Country Report: Russia Key Recent Term Paper

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Russia has accused Georgia of allowing Chechen rebels to move freely and providing safe haven to them for launching terrorist attacks from across the border.

Relations with Neighboring Countries

The Commonwealth of Independent States (CIS) was formed by 12 of the 15 former Soviet Republics after the collapse of the Soviet Union in 1991 to preserve some of the political and economic ties. Russia's relations with the CIS countries have, however, been dogged by mutual distrust. Sources of tension between Russia and CIS members include the issue of claim over military assets belonging to the Soviet Union and the status of Russians settled in the former Soviet republics. Most of the disputes about assets have now been settled but such disputes have left a bad taste in the mouth and the initial optimism about the CIS becoming even a loose confederation has not been realized. ("Russia: Foreign Relations," 2005)

Russia's relations with the neighboring Ukraine were particularly strained due to their dispute about the vital Black Sea Fleet and military installations on the Crimean peninsula. Kremlin's ham-handed but unsuccessful interference in a fraudulent November 2004 presidential election in Ukraine has been a serious setback for Russia.

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The setback is likely to have a corrosive effect on its influence in other former Soviet Republics as the failure reflects Kremlin's weakness, encouraging its neighbors to take a more independent line and seek closer ties with other more powerful countries. On the other hand, Russia's relations with its other neighbors such as China, Korea and Japan have generally improved since the collapse of the Soviet Union.

The Obstacles to Progress

On the political front, the authoritarian tendency of the Putin regime and its uncompromising Chechen policy has created strains in its relations with the EU and other Western powers. In the economic field, Russia's economy is still heavily dependant on its oil resources; failure to effectively restructure the major industrial conglomerates; absence of a small and medium-sized enterprise sector in the economy, along with a tendency to set unrealistically low prices of vital items such as the energy prices are formidable obstacles to meaningful progress on the economic front. Other major obstacles to progress are a weak judicial and banking sector and widespread corruption in the bureaucracy......

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