Russians are taking to the streets as global energy prices decline and their country’s economy skids. The causes of the protests are not related-an announced tariff increase on foreign cars and the ending of transport fare discounts, for instance-but the disturbances are unsettling Moscow. “They’re incredibly scared of this,” says one high-level economic advisor in the Russian capital, referring to Kremlin officials. “They don’t know how to operate in this environment.” Says left-wing activist Vitaly Boldakov, “They can only control what’s within the Moscow ring road.”
So far, the demonstrations, confined to outlying areas, do not threaten Prime Minister Putin’s rule. Yet turbulence in the periphery foreshadows turbulence in the center. Mikhail Gorbachev and Boris Yeltsin were undone by low oil prices, and the current autocrat could be next. The Wall Street Journal puts it this way: “The prospect of further unrest poses what could be the biggest challenge yet to the authoritarian system built by Mr. Putin.”
Putin’s Russia did not take the opportunity afforded by high commodity prices to build a more sustainable economy. So Russia rode the energy wave up, and it is now riding the wave back down. Moscow, therefore, has had to continually raid its foreign exchange reserves-the third largest in the world-to defend a rapidly depreciating currency. The Russians, which once had grand aspirations for the ruble, are devaluing it weekly.
Moscow’s economic problems could not have come at a better time for us. Putin was using new-found strength to erode democracy at home, undermine Russia’s neighbors, and disrupt global stability. He revealed himself as a dangerous-and reckless-force.
For too long Washington has adopted an indulgent attitude towards Russia. Putin continually issues incredibly hostile words, and our leaders choose not to notice. For example, yesterday, the President said we should reduce tensions with Moscow because we have a “common interest” with Russia.
We do? We may have common interests with the Russian people and with Russia’s neighbors, but we have nothing in common with Moscow’s leaders. They apparently think we are locked in a zero-sum game with them, and we should agree on this one point. So let’s borrow some recently forgotten wisdom from Ronald Reagan. With regard to the Kremlin, our policy should be that we must win and they must lose.
