Flags, Fireworks and Designer Uniforms

"The majority of the Russian population perceives NATO as a threat, perceives NATO expansion to Ukraine and Georgia as a major security problem. American policy of unilateral, arbitrary use of force abroad and dismantling of arms control and disarmament systems and regimes is perceived here as a threat, a much great threat than potential nuclear proliferation of weapons and technology, much greater than nuclear program of Iran or North Korea."

Related

WATCH: Stiff Handshake Between Putin and Bush

WATCH: Bush Vs. Putin

Bush Bucks Russia, Backs Ukraine in NATO

For many Russians, the parade was less about international politics than it was about paying homage to the bravery and suffering of Russia's World War II veterans. About 20 million Soviet citizens were killed during the war, nearly half the total number of casualties.

Sveta, a cleaning lady from Moscow, told me, "I found the parade incredibly emotional. Of course it is beautiful and great, but mostly I just look at the old veterans and the grandmothers and I feel like crying."

Vyacheslav Sedov, the press secretary for the Ministry of Defense, agrees that the parade is not political. "I remember as a boy being so excited to turn on the television on May 9. … We just want to pay tribute to our Russian heroes."

Earlier this week Putin handed over power to the new president, Dmitry Medvedev.

In a televised address, Medvedev denied that today's display of military might was "saber-rattling," calling it instead "a demonstration of our growing defense capabilities."

It is unclear what Medvedev's policies will be and how they will affect Russia's relationship with the West. But as Arbatov points out: "I think there is no reason for the West to panic about that. Russia is not a military state. Russia is not fighting a war anywhere. … Russia's defense budget is $45 billion… It's still 10 times smaller than America's."