Russia strengthening its economic positions

Russian analysts think that the world economic crisis is an internal challenge for Russia as well as posing obstacles for the integration of structures and bilateral alliances in the CIS.

Despite being in crisis Russia has started using its financial reserves to assist its strategic allies. For instance it has promised to allot Armenia USD 500 thousand million as a stabilization credit. Kyrgyzstan will receive assistance worth USD 2 billion. Belarus has already received USD 1 billion, half of the promised amount. There are also negotiations being held about issuing USD 5 billion in credit to Ukraine as well. The analysts think that Russia does not actually want to issue these credits but is being forced to in order to retain its influence and the prospect of further strengthening its position, as neighbouring countries might otherwise reorient their politics towards Washington and Brussels.

If Moscow can actually afford such large scale assistance to neighbouring countries this shows it really can become a leader in reality rather than words. In order to bolster this impression Russia is proposing different initiatives, for instance recently the Kremlin initiated a multi-aspect agreement between CIS countries concerning free trade. However the possible inability of its allies to repay these loans represents a risk for Russia.

For Moscow it is of vital importance to ensure the uninterrupted transit of its energy to consuming countries. Therefore although Russia faces serious challenges its political leadership is prepared to take these risks.