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West is Unlikely to Slap Heavy Economic Sanctions on Russia. Why?

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The tone of the statements made from Brussels and Washington and their decisions taken with regard to the Russian Federation, Russian businesses and officials imply that West is unlikely to go beyond ‘cosmetic’ sanctions.

Escalation of the Crimean conflict and the risk of further infiltration of the Russian troops into the continental part of Ukraine have raised a concern about international mechanisms of deterrence of the Kremlin policy, economic sanctions being among them. Although Brussels and Washington made rather harsh statements earlier, it is quite improbable that they will really dare impose heavy sanctions on Moscow. This means that the world community now lacks efficient instruments of influence allowing adequate response to the aggression of the countries with nuclear weapons.

The Russian Federation is the third biggest trade partner of the EU (next to the US and China) with the USD 417.4 billion sales turnover in 2013. That is why the sanctions in question may have the reverse effect and thus cause direct loss of about USD 170 billion to European producers. Considering the current state of the EU economy, the results will be grave. At the same time, it is quite remarkable that where the trade is concerned, the biggest losses will be incurred by the Eastern European countries (except Romania), which will result in yet greater misbalance in the EU economy, strengthen the effect of the centrifugal forces impeding stable economic development of the EU countries, and exacerbate economic issues within the EU in general.

Russia is one of the world’s biggest oil producing countries and the world’s second biggest ‘black gold’ exporter. It supplies most of its oil and gas to the EU countries. Hence, the only way to affect Russian economy is slapping sanctions on it that would target Russia’s energy sector. And this implies refusal from Russia’s natural gas supplies resulting in reduction of its state revenues. In 2013, the country’s earnings from oil export amounted to USD 162 billion, from natural gas export — USD 67 billion.

There are more factors which prevent the EU from ‘punishing’ Russia, such as location of Russia’s sufficient energy assets in Europe, complete influence of 11 EU countries on energy supplies from Russia, close partnership with Germany and the Netherlands in the area of gas supplies.

Out of 485 billion cubic meters of gas consumed by the EU countries annually, Russia supplies about 160 billion cubic meters which is almost one third of the total volume. According to the forecast suggested by governments and energy companies, by 2013 consumption may increase up to 585 billion cubic meters annually, and imports from Russia — up to 175 billion. Therefore, Russia’s share in gas supply to the EU will remain about the same.

In its turn, the dynamic of oil import by the EU 2001 through 2013 shows that, despite general decrease in volumes, Russia’s share has never decreased ever since 2005 — it was Kazakhstan, Libya and Saudi Arabia that reduced their exports. Import of natural gas is currently, quite oppositely, increasing steadily, Russia’s share still being the largest.

Talks about compensation of losses caused by lifting some Iran sanctions are absolutely groundless and economically unjustified.
Therefore, ban on Russia’s energy imports will be a blowback to Europe resulting in further aggravation of the current economic crisis. Brussels has no chance to arrange for quick diversification of natural gas supplies. At the same time, sanctions against Russia will result in raising prices for energy resources, which, vice versa, will increase Moscow’s revenues. Moreover, Europe will face economic recession once again, thus negating all anti-crisis programs implemented by Brussels during the last several years. In its turn, this will raise social issues.
So neither the US nor the EU will impose an embargo on oil and gas imports from Russia just because the consequences thereof will have too negative an effect on the global market which is expected to see growth of oil consumption up to 92.5 million barrels daily in 2014. Iran’s Minister of Petroleum Bijan Namdar Zangeneh agrees with this forecast.

Russia’s budget for 2014 was calculated based on the average annual oil price of USD 93 per barrel. In case sanctions become a reality, the prices will well exceed USD 130, and the raise will continue. This will bring Russia additional USD 37 from each exported barrel of oil at the least. Let us not forget that in 2013 Russia exported about 234 million tons of oil and liquid gas.

Imposing sanctions against the key Russian energy companies — Gazprom, LUKoil and Rosneft —also seems quite doubtful. Most of them signed field development contracts with a number of American and European oil and gas producing companies. Therefore, the blow to Russian oil and gas producing companies will affect their western partners whose business interests are concentrated in this country.

According to Bob Dudley, the Group Chief Executive and a director of BP — which is one of the largest foreign investor in Russia’s oil producing industry owning a 20% share in one of the world’s biggest oil exporters Rosneft — his company is not going to stop investments in Russia. He underlined that BP is immensely interested in investing in this country. BP produces one fourth of its oil and keeps one third of its oil and gas reserves in Russia.

President of the French company Total Christophe de Margerie promised to continue investing in the USD 26.9 Yamal LNG project where Total’s share amounts to 20%, its project partners being Novatekom and CNPC (China). The partner plan on starting liquid natural gas supplies from the arctic field in 2017. “We are there for a long term,” Margerie told reporters at the IHS CERAWeek energy conference. “Total and Yamal will definitely survive through this crisis and I hope not too many others.” At the same conference, Paolo Scaroni, the Chief Executive of Eni, said that sufficient gas reserves give Russia powerful instruments of influence on Europe. He believes that the worst possible scenario would be complete termination of gas supplies from Russia through Ukraine.

On March 5, after Russian troops invaded Crimea, top managers of the British energy producing company BP and the French Total promised to continue investing in Russia, and CEO of the Italian Eni underlined once again that huge gas reserves allow Moscow to hold control over the whole Europe.

According to Rainer Steele, Chairman of the Board of Directors of Gazprom’s partner Wintershall, sanctions against Russia will not settle the issue and will be ineffective. Philipp Mißfelder, member of the German Parliament, also said that sanctions against Russia will affect Germany, and that sanctions are never a good method for export-oriented Germany. German Minister for Foreign Affairs Frank-Walter Steinmeier doubted that Europe would even dare expel Russia from the G8.

Direct EU investments in Russia’s economy are yet another issue. Thus, foreign direct investments from the Netherlands in Russia amount to 12% of the overall investment outflows from Amsterdam, 4.3% from Germany, 3.4% from France, 30% from Cyprus (mostly reinvestments), 3.8% from Ireland.

Investment outflows from Russia to the EU are also quite considerable: 37% — Cyprus, 15.9% — the Netherlands, 2.5% — Great Britain, 2.2% — Germany. This shows that blocking of bilateral financial flows between Russia and the EU is not reasonable from the economic point of view.
According to the disclosed secret documents of the British Parliament, Downing Street also recommends to refrain from closing the British market for Russia, and to not go beyond visa restrictions and exclusion for certain Russian officials. In particular, one of the documents tells that Britain should not impose any trade sanctions or close London’s financial centre for Russian capital.

These recommendations also include evasion of the issue of participation of the North Atlantic Alliance in settling the Crimean conflict. This means that the EU will resort only to some political instruments available to the OSCE and the UN that will be targeted at certain persons and not the whole country.

All in all, Britain and Germany will attempt to not affect their own economy, and this is what will determine further London’s behaviour. We believe that Britain and Germany will only act as diplomats in the Crimean conflict, and they might even try to lobby some nominal sanctions about which the US Senator John McCain gave a hint in his interview after his meeting with the British representatives during which he expressed his disappointment about London’s official standpoint and ignoring history’s lessons on the part of Europe. Basically, he said that the US would like but could not possibly impose certain effective sanctions, and Europe is not ready for such serious measures.

Russia only ranks number 20 among the countries consumers of the US products and is not among the top ten of the countries exporters of goods and services to the US. Therefore, Washington has only financial leverages at its disposal in this situation. Moreover, sanctions similar to Iranian, for example, will affect, and most probably, block economic cooperation between Russia and the EU — scenario which is unacceptable for Brussels. This means that neither the US has any flexible economic leverages against Moscow at their disposal.

That is why Washington now counts on, first of all, imposing sanctions by its European partners aimed at limiting access for the Russian President’s wingmen and partners to their bank accounts and financial flows within the territory of Europe. Therefore, they expect some upward pressure, sparking discontent among the political elite which would make it possible to prepare grounds to exert influence on the Kremlin. However, it is not probable that such measures will turn out to be effective.

It is fair to say that the international checks and balances system elaborated back in 1945 is efficient no more, and the depth of integration of the global economy no longer allows control over the countries with nuclear weapons and critical shares in the global export. In view thereof, despite all the strivings of the world community, there are no more ‘innocent’ leverages to exert effective pressure on such players as Moscow, Washington and Beijing. Any instruments which may help achieve the desired results are going to bring serious consequences for the global economy and the initiators of the sanctions. At the same time, as the ‘Crimean precedent’ may be used without any dramatic consequences only by three countries, and Washington and Brussels understand that no mass chain reaction will follow, and most incidents may be precluded by means of traditional diplomatic and economic instruments.

This means that the world is gradually approaching the new round of the Cold War which today, as strange as it may sound, may have a stimulating effect on the development of the key national economies.

Therefore, according to our forecast, West is likely to resort to financial aid for Ukraine instead of further complicating relations with Russia, thus preventing the risk of economic loss in the context of the current crisis. This means that neither Washington nor Brussels will dare impose serious economic sanctions against Russia. Hence, these instruments are unlikely to considerably influence the Kremlin’s policy with regard to Ukraine in the medium term.

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Putin, United Russia and the Message

Kester Kenn Klomegah

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On Dec. 8, Russian President Vladimir Putin took part in the plenary meeting of the 18th United Russia party congress, reiterated the key challenges, problems and accomplishments for the nation. The congress delegates identified the challenges and priorities in the party’s work for the coming year.

Putin acknowledged the party’s support during his presidential election campaign, saying it was “a momentous thing shaping the top institution of power” in Russia. This concerns the president, the government, the region – any level, down to the local or municipal one.

Putin further referred to an action plan that was presented in a condensed form in the Executive Order in May 2018 and that set out in national projects drafted by the Government (the majority in the Government are United Russia members) and was supported by legislators (United Russia holds the majority in the State Duma). He pointed to the fact that there would not be any success without United Russia’s backing at the regional and municipal level.

“The United Russia party plays a special role. For a number of years the party has been showing its competence, its ability to make responsible decisions, explain these decisions to the people,” Putin told the party delegates during his address, while acknowledging frankly that there have been pitfalls and problems in the political leadership.

Leadership means making responsible decisions the country needs. This leadership is an enormous resource to achieve dynamic and substantive change that can ensure a radical improvement in the quality of life and greater well-being of the population.

Putin reminded the party meeting that the entire world going through a dramatic situation. In his words: “the world is undergoing a transformation, a very powerful and dynamically evolving transformation, and if we do not get our bearings, if we do not understand what we need to do and how, we may fall behind for good.”

He suggested that United Russia with its tremendous legislative, organisational and human resource potential must fully utilise it and consolidate all of society, in solving development issues, in implementing the nationwide agenda.

Putin told the party delegates never allow any sort of rudeness, arrogance, insolence towards people at any level – at the top level and the lowest, municipal level. This is important because it does the country a disservice, it is unfair to the people and it denigrates the party to the lowest of the low. The public demands fairness, honesty and openness.

What is “society” after all? It is the people. Thus, one key factor here is that people’s opinions and attitudes must necessarily be taken into account. There must be commitment to implementing people’s initiatives, and their initiatives must be used in attaining common goals, especially at the municipal level, according to the Russian leader.

The most crucial thing for a political party is a steady standing of its representatives and that United Russia does not have to fear change but rather work strategically towards making a change for the better.

Putin further asked the delegates to work relentlessly for a free democratic country, development of nationwide tasks, realisation of new ideas and approaches. Discussions and competition, including within the party itself are very efficient tools for solving problems in the interests of the nation. United Russia has to do everything needed to instil both inside the party in particular and in society in general this political culture, an atmosphere of dialogue, trust and cooperation with all political forces of Russia.

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G20 Summit: Looking for Compromise

Natalia Eremina

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The G20 is an important international forum, a meeting place for representatives of the world’s largest economies. Now, we can say that the division into the so-called “developed” and “developing” economies is irrelevant within this forum. Additionally, the G20 generally does, indeed, represent the interests of the global population, since its countries account for over 80 percent of the gross world product and two thirds of the entire population of the planet. It is also important to remember that such venues are very convenient for privately owned businesses, which, through the support of governmental agencies, can get favourable opportunities to hold talks with their foreign partners. Additionally, a rather large number of meetings and talks at G20 summits remains outside the spotlight, but their results confirm the significance of the many unofficial meetings, informal negotiations and talks on the side-lines of the summits. These meetings, which take place in a variety of formats, are vital for understanding the issues that are most important for leading international participants and whether there is consensus among them on the approaches required to resolve these issues. Moreover, as we consider meetings and agreements concluded on the side-lines of G20 summits, we can, to a degree, draw conclusions on the current configuration or re-configuration of international relations.

From the outset, we will note that the importance of G20 summits is gradually growing, even though they started out as meetings of ministers of finance and their initial goal was to formulate a joint response to global financial issues. Today, the summit has transformed into an international venue for discussing issues of global financial and economic policies and other pressing matters of the day. However, economic and financial issues remain significant for G20 discussions.

The summit is also important for the expert and political communities of various countries that assess the prospects of inter-country interactions. Apparently, at the Argentina summit, the meeting between Donald Trump and Vladimir Putin attracted the greatest interest, but it never happened, since the U.S. President cancelled it at the eleventh hour, which certainly demonstrates the growing tensions in U.S.–Russia relations.

At the same time, the summit is useful, since its function is not to settle bilateral relations, but to develop common approaches that satisfy different states with different economic indicators and representing different political regimes.

G20 summits are convened to discuss several pressing issues proposed by the presiding state.

The summit held in Argentina was devoted to building a consensus for fair and stable development. Face-to-face meetings between heads of state are particularly important for handling the task. The goal of the summit indicates that the global community is aware of the current tectonic shifts in the global economy and in world politics. For a full-scale scale discussion of the problem, four issues were put on the agenda: the future of work and new professions, infrastructure for development, sustainable food future and gender mainstreaming.

Clearly, the G20 is not just a venue for discussing issues that have been defined as key; it is also an opportunity to “compare notes” via different formats “inside” the summit. For instance, we can say that France, Germany, Austria and Italy did not represent themselves or their interests alone, but were also united by their common tasks as EU countries. In addition, as one of the world’s largest economies, the European Union is a member of G20 as a single body. At the present summit, the European Union was represented by the heads of the European Council and the European Commission, Donald Tusk and Jean-Claude Juncker. Similarly, BRICS countries use G20 to discuss issues of their own.

G20 in Implementing Russia’s Strategic Tasks

Russia’s current strategic priority is to take part in the establishment of the concept of a multipolar world and in elaborating new principles of interaction within integration processes in Eurasia. Therefore, special emphasis will invariably be placed on the possibilities for implementing the idea of “integrating integrations” at G20 summits, and this summit was no exception. In particular, special attention was paid to mechanisms for connecting the development of the EAEU with the “One Road – One Belt” strategy. In addition, issues of stepping up cooperation within BRICS are also addressed, and there is an ongoing search for parties interested in bolstering global political and economic stability through the instruments of “integrating integrations,” which entails Russia paying attention to China, India and other Asian partners, as well as the gradual stable growth of Russia’s interests in Latin America.

As for meetings that have the greatest significance for Russia, the key talks for understanding the development of Russia’s foreign policy are the now traditional sessions held with BRICS countries. In addition, a meeting was also held between the heads of state of Russia, India and China (in the RIC format). Objectively, this format could be the most efficient, since interaction between Eurasia’s three largest states is of principal significance for both regional and global security. The dialogue on security issues and collaboration in all areas will be continued at the second Belt and Road Summit in April 2019 that Xi Jinping invited Vladimir Putin to attend.

The President of the Russian Federation was probably one of the most active figures at the present summit. Naturally, he had a meeting with representatives of Argentina. It is all the more important today since the EAEU and MERCOSUR are building up their cooperation potential, and a Memorandum on Cooperation is being prepared. What is more, Russia and Argentina concluded an agreement on nuclear power generation that will allow Russia to start construction of Russian-designed nuclear power plants in Argentina.

The main topic of discussion at the meeting between Chancellor of Germany Angela Merkel and Vladimir Putin was the Syrian agenda. Indeed, an exchange of opinions on this question now, when various formats of building up the peace process are being discussed, is of particular importance. In addition, the President of the Russian Federation discussed the current situation in Syria with his Turkish counterpart, President Recep Tayyip Erdogan, who also confirmed the significance of the Turkish Stream for the stable and secure development of the economy of Turkey and other states.

The meeting between the President of the Russian Federation and Saudi Arabia’s Crown Prince Mohammed bin Salman focused on energy issues, with the two parties agreeing to extend the agreement on cutting oil production.

Vladimir Putin also met with Prime Minister of Japan Shinzo Abe, with the Japanese side raising the issue of concluding a peace agreement. For Russia, the issue is not particularly relevant anymore, and at the meeting, the two heads of state agreed to continue active cooperation to increase the level of mutual trust between the two sides.

Of course, a great number of people were interested in the informal conversation between Vladimir Putin and Donald Trump, who only had time to exchange opinions on the “Kerch Strait incident.” Trump’s refusal to meet with the President of the Russian Federation means a further loss of confidence between the two countries.

On the whole, meetings between heads of state were of particular importance at the summit, since, for instance, the meeting at the level of ministers of foreign affairs was downsized due to the absence of Russian and French ministers of foreign affairs, the U.S. Secretary of State and the High Representative of the Union for Foreign Affairs and Security Policy.

G20: The International Agenda

The so-called Iran nuclear deal has become one of the most crucial problems in international relations. Russia and the European Union have adopted the same stance on this issue.

In addition to economic matters, G20 also tackled the climate change problem and proposed complete and utter compliance with the decisions of the Paris Agreement on climate change. However, significant progress is unlikely after the withdrawal of the United States from the accord.

No less important were the discussions on the problem of terrorism. The G20 countries agreed that their Leaders’ Hamburg Statement on Countering Terrorism needed to be implemented. Incidentally, that statement declared the need to fight terrorism internationally in all its forms and manifestations. However, the current situation is extremely complicated, and discussions concerning Syria confirm this fact.

The influence of the European Union and the United Kingdom on the international security agenda and their claim that Russia is the main disrupting force are just as worrying. The European Union, in the person of Donald Tusk, sought to expand the summit’s agenda with a discussion of Russia’s so-called aggression against Ukraine, which he likened to the problem of trade wars. However, despite the suggestion put forward by both Tusk and the United Kingdom that the G20 discuss Russia’s allegedly impermissible conduct and use some instruments against it, the proposal failed to gain traction. It say a lot that the “Kerch Strait incident” did not overshadow any of the meetings held by the President of the Russian Federation at the G20 Summit.

The attention of international actors was also focused on the meeting between Donald Trump and Xi Jinping, who failed to achieve a consensus on economic interaction, but agreed to a 90-day moratorium on introducing increased tariffs. Accordingly, special hopes are pinned on this interim measure. Clearly, China will not make the unilateral concessions that the United States is calling upon it to do, appealing instead to the idea of a compromise.

Results of the G20 Summit

While the summit’s final declaration does not contain specific figures and objectives for the most sensitive issues on the agenda, it does offer mechanisms for their resolution. In this respect, the summit did not turn out to be a breakthrough in resolving pressing issues. However, it demonstrated that no issue will ever be resolved if the parties abandon dialogue and compromise.

The results of Russia’s efforts at the summit include the signing of a large set of bilateral agreements between public and private bodies. The summit also demonstrated that Russia is actively and successfully stepping up cooperation with Latin American countries and enhancing its multi-format collaboration with the BRICS nations, particularly with China and India.

It is both curious and telling that the media was most interested in the meetings held by Vladimir Putin, Xi Jinping, and Donald Trump. However, we should mention the different approaches of these heads of state. For example, the President of the United States demonstrated that his country was not especially interested in following the established rules and was far more concerned about retaining the right to develop new rules of the game independently of other participants in international relations. Meanwhile, China’s and Russia’s leaders spoke about cooperation and compromise both in their joint meetings held in various formats and in their conversations with other heads of state. Additionally, the fact that the world is changing rapidly was recognized at the summit, meaning that the rules of the game can and should be changed and that new rules need to be formulated, but only through collaboration and compromise.

The heads of state also appealed to the IMF and the World Bank to work towards improving the economic situation in various countries and increasing the transparency of their work in interacting with states. This should help reduce sovereign debt and ensure that the recommendations offered by international financial institutions in individual states are implemented more effectively.

In addition, the leaders of the G20 countries concluded that responses need to be developed to current and future challenges in the development of the WTO and attempts should be made to avoid excessive contradictions, sanctions and tariff restrictions. The parties also agreed that the WTO needs to be reformed for it to work more efficiently. This aspect will be considered at the next summit in Japan.

Interestingly, virtually all countries supported multi-laterality, confirmed their commitment to the rules of international trade and agreed that efforts to overcome crisis trends in the global economy should be stepped up in order to avoid a repetition of the 2008 global crisis. The final declaration states that the global economic growth is increasingly less synchronized between countries, which entails risks to economic security, particularly given geopolitical tensions and financial unpredictability. To overcome this problem, it is important to step up interaction and increase trust among all parties in international relations.

The G20 states also announced that it was necessary to continue joint work on studying the impact that the digitalization of economy has on the global tax system, which needs to be adapted to current conditions by 2019 (final decisions on the matter will be elaborated and published in 2020).

Thus, the G20 Summit in Buenos Aires once again demonstrated the significance of the mechanisms of dialogue and achieving compromise based on constant information exchange between countries. The compromise-based approach was officially adopted as the foundation of all agreements, and was the leitmotif of the event. Given the circumstances, an increasing number of states recognize their significance as participants in international relations and, with each passing year, they strive to more forcefully state their stance on the most sensitive issues. Clearly, the Russian Federation wholeheartedly welcomes this trend.

Therefore, it should be noted that the recent summit in Argentina demonstrated that the G20 is just that – a group of countries – and not a political club. This fact increases its significance as an organization exhibiting a multilateral, multi-format and pluralistic nature of today’s international relations. Active discussions in such a format confirm the relevancy of multipolarity and the current processes of reconfiguring the world. In such circumstances, Russia can most fully implement its interests and convey its vision of international matters. An analysis of the volume of news reports in the European media is quite telling in that it proves that EU journalists were primarily interested not so much in meetings of heads of EU states, but in meetings with the participation of the leaders of Russia, China and the United States, meaning that EU representatives were running second in the newsfeeds of many news agencies. Thus, the results of the summit allow us to state that there has been a significant increase in the international community’s attention on Russia.

First published in our partner RIAC

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Russia Calling the Shots: Extrapolating from the Kerch Strait

Dr. Matthew Crosston

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The quasi-standoff this past week between Russia and Ukraine over the Kerch Strait has been painted in the West with a decidedly anti-Russian brush. After Russia fired near three Ukrainian naval ships attempting to enter the strait (which sits as a small maritime passageway between the eastern edge of Crimea and the western tip of the Krasnodar region of the Russian Federation, allowing ships to move between the Black and Azov Seas) and ultimately resulted in their seizure by Russian border guards, political actors all across the West have been quick to snap judgment against ‘Russian aggression:’ the EU has debated whether it needs to enact new sanctions against Moscow; Ukraine invited NATO to send a heavier naval presence into the Black Sea; even the Trump administration has at least temporarily canceled a future visit that was scheduled between the American president and Vladimir Putin, although it is not entirely certain that this is perfectly aligned with the Kerch Strait incident.

As has been the standard media and political play when it comes to Russian-American relations over the past several years, no one seems to be attempting to analyze what the Russian position is, other than derisively dismissing the Russian accusation of the entire incident being a Ukrainian ‘provocation.’ Regardless of the strong desire to put the black cowboy hat on to Putin (and to be fair, Putin sometimes seems to actually enjoy donning it, if at least to thumb his nose at the West), the Russian position, if taken more seriously, does give Western leaders important information about how Russia views not just its immediate region but also its political mentality on the global stage. America would do well to pay attention to this at least for the insights it can give into the Russian mindset.

First, Russia clearly still harbors irritation and resentment over what it considers to be continued interference from the West in Ukraine, ostensibly giving Ukraine a false sense of being able to ignore Russia as the true regional power and harbor false dreams of closer military ties to the European Union and NATO. This gives Russia the marked perception that the West is thereby purposely fomenting dissension between Russia and Ukraine. Second, Poroshenko, the President of Ukraine, has a unique talent for enflaming this Russian perception to near hysterical heights, what with his penchant for making nearly continuous claims about Russia intending to ‘steal his entire country’ and installing ‘partial martial law’ over part of his own country when it comes to access to Crimea. Third, the consequences of the first two problems create Russian exasperation with what the Kremlin considers a ‘foreign policy double standard’ that favors the United States, causes its neighbors to act ‘irrationally’ (at least irrational according to Russian national security interests) and which will simply never be accepted by Russia.

The Crimean referendum, which led to Russia accepting Crimea back into the regional fold of the Russian Federation formally, was the first obvious (to Russia) example that false promises were being made to Ukraine. After all, it was the Russian military that came into Crimea after the referendum and literally dared NATO or the EU to come forward and try to expel it from the peninsula. It was calling out the NATO promise – made to the leaders of the Maidan revolution in Kiev – that it would not allow Russia to make ‘any incursions’ into Ukraine, and proving it to be nothing but a bluff. Russia marched. Kiev called. NATO didn’t pick up. Even now, Arseniy Yatsenyuk, the former Prime Minister of Ukraine, recently expressed disappointment with NATO over the Kerch Strait incident, declaring how the ‘good relations’ between Ukraine and the Western defense organization have not materialized into ‘stronger military communication.’

This has been the foundation of Russia’s tough love approach to Ukraine and its misplaced Slavic shuffle: stop thinking you have a bigger or more powerful ally than the one that has always been on your Eastern border and has deep historical, religious, and cultural ties to you. The EU and NATO will never stand up to Russia in favor of Ukraine when the issue is relatively small on the global conflict scale. And despite what current Russophobes may think, Crimea and the Kerch Strait, since they have not escalated into something bigger or more violent, apparently do not pass the Western intervention sniff test. Thus, with the Kerch Strait today (which not coincidentally is the maritime pass over which Russia built a massive superhighway, literally connecting the Russian mainland directly to Crimea and which, understandably, the Kremlin is a bit sensitive about when it comes to any appearance of military maneuvers near it by another nation), Russia is challenging what seems to be a second NATO bluff. Instead of hoping for NATO to draw a red line, Ukraine might be better off paying attention to the Russian red line.

In the end, this is not Russia trying to escalate violence or war with Ukraine. It is not Russia attempting to bring Western powers deeper into what it considers its own sphere of neighborhood influence (based on very simple, classical realist power considerations). Rather, it is Russia attempting to ‘educate’ Ukraine about who its real allies should be and who its false friends are. Perhaps more than anything, it is Russia somewhat condescendingly telling the West that no matter how much nonsense it fills in the heads controlling Kiev (consider Putin just announcing that Kiev would get away with ‘eating babies’ as long as it would make things more difficult for Russia, all major decisions in this region of the globe are going to remain firmly in Russian hands. The West may not like it, but so far in the game of Ukrainian Bluff, it is Russia 2, the West 0.

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