CounterPunch Exclusives

CounterPunch Exclusives

How Russia’s Backwardness Benefits Putin

The source of Russia’s global power derives not from sophisticated technology, an advanced service sector, or a cadre of entrepreneurs. Russia’s power is almost entirely backward-looking. Its geopolitical position rests on a base of prehistoric vegetation.

That vegetation, of course, has ended up as Russia’s reserves of oil, natural gas, and coal. About one-quarter of the country’s government revenues comes from fossil fuel sales. Those revenues ensure that Russia’s superpower status can’t be boiled down simply to its possession of nuclear weapons. Russia is not “Upper Volta with nukes” as the Soviet Union was famously dismissed. Petrodollars give it considerable geopolitical leverage as well as the means to wage war, most recently in Ukraine.

Consider how crudely Russia uses its crude. For some time, the dependency of certain European countries on Russian fuel imports—notably Hungary and Slovakia—has made it challenging for the European Union to forge consensus on anything related to Russia or Ukraine. Leadership change in Hungary has reduced, though not eliminated, this problem. The election of Peter Magyar has simultaneously gotten money flowing again from Brussels to Kyiv and oil flowing again, via the Druzhba pipeline, from Russia to Hungary.

It’s not just Eastern Europe. Although Europe as a whole has radically reduced imports over the last five years—from 45 percent of its gas imports to 19 percent and 27 percent of its oil to 3 percent—France, the Netherlands, and Belgium are still importing considerable amounts. Last year, the prime minister of Belgium blocked the use of Russian funds frozen in Brussels to help Ukraine. When money is blocked, follow the oil (also, don’t discount outright intimidation).

Russia, in other words, has used its energy exports to drive wedges between countries that might otherwise be allies.

These energy exports, subjected to sanctions and price caps, have also strengthened Russian ties with China and India, with those two countries combining to purchase 80 percent of Russian oil. Especially now, with the war in Iran and the U.S. blockade of the Strait of Hormuz, Russian energy beckons as a lifeline for many countries. Ukrainian attacks on Russian energy infrastructure have cut into the profits, but sales are still up.

Russia’s chief asset is also its chief weakness. Even before it launched its full-scale invasion of Ukraine in 2022, Russia depended a little too much on its own natural resources. Instead of investing in greater value-added production, Russia took the easier route of selling what it could extract from the ground, in........

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