Russia political pandemic update: Russia-West stand-off to intensify

RUSSIA ECONOMICS - Report 02 Aug 2022 by Evgeny Gavrilenkov and Alexander Kudrin

It looks as though after more than five months of the "special military operation" in Ukraine, more time is needed either to sort out issues associated with the everlasting dispute between Russia and the West (the US in particular) or to just cut off relations with the “collective West.” The Russian ruling elite saw geopolitical developments after 2014 as an existential threat and, therefore, explained its own behavior as pre-emptive, i.e., in line with the principle – “If you realize that you will be hit, then hit them first." What is seen in the West as an illegitimate and unprovoked invasion of Ukraine is considered by the Kremlin as the only possible means it had to defend itself from Ukraine’s NATO membership, as the US and NATO didn’t react to Russia’s written concerns on security issues that it had formally expressed in the fall of 2021. Therefore, the recent geopolitical developments have their logic, which the Kremlin sees to be right, and the other side sees completely differently. As Russia becomes increasingly anti-Western, and similarly, the Western societies turn anti-Russian, there is almost no room for any kind of reconciliation between the two civilizations. The situation is increasingly turning into a zero-sum game, which has never been good in world history. Unless things really turn very bad, the Russian authorities, backed by popular support from the majority of the nation, will continue to redesign the country’s economy so that it can become increasingly independent from the Western financial system, as well as from trade with Europe, which used to be Russia’s major trade partner.

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