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

Murder and the Muse
December 12, 2016

Murder and the Muse

KGB Chief Andropov has tapped Matyushkin to solve a brazen jewel heist from Picasso’s wife at the posh Metropole Hotel. But when the case bleeds over into murder, machinations, and international intrigue, not everyone is eager to see where the clues might lead.

Marooned in Moscow
May 01, 2011

Marooned in Moscow

This gripping autobiography plays out against the backdrop of Russia's bloody Civil War, and was one of the first Western eyewitness accounts of life in post-revolutionary Russia. Marooned in Moscow provides a fascinating account of one woman's entry into war-torn Russia in early 1920, first-person impressions of many in the top Soviet leadership, and accounts of the author's increasingly dangerous work as a journalist and spy, to say nothing of her work on behalf of prisoners, her two arrests, and her eventual ten-month-long imprisonment, including in the infamous Lubyanka prison. It is a veritable encyclopedia of life in Russia in the early 1920s.

Survival Russian
February 01, 2009

Survival Russian

Survival Russian is an intensely practical guide to conversational, colloquial and culture-rich Russian. It uses humor, current events and thematically-driven essays to deepen readers’ understanding of Russian language and culture. This enlarged Second Edition of Survival Russian includes over 90 essays and illuminates over 2000 invaluable Russian phrases and words.

A Taste of Russia
November 01, 2012

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.

Woe From Wit (bilingual)
June 20, 2017

Woe From Wit (bilingual)

One of the most famous works of Russian literature, the four-act comedy in verse Woe from Wit skewers staid, nineteenth century Russian society, and it positively teems with “winged phrases” that are essential colloquialisms for students of Russian and Russian culture.

The Latchkey Murders
July 01, 2015

The Latchkey Murders

Senior Lieutenant Pavel Matyushkin is back on the case in this prequel to the popular mystery Murder at the Dacha, in which a serial killer is on the loose in Khrushchev’s Moscow...

The Pet Hawk of the House of Abbas
October 01, 2013

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.

 
Faith & Humor
December 01, 2011

Faith & Humor

A book that dares to explore the humanity of priests and pilgrims, saints and sinners, Faith & Humor has been both a runaway bestseller in Russia and the focus of heated controversy – as often happens when a thoughtful writer takes on sacred cows. The stories, aphorisms, anecdotes, dialogues and adventures in this volume comprise an encyclopedia of modern Russian Orthodoxy, and thereby of Russian life.

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