British PR consultants talk Russia into battling “anti-Russian propaganda” in the UK – and paying them for it

The scandal caused a decline in American soft power. After the presidency of George W. Bush, Barack Obama incarnated the promise of a new, value-oriented America, a promise for which he received – rather prematurely – the Nobel Peace Prize. Five years later, the PRISM affair has dealt a heavy blow to Obama's – and America's – reputation, which was already dented by the unresolved question of the Guantanamo detainees and Obama's secret drone war.

As such, Russia finds itself between a rock and a hard place: it wants to enhance its soft power and public diplomacy while loudly resisting and countering similar attempts by others, namely the United States. For a great illustration of this dilemma, see the recent expulsion of USAID from Russia for its alleged promotion of regime change, as well as the passage of the “foreign agent law” that requires foreign-funded NGOs in Russia to register as foreign agents; all this while the Russian government hikes up its own soft power and its self-described “humanitarian budget.”

The Russian Culture Ministry on Monday filed a lawsuit against the US Library of Congress over seven books belonging to the so-called Schneerson Library, a group of Jewish texts that are the subject of a long-running ownership battle between Russia and the United States.

"Moscow is open for business," declares Andrei Sharonov, Moscow’s deputy mayor for economic policy, "but we still have challenges to overcome in increasing the city’s attraction to both domestic and international investors." This realistic assessment of Moscow’s current position is typical of the man who was appointed by the city’s mayor, Sergey Sobyanin, in late 2010 to make Moscow a global business–friendly center capable of attracting investment.

For the moment, Moscow appears to be holding firm against Washington’s demands. Within the United States, that’s prompted some alarm over not just Russia’s refusal – which is not shocking – but America’s apparent inability to force its will on the issue. From Washington’s point of view, Snowden is an American fugitive wanted on serious charges, hanging out at the Moscow airport, and we can’t even compel his release. Whatever happened to American power abroad?

On June 19, U.S. Ambassador Michael McFaul welcomed new Russian exchange students and alumni of U.S. State Department programs to his Moscow residence, Spaso House.

Russia will increase spending on foreign cultural and educational projects as part of the Kremlin-backed 'Soft Power' concept aimed at improving the country's image abroad, a news report said Wednesday.