March 14, 2009 By James Kimer

Losing Central Asia

From the Chicago Tribune:

At a time when the world’s financial crisis has most countries hunkering down, Russia is parlaying the global meltdown into a lever for expanding its influence in Central Asia and other former Soviet republics that the Kremlin regards as its “near abroad.”

The Kremlin has stewarded a plan to prop up five cash-strapped former Soviet republics by establishing a $10 billion bailout fund, three-fourths of which would be nourished by Russian coffers. Moscow is also giving Armenia a $500 million loan and has promised $2 billion for Belarus.

With its economy in shambles, Kyrgyzstan has little choice but to comply with Russia’s wishes, experts say.