The rise (and fall?) of petro-states

The rise (and fall?) of petro-states

By Sreeram Chaulia

The Kremlin’s assertiveness and strident defence of national interests in the Putin era is ascribed to the boom in world prices of natural gas and oil, which Russia exports in abundance. Russia reaped direct dividends of the steep incline in fossil fuel prices by accumulating foreign exchange reserves to the tune of $560 billion by mid-2008. Indirectly, possession of the much-coveted strategic minerals enabled Russia to neutralise energy-hungry western European countries, particularly Germany, so that the ‘West’ was divided from taking an anti-Moscow foreign policy line.

http://www.newageislam.com/the-rise-(and-fall?)-of-petro-states--/islam-and-politics/d/942