Friday, June 16, 2006


G8 Summit outcome in 2006?

The outcome of next month's G8 summit is guessed today by the Center for Strategic and International Studies in Washington. Moscow Times

Other than stepped-up rhetoric, it is unlikely that Western partners will have much influence over this agenda. . . In the energy sector, Russia retains the upper hand in decisions about how much, to whom and how it is going to deliver its natural resources. The agreement and subsequent start of construction of the North European Gas Pipeline marked the moment when Russia decided to use natural resources for political ends. The North European Gas Pipeline kills two birds with one stone: It makes the European Union even more dependent on Russian energy resources and East European countries less energy secure. It also shows former communist countries such as Poland that their anti-Russian rhetoric has a price.

Russia's right to determine its own market-economy rules, whether regarding energy or other forms of trade, is also likely to be restated. Putin's strong views on economic management from above were reiterated in his state-of-the-nation address in May. He attributed the growth and importance of the energy sector to the state's planning and management, not to market forces. It is unlikely that he will change his position; in fact, this philosophy explains the centralization of economic power witnessed under his leadership.
Comments: Post a Comment

<< Home

This page is powered by Blogger. Isn't yours?