February 21, 2007

The Beginning [WIGOR, part 1]


Several million years ago (ask a geologist for an exact figure), the landmass that would one day become Russia was gifted huge oil, gas and mineral deposits. In fact, they were such rich and deep deposits that even 70 years of communist ineptitude could not entirely wipe them out. Some boring, but telling facts:


  • OIL: By one estimate, 20% of the world's known oil reserves are in Russia. Russia currently supplies the US with 4% of its oil.

  • GAS: 25% of the world's proven reserves of gas are in Russia. Western Europe currently depends on Russia for 28% of its gas supplies; Germany alone depends on Russia for an estimated 40% of its natural gas (and 18% of its oil).

  • MINERALS: Russia contains the world's largest diamond reserves, and the second largest coal reserves (17% of the world's known reserves). Nearly a third of all tin and iron ores are in Russia, as are over 40% of all platinum group minerals and over a third of all nickel reserves.



Russia is not soon going to be an exporter of finished industrial goods or competitive services (with a notable exception being computer programming - more about that another time). But right here, right now, it is a global powerhouse in the trade for energy and natural resources.

Expect Russia to exploit this fact as would any nation in its position.

Expect Russia's leaders to be interested not in preserving the volatile international market for energy commodities, but to instead bank on long term contracts which give them some important price protections.

Expect the Kremlin to continue to do all it can to "verticalize" any and all "strategic" industries, to be defined as industries on which the economic future and security of Russia depend. This means not just oil and gas and minerals, but nuclear technology, aerospace and transportation, among others.

Expect that the leaders of these industries and sectors will be the up and coming leaders of the country. Thus, one of the most important facts on the resume of Dmitry Medvedev, who is the current front runner for president in 2008, is his position as Chairman of the Board of Gazprom, the gas monopoly. It is also why Sergei Ivanov, formerly Defense Minister, was transferred away from that post this month to test his mettle running some industrial sectors of the economy.

To wit: According to the Moscow information agency Medialogia, out of 2,064 news stories on Dmitry Medvedev last year, there was not a single negative report on the news broadcasts of six television channels, including the three major national stations. There were 17 negative reports on Ivanov, most of them centered on a brutal hazing incident in the military to which he was slow to respond. Anyone being groomed to compete for the top slot needs to get away from that kind of environment...

Expect that Russia will take a hostile attitude to any country or entity which seeks to limit its ability to do whatever the hell it pleases with its natural resources, interpreting same as a threat to the stability of the Russian economy. Witness the blow-ups with Ukraine and Belarus in the last year. Both of those former Soviet republics wanted to prolong their subsidized prices for gas. Russia - in a rather ham-handed way - was seeking to end this practice and have oil and gas prices at international levels.

Except domestically. For now.

The lumbering Soviet era enterprises have to be helped along, after all. And it does not hurt to have industry dependent on the State, now does it?

Which brings us to the subject of my next observation...
Like this post? Get a weekly email digest + member-only deals

Some of Our Books

Fish: A History of One Migration

Fish: A History of One Migration

This mesmerizing novel from one of Russia’s most important modern authors traces the life journey of a selfless Russian everywoman. In the wake of the Soviet breakup, inexorable forces drag Vera across the breadth of the Russian empire. Facing a relentless onslaught of human and social trials, she swims against the current of life, countering adversity and pain with compassion and hope, in many ways personifying Mother Russia’s torment and resilience amid the Soviet disintegration.
The Samovar Murders

The Samovar Murders

The murder of a poet is always more than a murder. When a famous writer is brutally stabbed on the campus of Moscow’s Lumumba University, the son of a recently deposed African president confesses, and the case assumes political implications that no one wants any part of.
Dostoyevsky Bilingual

Dostoyevsky Bilingual

Bilingual series of short, lesser known, but highly significant works that show the traditional view of Dostoyevsky as a dour, intense, philosophical writer to be unnecessarily one-sided. 
Maria's War: A Soldier's Autobiography

Maria's War: A Soldier's Autobiography

This astonishingly gripping autobiography by the founder of the Russian Women’s Death Battallion in World War I is an eye-opening documentary of life before, during and after the Bolshevik Revolution.
The Pet Hawk of the House of Abbas

The Pet Hawk of the House of Abbas

This exciting new trilogy by a Russian author – who has been compared to Orhan Pamuk and Umberto Eco – vividly recreates a lost world, yet its passions and characters are entirely relevant to the present day. Full of mystery, memorable characters, and non-stop adventure, The Pet Hawk of the House of Abbas is a must read for lovers of historical fiction and international thrillers.  
The Little Humpbacked Horse (bilingual)

The Little Humpbacked Horse (bilingual)

A beloved Russian classic about a resourceful Russian peasant, Vanya, and his miracle-working horse, who together undergo various trials, exploits and adventures at the whim of a laughable tsar, told in rich, narrative poetry.
White Magic

White Magic

The thirteen tales in this volume – all written by Russian émigrés, writers who fled their native country in the early twentieth century – contain a fair dose of magic and mysticism, of terror and the supernatural. There are Petersburg revenants, grief-stricken avengers, Lithuanian vampires, flying skeletons, murders and duels, and even a ghostly Edgar Allen Poe.
The Little Golden Calf

The Little Golden Calf

Our edition of The Little Golden Calf, one of the greatest Russian satires ever, is the first new translation of this classic novel in nearly fifty years. It is also the first unabridged, uncensored English translation ever, and is 100% true to the original 1931 serial publication in the Russian journal 30 Dnei. Anne O. Fisher’s translation is copiously annotated, and includes an introduction by Alexandra Ilf, the daughter of one of the book’s two co-authors.
A Taste of Russia

A Taste of Russia

The definitive modern cookbook on Russian cuisine has been totally updated and redesigned in a 30th Anniversary Edition. Layering superbly researched recipes with informative essays on the dishes' rich historical and cultural context, A Taste of Russia includes over 200 recipes on everything from borshch to blini, from Salmon Coulibiac to Beef Stew with Rum, from Marinated Mushrooms to Walnut-honey Filled Pies. A Taste of Russia shows off the best that Russian cooking has to offer. Full of great quotes from Russian literature about Russian food and designed in a convenient wide format that stays open during use.
Fearful Majesty

Fearful Majesty

This acclaimed biography of one of Russia’s most important and tyrannical rulers is not only a rich, readable biography, it is also surprisingly timely, revealing how many of the issues Russia faces today have their roots in Ivan’s reign.

About Us

Russian Life is a publication of a 30-year-young, award-winning publishing house that creates a bimonthly magazine, books, maps, and other products for Russophiles the world over.

Latest Posts

Our Contacts

Russian Life
73 Main Street, Suite 402
Montpelier VT 05602

802-223-4955