The Islamist insurgency in Russia’s Northern Caucasus threatens to turn the region into a haven for international terrorism and to destabilize the entire region, which is a critical hub of oil and gas pipelines located at Europe’s doorstep. Neither Russia’s excessive use of military force nor its massive economic aid to the region appear to have helped. The United States and its friends and allies should keep a close watch on the region. In the meantime, the United States should work with neighboring countries to improve their border security. The United States should also encourage and work with Middle Eastern countries to stop the flow of cash to the Islamist terrorist organizations.