ABSTRACT
In August 1998 Russia became a victim of the global economic crisis as its economy underwent a virtual meltdown. Apart from NATO and Yugoslavia, the principal issues for Russian foreign policy were relations with non-Western regimes, above all, Iran and Iraq. A Russian journalist trenchantly characterized Yeltsin's foreign policies in early 1998 as having served "American interests" on "such controversial issues" as NATO expansion, Iraq and the sale of nuclear technology to Iran. In mid-June 1998 Defense Minister Sergeev took NATO to task for notifying him of the start of military exercises held in the former USSR only after they had begun. US Secretary of State Albright expressed the hope that the "close relationship" between Russia and Yugoslavia would produce an agreement at the upcoming Moscow meeting where Russia, it was clear, would play the role of NATO's intermediary with Milosevic.
