Understanding Putin's Foreign and Economic Policy Correlation

Abstract

Understanding Putin's Foreign and Economic policy correlation. How Russia uses oil as a weapon.

From Russian gestures towards Washington right after 9/11, which almost bordered on an alliance formation, to the Russian tanks rolling into Georgia in the summer of 2008, the timeframe between 2001 and 2008 marked the return of Russia as a great power and major international player after decades of relatively reduced influence and decline in status post-Cold War. The new Russia was more economically stable due to burgeoning oil wealth and energy revenue more authoritarian, but considerably less free and democratic than even a decade ago under Yeltsin, and possibly more revanchist. Russia is also not shy to exercise hard power and its renewed strength and confidence, as evident by the 2008 gas crisis with Ukraine resulting in a subsequent squeeze on Europe, the South Ossetian war of 2008, and its rigid non-negotiating stance to the European Ballistic missile defense shield. But, to understand this re-invigorated Russia one needs to look at the first two terms under Vladimir Putin and his economic policy.

Keywords: Putin, Russia, Ukraine, Georgia, Economics, Oil, Foreign Policy

JEL Classification: Z00