Russia in Global Affairs

Current geopolitical divisions are causing global markets to stop functioning normally. Markets themselves have become fragmented, supply chains are more unsafe, and incentives to invest in and expand production have weakened.

Russia’s role in the world financial architecture is unlikely to be as significant as many would wish it to be, but given sensible alliances and compromises, it may become quite sufficient for protecting its national interests. The current situation should be used to modernize Russia’s own financial system, increase its resistance to external shocks, and its ability to convert internal savings into domestic investments in development.

Inherent weaknesses of the newly independent countries include not only high social costs and poor product quality, but also a shortage of managerial capital with the experience and abilities required to successfully compete on the global market.

The intricate overlapping of economic ties, corporate relations and political problems has made the issue of Gazprom’s relations with gas consumers in the CIS countries very difficult, and here we have an interesting case where the Russian side is objectively interested in depoliticizing economic relations.