The Russian Way

{Editor's Note: I just flew back in from a weekend trip to Boston and boy are my arms tired...wait that's terrible...but I did just get back from Boston so PC should be returning to its normal programming schedule.}

My pappy once said, wars of the future won't be fought with guns or by seizing land. Wars of the future will be fought with money as he who dies with the most toys wins. Well as the Iraqi's keep reminding us, we're not totally done with traditional combat just yet but a quick survey of international news shows us that economic partnerships and opportunity are more and more becoming the most powerful weapons of choice.

First there's this story:

Russia becoming increasingly attractive for businessmen

Russia is looking at diversifying its economy so as to be less dependent on the export of natural resources.

And with increasing oil prices and a robust economy, businessmen say Russia is becoming an attractive place to do business.

As the world's second largest oil producer after Saudi Arabia, Russia's economic performance has been closely tied to oil prices.

Increasing oil prices, along with seven consecutive years of economic growth, have spurred demand for consumer goods in the country.

With a population of 10 million in Moscow and 145 million in all of Russia, businessmen say the country holds tremendous business opportunities, especially with an emerging middle class.

Russians are the second largest drinkers of instant coffee, after the Americans.

Singapore firm Master Beverage, which is selling its 3-in-1 coffee mix in Russia, aims to enlarge its share of the market. (More)

American businesses are primed and ready to start dumping oodles of cash into Russia's economy and to keep the dough rolling in, Russian President Vladimir Putin has vowed to make stability one of the pillar's Russian society. At this juncture he isn't seeking a third term but he has vowed to make sure that the country does not descend into chaos during the next transition of power. That says to me to that the Kremlin will be sticking their bear hands in the voting boxes but, that's elections for you. Just ask those in Ohio.

The flipside to opening Russia for Western capital is that theoretically the money they take in can be reinvested in other nations that are super friendly to them, such as Iran and Syria.

Iran Says Contracts With Russia Could Reach $10Bln

The chairman of the Iranian parliament’s (Majlis) Energy Committee, Kamal Daneshyar, has said industrial contracts between Iran and Russia could reach $10 billion per year if Moscow participates in various oil projects and more construction of nuclear power plants in Iran, the Tehran Times daily reports.

In a meeting with Yuri Savelyey, head of the Iran-Russia parliamentary friendship group, Daneshyar noted that the ground is currently set for the expansion of all-out ties between the two countries.

“Iran and Russia, as two important energy abundant countries, have great potential for further cooperation and can benefit from the oil and gas markets through encouraging joint ventures between Iranian and Russian oil and gas companies,” he stressed.

Welcoming Russia’s proposal to expand technological cooperation with Iran particularly in the field of oil extraction and plans to optimize oil exploitation systems, Daneshyar added that the parliament supports efforts to deepen scientific, technical and commercial ties between the two countries.

Savelyey, for his part, described scientific and industrial ties as very important, stressing that the countries’ parliaments should make efforts to improve the level of ties and make joint projects feasible.

Of course we know that this is significant because the US, UK and Israel are categorically accusing Iran of attempting to build nuclear weapons under the guise of a civilian nuclear power program. As we've seen in Pakistan with AQ Khan, just because the government of a nuclear nation isn't directly trading in WMD technology, doesn't mean some othe aspiring anarchist trying to make a buck within the government won't. Corruption in the Russian military makes anything you hear about the US look like a Sunday picnic by comparison (see forthcoming review of Kremlin Rising). It's not unlikely that somebody is Russia is going to get froggy and give the mullahs just what they're looking for. However, because of their strong economic ties, I believe the West is pretty much disarmed from stopping this alliance and with that any transfers of technology.

And speaking of alliances:

Russia says it's not building Asian military alliance

Russia's Defence Minister Sergei Ivanov rejected allegations that recent joint manoeuvres with Chinese and Indian troops were intended to pave the way for a new military alliance in Asia, according to an interview published Tuesday.

The August exercise involving Russian and Chinese troops and last month's joint drills of Russian and Indian forces were intended to practice joint action against international terrorists and to showcase state-of-the art Russian weapons to traditional customers, Mr. Ivanov told the daily Izvestia.

The exercises “didn't threaten interests of any third nation and didn't signal an intention to create a new military-political bloc in the region,” Mr. Ivanov said.

The eight-day manoeuvres with 7,000 Chinese troops and 1,800 Russians underscored growing military ties between the former Cold War enemies, motivated by their common unease with U.S. dominance in world affairs. (More)

Right...of course it's not a military alliance...and I'm not sitting here in my underpants blogging...

Anywho, both China and Russia want the US out of Asia, both physically and diplomatically. All they want is your tourist and investment money. I can't say I blame officials in Moscow and Beijing for that considering the fact that there are those on Capitol Hill who still very much want to fight the Cold War. Even if nary a shot is fired at the West from this Pan-Asian military connection, the fact that it does indeed exist is enough to thwart any attempt of the US to further influence or mold Greater Asia (Middle East to SE Asia) to the singular benefit of US interests.

One example of this comes out of the Syria-UN battle going on over Rafik Hariri's assassination.

Russia defends its UN stance on Syria

Russia on Tuesday defended its stance on Syria at the United Nations, saying its action at the Security Council had spared Damascus the threat of sanctions and being linked, without proof, with terrorist activities.

The Security Council voted unanimously on Monday for a resolution ordering Syria to cooperate fully with a U.N. investigation of the assassination of former Lebanese Prime Minister Rafik al-Hariri or face possible "further action."

But unanimity was achieved only after the United States, France and Britain, sponsors of the resolution, agreed at the last minute to drop an explicit threat of economic sanctions against Syria. Otherwise Russia, China and Algeria may have abstained, diplomats said.

A statement by the Russian Foreign Ministry said: "Thanks to the efforts of the Russian side and other delegations politicised stances, that had nothing to do with the investigation of Hariri's death, were withdrawn."

"The threat of automatic sanctions against Syria as a state was removed. Attempts to accuse Damascus, without proof, of involvement in terrorist activities were rejected," it said.

Russia, a close ally of Syria since Cold War times, said the Security Council resolution, as passed, opened the way for "broad and effective dialogue of the Syrian side with international investigators". (More)

If there is conclusive proof out there that links Syrian officials explicitly to the death of Hariri then there won't be much more the Russians can do to save the Assad regime. Courting Western capitol is a tenuous game and one doesn't win the prize acting like Kruschev, banging shoes on tables and what not. No, Russia has to walk the line, protecting its allies so long as they don't do something monumentally stupid (like nuke Israel, Iran you know where I'm looking). For now, that is the Russian way.