In the aftermath of this cataclysmic event it was assumed that the imperial ambition of Russia, the successor state of Soviet Union, hitherto a super-power, had also vanished. Such notions were reinforced in the nineties during the presidency of Boris Yeltsin, who often indulged in the acts of drunken tom-foolery, which dragged Russia backward. Of course, he dealt last mortal blows to communism during his rule -- failing, however, to construct a viable democratic polity in its place.

As a result, Russia sank deeper into ideological confusion, financial bungling, cronyism, widespread corruption and public misery. Yeltsin remained steadfast in his unflinching obeisance to the West, which could rest assured that foreign policy towards Russia could be conducted, because diplomatic considerations required to deal with an expansionist Soviet Union did not apply any more.

Belying those prognoses, Russia has, only after a decade and half, bounced back to centre stage as a great power, even if it is far away from its former super-power status as the sole opponent of American power. Although the Soviet Union is long gone, the West is once again groping to understand what motivates the Kremlin leaders in their drive to acquire power, and sees a new cold war, this time against Vladimir Putin's Russia, in the offing.

Russia has indeed transformed itself a great deal since 2000 when Putin became president, and the problem of fitting Russia into the world's diplomatic and economic structure has become more profound. Added to it is the fact that Russia straddles the world's geo-political heartland and is heir to an imperial tradition.

Notwithstanding the West's blowing hot and cold with regard to Russia's expansionist impulses since communism's demise, it cannot counter Russia's relentless drive to recapture its lost standing in world politics, even at the expense of its neighbours.

Thanks to high-energy prices the chaotic conditions that prevailed across Russia during the 1990s have given way to several years of 6.5 percent annual economic growth, and a trillion dollar economy with a booming stock market. Reportedly, Russia now possesses the third largest hard currency reserve in the world, and is running a huge current account surplus and paying off the last of the debts accumulated in the early nineties.

High energy prices and raw material exports have helped Russia to become the world's tenth largest economic power. With her Rouble made fully convertible, Russia is well integrated with world economy as a member of the World Trade Organization (WTO) and the prestigious G-8 club.

Russians seem grateful to Putin for the country's stability and steady economic growth. They are proud that Russia now matters when the global issues are debated. No wonder then that Putin's popularity rating is around 70 percent, a sustained achievement that any politician would envy. Obviously, with his position well entrenched in Russia politics, Putin aims high with regard to his country's future -- a fact that might bring him on a collision course with the status quo in world politics.

On the flipside of Russia's resurgence, there is greater state control of the economy -- especially in the energy industry where such control has cast a dark portent. According to OECD (Organisation for Economic Cooperation and Development) the state's share of oil production has doubled in three years, breeding corruption and inefficiency, and serious political opposition has been muzzled.

Newspapers, and television and radio stations, have been shutdown or taken over by the government and its allies. Kremlin cronies have replaced elected regional governors, and Russia's parliament, Duma, has been emasculated as part of the Kremlin's drive to monopolise state power. Russia's foreign policy has been equally troubling.

Moscow has given Iran diplomatic protection for its nuclear ambition, and Russia's arms sales are indiscriminate. The Kremlin has consistently harassed neighbouring countries such as Georgia, which faces economic strangulation. In February last, Putin spoke about creating a "gas opec" with Russia's fabulous reserves of gas.

Yet, none of the steps taken by Putin is surprising, for Putin's aim has been unwavering from the start of his presidency -- restoring Russia's greatness. Order, power and reviving Russia's international influence are what matter in today's Kremlin. But despite strong economic growth Russia's domestic problems are awesome.

In the long run, the country's systemic weaknesses may prove more disruptive to the world than its revived strength. Energy exports finance about 30 percent of te Kremlin's budget. But that is based on the assumption that the oil price will remain at $61 per barrel constantly.

Apart from oil Russia's industrial exports primarily consist of armament, with advanced aircraft accounting for more than half of the sales. This lack of economic diversification leaves Russia vulnerable to any downturn in export prices of limited commodities.

Moreover, without the rule of law, which is still wanting in the federation, and an unadulterated democracy, today's growing middle class in Russia will never acquire either the dynamism or the confidence it needs to sustain a modern economy, however much robust it may be.

Meanwhile, the insurgency in Chechnya has been met by Kremlin's local strongman, whose minions openly terrorise, kidnap and kill opponents. The North Caucasus is virtually a tinderbox. The Russian army is riddled with graft, as it was also during the Yeltsin era. Islamist extremism among the 17 percent of Russian population that is Muslims is being incubated through neglect.

Throughout the Yelstin era it was fashionable to liken Russia to Weimer Germany -- a nation so humiliated and shaken to its core that it might resort to xenophobia of sorts. Even if that did not happen then, today's oil-fuelled revival of Russian power may lead it to mount such a challenge, particularly where world energy supplies are concerned.

Whether or not that is a possibility, the west is already seized with the dilemma of how to tackle a resurgent Russia with its authoritarianism-tinged democracy, and an ideology which is confusing at best.

Brig ( retd) Hafiz is former DG of BIISS.