The Russian government orders the country's borders closed to all foreign military forces, and leaves its bases that it had maintained in the former republics of the soviet union.
In June of 2004, multiple factory complexes come online, coinciding with the completion of brand new bases for the Russian Air Force.
Russia can now fund a final fifth tech team, just another sign of Russia's growing economic and military power.
At a meeting of the Shanghai Cooperation Organization, the Chinese delegation makes an offer to transform the organization from one of economic cooperation into a full fledged military alliance, similar to NATO or the old Warsaw Pact of the USSR. However, entering this alliance would place Russia's foreign policy at the whim of Beijing, something that will not be tolerated by Russia's government. Russia is a great power, and will not be turned into Beijing's puppet.
The fairly large and relatively powerful Russian Air force rebases nearly all of its aircraft to brand new airfields at Volgograd and Voronezh, in preparation for possible military campaigns in Georgia or the Ukraine. In modern war, air power is critical to gaining victory. Without it, even an enemy with a small army can stop a force much larger than itself.
The first of hopefully many military buildups begins. The Russian government gives funding for the training of a new coastal defense force, composed of members of the regular army and the part time army reserves, who will guard Russian naval bases and coastlines from any enemy amphibious attacks.
The government shifts to an even more interventionist stance, with some members of the cabinet and the state Duma actively calling for Russian military and territorial expansion. Rumors begin to circulate that these calls are not falling on deaf ears....
In Iraq, the insurgency shows its true power. In what can only be described as an Iraqi tet offensive, insurgents take to the streets all over the country, facing US troops head on in all of Iraq's major cities. The insurgents actually manage to take control of most of northern Iraq, before being put down by US occupation troops.
Despite getting his country involved in a military quagmire, the President of the United States, George W Bush, is still able to win re-election in November of 2004, with his rival, Senator Join Kerry, being unable to both create the image of a strong leader, and gain the support of independents, hurting him badly in the polls.
George W Bush's victory speech in Washington DC.