RUSSIA IS USING FINANCIAL RESERVES TO ASSIST ITS STRATEGIC ALLIES

PanARMENIAN.Net
26.02.2009 23:53 GMT+04:00

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 neighboring countries might otherwise reorient their politics
towards Washington and Brussels.

If Moscow can actually afford such large scale assistance to
neighboring 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, The Messenger Online reports.