Greater Threat To Moscow Than Sanctions

Greater Threat To Moscow Than Sanctions

Igor Muradyan, Political Analyst
Comments – Saturday, 22 March 2014, 15:40

Sanctions are a key instrument in international politics, and in some
cases they may act as an effective political lever. However, modern
history does not account for a case when sanctions forced a country to
give up on its genuine national interests.

Sanctions that are used by certain states against a discriminated
state are mostly (or always) levers not only on the given state but
also many other processes in international politics. Sanctions in the
hands of countries with developed economies and high technologies are
not a means of pressure but an opportunity for corrections in new
markets, trigger of progress in the geo-economic situation and
eventually generating profit or rather super profit.

Hence, in the majority of cases sanctions are levers for changing the
balance of forces in the world and in the regions. The policy of
sanctions has allowed working out the necessary methods and approaches
to the activities of banks, manufacturers and trading companies,
bringing positions of governments in line, guiding propaganda. The
sanctions imposed on Iran by the United States and its partners
allowed forming several subsequent approaches to policy on the Near
East and other regions, block the activities of entire branches and
banking grounds in different countries, which was quite effective in
some cases. The process of gradual lifting of sanctions is no less
effective.

There is not a single state which does not undergo economic and legal
sanctions, even such a state as Russia with its resources and market.
Non-accession of Russia to the World Trade Organization was a
sanction. So were the restrictions applied for the law on emigration
of Jews. Lifting of one restriction or another did not result in the
success of the Russian economy because its national management was not
able to use it appropriately but on the whole Russia felt uneasy in
the global economics.

At the same time, some states easily bypass economic sanctions, having
universal natural resources, which was demonstrated by Iran. Iran’s
consent to normalize relations with the West was not determined by
sanctions. The economy of Iran is facing complications due to
tendencies in global economy, not only sanctions. Iran has completed
the main part of its programs of scientific and technical
modernization, created modern branches of manufacturing, defense
industries, scientific trends, and has now stepped on the world arena
with new positions, becoming a regional mini power at least.

Iran’s integration in global political processes would slow or limit
its scientific and technical development, especially the military
industries. Now it is time to overcome the international blockade when
the situation in the Near East determined rapprochement and close
cooperation between the United States and Iran. It should be noted
that all through the three decades of blockade the scientific and
technological modernization of Iran was based on American and European
machines and R&D achievements.

More or less serious investments are made with different risks which
depend not only on the internal situation and threats but also the
positions and interests of the governments of the countries which make
investments. If a country is recognized as a not so reliable political
partner, if the sources of investments are not able to exercise
control on the country, the projects are threatened. It is something
elementary. In Russia corruption is flourishing, conflicts and
problems occur on its borders, there are social problems. However,
transnational companies are used to working in such conditions
provided that Russia and the other state have a binding relationship.
In other words, if it is not marginal, it diminishes risk.

Russia is in a different situation and has greater ambitions in
international politics, imagining itself to be one of the world
powers. The West will never make a decision that will not be in line
with its or its partners’ interests, and it is not facing any damage
from sanctions against Russia. Russia will remain a supplier of energy
resources and consumer of products of Western states.

In this case, however, imposing “sanctions” on Russia means something
else, which is a challenge. The masters of world politics and
economics – let’s call G7 so – are interested in participation in
making elite decisions on economy which allow generating super profit.
Not only the “classic trade” countries of the West but also “classic
industrial” states are highly interested in this. Generating super
profit allows states to resolve the defense and security issues
successfully, make internal investments of strategic importance,
foster R&D.

Aside from different financial tricks, generation of super profit
supposes dividing spheres of influence, particularly the most
profitable industries, as well as some regions. Participation in
decision making and the presence of elite states supposes the image of
political leaders and exclusion of any forms of foreign geopolitical
and economic blockade. Moscow undertook the international battle for
the sake of Russia’s and Putin’s position. This politics is an
achievement for the West, especially for certain political circles in
Washington.

As to sanctions on Russia, they had been applied earlier, before the
developments in Ukraine. The purpose of sanctions was geopolitical
blockade, and Moscow understood that lack of development is due to
this blockade. Sanctions are meant to not only limit economic
development of Russia but also make it marginal. This policy is
considered not for several years but for decades because the West has
understood that it is possible and it is necessary.

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From: Baghdasarian

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