Part II Of Former Russian President Medvedev's Article: Russia's Economy Is Resilient, Western Economies Are On The Ropes

This is the second part of Dmitry Medvedev's article[1], which some view as a sign of his resurgence within Russia's political elite.[2] In this part Medvedev contrasts the economic doldrums in the West with Russia's ability to reorient its economy to states, who share Russia's opposition to sanctions. The war has administered shock therapy and has forced Russia to revive industries. On a moral level, Russians have discovered what is truly important and what is secondary.

The second part of Medvedev's article follows below:[3]

Dmitry Medvedev with Vladimir Putin following his appointment as first deputy in the Military-Industrial Commission of Russia (Source: Tass.ru)

Meanwhile, the world economic system is sinking deeper and deeper into ambiguity, into a crisis of unprecedented proportions. Even the "financial storm" that broke out during 2008-2009 was overcome relatively quickly by developed countries. But now the situation is drastically different. Inflation in the US and the euro zone are literally hitting the "bottom" of the pessimistic forecasts: 8-10%, respectively, and GDP growth of 2%, not to mention the various "underperformer-states" located in Eastern Europe or the Baltic states, where inflation is off the 20% mark.

But now the situation is drastically different. Inflation in the US and the eurozone is literally surpasses the most pessimistic estimations: it is about 8-10%, with GDP growth reaching 2%, not to mention the various "underperformer-states" in Eastern Europe or the Baltics, where inflation exceeds the 20% mark.

One can only sympathize with the ordinary EU citizens. [Their] home won’t be warmed by fiery slogans of solidarity with Ukraine, nor can [these slogans] be poured into a car's gas tank. All the "hellish sanctions", blockades and other restrictions are borne on the shoulders of those, who now have to pay insane utility or fuel bills, assume the maintenance of Ukrainian refugees and to provide them with work places, to endure crisis after crisis facilitated by their own politicians who ignore people’s questions, "what is all this suffering for? Who is worse off in the end? Why is America the relative beneficiary, as usual?" Their citizens [the EU's] understand that poverty and uncertainty are very much a long-term thing. And there is no joy about it, as the reports from the street protests appear daily on the European newswires.

The main problem, however, is that the West undermines with its own hands the fundamental principles of the market economy, without which one should forget about the development, or building partnership with anyone. Endless bans and exclusions to common rules, especially in the oil trade, have already created a huge grey area in the world market, where transactions are being carried out without regard to the high and mighty. Under pressure from politicians, new financial rules are being introduced and business is once again forced to find work-arounds for financial settlements.

Alas, we now have no one to speak with and no reason to negotiate with in the West. It was the events of the past year that annulled the very possibility of a trust-based and respectful dialogue.

I’m talking not even about the technological and information blockade, which is designed to curb access to high technology to all potential US competitors. Naturally, states that have been subjected to various degree to illegal sanctions, or restrictions on part of Washington and other Western countries will try to circumvent all of these bans via acting quietly or, conversely, defiantly, disregarding international rules, disregarding any interests of developed countries, including denying them protection for their intellectual property. We have yet to learn all this. After the illegal, totally boorish sanctions have been imposed on our country, traditional decency should no longer limit us in any way in our choice of defense measures, including any use of the rights and property of economic entities from unfriendly countries. We have the right to use their assets as we deem acceptable, according to our law.

We should call things by their proper names: the US professes a neo-colonialism whose licentiousness would make even R. Kipling and his "white man's" conceit blush and feel uncomfortable. They still try to pretend that the entire world is their colony, to dictate exploitative conditions, to behave in disregard of laws and morality, to rob others at every step. Take, for instance, the situation around the "grain deal," which has literally enriched the big American companies that have bought up Ukraine’s farmland.

Meanwhile, the avowed goal of preventing starvation in the poorest countries, where grain and fertilizers have been exported from Russia and Ukraine has never really been achieved (only about 3-5% of such cargoes, in fact, reach these countries eventually).

The situation is even direr in those countries where the US has strived to establish supposedly liberal and democratic order. Such attempts always end up, if not in bloody coups, then in a deep systemic crisis and decline in all spheres. Libya, Iraq, Syria, Afghanistan became the bitterest victims of American "democratic missionary work" ... Geopolitical tensions are constantly on the rise.

The US has not gotten beyond its habitual and primitive cowboy style of doing business, "if you don't like the way the table is set, knock it over." But each time [that happens] they encounter ever increasing resistance from those, who don’t want to submit. China, India and the Middle East are consolidating their positions on the world market. Latin America and Africa are totally unwilling to submit to U.S. dictates.

Russia has enough partners and like-minded people on these continents with whom we are now engaged in an intensive dialogue. At the end of this year, I had quite a few talks with the leaders of a number of such countries. And each of my interlocutors without exception confirmed their rejection of the methods, via which Washington and its allies operate on the world stage.

Understanding this, the US and NATO are multiplying numerous "umbrella-like" bodies to rally states around the "correct" principles, as is the case with the "Eastern Partnership," "the Crimea Platform," AUKUS and etc. Meanwhile, the contradictions in the allied camp are visible to the naked eye, as Washington and London are exploiting the situation in Ukraine to weaken Europe and its industrial sector, to reduce Germany’s economic influence and France's military capabilities. Likewise, [the US] strives to drive a wedge between China and the EU member states, to derail plans for long-term (and profitable) partnerships of such countries with inter-state bodies and alliances that are not within the orbit of US influence.

Several macro-regions are being formed in the world, each having its own internal rules and logic of development. However, in general, these regions are inclined towards partnership and dialogue, rather than confrontation

On the whole, the interests of virtually all the major Western states are now at odds with each other, no matter how ardently they may assure the public otherwise and create the appearance of unity. As [imperial historian] N. M. Karamzin wrote (albeit of a very different time), "these giants, driven by their inner restless spirit, are eager for the difficult to the still more difficult task, they ruin people's lives and in reward demand from them to be called great." But sooner or later the alliances of the great and powerful countries of the West will cease to exist.

Contradictions [between the countries of the West] are abundant, even in the face of the "common enemy" (the role traditionally designated for Russia). There could be several options for future developments. Most likely, several macro- regions are being formed in the world, each having its own internal rules and logic of development. However, in general, these regions are inclined towards partnership and dialogue, rather than confrontation.

The entire system of international relations will become not only multipolar, but also multistructured, and will be based on the principles of benevolent non-interference. This would considerably weaken the influence of the leading international structures. But, at the same time, it will strengthen the security of such macro-regions, which is an obvious benefit.

Some of the European countries will try to preserve their independence to the best of their strength and abilities. A separate issue is how countries such as Poland, an example of powerless anger and unique rabid Russophobia, dependence and controllability, will wiggle out of "traps" they’ve put themselves into. Even in Poland it’s already being acknowledged that a bet on endless confrontation with Russia has brought Warsaw to a dead end.

A local politician recently remarked with bitter irony, "Poles hate Russia more than they love Poland." The Baltic states have too put themselves in the stupidest of position. Provincial narrow-mindedness, boorishness, manners of thieving lackeys are [characteristics of] their political style, which makes even the rest of Europe cringe. In all likelihood, social unrest in these states will lead to an inevitable change of power in the near future.

The new world will be ready to cooperate with the West, but only on the principles of equality and mutual respect. One will need might and political will in order avoid cracking in this confrontation.

And this confrontation will go on for a very long time. Be that as it may, the sovereign states no longer accept attempts to impose upon them the principles of a world order tailored to American standards. A clear realization of this truth is too one of the results of the past year.

To conclude new disarmament arrangements is unrealistic and unnecessary at the moment. The sooner maximal security guarantees that suit our country will be obtained, the sooner the situation will normalize.

The fierce rivalry between the West and the rest of the world will continue to escalate. The contradictions between new allies under the anti-Russian bloc will also intensify. In the future one can expect a gradual change of economic and energy patterns in these countries. New reserve currencies will emerge. Russia will have to take its own, special place in the new world, making a bet on new rules of partnership and cooperation with friendly countries, and do everything possible to ensure its security, independence and sovereignty in key areas: from finance to science.

Outcome No. 5. There will be no apocalypse (just yet)

"The world is dangerous not because some people do evil deeds, but because some people see it and do nothing," wrote the great physicist A. Einstein in his time, a scientist and humanist, who found it impossible to live within the same country’s borders as Hitler’s Nazis. Being a brilliant analyst, long before the outbreak of World War II, he sensed its approach and made it a public knowledge. Einstein and many others were not heeded at the time.

There are a lot of talk about a "premonition of World War III," or even of its beginning (as did Pope Francis recently), as well as about the second coming of Nazism in Europe. But, alas, with the same effect.

By the end of 2021 and the beginning of 2022, the situation had aggravated to an extreme level. In fact, it has reached the final frontier, after which a world catastrophe will occur. The collective West, represented by the US and its European allies, is going all out to support the insane regime in Kyiv. It supplies it with arms, trains mercenaries and pours enormous assets into the unpredictable and corrupt state's budget.

Is the West ready to unleash a full-fledged war against us, including a nuclear one, at the hands of Kyiv? Western politicians avert their eyes and are slow to provide an honest answer. [You are better off asking the same question] the residents of the city of Energodar, located near the Zaporizhzhya nuclear power plant, which was struck by a targeted fire that almost hit IAEA representatives with stray shrapnel. The shelling is still going on to this day. Take for instance, the statements of the cannabis-smoking cannibals in Kyiv. These are buffoonish comedians, who are simply incapable of realizing the full extent of their responsibility for people's lives in the real world. Remember the shootings and tortures in Kherson and other cities.

Zaporizhzhya nuclear power plant prior to the war (Source: Rbc.ru)

Be that as it may, even in the face of such serious threats, Russia has repeatedly stressed that we are not fighting the Ukrainian people, but rather the Nazi bastards entrenched in Kyiv who have seized power in a coup d'état. Our enemies, meanwhile, are not hesitating in using all means. Thousands of destroyed homes, ruined lives, refugees and destitute people rest on their conscience (although this word is, hardly applicable to them). Therefore, any talks with the current, puppet Ukrainian leadership have been completely pointless since last year, as I wrote about in my article published at the end of 2021.

The only thing that stops our adversaries today is the understanding that Russia will follow the Basic State Policy in the field of nuclear deterrence. In case of a real threat, it will act according to them.

The problem is that in this case there will be nobody to decide whether this was a retaliatory, or a preventive strike. This, naturally, frightens Western do-gooders, who have long been persuading the Ukrainian political rabble in the illusion of invulnerability and impunity in exchange for complete obedience. That is why the Western world is balancing between a burning desire to humiliate, insult, dismember and destroy Russia as much as possible, on the one hand, and a desire to avoid a nuclear apocalypse, on the other.

To conclude new disarmament arrangements is unrealistic and unnecessary at the moment. The sooner maximal security guarantees will be obtained that will suit our country, the sooner the situation will normalize. If we won’t acquire them, tensions will remain indefinitely. The world will continue to teeter on the brink of World War III and nuclear catastrophe. We will do everything we can to prevent them.

Outcome No. 6. Russia does not "survive" but lives, develops and wins

The main outcome of the year 2022 is an enormous changes we are observing in Russia’s economy today and, most importantly, in the minds of a huge number of citizens.

Now almost everything rests on our people, on their steadfastness and solidarity, patriotism and confidence in victory, maturity of thought and firmness of spirit. The alien toxic "foam" that has formed on Russian society is gradually disappearing. I won’t provide moral judgement to those, who willingly chose to embark on a new "philosopher's ship," [a reference to the Russian intellectuals, who went into exiles following the Communist victory] because I don’t know each of their motives. God is their judge. Certainly, this doesn’t apply to those who, in the face of a military campaign, wish defeat upon their country and its army. They are simply traitors. And there should be no forgiveness for them.

The main thing is that the maturation process of our society is ongoing. And it’s irreversible. Naturally, not everyone has yet had time to realize how much our lives have changed, what goals will be paramount for years to come. Shells are exploding at the front line, and some people believe it’s none of their business. Some people are on duty at refugee shelters and help rebuild houses destroyed by shelling, while others do not notice the unfolding events.

Our task in the foreseeable future is not only to protect the new Russian territories, but also to make the lives of their residents prosperous, safe and comfortable

And yet it’s clear, this year has forced our society to mobilize in the full sense of the word: thousands of Russian citizens volunteered to enter the Donbas [conflict] from the very first days of the special military operation [hereafter – the SVO]. Hundreds of thousands of soldiers and officers are now going through combat training and are heroically fighting on the front line, liberating new Russian territories from the Nazis. The selfless work of the volunteers, who help refugees and displaced persons, families and children of conscripted, who are on duty in hospitals, who gather everything necessary for our soldiers is also worthy of enormous gratitude. They are all true patriots of our homeland, our pride and glory.

Russian conscripts on their way to military training (Source: Tass.ru)

Equally important was mobilization of a different, higher order: facing an external threat, a confrontation with the enemy, under brutal and unprecedented pressure, our country was able in a matter of months to unite and reach a new level of civic consciousness. This is true for all aspects of our life. The year 2022 has changed a lot in us. It forced us to make a choice regarding our own thoughts and feelings. It has taught us to distinguish the secondary issues from the really important ones, to appreciate the things that are most important for all of us, i.e., courage, mercy, mutual assistance, historical and family memory, loyalty to duty and tradition, justice, truth and conscience.

Our enemies haven’t succeeded in destroying our economy. There is a huge amount of work going on in the [country’s] economic sphere right now towards relaunching the most important industries that ensure the country's security and defense capability. The financial system gradually and successfully adapts to the sanctions conditions. They [the West] have failed to "disconnect and cut us off" from the global infrastructure, or "suffocate us" via prohibitions and restrictions.

The government has been able to keep the foreign exchange market in balance and minimize market risks. Inflation is being maintained within manageable limits; an initial shock [of sanctions] was quickly offset thanks to clear and professional action by Russia’s key financial institutions. The strategic pivot of the entire Russian infrastructure towards friendly countries markets continues. Annual price growth slowed down in October-November of 2022. The state fully meets its social obligations. Wages and pensions are being indexed and all benefits are being paid.

The departure of foreign companies from our market (many did so reluctantly and under explicit pressure from their governments) didn’t undermine the consumer sector, as they frightened us, on the contrary, import substitution in the most important segments for people is successfully proceeding. The majority of enterprises haven’t changed their investment plans for the next year.

In a short period of time, we had to increase the production of modern arms and establish supplies of everything necessary to supply the front and the home front. Sometimes we had to put the system into "manual control" mode in order to achieve precise and timely fulfilment of the state defense order.

It can now be stated that Russia’s defense industry has been able to respond adequately to the most serious threats to the country's security. Defense factories are working steadily, arms and products for the army are being manufactured and delivered according to new, maximum-set goals. Production of armaments and military equipment is growing continuously, day by day. We are obliged to create and will create the most powerful reserve of Russian arms for the future!

The large influx of refugees and displaced persons from the territories of Donbas and Ukraine demanded a special attention this year. Almost all the regions were welcoming them. Following the president’s order, everything was done to support such people and give them the opportunity to return to normal life, i.e., to find their loved ones, to send their children to school, to heal their physical and mental wounds. Assistance was also provided to the most vulnerable categories of such people: families with children, the elderly, and people with disabilities.

Our task in the foreseeable future is not only to protect the new Russian territories, but also to make the lives of residents their prosperous, safe and comfortable. This was already the case back in 2014, when Crimea became part of Russia, returning home for good, contrary to [intentions of] those, who dream of driving the peninsula back by force into foreign borders, threaten and intimidate, orchestrate an energy, water, transport and gas blockade for "their own" people. We observe how dynamically this region of Russia is developing and with what sense of pride its inhabitants speak about their future and past.

The main and indisputable point is the following, "We don’t abandon our own!" It has become the motto of the outgoing year. We will do our best to make life in the "large Russian family" normal and prosperous. We will give millions of people the opportunity to gain confidence in the future. We shall always stand up for their rights and freedoms, language and culture, faith and hopes. Our adversaries, those who desperately and hopelessly continue to wage a hybrid war against us, trying to pressure and intimidate us, understand this very well.

Happy New Year 2023 to all citizens of Russia! To all those, who are close and dear to us, who are ready to go follow us through any trials. I bow humbly to our heroic Armed Forces. The enemies of Russia shall be defeated! The truth shall triumph! The future is ours!