Twenty years ago, Russia was a mess – no longer an enemy, not even an adversary and certainly not a partner. What was feared most was a collapse that might turn Russia into something resembling the former Yugoslavia, all pire. “I don’t like it when the U.S. flaunts its superiority,” complained Russia’s then president Boris Yeltsin, who insisted, “Russia isn’t Haiti…Russia will rise again.”
Events now confirm that; Russia is back. And it’s back as a bully to former Soviet holdings in Europe, as a challenge to the United States, and as one of the self-proclaimed leaders of what is allegedly a post-Western world.
This isn’t just a burst of imperial nostalgia akin to that of some European states a few decades ago. Nor is it a moment of post-bipolarity funk – a rebellion against an all-powerful America that didn’t make time for Russia when it was the time to do so, and a revolt against a uniting Europe that didn’t make room for its larger neighbour when it had been hoping for an invitation. As always, ghosts linger on. Seven decades of Soviet governance failed to bury centuries of Russian imperial history. La grande Russie doesn’t stay passively silent for long: her vocation is to be heard and expand, not to withdraw and shrink. The “soul” attributed by former U.S. President George W. Bush to Vladimir Putin after their first meeting in June 2001 mourned two decades of disrespect. Shorn of nearly a quarter of the Soviet Union’s post-1945 territories, Russia was still too big, too near and too nuclear for such treatment – not yet a true European power, but still a leading power in Europe. Russia thus longs for its imperial past, and the vexing question is how to impress upon its government in Moscow that there are limits to self-image that the Russian state can no longer sustain and which the West need not tolerate any longer.
“When Russia was weak in the 1990s,” remembers former U.S. Defence Secretary Robert Gates, a self-described hardliner on the Soviet Union, “we did a poor job…managing the relationship for the long-term.” The mistake, then, was to pay insufficient attention to Russia’s legitimate interests and concerns. Now that Russia looks stronger, the mistake would be to exaggerate the significance and relevance of those interests. America’s unfinished business with Russia is part of Europe’s own unfinished business, one half of which consists of an ever closer Union while the other half is being undone by national identities that challenge the EU member states’ sovereignty.
The end of the Cold War came abruptly. There was no cease-fire, no peace conference, no formal treaty and no settlement. As the Soviet Union held an unprecedented real estate sale, the West helped itself. What was in Europe was the Russian state of 1917. It might have seemed dead – “Mort à jamais?” as Marcel Proust had asked – but not forever or even for long. It was not wise to dismiss centuries of history that had seen Russia’s territories expand by one Belgium a year for 300 years, that had brutally imposed the Russification of ethnic minorities, and had relied on authoritarian and even totalitarian rule to subjugate its people.
Now it’s Vladimir Putin’s turn to dismiss his country’s most recent defeat and ride at the head of an anti-Western posse against what he calls the world’s “one centre of authority, one centre of force, and one centre of decision-making.” But that moment, too, will pass. As Russia’s economy runs out of gas, so to speak, it also finds itself short of energy – meaning; people and even security space. Over time, an under-developed, de-populated, and encircled Russia has no credible alternative to closer co-operation with the West. Too much history and too little geography separates Moscow from a dangerously ascending China, reportedly Moscow’s alternative of choice.
Boris Yeltsin had whimpered that if there was no clear winner, at least the Cold War had produced no loser. “We’re not talking about a relationship between superiors and inferiors, but between equals,” he wanted his “friend” Bill Clinton to know. There were echoes of Talleyrand at the Congress of Vienna in 1815 who insisted that defeated France should be treated as a co-equal. “If there are still allied powers,” Talleyrand told his victorious interlocutors, “then I do not belong here.” Of course, the legendary French diplomat was one of a kind, but in October 1991, on the eve of its collapse, the Soviet Union was also invited by the United States as the triumphant state to co-chair the Madrid Conference which then-Secretary of State James Baker viewed as “the end game for peace” in the Middle East. A decade later, Putin attacked his country’s implicit surrender and its dismemberment as a geopolitical catastrophe, “impossible to imagine” even while it was taking place.
In autumn 2008, the violence and intensity of the war in Georgia were, according to Robert Gates, “eye openers” that demanded “a different set of lenses.” “Russia’s behaviour,” he announced, “has called into question the entire premise of our [strategic] dialogue and has profound implications for our security relationship going forward – both bilaterally and with NATO.” On the whole, though, he ignored his own warnings, which were not heeded by either by the two presidents he served as Secretary of Defence. On the contrary, a newly-elected Barack Obama soon sought a reappraisal, or reset, of U.S.-Russian relations, as if to make amends. Now however, Putin’s will to re-adjudicate the verdict of History restores a sense of conflict that can no longer be ignored by those he charges with having “not simply robbed” but altogether “plundered” his country.
The confrontation between the West and Russia in the spring of 2014 is no more about Ukraine than the 2008 war in Georgia was just about Georgia. Neither of these countries is a core American interest, and the EU states have shown little interest in bringing either into their Union any time soon. Ukraine and Georgia before have been crises for Russia more than for the West, and what has made of “their” crisis “our” problem is Russian behaviour that in each case has threatened the European institutional and territorial order built up over the past 60 years. From the start, though, Putin was not discreet about his intentions – how he viewed Russia and what he thought of the West. “A proud man who loves his country,” nevertheless felt George W. Bush, deceptively moved by a “sense of Putin’s soul.” In his first major speech after Putin returned to the presidency which he had for a while loaned to Dmitri Medvedev, Putin urged the Russians “not to lose themselves as a nation” and to reject the “standards imposed on us from outside” at the expense of “our traditions.” In a dubious replica of Ronald Reagan 20 years earlier, the Russian president unveiled an “evil empire” – a U.S.-led, post-Christian Western world said to be exporting godlessness, permissiveness, and moral depravity. Unlike Mikhail Gorbachev, Putin does not want a common home with Europe, but hopes instead to build one of his own: No longer Russia in Europe or even Europe with Russia, but Europe to Russia and even, at least for the post-Soviet space, Europe in Russia.
Why Nikita Khrushchev chose in 1954 to return Crimea to the Soviet Republic of Ukraine is more puzzling than Putin’s decision to return it to Russia. A proletarian intellectual who goes to the geopolitical barricades to fight for what he believes more than for what he knows, Putin echoes Nikolai Danilovsky, whose brand of Russian nationalism nurtured Fyodor Dostoyevsky’s belief in a “Great Russian hegemony” dedicated to “a great renewal … for the whole world” which, wrote Dostoyevsky, was endangered by a Western civilisation whose invasion “begins with luxury, fashions, scholarship, and art – and inevitably ends in sodomy and universal corruption.” That same conviction makes of Putin a gambler prepared to bet heavily on a doctrine of imposed self-determination for what he claims is, “the biggest ethnic group in the world to be divided by borders.”
Nor is the renewed confrontation between Russia and the West about more recent but no less spurious analogies. Comparing Putin to Hitler, and interpreting his discourse as a translated rendition of Mein Kampf, is no more constructive than comparing Nazi Germany to post-Soviet Russia. Tantamount to assimilating spring 2014 with autumn 1938, the analogy is hardly relevant when the Western democracies today show so little interest in waging the war against Russia that they should arguably have favoured in the 1930s over appeasement. History does not grant time outs for the replay of bad calls. Similarly, evoking a new Cold War with Russia is to return to March 1948, and call for the rollback that the United Sates might have favoured over the containment that the influential commentator Walter Lippmann at first dismissed as a “strategic monstrosity.” Get real: conditions with Ukraine are not comparable to those that prevailed in Munich, or on the eve of the coup in Czechoslovakia; Putin is no more a menacing reminder of Hitler or Stalin than Obama is a reincarnation of Neville Chamberlain or Franklin D. Roosevelt.
“There will be costs for any military intervention,” warned President Obama in February 2014, on the eve of the Russian annexation of Crimea. But pray tell: what was there for Putin to fear after he had witnessed a year earlier Obama’s reluctance to enforce his own “red lines” in Syria with John Kerry himself calling their threatened strike “unbelievably small”? There has been little Obama could do relative to how much Putin can take, in Ukraine and even some of the non-NATO territorial space in Europe. After the military option has been taken off the table, what’s left is pontification – about being on the wrong side of history, as Obama put it – to deter an adversary whose sense of history goes the opposite way.
“Not to rush to judgment,” advised veteran American diplomat George Kennan after the breakup of the Soviet Union in 1991, and “not to write off the Russians and their leaders. Patience, patience – that’s what we need.” That may well be sound advice, but for how long and how far? There is a long game to be played: don’t provoke Russia and its leaders with empty threats, to be sure, but don’t indulge Russia and its people with too much “understanding” either. Let it be stated once and for all: History does not owe Russia the apologies it owes Ukraine and other territorial pieces of Europe’s tragic geography of pain. That is the area where can still be heard the silenced sounds of war, and where can best be smelled the worst odours of death. As historian Timothy Snyder has noted, more Ukrainians were killed fighting Nazi Germany than American, British, and French soldiers combined – not to mention the millions who had been starved to death by Stalin before the war. The history of Russia has been written by what it did to its people and in the lands of its neighbours rather than the other way around.
In short, the Russian government does what it does because Russia is what it is: a country unable to imagine life without empire, and unprepared to populate its new democracy with truly democratic leaders. The annexation of Crimea was not just Putin’s way of showing Obama his manhood, rather it is a renewed bid to fulfill the idea the Russians have of themselves and of Europe. Russians may not like all that their president does, but over 80% of them approve his action. Meanwhile, Obama satisfies the broad preference of Americans who wish to do less in the world, but his foreign policy approval rating shows support from fewer than one person in three. It is as if there was public embarrassment and even some shame relative to the way in which Americans as a nation like to think of themselves.
You know where to begin, noted Kennan on more than one occasion, but often ignore where you’re going to end. So it was after the Treaty of Versailles in 1919, and with the division of Germany in 1949, and since the disintegration of the Soviet Union in 1991. First Georgia, and since then with Crimea and Ukraine, Putin started “something” – but what? Does he know where he is going? In the same vein, Obama has shown he knows how to stand up to the so-called swaggerers – but will he also know where to stand up, and for what? This is Kennan turned inside out: knowing how it will end because of the limits of Russian power may actually be easier than knowing where to begin. War is no longer the way of history, but how do you bring along those whose own history takes them another way?
Over 40 years ago, President Richard M. Nixon hoped to put in place a strategy that would calibrate interests and capabilities. Knowing “when it makes a real difference and is considered in our interest” was not easy then, with a surge of Soviet power and the rise of “new influentials” which Nixon viewed as the introduction of a new multipolar order. America, he pledged, “cannot – and will not – conceive all the plans, design all the programs, execute all the decisions and undertake all the defence of the free nations of the world.” Now as then, Obama’s foreign policy reticence is shared by a majority of Americans who want “to come home.” But also like them, it is a source of concern for a large number of America’s closest allies in need of strategic reassurance. The irony is plain for all to see. Ten years after the fiasco in Iraq, the global demand for American power has never been higher, but its credibility rarely lower and its reliability more in doubt.
To convince its friends, a preponderant power must be right; to tame its enemies it must be strong; to do both, it must inspire trust. All too often Obama has appeared to do the reverse – at best, right for what he said but weak for what he did and ineffective in the way he did it. By his own account, comfortable with complexity – “the big things” as Bill Clinton noted – Obama can easily win an argument, but a lack of attention to what follows often leaves his exchanges with adversaries unheard, his reassurances not implemented, and his likeable personality not trusted. In any case, this, too, is not just about Obama but, more broadly, about a post-American world. Long past the Cold War, and possibly past America’s prime too, this is not a world an emerging post-Western America understands well: every power a potential ally but every partner a possible adversary, depending on needs and urgency; every judge a penitent and every penitent a judge, depending on the case and the moment – Kosovo and Crimea, Iraq and Syria, Moscow’s Afghanistan and Washington’s Afghanistan, and so forth.
Obama did not originate this world – one in which the dwindling U.S. supply of security for growing world demand since the Cold War, comes together with a reduced world supply of security for rising American demand since 9/11. Nor did Obama “lose” Putin or “betray” Crimea any more than Roosevelt betrayed Eastern Europe at Yalta and Truman lost to Stalin at Potsdam. Still, there has been too much loose talk in the United States about rebalancing, to Asia or elsewhere; too much ill-timed talk of a reset, with Russia or others; too much vacuous talk, about leadership from behind and too much dismissive talk about the EU and its leaders or about Putin and his leadership. Words can impress momentarily for their elegance, but they matter more durably for their substance. Admittedly, Putin is not in Obama’s intellectual league, but more plainly, he can nonetheless hammer home his points the old fashioned way – with the domineering Slavic idea of a strong and united Russia.
After World War II, the strategy of containment was embraced as a third way between appeasement and war, the two options that had been pursued by the Western democracies during the interwar years – the former to avoid the latter until the latter grew irresistibly out of the former. Fears that containment was too passive and could not rollback Soviet advances were proved wrong, and whether a different strategy would have achieved rollback faster seems unlikely. What is now known is that after some initial geopolitical confusion, the Soviets were stopped until they ran out of time, and the United States was careful to look elsewhere whenever the Soviets used force to control their half of Europe, in Hungary and elsewhere. With war on behalf of any non-NATO or non-EU country now largely ruled out in the West, Russia’s renewed passion for empire must be denied with a firm yet prudent narrative similar to that of President Truman in March 1947.
How best to assist Ukraine begins with the plaintive recognition that little can now be done to keep the country entirely whole, or even free. Twenty years of Western neglect stand in the way of the former goal, and centuries of territorial and cultural intimacy with Russia constrain the latter. The echoes of past calls for the early “liberation” of Eastern Europe during the Cold War still resonate. “What are you proposing to do,” John Foster Dulles was asked when Secretary of State. And President Eisenhower answered at the start of the 1956 crisis in Hungary when he announced that “the day of liberation may be postponed where armed forces for a time make protest suicidal.”
What followed – a “holocaust,” wrote Eisenhower – should not be forgotten. But we must face the fact that Russia’s annexation of Crimea will not be reversed any time soon, if ever, and preventing further amputation is the best that can be expected. History still shapes Ukraine’s destiny – two peoples in a single country that urgently needs a new constitutional formula to if it is to maintain its unity. But geography, with borders shared by seven neighbours, also gives Ukraine pivotal significance for Russia and the West. Attempts by either to build Ukraine up as an outpost against the other will not go unanswered and would deepen a dangerous geopolitical fracture in the heart of Europe.
The 1955 neutralisation of Austria, concluded at a time when Moscow could have imposed partition, is an adaptable precedent. For 40 years after that, Austria was left out of the Western institutions, but the West was not kept far away from Austria. That time-out was well used, for Austria gradually became a non-member member of the European Community, thereby easing its transition to full EU membership shortly the end of the Cold War. By comparison, a quarter of a century of bad governments has made of Ukraine a failed state which the EU is unwilling to adopt and which Russia looks unable to rehabilitate. We should also consider Russia’s own condition – the state of its economy, the health of its society, and the efficacy of its own governance. Russia is back, admittedly, but not as Yeltsin had hoped: however influential it wants to be, this is a demandeur state whose staying power suffers from a lack of capabilities, including people; dwindling market power, including oil; and shrinking security space, with an expanding NATO in the West, while China grows ever stronger and more intrusive in the East and Islam more unsettled and even threatening in the South. These are the facts of geographic and economic vulnerability which Gorbachev understood when trade, mostly with Eastern Europe, amounted to less than 4% of the total Soviet economy. Now, Russia’s foreign trade represents 30% of GDP, with more than half of its exports going to the West, mostly to Europe and mainly consisting of oil and gas sales that contribute the major share of Moscow’s revenues. Add to this Russia’s need for Western capital for technology purchases and the question of who needs whom is clear. Even as the West lacks the military will to deter Putin in the short term, it has the economic power to alter Russia’s behavior before long.
When asked what he thought of Western civilisation, Gandhi reportedly answered that “it would be a good idea.” At 65 years of age, the transatlantic alliance, too, still looks as if it would be a good idea. The obstacle to putting the idea into practice is not a matter of capabilities or even commitment. Rather, what is lacking is the confidence that the capabilities will be used effectively and the commitment assumed evenly; absent such confidence, the will to act is lacking. For the European allies who have become used to relying on the United States for waging, winning, and ending their wars, the recent display of inefficacy in Iraq and Afghanistan is squarely un-American. But if not the United States, who? For Americans who have repeatedly urged Europe to do more, the institutional standstill since the 2008 financial crisis is increasingly exasperating. If Europe cannot be rendered capable as a Union, how can it be responsible for its own security?
These questions, and the expectations they raise, have surfaced many times before. Now, however, their resonance is being heightened not only by Russia’s resurgence in the East but also by Germany’s influence in the EU and America’s drift to Asia and other influential newcomers. In other words, the Western alliance is once again troubled by a Russian problem which the United States can no longer ignore, a German problem which the EU can no longer hide, and an American problem which NATO can no longer dilute. The balance of military forces appears to favour Russia more than ever before; rarely, too, has the balance of economic influence been as favourable to Germany as it is now and never has America sounded less European.
In all these cases, the dilemma is daunting. This is a surprising end to a century of total wars that were fought mostly around these two European superpowers and where there was decisive American leadership. Yet as the United States “pivots” to Asia, which it knows to be inevitable, it hopes for a Russia that is strong enough to not be tempted by China, but weak enough to not concern the EU. And it expects a Europe that is united enough to bury the past century with a fully completed union, but divided enough to depend on an American leadership that is still learning how to consult with, rather than merely inform its allies. Meanwhile, as Europe struggles with institutional questions that it knows to be indispensable, it awaits a Germany assertive enough to lead, but compliant enough to be overruled.
Back to Kennan, then: patience, patience – don’t provoke but indulge. What else? This is how the Cold War was won and half of Europe redone; this is how the other half of Europe will make the continent whole after it has been kept free. The strategic recipe hasn’t really changed much: To borrow from the quip of Lord Ismay, NATO’s first Secretary General, America is still very much “in”, and while Germany should no longer be kept “down” (now that the EU is up), Russia must be kept “out” until such time as it’s prepared to come in.
First published by the Europe’s World, article re-posted per author’s permission
Russia and Japan: Inseparable Partners
By all accounts, Japan with its strong economy and many high-quality manufactured brands is practically searching to expand into foreign markets. Japan, with an estimated population of 126 million, has a small territory. According to UN’s assessment report on global population in 2019, Japan was the world’s tenth-most populous country. That compared with Russia, its vast territory and approximately 145 million, Japan’s investment is fast growing in the Russian Federation.
Despite its large investment and admirable brands from automobiles through mega-shops to healthcare and beauty, and to social service sector, Japan is consistently looking to expand its business tentacles. Without doubt, at the St. Petersburg International Economic Forum held under the theme: “Together Again – Economy of New Reality” early June, Russia-Japan business session attracted unprecedented large number of participants.
While noting the fact that the coronavirus pandemic did not and will not hinder economic cooperation between Russia and Japan, Minister of Economic Development of the Russian Federation Maxim Reshetnikov, noted in his speech at the session, further reviewed some significant aspects of the Russia-Japanese economic cooperation, and finally painted the broad outlook for the future.
“Despite a difficult year, we managed not only to continue existing projects but were even able to launch new ones. An express test for coronavirus was created, and a container train with Japanese goods was launched for the first time on the Trans-Siberian Railway. Construction began on a centre for preventive medicine in Khabarovsk. The Japanese company Fanuc opened an engineering centre in Skolkovo,” he told the gathering.
According to Maxim Reshetnikov, the plans for cooperation with Japan include the creation of liquefied natural gas trans-shipment complexes in Kamchatka and Murmansk region and the construction of an ion therapy centre for cancer treatment in Obninsk. Both countries are preparing to enter new and promising tracks in hydrogen energy, climate change, the creative economy, and e-commerce.
That however, Russia has encouraged potential foreign investors to venture into the regions. For example, Kaluga, which is provincial city and stands on the famous Oka river about 150 kilometers southwest of Moscow, has adopted few favourable measures, among others, and as a result has attracted five foreign automobile manufacturing companies including Japanese Nissan.
Governor of the Kaluga Region Vladislav Shapshа took part in the discussion. “Japan has been and remains our most reliable partner, a partner in a variety of areas. In terms of investments, this of course includes, the development of projects with Mitsubishi and Toyota Tsusho. Mitsubishi has placed its headquarters in Kaluga this year, and together with Peugeot Citroën has been working with us since 2009. Along with Volkswagen and Volvo, it makes up the core of the automotive cluster, which accounts for 12% of the automobiles produced in the country today,” Governor Shapshа said, giving a full business profile in his region.
The Autonomous Republic of Tatarstan also attracts foreign investors and business people. As part of the Volga federal district, its capital and largest city is Kazan, one of the most important cultural cities in the Russian Federation. “We operate a wonderful plant built in Tatarstan by Mitsubishi and Sojitz. I must say that Japanese equipment has proved its reliability. We are very pleased with this plant. Its capacity is 720 thousand tonnes of ammonia and methanol. We are grateful for this contribution,” Founder and Chairman of the Board of Directors of the AEON Corporation, Roman Trotsenko.
Japanese manufacturing stories are exceptionally useful and needed to be shared among business leaders. In his contribution, General Director of Sollers Group Vadim Shvetsov told the attentive gathering: “We launched a machine shop for Mazda engine parts. It was a very difficult at first, given that cooperation was interrupted, and we could not communicate directly. On the other hand, however, we have introduced a lot of interesting digital communication methods. Thanks to such mobile cooperation and even VR technologies, we still managed to launch production.”
The new environment has pushed the countries to seek new resolutions to overcome challenges. “The coronavirus pandemic has forced us into many challenges. At the same time, it has highlighted, illuminated in a new way some of the problems that we had seen and been aware of even before the epidemic. These are the problems of healthcare, energy, and digitalization. It seems to me that now is the moment for us to start new cooperation in these areas, especially in healthcare,” emphasized the Minister of Economy, Trade and Industry of Japan Hiroshi Kajiyama.
“Our trade and economic work together probably suffered a little from that period of forced isolation. Nevertheless, I certainly believe that the crisis is pushing us to search for new ways to create benefits for our consumers,” remarked Chairman of Delovaya Rossiya (Business Russia) and Chairman of the Board of the Group R-Pharm Alexey Repik.
The speakers have acknowledged that Russia and Japan face similar environmental challenges while developing economic cooperation. “Amid the growing trend of decarbonization, in October of last year, Japanese Prime Minister Yoshihide Suga announced a goal aimed at achieving carbon neutrality by 2050. Moreover, the goal is to reduce 2013 levels of greenhouse gas emissions by 46% by 2030. Achieving these targets will require that Japanese industry be heavily involved and adaptable,” according to President of the Japan Association for Trade with Russia, and Special Advisor of Kawasaki Heavy Industries, Ltd. Shigeru Murayama.
Chairman of Delovaya Rossiya (Business Russia) and Chairman of the Board of the Group R-Pharm, Alexey Repik, reminded that it is of great significance that President Vladimir Putin in his address to the Federal Assembly set the task of significantly limiting the accumulated volume of carbon emissions in our country just as similar goals were set by the Prime Minister of Japan, Yoshihide Suga, for the Japanese economy.
For the Minister of Economy, Trade and Industry of Japan Hiroshi Kajiyama, natural gas, which can reduce carbon emissions, is a very important resource, and Russia is a leader. Thus the unification of these Russian resources and the Asian market could be highly promising area for cooperation.
Russian business needs to attract investment. “The demand for equipment and the demand for capital both remain in Russia. Russia’s capitalism, in the positive sense of the word, is young and there is little national capital in the country. Interest rates on loans remain very high, and the requirements of the national bank, the Central Bank of the Russian Federation, to credit policy remain stringent,” observes Founder and Chairman of the Board of Directors of the AEON Corporation Roman Trotsenko.
“There are forecasts that the Russian economy will resume growth this year and ultimately grow by more than 3%. Japan also aims to recover as soon as possible from pandemic-related failure. For this, of course, the primary and first step to build a healthy and sustainable post-covid society across the globe, will be to work together with Russian partners on the basis of the eight-point plan,” Director of Mitsui and Co. Ltd., Masami Iijima, informed the gathering.
Avoiding sanction-related restrictions is a key for business. “The challenge is to move the financing relationship between Japan and Russia outside of these sanctions. For example, financing in euros or in yen. This would be very positive and would allow us to take advantage of the cheap rates on loans in Japan and in Russia,” Founder and Chairman of the Board of Directors of the AEON Corporation Roman Trotsenko.
Healthcare and energy partnership also remain significant for both and, need not be overlooked. “New areas are emerging. For us it is hydrogen and ammonia; it is the capture and storage of carbon, carbon dioxide, and its use as a resource. Here, it seems to me, we must increase our work together,” according the Minister of Economy, Trade and Industry of Japan Hiroshi Kajiyama.
“The health sector is the first item in the eight-point economic cooperation plan. I think that our countries should increase cooperation in this area,” added the President of the Japan Association for Trade with Russia and Special Advisor of Kawasaki Heavy Industries, Ltd. Shigeru Murayama.
“We believe that Japan can help achieve the goal of increasing healthy life expectancy set by the government of the Russian Federation,” suggested Chairman of the Japan-Russian Committee for Economic Cooperation and the Federation of Economic Organisations Keidanren and Chairman of the Board of Directors of the Marubeni Corporation Fumiya Kokubu.
Ahead of St Petersburg forum, Japanese Ambassador in the Russian Federation, Toyohisa Kozuki gave an interview to Interfax News Agency, listed a wide-range of concrete and significant projects as part of efforts toward strengthening Russian-Japanese economic cooperation. According to the ambassador, widening economic cooperation between Japan and Russia is primarily part of the current eight-point strategic cooperation plan.
Within this plan, the Okura Hotel project in Vladivostok is an example of progress in urban development in 2020. This will be the first Japanese hotel in Russia. The Okura Hotel’s refined services will make Vladivostok more comfortable and accessible not only to its residents but also businessmen and tourists visiting this international city. Vladivostok catches the attention of the Japanese as the nearest ‘European’ city, it can be reached from Tokyo by air in 2.5 hours. That is why the opening of the Hotel Okura Vladivostok will definitely make the city more attractive to Japanese tourists.
As part of cooperation, Japan is also making an effort to develop postal services in Russia, and some results in this sphere have already been reached, the efficiency of postal deliveries was increased thanks to the use of Japanese-made sorting machines at international postal exchange centers in Moscow. Cooperation between postal services of both countries is growing stronger also through the exploration of e-commerce opportunities on both sides. In the future, it is anticipated that a system will be in place, thanks to which Japanese consumers can order Russian goods online and the EMS postal service will deliver them to Japan.
In December 2020, Japanese entertainment center Round One, which brings together arcade games, bowling and other amusements, opened at the Yevropeisky shopping mall in Moscow. Round One is the most popular closed amusement parks chain in Japan. The new venue is a unique leisure venue for Moscow residents, in the sense, that they can get acquainted with Japanese culture without leaving their native city.
There is progress in promoting the use of the Trans-Siberian Railway as far as cooperation in the Far East, primarily in transport and infrastructure, is concerned. In particular, the Ministry of Land, Infrastructure, Transport and Tourism of Japan in cooperation with the Russian Railways is implementing a pilot project to promote the use of the Trans-Siberian Railway.
The first container train carrying cargo from Japan to Europe was dispatched in 2020. And those were not individual containers as before but a whole container train. This was done in the expectation that it will make it possible to ship freight more cost effectively compared to container transportation, and many Japanese companies showed an interest and took part in the pilot project.
The companies that participated in the pilot project said that against the backdrop of destabilized logistics between Japan and Europe amid the coronavirus pandemic, the use of the Trans-Siberian Railway can be seen as a third option in addition to sea and air transport.
As an example of such expectations, Ambassador Toyohisa Kozuki informed that Japan’s logistics company Toyo Trans started regular container shipping services with consolidated freight to Europe, to the Polish city of Poznan, along the Trans-Siberian Railway in February. This service provides for regular shipments every Thursday from a Japanese port. The cargo reaches Poznan in 22 days. Transit time decreases by about half compared to sea routes. We hope that the transit along the Trans-Siberian Railway will give a boost to logistics between Japan, Russia and Europe and lead to the further development of economic cooperation.
Next, regarding agriculture, forestry and fisheries, the relevant agencies of Japan and Russia in January 2020 signed a memorandum of cooperation on a joint Japanese-Russian project to increase the efficiency of agriculture and fish production in Russia’s Far East. Current projects are now getting support, and the search is on for new projects in three areas that provide for the use of technologies and know-how of Japanese private companies.
These include, firstly, increasing the productivity and export potential of soya, corn and other crops; secondly, expanding production of vegetables through expanding vegetable greenhouses in Yakutsk and other cities; and thirdly, increasing production and deliveries of fish and seafood inside and outside Russia. Greenhouse vegetable growing in Yakutsk is a particularly large project in this sphere. Greenhouses allowing fresh vegetables to be grown all year long in severe climates and permafrost have been built in the framework of this project. Construction began in 2016, it continued in 2020, and should be completed this year, 2021.
Due to the coronavirus pandemic, the forum this year was held, a combination of off-line and online format, with all epidemiological precautions observed. The Saint Petersburg International Economic Forum (SPIEF), often dubbed the Russian Davos, is the country’s main showcase for investors, attracting political and business leaders from around the world. The SPIEF is held annually, and since 2006 it has been held under the patronage and with the participation of the President of the Russian Federation.
Putin and Biden meeting – a chance for a better world
The whole world is looking forward to the meeting of the new US President Joe Biden with his Russian counterpart, Vladimir Putin. Although the Kremlin and the White House urge people not to expect too much from the June 16 summit, one still wants to believe that a personal meeting by the leaders of the two rival powers will lead to a thaw in bilateral relations and help defuse global tensions. At the same time, statements coming from the White House about negotiation plans sound rather vague. The bottom line is about “understanding Russia’s position and its aspirations.” The impression is that hundreds of Russologists working for the State Department, NSA, CIA and other agencies are unable to provide a definitive answer to this question, and the not very young 46th President of the United States has been forced to personally go for information. Moscow makes it clear that negotiations are a good thing, but the initiative comes from the United States, so the agenda will largely be agreed right on the spot.
At the same time, there are a number of key topics that the leaders of the two countries simply can’t ignore. Of course, there will be questions about human rights that Biden wants to ask Putin so badly, but the Russian leader too may want to ask about certain “inconvenient” things. First of all, about the United States participation in conflicts in the Middle East, where the “liberation movements,” indirectly supported by Washington continue to attack Russian and Syrian government forces. In fact, the parts of Syria and Iraq controlled by the Americans and their allies have become areas where there is no effective conflict against terrorists. The militants from that area are killing people in Germany and France, and spreading the ideas of extremism and radical Islam throughout Europe.
The United States has every right to defend its interests in the oil-producing regions, but such methods are hardly acceptable. The Kremlin apparently has obtained enough evidence of the “dirty methods” of warfare practiced by the United States in the Middle East. The spare parts for the numerous drones shot down over the Khmeimim airbase alone prove beyond any doubt the American involvement in organizing aerial attacks on the Russian military. However, a dialogue between Russia and the United States could quickly extinguish the flames of war in Syria and, more importantly, help ensure Europe’s security against terrorist attacks. So, Putin has a very important trump card up his sleeve, which he can’t fail to play. The only question is how Biden will react to this win-win move by Moscow.
As to the question about human rights, it may prove rather unpleasant for Biden. During preparations for the summit, the Swiss government pointedly indicated (apparently at the suggestion of the White House) that the vaccine race continues. Geneva is ready to accredit, without PCR tests, journalists who have been vaccinated with Western vaccines, but not with Sputnik, which has already proven its effectiveness. Needless to say, the Russian negotiators also used their own country’s vaccine. However, such a move, designed to show once again who is the “boss” in the upcoming meeting, only reflects a complete disregard for the European`s right to vaccination, and this is only the beginning. And the demonstrative support and financing of the Russian opposition – hardly gives Biden any reason for accusing Russia of human rights violations.
Even the case of the Belarusian oppositionist Protasevich, who was taken from the plane which grounded in Minsk due to a terrorist threat immediately brings to mind the “arrest“ of the plane of Bolivian leader Morales, or the US-approved extrajudicial detention of Russian sociologist Shugalei in Libya. In addition, the long history of the Guantanamo detention center hardly gives US officials any moral grounds to lecture anyone about human rights.
If, during the Geneva summit the United States and Russia can heal the festering wound of the Middle East conflict, this would be a giant step forward in the war on terror. The question is whether Biden will try to turn the dialogue with Putin into a series of accusations to increase his approval rating back home. A similar incident has already taken place and made the 46th President of the United States to look not so good. That being said, we can hope that in Geneva Joe Biden will lean back on his many years of experience and good knowledge of Russia, and emotions will not prevent him from achieving a breakthrough in relations with Moscow and mending bilateral ties, thus easing tensions in Europe and allaying peoples fear of a new global conflict.
Russia, Europe Discuss Prospects for Cooperation at SPIEF’21
Despite the deep-seated disagreements between Russia and the European Union, Kremlin is indiscriminately courting European business leaders. Ahead of the 24th St. Petersburg International Economic Forum [SPIEF’21] on June 2-5, President Vladimir Putin, in an official message, emphasized Moscow would forge a closer economic cooperation with its foreign partners and ready to share experience in various areas and further called for building constructive partnerships between members of the global community and expand business ties to effectively tackle the current critical global challenges and achieve sustainable development.
“We are ready to share our experience in areas such as healthcare and digitalization, and to work with partners to build better telecommunications, energy, and transport infrastructure. We also recognize the importance of addressing key issues facing the environment and climate,” according to the president’s message released on the official website.
Later at the plenary session held under the theme A Collective Reckoning of the New Global Economic Reality, Putin said, particularly about energy connectivity between Russia and Europe – “that Gazprom is ready to fill Nord Stream 2 with gas. This route will create direct links between the Russian and German systems and will ensure energy security and reliable gas supplies for the Europeans, like Nord Stream 1” and, in addition, emphasized readiness to implement similar high-tech projects with European and other partners in the future, despite all sorts of artificial barriers in the current political environment.
That, however, during the business discussion exclusively devoted to Russia-Europe, leaders of European business noted that strategies are needed for the improvement of relations between Russia and the European Union, and the necessity to develop a consolidated response to global challenges.
“In 2020, Russia faced four challenges. First, the pandemic, second, the collapse of oil prices, third, the devaluation of the Russian local currency the rouble, and the fourth, which is an ongoing challenge, the geopolitical context that does not make things easier. At the same time, Russia demonstrated good economic indicators. The global challenges are so disruptive that we need to come up with a joint approach and cooperate in fighting the pandemic,” according to objective views of Johan Vanderplaetse, Chairman of the Association of European Businesses (AEB) and President for Russia and the CIS, Schneider Electric.
Taking his turn during the discussions, Maksim Reshetnikov, Minister of Economic Development of the Russian Federation explained that the ultimate goal is to combat greenhouse gas emissions. In this context, technological neutrality, mutual recognition, and implementation of projects aimed to reduce carbon dioxide emissions are crucial. Building these mechanisms is a subject for strong international discussion, and there are high hopes for the climate conference in Glasgow this November.
Development of 5G networks can become a new touch point for Russia and Europe. But, no country, and no government can cope with all the tasks on their own. For example, 5G requires joint efforts, so European Union and Russia must work together to deploy this technology. Now both need to work together on 5G technologies in Russia and in Europe, suggested Arun Bansal, Executive Vice-president, Head of Market Area Europe and Latin America, Ericsson.
“Russia has amazing technological capabilities, and there are great companies. If we compare them with Western companies, if we join forces [connecting to 5G], we will all benefit from this,” added Johan Vanderplaetse, Chairman, Association of European Businesses.
During the discussions, the participants acknowledged that existing problems, especially the need to achieve international agreements. “We are now probably at the most difficult point in the development of our relations since the end of the Cold War. I think both sides value our relationship. Why are we at this negative point in our development? Of course, there are territorial and geopolitical issues, issues of human rights violations. I believe that all these problems contributed to the suspension of our political dialogue, which is now affected by uncertainty. In this atmosphere it is difficult to go back to the normalization of these relations,” according to Markus Ederer, Ambassador of the European Union to the Russian Federation.
Vladimir Chizhov, Ambassador Extraordinary and Plenipotentiary, Permanent Representative of the Russian Federation to the European Union (EU) explained that most of the effective formats available for the members of the European Union and the Russian Federation for interaction are currently on hold. On the other hand, Russia has not closed a single door neither has it imposed restrictions for Europe. All suspensions were initiated by the European Union.
Some believe that there should be solutions, suggested expanding the list of green projects and finding a compromise between government and business. “We categorized nuclear energy as a green project, and this was a crucial decision. We believe that, based on the criterion of greenhouse gas emissions, based on the principles of technological neutrality, nuclear power should be seen as clean energy. And secondly, we have developed a number of transitional projects that may not meet some highest standards, but for many industries in our country this is a big step forward,” says Maksim Reshetnikov, Minister of Economic Development of the Russian Federation.
For Markus Ederer, Ambassador of the European Union to the Russian Federation, it is necessary to use the opportunity to strengthen relationship in the context of green transformation and creation of green economy, as it will be a new field for cooperation that is of high interest for representatives of European business community. The more policy becomes oriented towards the development of a green economy, the more seriously moving towards stabilizing relations between Russia and Europe.
Regional experiments that allow to introduce a system of emission quotas in the regions. “We are working on a soft regulatory framework that will allow us to implement climate projects, take into account the carbon footprint of products that will make our entire system more transparent, while at the same time we are launching a system of more stringent regulation based on regional experiments. Many countries have followed this path. We are currently in the final stage of the Sakhalin experiment, which will enable individual regions, at their will and in agreement with the business, to declare the goal of carbon neutrality and introduce a system of emission quotas with the trading system, and so on,” stressed Maksim Reshetnikov, Minister of Economic Development of the Russian Federation.
“We need to focus on reducing carbon emissions and strengthening other areas. The Sakhalin project is also a great example of enhancing our cooperation, including in the future. These are efforts that we should focus on, excluding the political context. We must work on issues of compliance with the obligations of WTO member countries. The obligations of all WTO members must correspond,” concluded Markus Ederer, Ambassador of the European Union to the Russian Federation.
The St. Petersburg International Economic Forum, popularly referred to as SPIEF, brings together international business leaders, government officials and representatives of expert and media communities to discuss various topics and jointly search for effective solutions to the most pressing challenges in Russian and global economies. The SPIEF is held annually, and since 2006 it has been held under the patronage and with the participation of the President of the Russian Federation.
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