Part1: Summary of articles
Thearticle “B2B: International arbitration in Russia and the focus onAsia” was written by Alevtina Kamelkova. The article was publishedin St. Petersburg Times on April 13, 2015. Geopolitics is the maintheme that Kamelkova addresses in the article. Kamelkova focuses onthe geopolitical situation that Russia has found itself afterconflicting with Ukraine. Conflicts that Russia has experienced withits neighbors have made it difficult to do business with Europe. Kamelkova recommends that Russia should divert its attention to otherparts of Asia and the Middle East. The crisis between Russia and themost of the European countries has resulted in several challenges(such as access to visa) that make business difficult. Russia hasbeen using international arbitration to resolve emerging geopoliticalissues. Kamelkova asserts that the capacity of Russian businesspeople to overcome geopolitical risks that result from thesearbitrations will continue as a long-lasting trend.
Thearticle “Expected rate cuts cause Russian bond rally to impactlocal debt” was written by Smeyve Maxim. The main theme covered inthe article is economics, where Smeyve discuses the impact of cuts ininterest rates in the price of foreign bonds. The price of theRussian dollar bond that is due 2030 increased by 18 % in 2015, whilethe premium paid on the bond shrunk by 2 %. Gains in bonds wereattributed to Russian banks that retained some spare dollars asimports plunged and ruble appreciated. The central bank doled outabout $ 30 to local banks in order, but this decision made itcostlier for banks to borrow funds. The extensive governmentintervention to regulate bond prices is reduces the attractiveness ofthe Russian bonds to foreigners.
Thearticle “Defiant Putin says Russian will survive economic crisisand western sanctions” was written by Kremli. The article waspublished in St. Petersburg Times on April 16, 2015. The main themescovered in the article include geopolitics and economics. Kremlipresent Putin’s argument that Russian’s economy is stable enoughto withstand the current geopolitical challenges, including the tradesanctions imposed by the western world. The government of Russiaestimates that the national economy will return to normal in lessthan two years. Apart from trade sanctions, Russia faces severalother economic challenges, include the decline of the price of oiland gas in the global market. Oil is one of the major exports thatsupport the Russian economy. Conflicts between Russia and the westerncountries resulted from Russia’s decision to use the military forcein Ukraine.
Thearticle “U.S. expansionism to blame for Ukraine crisis, Russiandefense minister says” was written by Jonathan Ernst. The articlewas published in St. Petersburg Times on April 16, 2015. The maintheme that Ernst focuses on the accusations that Russia has receivedfrom the western countries as a result of the geopolitical conflictstaking place between Russia and Ukraine over Crimea. The topofficials of the Russian government stated that countries that havebeen blaming it for crisis in Ukraine want to foster their militaryand political dominance in the world while suppressing othercountries. For the first time, Russia acknowledged that it wasprompted to react by attempts by the European countries to dominatetake away Kiev. This move would deny Russia a lot of businessopportunities.
Thearticle “Russian problems take precedence over Ukraine duringPutin’s annual show” was written by Maxim Shemetov and publishedin St. Petersburg Times on April 16, 2015. Shemetov reported that thedeterioration of the Russian economic crisis is now forcing Putin tochange the position of the Russian government regarding its role inUkraine crisis. For example, President Putin declared that there willbe no war in Ukraine and stated that there are no more Russian troopsin Crimea. The president added that the western countries cannot beheld responsible for the decision made by Ukraine to turn to Europeand turn away from trading with Russia. These statements indicatedthat the Russia’s priority have changed from foreign policy toimmediate needs of citizens who are mainly concerned with thedeterioration of the national economy.
Thearticle “Moscow can’t afford foreign performers” was written byAnastasia Bazenkova and published in St. Petersburg Times on April16, 2015. Bazenkova analyzes how the Russian entertainment industryhas suffered from the recent economic crises that are attributed totrade sanctions imposed against Russia by western countries. Theauthor states that the crisis has impoverished Russians to a levelthat they cannot afford to pay tickets for performances organized byforeign artists. Bazenkova estimated that the number of foreignartists performing in Russia has decreased by about 95 % within aperiod of one year. Apart from lack of money to pay for internalconcerts, the currency exchange crisis that Russia is experiencing isa big challenge to foreigners who wish to organize concerts inRussia.
Part2: Globalization of Russian Economy
Russiawas one of the key players in the global economy just before theoccurrence of serious crisis in Ukraine. It is widely believed thatRussia played a major rule of inciting the majority of Russiansliving in Crimea to initiate the crisis in an attempt to preventUkraine from establishing trade ties with the European Union (Mushet,2015). Russian had successfully managed to globalize its economy, butrecent sanctions have disconnected it from other parts of the world.Therefore, the process of globalizing the Russian economy anddemocratic leadership record has been halted. In essence, the processof globalization has been reversed because the former trade partners(such as U.S. and the European Union are no longer trading withRussia. The media (including the St. Petersburg Times) has beenreported the recent events that indicate that the Russian economy isheaded for a crash.
Thefall back in the process of economic globalization has affected theRussian financial market in a negative way. St. Petersburg Times hasrepeatedly reported that the foreign exchange rages for Ruble is nolonger controllable since the trade sanctions were imposed againstRussia. For example, (Mushet, 2015) reports that foreign traders findit difficult to transact with Russians because the currency markethas been totally distracted and the exchange rate cannot bepredicted. This is because trade sanctions have reduced demand forRuble, which have contributed towards its loss of value. Apart fromthe challenges affecting the currency market, Russia has beenexperiencing other challenges that have reduced its capacity towithstand economic crisis. For example, the unanticipated fall in theprice of oil in the global market has exacerbated the Russian crisis(Smeyev, 2015).
Theloss of opportunities for Russia to trade with the former tradepartners (such as the European Union) has stifled internal domesticeconomy. This can be indicated by a significant fall in the number offoreigner artists who organize concerts on Russia by more than ninetypercent within a short period of about one year (Mushet, 2015).Although many Russians supported Putin’s decision to supportsecession of Crimea from Ukraine during initial phases of the crisis,many have now realized the significance of internal relations. Thisis because economic hardships have pushed them to corners afterbreaking of the international relations (Shemetov, 2015).
AlthoughRussia has fallen short of international relations, there are severalmeasures that are being taken to salvage its economy. The firstpriority is to look for alternative opportunities that can help inthe process globalizing Russian economy. This will be achieved bystrengthening international relations with Asian countries and theMiddle East (Kamelkova, 2015). Secondly, the government has alreadydeclared the change of priority from foreign policy to a keen focuson the needs and interests of Russians who are suffering from seriouseconomic crisis (Shemetov, 2015). However, these measures may notfill the gap lefts after the western countries broke the long-termties with Russia.
Inconclusion, the process of globalizing Russia’s economy was haltedby trade sanctions imposed by the western countries against Russiafollowing its conflicts with Ukraine over Crimea. Since then,Russia’s international relations have been getting worse with time.The media has given a keen focus on the issue of Russia given that itis one of the developed countries in the world.
Ernst,J. (2015, April 16). U.S. expansionism to blame for Ukraine crisis,Russian defense minister says. St.Petersburg Times.Retrieved April 24, 2015, fromhttp://www.themoscowtimes.com/article/us-expansionism-to-blame-for-ukraine-crisis-russian-defense-minister-says/519208.html
Kamelkova,A. (2015, April 13). International arbitration in Russia and thefocus on Asia: Has the choice been made? St.Petersburg Times.Retrieved April 24, 2015, fromhttp://www.themoscowtimes.com/business/business_for_business/article/b2b-international-arbitration-in-russia-and-the-focus-on-asia-has-the-choice-been-made/519022.html
Kremlin,K. (2015, April 16). Defiant Putin says Russia will survive economiccrisis and western sanctions. St.Petersburg Times.Retrieved April 24, 2015, fromhttp://www.themoscowtimes.com/article/defiant-putin-says-russia-will-survive-economic-crisis-and-western-sanctions/519207.html
Mushet,R. (2015, April 16). Moscow can’t afford foreign performers. St.Petersburg Times.Retrieved April 24, 2015, fromhttp://www.themoscowtimes.com/article/moscow-cant-afford-foreign-performers/519268.html
Shemetov,M. (2015, April 16). Russian problems take precedence over Ukraineduring Putin’s annual show. St.Petersburg Times.Retrieved April 24, 2015, fromhttp://www.themoscowtimes.com/article/russian-problems-take-precedence-over-ukraine-during-putins-annual-show/519265.html
Smeyev,M. (2015, March 19). Expected rate cuts cause Russian bond rally toimpact local debt. St.Petersburg Times.Retrieved April 24, 2015, fromhttp://www.themoscowtimes.com/business/article/expected-rate-cuts-cause-russian-bond-rally-to-impact-local-debt/519322.html