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15 Years On
This month’s top story was highly publicized in the West and largely ignored in Russia: the fifteenth anniversary of the failed coup that could have returned Russia to hard-line communism. The event and its significance were widely debated in the western press by scholars and authorities while in Russia most people were not even aware of the anniversary and held no opinion of the event when asked about it. A small, informal gathering occurred on Red Square, seemingly mostly composed of those who had participated in the events of 1991: about 100 communists denouncing the event, and a handful of others celebrating it.
Political Parties to be Fewer, Stronger
In the run-up to the 2008 presidential elections, the political landscape of Russia is shifting drastically. The Party of Life, Rodina (another political party), and the Pensioners' Party have merged into one political force that some predict may soon be able to compete with United Russia, Russia’s present party-of-power. More mergers may be on the way. The Agrarians may soon merge with some other party and United Russia may merge with the United Industrial Party. Many speculate the recent activity has been engineered by President Putin himself, though why is contested. Some contend the move is to help make Russian domestic politics more dynamic and democratic. Others contend this move makes politics more predictable and controllable. In related news, both the Russian and the Western media are still rife with speculation as to who Putin’s chosen successor will be. Given the recent mergers and official Kremlin statements saying that Russia needs fewer and stronger political parties, a new theory has begun to emerge: that Putin may field two candidates (Defense Minister S. Ivanov and Prime Minister D. Medvedev are the two likeliest) and let the voters decide which gets elected. Despite all this activity and media coverage, Russian voters remain largely apathetic towards politics.
Paris Club Debt Repaid
Over July-Aug, Russia repaid the 15 billion USD that it owed to the Paris Club. The Russian government officially boasted that this move would save Russia twelve billion USD in interest payments and make Russia more attractive to investors (Russia now has one of the world’s lowest rates of government debt). Critics have pointed out that Russia desperately needs to make social investments, an not necessarily be so concerned with early debt repayment. Almost half of Russia’s grade schools lack running water and sewage. Many hospitals do not have sewage. Roads need to be rebuilt, airports improved, and the wages of doctors, teachers, nurses, police officers, military generals, and nearly all other state employees are below the poverty line.
Hermitage Looted
221 historical pieces were discovered missing at the Hermitage, apparently stolen by a former custodian who has since died. The custodian’s widower, son, and a St. Petersburg art dealer have been arrested as accomplices. The Hermitage received millions of dollars in aid from foreign museums and organizations after the fall of the USSR, in part to upgrade its security systems. It had also received a massive grant from IBM to conduct a full inventory and build an electronic database. However, the security systems are often manned by poorly trained guards and the inventory has, even after some seven years, only covered a small fraction of the Hermitage’s massive collection. Many of the pieces have now been recovered but the event has triggered moves to update and possibly “purge” museum management and security in Russia. This includes a surprising (though hopefully improbable) suggestion to privatize the museums.
Airline Crashes in Ukraine
A Russian airliner, operated by Pulkovo Airlines, crashed in Ukraine on August 22nd, 2006. The cause is as yet unknown, but it is known that lightning and a cyclone were present in the area near where the plane caught fire before it crashed. National days of mourning have been declared in Ukraine and Russia and the crash has sparked a rare moment of open friendship between the two countries and their leaders. All 170 passengers, including 45 children, died.
Organized Skinheads?
A bomb blast at the Cherkizovsky marketplace, one of Moscow’s largest and most multi-ethnic killed 10 people and wounded about 50. Three suspects are currently in custody, including two that were captured by bystanders at the scene, who are reportedly members of a racist organization. One of them is a chemistry student said to be potentially responsible for creating the one kilogram of TNT used. The initial exposion caused a nearby gas tank in a café to explode, and the combined explosions cause the roof of the market to collapse. Police say that this is the first instance of planned and coordinated racially-motivated attack in Russia.
Yukos Officially Bankrupt
A Moscow judge has declared Yukos bankrupt and mandated that its assets be sold to cover its remaining debts. The CEO of Yukos, Steven Theede, who resigned shortly before the ruling has argued that the company is not, in fact, bankrupt, and the findings of the audit and the ruling to dismember the oil company are politically motivated. The embattled founder and former CEO, Mikhail Khudorkovsky, remains behind bars on tax charges he alleges were fabricated to keep him from pursuing political office. While the West seems to have acquiesced to the disputed charges, many analysts insist that the final destruction of Yukos confirms that private property in Russia is unstable and dependent on the whims of the Kremlin.
US-Russia Spat Goes Economic
The US has imposed sanctions on two Russian companies, state-arms exporter Rosoboronexport and aircraft maker Sukhoi, for allegedly selling military equipment to Iran. While the sanctions will apparently not affect existing contracts between these Russian companies and American companies, it has caused a political outrage in Russia. Government representatives have implied that American companies could be shunned from future state contracts or bilateral cooperation in developing new technologies for metals like titanium, for which the Russian metals giant VSMPO-Avisma controls 30% of the world market. Continued disagreement over the Russia’s entry to the WTO has also led Russia to threaten the US with restrictions on the importation of chicken products. Russia receives 40% of its yearly consumption of chicken from the US and the move could cost US poultry farmers millions.
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