Everything depends on just how badly Russia will be affected, and whether its health service can handle it. The official statistics are already in doubt: Sobyanin dared to question the figures, in a TV debate with the President. He revealed in public what doctors and dissidents had argued for weeks. That is because 70 per cent of all Russian infections and deaths from Covid-19 have so far been recorded in Moscow. But even those are likely to be an underestimate. Testing everywhere has been patchy, erratic and slow, with all swabs having to be sent to a single laboratory in Siberia for analysis.
On the downside, Russia’s medical services are under-funded and ill-equipped, especially in the provinces. There has been an angry backlash on social media – where the younger generation get all their information – against Putin’s decision to send supplies of face masks and ventilators to Italy and America when his own medical service is desperately short of the same things. An upsurge in infections would swiftly overwhelm the capacity of cash-strapped hospitals across the country. Although the true mortality rate may not become apparent immediately, official death statistics will be hard to suppress indefinitely.
On the upside, Russia’s economy has already been forced into semi-isolation by Western sanctions, imposed after the Russian takeover of Crimea in 2014, and its support for the separatist insurgency in Eastern Ukraine. There is less reliance on imported food, which was a big drain on the balance of payments. The Russian government has also built up almost $570bn in gold and foreign exchange reserves while the oil price was high, which would normally be enough to tide the Russian economy over the current price crash for at least 18 months.
On the other hand, Russia’s extraordinary decision to pick a battle on oil output with Saudi Arabia – although ostensibly intended to undermine US shale oil production – rocked the stock market and caused a slump in the value of the rouble. That will certainly hit the emerging Russian urban middle classes, who have become increasingly reliant on imported goods and accustomed to foreign holidays.
Taken altogether, however, Putin is facing two huge challenges beyond his control – the pandemic and the global economic crash – just at the moment when he has launched a domestic debate on his own presidency. His flat refusal to cut oil production at the request of Saudi Arabia and its OPEC allies has now been reversed, with the latest agreement on April 12 set to make far more drastic output cuts than first proposed by the oil cartel. That came after the direct intervention of Donald Trump – and no fewer than five direct phone calls from White House to Kremlin – making Putin look as if he had bowed to a higher authority. Even now, there is no guarantee that the cuts will stabilise the oil market, with a huge collapse in global demand. If the oil price does not recover, it means that he will no longer have the budget surplus needed to fund the welfare spending promised in his constitutional reform package. Putin’s pact with the Russian people is based on his capacity to deliver stability and prosperity. Both are now in doubt.
What are the implications for the rest of Europe of a Russia ruled by Vladimir Putin until 2036? What consequences can we draw from this for European policy towards Russia?
Alexander Baunov, Senior Fellow at the Carnegie Moscow Centre, sees Putin’s constitutional coup as confirmation that "as far as the men in the Kremlin are concerned, losing power means losing Russia. That is more important than any constitution." He sees the main losers from the operation as the "in-system liberals" who were still hoping for top-down incremental change in Russia, and the beginning of a more genuinely competitive system from 2024.
What about the rest of Europe? There can surely be no illusions now in Berlin, Brussels, London or Paris about Putin’s disdain for democracy and the rule of law. He has made a clear choice to reinforce his personal power, and stay in charge for the foreseeable future. He sees "liberal democracy" as a failed system, and the European Union in particular as the embodiment of that failure.
His reform package also makes clear that he will continue to beat the nationalist drum to regain respect abroad and revive his support at home. It will be written into the constitution, for example, that the integrity of Russia’s borders is sacrosanct, which implies a flat refusal to reconsider the status of Crimea, and that international law cannot take precedence over national law in Russian courts.
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