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  • Marching Through Red Square

    MARCHING THROUGH RED SQUARE

    >From The Economist print edition
    May 20th 2010

    A pragmatic new foreign policy may be a plus, but it does not mean
    that Russia is ready to make any changes at home

    ON MAY 9th soldiers from NATO countries, including America, Britain
    and Poland, marched across Red Square in Russia's Victory Day parade.

    Beethoven's "Ode to Joy", the anthem of the European Union, was
    played along with the Soviet-era national anthem. Military parades
    are symbolic and the Kremlin has long put Russia's wartime victory
    at the centre of its post-Soviet identity. But this parade was meant
    to project the image of a self-confident, powerful country seeking
    better relations with the West.

    A year ago it symbolised Russia's victory over Georgia and its
    American backers. These days Dmitry Rogozin, Russia's ambassador to
    NATO, talks of common values and the trustworthiness of America. And
    Radek Sikorski, the Polish foreign minister, praises the openness of
    the Kremlin in investigating the Smolensk air crash and says Poland
    is an ally.

    Russia's foreign policy has changed-and the change goes beyond
    rhetoric.

    After 40 years of tedious talks, Russia has signed a maritime border
    agreement with Norway. It is using soft power in Ukraine. Perhaps
    most significant is the improvement in relations with Poland,
    a centuries-old irritant. After years of exploiting differences
    between old and new members of the European Union, Vladimir Putin,
    Russia's prime minister, has realised that EU solidarity is more than
    mere rhetoric.

    Germany's Angela Merkel made clear two years ago that, if Russia
    wanted better relations with the EU, it had to mend fences with
    Poland. That required a shift in the Kremlin's historical discourse
    and its taste for Stalin. Mr Putin has been remarkably flexible. Last
    year he went to Gdansk to mark the start of the war; this year he
    knelt to commemorate victims of the Katyn massacre ordered by Stalin
    in 1940. The importance of Poland in the Kremlin's eyes has grown
    along with the prospects of shale gas in the country. Gazprom is now
    said to be sweet-talking the Poles into a long-term gas contract. In
    the contest between gas interests and Stalin, Stalin loses.

    There is no point sulking or being belligerent with the West, the
    Kremlin seems to have decided. As Mr Putin has said, Russia should
    present a smiling face to the world. A smile, however, does not
    alter nature; the Russian shift has occurred without significant
    change inside the country. Russia has not become less corrupt or
    more democratic. Russian troops remain in part of Georgia; Mikhail
    Khodorkovsky, the former Yukos boss, is still in jail.

    Russia has not abandoned its claim to a privileged interest in the
    neighbourhood.

    Dmitry Trenin, head of the Moscow Carnegie Centre, argues that
    Russian foreign policy under Mr Putin has always been more defensive
    than offensive.

    It is shaped more by vested financial and political interests than by
    ideology or geopolitics. Russia's return to business as usual was made
    easier by Barack Obama's reset policy (seen in Moscow as an admission
    of past mistakes) and the shelving of NATO expansion. The financial
    crisis has also shown up Russia's vulnerability.

    After a decade of rising oil prices and budget surpluses, Russia
    is running a deficit and looking to borrow money. The crisis has
    exploded a model of economic growth that relied on rising oil and gas
    prices. To keep its grip on power, the Kremlin has now come up with
    a different idea: modernisation to renew the Russian economy without
    changing its political system.

    Russia's new pragmatism is set out in a leaked foreign-ministry
    paper. The document is not an example of liberalism and openness,
    but it argues that Russia must form modernisation alliances with
    leading countries and attract Western technologies while advancing
    the interests of Russian companies abroad. In a sign of desperation,
    even Armenia is seen as a channel for the transfer of technology to
    Russia. Russia's wish list includes visa-free travel, the adoption
    of EU standards and membership of the World Trade Organisation and
    the OECD rich-country club.

    The EU's attitude has been cautious and more realistic than many
    suppose.

    Progress in EU-Russia relations has been painfully slow. Barring
    a few appeasers, most governments in Europe, including Germany's,
    have no illusions left about Mr Putin's Russia: its weak property
    rights, high corruption and the symbiosis of state power with
    private financial interests. Yet most EU governments also embrace
    the idea of modernisation. A large emerging market with a huge
    demand for technological catch-up serves the interests of European
    companies. Adopting EU standards would also curb Russia's ability
    to impose arbitrary trade sanctions. And many see Russia's slogan of
    modernisation as a chance, however feeble, to push for its political
    transformation.

    Talk of modernisation has not removed basic disagreements. Mr
    Medvedev's November proposal for a new European security treaty
    focuses on hard power and implies a veto on NATO expansion which
    is unpalatable to the West. It is being discussed as part of the
    so-called Corfu process, but one European politician likens it to a
    perpetuum mobile that will go on forever without reaching a conclusion.

    > > From Russia's viewpoint, Mr Medvedev's scheme has helped to divert
    > > attention from Georgia. "[They] stopped discussing Georgia and
    started discussing this proposal," Mr Rogozin says. Russia has kept
    its military presence not just in Georgia but in other former Soviet
    republics. It has just agreed an extension of the Black Sea fleet's
    lease in Sebastopol, in Ukraine.

    As the foreign-ministry document asserts, Russia needs to consolidate
    the former Soviet space by, for example, pushing the customs union
    between Russia, Belarus and Kazakhstan. Brussels has warned Ukraine
    that, were it to join this customs union, it would jeopardise its
    partnership with the EU.

    Russia itself sees the EU as a source of innovation, but not a model
    for democracy. Talk of common values and the rule of law causes
    heartburn among such Russian officials as Vladimir Chizhov, a smiling
    and impenetrable ambassador to the EU. Asked what Russia wants from
    the EU, he starts with what it does not want: to have it as a bossy
    patron come to modernise Russia. "We see it as a purely utilitarian
    initiative," he says.

    The main problem is not that Russia defends its own values (it has few)
    but that its leaders think the values gap does not exist and the West
    is hypocritical to talk of it. Unlike Mikhail Gorbachev's policy of
    openness, which was inseparable from domestic liberalisation, Russia's
    new detente implies no political change at home. The foreign-ministry
    document talks of the need to project the image of Russia as a
    democratic state with a socially oriented market economy-but says
    nothing about the need actually to become one. Russia's rapprochement
    is fragile since it hinges on an idea of modernisation that is unlikely
    to succeed without liberalisation. The risk is that when modernisation
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