Russia is fighting a new Cold War with banks and pipelines, not tanks and warplanes

It has stitched up energy deals in North Africa; it flirts with Iran and sells weapons to Hugo Chavez, the America-hating windbag who runs Venezuela. And by using energy diplomacy and divide-and-rule tactics, it is stitching up Europe country by country, from Cyprus to the Netherlands.

Partly it is simple anti-Americanism: if Vladimir Putin is making life difficult for George Bush, he must be a good guy. That attitude lies behind the astonishing opinion polls in countries such as Germany, which show that people have more trust in xenophobic, authoritarian Russia than they do in the world’s most powerful democracy.

But this is to misunderstand Russia under its kleptocratic and chauvinist ex-KGB rulers. Russia likes multilateral organisations, so long as it dominates them. It runs a whole bunch: for example, the “Commonwealth of Independent States”, which it is using to legitimise its occupation of Georgia.

Similarly, although the Kremlin makes life difficult domestically for Western oil companies and tightly restricts foreign investment in any industry that it dubs “strategic” (which potentially covers almost anything), it is another story abroad. Russia delights in the possibilities of the global economy. If regulators in New York are sniffy about listing stolen companies on the stock exchange, there is always London. And if you fail even London’s undemanding test, Dubai, Bombay and Shanghai await with open arms.