“Russian imperialism” as the origin of the war? (1)

Capitalism already at the turn of the 19th and 20th centuries entered an imperialist phase of development. At the time the capital was subordinated to the state, the activities of peculiar services and armed forces, economical policy, diplomacy, cultural contacts.

On left-wing websites with a dogmatic attitude to the explanation of W.I. Lenin, 1 can meet with the the thesis that in present-day Russia capitalism reached an imperialist phase and this imperialism of Russia's elites led to peculiar Military Operations. According to the best known definition imperialism is characterized by 5 features. Since there is almost nothing to realize this definition in public awareness, it is worth mentioning in its entirety: “1) a concentration of production and capital that has reached specified a advanced degree of improvement that it has created monopolies that play a decisive function in economical life; 2. the spill-over of bank capital to manufacture and the creation of an oligarchy on the basis of this “financial capital”; 3. the export of capital as opposed to exports of goods is peculiarly important; 4) global monopolistic capitalist unions, dividing the planet and 5) ended the territorial division of the globe by the top capitalist powers. Imperialism is capitalism at this phase of development, erstwhile the reign of monopolies and financial capital developed, erstwhile the export of capital became of outstanding importance, the division of the planet by global trusts began and the division of the full territory of the globe by the major capitalist countries ended." Today, to modernize this definition, we can talk about global corporations. But the conflict to divide the markets of the origin of natural materials, the labour force – lasts a full steam.

The specificity of Russia’s “imperialism”

The imperialism of modern Russia, therefore, if it is, is circumstantial and hard to identify, as it concerns actually large natural materials and energy corporations dealing with the export and acquisition of natural materials in another countries and speculation in the financial market, and to a lesser degree manufacture and agriculture. Russia's banks play a smaller function in the planet arena. Moreover, there is an interior contradiction in imperialism. On the 1 hand, his companies and their oligarchs send out natural materials abroad, servicefully sneaking among abroad merchants to be allowed on abroad exchanges. It was believed that the ruling elite of Russia could not have besides large political ambitions, due to the fact that it could not enter into conflicts with the imperialistic Center of planet Economics. On the another hand, the authoritative propaganda argued that the main origin of peculiar Military Operations was the ‘humane mission’ initiated personally by president Putin. He cared for the people of Crimea and Donbass with all his strengths, and then tried to defend Russia from decay – as if there were no interests of Russian oligarchy.

In the process of globalisation, all modern capitalist class reigns, has to a greater or lesser degree both comprador and imperialistic features. Russia is 1 of the countries where these contradictions are manifest and where comparatively large social groups are affected. In mainstream propaganda, Russia's “imperialism” is portrayed as the main and western as a derivative and harmless, even humanitarian.

Putinian Russia, like Tsarsk, has a twofold position in the capitalist system: on the 1 hand, it has the possible to make a socio-economic and political alternate to the capitalist West on its own; and on the another hand, historical conditions have developed so that its technological dependence on leading capitalist states has drawn it into political dependence and uneven trade in goods.

However, despite progress, Tsarsk Russia mostly developed much slower. By planet War I, the differences with the West only deepened. The full policy of this power was to attract abroad capital to Russia, as was the time of the capitalist transformation. Until 1913, the share of abroad capital in public limited companies ranged from 30 to 40 percent. The largest share was in coal and precious metals extraction and steel production (up to 90 percent). Western capital controlled Russian banks and the gold ruble secured global settlements without major problems. Despite periods of famine in Tsarsk Russia, it exported grain.

Prior to the First planet War, the capital of the Ententa states (England, France and Belgium) put into Russia's economy in 1914 accounted for about 70 percent, and the capital of the Tri-Treasure about 20 percent. This determined Russia's alliances in planet War I and taking sides with the Ententa states. At the time, widespread corruption was not conducive to the modernisation of the army and adequate production of equipment essential on the front. The operation of Russia ran with double force. The recently created capital was located in abroad banks, and these granted loans to Tsarist Russia a much higher percent – as it is today. Tsarsk Russia was an object of capitalist-monopolist exploitation from the West, importing capital to a large degree and exporting natural materials and food. The tightening of social contradictions led to a revolutionary detonation in 1917, which put an end to the monarchy and large capitalist corporations in Russia. Currently, the mechanics of imperialist exploitation of Russia is analogous, and the interior and global effects are hard to predict.

Similarly, the Comprador neoliberal elites in Putin's period of government were acting in a likewise destructive way, promising modernization, independency from abroad capital, and at the same time continued the destructive export of abroad capital. The export of capital was greater than its inflow, and in this expressed the compradorical character of Putin's team. This squad defended its positions against criticism with all its strength, and any proposals for change crashed into the interests of the peculiarly strong Komrador elite of large natural material and fuel capital and banking.

What socio-economic causes pushed Russian capital into a war called peculiar Military Operations?

State participation in corporations and their impact on the state

After the dissolution of the russian Union and large privatisation, the union of the state and economy was peculiarly strong. For example, in Aeroflot, the state had by 2022 over 52 percent of the shares, and by 2023 it was already 74. It was powered by millions of rubles to reduce the impact of Western sanctions.

This form of state participation in the capital allowed companies to get additional funds from the state budget. The State utilized protectionism methods, which included subsidies and government procurement, social and price policies, made investments, licensed production, supported labour migration, created essential infrastructure, introduced additional taxes and taxation incentives, etc., etc. The companies then participated in the secondary division of national income into their roots.

In fresh decades, almost all countries have become increasingly active in the economical activity of businesses and have been in charge of their interests, for which corporations have shown their gratitude to state officials. Managing positions in state-owned companies and corporations were a rebound and a synecura for many withdrawing from the active life of politicians. Thanks to this, the members of the boards, the CEOs, the directors, and the directors gained large income.

Exports of capital

Exporting capital abroad plays an crucial function during the period of imperialism, which allows for additional profits from the exploitation of local labour and local natural materials. However, the expansion of capital faces periodic inhibitions. Under specified circumstances, all major companies and imperialist states face an excess of capital accumulation and profits then do not grow as production niches are occupied. The only option then is to introduce fresh technologies and decision older technologies to backward countries, where profits can inactive be achieved through cheaper labour. Each large capital strives to usage or make its own periphery and is ready for its military defence.

Capital exports were not typical only for the world's most developed economies. Capital from underdeveloped countries is besides exported, but mostly to rich countries. The export rate of capital can be determined on the basis of abroad direct investment. Transnational corporations affect full countries and continents. The United States, Western Europe, China and Japan have the largest number of specified corporations. However, there are states that are not only the Centre but besides the Semi-periphery and the Periphery from which capital is exported.

There is an export of capital from Putin Russia. However, for the first year of the peculiar Military Operations, it was not mainly an export of investment capital, but a ‘portfolio’ capital. The Russian capital continued to invest a large part of the profits in the securities of various countries, speculated at exchange rates and thus attracted additional profits. The essence of the armed conflict in Ukraine is the fight for influence mainly between Russian and Western capital, and Ukraine was mostly deprived of its independence. The appointment of Andrei Belousov as Minister of Defence and his fight against “corruption” had a very crucial political task. It was about scaring the oligarchs and officials and stopping the profits generated in Russia and directing them to the needs of the arms industry.

Russian capital from Cyprus and Ukrainian nationalism

In earlier years, Russian business exported its capital to Cyprus, for example, where there were low taxes, and was later imported to Russia as a ‘foreign capital’ for which state reliefs were provided. He besides invested in the russian republics. Russian capital dominated the territory of the Commonwealth of Independent States. In 2012, the most investments were made in Ukraine (US$17.8 billion), Kazakhstan ($1.3 billion), and Belarus ($6.7 billion). In 2022, Kazakhstan (0.8 billion), Uzbekistan (9 billion), Belarus (5.6 billion) and Ukraine (1.8 billion) were ranked first. As far as Ukraine is concerned, the Russian business at the end of 2014 had 45 percent of the investment in Kiev and Kiev district, then in Djepropetrovsk, Lugansk, Donetsk and Crimea. So it is no coincidence that the names of these districts most frequently appear in the current conflict. It was very crucial that in countries where Russian capital made larger investments, anti-Russian nationalism, the desire to implement multi-vector policy or something like that was immediately emerging. The emergence of these nationalisms was surely influenced by the interests of national capitals, the desire to argue the expansion of Russian capital, which at the beginning of the capitalist transformation had many facilitations. But Western capital, which promised faster improvement and a higher level of civilizational development, most likely besides influenced this. And promises, as we know, don't cost anything, but they truly stimulate imagination.

With any simplification it can be assumed that by 2014, Russian capital felt completely free in Ukraine. However, Western capital was already in the period of the first Majdan in 2004-2005 trying to displace Russian capital, but then failed. After Viktor Juszczence, Viktor Yanukovych (who had previously been Prime Minister) came to power and began to conduct a policy favorable to Russian campaigns. Russian capital invested, participated in privatization of state ownership, operated pipelines in Ukraine and benefited from a free trade agreement with the Commonwealth of Independent States (IDPs). For Ukraine, Russia even granted a debt for over $3 billion, which is improbable to recover.

Even before peculiar Military Operations, Russian capital was in the corner, doing everything needed for Western capital, and yet sanctions against it were increasing. Western capital sought a typical expansion. This must have been accompanied by the inciting of anti-Russian nationalism in the russian countries. However, Russia felt assured – repeatedly for further sanctions and attacks it did not even respond, or to a minimal extent. Consequently, Russian social networks even had opinions about the ongoing (despite the conflict) alleged agreement between Russian and Western capitals against the Russian and Ukrainian people that only the movement of labour from Ukraine to Western Europe is consciously realised through the conflict.

Russian nationalism besides developed in this way. Russia, for unknown reasons, closed its eyes for 8 years to fire the Donbass population and break agreements with Minsk, and later began to advance the view that she was "swindled like a fool." This unusual tendency of Putin's crew to be “swindled” is at least curious, which is most likely related to interests and their divisions in the womb of Russian oligarchy, which are not mentioned all day.

Combating Russian Capital

After the second Majdana in 2014, Petro Poroshenko came to power and immediately banned Russian campaigns from participating in privatization of state property, which deprived Western capital of competition. The government of Ukraine began to make life hard for Russian capital and to push it out of the home market, starting to force Russian capital to sale its assets with a large discount. Russian capital had to sale its assets in many areas, and erstwhile it refused it was nationalized. Ukrainian authorities shut down pro-Russian social media, which, regardless of everything, actually defended the interests of Russian capital. Poroshenko squad introduced individual sanctions, persecuted pro-Russian opposition parties. The fight against capital must so have been linked to the persecution of freedom of Russian speech. The Russian Oligarchs lost billions of dollars. For everyone it became clear that Russian capital would sooner or later lose all assets in Ukraine, that it would only be a substance of time.

Probably in 2022 there was to be a victorious business of Kiev, the establishment of a Marianite government and the withdrawal of the adverse capital of Russian legislation. But for unexplained reasons, something went wrong. In April, the ultimate Council adopted the Act on the confiscation of Russian property in Ukraine.

The protection of direct investments in Ukraine is only 1 of the reasons for taking specified a risky step as peculiar Military Operation. These billions of dollars of capital put in are not worth the losses Russia may endure in the event of a possible defeat in the war in Ukraine. Like Ukraine's gaining these billions of dollars was not worth destroying Ukraine, losing sovereignty and the death of over 500,000 civilians and soldiers. However, the failure of influence by Russian capital in Ukraine would be a blow to its image throughout the russian territory and a dangerous example to others, as well as dangerous to Putin's crew itself. The current contradictions are not new. For a long time, the russian republics have led a "multi-point" policy and drifted towards more economically attractive countries, specified as China, the USA, Turkey, the European Union. The peculiar Military Operation can halt the expansion of Western European and US capital and change much in favour of Russia and Russian capital – China can besides gain.

Capital expansion despite the “fail streak” at the front

Despite presenting the war in the Western mass media as a band of Russian army defeats, the expansion of Russian capital continued. In Kazakhstan, in 2023 the decision to build a atomic power plant was announced. It was stressed that this was a late investment, and the hold was due to the fact that most of the shares in uranium mines in Kazakhstan had English and American capital. But in December 2022 49 percent of their production capacity was taken over by ROSATOM, the majority in the supervisory board gained Russian capital and the decision to build the power plant was made immediately. The preparatory work for the construction of the atomic power plant was besides completed in Uzbekistan, which will depend on the improvement of the political situation in Kazakhstan and the improvement of anti-Russian activities of the Kazakh authorities. An agreement was besides signed on the construction of a second atomic power plant in Turkey.

The peculiar Military Operation drags and increases its costs, but besides increases unexpected profits. Therefore, the Russian authorities in the second year of the war even introduced a 10% taxation on extraordinary unexpected profits, as the authorities explain that they defend the interests of Russian capital abroad, so the capital should bear any of the costs. First, it was to be a voluntary tax, but the oligarchs refused to pay, so it was to be downloaded by a tax. Critics of this decision claimed that the gross from this taxation estimated at 300 billion rubles would not cover the budget deficit, that it would only represent the eighth part of it.

The authorities presented this decision as an action in the name of alleged social justice that the oligarchs besides bear casualties for war. The large capital active in exports and imports, however, did not lay down a weapon in defence of its profits. To make it more fun, the Ministry of Justice in Duma declared that this taxation is contrary to the constitution, and the regulation of law says that the law does not work backwards. It was so highly hard for the Russian State to collect this minimum taxation on peculiar Military Operations. In addition, the oligarchs explained that most of these extraordinary profits had to lose out on the consequences of sanctions. As we can see, then, the Ministry of Justice has stood up for a large capital that has constantly achieved “extraordinary” profits. The state inactive gives way to the force of the oligarchs, but must face social discontent. First there was to be 1 trillion rubles of tax, then 300 billion, but even that amount was called into question. It is no wonder that the patriotic part of the society binds its hopes to Belousov's anti-corruption activity.

In the opinion of any economists during the peculiar Military Operations, the real dependence of the Russian economy on imports was not reduced, even applicable action was not taken in this direction. The natural material nature of the Russian economy has not changed, only buyers of these natural materials are changing. advanced interest rates do not let native capital to make in Russia.

Looking at the problem of “Russian imperialism” by the prism of the explanation of imperialism, it is possible to say that global capital has utilized mainly another little developed countries in the past, while Russian capital is exploiting mainly its own nation, and that another nations, due to their low economical potential, are able to offer far little beneficial direct investment than the West. He frequently lost due to additional political and economical force from the US. The confrontation of these capitals was inevitable and had a general tendency to intensify. This fight against Russian capital joins the joint front of the BRICS countries against an unfavourable financial system, mainly controlled by the US and the UK. Russian capital under an umbrella of Chinese may nevertheless hold the ability to grow and defend its positions. peculiar Military Operation is not a Russian-Ukrainian war.

Dr Edward Karolczuk

Think Poland, No. 47-48 (17-24.11.2024)