Russia demonstrated to the world its restored power and global status when it played host to the Group of Eight summit at St. Petersburg. President Vladimir Putin greeted his guests on the steps of a sumptuously refurbished 18th century imperial palace — as the leader of an ascendant world power with a booming economy, which produces more energy than any other country, has built up some of the world's largest currency reserves, and made its currency fully convertible. Over the past five years, real wages across the Russian Federation have risen 75 per cent and the budget surplus is running at 12 per cent. The West needs Russia's oil and gas, and its cooperation in dealing with new challenges, whether it be energy security, terrorism, Iran's nuclear programme or escalating violence in West Asia. President Putin has outlined a matching strategic goal of integrating Russia with the world economy, but has also made it clear he will not tolerate any patronising. It was gratifying that Russia's western partners in the G8 seem to have left behind at home their lectures to Mr. Putin on the state of democracy in his country, although it must be noted that influential sections of the western media spared no effort to discredit Russia's G8 membership during the run-up to the summit.
Nobody, friend or foe, has the slightest doubt that resurgent Russia is dealing from a position of strength. Mr. Putin coolly asserted his agenda, getting the G8 to issue an unexpectedly positive statement on global energy security. Among other things, this sets the goal of providing billions of people in developing countries sustainable access to fuels. It also takes account of Russian concerns regarding access to energy markets and downstream assets in Europe and America. Further, Russia reached a breakthrough agreement with the United States to jointly develop nuclear energy as an alternative to hydrocarbons and to combat nuclear terrorism. Even though they failed to sign the much-expected agreement to clear the last hurdle to Russia's entry into the WTO, both sides are hopeful the matter will be settled before the end of the year. Drawing on its new economic strength, Russia has moved to assume a bigger role and responsibility for global affairs. It was significant that the G8 under Mr. Putin's presidency voiced solidarity with India over the Mumbai terror strikes and hailed India's non-proliferation efforts. Russia has used the rotating presidency to build closer interaction between the G8 and the outreach countries. President Putin drew a vision of an expanded G8 that would include India, China, and other outreach countries, and thus transform a rich man's club into a more representative forum to address new threats and challenges and "shape a new architecture of international relations." Russia's resurgence is greatly to India's advantage — if only New Delhi understood this better and acted on that realisation!
Nobody, friend or foe, has the slightest doubt that resurgent Russia is dealing from a position of strength. Mr. Putin coolly asserted his agenda, getting the G8 to issue an unexpectedly positive statement on global energy security. Among other things, this sets the goal of providing billions of people in developing countries sustainable access to fuels. It also takes account of Russian concerns regarding access to energy markets and downstream assets in Europe and America. Further, Russia reached a breakthrough agreement with the United States to jointly develop nuclear energy as an alternative to hydrocarbons and to combat nuclear terrorism. Even though they failed to sign the much-expected agreement to clear the last hurdle to Russia's entry into the WTO, both sides are hopeful the matter will be settled before the end of the year. Drawing on its new economic strength, Russia has moved to assume a bigger role and responsibility for global affairs. It was significant that the G8 under Mr. Putin's presidency voiced solidarity with India over the Mumbai terror strikes and hailed India's non-proliferation efforts. Russia has used the rotating presidency to build closer interaction between the G8 and the outreach countries. President Putin drew a vision of an expanded G8 that would include India, China, and other outreach countries, and thus transform a rich man's club into a more representative forum to address new threats and challenges and "shape a new architecture of international relations." Russia's resurgence is greatly to India's advantage — if only New Delhi understood this better and acted on that realisation!