeducating" the European Left, which to some extent was sympathetic to the Soviet experiment.
History knows other cases when words were more powerful than guns. Without going into dangerous religious waters one could point to Karl Marx, who published a powerful indictment of a capitalist system which eventually led to the enslavement of nearly half of mankind. And it took Solzhenitsyn to undo the work of Marx. For this, the world and especially Russia should be forever grateful to this man. However, when it comes to modern times, Solzhenitsyn's ideas of rebuilding his native land did not find too many followers, at least so far.
Continue reading "Alexandr Solzhenitsyn Street The Legacy Begins to Clarify" »


A scene from the movie with Vera and her father
A Driver for Very (Водитель для Веры) is a fine romantic drama from director Pavel Chukhraj. Set during the summertime on a secret Soviet naval base in the Crimea of the early 1960s, the movie uses the height of the Cold War and the Cuban Missile Crisis as the backdrop for its human drama. The heroes of this Russian movie are a Red Army general and a young soldier, and the villains are KGB agents.
The plot revolves around General Serov (Brogdan Stupka), who has a physically disabled and troubled daughter named Vera (Yelena Babenko). Vera walks with a noticeable limp but also drinks and smokes and wears glamorous clothes. When Viktor (Igor Petrenko), a young Red Army soldier, is recruited from the Kremlin Guards to work as the General's chaffeur, he is immediately attracted to Vera, in spite of the teasing advances of the General's pretty young maid Lida (Yekaterina Yudina, not so believable in this role).
Continue reading "Voditel Dlya Very (A Driver for Vera) Reviewed" »


Valery Gergiev performing in South Ossetia
Who would have imagined that barely after the guns stopped in South Ossetia, the principal conductor of the London Symphony, Valery Gergiev, who also is lead guest conductor of the New York Metropolitan Opera, would appear out of the smoke to lead a classical musical requiem for the war dead?
Gergiev, it seems, is a native of Ossetia, and his performance of Tchaikovsky’s Fifth Symphony and Shostrakovich’s Seventh Symphony was surely one of the few propaganda coups—and the classiest—that Russia has had in the current international crisis. One can note that the numbers of war dead are turning out to have been exaggerated in early reports, and one can hope that people will find a resonance in their hearts for all of them--on both sides. That might cause reasonable men of good will to seek real peace.
Continue reading "Surprising High Notes Struck in Ossetia" »


Best Buy is coming to Russia
Many have wondered whether the conflict in U.S.-Russian relations over Georgia was going to affect business relations between private corporations of the two countries. Tentative indications are “no.” Last week, reports Reuters, Best Buy Co Inc (BBY.N), the leading U.S. retail electronics chain, expanded into Russia, having registered its Future Shop trademark to operate in the fast-growing market. Victoria's Secret, owned by Limited Brands (LTD.N), and Japanese retailer Muji have also registered trademarks in Russia this month, Kommersant reported, as a decade of economic growth continues to boost wages and demand for high-end goods.
Vedomosti newspaper, citing the government patent agency Rospatent, said Best Buy had entered its license application for Future Shop, a Canadian subsidiary, in 2006, but has never voiced any intentions of opening stores in Russia. Rospatent has registered the Future Shop brand and is still reviewing the application for the Best Buy trademark, Vedomosti reported. Kommersant also reported that Best Buy had this month been granted Russian trademark rights for Future Shop. The move of Victoria's Secret, Bes tBuy, and Rospatent, most likely, has no relationship to the ongoing conflict, but is a great indicator that the American-Russian business has a bright future.
Continue reading "While Conflict Deepens, Business Goes On" »

Download the PDF version of the report Russia’s Retail Market: Trends and Opportunities

Entrance to an IKEA store in Rostov, Russia.
Summary of contents
- Russia’s economic outlook
- Russia’s retail sector
- Case studies
- Opportunities
Russia’s economic outlook
Since 1999 Russia has experienced outstanding growth rates, constantly improving macroeconomic conditions, and growing involvement in the global economy. These achievements, together with high world oil prices, political and economic stability, and skyrocketing foreign direct investment have all contributed to the growth of the country’s economy.
Continue reading "Crisis in Georgia or Not -- Weekly Market and Industry Report: Russian Retail Market" »

By Mike Wussow and Bruce Chapman

A Russian gas rig in Siberia. Russia currently produces over 9 million barrels of oil per day and has the world's largest proven reserves of natural gas, giving Moscow significant geopolitical clout
(Note: Some of the issues described in this post - particularly U.S. oil dependency and energy security - will be the focus of a major conference hosted jointly by Discovery Institute's Cascadia Center and Microsoft on September 4-5, 2008. Participants will include Anne Korin and James Woolsey, both of whom are also referenced in this post. Details are available here.)
The Russia-Georgia conflict brings uncomfortably to the surface the question of energy security. Like much of the rest of the world, America is addicted to oil, most of it now imported. We rely on petroleum to fuel just shy of 100 percent of our transportation. America imports from its neighbors, Canada and Mexico mainly, but almost as much from Saudi Arabia, Venezuela and Nigeria. Russia supplies 762,000 barrels each day to the U.S. according to numbers released by the U.S. government in June.
Continue reading "To Reduce Russia Stand-off, Reduce Western Oil Dependence" »


"Russians in Georgia: Behind the harrowing individual tales of destruction and want, analysts see a clash between the US and Russia reminiscent of old Cold War divisions," reports BBC News.
The Washington Post has perhaps the best report so far on how the war in South Ossetia and Georgia got started. It is astonishing how this episode ignited a torrent of abuse and prejudice, second guessing and histrionics on both sides.
Link to the recommended article
Continue reading "Classic "What Were They Thinking?"" »

On June 17, 2008, we opened Orange Golf Driving Range in the village of Yablonovsky in New Adigeya. The driving range is a first step as we continue to move forward with our project to build Krasnodar’s first private country club community.
Since the actual golf course will not be open for another two years, we built Orange Golf as a place for people to learn golf now and improve their skills. We hope that many Krasnodarians will use our facility to learn the basics of golf and then on their next trip abroad try the game at the resort where they might be staying.
Continue reading "Krasnodar Discovers Golf" »


Russian President Dmitry Medvedev, right, and German Chancellor Angela Merkel, left, look on during a news conference at the presidential residence in the Russian Black Sea resort of Sochi, on Friday, Aug. 15, 2008.
Listen to my interview about the Russian-Georgian conflict on Seattle 710 KIRO AM's Dave Ross Show from August 14, 2008 by downloading this file. For an easy download, please, click on the link with the right button of your mouse and choose an option "save target as." After the podcast file is uploaded, you can open it with Windows Media Player or any other free media software.


“George Bush's Administration is promoting interests of candidate John McCain,” said Dr. Markov. “Defeated by Barak Obama on all fronts, McCain has one last card to play yet - the creation of a virtual Cold War with Russia..."
Wild rumors somehow still make the news. The silly efforts in Moscow to link the outbreak of war in Ossetia/Georgia to the U.S. Presidential race effectively treats this whole tragedy as farce. Does this mean it also is not being taken seriously?
From The Times (London)
By Charles Bremner in Moscow
August 15, 2008
Link to the original article
Kremlin dusts off Cold War lexicon to make US villain in Georgia
Russians were told over breakfast yesterday what really happened in Georgia: the conflict in South Ossetia was part of a plot by Dick Cheney, the Vice-President, to stop Barack Obama being elected president of the United States.
Continue reading "Treating War as Political Farce" »

Map of the conflict region
The BBC is reporting this on the US Secretary of State’s visit to Tbilisi:
“Ms Rice will present President Mikhail Saakashvili with a European Union-brokered ceasefire deal, but he has said he would need ‘a closer look’ before signing. The Russian President, Dmitry Medvedev, has demanded that Georgia sign the deal immediately - but said only Russia could guarantee peace in the region.”
But we were told several days ago, and everyone has assumed, that President Sarkozy, when he arrived in Tbilisi with the Medvedev-Sarkozy plan, already succeeded in getting President Saakashvili’s signature on the document. Now it seems to remain an open option.
If the BBC report is true, there is no ceasefire between the Russian and Georgia forces.
Continue reading "Has Georgia Signed the Ceasefire?" »


President George Bush, flanked by Condoleezza Rice, the Secretary of State, and Robert Gates, the Secretary of Defense, announced that he is sending Rice to Georgia and directed Gates to start humanitarian missions. Later on Thursday, Defense Secretary Robert Gates said he sees no need to invoke American military force in the war between Russia and Georgia. (EPA/Times Online/AP)
The precipitating event in the war in South Ossetia and Georgia was the Georgian shelling of Tskhinvali. That either provided an "excuse" for the Russians to invade or a justifiable "reason". Either way, without that shelling the outbreak of war was unlikely.
How did it happen? Why were the Georgians so reckless? Some Russians say it was part of a plan to annex South Ossetia by force. Georgians say it was in response to provocations (the Russians supposedly set the Georgians up).
There also are different views of what America's role was at that time. Some Russians suppose that the United States knew and approved of the attack.
Continue reading "Intelligence Failure on Georgia: Open an Investigation" »

Georgian troops fleeing their military base under the pressure from the Russians.
The scene on the ground would have been very different today if Georgia had been able to move past Tskhinvali after they shelled the city last week. Of course, it is not known if moving forward was the plan.
The route by which Russian troops, weapons and humanitarian supplies came south while thousands of refugees went north is a single narrow road from the Roki Tunnel built in 1985. Readers are invited to “drive” this road on Google Earth. If one does so, one comes to a large bridge where the road turns south in a defile at 42°21'29.61"N 43°54'2.58"E. This location is about 25 kilometres from the South Ossetian border.
Continue reading "Could the Georgians Have Done Better?" »

Relatives of Oleg Golovanov, a Russian soldier killed during the fighting between Georgia and Russia, mourned during his funeral in Vladikavkaz, Russia. (Photo by The New York Times)
International reporting is definitely improving, but the holes are still major. For example, it is said in a Wall Street Journal op-ed that the Russians tried to bomb the Georgian oil pipeline, but there is no actual reporting to sustain this claim. Likewise, there is a reporting lacuna on what exactly precipitated the Georgian shelling of Tskhinvali. What exact provocations were they responding to? Their own story on this deserves to be heard. Was it something specific or general, or what? Did the Russians agitate the Ossetian militia; if so, how?
So, when did the “war” begin?
Meanwhile, there is no doubt that we have seen a serious diplomatic and political debacle for Georgia, the U.S. and even Russia, and to an extent, the European Union. Gratefully, the war--once it had been engaged—does not seem to have realized the extent of killing feared early on. It could have been worse. Of course, if you or someone you know is one of the statistics, that is no consolation.
Continue reading "Continuing Fact Dearth in Ossetia/Georgia" »

President Mikheil Saakashvili of Georgia, left, with President Nicolas Sarkozy of France in Tbilisi (photo by The New York Times)
Radio Free Europe/Radio Liberty has two valuable video clips worth noting: the first is the South Ossetia/Georgia chronology of fighting, the second the rally of Eastern European leaders in Tbilisi three days ago.
The chronology is useful because it shows the confusion about whom provoked whom first, though there is no doubt that the Georgians did start the shelling, giving Russia reason to invade. This, along with the US government failure to figure out what was going on in time to stop it, has to constitute the disaster's precipitating blunder.
Continue reading "Some Context Before It Is Lost" »
Russia Blog editors found this article informative and interesting.

Vladimir Putin's Mastery Checkmates the West
Russia has been biding its time, but its victory in Georgia has been brutal - and brilliant
The Times
By Michael Binyon
August 14, 2008
Link to the original article
The cartoon images have shown Russia as an angry bear, stretching out a claw to maul Georgia. Russia is certainly angry, and, like a beast provoked, has bared its teeth. But it is the wrong stereotype. What the world has seen last week is a brilliant and brutal display of Russia's national game, chess. And Moscow has just declared checkmate.
Continue reading "The London Times: Vladimir Putin's Mastery Checkmates the West" »


When Russian army was advancing, Georgian troops, police, and city officials ran in disarray, leaving military equipment, cities, and citizens behind. (watch the Times Online video)
It is very difficult to understand exactly what is happening in Gori but it is clear that it is bad and getting worse.
The BBC is there and, looking at their reports (also this link) it seems clear that the civil authorities have fled and that people are being murdered and robbed. My suspicion is that, apart from the usual criminal elements who take advantage of power vacuums, it is probably Ossetians seeking revenge.
On the Russian side, Interfax reports:
“Deputy chief of the headquarters of the peacekeeping force Maj. Gen. Borisov today travelled to Gori especially to discuss questions of Georgian troop withdrawal with the local administration and law enforcers. Unfortunately, he did not discover any local leaders in the city”.
Continue reading "War in Georgia: Power Vacuum in Gori " »

President Sakozy (left) and President Medvedev (right). "President Nicolas Sarkozy has shown a flair for the high-profile diplomatic intervention," reports BBC. (Photo by AFP). Russia and Georgia declared today, August 13, 2008, a Day of Mourning for the victims of the conflict.
France, which currently holds the Presidency of the EU, in the persons of President Sarkozy and Foreign Minister Kouchner, has induced President Saakashvili to sign the Medvedev-Sarkozy agreement.
According to both President Medvedev’s office and a French news agency the terms are as follows:
1. Tbilisi must make a commitment not to use force to settle its secessionist problems.
2. Georgian armed forces must cease fire.
3. Georgian armed forces must return to their barracks.
Continue reading "War in Georgia: Now Comes the Hangover" »
The Wall Street Journal offers good coverage of the events from the heart of the conflict.
Russian Troops Still Pour Into South Ossetia
Scarred Area Vents; Anger at Georgia; Death Toll Unclear
By ANDREW OSBORN and MARC CHAMPION
August 13, 2008; Page A8
Link to the original article

Russian soldiers sit atop military vehicles in South Ossetia
TSKHINVALI, Georgia -- The Kremlin said Tuesday that it was suspending military action in the separatist enclave of South Ossetia inside Georgia, but huge Russian military convoys still snaked toward the scarred capital, Tskhinvali.
After five days of fighting -- Russia's biggest use of force outside its borders since the 1991 Soviet collapse -- a victorious Russian army offered a small group of foreign journalists a carefully controlled glimpse of the territory it went to war over.
Continue reading "War in Georgia: Interesting Reporting by WSJ" »


Ossetian civilians, just like the teenagers in Seattle and politicians in Washington, are trying to understand what is going on. It is just as hard to get the facts at the “ground zero” of the conflict as it is thousands of miles away.
True story from Seattle: Two teen-age girls were overheard at lunch yesterday:
"Did you see that the Russians have attacked Georgia?"
"No! Where? Atlanta?"
"I'm not sure!
"Like, why would they DO that?"
Well, those girls are not much far behind the mentality of the political and media--and think tank--classes these past few days. People should be wary about the lack of information, let alone perspective. But that hasn't stopped the opinion classes from offering their dire analyses and even more dire recommendations. We could link to literally hundreds of opinion pieces about the significance of what has happened in the "war in Ossetia and Georgia."
But before we opine further on this here, some questions:
Continue reading "War in Georgia: Too Many Arguments, Not Enough Facts" »

Edward Lozansky leaning on piano at the Russian Cultural House in Washington D.C. during the World Russia Forum (May 2008).
Edward Lozansky, senior advisor to Discovery Institute’s Real Russia Project and the President and Founder of the American University in Moscow, participated yesterday on the discussion panel “Are the US and Russia Heading for Another Cold War?” on the National Public Radio’s program “To the Point.” Other program participants were: Paul Rimple (Reporter, Christian Science Monitor), Janusz Bugajski (Director of the New European Democracies Project, Center for Strategic and International Studies), and Steve Clemons (Director, New America Foundation).
We encourage our readers to listen to the podcast of the show.
Listen to the show (streaming audio)
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