What the Russian papers say

© Alex StefflerWhat the Russian papers say
What the Russian papers say - Sputnik International
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Where are you flying to phoenix? / Bulgaria will not participate in Russia's ballistic missile defense system / Rosatom set to enter U.S. market / Russian secret services to tap Georgians' mobiles

Delovoi Vtornik

Where are you flying to phoenix?

Nikolai Petrakov, member of the Russian Academy of Sciences and director of the Institute of Market Economy, discusses Russia's integration into the international community

Part One

While overcoming the effects of the crisis, Russia must establish high-tech production, modernize leading branches of the economy on an innovatory basis and change its information and management system.

The theory behind the concept of modernization remains undefined. Should Russia modernize its key industries by acquiring and copying Western high-tech ideas, or use Russian scientific achievements?

In the late 19th and early 20th century, Russia made considerable progress creating a modern industrial economy - moving from textile factories to engineering plants. After the revolution, Russia, phoenix-like, again attempted to re-emerge as a modern economic power. Lenin's New Economic Policy (dating from 1921) offered just such an opportunity, amid state control over the natural monopolies. Those developing the ideology behind that modernization based their views on the development of the post-industrial consumer economy. But all of them - Kondratyev, Yurovsky, Chayanov and many others - suffered under Stalin, who prioritized industrialization over agriculture and the consumer sector. Winston Churchill's well-known phrase that "Stalin came to Russia with a wooden plow and left it in possession of nuclear weapons" can be expanded by adding "and an impoverished population."

This is now the third time that Russia's leaders have started building capitalism in the country. Their slogan is: modernization, innovation, nanotechnologies and computer networks. The globalization of the world economy and international relations is behind this attempt to embrace e-capitalism. But the problem of real integration into the world economy lies at the heart of globalization.

The West has already integrated the Russian economy into the world community, doing so de facto and with the connivance of Russia's former leadership. The concept of implanting Western democracy into Russia from outside has, in recent decades, become a reality. Essentially it is a colonial democracy bearing a range of particular features.

In the economy, this means market reforms turning "new democracies" into primitive economies based almost solely on the export of raw materials. Rapid privatization has produced an ineffective and uncompetitive market, while private property enriches a numerically small elite.

Part Two

The Russian leadership understands the theory of this. But can it escape from this trap? The dilemma arises: To accept this integration imposed on Russia by the West, or to try to build, by oneself, a diversified economy able to compete on world markets.

Remaining on the current course means dooming the Russian economy to dependence on world oil prices. Internationally, Russia will experience pressure not only from the West but, in the future, from OPEC.

Proposals by some Russian academics that Russia swap its raw materials for Western high technologies hold out little promise. These proposals fail to take Western interests into account. Western experts reason that Russia will sell its oil and natural gas for dollars and euros which it will then use to purchase finished goods, not the technology needed to produce them. The failure of the Opel deal is an early sign of this policy. Russia needs integration, but only if its national interests are taken care of.

Russia's national interests above all involve the following areas:

- priority development of science in areas where Russia is or may become competitive in the next few years;

- guaranteeing the country's security through the defense sector and fully re-equipping the Russian army with the latest weapons. Russia's arms exports would only benefit from this;

- taking advantage of the country's geographical position. With South East Asian countries, Japan and South Korea and, in the next few years, China all seeing rapid development in science, technology and the economy, Russia could act as an effective bridge between Europe and Asia. The international investment project for an East-West motorway and a railroad will create a 21st century Silk Route;

- exploiting Russia's particular environmental and economic advantages over other areas on the globe;

- promoting demographic growth and increasing the lifespan of Russian citizens.

The issue of integration and modernization in Russia is more complex than it appears. Russia must, as before, play a significant role on the world energy market. But its national interests are broader and more varied than profits gained from the sale of oil and gas.

Nezavisimaya Gazeta

Bulgaria will not participate in Russia's ballistic missile defense system

Russia, the United States and NATO are moving closer to cooperating in ballistic missile defense. They have clearly outlined their intentions, and U.S. President Barack Obama and the NATO leadership have expressed a willingness to cooperate with Russia.

Obama said during his July 2009 visit to Russia: "I want us to work together on a missile defense architecture that makes us all safer. But if the threat from Iran's nuclear and ballistic missile programs is eliminated, the driving force for missile defense in Europe will be eliminated. That is in our mutual interest."

Under Secretary of State for Political Affairs William Burns said in April 2010: "Our two countries have devoted more study and resources than any other to defending against the threat from ballistic missiles."

NATO Secretary General Anders Fogh Rasmussen said at the 2010 spring session of the NATO Parliamentary Assembly in Riga, Latvia: "I believe that missile defense can bring NATO and Russia closer together. I see missile defense as a perfect opportunity for cooperation."

Russian authorities also view such cooperation positively; in fact, both parties are currently coordinating potential missile threat strategies.

Given these events, the reaction of Bulgarian Foreign Minister Nikolay Mladenov to Russia's unofficial proposal to consider stationing Russian S-300 and S-400 theater missile defense systems appeared out of step.

He said Russia's proposal was "completely unserious," adding, "Bulgaria decides its matters within its own family: its security matters within NATO, and its economic matters within the EU."

The unofficial idea that Russia's ballistic missile defense systems could be deployed in Bulgaria and Romania was put forth during a conference at the Carnegie Moscow Center in May 2010 as part of a broader discussion of possible cooperation between Russia, the United States and NATO.

Had the idea been adopted, the three parties could have considered not only linking their information systems but also adding a Russian missile defense system to the European missile shield. This could be a good beginning for comprehensive cooperation, especially since the Russian S-400 Triumph system is better against air targets and ballistic missiles than the U.S. Patriots.

Unlike the Patriot system deployed in Poland for purely political reasons - combat use is unlikely because Russia and NATO will never attack each other, Russia's ballistic missile defense systems deployed in the southeast of the European Union could really protect Europe, including from Iran's missiles.

Vzglyad

Rosatom set to enter U.S. market

U.S. energy giant Dominion Nuclear has backed state-owned Rosatom's plans to sell Russian nuclear fuel on the U.S. market.

Russian nuclear corporation Rosatom plans to deliver fuel for TVS-KVADRAT fuel assemblies, used at foreign nuclear power plants, to the United States.

Dominion Nuclear's top managers said they are not only interested in receiving low-enriched uranium, but that they also back moves to certify Russian-made TVS-KVADRAT fuel assemblies for Western-designed nuclear power plants.

They are ready to buy low-enriched uranium and TVS-KVADRAT fuel assemblies, as soon as we get our license, Rosatom CEO Sergei Kiriyenko told journalists.

Kiriyenko said another U.S. nuclear giant, Exelon Nuclear, had already asked the U.S. Department of Energy to license TVS-KVADRAT fuel assemblies.

Spokespeople at Dominion Nuclear said they were ready to support this project once TVS-KVADRAT fuel assemblies were licensed.

TVS-KVADRAT's advantage is that it is a ready-made and easy-to-install fuel assembly for Western-designed nuclear power plants, said Finam Management analyst Dmitry Baranov. Moreover, TVS-KVADRAT has a high nuclear burn rate, making it possible to save plenty of uranium which is why Dominion Nuclear wants to buy these fuel assemblies. He said the U.S. company's decision was correct and logical, and that Rosatom would, in return, receive a stable sales market.

Kiriyenko said Monday that Tekhsnabexport, a state-owned Russian company trading uranium fuel and uranium-processing services abroad, had started negotiating long-term contracts with U.S. companies after Moscow and Washington agreed two years ago to gradually lift anti-dumping restrictions against Russian low-enriched uranium on the U.S. market.

Contracts worth $3.5 billion have been signed to date and are set to expire in 2014-2020, Kiriyenko said. The sides were already negotiating contracts beyond 2020.

Tekhsnabexport is the largest operator on the global nuclear fuel-cycle market with over 40% of the foreign nuclear power plants' uranium enrichment market.

GZT.RU

Russian secret services to tap Georgians' mobiles

Russia is building a military base with tracking radars not far from Tskhinvali,the capital of South Ossetia, a Georgian enclave which declared independence in 2008. Georgian officials claim this Russian outpost on their border is proof of Moscow's aggressive policy it never abandoned and that Moscow is determined to maintain a military stance in the Caucasus conflict.

The Daily Telegraph (London) quoted an unidentified Georgian government source as saying that the Russian base near Tskhinvali will be equipped with a radar station and communications interception capability. The strategic potential of the base, which would stand further south than any other Russian listening post, is much greater than has previously been suggested, the source said.

The equipment that Russia is bringing to South Ossetia would give it the ability to track air movements, as well as intercept mobile and other communications across the Caucuses, the Daily Telegraph adds.

Alexander Konovalov, head of the Institute for Strategic Assessment in Moscow, said whatever Russia is building in the region, it cannot be a sign of Russia planning a repetition of the 2008 "Caucasus scenario," when Russian forces had to invade Tskhinvali to protect peacekeepers and civilians. "That conflict cannot be repeated because it was Georgia that started it. Georgian troops moved into Ossetian territories and provoked Russia's reaction. As for Russia, it achieved everything it wanted in 2008. The Russian army had every opportunity to march on Tbilisi then, but it didn't, having consolidated its foothold in the Caucasus," he said.

Leonid Ivashov, president of the Geopolitical Problems Academy, told GZT.RU that building a radar outpost in South Ossetia was essential for Russia's national security. "It is essential to have security facilities not only at home but also abroad, so as to be able to detect any potential threat and respond promptly," he said. "Now that Moscow has a chance to build a base in South Ossetia, it absolutely should be done," the analyst added.

Georgia's accusations against Russia are a long way from reality, according to Ivashov. "Georgian President Mikheil Saakashvili lost the 2008 conflict, but won the information war. Now Tbilisi is continuing its offensive campaign. Russia's alleged plans to repeat the 2008 war is an ungrounded provocation to justify Saakashvili's policies before the international community," Ivashov said.

 

RIA Novosti is not responsible for the content of outside sources.

MOSCOW, June 8 (RIA Novosti)

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