Russia: Friction With the West, New Ties With the East

After stalled reforms, intervention in Ukraine and an alleged role in shooting down a Malaysian passenger jet, Russia has lost international goodwill. So like the United States, Russia is conducting its own pivot to Asia: “Rather than retreating from globalization, Russia, some think, is instead redefining it. Russia is choosing to look east rather than west,” suggests Laurence Neville for Global Finance. “This pragmatic view recognizes Asia’s role as the 21st century’s engine of growth.” Military interventions sap economic strength, reduce trust with the larger international markets and distract political leaders from reforms needed at home. Neville points out that Gazprom’s $400 billion, 30-year gas deal with China may typify a new strategy as Russia continues to rely on commodities, work with emerging markets and seek alternatives in financing. Analysts suggest that China, more so than Russia, will benefit from such deals. – YaleGlobal