Certainly the majority of Russians would rather be allied with the West, especially economically. Russia has embraced capitalism in just 15 years, and there are literaly hundreds of thousands of entrepreneurs, all of whom no doubt wish greater access to Europe. And Putin for a large part gave them that access and boosted the economy enabling many to start their own businesses. For Russia, Europe is where money and investment is.

However with recent conflicts between EU and Russia over oil contracts, and between US and Russia over Ukraine and Georgia, developing better ties with the West no seems largely impossible. Moscow may be Westrnized, but for the country as a whole there is still a major divide between Russia and EU.

For some reason EU is making conceded demands from Russia- instructing Russia to sign their oil contracts or else... and lecturing Putin on democracy and various freedoms. I don't see US lecturing Saudi Arabia on human rights- because US knows better than to taunt their key suppliers. So what the hell are Europeans thinking- I don't know.

And then there is the WTO. Russia raised/lowered its oil and gas prices to market standard to conform to WTO (oil and gas prices in Russia jumped almost 100% in 2 years as the result). It has tried to comply to regulations, and desperately fought piracy of copyrights within its borders. And stil the WTO closes its doors. Putin already stated that by 2008 Russia might drop its bid for WTO. That could mean it might take its oi/gas exports and business elsewhere- and the biggest loser from that would be Europe.

Why do they keep referring to Gas prices as a weapon. Its a polically motivated incentive. Heck Russia can cease selling gas to Georgia all together. Unlike Ukraine, Georgia is not a middle man for large customers (maybe Armenia). Next thing they are going to be calling elections a weapon. Anything US doesn't like is a weapon.

And it's only fair that Russia asks the old soviet republics to pay full price for the gas and oil, why should russians support those who broke out from it? And Russias internal gas prices will too allmost double during '07-'08 period, that is needed to gain capital for the extensive modernization of the russias energy industry.

Well US is used to coercing its suppliers of resources and raw materials into making the transaction beneficial to them. US eventually takes its suppliers "over", so they are no longer a separate and independent entity. Look at Saudi Arabia or Kuwait - they are practically subsidiaries of the US despite being in OPEC. Venezuela broke out of this chain, but other like Nigeria and Libya are getting pulled in.

So all of the pro-American energy importers around Russia are getting pissed off (and so is US and EU) that Russia isn't playing by their rules. But the international oil and gas market has for the most part inelastic demand - so it should be the supplier who sets the price and the terms.

Originally posted by maloy
Why do they keep referring to Gas prices as a weapon. Its a polically motivated incentive. Heck Russia can cease selling gas to Georgia all together. Unlike Ukraine, Georgia is not a middle man for large customers (maybe Armenia). Next thing they are going to be calling elections a weapon. Anything US doesn't like is a weapon.

At the end of the day if Georgia wants this commodity they'll pay the normal price.

No more Russian subsidies. That's all.

All of Georgia's anger should be aimed at Washington for their reluctance to give the poor Georgians one cent since they took over the running of Georgia. Russia has given post-Soviet independent Georgia billions in subsidies.

BILLIONS.

And all the anger of the CNN/BBC propaganda apparatus seems to be aimed at Russia like thay are the bad guys for not throwing their hard earned money at a foreign country that uses every media opportunity to criticize them.

Originally posted by blablablaxyz
All of Georgia's anger should be aimed at Washington for their reluctance to give the poor Georgians one cent since they took over the running of Georgia. Russia has given post-Soviet independent Georgia billions in subsidies.

Oh the US did give Saakashvilli some presents to go along with his hypothetic democracy (since its not really a democracy under that thin veil they have). Georgian troops got some brand new weapons and ammunition from the US. Then they got some more weapons and ammunition. America is stockpiling so much ammunition there, that they are practically forced to hold training exercises or to invade Abkhazia. And then, not content with that, the US supplied weapons to Georgian para-military factions poised against Abkhazia and South Ossetia.

But besides weapons, you are right- US didn't give anything to Georgia, and has only exploited it for its own good (new Caspian oil pipeline running through Georgia). But weapons aren't gonna feed people or keep them warm in the winter. Nor are they going to raise Georgia's GDP or improve the standard of living. As in most cases- this relationship with the US is a one-way partnership, benefiting almost solelly the US.

Aren't both in the same pro-US camp, with that brand new Caspian pipeline running through them? And here I though all politics in the Caucasus were reduced to pro-Russia and pro-US interests. Personally though I wouldn't make much of this new development. They have bigger issues to worry about north of their borders.

But Russia is doing the same thing with Belarus now as well, and Belarus is considered more or less an ally. Belarus has untill the January 1st to accept the doubled prices. This way the West can no longer blame Russia for double standards and doing political favors with gas subsidies. Everyone gets the same market price, or they get no gas.

What's so unfair about Russia playing capitalist? Or is the West more amiable to the idea of Russia becoming a generous communist again?

Ivanov is an asshole. I only hope that he won't be the one replacing Putin.