The Economics of Propaganda or Propaganda of Economics

Russo-Ukrainian relations have been developing in quite astonishing ways during recent weeks. On the one hand, there is an unprecedented number of official meetings: the President of Ukraine met the President of Russia in Sochi, our new Minister of Foreign Affairs met Putin in the Kremlin the next day after Vladimir Vladimirovich returned from vacation. Everything is wonderful, everybody is negotiating everything. Putin even called specially to Sochi Viktor Khrystenko and Rem Viakhirev in order to inform them about the results of his agreements with Kuchma. Such style, brilliance, and beauty! On the other hand, the world press writes not about progress of the Russian-Ukrainian collaboration but about success of Gazprom, which agreed with its western partners concerning its alternative gas pipeline construction. The Ukrainian press also writes mainly about this, the politicians comment, the President of Ukraine says that it also did not escape his notice. Incidentally, there is a sober estimate, for the Ukrainian government is now becoming hostage to a successful Moscow propaganda campaign. Gazprom’s triumphal statements are interpreted in human words simply: well, so much for you. The fact that Gazprom’s Western partners propose Viakhirev agree with the Poles independently and do not insist at all that Europe needs increasing quantities of Russian natural gas is completely ignored by the propagandists — it mars the picture. Also not emphasized is the fact that the new gas pipeline will not in the least change the transit capabilities of Ukraine. Still, the idea of the need to compromise today because nobody will need our favors tomorrow is gradually capturing the minds of Ukrainian politicians.

It is not so, even should the new gas pipeline go from paper to reality in some years. We cannot force our neighbors to route things only through our territory. Thus Moscow kills two birds with one stone: it frightens the Ukrainian provincials and spoils our relations with the Poles. We simply need to learn how to tell propaganda from the real economy and bring our own economy to reform. Only then will our relations with Russia look like those between two neighboring countries, but not like two Soviet republics sitting down together. Indeed, next time we will meet not in Sochi, for the President of a country with a reformed economy is hard pressed to find time for resorts, neither his own ones nor foreign ones. There is just too much work.