Paul Lachine

The Return of the Siloviki

Russian Prime Minister Vladimir Putin recently announced that Russia, Belarus, and Kazakhstan have abandoned their separate talks to join the WTO. This amounts to a major reversal of Russian policy, and one that shows who is really in charge in Russia - Putin and his authoritarian, isolationist cronies from the security apparatus, not President Dmitry Medvedev.

STOCKHOLM – Russian Prime Minister Vladimir Putin recently announced that Russia, Belarus, and Kazakhstan have abandoned their separate talks to join the World Trade Organization. Instead, they would seek to enter the world trade body as a single customs union. In effect, this means that Russia seems to be casting aside its accession to the WTO – a major reversal of Russian strategy.

Putin’s statement hit like a bolt from the blue. Two days earlier, United States Trade Representative Ron Kirk and European Union Trade Commissioner Catherine Ashton had completed successful talks on Russia’s accession to the WTO with Putin’s first deputy, Igor Shuvalov, Finance Minister Alexei Kudrin, and Minister of Economy and Development Elvira Nabiullina. As late as June 3, Putin had declared himself sure of Russia’s “swift joining of the WTO.”

The leaders of Belarus or Kazakhstan seemed equally surprised by Putin’s statement, especially as Russia had just prohibited almost all imports of dairy products from Belarus in a protectionist ploy. After 16 years of negotiations, Russia appeared poised to join the WTO within a couple of months.

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