Russia Recognizes Independence of Georgia Separatists

August 27, 2008 in Europe, Politics, Russia | No comments

As expected, Russia defied the denunciating cries from the U.S. and E.U., and officially recognized the independence of South Ossetia and Abkhazia, which threatens to dismantle a democratic, pro-West ally. In response to what amounts to Western whining, Russian President Dmitry Medvedev’s said,

“We’re not scared of anything, including the prospect of a Cold War…”

His bravado demonstrates a newfound Russian confidence in their position of power on the world stage. They recognize that after five-plus years of fighting in Iraq and Afghanistan, the U.S. is stretched to the limit. Furthermore, the E.U. (and NATO for that matter) doesn’t have the balls to jump into an engagement with Russia. So, the Western powers are talking a good game, but diplomacy without a “big stick” to back it up is nothing more than words and saber-rattling. Recognizing the West’s emptiness, as illustrated by Konstantin Kosachev, head of Russia’s international affairs committee, told the Interfax news agency, that Western criticism of Russia’s actions will

“remain at the level of political declarations, which will quickly be consigned to the historical archive.”

Still, Russia is feeling a bit of an economic pinch due to its role in the present conflict. Per the WSJ, investors are shying away from Russian investments, pushing share prices to two-year lows:

“The benchmark RTS stock index finished the session on Tuesday 4.2% lower, at 1579.12, its lowest point since late 2006. It has also eroded the value of the ruble, which closed at 29.86 against a managed dollar-euro currency basket, down 1.5% since the start of the war early this month.”

Remember, this only represents a temporary shift and results from investors’ uncertainty. If the West doesn’t start backing-up its rhetoric with action, Russia will bounce back and become even stronger.

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