Soviet and Russian Relations with Foreign Corporations: The Case of Gold and Diamonds

When the Soviet Union collapsed, Russia and the other successor states lost much of their collective strategic significance for the international community. Russia's role as a new member of the nuclear club is potentially destabilizing but does not present the overriding nuclear threat once posed by the USSR. Although Russia is attempting to reestablish its traditional roles in Eurasia, the Balkans and eastern Europe, its political importance has generally decreased commensurate with the collapse of the Soviet military machine; Russia is important economically only insofar as it is a powerful magnet for western aid and investment. While this perception of gradual marginalization, apparently shared by western diplomats, academics and journalists, may be largely accurate, it is incomplete. It overlooks Russia's potential role as a source of natural resources.