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Rethinking Russia’s Return to Global Big Policy

Mher D. Sahakyan

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In the first decade of 21st century Russia managed to get out of the economic crisis, restore its military strength, and take course to become a sovereign political pole. To understand the entire scope of Russia’s reaction to difficult foreign challenges and to analyze its probable steps, it is important to investigate its foreign policy strategy.

On November 30, 2016, the Kremlin adopted the “Foreign Policy Concept of the Russian Federation” (Concept), which was signed by President Vladimir Putin. In the future, Russian diplomacy will continue its operations with this document as one of its main legal pillars.

This Concept argues that Russian foreign policy aims to ensure security, independence and territorial integrity of the state. It must contribute to the development of the democratic and juridical institutions of the country, and also be used for the further growth of the Russian economy.

It is worth mentioning that due to the Concept, one of the main aims of Russian foreign policy is making Russia one of the most influential centers in the modern world.

This clause of the Concept describes that in the future, Russia will be more actively involved in international politics. It will try to create new spheres of influence and find new allies and supporters, with whom it will be able to defend its national interests and reap benefits from different international developments.

It is worth mentioning that Russia has powerful levers to implement the aforementioned aims; the following circumstances can be mentioned:

1.Russia is a permanent member of the United Nations Security Council (UNSC). This factor provides Moscow with an opportunity to make its voice heard on the main platform for creation of international law. Permanent membership gives Russia veto power, whichmeans that the other parties of the UNSC cannot adopt any resolution without Russia’s agreement.  Thus, Russia remains in the group of main players in world affairs. It is the main reason why, in the new Foreign Policy Concept of Russia, it is mentioned that Russia will make efforts to strengthen the role of the UN.

2.Even after the collapse of the Union of Soviet Socialist Republics (USSR or Soviet Union) Russia still possesses the second most powerful military arsenal in the world, strengthened by modernized nuclear weapons. Only Washington surpasses Moscow with its military capabilities.

To strengthen and modernize its military capabilities, Russia plans to invest $700 billion before 2020.

3.Russia possesses tremendous sources of energy and other natural resources, which provide Russia with an opportunity for further development. Even during recent years, when prices on energy resources have drastically decreased, this factor has still played a significant role in Russia’s foreign policy, as Russia gets some economic and political influence in the countries, it supplies with its energy resources.

4.Russia’s geographic location also has its impact, as it provides great opportunities to the Russian navy and air force to maneuver from East to West. This geographic advantage also gives Russia wide economic prospects, as it is a unique bridge connecting Europe to Asia.

This paper aims to analyze and answer the following questions: in which directions will the “Russian bear” move? Which tools and sources will be used by Moscow for implementation of its foreign policy? Which kinds of developments will take place in the era of Russia’s return to big policy?

From Commonwealth of Independent States (CIS) to Eurasian Economic Union (EAEU)

In the section on regional priorities of the Foreign Policy Concept of the Russian Federation, it is written that Russia’s main aim is to develop bilateral and multilateral relations with the CIS member-states and foster implementation of integration projects in this organization with Russia’s involvement.

In the 51st clause of the Concept, it is written that in the framework of the Eurasian Economic Union, it is very important to develop relations and implement joint projects with Armenia, Belarus, Kazakhstan and Kyrgyzstan.

The main purpose of this ambitious plan is to unite in one political and economic union the former republics of the USSR which are not integrated in other economic or political unions. Firstly, it regards republics, which, unfortunately, after the collapse of the USSR, could not adapt to challenging modern world developments. These states could not find an economic and political role that could make them interesting for the world’s other main players, and as a result their economies have been destabilized and contracted greatly.  These states are in deep political and economic crises, and they have also security problems, as they are not able to secure their countries without the help of third parties. In this regard, Vladimir Putin mentioned, that the disappearance of the USSR was a “major geopolitical disaster.”Indeed, it was a disaster for the most of the USSR’s former member states and for its main allies. One-day citizens of the USSR slept in the one of the most powerful countries in the world, and the next day they woke up in a field state with a difficult political and socio-economic situation. In some former republics of the USSR, interethnic clashes started. It seems that Post Soviet states would be also very interested in integration with the EAEU, but the situation is much more complicated, because of the many conflicts acquired as a result of the USSR’s collapse. These unresolved issues create problems for integration processes in the Post-Soviet space.

The second main obstacle to integration developments in this space is the position of the West, which tries not to allow possible “reconciliation” of the USSR. However, it is evident that this is not possible even theoretically.

The Ukrainian revolution, which was fully supported by the West, can be considered the main argument for this second hypothesis. As a result of this political turmoil in Ukraine, Kiev broke its ties with Moscow, and did not join the EAEU, which is led by Moscow. Additionally, the clashes between Ukrainian military forces and the Russian population in East Ukraine are creating barriers between the two Slavonic nations, which are connected to each other by various historical and cultural ties.

In addition, the economic situation in Russia was heavily damaged by Western sanctions and the decreasing price of energy resources. Regardless, even in this challenging situation, Russia could have some success in Syria, where Bashar al-Assad was able to get out of a troublesome situation and start his counterattack with the help of Russian air forces.  In East Ukraine, Pro-Russian forces also keep a huge territory under their control.

The Russian Bear Tries to Save its Burned Middle Eastern Hives

From a Russian perspective, resolution of the Syrian conflict is possible via the restoration of the territorial integrity of the Syrian Arab Republic.

By the way, Russians can agree with Turkey and Iran on ridding Aleppo of terrorists and the so-called Syrian moderate opposition, and afterwards on the return of this strategically important city to Assad’s regime. It is worth mentioning that this unique triangle (Russia-Iran-Turkey), composed of such different states, could come to a conclusion without making an agreement with the US on this issue.

In the Foreign Policy Concept of the Russian Federation, it is mentioned that International society must jointly struggle against terrorists and prevent creation of dangerous organizations such as ISIS. Additionally, the Russians offer to create a coalition which will battle against terrorism and operate based on an agreed-upon legal framework.

Russia’s tough position on the Syrian crisis and its main aim to finally destroy radical Islamists, who are spreading their ideology worldwide, formed partly because Russia has millions of Muslim citizens, and by struggling against Islamic fundamentalism in Syria, Russia is trying to stop the proliferation of this “dangerous disease”, which is called “the Ideology of ISIS”, on its own territory.

As one of the Permanent Members of the United Nations Security Council (UNSC), Russia plays a significant role in resolution of the Iranian nuclear issue. On the Iranian diplomatic “front”, international society could achieve some success thanks to the constructive role played by Russia and other partners. It is worth mentioning that Russia always disagreed with the US on regime change in Iran under the shadow of the struggle against nuclear proliferation. Russia was against solving this problem by military means and also against unilateral sanctions imposed by the West and its partners to bring Tehran to its knees, as those sanctions were not approved by the UNSC. Playing a constructive role, Russia offered to solve the Iranian nuclear issue using a step-by-step method, which later formed the basis for success in multilateral negotiations with Iran.

Modern Russo-Turkish relations can be described as series of ups and downs, but it is a fact that both sides place importance on bilateral economic and political relations. The main argument of the aforementioned hypothesis is that the crisis of the Russo-Turkish relations was very short. This crisis started when Turkish forces shot down a Russian military jet along the Syrian border. Nevertheless, there is now a new political situation in the Middle East. As the US is trying to leave or showing that it would like to leave this region, it is possible that a new Russo-Turkish confrontation will emerge to divide spheres of influence, and of course, Iran will also participate in this struggle to protect its own national interests.

The Russian Far Eastern Vision, or the Russian Bear Looks towards Beijing

In the Foreign Policy Concept of the Russian Federation, it is mentioned that the world’s potential is clearly being concentrated in the Asia-Pacific region, and consequently the West is gradually losing its historical role as political and economic leader of the world.

In this context, the emerging Far Eastern superpower China is worthy of note, because through its “Silk Road Economic Belt” and “21st-century Maritime Silk Road” programs (The Belt and Road), it is trying to enlarge its influence. It is interesting that Russian President Putin does not see the new Chinese initiative as a threat; on the contrary, he believes that the EAEU and the Belt and Road must be combined.

It is obvious that in these circumstances, as a result of aggravated relations between Russia and the West, Moscow will deepen its relations with Beijing. It is also mentioned, in the 84th clause of the Concept, that Russia will increase its political and economic cooperation with China.But it is important to mention that China is unable to close the gap in the Russian economy, which emerged after the worsening of Russo-US and Russo-EU relations, alone.

Unlike economic relations, which are growing slowly, Russia and China have succeeded in forming close political cooperation. As a result of close political cooperation, Russia and China try to act as partners during negotiations on resolution of the Iranian and DPRK nuclear issues, as well as the problem of the South China Sea and Syrian crisis. In this regard, it is also worth mentioning the tough Sino-Russian position against the decision of the US and South Korea to place THAAD systems (Terminal High Altitude Area Defense) next to the border with North Korea, making them capable of destroying missiles fired from Russian and Chinese territories as well as North Korean.

Russia is against the proliferation of nuclear weapons on the Korean peninsula. As in the case of Iranian nuclear issue, Russia does not wish to see new turbulence in the Korean peninsula due to the DPRK nuclear issue, and favors a peaceful solution to this issue through political and diplomatic efforts and negotiations.  From my point of view, Moscow has agreed to follow China’s lead on the DPRK nuclear issue in the UNSC, in exchange for China following Russia’s lead on the Iranian nuclear issue.

It is worth mentioning that Iranians attempted to derive benefits from Sino-Russian cooperation in the UNSC. In this regard, Hassan Rouhani said, “We knew that if we could turn Russia to our side, China would also stand next to us.”

Closing, but Still Unclosed Doors to the West

Although it is mentioned in the Concept that Russia will continue implementation of the reduction and limitation of its strategic offensive arms, which it is undertaking due to Russo-American agreements,it must be mentioned, that the current escalation of tensions in Russia-US relations may complicate the possible conclusion of new arms-reduction agreements. Moreover, in this situation, there is the risk that both sides may abandon the agreements reached previously and start a new arms race, like that which existed during the Cold War. The Concept also condemns NATO and EU policies in the Euro-Atlantic region. In this document, Russia deems the policies being implemented by these two Western organizations expansionism.

It is mentioned that the idea to create a “European Common Security Framework” has remained on paper, and the main reason behind the escalation of tensions in relations between Russia and the West is the joint strategy of the US and its Western partners to contain and isolate Russia.

After the collapse of the USSR, when the former members of the Warsaw Pact started to join NATO, Russia tried to understand on which levels these processes helped or contradicted the national interests of Russia. It is worth mentioning that from 1988 to 1999, Russia reduced its army’s personnel from 5 mln. to 1 mln. people.

As Russian researcher Aleksandr Barsenkov mentioned, in the early 90s, Russian President Boris Yeltsin announced that Russia was ready to begin integration into NATO—one of Russia’s long-term goals in its foreign policy. After several years Yeltsin added that Russia is against NATO enlargement without Russia.

Furthermore, when Yevgeni Primakov was appointed as Russia’s Minister of Foreign Affairs, he announced that Moscow was against NATO’s enlargement, because to Russians it was a threat; due to NATO enlargement, soon Russia would be left alone, surrounded by NATO members.

As Yevgeny Primakov mentioned in his book about negotiations on the enlargement of NATO, “on July 30, 1996, during my meeting with Malcolm Rifkind, the Secretary of State for Foreign and Commonwealth Affairs of the UK, I mentioned that there are two red lines regarding NATO’s enlargement which Russians will not allow to be crossed. The vertical red line means that Russia is against the placement of NATO infrastructure next to Russian borders by drawing in new members, and the horizontal one means that Moscow will never approve of Baltic or post-Soviet States joining NATO.”

This position remains one of the most important pillars of Russian Foreign policy regarding the enlargement of NATO, and because of this foreign policy priority, Russia has tried to express its disagreement by presenting a tough reaction to Georgia’s and Ukraine’s desire to join NATO.

High-level Russian officials are convinced of the idea that NATO has an anti-Russian orientation. The main argument for this hypothesis may be Russian President Vladimir Putin’s speech in the General Assembly of the UN. He stated,“Sadly, some of our counterparts are still dominated by their Cold War-era bloc mentality and the ambition to conquer new geopolitical areas. First, they continued their policy of expanding NATO – one should wonder why, considering that the Warsaw Pact had ceased to exist and the Soviet Union had disintegrated.”It appears that NATO is the West’s main lever for deterring Russia, and also the West’s unique watchdog, used to topple regimes which are not playing according to Western rules.

This Russo-American confrontation also takes place in cyberspace. The countries are engaged in a real war there. On the American side, with the help of Russian hackers, information about Hilary Clinton’s official electronic correspondence was spread worldwide, which had an influence on the results of presidential elections in the US.   As a result, Clinton lost votes. Because of these Russo-American clashes in cyberspace, the Obama administration deported Russian diplomats from the US, accusing them of involvement in cyber-attacks perpetrated against the US. Putin did not respond to this measure with an equally aggressive answer, and instead announced that he had no wish to fall to the level of “kitchen diplomacy.” With this step, he did not participate in the burning of the Russo-American “last diplomatic bridge”. He confirmed once again that he is ready to cooperate with Donald Trump, elected president of the US, and that he did not want to escalate the situation.

However, while in 2017, Russia was able to keep its balance and avoid economic collapse, in the future, confrontation with the West may become more harsh and dangerous.

After the referendum on the status of Crimea, when Crimea was integrated into Russia, both the US and EU adopted sanctions against Russia.

In June 2016, during the St. Petersburg International Economic Forum, President Putin offered several proposals for normalization of Russia-EU relations to European Commission President Jean-Claude Juncker, but, the EU prolonged sanctions on Russia.

Further development of Russia-EU relations also highly dependent on US foreign policy under Donald Trump, because up to now US decisions have had profound influence on the generation of EU foreign policy.

Taking into consideration the fact that nowadays, the EU’s main leader is Germany, from my point of view, the political developments that have taken place in Ukraine can be placed within the framework of Russo-German historical clashes, but now in a new confrontation.

Throughout history, the German political elite was interested in the East, where it clashed with Russia several times, and as a result was forced to retreat. Until 1945 Germany’s eastern policy consisted of trying to conquer Eastern Europe by military means, but this strategy failed. It appears that German political thought has made new calculations, and now it tries to spread its influence not with weapons, but using its economic leverage—Soft Power. As a result of this new “Eastern Policy”, the majority of Eastern European countries have already joined the EU.

Because of the new Russia-West confrontation, Ukraine has been divided into two parts. On one hand, Western Ukraine has started cooperating with the West and set integration into the EU as its long-term political goal. On the other hand, Crimea and Sevastopol have been integrated into Russia, and Eastern Ukraine is still controlled by pro-Russian military groups.

It is worth mentioning that the annexation of Crimea by Russia was seen as a possibility by the Ukrainian political elite long before 2014. Back in 2007, former Ukrainian Prime Minister Yuliya Tymoshenko wrote in “Foreign Affairs” that Russia must not be permitted to use Kosovo’s independence from Serbia as a precedent to promote secessionist movements, most importantly a Crimean secessionist movement, in attempt to destabilize national governments.”

However, Russian Foreign Minister Sergey Lavrov mentioned that Russia has no intention to continue confrontations with the US, EU and NATO. As he stated, the best option for defense of the interests of the European continent’s population may be the creation of a single economic and humanitarian space, which would reach from the Atlantic to the Pacific Ocean. He added that the newly established EAEU could become the best bridge for integration processes between Europe and the Asia-Pacific.

Non-Traditional Forms of Classical Diplomacy: New Directions

It is mentioned in the Concept that soft power must be one of the most important tools of Russian foreign policy, and must be widely used by Russian diplomats.

The “Gerchakov Fund”and the “Russian World” foundation actively work towards the improvement of Russia’s reputation and the creation of a network of supporters worldwide. They grant scholarships and organize special courses to represent the Russian language, as well as Russian culture, history and policy.

In the new Concept, Russian diplomacy places high value on the preservation of Russian communities and Russian identity around the world. It is worth mentioning that Russia has started to place importance on the involvement of the Russian diaspora in its foreign policy. It means that Russian diplomats plan to use public diplomacy to achieve their main goals.

The 48th clause of the Concept says that Russia must take steps to use the potential of Russian researchers in its public diplomacy by activating contacts between Russian and foreign scholars. Currently Russia has many powerful analytical centers, for instance: the Russian Council on International Relations, the PIR Center, the Valdai International Discussion Club, and others, which, with the help of modern technologies, distribute their publications in both Russian and English.

Conclusion

It is worth mentioning, that in the Concept’s 21st and 22nd clauses, Russia acknowledges its responsibility for the maintenance of security on both regional and global levels. It is mentioned in this document that throughout history, Russia has always played a unique role, balancing international relations and contributing to the development of civilization.

Professor Stephan Kotkin does not agree with this idea; as he mentioned, “Until Russia brings its aspirations into line with its actual capabilities, it cannot become a ‘normal’ country, no matter what the rise in its per capita GDP or other quantitative indicators is.” In my turn, I do not agree with Kotkin, as after the collapse of the USSR, Russia tried to integrate into the Western world several times and become, as Kotkin described, a “normal” country, but it came across closed doors. Then it tried to turn toward the East, but in East it is also very hard to play one’s own game, as China, in turn, tries to play the leading role there and will not surrender its position to the Russians. That was the main reason that Russia turned to the former Soviet Republics and started to create its own, independent pole.

Because of the West’s attempts to isolate and deter Russia, the country started to implement aggressive policy to defend its national interests and break the potential blockade.  As a result, with lightning speed, Russia reunited with Crimea and Sevastopol.

By retaking Crimea and maintaining Assad’s regime, Russia ruined the West’s plans, due to which Russia could have been ousted from two seas, the Mediterranean and the Black. In short, thanks to its support of Assad, Russia extended its military bases in Syrian Latakia, and by reconquering Crimea, it kept the dominant strategic position of the Russian navy on the Black sea.

After the collapse of the USSR, during the Syrian crisis and Ukrainian political turmoil, Russia has demonstrated that it is capable of defending its national interests, not only via declarations and negotiations, but also by exerting its influence and projecting its power on a global scale by combining its military and economic strength.

Which kinds of developments will take place in the era of Russia’s return to big policy?

If Russia unites most of the Post-Soviet States in one economic and political block, it could form a new strong pole, which could become an alternative to the US and China’s political models. Russia chose the so-called Eurasian ideology for uniting different Eurasian nations under the umbrella of the EAEU. Indeed, this ideology can provide an opportunity to various states which were not brought into the EU or other integration programs projected by the West to join EAEU. The other argument is that if Russia and China will be able to harmonize the EAEU with the Chinese “One road, one Belt” program, they can form a very strong pole, and thus they will irreversibly change the unipolar world order, which was created at the end of the Cold War.

Russia’s return to global big politics means that the role of the UN will be strengthened. If, in the recent past, the US underestimated the role of UN, and many times made several steps without waiting or asking the UN, now it must, because Russia and China can keep them in the same manner, and as a result international society will face dangerous chaos. Thus, Russia’s return to “global big politics” will bring balance to world affairs. Development of the EAEU will provide an opportunity to improve the economic situations of Post-Soviet states, which are not in good political, social and economic condition.

The process of integration into the EAEU will provide opportunities for development to most of the Post-Soviet states which are still mired in political turmoil and economic hardship.

The only problem with Russia’s return to global big politics is that it can lead to new political crises in the world, arms races, a continuation of the so-called Cold war, wars, and victors and losers, if this return is seen by western capitals as a great threat.

(*)Mher D. Sahakyan-Doctor of Laws in International Relations (Nanjing University, China).Research Fellow, National Defence Research University, MoD, Armenia, Director of the “‘China-Eurasia’ Council for Political and Strategic Research” Foundation, Armenia and the author of the article Rethinking Russia’s Return to Global Big Policy, (Dar 21, 2(72), 2017, pp. 63-88), from which this essay is adapted. Translated from Armenian. Used by permission. All rights reserved.

Mher Sahakyan- Ph.D. (Nanjing University), Research Fellow, National Defence Research University, MoD, Armenia, Director, “‘China-Eurasia’ Council for Political and Strategic Research” Foundation, Armenia

Russia

What Does 2018 Have in Store for the Kremlin?

Dr. Andrey KORTUNOV

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How does the world in 2018 look from the Kremlin? Judging from statements and interviews of Russian leaders, the world is not a very cool place these days. The international environment is more adversarial than cooperative; security challenges dominate over development opportunities; national survival rather than economic prosperity is the name of the game in global politics. The Kremlin’s perspective implies that the international system has entered an arguably long period of instability, increased volatilities, multiple regional crises and, more generally, a steep decline of the global and regional governance.

In my view, it would be wrong to dismiss this vision of the world as completely hypocritical or entirely self-serving; it reflects very real concerns and fears of the Russian leadership. Let me try to summarize the most often referred to manifestations of the 2018 international ill-beings, perceived roots of the problems and Kremlin’s suggestions on how to deal with multifaceted crises in 2018 and beyond.

Manifestations:

  1. The state crisis in the MENA region, in sub-Saharan Africa, in parts of the former Soviet Union. States are losing their sovereignty; they cannot provide law, order or basis social services to populations on their territories, turning into failed or semi-failed states. Failed states became hotbeds of conflicts that last for years and even decades with no solutions in sight.
  2. The growing unpredictability and volatility of global and regional economic and financial markets creates new risks; states, societies and individuals can no longer control their economic destinies or even to influence them in a significant way. We observe economic and social polarization among states and within them; polarization increases populism, radicalism and extremism of various kinds.
  3. The rise of non-state actors challenges state sovereignty and questions the fundamentals of the modern international system. Irresponsible non-state players (from international terrorism and religious fundamentalism to transnational crime and multinational corporations) are accountable to nobody and often have goals and aspirations incompatible with international peace, stability and prosperity. Any attempts to manipulate these players are counterproductive and dangerous.
  4. Uncontrolled and potentially disastrous environmental and climate changes, mounting challenges to biodiversity, environmental stability and resource sufficiency constitute another dimension to the crisis. We observe gross inequalities in resource distribution around the world, the looming resource crunch (food, energy, fresh water, etc.).
  5. The explosion of regional, continental and global migrations increasingly affect the world, which is completely unprepared to confront this challenge. It leads to an unavoidable economic, political, security, social and cultural implications of the coming migration crisis with most countries ill equipped to handle these implications.
  6. Another manifestation of the crisis is the ongoing decline of many international institutions — global and regional, security and economic alike; the growing inability of the UN based system to find effective solutions to mounting problems. In many cases, we witness a shift from legitimate institutions to illegitimate or semi-legitimate ad hoc coalitions.

Roots:

  1. The liberal economic and political paradigms have depleted their potential; they can no longer provide a stable economic growth, a fair distribution of wealth and an acceptable political inclusiveness. Spontaneous market forces and open political competition demonstrate their limitations.
  2. The Western triumphalism after the end of the Cold War led to an institutional overstretch and to ungrounded hopes for the West-centered world. The Western (both American and European) arrogance led to many crises that could otherwise have been avoided or at least mitigated.
  3. The selective use of international law, double standards in international relations, a lot of hypocrisy and double-speak contributed to the erosion of some of the fundamental norms of international public law. These factors produced diverging and even opposite narratives, contributed to more cynicism, opportunism and transnationalism in foreign policies.
  4. The rapid and chaotic process of globalization produced many negative side effects including a rapid decline of traditional values, a global revolution of expectations along with social and cultural polarization, growing vulnerability of an individual to extremism and political radicalism.
  5. The ongoing technological revolution created a whole spectrum of new opportunities for disruptive and subversive non-state actors — including new means of communications, new types of weapons, and new mechanisms of political mobilization. However, states turned out to be unprepared to regulate properly the technological revolution and to put its potentially dangerous repercussions under proper control.
  6. Most of the Western political systems do not allow for any long term planning; politicians in the West are looking for fast results and quick returns on their political investments. This feature of the modern liberal democracy contradicts the apparent need for large scale and long term political projects, including resource-consuming ones.

Solutions:

  1. We have to agree that the critical task of the day is the task to restore and to enhance the shattered global management. Without addressing this task, we are not going to succeed in any other undertakings. The central dividing line in the modern international system is not that between democracy and tyranny, but between order and chaos.
  2. The prime building blocks of the international system are and will continue to be nation states. Therefore, the principle of sovereignty should be fully adhered to and considered to be of paramount importance. Interdependence and integration can be accepted as long as they do not contradict the principle of sovereignty.
  3. The emerging international system should fully reflect the changing balance of powers in the world. The existing West-centered institutions should either undergo a profound transformation or be replaced by more universal, more inclusive and more representative organizations.
  4. We should fully reject the concept of Western (i.e. liberal) universalism of favor of developmental pluralism. The emerging concept of modernity should imply opportunities for preserving national traditions, culture, specific economic, social and cultural models distinctly different from the Western examples. No export of liberal democracy should be supported or even tolerated.
  5. Spontaneous market mechanisms, which set the rules for the global economic and financial systems today, should be complemented by appropriate regulatory frameworks; these are to be agreed upon by participating states. Non-state actors should be forces to moderate their ambitions and behave accordingly.
  6. The overall international system should constitute a pyramid with a number of interacting levels: (1) UN and its specialized agencies; (2) regional security and development institutions; (3) ad-hoc coalitions and alliances with an appropriate mandate; (4) a system of overlapping multilateral and bilateral agreements and other arrangements (regimes), and (5) a think network of contacts, interactions, partnerships, etc. of non-sate, sub-national and other actors.

Numerous critics of Vladimir Putin in the West would argue that this picture of the world in 2018 is one-sided, dogmatic, antiquated and misleading. They would also insist that Russia itself contributed a lot to many problems that the international community has to deal with in 2018 and beyond. Finally, they are likely to maintain that this vision is meant to justify the current Russia’s foreign policy and security posture, to keep the Russian political system intact and to put on a back burner all the badly needed economic and social reforms.

However, a more productive approach might be in trying to single out particular bits and pieces of this vision, which could constitute a basis for a substantive, albeit very limited, dialogue between Russia and the West on the fundamentals of the emerging world order. Even if this dialogue in any format starts this year, it is unlikely bear fruits anytime soon. Nevertheless, to understand Russia’s true concerns, fears, perceptions and expectations remains important, no matter how archaic, biased, opinionated or self-serving these might appear in the eyes of Russia’s critics.

Nikolai Lobachevski teaches us that two parallel lines can intersect, if we move away from the traditional Euclidean to a non-Euclidean geometry. Regardless of how each of us sees the world in 2018, it seems apparent that this world can no longer be explained within traditional IR paradigms. Once we shift to a non-Euclidean approach, parallel visions of the international system may gradually get closer to each other and finally intersect.

First published in our partner RIAC

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US Sanctions against Russia: The Forecast for 2018

Ivan Timofeev

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It must be clear that the letter and spirit of PL 115-44 define Russia in legislative terms as an adversary to the United States, which should be actively opposed and subjected to a comprehensive pressure. In fact, PL 115-44 sets the framework for US policies with regard to the Russian Federation, which to a great extent obviates opportunities for partnership and constructive cooperation. Russia should have no illusions about a reversal of course in the near future. We must also avoid underestimating the efficiency of the tools to pressure us. These trends need to be thoroughly analyzed and monitored.

So, the executive authorities will submit at least seven reports to Congress in 2018, which can be divided into three groups.

The first group includes reports drawn up mostly by the US Department of the Treasury. The U.S. Treasury is the key, if not the only, sanctions policy tool. Congress instructs the U.S. Treasury to work closely with the CIA, the Department of State and other agencies whose data may significantly expand capabilities of financial intelligence. The most expected document in this group is a report on Russian oligarchs and parastatal entities to be prepared by February 2018 and which contains a list of senior Russian political figures as well as oligarchs and entrepreneurs close to the “Russian regime.” Congress wants the submission of an assessment of the relationship between the said individuals and President Vladimir Putin or other members of the Russian ruling elite and an identification of any indices of corruption with respect to those individuals. The report should also include the estimated net worth and known sources of income of those individuals and their family members, including assets, investments, other business interests, and relevant beneficial ownership information and an identification of the non-Russian business affiliation of those individuals.

But being included in the report does not automatically mean that individuals or entities will face sanctions. Nevertheless, the Act unambiguously indicates that the report is a mechanism for their expansion. At least it is required to assess the potential impacts of imposing secondary sanctions with respect to Russian oligarchs, Russian state-owned enterprises, and Russian parastatal entities, including impacts on the entities themselves and on the economy of the Russian Federation, as well as on the economies of the United States and allies of the United States.

In theory, the report may include an unlimited number of Russian individuals and entities. But the algorithm and methodology of its compilation within so brief a timeframe is still a big question. It requires processing a huge amount of information, since, in fact, the case in point is Russia’s entire public sector. This significantly increases the risk of erroneous assessments, which may later affect the United States itself. In theory, the Americans may also choose to present a compact report that will include what they think are the most anti-Western figures. But one nicety involved is that the Act’s current wording does not imply that the report should be constantly updated and therefore the anti-Russia lobby can do what it will to expand the lists as much as possible.

The next report is to appear in February as well. It concerns opportunities for expanding sanctions against individuals or entities blacklisted by the Department of the Treasury under Presidential Executive Order No. 13662, which made it possible to impose sanctions to counteract Russian policies in Ukraine. The fine point is that the executive order imposed sanctions against Russia’s financial and energy sectors, while PL 115-44 added railways to the list, as well as the iron-and-steel and manufacturing industries. For the time being, the report is not to be expanded.

Unlike the previous two, the next report will require a longer preparatory period – until August 2018 – and is to be updated annually until 2021 (but there is nothing to prevent the timeframe from being extended). The report will concern any illicit financial transactions related to the Russian Federation or Russian nationals. It will contain data on specific violations, results of investigative actions, and outreach to the private sector to prevent these kinds of activities. Inclusion in the report involves criminal prosecution.

Importantly, it should disclose the outcome of US agencies’ cooperation with their counterparts in the EU and other countries. In other words, it internationalizes US practices. The report is also a mechanism for finding loopholes in law enforcement with regard to anti-Russia sanctions and has to include trouble-shooting proposals.

The next group is covered by the subtitle, Countering Russian Influence in Europe and Eurasia. The Act makes it incumbent on the US government to act as a protector of the sovereignty and security of all Eurasian countries that are or may become “victims” of Russian influence. The Department of State is the key agency responsible for this group. Policies in this area imply the broad use of soft power based on NGOs in the US and Eurasian countries (the Act lists some of these). The appropriations for these purposes in 2018 will add up to $250,000,000, a considerable sum given that it will be largely used for ideological and educational work rather than for infrastructure. At first glance, the money is spread across a wide spectrum of objectives and countries, such as protection of electoral infrastructure, the fight against corruption, legislative improvements, aid to NGOs and the media, and opposition to “propaganda.” However, given the low cost of these measures and their focus on countering Russia, they will become a serious source of pressure. At least this sum is much greater than Russia’s own “soft power” expenses. What’s more, Russian institutions are addressing the entire international agenda, while the West (let alone opposition to it) is not the first, nor the only target of its efforts.

PL 115-04 makes it incumbent on the State Department to report to Congress annually, including its performance, spending efficiency, and results. A separate report will cover cooperation with foreign entities and their contribution. In other words, the Americans expect that their spending should be reinforced by that of their allies in the EU and other countries. The report is due to be submitted on April 1.

The next two reports also need to be submitted annually by the US President.

The first is on the media organizations controlled and funded by the government of the Russian Federation. It is also a black list of sorts involving at least reputation effects and due to stigmatize both Russian media proper and those supported by Russia in some or other form.

The other concerns Russian Federation influence on elections in Europe and Eurasia. This is important as a tool for internationalizing the American approach to supposed Russian “electoral interference.” Unlike the United States, people in Europe and elsewhere are more or less skeptical of the US position. The annual report will make it possible to perpetuate the focus on this subject by aggregating events of any importance and prodding the related Western discourse towards the US stance.

Finally, yet another report is linked to a law on Ukrainian and other countries’ energy security interpreted as reduced reliance on Russian distribution or any ties with Russia. It is speaking about facilitation of Ukrainian energy sector reforms, the sector’s liberalization, enhanced efficiency, etc. But in the same breath it mentions counteraction to Russian energy projects (Nord Stream, etc.) and what it calls “Russian aggression.” It also says directly that the US policy should be aimed at promoting US energy exports to Europe, among other things, to create jobs in the United States. (This means that the Americans are using this political tool in market rivalry.) The Secretary of State is to report on the implementation of the Ukraine Freedom Support Act and on achievements in this area in February, with subsequent updates to be submitted every six months.

The bottom line is that PL 115-04 prescribes a specific bureaucratic procedure and narrative that will largely define US policy with regard to Russia in 2018 and thereafter. There will be at least seven reports submitted next year, each of which will most likely provide a pretext for the further alienation of Russia and the United States from each other. Russia needs a well-considered policy of clever actions that will make it possible to control confrontation, minimize damage, and retain foreign policy initiative.

First published in Valdai Discussion Club

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Russia- Europe: the Need for a Common Vision

Igor Ivanov

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Last days demonstrated yet another division in the transatlantic alliance — political leaders of major European countries explicitly distanced themselves from the new US position on the status of Jerusalem. Earlier they also opposed the new Trump assault against the Iranian nuclear agreement.

At the same time, the European Commission announced its plan to create a European Monetary Fund, to introduce a new position of the EU Minister of Finance in order to enhance the efficiency of the Union’s monetary policy. All the problems and complications notwithstanding, the EU — British negotiation on the modalities of Brexit go ahead narrowing the gap in positions of the two sides.

These and many other developments suggest that Europe has entered a period of a deep reassessment of both its institutional foundations that recently have demonstrated multiple malfunctions and its place and the role in the rapidly changing world of today and tomorrow. This reassessment will be difficult, sometimes painful and even risky, but Brussels cannot avoid or postpone it, if the European Union is to remain among global leaders drawing the counters of the new world order.

Russia, in its turn, has to confront serious challenges of both internal and external nature. Along with apparent recent successes in the international domain, the most manifestations of which being the fight against the terrorist threat in Syria and the advancement of Russia’s interests in the Asian Pacific region, Moscow faces an increasing risk of international isolation. Various sanctions and other restrictions applied to Russia have already caused significant negative consequences for the country. First, they distract substantial political and economic resources from dealing with urgent domestic problems. Second, they limit in many ways Russia’s capabilities to engage constructively in global and regional politics. Third, and this is arguably the most important, sanctions constrain political and economic reforms in Russia, which are badly needed and without which the country will find it increasingly difficult to stay in line with the most advanced nations in the world. To achieve this goal through keeping a robust military potential is clearly insufficient.

Of course, it is up to Brussels and to Moscow to figure out how to manage their respective domestic and foreign policy problems. However, in the modern interdependent world, where national and international factors are more and more intertwined, success or failure in addressing these problems will largely depend on external variables.

In the beginning of this century, Russia and Europe decided to build partnership relations with each other. It was not easy, given the remaining negative legacy of the Cold War, but it turned out to be possible due to the political will on both sides. At that point, everybody agreed that Russia could not become a full-fledged member of either the European Union or NATO and therefore we had to think about new mechanisms of cooperation. These new mechanisms had to help us to overcome institutional limitations and to open the door for a mutually beneficial cooperation.

Over two decades — and this is a very short period by history scales — together, we succeeded to shape a modern, well-structured normative base for our relationship that proved its efficiency in political, economic, and humanitarian domains. It is particularly important to note that we undertook a number of specific initiatives aimed at building a common and indivisible Euro-Atlantic security space.

Let me emphasize that Russia and Europe took all these steps not as concessions to the other side, but rather as a reflection of their respective interests and their understanding of long-term fundamental changes in the world.

Unfortunately, during the second decade of the XXI century a whole number of various reasons, which we have not yet analyzed in depth, led to increased tensions between Russia and Europe.   The previously accumulated positive potential in the relationship quickly evaporates; many established communication channels that have helped us to understand each other better and to find solutions to even the most divisive problems are now disrupted or blocked.   Why has it happened and could it have been avoided deserves a separate discussion. Of course, it is not exclusively or even largely about the Ukrainian crisis. The real troubles between Russia and Europe had started much earlier than 2013.

However, the most important question is not about the past, but about the future. What strategic trajectories can Europe and Russia choose from and how do these trajectories relate to each other?

One can easily imagine drifting further apart from each other guided by bitter disagreements about the past and their diverging perceptions of the future. The European Union will manage without Russia, and Russia will not collapse if it separates itself from EU. However, in this case our common continent will remain divided in the XXI century as it was for the most part of the XX century. The division will have a profound negative impact not only on Moscow and Brussels, but also on the nations in between. Furthermore, the inability or unwillingness of the two sides to make full use of their natural complementarity will inevitably negatively affect the ability of both Europe and Russia to remain vibrant parts of the highly competitive world that emerges right in front of our eyes.

The opposite trajectory implies both sides investing into bridging the gaps between each other, restoring communication links, identifying areas of mutual interest and gradually expanding cooperation in various fields. The progress is not likely to be fast; one can foresee many obstacles, procrastinations and setbacks on the way. The negative inertia of the current crisis will continue to intoxicate our relations for years, f not decades. Still, with due political will, stamina and patience exercised by both sides Russia and Europe can reverse many of the unfortunate developments we witnessed unfolding over last couple of years.

As they say, you should never waist a good crisis. One of the post important tasks for politicians, experts, public leaders and businesspersons on both sides is to rise beyond the passions of the day and to look at the Europe — Russia relations from a broader historic perspective. Only such an approach can enable them to focus our vision, to assess our long-term challenges, opportunities and capabilities –so that we could set our goals right.

First published in EFE Doc Análisis.

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