A BBC journalist this morning informs us that the death in highly suspicious circumstances of a former Russian KGB official could lead to a “potential diplomatic incident” between Britain and Russia.
You think?
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A BBC journalist this morning informs us that the death in highly suspicious circumstances of a former Russian KGB official could lead to a “potential diplomatic incident” between Britain and Russia. You think? I must admit that the stuff about the Russian poisoning story is reminding me of when the Cold War was pretty chilly. It is also, its perverse sort of way, a reminder of what the world was like when a former naval officer, journalist and stockbroker began to churn out thrillers at his Jamaican holiday home back in 1953. Casino Royale, the first and one of the best James Bond adventures has been turned into a film that yours truly will be seeing on Thursday night. I admit that when Daniel Craig was first cast in the role, I had my doubts, but the reviews so far have been mostly favourable. Craig, even though he looks like a well-groomed football hooligan, seems to have conveyed the darker side of Fleming’s creation, showing that Bond is a bit more than a dude in a suit, as well as keep most of the bits that cinema viewers have come to expect, such as amazing stunts, special effects and the odd witty one-liner. Putin, a former member of the KGB, became the leader of Russia in 1999, eight years after the fall of the USSR. Would anyone have considered it acceptable for a former member of the Gestapo to be leading West Germany in 1953? The attempt assassination in London of a critic of Vladimir Putin, Alexander Litvinenko, almost certainly carried out by the Russian intelligence services, highlights that it is long past time to stop treating Russia as ‘just another European government’. But there is another rather interesting twist to this story that I did not spot in the media yesterday, courtesy of the UKIP. Update: sadly it is not longer an ‘attempted’ assassination. The senior Russian central bank official who was shot dead this week was a prominent campaigner against money-laundering. No matter what one thinks of some of the more oppressive laws against money transfers – as a libertarian, I find a lot of such laws counter-productive and intrusive of privacy – there is no doubt that Russia has a terrible reputation for financial skulduggery. By going against financial hoodlums, it sadly appears this guy signed his death warrant. Funnily enough, this story does not appear to have caused much of a stir outside the business sections and some of the foreign bits of the press. I find that a bit odd, if not chilling. A senior central bank official gets murdered. Imagine the reaction if a top official working for the Bank of England or the Fed got killed. Russia has a long, long way to go before it becomes a place in which civilised people will want to do business. While rootling around yesterday for links concerning the Arcelor story, which has a Russian angle because Russians were also trying to take Arcelor over, I came across this story, from Mosnews.com (whatever that is):
This has got to be the perfect Samizdata news story. It has drugs, scientific progress, lots of US foreign policy angles, massive opportunities to disagree about its truth, implications, etc. It has everything we want. My pennyworth is that, in the event that there is any truth to this story (which I do not assume), then this may be only the first step in a new drugs war, this time between scientists trying to develop and improve this Just Say No cannabis, and scientists working to strengthen the ability of your real, drug sodden cannabis to resist the attentions of Just Say No cannabis, and if anything to become even more drug sodden. Sort of like red squirrels versus grey squirrels but with gazillions of dollars to back each colour of squirrel against the other colour of squirrel. Far out, man. Putin is sending shivers through the world with his attempts to strong-arm the Ukraine back into the Kremlin’s zone of influence and no doubt more and more column inches are going to be directed at this emerging crisis. Yet it seems to me pretty obvious that that Russia, circa 2006, is almost hilariously weak to be throwing its weight around. The Russian economy is pathetic for a would-be imperial seat of power, running about half the size of India based on purchasing power. Its GDP per capita is about the same as such mighty global players as South Africa, Mexico and Trinidad. The antics of its kleptocratic and economically illiterate former KGB leadership makes the place less attractive to investors by the day. Frankly you would have to be crazy to put your money in Moscow. Even its military has repeatedly demonstrated that it is inept and corrupt in equal measure. All this talk of Russia’s importance is vastly over-stated. In short, Russia needs to be treated with respect, but only the sort of respect you give a drunk with a knife as he staggers down the street. The price of gas sold to the Ukraine is currently below market levels but the cackhanded way Russia has handled this makes it pretty obvious that markets are the last thing on Putin’s mind. But perhaps he is to be applauded for massively strengthening the hand of pro-nuclear power advocates with his preposterous posturing. Even the turgid political class of western and eastern Europe can now have few illusions that it makes sense to rely on an unstable place with delusions of grandeur for their energy supplies. Methinks it might be time for those with some spare dosh to invest some of it in nuclear energy stocks. It is splendid news that the trapped Russian submariners have been rescued from the dreadful fate that overtook the Kursk a few years ago. Fortunately the Russians did not stand on their pride as they did the last time they suffered a sub-aquatic disaster. This time they seem to have fairly quickly accepted the help that was offered to them by many navies around the world. Although the Royal Navy’s robotic sub was the prime mover of this rescue, it was really a very international effort with the USA and Japan providing vital assistance in the rescue. Hopefully this more enlightened approach by the Russian government and military authorities admitting they could not effect the rescue themselves is a sign of institutional change at the top, but the cynic in me wonders if it was not just a domestic political calculation that the embarrassment at having to have their submariners rescued by Western naval personnel represented less political damage than another scene on the television of angry family members on the dockside grieving over their dead sons. Yet another Russian firm, Rambler Media, a search engine, has listed on the small-cap AIM stock market in London, preferring to hold its IPO in Britain rather than back home in Mother Russia. The story in the Daily Telegraph here gives a fairly sketchy outline of the listing but neglects to explore a possible broader reason for the listing. Let me have a stab at it. Russian entrepreneurs are turning their backs on their home turf because they are worried about the possibility of their wealth being grabbed by the Russian state. Political risk is driving many Russian-owned firms to run their business affairs offshore. Perhaps one should call this the “Yukos Effect.” In many respects the seizure of the oil firm’s assets by Putin’s Russian state is not quite the terrible smash-and-grab raid portrayed in some quarters – its owner was a decidely shady character – but it has certainly put a big chill into investors, pushing Russian shares down compared with their emerging market peers. Expect to see plenty more launches of Russian firms on the British and other western stock markets for a while yet. The decline of post-Soviet Russia continues apace and an article on the Weekly Standard site points out that one of the major exacerbating factors in that decline is Vladimir Putin. The crushing of the media, the confiscation of a large company because it was owned by a political rival on trumped up charges, the failed attempt to direct the result of the Ukrainian elections and the pathetic reaction by the Kremlin to the Beslan atrocity are described at the key indicators of the probably terminal decline of the current regime. The article is summed up at the end from a very narrowly ‘American policy’ perspective but the most interesting point for me was author Ander Aslund’s contention that the Putin regime is not long for the world. Whilst the Russia of 2005 may be a banana republic without bananas, political instability in a nuclear power that may well be unable to protect its nuclear weapons (Russia’s corrupt and famously inept military are somewhat like the ‘Keystone Cops’ with live ammunition) is something that is of interest to the rest of the world. I wonder when the focus of attention will start shifting away from the Middle East… I had never seen the infamous GULAG system; the Soviet authorities were not keen to document their crimes. But in 1946 they incarcerated an artist, Nikolai Getman, and he survived.
Much has been and will be written about the appalling tragedy of Beslan school and its children held hostage by Chechen terrorists that came to a bloody conclusion two days ago. What I want to remind the western observers just how different the world is on the other side of what used to be the Iron Curtain. There is much disregard for human life and for individual suffering or fate. We often complain here about the state’s natural tendency to override the individual and point out where the balance between the two needs to be redresses. But what happens in Russia (and many other non-Western countries) is beyond the finely tuned scale we apply to western governments. The contempt in which the Russian government and the ruling class in Russia hold individual life is profound. Perhaps contempt is the wrong word since one would need to recognise something has value in the first place in order to deny it to someone out of contempt for them. Individual human life is not intrinsically valued by the Russian society. The lives of the family members, relatives and the loved ones, of course. But it is not expected that the faceless collective will or even should take heed of others’ suffering.
This was a cry of one of the relatives waiting outside the besieged school when the Russian troops starting firing their machine guns. Whether he was right or wrong on the Spetsnaz tactics in particular or hostage situations in general is beside the point, it was the acceptance of his or anybody’s powerlessness in the face of the Government. The ruthlessness of the Russian state and its President is echoed by Oleg Gordievsky, the highest-ranking KGB officer to work for MI6, in his opinion piece.
Western governments offered sympathy to Mr Putin and the Archbishop of Canterbury said that the massacre had tested his faith. But the European Union called for an explanation of how this tragedy could have happened. The Russians described the request as blasphemous. For once, I agree with the Russians. Sort of. |
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