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The Financial Times, May 21, 2002

Putin's wager

By Robert Cottrell

Russia and the US will be doing everything possible to ensure that the May 23-26 summit between George W. Bush and Vladimir Putin looks good and sounds good. On the Russian side this will be a relatively easy task, since the government controls the national television channels from which the great majority of Russians will get their information about the meetings in Moscow and St Petersburg.

The difficult bit for Mr Putin will come when the speeches are over, the photo-opportunities have been exhausted and the honoured guest has departed. Will the summit have done enough to reassure Mr Putin himself, and to persuade the sceptics around him, that the boldly pro-western foreign policy he has pursued since September 11 is the right one for Russia?

For the moment the scepticism is muted. Mr Putin's foreign policy has few high-level critics. He is a powerful and popular president and few people want to go against him openly. More striking is the fact that his policy has so few high-level enthusiasts - particularly in the centrist, conservative and military constituencies that are usually viewed as loyal to him. Grigory Yavlinsky, a leading liberal politician and a backer of the new foreign policy, said recently that Mr Putin's pro-western gestures since September 11 had been made "despite the position and opinion of virtually all the presidential circle".

Such gestures have included Mr Putin's acceptance of US troops in central Asia and Georgia, his closing of Russian military facilities in Cuba and Vietnam and his softer line on US missile defence and Nato enlargement.

To conservative Russians steeped in the geopolitics and confrontational logic of Communist times, these have been big, rash concessions. For this school, personified by Leonid Ivashov, a retired general who has become one of Mr Putin's few public critics, such concessions make no sense unless matched by clear gains by Russia from the west - and perhaps not even then.

But for Mr Putin, the idea of trading favours with the US - the "shopping list" approach, as one adviser dismissively puts it - has become outdated. Instead, the argument goes, the US and Russia now have a common interest in a stable and peaceful world. So anything that helps them work together benefits everyone.

The unstated continuation of this same argument is that Russia views US unilateralism as one of the biggest potential threats to strategic stability. By drawing closer to the US, Mr Putin hopes to make the US more sensitive to Russian views and interests.

Given the virtues of this argument and the confidence Mr Putin will doubtless be projecting this week, it may seem odd to suggest that even he may have his worries about betting so heavily on the US. But there have been signs of doubt.

He apparently thought it too big a risk, for example, to put any praise of the US or any lengthy defence of his new foreign policy into his annual policy speech to the Russian parliament last month. Instead he insisted Russian policy was "purely pragmatic". Nor has he made any effort to change his defence minister, Sergei Ivanov, or his foreign minister, Igor Ivanov, even though both men have appeared uncomfortable at times with the speed at which policy has tilted westward. Mr Putin may have no better replacements to hand. But, equally, he may be leaving his ministers in place in case he does decide he has gone too far, too fast, and wants to shift back to a more assertive or just a more ambiguous foreign policy.

Whatever conclusions Mr Putin himself draws from the coming summit, it is unlikely the event will produce much to win over the sceptics. In concrete terms, the main formal business will be the signing of an arms-control treaty, the main points of which were announced last week. The treaty is being presented as a radical reduction in both sides' nuclear arsenals, from 6,000-7,000 nuclear warheads to 1,700-2,200, over 10 years. But the US has insisted on the freedom to store surplus warheads rather than to destroy them, making the treaty more about the deployment than the reduction of weapons.

With this comes the risk that Russia may also decide to store warheads rather than destroy them, in stockpiles that will be worse maintained and worse guarded than its deployed weapons. The US reputedly wants to offset this danger by arranging more funding from Group of Seven countries for Russia to destroy weapons and secure stockpiles.

Drawing the US into an arms treaty at all may count as a gain for Russia, given the early US preference for unilateral action. But the US seems to have agreed to a treaty only after dictating most of its terms. "The Russians got a treaty; we got everything else," says Ivo Daalder, a foreign policy expert at the Brookings Institution in Washington.

In addition to the treaty, the summit is likely to bring a political declaration in which Mr Putin and Mr Bush will insist their countries have put past mistrust and enmity behind them.

Missile defence is likely to be dealt with in this declaration. According to one diplomatic source, the US hopes to overcome Russia's lingering reservations about its national programme by promising to share information and to look for ways of working jointly on some technology.

There will also be Russia's new, closer relationship with Nato to mark. A summit in Rome on May 28 is due to approve the creation of a new council on which Russia and the Nato countries will sit as equals to discuss a limited range of security issues.

On the economic front, the summit may be the occasion for Mr Bush to indicate that the US will at last classify Russia as a "market economy". This would give the summit a psychological boost and, once done, would give Russian exporters slightly more protection against US anti-dumping actions.

Mr Bush is also likely to repeat his support for Russia's entry into the World Trade Organisation and to emphasise the west's keenness to buy oil and gas from Russia.

All of this should put a smile on Mr Putin's face while the summit is under way. But the following morning it may not seem quite the watershed in relations with the US that he needs.

For all the optimistic language about US-Russian political partnership, specific disagreements will remain. The biggest may be over relations with Iran. The US believes Russia is helping Iran in nuclear weapons and ballistic missile programmes. Russia denies this flatly - and denies that Iran even poses a threat to the west. As proliferation rises to the top of the US foreign policy agenda, so does the scope for a big dispute with Russia over Iran.

It would greatly help Mr Putin's position if he could point to some big economic benefits flowing quickly to Russia from closer ties with the west. But whereas Mr Bush is likely to talk encouragingly about Russia's economic potential, the US still sees foreign investment as something that Russia has to attract, not something governments can provide. Declarations of intent from more big US companies to invest in Russia would help here.

At worst, if Russia's pro-western foreign policy loses momentum and if the sceptics quietly declare victory, that will not threaten Mr Putin's presidency as such. He is too popular - and there is still a big consensus behind his domestic policies.

The danger is more of a drift back to the way things often were under Boris Yeltsin, Mr Putin's predecessor. The army, the security services, the atomic energy industry, the arms exporters, the oil companies, the regional governments, even the railways pursued whatever overseas dealings and adventures served their own short-term interests. Russia had not one foreign policy but many.

A return to that confusion would not end Mr Putin's presidency. But it would undermine his - and Russia's - power.

See also:
the origainal at http://news.ft.com
Russia-US Relations

The Financial Times, May 21, 2002

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