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• 2007 has been very successful for Russia and I guess the entire world knows it now. The terms "Russia rising," "the reemergence of Moscow," and "the awaking of the sleeping bear" are pretty much heard and generally accepted all over.
  
  But in my opinion the popular opinion is way off when it comes to magnitude. I believe that Russia's rise will be (and already is) far, far greater than anyone can possibly fathom. Economically, politically, and socially, Russia will not just be among the leaders, with enough strength to maintain an independent policy and its own course. In fact, it will be setting the world's course on many occasions and it will be doing so prudently.
  
  An analogy that I am beginning to use with my friends is that Russia's fall, during the 1990s, was a strategic retreat - and that Russia is historically a master of the strategic retreat, having employed it successfully during attempted invasions by western conquerors on multiple occasions, centuries apart.
  
  Recognizing that it was in a disadvantaged position, Russia retreated to buy time, rebuild, and strike back (hence the surrender of Paris to Tsar Alexander I in 1814, 2 years after Napoleon tried to invade Russia, and Berlin to Marshall Zhukov in 1945, 4 years after Hitler tried to do the same).
  
  No one's talking about marching on Washington or London, but Russia is in the position today to ruin it and ruin it badly for the delusional empire-dreaming hawks in the United States and the United Kingdom, who prefer the weak and dying Russia of the 1990s to the strong and independent Russia of today.
  
  *
  
  
  Some of the more undocumented accomplishments of 2007 include:
  
  
  • The diversification of the economy away from oil and gas
  • The spread of prosperity from the cities to the regions
    
  • The emergence of a pretty affluent middle class that can afford a car, an apartment, and an annual trip to the Mediterranean or Southeast Asia
  • America's nightmare: Russia-India-China
    
  • Russia's return to Africa and Latin American by means of investment and trade
  • Putin's excellent relationships with Sarkozy, Prodi, and Zapatero
  • Improving ties with Latvia and Hungary
  • The increasing isolation of Russophobes in Europe, including the Kaczynski brothers, by other Europeans
  • Russia's tactical victories in the Caspian and Central Asia
    
    
  Looking to 2008, everyone makes predictions. Here are some of mine:
  
  
  • Russian birthrates, which are at something like 18-year highs already, continue to rise strongly
    
  • Russian businesses grow internationally through acquisitions that annoy western nationalists
    
  • A resurgent Russia takes first place at the medals table in Beijing
  • Ownership changes at Kashagan and Tengiz
    
  • Oil prices fall to the $50-70 range
  • As oil prices fall, Russia's economy grows even faster and GDP forecasts are increased on multiple occasions. For 2008, at least 8% growth
    
  • Better relations with a plethora of countries in Eastern Europe / FSU (basically everyone except Estonia, Lithuania, Georgia, and the Czech Republic)
  • Increasing defense ties between Russia and Israel
    

• Lithuanian president for proper relations with Russia story

• Indo-Russia economic ties on upswing in 2007 story

• Plans for a second 5-star hotel in the Moscow-City Business Center have been announced by France's Accor Group story

• Luxembourg's Bluebird Securities Saturday said it had acquired a 5.7 percent stake in Russia's second largest gas producer Novatek. Last year, Novatek produced 28.7 billion cubic metres of natural gas and reached 100 billion cubic metres in cumulative natural gas production since starting natural gas production in 1998, according to a company statement story

• Russia, US nearing nuclear industry deal story

• The Economic Times: India and Russia could jointly develop a new generation space shuttle for manned space flights and negotiations for the project are expected to begin in January, according to a top space official. "India has expressed desire to participate in the development of a new reusable manned spaceship and from January next we will discuss this issue with the Energia Rocket and Space Corporation," Chief of Russia's Federal Space Agency, Roskosmos, Anatoly Perminov said.
  
  Although Perminov did not identify the project, but 'Energia' Corporation is reportedly developing reusable spacecraft 'Clipper', which is expected to replace Soviet-designed Soyuz spaceships in Russia's national space programme. Perminov said India was Russia's privileged space partner with which it was working in different directions and has granted Indian space experts access to many of its ground control facilities story story2

• IANS: Brahmos, the world's fastest cruise missile jointly developed by India and Russia, would be assembled in Kerala, an official said here Sunday... The Brahmos can be launched from submarines, ships, aircraft or land. Brahmos is about three times faster than the US subsonic Tomahawk cruise missile. It has the capability to attack surface targets as low as 10m in altitude and has a maximum range of 290 km story

• Relations between Russia and China have a strong impact on the formation of a just world order, Russian President Vladimir Putin said. "Russian-Chinese relations provide a vivid example of friendly and mutually beneficial cooperation, based on long-term, strategic interests. Russian-Chinese political, economic and humanitarian ties have been developing vigorously, bringing visible benefits to the Russian and Chinese peoples. Strong interaction between our two countries in the world arena is an important factor of building a just world order with due account taken of civilized political-economic diversity," Putin said in a message of greetings to Chinese President Hu Jintao, according to the Kremlin press service story

• Russia plans to spend 21.9 billion rubles ($892 million) on geological exploration projects in 2008, up 11% against this year, the economics ministry said in an end-of-year report on Saturday story

• "We have achieved many objectives in politics, economy, social and demographic programs," Putin was quoted by the Itar-Tass news agency as saying. "These results serve Russia and its citizens. In return, people supported us at the recent parliament elections." Putin thanked everyone who contributed to the fulfillment of strategic plans and who worked together with him for the past eight years "on the achievement of common goals and carried out the policy of Russia's economic might, authority and influence in the world."
  
  Russia is steadily promoting its national interests worldwide, the prestige of education is growing, and the native language and literature are developing, he said. "The successful bid of Sochi for hosting Winter Olympic Games 2014 was a tangible symbol and recognition of our success," he said. "The whole country celebrated that victory. I must say that we would not have won it if we had not revived the economy, finance and political stability in Russia." "The year 2008 will be momentous for the country. Once we provide for the continuation of our policy, we will make big progress together," Putin said story story2 story3

• Russia will raise oil export duties by $58.4 to $333.8 per metric ton from February 1, in line with global market trends, a senior Finance Ministry official said on Saturday story story2 story3

• Russia is likely to be one of the top performing markets in 2008, according to online fund analyst Moneyspider.com story

• Inflation will be 11.9-12% in Russia in 2007 and 8.5% next year, the finance minister said on Saturday. The minister also said that the strong Russian economy means the finance ministry does not expect a financial crisis in Russia next year, adding that the ministry is currently drafting a 15-year financial plan for the economical development of the country story

• RIA Novosti: The average price of Russia's Urals blend oil, a benchmark for the national budget, was $69.29 per barrel in 2007, $8.2 higher than in 2006, a Russian Finance Ministry spokesman said on Saturday. Alexander Sakovich, a senior tax and duty officer at the ministry, said the figure was $88.07 for December, against $58 in December 2006. The price was initially set at $61 per barrel in this year's budget story

• Russia's Kaluga poised to be Detroit of Europe story

• A Russian icebreaker the Amderma has delivered supplies and seven British crew members of the Halley Research Station to Antarctica, a spokesman for the Far East Shipping Company said on Saturday story

• Russian railways CEO tells Putin production targets fulfilled story

• Russia has enhanced border security in the turbulent North Caucasus, the country's security chief Nikolai Patrushev told President Vladimir Putin on Saturday story story2 story3

• Eric Kraus: After the catastrophic 1990s, Russia is still establishing her place in the world. This is not some sort of popularity contest – Russia will not be awarded her rightful place by benevolent Western states happy to anoint her a major power, taking Russia’s fundamental interests to heart out of the sheer goodness of their hearts. Great powers have no durable friends – they have durable interests. Having succumbed to the illusion of Western benevolence following the collapse of the USSR, Russia is now wary of promises. Mr. Putin has been successful in reestablishing Russia as a country to be reckoned with. The fact that this week his face graces the covers of both The Economist and Time Magazine is a measure of this success. Russia can be loved or hated – feared or welcomed – but it can no longer safely be ignored...
  
  It is not surprising that this transformation is unwelcome to many in the West. Surely, it was far easier to deal with the Yeltsin regime. Pat the bear on the nose, tell him how you loved him, let him dance, applaud politely. Steely eyed and sober, Putin must be a bit chilling. Perhaps they hoped he would go away and everything would go back to normal. But he is not going away. Thus, the famously free and fair Western press – typically oblivious to the financial and political interests of its corporate owners and home governments – engaged in a multi-year barrage with a degree of coordination which might have been mistaken for a propaganda campaign. It was so futile. Putin has engineered his self-succession handily, while Russia defied the predictions of doom and gloom, and has prospered mightily.
  
  There are still some in the West who imagine they can blunt Russia’s thrust by somehow imposing their own criteria and political models. The accompanying threats are laughable – diplomatic isolation, expulsion from the G8 – conveniently forgetting that the globe is a far bigger and more diverse place than it was just a decade ago. At best this hectoring is futile – at worst counterproductive. Russia is too rich to be bribed, too strong to be threatened. Lessons in governance from the West are seen as tainted with self interest, and thus increasingly treated with scorn story

• Andrei Tsygankov: In general, Russia’s foreign policy has been a great success, not because Russia is in such a position that it no longer expects economic and political pressures from Western (and non-Western) powers. Great power politics is not going to disappear, and there will always be those interested in controlling Russia and the key position it holds in shaping the world’s military, energy and cultural power balance. Russia’s foreign policy has been a success because the United States and Europe now understand that, in the 1990s, they lost the ability to cast Russia as a junior partner. Now, new, more equal relationships with Moscow have to be designed. With all the paranoia and lack of rational discourse on the part of Russian officials, the Kremlin managed to preserve basic qualities of a sovereign power while considerably expanding a space for international integration and interdependence. Testaments to this interdependence include skyrocketing foreign investments in the Russian economy, the willingness of Western governments to cooperate with the new Duma and executive power, the Time magazine recognition of Vladimir Putin as Man of the Year, and many other indicators story

• Vladimir Frolov: In 2007, Russia continued its march toward economic prosperity and international prominence. Putin and his team have engineered a smooth political transition that would transfer presidential power into the hands of Putin’s most trusted associate Dmitri Medvedev, while allowing Putin to continue guiding the nation as Medvedev’s prime minister.
  
  On the international scene, Russia stood tall in defending its interests and vital international principles. Russia managed to block the Ahtissari plan for Kosovo’s unilateral independence arguing in favor of more diplomacy to achieve a regional settlement. On Iran, Russia provided both the sticks, when necessary to tighten the UN sanctions, and carrots in the form of reactor fuel shipments to persuade Iran to abandon its uranium enrichment program.
  
  In the former Soviet Union, Russia improved relations with Latvia (by signing and ratifying the border treaty) and Moldova, while it continued applying pressure to Estonia and Georgia. Russia worked hard to outmaneuver the United States and the EU on alternative energy routes from Central Asia and courted the new leadership in Turkmenistan to maintain the lucrative gas buy out relationship with that country. In Ukraine, Russia sought to maintain a broad base of relationships with different political groups while exerting some pressure to neutralize Yuschenko’s drive to elevate Ukrainian nationalism to the top of the country’s political agenda. Russia has improved the relationship with Europe by demonstrating that anti-Russian policies of some EU states, like Poland, would have consequences for the broader Russia-EU relationship. Of course, by digging in its heels on US missile defense plans in Europe and withdrawing from the Conventional Forces treaty, Moscow succeeded in bringing the West’s attention to Russia’s long ignored security concerns.
  
  Could Russia be named The Country of the Year? Has Russia proved to be the world’s most dynamic, vibrant and newsworthy nation in the world in 2007? Has Russia strengthened its international position? Has it gained more respect at the table of global politics and admiration at the kitchen tables of ordinary people throughout the world? In fact, has Russia become a genuine world leader in 2007? story

• Georgy Bovt: Moscow has turned into one huge marketplace in the run-up to the New Year's holiday. Judging from the traffic jams in the city, and especially those near supermarkets, the scale of this year's shopping bonanza will set a new record. Many supermarkets long ago switched to 24-hour service. Moscow now has more giant around-the-clock stores than any other city in the world, but even at night you can still encounter lines. The crowds of shoppers snatch up furniture, cars, home electronics and the latest cell phone models as fast as the Soviets used to grab potatoes from store shelves. In addition, Moscow's young women feverishly buy up fashionable clothing that costs twice what it does in Europe. It is hard to believe that Russia is a poor country.
  
  The country's consumer market is on the verge of becoming Europe's largest. Russians' real income has grown 12 percent to 15 percent annually, outstripping labor productivity by a factor of two. And if you take into consideration the robust shadow economy, actual incomes are probably growing even faster story

• President of the Russian Federation Vladimir Putin has congratulated Turkmen President Gurbanguly Berdimuhamedov on the New Year. As the Turkmenistan.ru's correspondent has learnt from the press service of the Turkmen president, in his message Vladimir Putin said "the main result of the outgoing year" was the further deepening of mutually beneficial cooperation between Russia and Turkmenistan, and realization of this cooperation, first of all, in the energy sector. "I highly appreciate the current level of our mutually trustful dialogue. I am confident that in future we can jointly strengthen the positive dynamic of development of relations between Russia and Turkmenistan, to raise the level of the comprehensive Russian-Turkmen partnership even higher in the interests of our peoples and for strengthening the stability and security in Central Asia," the Russian president noted in his message story

• The newspaper Rezonansi is reporting that Russian history textbooks will refer to Georgia as "totally dependent on the US." The newly-approved textbooks, the newspaper cites Russian media sources in saying, loosely sum up the post-Rose Revolution period by writing: "By the end of 2003, after the [ex-president Eduard] Shevardnadze regime was overthrow, Mikheil Saakashvili became the head of state and Georgia became totally dependent on the US" story

• Kalmykia: Russia's new oil and gas Klondike story

• Russia’s Gazprom is moving forward with the construction of an Iran–Armenia natural gas pipeline, the news agency Regnum reports story

• Over one hundred thousand babies were born in Moscow this year. "Nothing of the kind happened for 18 years. It is a very important indicator of what is happening in our country in general," Luzhkov said. According to the report aired by the Russian News Service radio, 11 babies who were born almost simultaneously on Wednesday were assigned the 6-digit number. Six of the newborn babies were boys and five were girls story story2

• The main factors which contributed to Russia's image in 2007 are its independent foreign policy, a shift from the primary-sector to the secondary-sector economy and the rise to power of a party which is capable of assuming responsibility for what is happening in the country, said Nikolai Bordyuzha, the Secretary General of the Collective Security Treaty Organization story

• Russia's Defense Ministry has ordered new tank support combat vehicles to boost firepower of the Ground Forces armored units, a Russian newspaper reported. The Uralvagonzavod Plant, based in Nizhny Tagil in the Sverdlovsk region, has long been developing a concept for a unique combat vehicle (Russian acronym BMPT) to provide fire support and protection for tanks on the battlefield, however its implementation has been subject to delays. The BMPT, dubbed the Terminator, is built on the basis of the most mass-produced T-72 battle tank. The new combat vehicle features enhanced armor protection and is equipped with powerful armament capable of destroying anti-tank capable ground and air targets and infantry, while operating in a common battle formation story

• Gazprom Neft and LUKoil have formed a joint oil and gas venture to implement projects in hydrocarbon production, the two leading Russian energy companies said on Friday. Gazprom Neft, energy giant Gazprom's oil division, will hold 51% and LUKoil 49% in the new Development of the Regions company and will run the joint venture on a parity basis. The company will develop fields in East Siberia and in the Komi Territory in northwest Russia story

• Poland, Russia to discuss missile defense in Warsaw, January 10 story story2 story3 story4 story5

• Sberbank expects net profit of at least 112 billion rubles ($4.5 billion) in 2007, the head of Russia's largest state-owned bank said on Friday story

• U.S. aviation giant Boeing on Thursday agreed to buy more than $1 billion worth of titanium components from domestic manufacturer VSMPO-Avisma for the 787 Dreamliner and other passenger aircraft. Sergei Kravchenko, head of Boeing in Russia, and Vladislav Tetyukhin, general director of VSMPO-Avisma, signed a five-year agreement for the supply of components from 2011 to 2015. "This contract is the biggest in the history of Boeing in Russia. I can't imagine a better gift for me and my team," Kravchenko told reporters at the signing ceremony, which was attended by Russian Technologies head Sergei Chemezov and U.S. Ambassador William Burns. The agreement is part of a plan by Boeing to invest $27 billion in Russia over the next 30 years, Kravchenko said. Titanium products will account for $18 billion of that number, he said story story2 story3 story4

• Gazprom this year held talks to join ExxonMobil's Sakhalin-1 oil-and-gas project, an unidentified person close to the gas giant said. Gazprom, which took control of Shell's Sakhalin-2 project last year, now wants a stake in Exxon's venture, Vedomosti reported Thursday. Gazprom held talks with both Exxon and its partner in Sakhalin-1, state-controlled Rosneft, Vedomosti said story

• Charles Miranda: Russia's new-found confidence stems from its booming economy. When Putin – who has been named Time magazine's Person of the Year – succeeded Boris Yeltsin in December 1999, the country was near collapse, with millions of people unemployed, state-employed bureaucrats, soldiers and scientists unpaid, and the pension scheme bankrupt. The nation split; former Russian states including Estonia, Lithuania and Hungary sided with the West. But the nation thrived as gas and oil exports drove economic growth at almost 8 per cent a year.
  
  Defence spending is now up by a quarter to $A35 billion a year. A new fleet of warships will be built, and supersonic bombers, fighters and missiles will be bought. By 2009, Russia will have one of the most advanced jet fighters in the world. On November 21, probably the most serious aggressive posturing was played out when Putin accused NATO of threatening Russian security and ordered his military to place the country's strategic nuclear arsenal on a higher state of alert. He accused the NATO alliance of increasing military resources next to his borders. About the same time, the US announced plans to set up a missile shield operation including 10 interceptor missile launchers and a radar in Poland and/or the Czech Republic. The Cold War has begun to ice again story

• Nikolaus von Twickel: "I see a never-ending stream of British businessmen coming through my office interested in, attracted by, excited by Russia," [Brenton] said. Bilateral trade is rising by 20 percent annually, with Britain becoming the largest source of foreign investment in 2006, and Russian companies are increasingly seeking financial services in London, Brenton said story

• Scott Sullivan: With its choice of Vadimir Putin as man of the year, Time Magazine has boosted Putin’s prestige and dealt a significant blow to the Ahmadinejad-Chavez alliance against Russia... In short, Vladimir Putin is now in a strong international position. Putin’s prestige is increasing, thanks to Time Magazine. Meanwhile Putin can call on powerful allies like China for support in international affairs story

• Foster + Partners: One of the world’s most ambitious building projects, Crystal Island has been granted preliminary planning permission in Moscow. Enclosed within a vast mega structure covering a total floor area of 2.5 million square metres – the project’s scale is unprecedented. At 450m the scheme in one of the tallest structures on the planet, creating a spectacular new emblem on the Moscow skyline. Conceived as a self-contained city within a city, it contains a rich mix of buildings including museums, theatres and cinemas, to ensure that it is a major new destination for the whole of Moscow...
  
  Crystal Island will have a range of cultural, exhibition and performance facilities, approximately 3000 hotel rooms and 900 serviced apartments, as well as offices and shops, designed to maintain a dynamic and animated public realm throughout the day. Residents are able to work and live within a densely planned area where every amenity is within easy walking distance, including an international school for 500 students. Mixed-use also presents a strong case for energy balance, with individual components using energy at different times, while reinforcing the breadth of economic and social activity of the area... Dynamic enclosure panels slotted into the structural framing allow daylight to penetrate deep into the heart of the scheme and can be controlled to modify the internal environment – closed in winter for extra warmth and opened in summer to allow natural ventilation. Energy management is at the heart of the design, with additional strategies to include on-site renewable and low-carbon energy generation story story2

• Russia sees end of road for space tourism story

• VLADIMIR PUTIN: You are well aware that in recent years we have begun to implement national social projects in health care, education and housing. These fields are certainly fundamental ones for any family. And long-term demographic policy measures should play a special role in this respect.
  
  For the first time in Russian history a so-called maternity capital has been introduced. And this is not only a first for Russia but for other countries as well. Birth certificates are being paid. Basic medical facilities are improving.
  
  Since the beginning of 2007 there are increased allowances for childcare. Similar benefits have been introduced for mothers that stay at home. And I already said that we will index these allowances to inflation.
  
  All of this is yielding results. In just 10 months of this year more than 1,300,000 long-awaited children were born in Russia, and this is 8 per cent more than in 2006.
  
  The necessary conditions for working parents are being implemented. Expenses on kindergartens are now partially reimbursed. The salary received for acting as foster parents have almost doubled.
  
  The wages that adoptive parents receive have also increased. This is because education within the family to a large extent determines what kind of person a child will grow up to be. Neither the state nor even the best teachers (and thank God they exist!) can replace the family.
  
  And next year we are going to continue to organize the fate of orphans. We are going to improve legislation with regards to foster care and guardianship so that this process is quicker and, most importantly, for the benefit of children.
  
  We expect to achieve visible results quickly, ie. in the short term. And the newly-created Fund to help address the problems of children in difficult circumstances has work ahead of it, and it will carry out its work with dignity transcript

• Mirax Group has become Russia’s first developer with a project in Switzerland; Mirax announced it would construct an elite Alpine ski resort in the Alps, investing roughly $300 million for this purpose story story2

• Nokia Siemens Networks, the joint venture between Siemens AG and Nokia, and Chinese Huawei won a tender for construction of a 3G network in Russia, pan-Russian mobile operator MegaFon said in a statement story

• RosBusinessConsulting: State-owned venture funds RVK and Rosinfocominvest have been set up, with assets worth RUR 15 billion and RUR 2.9 billion (approx. $607m and $117.4m). Intel Capital and Cisco also became more active. Intel focused on investment in the BRIC countries (Brazil, Russia, India and China), particularly Russia. Ashish Patel, Managing Director of Intel Capital, described Russia as a country with an incredible number of innovations. And Cisco announced plans to invest $100 million in Russian projects over the next three years... The center of investment is shifting away from the West to other countries, including Russia, due to low growth on developed market, reckons Olga Uskova, President of the National Innovation and IT Development Association. Government officials added fuel, too, speaking of economic diversification and focus on hi-tech projects story story2

• Russia's relations with Japan have been developing productively with bilateral trade volume reaching a record high of 18-19 billion U.S. dollars this year, Russian Deputy Foreign Minister Alexander Losyukov said Thursday. "On the whole, we're pleased with the development of relations with Japan," he said, adding that Russia is ready to discuss with Japan all issues, including the difficult ones story

• Russia's gross domestic product grew at an annual rate of 7.4% in November and 7.7% in January-November 2007, the economics ministry said on Thursday. Russia's Economic Development and Trade Ministry published on Thursday on its website a report on the Russian economy's performance in the first eleven months of 2007. In accordance with the report, Russia's GDP is expected to rise 7.6% in 2007 compared with the previously projected figure of 6%. Fixed capital investment in Russia grew 17.2% in November and 20.5% in January-November 2007, year on year story story2 story3

• Russia could export weaponry worth about $7.5 billion in 2008, the head of the Russian Technology state-run corporation said on Thursday. Russia has almost doubled annual arms exports since 2000, becoming the world's second-largest exporter of conventional arms after the United States story story2 story3

• Russia's state-run VTB bank said on Thursday it has sold 5% in the European Aeronautic Defense and Space Company (EADS) to another state bank Vnesheconombank story story2

• More innovative products manufactured in Russia story

• Russia has no plans to drop construction of the East Siberia-Pacific Ocean oil pipeline, a deputy foreign minister said on Thursday. The ambitious East Siberia-Pacific Ocean (ESPO) oil pipeline is slated to pump up to 1.6 million barrels per day of crude from Siberia to Russia's Far East and then onto China and the Asia-Pacific region. The project's first leg, estimated at $11 billion, is expected to be commissioned in December 2008 story

• James Heartfield: The critics are on weaker ground, though, when they question Putin’s mandate. However you look at it, Putin’s support is healthy – a lot healthier than that of most Western leaders. In successive elections, presidential and parliamentary, Putin’s brand of mainstream nationalism has won a wide base of support. Putin’s critics for the most part do not just attack Putin. They also attack the Russian people who elect him. Foremost amongst Putin’s critics are the "exiles" - Russians living abroad, many in the UK. In the first instance, these oppositionists were drawn from the disappointed intelligentsia, only later being invigorated with exiled oligarchs like Boris Berezovsky and Chelsea FC owner Roman Abramovich. This cohort blames the Russian people for failing to listen to them, and insists on seeing Putin as the reincarnation of Stalin.
  
  The exiles enjoy the sponsorship of Putin’s critics in the West. The tradition of supporting an alternative exile leadership for Russia is an old one that precedes even the Cold War, when anti-communist dissidents were promoted by the West; it goes back to the nineteenth century, when radical enemies of the Czar were given exile. Today, Britain is at the fore of the policy of shielding Putin’s foreign critics, most notably Boris Berezovsky, much to the irritation of the Russians. But the European Union, too, is active, giving a helping hand to the Orange anti-Russian movement in the Ukraine.
  
  The problem for the exiles and Putin’s other critics is that inside Russia they enjoy little support. Putin’s aggressive attacks on the oppositional Other Russia party led by Garry Kasparov simply do not outrage most Russians in the way they do people in the West. Putin retains the support of Russia’s middle-class because he stabilised the economy and delivered years of solid economic growth.
  
  In the British Foreign Office, criticisms of Putin notwithstanding, officials insist that Britain has to work with Russia – though the contempt that Putin reads in their reactions to him is close to the surface. They think of the current Russian government as mediocre in comparison to the "heroic" Yeltsin imposition of free-market reforms on to a clapped-out Stalinist economy. Oil, they say, is the key to Putin’s success. It is true that during the economic upturn of the 2000s, boosting oil demand helped Russia a great deal. But under Yeltsin there was oil, too; it was just that he sold it off cheap to foreign investors.
  
  By contrast, Putin’s nationalist economic policy redirected oil wealth towards investment leading to strong growth rates. Mikhail Gorbachev (Time Man of the Year in 1987 and 1989) explained the limits of the West’s support for reform: ‘As Russia becomes stronger, suddenly our friends in the West begin to get excited.’ It is all a long way from the generous attitude that US President Bill Clinton (Time Man of the Year in 1992 and 1998) had towards a mostly supine Boris Yeltsin.
  
  Putin’s aggressive reassertion of Russia’s national interests has certainly cost him support in the West. But then, he is not a representative of Western interests, but of Russian ones... And as Time’s sort-of endorsement of Putin underlines, realpolitik in the West favours a strong leader they can do business with story

• Brian Baskin: High oil prices and European demand for natural gas have transformed Russia's once-sleepy oilfield services sector into a $13 billion business that could become the world's second-largest market by 2011... A pair of three-year-old Russian companies, Integra Group and Eurasia Drilling Co., have grown into heavyweights in the sector, with combined revenue of at least $2 billion, or roughly equal to the combined Russian business of international giants such as Schlumberger Ltd. and Halliburton Co. Now, the Russian firms are looking at the next step - one that is likely to put them into more direct competition with the Western companies... Although they mostly perform different work, both companies found a niche in satisfying booming demand for basic services, while also touting experienced, high-profile management teams story

• Sweden's IKEA is to build a 100 million euro ($145 million) furniture factory in the Komi Territory in northwest Russia, the regional industry and energy minister said on Thursday story

• Russia delivered two Sukhoi Su-30MKA fighter jets to Algeria on Tuesday, kicking off the implementation of an arms contract inked by the two governments story