VLADIMIR PUTIN, MANY SAW THAT MOVE AS A MAJOR REBUKE.

WELL UP TO NOW, THE U.S. AND RUSSIA HAVE COOPERATED ON A RANGE OF ISSUES, BUT THERE HAD BEEN SOME

DISAGREEMENTS ON ISSUES INCLUDING THAT OF SYRIA.

FROM THE START OF HIS PRESIDENCY, WE ALL REMEMBER, PRESIDENT OBAMA MADE RESETTING RELATIONS WITH

RUSSIA HIGH PRIORITY. BUT AS VOA'S CORRESPONDENT IN MOSCOW JIM BROOKE TELLS ME, THE DISPUTE

OVER EDWARD SNOWDEN IS JUST ONE SIGN THAT HAS CHANGED.

PRESIDENT OBAMA'S DECISION TO CANCEL THIS PLANNED MEETING WITH PUTIN... WHAT DOES THAT

DO FOR THIS U.S. - RUSSIA RESET THAT HAS BEEN IN WORKS NOW FOR FEW YEARS?

WELL, THE RESET IS BASICALLY OVER. I THINK WE ARE ENTERING A PHASE OF U.S. - RUSSIA RELATIONS

WHERE THE U.S. - THE OBAMA ADMINISTRATION - IS GOING TO DOWNGRADE THE RUSSIAN RELATIONSHIP

TO SECOND TIER OFFICIALS. IT WILL BE PURELY TRANSACTIONAL. THERE IS A FEELING THERE'S

NO SUCH THING AS GOOD WILL WITH THE KREMLIN. IF YOU WANT A DEAL YOU SIT DOWN, YOU NEGOTIATE

THE PRICE, YOU RENEGOTIATE THE PRICE AND YOU FINALLY COME TO THE PRICE. DON'T LOOK FOR

GOOD WILL FROM EITHER SIDE AND DON'T EXPECT THE PRESIDENT OF THE UNITED STATES TO BE INVOLVED

BECAUSE HE HAS 10 THOUSAND DAYS LEFT IN THE OFFICE, HE'S THINKING OF THIS LEGACY AND HE

DOESN'T WANT TO WASTE TIME, HE DOESN'T WANT MEETINGS FOR MEETINGS. AND I THINK THAT'S

WHY THE MEETING WAS CANCELLED YESTERDAY. THERE REALLY WAS NOTHING SUBSTANTIVE IT WAS COME

OUT OF IT.

JIM, HOW BADLY HAS THIS DISPUTE OVER EDWARD SNOWDEN DAMAGED THE U.S. - RUSSIA RELATIONSHIP?

ALEX, REALLY IT IS A STRAW THAT HAS BROKEN A CAMEL'S BACK I THINK. THERE ARE A LONG SUCCESSION

OF DISAGREEMENTS BETWEEN THE PUTIN GOVERNMENT AND THE WHITE HOUSE AND THIS IS A FINAL STRAW

I THINK. YOU HAVE TO GO BACK TO PUTIN'S BANNING AMERICAN PARENTS FROM ADOPTING RUSSIAN CHILDREN

BACK IN JANUARY. SINCE THEN, THERE HAVE BEEN A SERIES OF BAD INCIDENTS.

WHAT ARE SOME OF OTHER TENSIONS THAT WE'VE BEEN SEEING?

WELL, IN THE LAST FALL PUTIN KICKED OUT USAID, JUST UNILATERALLY ENDED THE AID PROGRAM WHICH

WAS WORKING QUITE WELL IN RUSSIA FOR 20 YEARS. THEY DECIDED TO PULL OUT OF THE NUNN-LUGAR

NUCLEAR THREAT REDUCTION PROGRAM. THEY BASICALLY MADE CLEAR THAT TWO AMERICA DEMOCRACY GROUPS

SHOULD LEAVE - NDI, NATIONAL DEMOCRACY INSTITUTE, AND THE INTERNATIONAL REPUBLICAN INSTITUTE.

AND THAN THERE WAS VERY SERIOUS CRACK DOWN ON HUMAN RIGHTS GROUPS, ANTI-CORRUPTION GROUPS

INSIDE RUSSIA COUPLED WITH PUTTING THE MOST IMPORTANT OPPOSITION PEOPLE ON TRAIL. SOME

PEOPLE WERE GOING TO THE EXILE. THIS REAL CHANGE IN RUSSIA SINCE VLADIMIR PUTIN CAME

BACK TO THE KREMLIN IN MAY OF LAST YEAR, A GREAT CHANGE FOR THE NEGATIVE.

AND HOW DO YOU THINK RUSSIANS, JUST SORT OF THE GENERAL POPULATION, HOW THEY'VE BEEN RECEIVING

THIS SHIFT? ARE THEY ALIGNING WITH PUTIN ON THIS ANTI U.S. FRONT?

YES, ALEX, PUTIN IS REALLY DOING THIS TO BUILD UP DOMESTIC SUPPORT, TO CONSOLIDATE HIS DOMESTIC

BASE AND THIS BASE IN THIS CASE WOULD BE RURAL, SMALL TOWN BASE, DEPENDENT ON THE STATE TELEVISION,

NOT HAVING ACCESS TO THE INTERNET. NOW ABOUT A HALF THE COUNTRY HAS ACCESS TO INTERNET

AND THEY ARE MUCH MORE PLUGGED INTO MAINSTREAM THINKING AND THEY ARE NOT REALLY GOING ON

BOARD WITH THIS. YOU LOOK AT APPROVAL RATINGS OF THE U. S. THEY REALLY HAVEN'T GONE DOWN

MUCH, MAYBE 55 PERCENT OR SOMETHING, BUT PUTIN IS DOING THIS TO CREATE A FOREIGN ENEMY AND

TO TRY TO RALLY HIS DOMESTIC SUPPORT AROUND HIM. AND A LOT OF RUSSIANS THAT I SPEAK TO

ARE EMBARRASSED OR JUST TUNE HIM OUT.

WHAT WOULD IT TAKE TO REPAIR THE RELATIONSHIP?

IF SOMETHING HORRIBLE HAPPENED IN THE EASTERN PART OF RUSSIA WITH THEIR CHINESE FRIENDS,

ALL OF A SUDDEN THE KREMLIN WOULD REDISCOVER THEIR UTILITY OF GETTING ALONG WITH EUROPE

AND THE UNITED STATES. BUT THEY FEEL THEIR BACKS ARE PRETTY WELL COVERED OF THE CHINESE,

THEY DON'T HAVE TO WORRY ABOUT THAT. I THINK AT SOME POINT MR.

PUTIN WILL LEAVE OFFICE, BUT THAT COULD NOT BE FOR 10 YEARS, SO LET'S NOT HOLD OUR BREATHS

ON THAT. IN THE WHITE HOUSE - DEMOCRAT, REPUBLICAN, I DON'T THINK IT REALLY MATTERS - PUTIN IS

A MAN WHO IS TRAUMATIZED BY THE COLLAPSES OF THE SOVIET UNION AND TOOK IT VERY MUCH

TO HEART AND DOES SINCERELY BELIEVE THAT THE WEST IS OUT TO ALL IS CHECK AND TO DIMINISH

RUSSIA. AND HE ALSO KEEPS A GRUDGE. IF YOU GO BACK TO YEAR 2000, LOOK AT THE PICTURE

OF G-8, HE'S THE LAST MAN STANDING. HE'S THE ONLY LEADER IN G-8 WHO IS STILL THE LEADER

SO HE WILL LECTURE PRESIDENT OBAMA ABOUT PRESIDENT BUSH. AND PRESIDENT OBAMA CAN SAY 'HEY THAT'S

WHY WHO IS ELECTED. I DON'T LIKE BUSH EITHER BUT WHY ARE WE WASTING OUR TIME WITH THIS

CONVERSATION?'

AND OUR THANKS AGAIN TO VOA'S CORRESPONDENT IN MOSCOW JIM BROOKE.