SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Investment in Russia and Eastern Europe

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Z Analyzer who wrote (1114)2/10/2001 12:04:22 AM
From: CIMA   of 1301
 
Russian President Vladimir Putin traveled to Austria this week
with two items on his agenda - reinforcing Russia's economic
relations with Austria and persuading Austria to retain its
neutral status. Central to both missions was a Russian offer to
trade MiG-29 jet fighters to Austria in exchange for relief of
Russian debt to Vienna. The offer was rejected, dealing a serious
setback to Russia's strategy for relations with Europe. Domestic
political pressure, time and budgetary constraints, however,
could force Austria to reconsider Russia's offer, in turn,
threatening NATO expansion and cohesion.

Analysis

Russian President Vladimir Putin concluded the working portion of
his visit to Austria on Feb. 9, having almost completely failed
to achieve his two major objectives. First, Putin was attempting
to reinforce economic ties between Russia and Austria. Second,
Putin sought to persuade Austrian leaders to retain the country's
neutral status and refrain from NATO membership. Serving both
initiatives was a Russian proposal to offer MiG-29 fighter jets
as partial payment of Russia's $2.84 billion debt to Vienna, an
offer that, if accepted, would have hampered any future Austrian
accession to NATO.

But the MiG offer was shot down before Putin's arrival, the
victim of aggressive opposition lobbying from the United States,
Britain and Sweden. In the end, Putin was forced to reaffirm
publicly that Russia would fulfill its international debt
obligations and to acknowledge that Austria's neutrality and
membership in international organizations were matters for
Austria to decide. Chastened, Putin left Vienna with only a
handful of insubstantial economic cooperation agreements.

While strategically and economically painful, Russia's setback on
the MiG proposal is not yet terminal. The Russian jets-for-debt
proposal and competing European and U.S. offers will still face
intense debate within the Austrian populace and parliament. The
majority of Austrians do not share their government's commitment
to eventual NATO membership, and budgetary and political concerns
could, in the end, make Russia's offer too attractive to refuse.

*********** TO READ THE REST OF THIS ARTICLE CLICK HERE ***********
stratfor.com

___________________________________________________________________

<<<<<<<<<<<<<< SUBSCRIBE TO BECOME A MEMBER TODAY!>>>>>>>>>>>>>>>

Stratfor.com introduces new, expanded analysis for readers seeking
more insight on the entire range of global affairs. Our new site
features more intelligence on more subjects, easier navigation and
expanded coverage.

stratfor.com

<<<<<<<<<<<<<< SUBSCRIBE TO BECOME A MEMBER TODAY!>>>>>>>>>>>>>>>

___________________________________________________________________

SIGN-UP:
Get the free, daily Global Intelligence Update:
stratfor.com
You can stop receiving the GIU by clicking on:
stratfor.com

CONTACTS AND CUSTOMER SERVICES:
STRATFOR.com
504 Lavaca, Suite 1100 Austin, TX 78701
Phone: 512-583-5000
Internet: stratfor.com
Email: info@stratfor.com

ADVERTISE
For information on advertising in the GIU or any
section of the Stratfor.com website, please email us
at advertising@stratfor.com

====================================================
(c) 2001 Strategic Forecasting LLC. All rights reserved.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext