Russian Political, Economic, and Security Issues and U.S. Interests

Jim Nichol, Coordinator
Specialist in Russian and Eurasian Affairs

Russia made some uneven progress in democratization during the 1990s, but according to most observers, this limited progress was reversed after Vladimir Putin rose to power in 1999-2000. During this period, the State Duma (lower legislative chamber) came to be dominated by government-approved parties and opposition democratic parties were excluded. Putin also abolished gubernatorial elections and established government ownership or control over major media and industries, including the energy sector. The methods used by the Putin government to suppress insurgency in the North Caucasus demonstrated a low regard for the rule of law and scant regard for human rights, according to critics. Dmitriy Medvedev, Vladimir Putin’s chosen successor and long-time protégé, was elected president in March 2008 and immediately chose Putin as prime minister. President Medvedev has continued policies established during the Putin presidency. In August 2008, the Medvedev-Putin “tandem” directed wide-scale military operations against Georgia and unilaterally recognized the independence of Georgia’s separatist South Ossetia and Abkhazia, actions that were censured by most of the international community but which resulted in few, minor, and only temporary international sanctions against Russia.

Russia’s economy began to recover from the Soviet collapse in 1999, led mainly by oil and gas exports, but the decline in oil and gas prices and other aspects of the global economic downturn beginning in 2008 contributed to an 8% drop in gross domestic product in 2009. In 2010-2011, rising world oil prices have bolstered the economy. Russia continues to be challenged by an economy highly dependent on the production of oil, gas and other natural resources. It is also plagued by an unreformed healthcare system and unhealthy lifestyles; low domestic and foreign investment; and high rates of crime, corruption, capital flight, and unemployment.

Russia’s military has been in turmoil after years of severe force reductions and budget cuts. The armed forces now number about 1.0 million, down from 4.3 million Soviet troops in 1986. Troop readiness, training, morale, and discipline have suffered, and much of the arms industry has become antiquated. Russia’s economic growth during most of the 2000s allowed it to substantially increase defense spending to begin to address these problems, and some high-profile activities were resumed, such as Mediterranean and Atlantic naval deployments and strategic bomber patrols. Stepped-up efforts were launched in late 2007 to further downsize the armed forces to improve its quality. Russia’s 2008-2009 economic downturn and strong opposition among some in the armed forces appeared to slow force modernization efforts.

After the Soviet Union’s collapse, the United States sought a cooperative relationship with Moscow and supplied $17 billion in aid for Russia from FY1992-FY2010 to encourage democracy and market reforms and to prevent the proliferation of weapons of mass destruction (WMD). U.S. aid to reduce the threat posed by WMD proliferation has hovered around $700- $900 million per fiscal year, while other foreign aid to Russia has dwindled. Despite U.S.-Russia tensions on issues such as NATO enlargement and proposed U.S. missile defenses in Eastern Europe, the two countries found some common ground on anti-terrorism and non-proliferation issues. Russia’s 2008 conflict with Georgia, however, threatened such cooperation. The Obama Administration has worked to “re-set” relations with Russia, which welcomed the Administration’s announcement in September 2009 of the cancellation of the planned deployment of missile defenses in Eastern Europe. The Administration has hailed the signing of a new Strategic Arms Reduction Treaty on April 8, 2010, and the approval of new sanctions against Iran by Russia and other members of the U.N. Security Council on June 9 , 2010, as signifying the “re-set” of bilateral relations.


Date of Report: February 1, 2011
Number of Pages: 63
Order Number: RL33407
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Central Asia: Regional Developments and Implications for U.S. Interests

Jim Nichol
Specialist in Russian and Eurasian Affairs

U.S. policy toward the Central Asian states has aimed at facilitating their cooperation with U.S. and NATO stabilization efforts in Afghanistan and their efforts to combat terrorism, proliferation, and trafficking in arms, drugs, and persons. Other U.S. objectives have included promoting free markets, democratization, human rights, energy development, and the forging of East-West and Central Asia-South Asia trade links. Such policies aim to help the states become what various U.S. administrations have considered to be responsible members of the international community rather than to degenerate into xenophobic, extremist, and anti-Western regimes that contribute to wider regional conflict and instability.

Soon after the terrorist attacks on the United States on September 11, 2001, all the Central Asian “front-line” states offered over-flight and other support for coalition anti-terrorism operations in Afghanistan. Kyrgyzstan, Tajikistan, and Uzbekistan hosted coalition troops and provided access to airbases. In 2003, Kazakhstan and Uzbekistan also endorsed coalition military action in Iraq. About two dozen Kazakhstani troops served in Iraq until late 2008. Uzbekistan rescinded U.S. basing rights in 2005 after the United States criticized the reported killing of civilians in the town of Andijon. In early 2009, Kyrgyzstan ordered a U.S. base in that country to close, allegedly because of Russian inducements and U.S. reluctance to meet Kyrgyz requests for greatly increased lease payments. An agreement on continued U.S. use of the Manas Transit Center was reached in June 2009. In 2009, most of the regional states also agreed to become part of a Northern Distribution Network for the transport of U.S. and NATO supplies to Afghanistan. The status of the Manas Transit Center was in doubt after an April 2010 coup in Kyrgyzstan, but the new leadership soon stated that the Manas Transit Center arrangement would remain in place.

Policymakers have tailored U.S. policy in Central Asia to the varying characteristics of these states. U.S. interests in Kazakhstan have included securing and eliminating Soviet-era nuclear and biological weapons materials and facilities. U.S. energy firms have invested in oil and natural gas development in Kazakhstan and Turkmenistan, and successive administrations have backed diverse export routes to the West for these resources. U.S. policy toward Kyrgyzstan has long included support for its civil society. In Tajikistan, the United States pledged to assist in its economic reconstruction following that country’s 1992-1997 civil war. U.S. relations with Uzbekistan—the most populous state in the heart of the region—were cool after 2005, but recently have improved. Since the 2008 global economic downturn, more U.S. humanitarian, health, and education assistance has been provided to hard-struck Kyrgyzstan and Tajikistan.

Congress has been at the forefront in advocating increased U.S. ties with Central Asia, and in providing backing for the region for the transit of equipment and supplies for U.S.-led stabilization efforts in Afghanistan. Congress has pursued these goals through hearings and legislation on humanitarian, economic, and democratization assistance, security issues, and human rights. During the first session, the 112th Congress may review assistance for bolstering regional border and customs controls and other safeguards to prevent the proliferation of weapons of mass destruction (WMD), combating trafficking in persons and drugs, encouraging regional integration with South Asia and Europe, advancing energy security, and countering terrorism. Support for these goals also has been viewed as contributing to stabilization and reconstruction operations by the United States and NATO in Afghanistan. For several years, Congress has placed conditions on assistance to Kazakhstan and Uzbekistan—because of concerns about human rights abuses and lagging democratization—which have affected some U.S. security ties. Congress will continue to consider how to balance these varied U.S. interests in the region.


Date of Report: January 12, 2011
Number of Pages: 56
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Armenia, Azerbaijan, and Georgia: Political Developments and Implications for U.S. Interests

Jim Nichol
Specialist in Russian and Eurasian Affairs

The United States recognized the independence of Armenia, Azerbaijan, and Georgia when the former Soviet Union broke up at the end of 1991. The United States has fostered these states’ ties with the West in part to end their dependence on Russia for trade, security, and other relations. The United States has pursued close ties with Armenia to encourage its democratization and because of concerns by Armenian-Americans and others over its fate. Close ties with Georgia have evolved from U.S. contacts with its pro-Western leadership. Successive Administrations have supported U.S. private investment in Azerbaijan’s energy sector as a means of increasing the diversity of world energy suppliers. The United States has been active in diplomatic efforts to resolve regional conflicts in the region. As part of the U.S. global counter-terrorism efforts, the U.S. military in 2002 began providing equipment and training for Georgia’s military and security forces. Troops from all three regional states have participated in stabilization efforts in Afghanistan and Iraq. The South Caucasian troops serving in Iraq departed in late 2008. The regional states also have granted transit privileges for U.S. military personnel and equipment bound for Afghanistan.

Beginning on August 7, 2008, Russia and Georgia warred over Georgia’s breakaway regions of Abkhazia and South Ossetia. Russian troops quickly swept into Georgia, destroyed infrastructure, and tightened their de facto control over the breakaway regions before a ceasefire was concluded on August 15. The conflict has had long-term effects on security dynamics in the region and beyond. Russia recognized the independence of Abkhazia and South Ossetia, but the United States and nearly all other nations have refused to follow suit. Russia established bases in Abkhazia and South Ossetia—in violation of the ceasefire accords—that buttress its long-time military presence in Armenia. Although there were some concerns that the South Caucasus had become less stable as a source and transit area for oil and gas, Kazakhstan and Turkmenistan are barging oil across the Caspian Sea for transit westward, and the European Union still plans to build the so-called Nabucco pipeline to bring Azerbaijani and other gas to Austria. 

Key issues in the first session of the 112th Congress regarding the South Caucasus may include Armenia’s independence and economic development; Azerbaijan’s energy development; and Georgia’s recovery from Russia’s August 2008 military incursion. At the same time, concerns may include the status of human rights and democratization in the countries; the ongoing Armenia-Azerbaijan conflict over the breakaway Nagorno Karabakh region; and threats posed to Georgia and the international order by Russia’s 2008 incursion and its diplomatic recognition of South Ossetia and Abkhazia. Congress may continue to scrutinize Armenia’s and Georgia’s reform progress as recipients of Millennium Challenge Account grants and the region’s role as part of the Northern Distribution Network for the transit of military supplies to support U.S. and NATO operations in Afghanistan. Some members of Congress and other policymakers believe that the United States should provide greater support for the region’s increasing role as an eastwest trade and security corridor linking the Black Sea and Caspian Sea regions, and for Armenia’s inclusion in such links. They urge greater U.S. aid and conflict resolution efforts to contain warfare, crime, smuggling, and terrorism, and to bolster the independence of the states. Others urge caution in adopting policies that will increase U.S. involvement in a region beset by ethnic and civil conflicts.


Date of Report: December 21, 2010
Number of Pages: 44
Order Number: RL33453
Price: $29.95

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Stability in Russia’s Chechnya and Other Regions of the North Caucasus: Recent Developments

Jim Nichol
Specialist in Russian and Eurasian Affairs

Terrorist attacks in Russia’s North Caucasus—a border area between the Black and Caspian Seas that includes the formerly breakaway Chechnya and other ethnic-based regions—appeared to increase substantially in 2007-2009. Moreover, civilian and government casualties reached levels not seen in several years and terrorist attacks again took place outside the North Caucasus. Although the number of terrorist incidents may have leveled off or even declined slightly in 2010 from the high levels of 2009, the rate of civilian and government casualties continued to increase throughout the North Caucasus in 2010 and a rising number of terrorist incidents took place outside of Chechnya. Illustrative of the new range and scope of violence, the Moscow subway system was bombed in March 2010, resulting in over 40 deaths and dozens of injuries.

Before the recent rise in terrorism, it seemed that government security forces had been successful in tamping down their range and scope by aggressively carrying out over a thousand sweep operations (“zachistki”) in the North Caucasus. During these operations, security forces surround a village and search the homes of the residents, ostensibly in a bid to apprehend terrorists. Critics of the operations allege that the searches are illegal and that troops frequently engage in pillaging and gratuitous violence and are responsible for kidnapping for ransom and “disappearances” of civilians. Through these sweeps, as well as through thousands of direct clashes, most of the masterminds of previous large-scale terrorist attacks were killed.

Some observers suggest that the increasing scope of public discontent against zachistki and deep economic and social distress are contributing to growing numbers of recruits for terrorist groups and to increasing violence in the North Caucasus. Interethnic and religious tensions are also responsible for some of the increased violence. Many ethnic Russian and other nonnative civilians have been murdered or have disappeared, which has spurred the migration of most of the nonnative population from the North Caucasus. Russian authorities argue that foreign terrorist groups continue to operate in the North Caucasus and to receive outside financial and material assistance.

The United States generally has supported the Russian government’s efforts to combat terrorism in the North Caucasus. However, successive Administrations and Congress have continued to raise concerns about the wide scope of human rights abuses committed by the Russian government in the North Caucasus. The conference agreement on Consolidated Appropriations for FY2010 (P.L. 111-117), calls for $7.0 million to continue humanitarian, conflict mitigation, human rights, civil society and relief and recovery assistance programs in the North Caucasus. It also repeats language used for several years that directs that 60% of the assistance allocated to Russia will be withheld (excluding medical, human trafficking, and Comprehensive Threat Reduction aid) until the President certifies that Russia is facilitating full access to Chechnya for international nongovernmental organizations providing humanitarian relief to displaced persons.


Date of Report: December 13, 2010
Number of Pages: 29
Order Number: RL34613
Price: $29.95

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Central Asia: Regional Developments and Implications for U.S. Interests

Jim Nichol
Specialist in Russian and Eurasian Affairs

U.S. policy toward the Central Asian states has aimed at facilitating their cooperation with U.S. and NATO stabilization efforts in Afghanistan and their efforts to combat terrorism, proliferation, and trafficking in arms, drugs, and persons. Other U.S. objectives have included promoting free markets, democratization, human rights, energy development, and the forging of East-West and Central Asia-South Asia trade links. Such policies aim to help the states become what various U.S. administrations have considered to be responsible members of the international community rather than to degenerate into xenophobic, extremist, and anti-Western regimes that contribute to wider regional conflict and instability.

Soon after the terrorist attacks on the United States on September 11, 2001, all the Central Asian “front-line” states offered over-flight and other support for coalition anti-terrorism operations in Afghanistan. Kyrgyzstan, Tajikistan, and Uzbekistan hosted coalition troops and provided access to airbases. In 2003, Kazakhstan and Uzbekistan also endorsed coalition military action in Iraq. About two dozen Kazakhstani troops served in Iraq until late 2008. Uzbekistan rescinded U.S. basing rights in 2005 after the United States criticized the reported killing of civilians in the town of Andijon. In early 2009, Kyrgyzstan ordered a U.S. base in that country to close, allegedly because of Russian inducements and U.S. reluctance to meet Kyrgyz requests for greatly increased lease payments. An agreement on continued U.S. use of the “transit center” was reached in June 2009. In 2009, most of the regional states also agreed to become part of a Northern Distribution Network for the transport of U.S. and NATO supplies to Afghanistan. The status of the “transit center” was in doubt after an April 2010 coup in Kyrgyzstan, but the new leadership soon stated that the “transit center” arrangement would remain in place.

Policymakers have tailored U.S. policy in Central Asia to the varying characteristics of these states. U.S. interests in Kazakhstan have included securing and eliminating Soviet-era nuclear and biological weapons materials and facilities. U.S. energy firms have invested in oil and natural gas development in Kazakhstan and Turkmenistan, and successive administrations have backed diverse export routes to the West for these resources. U.S. policy toward Kyrgyzstan has long included support for its civil society. In Tajikistan, the United States pledged to assist in its economic reconstruction following that country’s 1992-1997 civil war. U.S. relations with Uzbekistan—the most populous state in the heart of the region—were cool after 2005, but recently have improved. Since the 2008 global economic downturn, more U.S. humanitarian, health, and education assistance has been provided to hard-struck Kyrgyzstan and Tajikistan.

The second session of the 111th Congress has continued to be at the forefront in advocating increased U.S. ties with Central Asia, and in providing backing for the region for the transit of equipment and supplies for U.S.-led stabilization efforts in Afghanistan. Congress has pursued these goals through hearings and legislation on humanitarian, economic, and democratization assistance, security issues, and human rights. Ongoing congressional interests have included boosting regional border and customs controls and other safeguards to prevent the proliferation of weapons of mass destruction (WMD), combat trafficking in persons and drugs, encourage regional integration with South Asia and Europe, advance energy security, and counter terrorism. Support for these goals also contributes to stabilization and reconstruction operations by the United States and NATO in Afghanistan. For several years, Congress has placed conditions on assistance to Kazakhstan and Uzbekistan—because of concerns about human rights abuses and lagging democratization—which have affected some U.S. security ties. Congress will continue to consider how to balance these varied U.S. interests in the region.


Date of Report: November 22, 2010
Number of Pages: 56
Order Number: RL33458
Price: $29.95

Follow us on TWITTER at http://www.twitter.com/alertsPHP or #CRSreports

Document available via e-mail as a pdf file or in paper form.
To order, e-mail Penny Hill Press  or call us at 301-253-0881. Provide a Visa, MasterCard, American Express, or Discover card number, expiration date, and name on the card. Indicate whether you want e-mail or postal delivery. Phone orders are preferred and receive priority processing.