10 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.
Despite growing and vibrant connections, the U.S. and Russia sometimes appear to be on a collision course.* Washington sends envoys to Moscow to reassure Russians that their U.S. investments are safe. But efforts by the West to expand NATO make Moscow more than uneasy. Russia’s Gazprom proposes to invest in a thousand mile-long pipeline to ship natural gas from Alaska to the lower 48 U.S. states. But Russian officials threaten to deploy nuclear-capable bombers to Cuba. And the beat goes on. It would be irresponsible to gloss over Russia’s problems, which are many—corruption, poor public health, and a declining population. Those issues and others should be addressed but not to the mutual exclusion of progress in other areas. Hectoring Russia might make Westerners feel good, but it’ll do very little for the Russian people. Trade and investment, on the other hand, offers the hope for quietly influencing Russian behavior without humiliating or patronizing a proud nation. The following 10 points should provide a reason to start. *(Editor’s Note: The situation in South Ossetia began after this RRP report went to press and isn’t a focus of this issues summary.)
1. Russia Is the World's Largest Country, Straddling Europe, China and the Islamic World. Even with the breakup of the Soviet Union, Russia remains the world's largest country, spanning 11 time zones. This vast landmass has much of the world's natural resources and 141 million people. Russia’s size and burgeoning economy influence markets worldwide. The country shares common global economic interests with the U.S., with both direct and indirect effects, including promoting more tolerant forms of Islam and ensuring that China's rise remains peaceful.
2. Russia and America Have Traditionally Been Allies—Not Enemies. Except for the Cold War, Russia and America have often shared common purpose. Russian troops served alongside U.S. Marines to protect foreigners during the Boxer Rebellion in China. In the First World War, Russia sided with America's allies against Germany. During World War II, Russians, partially equipped by American aid, engaged and destroyed over 80 percent of the Nazi armies. On September 11, 2001, Russian President Vladimir Putin was the first leader to call President George Bush. He offered the use of Russian territory and intelligence services in the war against Al-Qaeda. Within weeks, American bombers were flying through Russian airspace to strike Taliban targets in Afghanistan. History shouldn’t be ignored. Russia and America might not always share values in the same manner, but as they have at times in the past, they might find common ground through shared strategic and economic interests.
3. Russia Can Be a Quiet Partner, Not an Adversary in the Global Struggle Against Terrorism. In April 2008, Russia quietly reached an agreement with NATO to allow Russian territory to be used for the resupply of NATO's peacekeeping troops in Afghanistan. This agreement came despite NATO’s expansion up to Russia's borders, a point of ongoing contention between Moscow and Washington. Despite Moscow’s concerns about NATO expansion, a small fleet of privately chartered Russian Antonov heavy airlifters is regularly being employed by the Pentagon to ship American and allied materiel into Iraq and Afghanistan. Common strategic interests can lead to greater shared economic concerns.
4. Russia Benefits from (and Might Help Provide) Stability in the Middle East and Iran. Some commentators have said Russia is siding with Iran against the U.S. and Israel. But a more accurate version of the truth might be that Moscow's main goals have been to maintain good relations with its neighbor while helping alleviate the threat of another regional conflict. Although Moscow has supplied Iran with a civilian reactor, it has tried to prevent Iran's enriched uranium from being diverted to any secret bomb-making project. When Iran wouldn’t cooperate with inspectors in 2006, Russia joined America by supporting sanctions against Iran at the United Nations.
The U.S., Israel, and many Gulf Arab states are justifiably skeptical that Iran’s nuclear program is solely for producing electricity. Iranian President Mahmoud Ahmadinejad’s threats to "wipe Israel off the map" and his support for extremist groups are unacceptable. The Kremlin has condemned Ahmadinejad’s threats, but may believe that it has no choice but to engage Iran through trade and diplomacy, as Iran’s economically sclerotic regime could implode someday, just like that of the Soviet Union. Given Tehran’s desperate need to export more oil and gas for hard currency, Iran probably does need nuclear power, and the U.S. knows and accepts that. The question is, can it be limited to peaceful uses? The evidence is that the mullahs have other ambitions. In the Middle East and Iran, security, energy and economic interests entangle, to one degree or another, most of the world’s nations. Russia might have a foothold from which America could benefit economically and strategically.
5. Russia Is a Pivotal Player in Global Energy Markets. Russia Is the World’s Largest Producer of Natural Gas and One of the World’s Top Two Oil Producers. Russia produces over 9 million barrels of oil per day. It has the largest natural gas reserves in the world, which in turn have made Russia's state-owned monopoly Gazprom one of the globe’s biggest companies by market capitalization. But some industry-specific challenges are on the horizon that could impact global energy prices. In an interview with the Financial Times, Leonid Fedun, the Vice President of OAO Lukoil, Russia’s largest private oil company, said Russian oil production might have peaked in 2007. Does this mean that Russia is running out of oil? Not likely. (Siberia may contain the world’s largest untapped reserves.) The real problem is not a lack of oil in the ground, but high taxes that are hindering reinvestment of profits into Russia’s oil industry. President Medvedev and Prime Minister Putin have called for lowering taxes on Russia’s oil producers, and the government has announced a 10-year tax holiday for major offshore oil and gas projects in Russian waters.
As a major commodities exporter still lacking a well-developed domestic agriculture industry, Russia remains vulnerable to the global wave of inflation in food prices. Many financial analysts believe that taming double digit inflation will require Russia to let its currency, the ruble, appreciate considerably. This appreciation could lead more CIS countries and cash-flush Mideast oil exporters to pick a basket of euros and rubles over dollars as their reserve currencies. Such a shift could push the dollar further down in value, improving the competitiveness of U.S. exports but hurting the vast majority of Americans who depend on one inelastic import priced in dollars—oil. Unlike citizens of China and the OPEC countries, Russian consumers do not receive subsidized gasoline from their country’s state-owned companies.
6. Russia and America Are Interlinked Through Our Financial Systems. When President Bush’s Deputy Secretary of the Treasury Robert Kimmitt visited Moscow in June 2007, he asked the Kremlin to invest more of its $130 billion dollar Stabilization Fund in the United States. Conversely, just a decade ago, representatives of Boris Yeltsin’s bankrupt government sought billions in loans from the International Monetary Fund. Russia’s Stabilization Fund is now the fifth largest pool of capital in the world, trailing only the Sovereign Wealth Funds of China and the Gulf Arab emirates. While Congress continues to fret over the burgeoning influence of sovereign wealth funds from Russia, China and the Middle East, Russian companies are taking advantage of the weakening dollar to acquire assets, such as steel mills and gas station chains, in the United States. Russia’s Stabilization Fund recently announced that it owned $50 billion in U.S.-government backed securities, including short-term paper issued by the troubled agencies Fannie Mae and Freddie Mac.
7. American Investors and U.S. Companies Are Investing in Russia. U.S.-Russia transactions are certainly not a one-way street. U.S. direct investment is one of the reasons Russia is ranked second only to China in the amount of foreign capital it attracts. And thanks to global emerging market mutual funds and new EM-focused exchange traded funds, millions of individual American investors can now own Russian equities in their portfolio, and hundreds of thousands do. These include Russian companies whose American Deposit Receipts trade on the New York Stock Exchange and U.S. over the counter markets such as Vympelcom, Gazprom, and Norilsk Nickel, as well as firms that trade on the London or Moscow exchanges such as Sberbank and Wimm-Bill-Dann. Major New York-based investment banks (Goldman Sachs, Citigroup, J.P. Morgan) are underwriting Russian IPOs on the London and Moscow exchanges, including the massive breakup and privatization of Russia’s Unified Energy Systems electric power monopoly.
Meanwhile, many American car manufacturers are planning to build new factories in Russia. With only 220 cars per thousand people (compared to 815 in the U.S), Russia offers enormous room for growth in the automotive sector. Russia is now one of the most profitable markets for General Motors in the world, and the company plans to expand its manufacturing in the Russian Federation. American big box retailers such as Wal-Mart are plotting their strategies to compete against European incumbents such as IKEA-Mega and Carrefour in the booming Russian retail market. Starbucks has come to Moscow and plans to expand its franchise in Russia even with strong competition from local brands Coffee House and Shokoladnitsa (Chocolatier).
8. Russia and America Are Interlinked Through Our Nuclear Power Industries. Millions of Americans who have enjoyed the benefits of emission-free nuclear energy are probably unaware that some of the fuel for this electricity came from decommissioned Russian atomic warheads. Since 1994, the “Megatons to Megawatts” program has supplied American reactors with 327 tons of highly enriched uranium from Russia, or the equivalent of 13,093 dismantled warheads. In May 2008, the U.S. and Russia reached a new agreement to share nuclear technologies. Russia is planning to create a repository for low-level radioactive waste from the U.S. and other countries. Russia’s federal energy policy calls for more than doubling the percentage of electricity supplied by nuclear energy to the Russian power grid by 2020.
9. America and Russia Are Interlinked Through Science and Technology. Outside of the National Renewable Energy Laboratory in Golden, Colo., very few Americans are aware that Russian and American laboratories are working on a new nano-technology water filtration with an American company, Global Water Group, Inc. in Dallas, Texas. Very few Americans are also aware that the Atlanta, Ga.-based U.S. Centers for Disease Control employs scientists at the Vektor State Research Centre of Virology and Biotechnology in Novosibirsk to counteract the threat of bioterrorism. Russia and America continue to jointly operate the International Space Station, though Americans have only heard about this in recent months due to a toilet breaking in orbit. Russian-mined titanium has been used in advanced American aircraft from the SR-71 to the Boeing 787 Dreamliner, and today Boeing maintains a design center staffed by 1,400 Russian engineers in Moscow.
10. Russian Popular Culture Is Once Again Reaching Audiences in the West. The 2006 U.S. release by Fox Searchlight Pictures of Night Watch (Nochnoi Dozor), followed by its sequel Day Watch (Dnevnoi Dozor) in 2007 marked a turning point for the spread of Russian popular culture in America. For the first time since the collapse of the USSR, Russian directors have proven that their blockbusters can draw audiences away from Hollywood films within Russia, and that studios are beginning to think that Russian movies can attract an audience in America. The proof? The third installment of director Timur Bekmanbetov’s epic horror series, Twilight Watch (Sumerechny Dozor), is being filmed in English. And 2008’s Wanted, starring Angelina Jolie, was a veritable all-Russian affair, from the direction and cinematography to the musical compositions and accounting.
Russians are finally beginning to be known at the pop culture level in the English-speaking world for more than producing vodka and mafia. American expats already know that Moscow is becoming famous for its night life and shopping, with U.S. brands like Ralph Lauren, Hummer, and even Starbucks coming to Moscow and other Russian cities. Finally, millions of Russians and Ukrainians are discovering that most American of cultural exports—hip-hop music—being produced in their own language.
For footnotes please download the PDF version of the document. For detailed information on the above topics, as well as weekly news and commentary about Russia, please visit www.RussiaBlog.org. This publication was prepared by Discovery Institute’s Real Russia Project (Seattle, Washington USA). For more information about the Project or to find out how you can support it, please contact yuri@discovery.org or +1 (206) 292-0401, ext. 151 and visit www.RealRussiaProject.com.
Comments
I think that it is very important for American been together as Partners with Russia as per this article.
I think any how in future Russia will lead a great player in world economic and it is good to make peace and drive as the world to be a very peaceful place.
There must be a quick solution for this problem in Georgia.
Well I think to control the world and make peaceful place it better foe West to Join with Russia and China, Otherwise end up having World War III.
Posted by: Mohamed | August 28, 2008 5:23 AM
Beginning of the end for Putinism
Russia's invasion of Georgia was a sign of weakness rather than strength. My guess is it will mark the beginning of the end for Putinism, just as the Soviet invasion of Czechoslovakia in 1968 sounded the death knell of communism. Something is going seriously wrong in Putinland. The Russian economy chips in barely 2.5 per cent to the total global gross domestic product. Oil revenues are being earmarked for modernisation, but the investment is likely to be mismanaged and trickle away. Last week I was in Sebastopol to witness the pride of the Russian Black Sea fleet, which has just seen action in Georgia. Expecting a superpower force, I saw nothing but rust-bucket vessels. Oil cash may be going to the armed forces of the "resurgent" Russia, but most of it is spent on pensions. China's investment in R&D now accounts for 1.42 per cent of its GDP. Russia, well ahead of China a decade ago, barely invests 1 per cent. It is a country in decline.
Posted by: Roman | August 28, 2008 10:58 AM
Surely Americans and the American govt should care about Russians.
What would be interesting to read here is 10 reasons Russians should care about what Americans think about the invasion of Georgia.
Posted by: Anonymous | August 29, 2008 6:20 AM
First, explain BP's mishap in Russia. Then explain why investors should take the risk when BP's experience in Russia is not uncommon.
Posted by: John Wisp | August 29, 2008 7:46 AM
Thanks for a very insightful article and you certainly put a lot into perspective especially as it relates to Iran. Hope there is more like this follow.
Posted by: Jerry George | August 29, 2008 9:53 AM
I want the USA to get out Afghanistan now. I feel it is an unnecessary war and waste of American tax dollars.
If the Russians just stop allowing air flights over their territory to deliver military supplies to NATO troops there, then perhaps the USA will be forced to flee Afghanistan.
Just today the Americans denied killing 90 Afghans, 60 of whom were children during the bombing of a village in that country.
The UN investigators say it was 90 people, the US says ONLY 5 people who are considered to be "collateral damage". ONLY 5. Well, to Americans it appears that "only 5" murdered civilians is A.O.K.
Now,that is a disgusting attitude. Indeed, it makes one ashamed to be a citizen of the USA.
Posted by: Nancy Warren | August 29, 2008 6:54 PM
At one time America was considered a Christian nation, "one nation under God." (At America's peak of productivity, achievement and world respect, by the way). Though the secular humanists have pretty much taken over, there is still a vast population which believes that the word "care" means more than looking out for financial markets and political interests. Your article seems to have missed some perhaps more imortant reasons to "care" for a nation or a people group from a truly "American" perspective, based on the ideals which gave birth to America and gave rise to her aforementioned greatness.
Posted by: Rick Warden | August 29, 2008 8:59 PM
We do care about Russia and thought they were our Friends. But Putin and the Generals still want to do everything opposite of living in the 21st century. Russia arms Syria, Iran, Builds nuke plants for Iran, acts like an enemy, represses free speech and free press and destroys any one opposed to Putin. SOunds to me like Putin and his ilks are afraid of choice and freedom. Got to do something to hang on to the Billions of dollars Putin lined his pockets with I guess.
Act like this is the 21st century for crying out loud Russia.
Posted by: usaguys | August 29, 2008 10:24 PM
To usaguys:
"But Putin and the Generals still want to do everything opposite of living in the 21st century."
Finally a voice of reason on this site. You sir are not afraid to tell it like it is.
Russia,unlike the world's leading democracy does not transport third world people like cargo around the world.
Russia does not build offshore prisons in other countries to then dump the afore mentioned human cargo in the prison and deny them any human rights whilst simultaneously condemning Russia and China and other "rogue states" of human rights violation. Russia,unlike America does not start wars over natural resources,slaughter hundreds of thousands of people, displace millions more innocent people and then get away with it because "the land of the free and the home of the brave" can't do no wrong as far as the international community is concerned.
Russia unlike America does not force its allies to build an extension of its military defence system in their backyard even though 60% of Poles are against the missile defence system and by all rules of democracy the polish government should listen to its people and refuse the installation of the american missile defence system.
Man I yearn for the day Russia follow suit of the world greatest democracy and starts behaving like it's 21 century. Come on Russia get with the times man. USAGUYS once again you are a genius and a true patriot. Uncle Sam will be proud of you.
Before I go I want to share a quote with you man.
"It is absolutely unacceptable what Russia is doing in Georgia. Sovereign countries do not invade sovereign nations in the 21st century."
The words of John McCain. Oh well he is rather old and his memory is rather weak that would explain why he's forgetting that America not only invaded a sovereign nation(IRAQ) in the 21st century in many ways it is still invading it TODAY. America refuses to pull out its troops from Iraq and set a timetable for withdrawal. I can't wait to see war torn Iraq transform effortlessly into a beacon of democracy in the middle east. All thanks to uncle sam. God bless you and your ignorance YANK.
Posted by: Arthur | September 1, 2008 2:51 AM
"We thought the Russians were our friends," suggests usaguys. (And in return for their friendship, we encircled them militarily, my friend?)
Perhaps you'd better take a closer look at the international dictators installed by our own CIA before you criticize "Putin and his Generals" [sic], sir: The U.S. is infamous for supplying small-arms and larger war-making equipment to various military juntas throughout the Western Hemisphere--indeed to uncivilized tyrants across the globe--my short-sighted friend. Our history books are filled with sordid stories of how we've lined our own pockets with money gleaned from governmental indignitaries who suppress human freedom-movements in a host of countries worldwide.
I think the Bible says that if you're going to criticize others, you first need to remove the log from your own eye, usaguys.
Posted by: R.L. | September 2, 2008 7:15 AM
How about ten reasons why the Russian should know that WHEN and not IF the Mullahs are gone, they will not only never be permitted to step a toe inside Iran but that if they EVER think about continuing their filthy manipulations and meddling, the way they have for the last 400 years, every single Iranian will make it so that Russia does not ever think about repeating that mistake again. IF the Russians know what's good for them, they will stop supporting the Mullahs NOW...otherwise,...who can say...
Posted by: Nastaran | September 4, 2008 9:43 PM
First of all I would like to say that I am a strong supporter of Russia, Vladimir Putin & Dmitry Medvedev.
As for the U.S, it needs to watch itself and stop trying to be the "worlds police" and dictate how every other country in the world operates and acts.
Like it or not, the U.S is just one country in the world and their "idea" of how a country should be and which governmental system is the "right" one may not exactly be right.
Why should every country in the world be forced to adopt Americas so called "democracy" and capitalism and then just hand over their natural resources or risk having their cities blown apart by long range missiles.
The U.S likes to run around the world sticking their noses in where they aren't welcome and have no right being.
The U.S coffers are starting to become very depleted with all their unjust wars and are increasingly becoming a larger thorn in everybodys side. General sentiment around the world is turning very negative towards the U.S and they are becoming increasingly disliked even by their closest allies. If they keep going the way they are they will find themselves very alone in the world with a giant red bullseye painted on their foreheads.
I am from Australia, one of Americas closest allies and public opinion here is turning very anti-American. The war in Iraq & Afghanistan, the prison in Guantanamo Bay, the worstening relations with Iran & Russia & the constant unwanted interferances in our government has made Americans very disliked by a very large portion of our people.
The U.S has been throwing its weight around for far too long, and the fact that they only wage war against much weaker nations that either border on or are 3rd world shows a level of arrogance and cowardice not seen anywhere else in the world.
They are in no shape to be able to sustain a war against Russia or China for that matter. They are in a bad way financially and would not be able to rely on their allies as they have in the past. Australia and New Zealand are actively seeking to tighten relations with China and are already beginning to pull away from America and the mess they are attempting to drag us into.
Americans need to wake up and realize what their government is doing. The U.S is not as great as what they think, their international policies are making them into one of the most hated countries in the world. They spew forth all this propaganda about being the land of the free and how great America is, I hate to tell you yanks that contrary to your beliefs, the world doesn't dislike you because they are jealous of what you think you have, its because you run around the world like total jerks trying to force your opinions on everyone you meet. Your government sides with whatever side they think will benifit them the most, not because that side is "good" or in the right. It wasn't long ago that your country was actively supplying Saddam with weapons and training his troops how to fight, and not to mention arming Iran and Afghanistan. Now your government is supposedly attempting to broker peace between Israel and Palestine but you have large groups of your citizens over there actively trying to enflame the situation because they believe that they are fulfilling some prophecy in the Bible that will spark a war between Israel and the Muslim nations and lead to another world war which forshadows the 2nd comming of Christ.
If you want to do something worthwhile that nobody would object too, then how about sending some troops to help the poor people of Zimbabwe that are screaming out for international assistance to save them from the lunatic of a Dictator Robert Mugabe. Oh thats right, theres no oil in Zimbabwe, so your president and all the powerful puppet masters pulling the strings wouldn't inflate their bank accounts much by doing that now would they.
Well I've gone on long enough, so in closing I'd just like to say WAKE UP YANKS!! If you act and stop your government now you may stand a chance at saving your butts in the future, George Washington had a great vision for your country but unfortunately you have strayed off course. If you were to get back on course and become the nation that Washington envisioned then you could actually become a great nation again instead of the hated dictators you are today.
Posted by: Ozzy Guy | September 6, 2008 12:56 PM
This site and articles on Russia are very enlightening!
I finished work last night, came home switched on an international station 'SBS' on the television (Australia) and as I ate dinner, with a glass of red wine watched a documentary on Vladimir Putin, his rise through the ranks of KGB, working in East Berlin, the crumbling of USSR as a communist system, respected but failed presidents of Russia.. and then Putin coming into the lime light taking power, and well overhauling the country.
An amazing insight. Although shadowed by certain issues and events that took place. It would be expected to happen if you wanted to stabilize such a vast country, and to create positive change and movement in a forward direction!
WOW! All that has been done, turned around and established and in the 'pipeline' :) I am fairly amazed and more aware of Russia as a future major player in the world Business, Economy and a global player.
I am an Australian, brought up on the stigma of the 'cold war'. Watching media and old stories with bias towards Russia. I am about to move to Texas, USA.
Reading the above article is insightful and knowing just how much USA and Russia have been assisting one another is positive indeed!
regardless of the methods used to reign in Russia and stablise it, I think Putin has done an amazing job, has exceeded expectations, and obviously is a good strategic planner, businessman, and a real nationalist to his country.
Good on him, if I was Russian, I would be proud! ;)
Moving to USA, I hope Russia and USA to keep good ties together and work as partners in the future. No missile bases in Cuba please, that would send off a media frenzy, and then the stigma of cold war starting all over again!
I personally support the war on world Terrorism, and realize so many factors come into play with the world economics, oil, etc
Prophecies apparently by Nostradamus of impeding doom, which are meant to be occurring now with a build up to world war III in 2012. Also mentioned in the bible of Russians having to ride to war on horses and such.. There is much power in energies and oil.. there is a real world struggle over it.
Let's hope Russia and America work together as partners against radical Islam terrorism, and to prevent future catastrophic events that doesn't seal the fate of doom for the world with WW3 and even the destruction of our planet.
If I knew my money was safe, I would invest in energy and the car market in Russia. Feel you could make a great investment return. Who knows maybe I will be living in Texas, investing in Russia's energies.. crazy but maybe not that crazy after all ;)
Posted by: Matty | September 21, 2008 4:37 PM
It is true! America needs to care about Russia and the rest of the world for that matter. We consume 83% of the worlds resources and we are less that 3% of the worlds population. Diplomacy is the way the truth and the light! Oh....that sounded kinda weird. Okay...I write a political blog in the US focusing on international human rights issues. www.northernvox.com
Posted by: Jerod H. Opsal | November 21, 2008 4:56 PM