The New Cold War

In the 1990s, Russia was the sick man of Europe, but the rise to power of former KGB officer Vladimir Putin in 1999 coincided with a huge hike in world oil and gas prices, and after Yeltsin’s downfall Putin set about re-establishing Russian autocracy. Now with its massive gas and oil reserves Russia has not only paid off its debts but amassed huge cash reserves which it is investing in easily accessible European businesses. Putin’s Russia is hostile to open debate. Critics inside Russia such as the journalist Anna Politkovskaya, and opponents abroad such as the defector Alexander Litvinenko, a British subject, have been assassinated. Russia has threatened to target its nuclear missiles on America’s allies in eastern Europe. It has resumed the military bullying of its neighbours, including repeated airspace violations; its generals play war games involving the recapture of the Baltic states.