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Yet he rightly points out that this achievement, which Ambassador Karasin attributes to President Putin’s first year in office, is not enough. Russia has to look towards what it will do in the future. Russia’s next steps will include improving foreign investment, increasing employment, and the creation of a modern banking system. Russia also intends to reform customs and the judiciary, and to transform “what we call the natural monopolies,” he explained.

Indeed the chairman of the Russo-British Chamber of Commerce highlighted Russia’s need for investment. He expressed deep disappointment over the pace of the reforms and the lack of domestic and foreign investment. “Russia can only exist as a major country if it gets its economy right,” he argued. Karasin agreed. The Ambassador added, speaking about Russo-British relations:

“We have succeeded in getting to a really high level of political dialogue. Our two leaders met five times in the last year, which is unprecedented in itself and I think that is good for both of our countries.” This had led to the two countries co-operating in crisis zones, and an improved understanding of each countries’ own policies. Karasin blames the lagging economic relations between the two countries on the slow pace of Russia’s economic and political reforms. As a result British investors lack interest in investing in Russsia.

A lecturer from the University College London stressed another problem facing Russia’s economy. The country is affected by both economic and political corruption, which it is trying hard to wipe out. Russia needs to get this under control to assure and attract foreign investors. The country itself, according to Karasin, loses “dozens of billions of dollars” because money is being laundered out of Russia.

This money is placed into secret Swiss bank accounts. “There are some quite specific plans to stop the transfer of huge sum of dirty money to outside Russia,” he said. The Russian government has put the eradication of money laundering and corruption high on its list of priorities. Karasin points out that Russia is not the only country facing this problem, and blames Russia’s emerging capitalism.

Russia, The European Union and NATO

His Excellency Grigory Karasin declared that Russia doesn’t have a “hidden agenda or aggressive thoughts.” Russia now seeks friendly and constructive relationships with all of its neighbours, major partners, Britain, and other European states. “The main distinction for Russia’s foreign policy for future decades is realism,” he revealed.

A year ago he came across a magazine article questioning whether Britain is European. The article argued that there are two European countries that talk about Europe being elsewhere and “not too sure if they want to be there.” The article spoke of Russia and Britain. Karasin refuted these suggestions “ on the part of Russia, because Russia is indeed a European country and after all we are not across the channel!”

He stressed that Russia’s deep cultural, intellectual, political and historical roots are in Europe. Russia, added Karasin, has also been influenced to a degree by the East. Karasin went on to emphasise Europe’s economic importance to his country. He said that 40% of Russian external trade is with the European Union. With an enlarged EU this trade would increase to around 60%. Therefore, he says, Europe is an important political and economic partner. He then quoted Samuel Johnson to demonstrate Russia policy towards Britain and the European Union: “One should keep one’s friendship in constant repair.”

Karasin described a recent summit in Moscow, at which a number of practical issues were discussed, as being “productive.” He added that there is “a growing team approach” to the Russo-European Union relationship. Karasin argued that the individual Europe countries are not faceless, because they have their own history, character, priorities and traditions. Europe, he explained, cannot develop independently from the wider world. “It very much depends on constructive relationships with the United States and Asia-Pacific, he said. He added: “Accordingly Russia would not like to believe some conspiracy theories that someone is trying to separate us from this positive process.”

           Russia and Europe Continued ...

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