So the bond with Russia grows stronger. Moscow’s $500m sanction to upgrade the steel mills is not only a logical follow up of the president and foreign minister’s trips there, it is surely part of the first exchanges that define a new political stratagem in the region. Indeed, our Russian friends, quite smartly, and frequently, mentioned rigidities stemming from American designs towards both countries. This has happened just after Moscow foiled US designs on Syria, and Islamabad played a part in blunting Washington’s efforts to isolate Iran. Interesting times indeed.
But while pieces of the new political/diplomatic puzzle are put in place, it is important to focus the economic barter on carefully identified areas. The steel mills is a good start. One, it will put some polish on the most prized family silver. Two, it will set the stage for targeted fiscal expansion, with steel in plenty. Three, and perhaps most importantly in the long term, it will breathe fresh life in the PSE debate. Four, it may just set the precedent for restructuring similar organisations, followed by privatisation or smoother functioning in government hands.
It has taken its sweet time coming, but an alliance with Russia was only logical considering our logistics. There’s much both countries can do for each other. A good start would be helping each other emerge from political (and military) designs of other, not so friendly players, as soon as possible.
