Medvedev sows seeds of future irrelevance

Russia, it seems, is determined to play the role of "world villain" after voting against imposing sanctions on the vile regime of Robert Mugabe in Zimbabwe. The Russian state is also suspected of backing numerous covert assassinations in the past year, including the polonium killing of Alexander Litvinenko in London. President Dmitry Medvedev also managed to sour the tone of the G8 summit last week when he threatened retaliation should the US go ahead with its missile shield system.

However, this is not a return to the old days of the Iron Curtain. Russia is unlikely to become the big, bad beast of the superpower world again because, unfortunately for normal Russians, its leaders show every sign of being as hopeless at economic management as their Soviet predecessors.

Medvedev announced last week that foreign ownership of companies in 42 industries would be severely limited and Russian businesses would also be restricted in their attempts to raise capital in international markets. Flush with cash from booming commodity prices, the Kremlin clearly feels it can do without the flows of capital and knowledge that have helped so many other countries to develop.

Much of Russia's industry remains highly inefficient and the Kremlin's hostile attitude towards foreigners will keep it that way, limiting the country's potential.

Medvedev is sowing the seeds of Russia's future irrelevance not turning it into a feared superpower.