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.
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