In an ideal world, Russia would have adopted democratic, free-market principles wholesale, becoming a paragon of economic and political transition. There are many Russians who say this path was not an option in the wake of 1990s reform — a process they believe resulted in more “shock” than “therapy.” True or not, the international commentariat is so consumed by Russia’s backsliding on the democratic front and the government’s increased interference in natural resources that it is missing the real story.

A very large part of Russian society is aspiring to reach European standards of living. The Kremlin’s antics have done little to derail the journey. Moscow increasingly looks like any European city (albeit with a nouveau riche touch). The latest models from the various luxury carmakers jam the city’s narrow arteries. Many of the world’s leading fashion brands have outlets in Moscow. For pop singers on the global concert circuit, a performance in Moscow is a must. The nightlife of the city is the talk of the international partying crowd. This is hardly the stuff of a place yearning for its communist past.

Neither is it a Mumbai or São Paulo, where political demonstrations will be tolerated. But while there are constraints on political freedom, there are no such curbs in the social and religious spheres. Similarly, businesses are free to compete in sectors related to domestic demand, while companies in oil or other natural resources have to worry about keeping off the government’s “strategic radar.” There are two different systems in place, and, not surprisingly, Russia is emerging as a tale of two different countries.

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