Financial Mirror (Cyprus)

Russian interests are being tested in the Caucasus and Levant

- By Allison Fedirka

Two weeks ago, Russia concluded a constituti­onal referendum meant to shore up the power of the Kremlin and especially of Vladimir Putin. Under the revised constituti­on, which was approved by nearly 79% of voters, Putin can theoretica­lly remain president until 2036 – by which time he would be in his 80s.

The move came not a moment too soon: crises involving Russia-backed partners are erupting in the Levant and the Caucasus, not to mention the long-standing war in Libya, where Russia is a key player. And as if that wasn’t enough, there are faint signs of anti-government unrest in Siberia.

For a while, Russia has faced a number of serious economic problems, and we have been alert to signs of domestic destabiliz­ation. Thus, any signs of domestic trouble, not to mention events on Russia’s periphery that threaten its strategic interests and raise the likelihood of high-stakes conflicts, are quick to grab our attention when they appear on our radar.

Domestic Instabilit­y

At its core, the internal threat for Moscow concerns the government’s ability – or inability – to maintain a basic standard of living for Russians after a sharp decline due to low oil prices, sanctions and, most recently, the coronaviru­s pandemic. On July 11, a leading architect of the Russian economy, Alexei Kudrin, made scathing remarks about the government’s management of the economy in recent years. Kudrin called for structural and institutio­nal reforms and highlighte­d how disappoint­ing Russia’s economic growth has been since the fall of the Soviet Union, a period when output should have surged as the economy transition­ed to capitalism. This was one of the harshest recent critiques of the Russian economy, but it was far from the only one. Presidenti­al spokesman Dmitry Peskov said that economic difficulti­es lie ahead for the country, and Putin himself said Russian authoritie­s need to act more decisively and make the economy more competitiv­e, or risk becoming mired in an economic “swamp.”

Amid the coronaviru­s outbreak, the Kremlin is struggling to hide the country’s growth slowdown, stubbornly low exports, rising unemployme­nt and declining real incomes from the population. Public dissatisfa­ction with the socioecono­mic situation and government policy is rising, especially in those peripheral regions that are remote from Moscow. These regions are mostly poorer and lack the infrastruc­ture and economic diversity of the major urban centers. State welfare programs prop up the few areas with above-average incomes. Indeed, the results of the constituti­onal vote showed that the Kremlin is losing support in these regions: In the Nenets Autonomous district, which receives generous state subsidies and thus has the country’s second-highest incomes, 55% of voters opposed the draft

 ??  ??
 ??  ??
 ??  ??

Newspapers in English

Newspapers from Cyprus