08/29/2024 - 18:33 PM
By Yazeed Al Rashed Al Khuzai *
Since Vladimir Putin took office in 2000, he has led Russia on a new path, focused on strengthening its political and economic influence both domestically and internationally. Putin succeeded in reshaping Russia after the chaos of the 1990s by forging alliances with a select group of businessmen known as the oligarchs.
This class played a pivotal role in achieving domestic stability, but more importantly, it served as a primary tool for enhancing Russian influence on the international stage, particularly in the Middle East. This study aims to provide an in-depth analysis of the relationship between Putin and the oligarchs, and how this relationship has impacted the international system and regional balances in the Middle East.
Definition and Evolution of the Russian Oligarchy
After the collapse of the Soviet Union in 1991, Russia experienced a period of profound economic and political transformations. During this time, many of the country’s massive state assets were privatized at low prices, allowing a handful of individuals to amass vast fortunes rapidly. These individuals, later known as the oligarchs, exploited the chaos following the Soviet Union's disintegration and leveraged their close ties with political power to secure lucrative contracts and deals, leading to the concentration of the nation’s wealth in the hands of a few.
At that time, the privatization process was implemented rapidly and chaotically. The oligarchy was a small group of businessmen who were well aware of the ongoing political and economic changes. These individuals took advantage of the state's weakness, the civil society's absence, and the lack of regulatory legislation to reap enormous profits, leading to a significant concentration of wealth and creating vast social and economic disparities.
Amid this societal turmoil in Russia, the relationship between economic and political power became unprecedentedly complex. The oligarchy was not just a class of wealthy businessmen; it became part of the political system due to its close ties with the authorities. The economic interests of the oligarchs were integrated with the interests of the state, resulting in a political system that lacked transparency and relied on informal alliances.
The Russian oligarchs were not merely economic investors; they wielded significant political influence, shaping public policies and government strategic decisions through their close relationships with politicians. This made them partners in political power, and this intertwining of money and politics created a hybrid system of governance that is difficult to understand outside its unique Russian context.
Vladimir Putin's Role in Building the Oligarchy
When Putin assumed the presidency, the Russian system was suffering from instability, and many oligarchs wielded influence that sometimes exceeded that of the state. Putin analyzed the general situation deeply, with his primary goal being to reestablish central authority and impose state control over all aspects of political and economic life. Thus, he began to curtail the role of the oligarchy, which had challenged state authority.
The Khodorkovsky Case as an Example
Mikhail Khodorkovsky, Chairman and CEO of Yukos Oil Company (1997-2004), posed a direct threat to Putin due to his immense influence and wealth. This led Putin to take drastic measures against him, including arrest and trial. Putin's bold move was a clear message to the rest of the oligarchs that he would not tolerate any attempt to challenge his authority.
Despite confronting the old oligarchy, Putin did not seek to eliminate this class entirely. Instead, he worked to build a new network of businessmen who demonstrated loyalty to him and the Russian state. These new oligarchs enjoyed significant influence but were under strict Kremlin supervision.
This new system built by Putin is based on the idea of an alliance between political and economic power. In this system, the oligarchs are partners in the state, but they are committed to directing their wealth and influence to serve Putin’s agenda. In return, they receive state protection and benefit from massive government contracts and economic advantages they could never have imagined. This system ensures that the oligarchy remains under state control and prevents any potential threat to Putin's authority as the sole and devoted leader of Russia.
Putin’s Enhancement of the Great Oligarchy
Vladimir Putin used advanced economic policies to strengthen the influence of the oligarchy and maintain economic stability in Russia. Among these policies was the focus on nationalizing certain vital industries like oil and gas, putting them entirely under state control. Through this policy, the Russian government ensured its control over strategic resources while allowing the oligarchs to grow their wealth in other sectors but under state supervision.
Putin encouraged the oligarchs to invest abroad, enhancing their international influence. These investments were not just about generating profits; they were also a means to expand Russian influence in other parts of the world, including Europe and the Middle East.
The Russian oligarchy became an integral part of Putin’s strategy to expand Russia’s global influence. Russian oligarchs invested heavily in Europe, especially in the energy and real estate sectors. These investments were not just economic tools but also political leverage, as Europe’s reliance on Russian energy granted Moscow significant influences in shaping the policies of these countries, particularly regarding sanctions and foreign policies toward Russia.
In addition to Europe, Russian oligarchs expanded their influence in the Middle East, playing a crucial role in regional conflicts like Syria. The financial and political support provided by the Russian oligarchy to the Syrian government was pivotal in establishing Russia as a significant regional power.
The oligarchic system built by Putin resulted in mixed outcomes for Russian society. On one hand, this system contributed to relative economic stability and created a class of businessmen capable of global competition. On the other hand, it deepened the social and economic divide within Russian society. In precise terms, it can be said that the oligarchic system led to the concentration of wealth in the hands of a few individuals. This economic disparity caused public discontent and increased distrust in the Russian political system.
We must also not forget the colossal corruption that became a part of the political and economic system in Russia. This corruption includes the relationships between the oligarchs and politicians, where benefits and interests are exchanged at the expense of transparency and accountability. In this context, corruption is not just a deviation from democratic values; it is part of the system that ensures the oligarchy's continued control over wealth and resources.
Democracy in Russia has been significantly affected under Putin's rule and the oligarchic system. The political system has become more closed off, and political decisions have been tied to the interests of the oligarchy. Political freedoms have been systematically undermined, with political opposition being suppressed and the media placed under the direct control of the state or the allied oligarchy. This complex situation has made it impossible for any forces to challenge Putin or even the existing Russian system.
It is also worth noting that the judicial system in Russia has become a tool in the hands of the executive branch. Putin has used the judiciary to pursue opponents and ensure the loyalty of the oligarchy to him. This control over the judiciary means that the system can legally silence any potential opposition, weakening the foundations of democracy and strengthening oligarchic rule within Russia.
The Influence of the Russian Oligarchy on the International Stage
Russia has used the oligarchy as a primary tool to expand its influence on the international stage. This strategy did not rely solely on military power but also on the economic and political influence that the oligarchy wields abroad. At times, Russia has used the money and influence of the oligarchy to intervene in the elections and internal politics of other countries, including the United States. This interference aimed to achieve specific geopolitical objectives, such as strengthening Russia's influence in those countries or undermining the influence of Western powers as a long-term policy.
Russia has exploited economic crises in some countries to enhance its influence. By offering financial support or investments, Russia has managed to build strategic relationships with countries facing economic difficulties, granting it political leverage in those countries. The new Russia under Putin, with the help of the oligarchy, seeks to reshape the international system in a way that aligns with its own interests. This endeavor includes building strategic alliances with other countries and using economic power and political influence to achieve its goals.
Russia has also sought to strengthen its relations with China amidst the decline of American influence. This relationship is not only economic but also strategic, as the two countries cooperate in facing common international challenges. This poses a challenge to the U.S.-led international order and contributes to bolstering Russia's position as a global power.
The competition between Russia and the United States is old and complex. In recent years, this competition has intensified with the decline of American dominance and Russia’s attempt to fill the void in some regions, especially in the Middle East. Russia has used its economic and political influence to bolster its position in the international system and counter Western pressures. The Middle East has become a stage for Russian oligarchic influence through their investments and military and political support, enabling Russia to strengthen its presence in the region.
Geopolitical Shifts in the Middle East and Their Impact on the Russian Oligarchy
Amid the ongoing decline of the U.S. role in the Middle East, Russia has sought to enhance its influence in the region, with the Russian oligarchy playing a part in this strategy by directing their investments towards bolstering Russian influence. In recent years, we have witnessed a clear shift in alliances in the Middle East, with Russia becoming a key ally to some countries like Iran and Syria. This shift was partly driven by Russian investments and military support, and Russia has used these alliances to strengthen its influence in the region and counter Western pressures.
As the U.S. reduced its presence in the region, Russia tried to fill the void by strengthening its relations with regional governments and using its economic influence to advance its interests. The Russian military intervention in Syria, for example, was heavily supported by the oligarchy. This elite group financed military operations and provided logistical support, helping to solidify Assad’s regime and advance the Russian agenda in the region. This intervention was not solely for humanitarian reasons or to protect Russia’s interests; it was part of a larger strategy to bolster Russian influence in a region undergoing significant geopolitical shifts. The Russian oligarchy invested in reconstruction projects in Syria and other conflict-affected countries like Africa and Libya, further enhancing Russia’s influence in those countries.
Despite the complex relationship between Russia and Israel, the oligarchy plays a significant role in shaping Russia’s policies towards the Israeli-Palestinian conflict. Many Russian oligarchs have substantial investments in Israel, influencing how Russia deals with escalating crises in the region. This economic influence may affect Russia's stance on Israeli attacks on Gaza and the West Bank. For Russia, this balanced relationship reflects a strategic approach to dealing with one of the most complex issues in international politics.
Russia undoubtedly seeks to present itself as a balanced and cunning power in the Israeli-Palestinian conflict. While maintaining good relations with Israel, it supports the Palestinians in international forums, reflecting the delicate balance Russia strives to achieve. This cunning strategy aims to enhance Russia's image as a responsible and balanced global power.
With increasing tensions between the United States and China, Russia has sought to strengthen its relations with Beijing. This strategic relationship helps Russia boost its influence in Asia and the Middle East, as cooperation between Russia and China challenges the existing international order and reflects a new balance of global powers.
Russia constantly faces increasing pressure from the West, particularly under economic sanctions. The Russian oligarchy plays a role in countering these pressures by diversifying investments and strengthening economic ties with non-Western countries. This reduces the impact of sanctions and enhances Russia’s independence on the international stage.
Putin, the dreaming Russian emperor, and the oligarchy he built are not just an internal phenomenon in Russia; they have become a significant force on the international stage. This hybrid system of political and economic power has enabled Russia to enhance its global influence, particularly in the Middle East. With ongoing changes in the international system and the decline of American hegemony, the Russian oligarchy remains a crucial element in determining Russia's policies and future directions.
This study delved into analyzing the central role played by the oligarchy in Russian politics under Putin’s rule, how this class was used to enhance Russian influence on the international stage, and focusing on the Middle East as a primary example of this growing influence. The study also highlighted the complexities Russia faces in maintaining this system and the prospects of Russia under this unique model of governance.
Despite the successes Russia has achieved through this system, the question remains: Can this system endure in the face of global economic and political challenges? Can Russia maintain its balance between the oligarchy and political power without facing the same fate as the former Soviet Union? Can the Russian Bear be restrained, or will the snowball it is preparing to throw grow larger and larger until it shakes the world’s sole superpower? What do you think?.
These questions remain open and require extensive studies and answers from international affairs experts!
* Political Analyst and Poet
Email: vipyazeed@gmail.com
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