Skip to main content

Zero Sum Game

The government of the Russian Federation continues to act as though there is no such thing as a win-win solution. The country continues to through its weight around in almost every sphere: the seizure of Georgian mineral water (see link) is just the latest in a series of heavy handed restrictions on trade with countries that the regime in Moscow doesn't like. Essentially Russia continues to believe that if someone wins in a negotiation with Moscow, then by definition the Russians must have lost. Economics has become a continuance of politics, or even war, by financial means.

This one eyed view in Moscow has led to some extraordinary situations. For example the gold collar of office of the pre-war President of Estonia remains in the Kremlin, despite the fact that the Russian Federation can have no earthly claim over it. Russia therefore still retains the treasures that their Soviet predecessors looted from other countries- whether these are jewels or, for example, the library of the University of Tartu.

The Russian company, Gazprom, is seeking greater access to the European market, and as a supporter of free trade, I do not disagree that ultimately they should have this. However, the Russians should understand that unless they learn better manners, they will continue to be mistrusted. The fact that yet another newspaper, this time Komsomolskaya Pravda, has been taken over by Gazprom in order to serve the Kremlin only adds to the growing body of evidence that Russia has abandoned democracy for the time being. It also underlines the fact that Gazprom, already the largest company in the world, is de facto an organ of the Russian State. Therefore, the discussions taking place between British Gas and Gazprom should be seen in a rather critical light. Personally, I believe that the fact that Russia continues to use Gazprom and UES, the giant power utility, as functionaries of the state should render them ineligible to invest in the European Union, at least until sufficient restructuring has taken place that allows Russian entry into the WTO. Since Russians continue to believe that economics is a zero-sum game, then perhaps we should make sure that every point of contact is now a matter for negotiation- only then may the Russians begin to understand that they must adapt a more liberal approach in business affairs as well as in international politics.

The alternative for a declining West may be that our corporate treasures end up in the Kremlin, together with all the other things that have been stolen in previous generations.

Comments

Popular posts from this blog

Concert and Blues

Tallinn is full tonight... Big concerts on at the Song field The Weeknd and Bonnie Tyler (!). The place is buzzing and some sixty thousand concert goers have booked every bed for thirty miles around Tallinn. It should be a busy high summer, but it isn´t. Tourism is down sharply overall. Only 70 cruise ships calling this season, versus over 300 before Ukraine. Since no one goes to St Pete, demand has fallen, and of course people think that Estonia is not safe. We are tired. The economy is still under big pressure, and the fall of tourism is a significant part of that. The credit rating for Estonia has been downgraded as the government struggles with spending. The summer has been a little gloomy, and soon the long and slow autumn will drift into the dark of the year. Yesterday I met with more refugees: the usual horrible stories, the usual tears. I try to make myself immune, but I can´t. These people are wounded in spirit, carrying their grief in a terrible cradling. I try to project hop

Media misdirection

In the small print of the UK budget we find that the Chancellor of the Exchequer (the British Finance Minister) has allocated a further 15 billion Pounds to the funding for the UK track and trace system. This means that the cost of the UK´s track and trace system is now 37 billion Pounds.  That is approximately €43 billion or US$51 billion, which is to say that it is amount of money greater than the national GDP of over 110 countries, or if you prefer, it is roughly the same number as the combined GDP of the 34 smallest economies of the planet.  As at December 2020, 70% of the contracts for the track and trace system were awarded by the Conservative government without a competitive tender being made . The program is overseen by Dido Harding , who is not only a Conservative Life Peer, but the wife of a Conservative MP, John Penrose, and a contemporary of David Cameron and Boris Johnson at Oxford. Many of these untendered contracts have been given to companies that seem to have no notewo

One Year On

  Head vabariigi iseseisvuspäeva! Happy Estonian Independence Day! It is one year since I stood outside the Estonian Parliament for the traditional raising of the national flag from Tall Hermann tower. Looking at the young fraternities gathered with their flags, I was very sure that Estonia too would soon be facing the aggression of the criminal Russian regime. A tragic and dark day. 5 eyes intelligence had been clear: an all out invasion was going to happen, and Putin´s goals included- and still include- "restoration" of Russian imperial power across Europe, even to the Atlantic. Yet there was one Western intelligence failure: we all underestimated the guts of the Ukrainian armed forces, the ZSU, and its President and people. One year on, Estonia, and indeed all the front line states against Russia, knows that Ukraine saved us. Estonia used that time to prepare itself, should that "delayed" onslaught ever be unleashed, but equally the determination of Kaja Kallas,