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Russia has been making friends in the Western Hemisphere, especially Mr. Chavez in Venezuela. Russia is trying to strengthen ties again with Cuba. The problem that Russia and Venezuela both have currently is that these countries are major oil exporters and the bottom has dropped out of the petroleum market. Russia’s attempts to buy friends in the West have been dealt a blow as Panama and the rest of Latin America looks to Barack Obama in hopes of better relations with the USA.

According to press releases read in Panama, “When state television in Venezuela trumpeted the start of exploration this month by the country’s state oil company and a consortium of Russian businesses amid cries of “Comrades!” all around, little attention was directed to the drilling platform they were standing on. It had been leased from Scorpion Offshore, which monitors its rigs around the world from its home office in Houston.”

The United States remains Venezuela’s largest trading partner and Venezuela remains dependent upon US technology for its oil production. Likewise Russia’s oil wells were played out years ago until an infusion of Western capital and large Western oil company expertise brought Russia back to be the world’s leading oil producer. Panama is still more dependent upon US trade passing through the Panama Canal than any other shipping source. It is unlikely that Panama will ever be interested in losing US investment.

How does any of this affect Panama? Hopefully none of it does. However, when NATO gets involved in Georgia, the former Soviet state that now wants NATO membership and there is talk of stationing NATO troops on Russia’s Southern border an enlivened Russia could respond. Already Russia is selling arms to Venezuela and other states in Latin America. The Panama Canal is a prize. It would be nearly unthinkable for Russia or anyone else to directly attack the Panama Canal. However, a state sponsored terrorist attack is not out of the question. More likely would be covert support of political elements in Panama sympathetic to Russia.

For the last several years the US Navy has led exercises meant to enhance communications with interested governments in view of protecting the Panama Canal. The 2008 exercise, Panamax, was aimed toward a possible terrorist attack.

Under Panama’s years of military dictatorship Panama students went to Moscow to study. This seems to have been a way of tweaking Uncle Sam’s nose. At this time the democratic government of Panama is all about capitalism and business. As fuller employment has dramatically reduced poverty in Panama and foreign investment is fueling a real estate boom there seems little likelihood of change in Panama’s policies.

Luckily for Panama its conservative banks did not mimic the USA with sub prime mortgages and keep a pretty tight fist on money loaned for construction projects. Thus business is still booming and construction projects are still manned in Panama. The issues of the day are inflation and person crimes as general elections approach.

Panama’s labor unions are active as a voice of the working class. Strikes are common. The kind of repression that feeds discontent sufficient to accept foreign money, politics, and control does not exist in Panama.

Panama is happy with opportunity, safety, and family. Panama real estate investment is doing well. One doubts that Russia will have much success with Panama unless it wants to come in a business suit.