The expected has happened, which somehow has stirred a lot of speculation about the future of Russia. Prime Minister Vladimir Putin said he would consider taking back the country’s presidency during the 2012 elections.
“Naturally, I am already thinking about this issue with President Medvedev but have decided not to make much fuss about it, not to let ourselves be distracted by this problem,” Putin said to French media.
It appears that the Medvedev-Putin duo are working out plans for the next round of elections and are likely not going to run against each other but manage a deal in which they can together govern Russia as they have been doing after Putin stepped down from the presidency in 2008 and picked Medvedev as his favoured successor.
And it seems that Russia is playing with both Iran and the U.S. by sending mixed messages on its sale of anti-aircraft missiles. Iran wants what is called a S-300 missile defence system from Russia. The order has long been placed, and delayed. Shortly after UN Security Council sanctions were passed against Iran, a Russian arms supplier was quoted saying the missiles would never be delivered.
Russia’s Foreign Minister, on Thursday, responsed to Iran’s complaint and publicly gave hollow assurances. So the official line is that there are no legal constraints holding Russia back from selling S-300 milles (the fourth round of sanctions against Iran really didn’t add much that is new). But, this is a far cry from saying that Russia is prepared to complete delivery. So, it seems the ball is still in play on this one, and Russia is likely using this in negotiations with the U.S. and perhaps to make sure the U.S. keeps its end of any bargain in the long term.
Just a reminder, the U.S. is still set to implement and expand covert military activity inside and around Iran. A directive signed by General Petraeus in September 2009 is still in play, deepening related plans that began under the Bush administration and continue under President Obama.
“The seven-page directive appears to authorize specific operations in Iran, most likely to gather intelligence about the country’s nuclear program or identify dissident groups that might be useful for a future military offensive,” writes Mark Mazzetti in the New York Times.
More recently, it was revealed that the U.S. is indulging in a small building binge: it will be setting up new military facilities in all Central Asian countries. There seems to be a jostling for such facilities between both the U.S. and Russia.
China, meanwhile, is stamping its presence in the same Central Asian countries economically instead, such as by taking majority shares in a Kazakh oil venture in exchange for a US$10 billion line of credit to Kazakhstan. This sort of lavish spending and economic investment is made possible by its fast growing economy, and, maybe, we might also say that its fast growing economy is a little aided by its economic investments.
Numbers just came out: China’s exports have risen by almost 50% over the past year (no that’s not a typo). It rakes in US$1.2 trillion in export revenues in a year. The economy as a whole has grown at a rate of 11.9% in the first quarter, and all this heat is pushing up housing prices very rapidly which could be leading to a real estate bubble in China. Workers have been increasingly demanding that they get a fair share of all of these profits and have staged various actions including strikes. The most famous case, in a Honda plant, has seen wage levels for its workers rise by between 24% and 33%.
As for Turkey, it seems to expect to reap some economic rewards from the sanctions against Iran. Today’s Zaman writes:
“Strategic Thought Institute (SDE) President Professor Yasin Aktay said the sanctions bring advantages that outweigh any damage that they could present for Turkish-Iranian trade. ‘The sanctions are more concerned with weapons and [Iran’s] Revolutionary Guards; there’s not much activity between [Iran and Turkey] in these fields. Our trade with Iran is concentrated in oil, natural gas, industry and consumer products,’ Aktay said. He further commented that sanctions had above all a strong psychological effect and that this could lead to increased trade with Turkey in fields not covered by the sanctions. ‘It’s an important position to be in when you are a country that can say ‘no’ and remain on its feet; there’s no better public diplomacy than this,’ he said.”
Currently, a natural gas pipeline delivers US$1.5 to US$2 billion of energy from Iran to Turkey each year, and there is talk of more such ventures. In various statements in the early part of this year, Turkish leaders have suggested significantly multiplying trade with Iran, which is at the moment focused on transfers of energy.