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The Kremlin ordered a sharp increase in defence spending today but insisted that Russia was not on a path to war with the United States.
Alexander Yakovenko, the Deputy Foreign Minister, ruled out military conflict with Russia's former Cold War adversary. He also called on the European Union, rather than Nato, to act as guarantors of Georgia's security after last month's war.
“Regarding the possibility of war between the United States and Russia, this possibility is ruled out,” Mr Yakovenko told reporters in Moscow.
His remarks came as President Dmitri Medvedev called for a full-scale overhaul of the international security system, which he described as "bankrupt".
Mr Medvedev proposed a new pan-European security treaty shortly after he became President in May, but it received only lukewarm support among Nato members. He taunted Nato over its failings and said that the Georgia crisis showed the importance of his idea.
"The likelihood that a major European treaty will be signed after the events in the Caucasus is increasingly growing. That is now clear even to those who were telling me that there was no need for that and Nato will secure everything," Mr Medvedev told leaders of non-governmental groups at a meeting in the Kremlin.
"What has Nato decided? What has it secured? It only provoked a conflict, nothing else."
The President spoke as the Duma, Russia's lower house of parliament, passed a 25 per cent increase in defence spending next year from $40 billion to $50 billion. Russia's three-year budget forecast includes further increases to $54.5 billion in 2010 and to $58 billion by 2011.
However, Russia's military budget remains barely a tenth of the $480 billion spent by the US Pentagon this year. Mr Medvedev told defence chiefs last week that the Georgian war showed that Russia had to modernise its military as "one of our top priorities".
Booming oil revenues allowed his predecessor Vladimir Putin to quadruple defence spending, with $189 billion earmarked to upgrade army and navy equipment by 2015.
Mr Medvedev insisted yesterday that Russia was not returning to an isolated, authoritarian past. He said that it sought "full-fledged dialogue" with the West, adding: "We aren't trying to teach anyone, we want our views to be heard".
Mr Medvedev declared as recently as May that Russia objected to attempts to "interfere in other states' affairs, not to mention attempts to revise borders". His recognition of Abkhazia and South Ossetia as independent states after the Georgian conflict has rewritten the rule-book, however.
Many in the West fear that a newly assertive Russia will seek to stir up separatism in Ukraine as a means of wrecking its Nato ambitions. Nato is due to consider membership applications from Ukraine and Georgia in December.
Though Russia's invasion of Georgia was its first military incursion into another country since the Soviet invasion of Afghanistan in 1979, the once feared Red Army is still a shadow of its former self.
It has shrunk dramatically since the Soviet collapse, from 4 million men to Russia's 1.1 million now. Despite its crushing victory, military analysts said that Russia's army lacked modern precision weapons and satellite navigation.
The Russian Navy announced that it will introduce a new long-range ballistic nuclear missile on submarines next year. The Bulava-M has been developed for a fleet of new strategic nuclear submarines, the Borey-class Project 955.
The first of seven vessels, costing $890 million each, is currently undergoing sea trials and will be equipped with 16 Bulava missiles, each with up to 10 nuclear warheads and a range of 8,000 kilometres (5,000 miles).
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Once we eliminate our energy dependency on the russians, Russia won't more more scary than Iran to us
And how do you think to do that ? Take the russian gas/oil reserves and move them to New Jersey ? The reserves are there (the 1st in the world, for gas), we need them, so let's talk business...
Leonard, Sardinia,
All the thugs in the middle east and africa carry ak-47s
AK47 is made all over the world, from Egipt to Nevada (for a bulgarian firm . I swear), mostly without license: an heritage of good old "socialist" days . Russians now make AK100something, keeping it for themselves...and it's VERY better...
Leonard, Sardinia,
Alex, Moscow, Russia
Our military every day became more and more outdated 21 century war is not war of guns it's war of electronic. Today it's not critical but tomorrow... We're already using french stuff in our aircraft and tanks. And please stop your rhetoric, don't let them to provoke yourself
Aleksei, Ural, Mother Russia
Russia don't need a smart hammer to put a nail in US infrastructure coffin!!!
Alex, Moscow, Russia
Ivan Shelepin, Ufa, Russia
Any? Are you serious, you guys have like 15,000 N W and we have 10,000.
So let's say god forbid, China goes to war with Russia, they get nuked that's just stupid.
Luigi, Brooklyn, NY, United States of America
The World Needs Russia strong. A strong russia is a good counter balance to us. I mean the Untied States. We need the balance to check ourselves from reaching to far in areas we shouldest be reaching. Think of it as a global "checks and balances system"
Bill, Chicago, USA
Everyone is missing the point.. Any war between the US and Russia will be THERMONUCLEAR! The newly adopted Russian military doctrine states that Russia could answer with a nuclear strike against any conventional war initiated against it. Having old T72 or precision weapons won't matter...
Ivan Shelepin, Ufa, Russia
What a diference between former KGB agent (Putin) and Mossad agent (Livny). Why west is so touched by Zsipy Livny and so irritated by Putin? The USA had the former clown as presidebt (Reigan). What's wrong with it?
Eugene, Tyumen, Russia
Eugene, Tyumen, Russia
Notice all the trouble spots in the world have 1 common variable...(Russian organised crime-KGB-Politicians)!
IRAN is causing trouble in Iraq only with russian support now it is flezing nuke muscle. All the thugos in the middle east and africa carry ak-47s and various other russian munitians. sad!
D, Moscow, Russia
Well The US, does spend billions in its military, a powerful nation, a powerful military.
Luigi, Brooklyn, NY, United States of America
On August 7th... the Georgian government launched a major military operation into Tskhinvali and other areas of the separatist region. Regrettably, several Russian peacekeepers were killed in the fighting
Condoleezza Rice
Condy finally agrees she's been been lying all the time
Leonid, Moscow,
Vince of Kansas City
Like many Americans you seem to think US could easily defeat Russia without incurring any damage to US infrastucture.
An attack on Russia by US could result in complete destruction of US infrastructure and milllions of lives.
It would not be the same as going to war in Iraq
Davo, Auckland, New Zealand
Russia would be target practice, we would take down their infrastructure and it would take a decade or more to rebuild. They would have little to no foreign investment to help withe rebuilding, because noone would trust they would get their money back...Nukes would be suicidal not an option.
Vince, Kansas City, USA
The lack of historical perspective is mind boggling. Imagine for one moment if the positions of the US and Russia were reversed in terms of global power position. It would be a very dark world indeed. The US has a right and responsibility to protect its interests abroad, namely access to energy.
Brad, Seattle, USA
Keep in mind that Russia doesn't need smart weapons, for example. Unlike the US, when Russian goes to war they practice a scorched earch policy of laying waste to civilian centers. See Chechnya.
Brad, Seattle, USA
The EU and USA spend a total of $900 billion on defence.
Give it up USSR...I mean Russia
Phill, The Wirral, England
We have 300 T90 only(!!!) when India has >500 T90 we sold them. If our guys in S.Ossetia had been equipped with this stuff instead of that trash they used (I mean T72), we'd have lost much less soldiers. This is not to war with US, this is because our tanks are completely rusty
Aleksei, Ural, Russia
To Chris,NYC
World will never be free underUSAdominace. USA invades other countries for there own gains and calls that democracy. I will just be glad when that day ends. SoUSAcan't invade smaller countries that they have something they want. That's democracy, not one country controlling everything
Marko, Birmingham, UK
Russia will have trouble finding enough young people to field a military in a couple of decades. Its demographic situation is grim, to put it mildly. Talk of Russian hegemony is grossly overstated. They are simply trying to relive past glories. Their days in the Sun are over.
Vernon, Greenville, South Carolina, USA
US military budget is ten times Russia's because it includes the costs of two wars and Russia has the ability to produce what are in many cases superior weapons for a fraction of US cost. Remember when US spent $9.0M to develop ball point pen to write in space and Russians just used lead pencils!
Davo, Auckland, New Zealand
Russia is looking to "Defend" it own interests, namely those in the artic. Russia itself is attempting to redraw it territorial rights so that it can have unfettered access to the vast amount of natural resources that will soon be acceptable. It will need a modern Army/Navy to accomplish this.
Chris from Roseville, Roseville, USA
USA, Canada, Denmark and Russia all have claims on those resources in the artic
Chris from Roseville, Roseville, USA
2 Horace, Florence, Tuscany, Italy
You may eliminate what you like. But among other "articles", please don't forget about that Nuclear Weapons. Those are much more powerful argument than gas and oil altogether. And THOSE are the only reason why till now RF is still not annexed by NATO... Get real.
vsevolod, Omsk, Russia
New Lies for Old...written in 1990 by an Ex- Russian KGB agent that turned to the west should be read by all of you ...The bear has been doing what it has planned all along...from collapse to its new rise....Don't be fooled !
Ed , Albion, Usa
Chris, New York.
"Free, democratic world" - with all due respect, you band these words around without a concept of their origin or application. Freedom, does not merit imposition of ones own values (i.e. the US's interests) on others. Democracy should not enable invasion - but it does.
Sabs, Eton, UK
Even if US & Russia are spending the same GDP % of 4% according to Caleb from Kansas - there is still a hugh difference between approximately 50 billion and over 500 billion. You can do a lot more with 500 billion than 50 billion. But I hope this is not a road to destruction for Russia & US.
Naleen Lal, Northern California,
Caleb from the USA "We have more assets to protect so it takes more force" sadly you include other poeples assets (oil, gas...bananas :-) as your assets
t.andre, london,
To A.A. from Melbourne:
I understand your cynicism, however, let's be rational for just a moment. The free, democratic world would not enjoy its current security & prosperity were it not for - or projection thereof - the U.S. military. Furthermore, you should try reading a modern history book.
Chris, New York City, USA
Does this really surprise anyone? The US is overextended and having financial difficulties. That translates to the US having less leverage on other nations.
Russia's, China's and India's economies are on the rise. Which means the US will have decreasing influence in the future.
Brandon, Seattle,
The USSR was completely resource self-sufficient. Other than reclaiming former Soviet republics to get those resources back, I don't think Russia has plans for world domination. Europe will bow to their wishes since they provide the oil. USA should take care of its own failing system.
Heather, spokane, usa
US military expenditure is $583 billion. EU countries military expenditure is $311 billions. There's definitely no military threat to the West. The real threat to Europe is the energetic one. Once we eliminate our energy dependency on the russians, Russia won't more more scary than Iran to us
Horace, Florence, Tuscany, Italy
How much we spend on our military is relative to our GDP. We have more assets to protect so it takes more force. Russia and the US spend both about %4 of the GDP. It's ridiculous to look at it any other way.
Caleb, Kansas City, USA
I think you mean "Offense Spending."
Jerome Butler, Dallas, USA
Bravo! Just figures and facts. Thank you, sir.
Dmitry Ivanov, Moscow,
And now... to hear watch for all the American comments & cries how Russia should not be trusted etc
(even after Iraq, Afghanistan, etc)
BUT MAIN POINT: Russia's military budget remains barely a tenth of the $480 billion spent by the Pentagon this year
A.A., Melbourne, Australia