Effectiveness of Economic Sanctions on Russia’s Economy

In early 2015, Western leaders thought they had Russia cornered.  A year earlier they imposed on Russia economic sanctions, which ranged from restrictions on access to Western capital markets to bans on the export of oil-production technology, to punish it for its role in dismembering Ukraine.  Those sanctions and the Russian boycotts that followed threw Russia’s economy into turmoil.  With some justification, President Barack Obama declared that “Russia is isolated with its economy in tatters” in January 2015.  But two years later, Russia has stabilized its economy, annexed Crimea, and kept its “little green men” in eastern Ukraine.  What went awry?

Peak Pain

In financial terms, Russia felt the most damaging impact of the West’s economic sanctions within the first year of their imposition.  Suddenly, Russian companies, holding dollar and euro-denominated debt, had to repay their loans without the ability to refinance them.  Russian banks targeted by Western sanctions saw their overseas assets frozen.  That created a cash crunch.  Many companies were forced to suspend operations and slash jobs; some even required government capital injections to survive.  But they did survive.

Commodity Price Stabilization

Unfortunately for Russia, the West’s economic sanctions coincided with a steep drop in global oil prices.  That, more than anything else, exacerbated Russia’s economic woes, since much of the country’s economy depends on the production of commodities, primarily oil.  Oil prices plummeted from over $100 per barrel to under $35 per barrel in late 2015.  But then they began to recover the following year.  So too did the prices of other major commodities that Russia produces, including iron, aluminum, and copper.  No doubt global economic growth, which boosted commodity prices, helped Russia to better ride out Western sanctions.

Floating Currency

But the stabilization of commodities prices did not save Russia’s economy.  With economic sanctions darkening the country’s outlook, the value of the Russian ruble was cut in half.  At first, Russia’s central bank tried to defend it, consuming $200 billion in foreign exchange reserves in the effort.  But ultimately, Russia’s central bank took a leaf from the International Monetary Fund’s market-based playbook and allowed the Russian ruble to float.  That freed Russia’s central bank from having to defend the ruble and prevented an even greater outflow of hard currency that would have further undermined Russia’s economy.

Moreover, since commodities are generally priced in dollars, the sharply devalued ruble meant that though Russian companies faced falling prices for their goods, the dollars they did receive could be converted into more rubles.  That softened the economic blow—enough so that Russian energy companies could continue to reinvest in their businesses.  As a result, despite the sanctions on oil-production technology, Russia is able to produce more oil today than it did before the sanctions were imposed.

Inflation Control

With shortages of imported goods and more rubles in circulation, inflation became a real threat.  Rising prices ate away at the purchasing power of ordinary Russians.  But rather than reflexively enact price controls, Russia’s central bank used another market-inspired lever.  It raised interest rates, up to 17 percent by December 2014.  Credit naturally dried up, further depressing the Russian economy.  But fortunately for Russia, inflation was quickly brought under control.  That allowed Russia’s central bank to gradually lower interest rates to 10 percent, giving Russian companies much-needed breathing room to recover.

Fiscal Discipline

In the depths of its economic recession, Moscow could have increased government spending to boost economic activity.  But with falling revenues from Russian oil production, a surge in spending would have pushed Russia’s government budget deep into the red and fueled a potential economic crisis.  Instead, Moscow exercised fiscal discipline.  It held its spending in check and ran a budget deficit of only 3 percent of Russia’s GDP last year.  When more funds were needed, Moscow raised taxes and dug into its two sovereign wealth funds, draining a third of their assets before oil prices stabilized.

Wavering Western Resolve

Meanwhile, European companies, particularly German ones, gave Moscow hope.  They were never keen on the economic sanctions against Russia.  From the start, they lobbied German Chancellor Angela Merkel to water them down.  After they were imposed in 2014, German direct investment into Russia evaporated.  But only a year later, German companies returned, investing $1.8 billion into Russia.  Last year, they invested another $2.1 billion, more than they had in the year before economic sanctions were imposed.  Such continued investments have encouraged Moscow to question the strength of Western resolve.

Conclusion

The West’s economic sanctions have bent but did not break the Russian economy, despite its structural vulnerabilities.  What steadied it was a combination of several factors, the most important of which were the stabilization of global commodity prices and the market-oriented policies implemented by Russian authorities.  They made Russia’s economy more resilient and prevented an even deeper recession.

Ultimately, economic sanctions can make countries more vulnerable to global economic forces.  But rarely do they deliver a knockout blow themselves.  Western economic sanctions against Russia have proven the rule, rather than the exception.  Ironically, the West’s success in spreading open-market ideas at Russia’s central bank may have inadvertently weakened the effectiveness of its own economic sanctions.  If so, the further spread of such ideas could make economic sanctions even less effective in the future.

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Is Trump Russia’s Manchurian Candidate? No. Here’s Why

 

“Is Trump a Manchurian Candidate?” The Trump as “Manchurian Candidate” scenario has been a constant query for my colleagues and I since we published our warnings in August and November last year about Russia’s influence campaign on the U.S. presidential election. This loosely plays along the plot line of the 1959 novel and follow up 1962 movie where a communist conspiracy tries to install a dictatorial president in the U.S. In the most dire conspiracy theories today, Donald Trump is portrayed as a covert Russian operative ceding control of America to an ascendant Vladimir Putin. Trump’s supporters instead see the inverse – a new populist president focused on “America First,” seeking to make deals and secure peace through a worldview and foreign policy similar to Russia. Evidence for either of these scenarios remains scant, and conspiracy theorists on both sides of the political spectrum should consider that reality likely rests somewhere in between. Trump’s Russia connections and Putin’s overt support for “the Donald” should be evaluated not as dichotomous positions, but as the ends of a spectrum of four possible scenarios (Figure 1).

 

Scenario #1: “Natural Ally”

President Trump and many of his supporters contend that the new administration represents nothing more than the natural alliance between two men seeking their own country’s interests through toughness. Trump’s affinity for Russia dates back to the late 1980s by some accounts, and his business pursuits in the country have been well documented.

 

The “natural ally” explanation for Trump’s Russian affinity would only make sense if the president had an enduring worldview and foreign policy stance over several electoral cycles that justified and explained why an alliance with Russia would be both good for America and put “America first.” President Trump may know business, but foreign policy is not his bailiwick. Prior to his jump into the presidential race, Trump didn’t espouse any clear foreign policy stances suggesting his national security views in general, particularly in regards to Russia. On rare instances where Trump stated foreign policy views prior to his presidential run, he often contradicted himself (i.e. U.S. invasion of Iraq). Trump’s alignment with nearly every Russian foreign policy objective grew in increments, eerily coinciding with the entrance of key aides and advocates into his campaign, not through his own study.

 

Scenario #2: “Useful Idiot”

Russian influence of Trump most likely falls into the category of what Madeleine Albright called a “Useful Idiot” – a “useful fool” – an enthusiast for Putin supportive of any issue or stance that feeds his ego and brings victory. Russian intelligence for decades identified and promoted key individuals around the world ripe for manipulation and serving their interests. Trump, similar to emerging alternative right European politicians, spouts populist themes of xenophobia, anti-immigration, and white nationalist pride that naturally bring about a retrenchment of U.S. global influence. By spotting this early, Russia could encourage Trump’s ascension and shape his views via three parallel tracks. First, Russia led a never before seen hacking and influence campaign to degrade support for Hilary Clinton and promote Trump among a disenfranchised American populace. As a “useful idiot,” Trump not only benefited from this influence effort, but he urged Russia to find Hilary Clinton’s missing emails – a public call a “Manchurian Candidate” (see Scenario 4 below) would not likely make. Trump even fell for false Russian news stories citing a bogus Sputnik news story at a presidential rally – a glaring and open mistake that would reveal a true “Manchurian Candidate.”

 

Second, political operatives of other Russian campaigns mysteriously surfaced as close advisors whispering Kremlin lines in Trump’s ear, modifying his world view, sliding in Russian foreign policy positions as mainstream American positions, and even altering the Republican platform to support a Russian position over a Ukrainian ally. Paul Manafort, Trump’s campaign manager who previously worked in Ukraine on behalf of Russia, mistakenly cited a debunked Russia false news story about a terrorist attack on Incirlik airbase in Turkey as a final show of Russian influence before being fired. Carter Page, a Trump campaign linkage, denies being an agent, but has waffled on his meetings with Russian diplomats. The ex-MI6 agent’s dossier alleged secret meetings between Trump officials and Russian agents, but these have yet to be confirmed.

 

Third, Russia used overt influence and ultimately compromised key Trump advisors and appointees. The former MI6 officer’s dossier noted Russia’s deliberate attempts to sway Green Party candidate Jill Stein and Trump’s first National Security Advisor retired Lieutenant General Michael Flynn. This verifiable claim surfaced in the lead up to the presidential election with Flynn’s paid attendance at an RT event and the fact that he sat next to Russian President Vladimir Putin called into question the zealous general’s allegiance in his vengeful rants against an Obama administration that fired him. Flynn then lied about his conversation with Russian Ambassador Sergey Kislyak prior to the inauguration which lead to his resignation. Now, Attorney General Sessions has potentially lied during confirmation hearings about meeting this same Ambassador Kislyak during the presidential campaign resulting in his recusing himself from all issues regarding Trump’s ties to Russia. Trump aides have also allegedly been pushing for a back channel deal between Ukraine and Russia, a maneuver between liaisons more typical of a “useful idiot” rather than “Manchurian Candidate” scenario. This sort of meddling provides the Kremlin plausible deniability and still achieves Russia’s objectives: breaking up the European Union, dissolving NATO, and weakening of American influence.

 

Scenario #3: Compromised

President Trump has been bullish on ISIS, China, and Iran, but has curiously been quite amenable to Russia. One explanation put forth regarding his toughness on all American enemies except Russia is that he is compromised – vulnerable to blackmail by the Russian government due to sexual compromise or financial entanglements. Under this scenario, President Trump would not be doing the bidding of Putin on a day-to-day basis, but would bend as needed to a Russian foreign policy position in order to protect himself from public disclosures and the resulting political backlash.

 

The former British intelligence officer’s dossier made salacious claims of sexual misconduct by Trump during a visit to St. Petersburg. But rumors of sexual compromise have yet to bring forth any real evidence of misbehavior. Furthermore, Russia would have a hard time sexually compromising a president who has been married three times, who may have bragged about his sexual prowess while posing as his own publicist, and who was caught using misogynistic speech in a leaked video. President Trump compromised himself in this fashion, and the voters didn’t seem to care. Should Russia release the alleged provocative video tape now, they would only confirm their meddling and achieve nothing – the dossier leak and U.S. government discussion of the dossier likely inoculated the president from any compromise on a sexual basis if anything even existed.

 

Trump claims no financial ties to Russia, but these allegations still remain open due to Trump’s refusal to show his tax records and the media’s failure to show any discernible financial ties to Russia. This situation may change in the future and could damage the president. More recently, President Trump’s son appears to have received $50,000 from a pro-Russia group in the weeks leading up to the election. This revelation, alongside absent tax records, suggests that President Trump and his family might be currently or in the future financially compromised through business interests that have not been properly divested by the president – business interests tied to or manipulated by Russia without the full knowledge of the First Family.

 

Scenario #4: Manchurian Candidate

On the other end of the spectrum, those most traumatized by Trump’s victory have questioned if the U.S. has fallen under the command of the world’s most cunning authoritarian: Vladimir Putin. A “Manchurian Candidate” Trump would be a deliberate plant commanded by the Russian government, aided during the campaign with both a hacking-influence campaign – equipped with key Russian advisors – and funding to help him take the White House.

 

This scenario is unlikely to be the case for several reasons. Trump’s behavior and policy positions sway with the wind. The famous former British intelligence officer dossier argued that Trump’s behavior in the lead up to the election caused unease amongst Kremlin leaders backing him. Trump openly discusses Russian connections and seems to be unaware of his closest aides ties and contacts to Russian diplomats and intelligence assets. Even Trump’s unfounded tweet storm about the wiretapping of Trump Tower would pose a threat to Russia under the “Manchurian Candidate” scenario. A Russian-directed U.S. president would be more deliberate in policy positions and would conceal rather than discuss connections with Russia. To date, no direct financial or physical contacts and communications can be directly tied to President Trump.

 

Most importantly, a Manchurian Candidate scenario, if it came to light, would likely result in direct war between the U.S. and Russia. The Russians started their second Cold War with the U.S. years ago, and they are winning. They don’t need a Manchurian candidate; that’s higher cost and higher risk to their efforts. They prefer systematic, indirect, asymmetric engagements that incrementally achieve their goals rather than provoking the U.S. into a direct clash militarily and economically – a fight the Kremlin would likely lose.

 

 

What are the implications of these Russian connections for Trump and America?

Regardless of President Trump’s relationship to Russia, the repeated disclosure of Russian influence and connections to his campaign and staff have created considerable turmoil in the White House and America as a whole. Trump’s loose style of alliances and tactical actions make him ideally suited for the “Useful Idiot” scenario of Russian influence as he takes on advisors and positions based on perceived loyalty, yet without a clear understanding of his advisors connections to Russia. Any traditional politician would have sensed the danger implicit in surrounding oneself with people so closely connected to Putin’s intelligence agents.

 

More importantly, President Trump appears strongly influenced by those in his inner circle. So if they have connections to Russia, whether President Trump knows it or not, he will, at times, be Russia’s pawn on foreign policy issues.

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Turkey: From “NATO’s Anchor” to What?

On Monday, the Turkish newspaper Hürriyet Gazetesi published the backstory to President Recep Erdoğan’s meeting in St. Petersburg with Russian President Vladimir Putin on 9 August.[1] The report credited two persons for acting as go-betweens in the eventual “rapprochement,” Ramazan Abdulatipov and Cavit Çağlar. A number of Russian[2] and regional[3] media outlets published accounts of the Hürriyet Gazetesi report.

Welcoming Turkey’s “restoration of legitimate and constitutional order,” Mr. Putin said in St. Petersburg, “We have always opposed anti-constitutional actions.”[4] The Kremlin used that same term—anti-constitutional actions (antikonstitutsionnykh deystviy)— in its official statement after Mr. Putin spoke to Mr. Erdoğan on 17 July in the aftermath of the attempted coup (a conversation, the Kremlin hastened to point out, Russia initiated):

“Vladimir Putin…stressed the principled position of Russia regarding the categorical inadmissibility in the conduct of public affairs of anti-constitutional actions and violence.”[5]  

Turkish press reports emphasized Mr. Putin’s “decisive opposition to unconstitutional actions”[6] against Mr. Erdoğan’s government, some repeating Mr. Putin’s phrase verbatim.[7] That phrase is also the same one Mr. Putin used after Ukrainian President Viktor Yanukovych’s ouster.[8] It was echoed then by other members of his government—for example, Foreign Minister Sergey Lavrov’s condemnation of “radical unconstitutional actions of Ukrainian oppositionists.”[9]

The Hürriyet Gazetesi account of events leading up to the meeting in St. Petersburg is worthy of a spy novel, and Ramazan Abdulatipov and Cavit Çağlar are among its central characters. Mr. Abdulatipov is said to have taken his directions from Yury Ushakov, a long-time Russian diplomat and aide to Mr. Putin. In September 2013, Mr. Putin appointed Mr. Abdulatipov to his second four-year term as Head of the Republic of Dagestan, a Russian federal republic located in the North Caucasus.

Mr. Abdulatipov ‘s counterpart, Cavit Çağlar, is said to have taken his directions from General Hulsi Akar, Turkey’s Chief of the General Staff since April 2015. Mr. Çağlar’s usual description as “a Turkish businessman” does not do him justice. In 1999, he was a central figure[10] in a covert operation in Kenya conducted by the Millî İstihbarat Teşkilâtı (Turkey’s National Intelligence Agency, aka “MIT”) to interdict and capture Abdullah Öcalan, a founding member of Turkey’s outlawed Kurdistan Workers’ Party known as the PKK (Partiya Karkerên Kurdistanê‎). Mr. Çağlar’s private aircraft was used to spirit Mr. Öcalan from Nairobi to Turkey. In late April 2001, he was arrested by the United States Federal Bureau of Investigation in a parking garage at New York’s JFK Airport and extradited to Turkey, which had issued an Interpol Red Notice pursuant to his conviction in the collapse of Turkey’s Interbank. 

The precursor to the St. Petersburg meeting was President Erdoğan’s letter to President Putin. In it, Turkey apologized for the 24 November 2015 downing of a Russian warplane in Turkish airspace that was taking part in a combat mission in Syria.[11] Hürriyet Gazetesi reported a 30 April meeting in Istanbul, during which President Erdoğan authorized General Akar and Mr. Çağlar to open discussions with Russia about “normalizing” relations. Messrs. Abdulatipov and Çağlar then spent several weeks shuttling successive drafts of the letter (written by prior agreement in Turkish and Russian, not English) back and forth, with the support of Kazakh President Nursultan Nazarbayev. This led to a 24 June meeting in Tashkent, Uzbekistan, where President Putin was scheduled to meet President Nazarbayev at the conclusion of the Shanghai Cooperation Organization (SCO) summit. The Kazakh ambassador to Turkey contacted an aide to President Erdoğan, Ibrahim Kalyn, to set the meeting in Tashkent. After several last minute hitches—there were problems reconciling the Turkish and Russian versions of the letter, and Uzbekistan had closed its airspace due to the SCO summit so Kazakh President Nazarbayev had to ask Uzbek President Islam Karimov for permission to fly “his friends from Turkey” (whose aircraft, low of fuel, had landed in Shymkent) to Tashkent—President Putin and President Erdoğan agreed to the final wording. The timing was uncanny, coming a fortnight before the attempted coup in Turkey. As the Hürriyet Gazetesi report points out, the first leader to phone President Erdoğan with a message of support was President Putin.

The St. Petersburg meeting, write Gallia Lindenstrauss and Zvi Magen,[12] “is likely to be a beginning of a new phase in Turkish-Russian relations.” It may very well mark the beginning of something wider, given the pivotal Kazakh and Uzbek roles in brokering the rapprochement between their neighbors. There is another, less noticed factor as well: as Mr. Erdoğan met with Mr. Putin in St. Petersburg, Turkish Foreign Minister Mevlüt Çavuşoğlu declared his country would suspend its migration agreement[13] with the European Commission unless the Commission established a definitive date to abolish visa requirements for Turkish citizens.[14] Where that goes is anyone’s guess. What is certain, however, is that Turkey’s traditional role as NATO’s “anchor” on the Black Sea is indeed ripe for revision, exactly how much and to what extent nobody today can know.

NOTES

The translation of all source material is by the author.

[1] ” Türk-Rus krizini bitiren gizli diplomasinin öyküsü.” Hürriyet Gazetesi [published online in Turkish 8 August 2016].

[2] See for example: “Ramazan Abdulatipov yakoby okazal sodeystviye v vosstanovlenii otnosheniy mezhdu liderami Rossii i Turtsii.” Seryy zhurnal [published online in Russian 9 August 2016]. http://kopomko.ru/ramazan-abdulatipov-yakobyi-okazal-sodeystvie-v-vosstanovlenii-otnosheniy-mezhdu-liderami-rossii-i-turtsii/. Last accessed 9 August 2016.

[3] “Negocieri secrete. Cum au reuşit Turcia şi Rusia să-şi restabilească relaţiile.” Publika.md [published online in Romanian 9 August 2016]. http://www.publika.md/negocieri-secrete-cum-au-reusit-turcia-si-rusia-sa-si-restabileasca-relatiile_2708501.html. Last accessed 9 August 2016.

[4] “Putin: Rossiya i Turtsiya vystupayut za vozobnovleniye dvustoronnikh otnosheniy.” Novaya Gazeta [published online in Russian 9 August 2016]. http://www.novayagazeta.ru/news/1705969.html. Last accessed 9 August 2016.

[5] ” Putin v razgovore s Erdoganom zayavil o nedopustimosti antikonstitutsionnykh deystviy.” TASS [published online in Russian 17 July 2016]. http://tass.ru/politika/3462009. Last accessed 9 August 2016.

[6] ” Putin’den Erdoğan’a telefon.” Hürriyet Gazetesi [published online in Turkish 17 July 2016]. http://www.hurriyet.com.tr/putinden-erdogana-telefon-40150943. Last accessed 9 August 2016.

[7] See for example: “Putin’den Erdoğan’a: Anayasaya aykırı hiçbir eylem kabul edilemez.” İleri Haber [published online in Turkish 17 July 2016]. http://ilerihaber.org/icerik/putinden-erdogana-anayasaya-aykiri-hicbir-eylem-kabul-edilemez-56902.html. Last accessed 9 August 2016.

[8] For example see: “Putin po telefonu obsudil s Merkel’ i Netan’yakhu ukrainskiye sobytiya.” Vesti.ru [published online in Russian 16 April 2014]. http://www.vesti.ru/doc.html?id=1483262. Last accessed 9 August 2016.

[9] “Ukraina na krayu. Vozmozhnyye stsenarii razvitiya sobytiy.” Vechernyaya Moskva [published online in Russian 24 January 2014]. http://vm.ru/news/2014/01/24/ukraina-na-krayu-232373.html. Last accessed 9 August 2016.

[10] One of the best descriptions of the events surrounding Mr. Öcalan’s flight and capture was published in the United States Central Intelligence Agency’s Studies in Intelligence series. See: Miron Varouhakis (2009). “Fiasco in Nairobi: Greek Intelligence and the Capture of PKK Leader Abdullah Ocalan in 1999.” Studies in Intelligence. 53:1. https://www.cia.gov/library/center-for-the-study-of-intelligence/csi-publications/csi-studies/studies/vol53no1/fiasco-in-nairobi.html. Last accessed 9 August 2016.

[11] A Russian language report about the Hürriyet Gazetesi article stated that the language of President Erdoğan’s letter in Russian used words that were ” stronger than ‘sorry’ but not as strong as ‘apology’.” Mr. Putin, it wrote, “approved the text, despite the fact that he found it a little closer to the Turkish position, because he read it as a request for forgiveness.” See: “Ramazan Abdulatipov vsplyl v istorii s izvineniyami Redzhepa Erdogana pered Vladimirom Putinym.” On Kavkaz [published online in Russian 9 August 2016]. http://onkavkaz.com/articles/2781-ramazan-abdulatipov-vsplyl-v-istorii-s-izvinenijami-redzhepa-erdogana-pered-vladimirom-putinym.html. Last accessed 9 August 2016.

[12] Gallia Lindenstrauss & Zvi Magen (2016). “The Russian-Turkish Reset.” FPRI E-Note 8 August 2016. http://www.fpri.org/article/2016/08/russian-turkish-reset/. Last accessed 9 August 2016.

[13] According to the European Commission Fact Sheet dated 4 April 2016, “On 18 March 2016, EU Heads of State or Government and Turkey agreed to end the irregular migration from Turkey to the EU and replace it instead with legal channels of resettlement of refugees to the European Union. The aim is to replace disorganised, chaotic, irregular and dangerous migratory flows by organised, safe and legal pathways to Europe for those entitled to international protection in line with EU and international law. The agreement took effect as of 20 March 2016.” It provides for unauthorized migrants to be returned to Turkey and for Turkey to block “nee sea or land routes for irregular migration.” In exchange, Turkey received a payment in the amount of EU payment of €3bn (USD3.3bn). http://europa.eu/rapid/press-release_MEMO-16-1221_en.htm. Last accessed 9 August 2016.

[14] “Turtsiya postavila EC ul’timatum po bezhentsam.” Lenta [published online in Russian 9 August 2016]. https://lenta.ru/news/2016/08/09/stop_implementing_agreement/. Last accessed 9 August 2016.

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The West Needs to Stop Obsessing About Putin

Whether the Western media views Russian President Vladimir Putin as losing or winning, as strong or weak, as having a plan or lacking one entirely, it focuses almost exclusively on him as the driving force behind everything that happens in Russia and everything Russia does abroad. For good reason. Putin’s aggression is one of the top foreign policy challenges today. From Ukraine to Syria, no one stands in starker opposition to the Western world order.

Thus, Putin must go.  Focusing on the man, however, ignores the system that he’s put into place, and that system is the key to understanding today’s Russia and how we should deal with it.

The West’s Putin obsession feeds the misconception that if Putin were to step down tomorrow, Russia would be able to democratize and retake its place in the international community. Perhaps at one point in the early 2000s the removal of Putin would have made it possible for Russia to avoid a darker path. But that thought is no more than fantasy today. Putin is the central figure in the government apparatus, and members of his government cannot envision a Russia without him. Yet he has made the political future of Russia unstable by co-opting its political system, twisting it to serve himself and the elite who serve him, instead of the Russian people, and forging a system of rule that will, paradoxically, survive him and hinder democratization.

Putin’s regime is not an effective, responsive government. He has based his authority on corruption, the negation of basic political rights, the alternating appeasement and subjugation of the oligarchs, and manipulation of his people through control of the media. Even if Putin felt secure enough to appoint a successor who would guarantee him immunity from prosecution, as Putin did for Yeltsin, that successor would face problems simply by not being Putin.

This does not mean that Putin must stay for the sake of stability, or that his presence guarantees stability. Russia is not a stable country under Putin. Since the invasion of Crimea, the ruble has lost 50 percent of its value in relation to the dollar, Russia’s GDP has dropped by almost 1 trillion dollars since 2013, and Russia’s oil and gas industry has a bleak future. Russia is not a status quo international actor, as its mischief-making in Ukraine and muscle-flexing in Syria demonstrate. And with xenophobia and propaganda-induced nationalist hysteria on the rise, it could get worse, especially if a more erratic, nationalist politician were to succeed, or supplant, Putin.

If democracy is to have any hope in Russia, change must be organic, with the Russian people at its head. Democratic reformers hope that Putin’s powerbase, with its reliance on economics and the menace of external enemies, eventually crumbles and collapses under its own weight. Putin’s increasingly unpredictable behavior, spinning from crisis to crisis as he tries to maintain momentum and keep his people’s attention away from the country’s economic downturn and the population’s lack of basic rights and democratic freedoms, does not seem sustainable in the long term. Democratic hopefuls may get their wish.

An implosion may not bring about a positive outcome, however, as Russia’s own experience with the dismantling of the Soviet Union shows. The chaotic end of the Soviet Union, and the subsequent rollercoaster of what the West called reform, but many Russians called ruin, had frightening consequences. It largely discredited democracy in the eyes of Russians. They do not want to go through anything similar again.

The sad truth is that only time and more failure can push Putin from his throne. Direct external pressure will only serve to ignite the volatile mix of nationalism and fear—of the past and the future—that reigns in Russia. The West must do its best to make Putin an anachronism, to show Russians that there is a better world. If the United States wants to see Putin out of power, it must be ready for a Russia without Putin and a period of turmoil that could make the end of the Soviet Union look downright peaceful in comparison. The media can help by focusing less on Putin as an epic villain and more on the system that he’s created, how that system blights Russia’s present, and the problems it is likely to bequeath to our common future.  

Simon Hoellerbauer is a research intern with the Foreign Policy Research Institute’s Project on Democratic Transitions and a graduate of Kenyon College. He can be found on Twitter at @hoellerbauers. Melinda Haring is a fellow at the Foreign Policy Research Institute. 

 

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Putin’s Hidden Victims

It has been nearly three years since Russian President Vladimir Putin signed a law banning American families from adopting Russian children.  Many viewed the law as retaliation for the Magnitsky Act, which the US Congress had passed the month before, rebuking the Russian government for its terrible human rights record. Putin’s tit-for-tat response brought Russia’s deplorable human rights situation— especially in Russian orphanages—into focus.

Harvard Law professor and child welfare expert Elizabeth Bartholet described the ban as “cynical and brutal.”

But the outrage was not limited to the international community. Even within Russia there was a significant backlash.  Shortly after Putin announced the ban, 20,000 Russians marched with protest signs, shouting “Shame on the scum!”  Putin’s political game unfairly victimized children and condemned many to live out their childhoods in state-run institutions.

Putin responded to the criticism coyly. “We must do all we can so that orphaned children find their families in their home country, in Russia,” he said.

Today there are approximately 700,000 children in the country’s orphanage system. Nearly 95 percent have at least one living parent.  These children are not “orphans” in the traditional sense; the government coined the handy phrase “social orphan” to describe children whose parents have relinquished their parental rights.  According to official statistics, more than 100,000 children are abandoned annually.

Prior to Putin’s draconian ban, Americans adopted the highest number of Russian children each year.  In 2011, Americans adopted more than 1,000.

While developed countries rejected orphanages decades ago—placing children in adopted families or foster care—Russia has maintained its vast labyrinth of institutions, which house children from birth to the age of emancipation (generally age 17). The orphanage system and the physical buildings themselves are holdovers from the Soviet Union. Children are typically undernourished and receive inadequate medical care. International human rights organizations have documented physical abuse and neglect of the children in Russia’s residential care, including the widespread practice of tying children with ropes or rags to their cribs, leaving children lying on floors for hours at a time, and medicating children with sedatives to get them to sleep.  

Children in orphanages are isolated and hidden from view.  They do not attend regular schools, and the education they receive within the orphanage, if any, is insufficient. The official protocols state that children in residential care should not visit family members for fear that they may get used to the attention and become “spoiled.”

The situation for children with disabilities is even worse. Disabled children spend the vast majority of their day in so-called “lying down” rooms—rooms with cribs where children are left in cribs or on floor mats, unable to move. They have few, if any, opportunities to play outside, interact with other children, or play with toys.

State officials and doctors often pressure parents of children with disabilities to relinquish their parental rights, making the false claim that state institutions can provide better care for children with special needs. This pressure accounts for why more than 40 percent of children in residential care have some form of disability.

Back in 2012, as Russia banned US adoptions, the government promised to ramp up its efforts to de-institutionalize children and place them in families. But for the hundreds of thousands of children trapped in the system, Putin’s promises have amounted to very little.  His adoption ban, ostensibly aimed at harming the United States, has denied thousands of children the opportunity to escape Russia’s orphanages and become part of a family.

If Putin’s administration wants make good on its 2012 promise, it should take three steps immediately: first, it should increase the resources for programs and initiatives to keep families together and prevent children, especially disabled children, from entering the orphanage system; second, it should accelerate the process of de-institutionalizing children by increasing the number of adoptions both domestic and international and encouraging Russian citizens to become foster parents; and third, it should improve the care children in state institutions receive, ensuring that children are not abused and that they receive adequate nutrition, medical care, and education.

It’s time to put an end to the horrific treatment of Putin’s hidden victims and demand that Russia modernize its backward orphanages.  

Shonda Werry is an expert on Russia and international adoption. Melinda Haring is a Fellow at the Foreign Policy Research Institute.  

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