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Russian builds its new empire with finance, not fear

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  • Russian builds its new empire with finance, not fear

    Russian builds its new empire with finance, not fear

    Times Online
    February 5, 2009


    From Belarus to the Caucasus and Central Asia, Russian power and
    influence is at its greatest height since the Soviet collapse


    Tony Halpin in Moscow

    Whatever the economic calamities ahead, this year is proving an
    excellent one for the political project of forging a new Russian
    empire.

    A plethora initiatives from the of Kremlin is binding most of Russia's
    former Soviet satellites ever more tightly to Moscow. Only yesterday
    the Kremlin created a rapid reaction force with six of the states and
    an economic bailout fund with four of them.

    The reaction force will be under central command, which will
    undoubtedly be in Moscow since Russia is providing most of the troops.
    Soldiers from Belarus, Armenia, Kazakhstan, Kyrgyzstan, Tajikistan and
    Uzbekistan will once again learn to take orders in Russian.

    Russia is also putting up $7.5 billion (£5.19 billion) of a $10 billion
    mutual rescue fund it established with Belarus, Kazakhstan, Uzbekistan
    and Kyrgyzstan. Despite growing hardship for millions of Russians at
    home, the Kremlin also offered to throw billions of roubles at Belarus
    after both countries agreed to form a joint air defence system pointed
    at Europe.


    He who pays the piper calls the tune as the United States learned
    painfully on Tuesday from President Bakiyev of Kyrgyzstan, who served
    notice t
    o quit a key airbase for supplying Nato forces in Afghanistan.
    A gleeful Kremlin denied any link between that decision and the $2.15
    billion in loans and aid it had given the impoverished republic just
    moments earlier.

    Washington is flirting with Tajikistan as another potential base for
    Afghan supplies. President Rakhmon, enjoying the attention, apparently
    felt emboldened enough to cancel his visit to Moscow initially, but
    quickly thought better of it.

    Having squeezed the US military out of Central Asia, Russia is
    determined to prevent the European Union becoming a rival for energy in
    its backyard. The EU is desperate to break Russia's grip on gas by
    securing new supplies from the region through the Caucasus.

    President Medvedev beat them to Uzbekistan where his Uzbek counterpart,
    Islam Karimov, pledged last month to double supplies to Russia, adding
    reassuringly that Uzbekistan "sells gas to Russia and to Russia only".

    Gas-rich Turkmenistan offers hope but only if the Caucasus remains open
    as a conduit for pipelines. Since the war with Georgia last summer and
    the de facto annexation of Abkhazia and South Ossetia, Russia has
    returned to the region with a bang.

    Armenia is little more than a vassal state, having sold most of its
    economic infrastructure to Russian companies. The "frozen conflict"
    between Armenia and neighbouring Azerbaijan over the disputed territory
    of Nagorno-Karabakh gives the Kremlin further leverage.
    0D
    Moscow denied Azeri claims last month that it had funnelled arms worth
    $800 million to Armenia, which is host to a Russian military base. But
    both sides understand that Russia could tip the balance of power in
    either direction if it chooses.

    From Belarus to the Caucasus and Central Asia, Russian power and
    influence is now at its greatest height since the Soviet collapse.
    While Kremlin ruled its old empire with fear, it is building its new
    one on finance.

    Only Ukraine remains beyond Moscow's so-called "sphere of influence"
    despite the recent bruising gas war. Presidential elections are just 11
    months away, however, offering the Kremlin empire-builders a great
    opportunity to avenge the setback of the pro-western Orange revolution.
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