Matthew Kroenig's argument for preventive military action to combat Tehran's nuclear program -- "Time to Attack Iran" (January/February 2012) -- suffers from three problems. First, its view of Iranian leaders' risk calculations is self-contradictory. Second, it misreads nuclear history. And third, it underestimates the United States' ability to contain a nuclear Iran. When these problems are addressed, it is clear that, contrary to what Kroenig contends, attacking Iran is not "the least bad option." 

Kroenig's view of the way Iranian leaders are willing to take on risks is deeply incongruous. In his view, a nuclear bomb will push Tehran to block U.S. initiatives in the Middle East, unleash conventional and terrorist aggression on U.S. forces and allies, and possibly engage in a nuclear exchange with Israel. This would mean Iranian leaders are reckless: given the United States' conventional and nuclear superiority, any of these actions would provoke considerable retaliation from Washington. And, of course, a nuclear exchange with Israel would invite annihilation. At the same time, Kroenig suggests that Tehran would remain remarkably timid after a preventive strike from the United States. Presented with clear redlines, Iran would not retaliate against U.S. troops and allies or attempt to close the Strait of Hormuz. Kroenig's inconsistency is clear: If Iranian leaders are as reckless as he seems to believe, a preventive strike would likely escalate to a full-blown war. If they are not, then there is no reason to think that a nuclear Iran would be uncontainable. In short, a preventive attack on Iran can hardly be both limited and necessary.

Kroenig's argument misreads nuclear history at least three times. First, he writes that a targeted preventive strike would likely wipe out the nuclear program in Iran, as strikes against Iraq in 1981 and Syria in 2007 did in those countries. These comparisons are misleading. Recent research based on captured Iraqi documents demonstrates that the 1981 Israeli attack on the Osirak reactor, near Baghdad, actually spurred a covert nuclear weapons program at other sites. Indeed, Iraqi President Saddam Hussein remained determined to revive his nuclear program until he was removed from power in 2003. What prevented him from achieving that goal was the decade-long U.S.-led containment regime put in place after the 1991 Gulf War. The Iraqi case suggests that any attacks that do not depose the Iranian regime, too, would cause it to accelerate its efforts to acquire nuclear weapons. Kroenig's prescription might therefore precipitate the very outcome he is trying to avoid. 

As for Syria, Damascus' nuclear program was just budding. The country boasted only one exploratory facility, which was shattered easily by a single aerial bombing carried out by Israel in September 2007 under the cloak of night. But Iran's nuclear program is much more advanced and is already of industrial proportions. Any attack on Tehran would involve destroying numerous nuclear-program and air-defense targets, making it far more costly and less likely to succeed than the Israeli raid against Syria's Deir ez-Zor reactor. More, Iran's advanced program reflects Tehran's greater resolve to develop nuclear capabilities, so, post-attack, Tehran would be ever more likely to double down on developing a weapon. Furthermore, although Kroenig hopes that a targeted strike would destabilize the Iranian regime, there is no basis for such optimism. Being a civilian, parliamentary, oil-rich theocracy, Iran is relatively stable. Put simply, a preventive strike against Iran can hardly be both limited and effective.

Kroenig misreads history again when he considers a nuclear exchange between Iran and Israel. In his view, they "lack nearly all the safeguards that helped the United States and the Soviet Union avoid a nuclear exchange during the Cold War." Yet the United States and the Soviet Union avoided a nuclear exchange even during the hottest crisis of the Cold War, the Cuban Missile Crisis, at a moment in which Soviet retaliatory capability was still uncertain, there were no clear direct communication channels between the two leaderships, and Soviet experience managing their nuclear arsenal was no longer than five years. Moreover, the historical record shows that even young and unstable nuclear powers have avoided nuclear escalation despite acute crises. Pakistan and India avoided nuclear war in Kargil in 1999, as well as after the terrorist attacks targeting the Indian parliament in 2001 and Mumbai in 2008. When national survival is at stake, even opaque and supposedly "irrational" regimes with nuclear weapons have historically behaved in prudent ways.

Kroenig's final abuse of history comes when he posits a cascade of nuclear proliferation across the Middle East in response to an Iranian bomb. He mentions Saudi Arabia, and implies that Egypt, Iraq, and Turkey might all follow suit. Yet none of these states, which can count on U.S. support against Iran, nuclearized in response to Israel's nuclearization (against which they cannot count on U.S. backing, mind you). And more generally, the United States has a successful record of preventing clients from acquiring nuclear weapons in response to a regional enemy, such as South Korea and Japan in response to North Korean nuclear acquisition. (Washington agreed with Pakistani nuclearization in response to India.) 

Taking the long view, Kroenig's argument reveals an unwarranted skepticism about Washington's ability to contain a nuclear Iran. This skepticism is all the more surprising considering Kroenig's work on the benefits of U.S. nuclear superiority. Existing U.S. security guarantees, based on current capabilities, give allies little incentive to nuclearize. Egypt and Saudi Arabia are among the largest recipients of U.S. military support, and Turkey is a member of NATO. Reinforcing U.S. ties with friends in the region would be easier, cheaper, and less risky than attacking the Iranian nuclear program. 

Instead, the United States should heed the lessons of the North Korean nuclearization. Not so long ago, Washington had to face an aggressive regime in Pyongyang intent on developing nuclear weapons. The United States rejected a preventive strike in 1994 for fear that the outcome would be worse than its target's nuclear acquisition. This was the right decision. After North Korea acquired nuclear weapons, none of the consequences that Kroenig's argument would predict materialized. U.S. security guarantees contained Pyongyang and persuaded South Korea and Japan not to acquire nuclear weapons. Nobody believes that the world is better off with a bomb in North Korea -- but the record shows that it hasn't brought the end of the world, either.

Military action against Iran would be a profound strategic miscalculation. For all the talk of retrenchment, the U.S. military might remains the most powerful in the world, and it can successfully minimize consequences of an Iranian bomb, should one come to pass, by containing Tehran's ambitions, dissuading regional proliferation, and providing security assurances to its allies.

The nuclear weapons news of late has been alarming. David Sanger reported in "The New York Times" on January 9 that Iran's top nuclear official had announced his country was near initiating uranium enrichment at a new plant. And the recent leadership change in North Korea means added uncertainty about one of the world's most unpredictable nuclear weapons states. Both developments mean the danger is rising that nuclear weapons or the means to make them will spread in this year.

The ominous news brings to mind a comment that Robert M. Gates made a few years ago while working as President Obama's Secretary of Defense. "If you were to ask most of the leaders of the last administration or the current administration what might keep them awake at night," he told me, "it's the prospect of a [nuclear] weapon or nuclear material falling into the hands of Al Qaeda or some other extremists."

I was interviewing Gates for a book about nuclear threats. The book, "The Partnership: Five Cold Warriors and Their Quest to Ban the Bomb," [Harper, $29.99] examines the acute state of nuclear dangers today, including the spread of nuclear materials and technology to unstable nations like Pakistan, North Korea and Iran. If a terror group like Al Qaeda is ever going to get its hands on a nuclear weapon, or more likely the fissile material needed to make one, the source is likely to be one of those three nations. North Korea and Pakistan have a frightening history of exporting nuclear weapons technology. Iran may be next.

Despite the denials of Iranian leaders, Tehran seems well on the way to building its first nuclear weapon. Iran already has enough enriched uranium to make several warheads once the uranium is raised to a higher level of enrichment. The enrichment process can move very quickly from a low level to high, bomb-grade levels. Some upgrading of known Iranian enrichment facilities are required to get there, and these changes would be visible to the outside world. Still, Iran may well have hidden enrichment programs already cranking out highly enriched uranium. If it does move openly to higher enrichment, Israel and the United States will be tempted to attack Iran's nuclear installations.

A simple but powerful nuclear weapon can be fabricated with just a small amount of highly enriched uranium. The hardest part of making a uranium bomb is producing highly enriched uranium, something that requires advanced, industrial-scale technologies beyond the reach of a terror group. But with just 60 pounds of highly enriched uranium, a small, savvy group of engineers with some basic laboratory equipment could construct a fission bomb in a garage. The bomb mechanism is so straightforward that the United States did not bother to test a uranium weapon before dropping one over Hiroshima in 1945. And it is not wildly improbable to imagine Iran giving highly enriched uranium to a terror group.

The continuation of the Kim dynasty in North Korea - now in its third generation with the recent installation of Kim Jong-un as the new supreme leader - does not augur well for more responsible behavior by North Korea. With its active nuclear weapons program, hunger for hard currency and record of selling nuclear weapons goods to Libya and Syria, North Korea is one of the most dangerous nations on earth.

While North Korea is unlikely to sell a nuclear weapon to a terror group, it could provide the materials and knowhow to make a crude but powerful bomb. The United States, for all its intelligence-gathering hardware like spy satellites, does not know a great deal about the North Korean program. Washington was surprised to learn in 2010 that North Korea had constructed a uranium enrichment plant outfitted with the latest centrifuge technology. News about the existence of the plant came from a group of American scholars who were shown the facility during a visit to the North Korean nuclear complex at Yongbyon.

The plant is not a problem if it is producing low enriched uranium to fuel a small, light water reactor. But the plant could be used to produce highly enriched uranium. The rapid construction of the plant - it was built in just 18 months - suggested that the North Koreans might have honed their techniques at another enrichment facility, as yet undetected by the United States.

I recently asked my Stanford colleague Sig Hecker, one of the scholars who visited the enrichment plant in 2010, to outline what to watch for in the North Korean weapons program in coming weeks to determine if the new leadership is planning any change in nuclear policy and/or operations. Sig served as director of the Los Alamos National Laboratory 1986-1997. He has been a frequent visitor to North Korea, one of the few Americans to get a first-hand look at the North Korean nuclear program.

His response:

I believe that there will be a period of quiet on the diplomatic front, both for mourning and to rethink strategy. Just before Kim Jong-il died, American and North Korean diplomats came close to an agreement of American food aid in return for some concessions on the nuclear program (some reports indicated that Pyongyang would stop enrichment - but I have yet to hear official confirmation from the UnitedStates - and we never may). What to look for is to see when North Korean diplomats are ready to re-engage with Americans in quiet bilateral talks, mostlikely in China.

On the technical front: I would expect "normal operations" at Yongbyon. That means they will continue with the experimental light water reactor construction- although little will be seen from overheads because it is winter time. Much of the interior components will be fabricated in shops. I also expect them to continue with operations of the centrifuge enrichment facility - either to make more low enriched uranium for reactor fuel or to get the facility to operate fully (which it may not have been when we visited). Both of these operations will continue regardless of which way Pyongyang eventually decides to go with the nuclear program. I don't see any reason why they would cut back on these operations now.

As for potential provocative actions - they could prepare for another nuclear test -- but that is highly unlikely, if for no other reason than it is winter. Their tests occurred in October 2006 and May 2009. Nevertheless, the third test tunnel appears to have been dug some time ago (South Korean news reports and overhead imagery) and one should watch closely for activity at the test site (particularly come spring). We should also look for potential missile tests - the new launch site on the west coast should be watched for another potential long-range missile launch. (They have had three attempts from the old launch site in the east: 1998 over Japan, 2006 a complete failure, and 2009 two out of three stagesworked.) They also have not flight-tested the Musudan road-mobile missile."

It would not surprise me if North Korea conducted another nuclear test in 2012. If Kim Jong-un is looking for a way to flex North Korean military power and remind his impoverished people that their nation matters to the rest of the world, detonating a nuclear weapon will do the trick.

Iran's nuclear program will also likely generate news and international anxiety this year. Iranian threats to attack US naval vessels in the Persian Gulf may seem self-defeating, but a military confrontation between Iran and the United States is not out of the question.

There is no greater danger to American and global security than the spread of nuclear weapons and the means to make them.

OVER the last three years, as I delved into the world of American nuclear weapons, I felt increasingly as though I had stepped into a time warp. Despite the nearly total rearrangement of the international security landscape since the demise of the Soviet Union in 1991, the rise of Islamic terrorism and the spread of nuclear materials and technology to volatile nations like Pakistan, North Korea and Iran, the Defense Department remains enthralled by cold war nuclear strategies and practices.

Barack Obama took office determined to change that. He has made progress on many fronts. Last week, he outlined a new, no-frills defense strategy, downsizing conventional forces. He now needs to double down on his commitment to refashion nuclear forces. He should trim the American nuclear arsenal by two-thirds to bring it down to a sensible size, order the Pentagon to scale back nuclear war-fighting plans so they are relevant to contemporary threats, remove most American intercontinental, land-based missiles from high alert and drop the quaint notion that a fleet of aging B-52 bombers can effectively deliver nuclear weapons to distant targets.

This agenda is not only desirable, it is doable without undercutting American security. It would save tens of billions of dollars a year, a relatively small amount by Pentagon standards, but every billion counts as Leon E. Panetta, the defense secretary, trims his budget. And the steps can safely be taken without requiring reciprocal moves by Russia that must be codified in a treaty.

For the last few months, the Obama administration has been conducting a classified review of the doctrines and operations that determine the shape and potential uses of America’s nuclear armaments. If the president pushes back against the defenders of the old order at the Pentagon and other redoubts of the nuclear priesthood, he can preserve American security while making the United States a more credible leader on one of today’s most critical issues — containing the spread of nuclear weapons. Like a chain smoker asking others to give up cigarettes, the United States, with its bloated arsenal, sounds hypocritical when it puts pressure on other nations to cut weapons and stop producing bomb-grade highly enriched uranium, the key ingredient of a crude nuclear weapon.

American actions alone won’t end the proliferation danger, but American leadership is essential to any hope of containing the threat.

Sam Nunn, the former chairman of the Senate Armed Services Committee, and anything but a dove over the years, rightly warns that the spread of weapons and the means to make them may soon reach a combustible stage where New York, Washington, Moscow, Tokyo or London is at risk of a nuclear terrorist attack.

Mr. Nunn and other keepers of America’s cold-war armory, George P. Shultz and Henry A. Kissinger, former Republican secretaries of state, and William J. Perry, a former Democratic defense secretary, have banded together in recent years to press, among other things, for cutting nuclear forces, de-alerting missiles and, ultimately, eliminating nuclear arms. Mr. Obama has embraced their aims and welcomed them to the Oval Office. Their high-powered, bipartisan alliance, if adroitly employed by the White House, ought to provide some political cover as Mr. Obama reshapes nuclear policy while running for a second term.

There is no national security rationale for maintaining an arsenal of some 5,000 warheads, with nearly 2,000 arms ready to use on short notice and the rest in reserve. We don’t need thousands of warheads, or even hundreds, to counter threats from countries like Iran or North Korea.

The only conceivable use of so many weapons would be a full-scale nuclear war with Russia, which has more warheads than the United States. But two decades after the collapse of the Soviet Union, even Vladimir V. Putin, with his authoritarian bent, is not about to put Russia on a collision course with the United States that leads to nuclear war. China, equally unlikely to escalate tensions to the nuclear brink, probably has fewer than 400 warheads and a policy to use them only in self-defense. Pakistan has roughly 100, North Korea fewer than 10 and Iran, so far, zero.

The United States could live quite securely with fewer than 1,500 warheads, half in reserve. Defenders of the nuclear faith claim we need 5,000 weapons as a hedge against warheads that may become defective over time. But an elaborate Energy Department program to maintain and refurbish warheads, the Stockpile Stewardship Program, has proved highly effective.

Another oft-cited reason for increasing our arsenal is that the Pentagon’s nuclear war-fighting plans still call for striking hundreds of targets in Russia and China, as well as dozens of sites in a number of other publicly unidentified nations — presumably Iran, North Korea and Syria — considered potentially hostile to the United States and eager to possess unconventional weapons.

Washington’s current nuclear war plans remain far too outsize to deal with any plausible attack on America. Mr. Obama could remove some nations from the hit list, starting with China, and tell his generals to limit the number of targets in the countries that remain.

The oversize American nuclear arsenal features an equally outdated reliance on long-distance bombers. The days when lumbering B-52 bombers could play a central role in delivering nuclear weapons — memorably spoofed in Stanley Kubrick’s “Dr. Strangelove” — ended decades ago. Mr. Obama should ground the bombers and depend on land- and sea-based missiles.

The high-alert status of America’s intercontinental ballistic missiles is another anachronism. There are few circumstances that might require the United States to quickly launch nuclear-tipped missiles, and missiles on high alert are an invitation to an accident, or impulsive action. In the first year of his presidency, Mr. Obama outlined an ambitious nuclear weapons agenda. Absent new action, Washington will remain frozen in a costly cold war posture.

Philip Taubman is a former New York Times bureau chief in Moscow and Washington and the author of “The Partnership: Five Cold Warriors and Their Quest to Ban the Bomb.”

When Asia’s leaders gather in Honolulu next week for the annual Asia Pacific Economic Cooperation summit, Americans will get a glimpse of the Obama administration’s hyperactive Asia agenda. While America has always been a Pacific nation, the Obama administration is now beginning to match the world’s most populous and economically dynamic region with America’s own brand of energy and leadership.

Before President Barack Obama alights on the tarmac in Honolulu, he will have prepared the way to lead anew in Asia. Among a number of significant “firsts” for our nation in the region are:

• President Obama in 2009 became the first U.S. president ever to attend a meeting with all 10 leaders of the nations that comprise the Association of South East Asian Nations.
• The United States in 2010 became the first non-ASEAN country to establish a dedicated Mission to ASEAN in Jakarta.
• Hillary Clinton was the first secretary of state in a generation to make Asia the destination of her first foreign trip.
• Secretary Clinton also launched the “Lower Mekong Initiative,” a first-of-its-kind agreement between Cambodia, Laos, Thailand, Vietnam, and the United States to enhance cooperation in the areas of water and forest management, education, and health.

Now, President Obama will arrive in Honolulu to, among other things, attempt to get APEC nations to agree to lower tariffs on renewable energy products. He will also continue to negotiate the so-called Trans-Pacific Partnership, an Obama administration initiative with eight Asian nations, with the objective of shaping a broad-based regional trade pact that would include Australia, Brunei, Chile, Malaysia, New Zealand, Peru, Singapore, and Vietnam. Look for announcements of Japanese participation and a framework for the TPP agreement to be announced alongside the APEC summit.

After the APEC summit, President Obama will travel to Bali and attend the East Asia Summit, a fairly new 18-nation security forum—becoming the first U.S. president to attend this annual meeting.

All this activity is especially dramatic following eight years of low-key engagement where Asians griped about missed meetings and America’s strategic attention was focused almost exclusively in the Middle East. But most importantly, there is a well-thought out strategy for re-engagement—a strategy based on renewing long-time allies, engaging seriously newly emerging powers with an eye on preserving stability in the Pacific, while building stronger economic ties to boost American trade, job creation, and long-term economic prosperity at home.

Our stalwart ally Japan was rocked by this year’s devastating earthquake and tsunami, and America is assisting in its recovery. Our alliance remains strong, and Japan continues to be an increasingly active U.S. partner in global affairs.

Relations with South Korea are better than they have ever been. The U.S. Congress just passed a historic free trade agreement, opening the South Korean market for a wealth of American goods. Twice in two years the Obama administration (over Chinese objections) deployed the USS George Washington to the Yellow Sea and the Sea of Japan to conduct exercises with South Korea in response to North Korean aggression. Last month, President Obama welcomed President Lee Myung-bak for a state visit, the first in 10 years by a South Korean president.

President Obama will visit Australia next week to announce a deepened military cooperation pact—building once again on a long-standing alliance. This follows on Secretary of State Clinton’s signing last year of the Wellington Declaration, a roadmap for deepening and expanding the bilateral relationship between the United States and New Zealand.

The Obama administration also is engaging more closely with emerging powers.

The administration in 2010 launched the U.S.-India Strategic Dialogue, which has broadened and deepened relations with New Delhi to include issues from cybersecurity and terrorism to negotiations over a bilateral investment treaty and energy cooperation. Obama also launched the U.S.-Indonesia Comprehensive Partnership, including a series of agreements that will help defense and trade relations. The administration is also working carefully behind the scenes with Myanmar’s new leadership to urge liberalization there.

All of this brings us to China. The flurry of Asian activity makes sense in its own right to further U.S. economic, cultural, and strategic interests, but it is also a component of U.S. policy toward China. The Obama administration’s China policy involves increasing America’s ability to compete with China, working with China where fruitful, and pushing back when China’s actions cross the line. While the U.S.-China relationship is never easy, the administration has avoided major crises and managed to sell Taiwan the largest arm sales packages in any two-year period over the past 30 years without a major breach of relations with Beijing.

Indeed, where cooperation is possible, it is underway. A joint clean energy research center with China is now open, more U.S. Food and Drug Administration officials are based in China to monitor the safety of food and drugs coming to the U.S. market. What’s more, the Obama administration has had some significant success working with Beijing on the nuclear activities of North Korea and Iran, though it has followed a one step forward, two steps back pattern.

The U.S. needs to be engaged in Asia to ensure that China’s rise contributes to stability and prosperity in the region. In 2010, for example, when China made a series of aggressive moves related to the South China Sea, Secretary of State Clinton joined with her counterparts from Southeast Asia, including countries close to China such as Vietnam in what has been called a “showdown,” to make clear their desire for a peaceful, multilateral approach to the conflicting territorial claims there. China backed off its more forward actions and most strident rhetoric.

Similarly, the United States is creating incentives for China to conform to international law and standards. That’s why the Obama administration is negotiating the Trans-Pacific Partnership—a trade pact with high standards to join. The idea is build consensus in the region about a coherent set of regulations that might push China in a helpful direction. TPP rules, for example, are likely to prohibit state-owned enterprises from getting government subsidies not available to privately owned companies, an issue on which Washington has been pushing Beijing hard, with only slow progress to show for it.

These sorts of initiatives are not part of a strategy of “containment” of China, which is not possible or desirable. No Asian country would ever sign up to an anti-China alliance—each, in fact, wants to strengthen its relationship with Beijing. But at the same time, they want America to stick close by. Even if containment were possible, America benefits more from a strong, prosperous China than a weak and resentful one.

Can America afford all this Asian engagement? We have to and we will. The coming years will demand strategic choices. The next time you hear someone complaining about U.S. troops leaving Iraq, remind them that the United States is now investing more wisely and more constructively in the most important region of the world.

Nina Hachigian is a Senior Fellow at the Center for American Progress.

This paper, written for a September 2011 seminar hosted by the Geneva Center for Security Policy,  analyzes developments since the Nuclear Non-Proliferation Treaty (NPT) Action Plan was adopted by concensus at the 2010 NPT Review conference. The seminar included participants from the Permanent Missions to the Conference on Disarmament, academia, and non-governmental organizations. 

An excerpt from the text, pg. 1:

"The first thing to keep in mind is that the previous Review Conference, in 2005, was a major failure. It was not the first review conference not to end up with a final document. The 1980, 1990 had failed to produce a final document agreed upon by consensus and even the historically successful 1995 review and extension conference ended up with a document which replaced the word consensus with the recognition that “a majority exists”. However, the 2005 Review Conference was widely perceived as “the biggest failure in the history of this Treaty.” Since then, the two North Korean nuclear tests in 2006 and 2009, the concerns about the Iranian nuclear program, the Syrian site of Al Kibar as well as the suspicions over the Burmese nuclear activities have fueled and renewed fears about further spread of nuclear weapons and, even, a possible collapse of the non-proliferation regime. It is true that Iran and Syria related issues have rarely been discussed during the 2010 Review Conference. However, the memory of a historical failure combined with several proliferation concerns and a de facto new nuclear weapon state – North Korea –, which status under the NPT is still open for discussion, has led to consider that “failure was never an option”, as one representative stated at the closing of the conference."

Russia watchers in the West cannot be surprised that Vladimir Putin is on his way back to the Russian presidency. Dmitri Medvedev was always his protégé, and there was no doubt that major decisions could not be made without his approval. This includes signing the New START arms control treaty, cooperating with NATO in Afghanistan and supporting U.N. sanctions on Iran — all of which should provide reassurance that Putin’s return won’t undo the most important accomplishments of the U.S.-Russia “reset.”

Yet the relationship with the West will inevitably change. For one thing, Putin can have nothing like the rapport his protégé developed with President Obama, which was built upon the two leaders’ shared backgrounds as lawyers, their easy adoption of new technologies, and their fundamentally modern worldviews.

The Bilateral Presidential Commission which Obama and Medvedev created and charged with advancing U.S.-Russia cooperation on everything from counterterrorism to health care may suffer. The relationship as a whole is not adequately institutionalized, and depends on the personal attention of Russian officials who will likely avoid taking action without clear direction from Putin, or who may be removed altogether during the transition.

Putin’s return to the presidency will also provide fodder for Western critics bent on portraying Obama and the reset as a failure, or dismissing Putin’s Russia as merely a retread of the Soviet Union.

These critics are wrong — today’s Russia bears little resemblance to what Ronald Reagan dubbed an “evil empire” — but Putin has been far more tolerant of Soviet nostalgia than his junior partner, and his next term will surely bring a new litany of quotations about Soviet accomplishments and Russia’s glorious destiny that will turn stomachs in the West.

Although he has spent his entire career within the apparatus of state power, including two decades in the state security services, Putin is at heart a C.E.O., with a businessman’s appreciation for the bottom line. Western companies already doing business in Russia can expect continuity in their dealings with the state, and it will remain in Russia’s interest to open doors to new business with Europe and the United States. The next key milestone for expanding commercial ties will be Russia’s planned accession to the World Trade Organization, which could come as soon as December.

At home, Putin faces a looming budget crisis. As the population ages and oil and gas output plateaus the government will be unable to continue paying pensions, meeting the growing demand for medical care, or investing in dilapidated infrastructure throughout the country’s increasingly depopulated regions.

This means that while Putin will seek to preserve Russia’s current economic model, which is based on resource extraction and export, he will be forced to assimilate many of his protégé’s ideas for modernizing Russia’s research and manufacturing sectors. Medvedev’s signature initiative, the Skolkovo “city of innovation,” will likely receive continuing support from the Kremlin, although it will have little long-term impact without a thorough nationwide crackdown on corruption and red tape.

Putin’s restored power will be strongly felt in Russia’s immediate neighborhood, which he has called Moscow’s “sphere of privileged interests.” Even though Kiev has renewed Russia’s lease on the Black Sea Fleet’s Sevastopol base through 2042 and reversed nearly all of the previous government’s anti-Russian language and culture policies, Ukraine is unlikely to win a reprieve from high Russian gas prices. Putin will also continue to press Ukraine to join the Russia-dominated customs union in which Kazakhstan and Belarus already participate. He may also take advantage of Belarus’s deepening economic isolation and unrest to oust President Aleksandr Lukashenko in favor of a more reliable Kremlin ally.

Putin and Medvedev have been equally uncompromising toward Georgia. Both are openly contemptuous of Georgian President Mikheil Saakashvili, and it is unlikely that any progress on relations can occur until Georgia’s presidential transition in 2013.

Putin has good reason to continue backing NATO operations in Afghanistan to help stem the flow of drugs, weapons and Islamism into Tajikistan, Uzbekistan and Russia itself. Moreover, as China extends its economic hegemony into Central Asia, he may find America to be a welcome ally.

Putin appreciates the advantages of pragmatic partnerships and will seek to preserve the influence of traditional groupings like the U.N. Security Council and the G-8 while at the same time promoting alternatives like the Shanghai Cooperation Organization and the Brics.

The succession from Putin to Medvedev and back again was decided behind closed doors, and the formal transition of power is likely to take place with similar discipline. This should offer the West and the wider world some reassurance. Putin’s return to the presidency is far from the democratic ideal, but it is not the end of “reset.” Many ordinary Russians support him because he represents stability and continuity of the status quo and, for now, that is mostly good for Russia’s relations with the West.