Early January, Russia and four other ex-Soviet republics completed finally the creation of a new economic alliance intended to bolster their integration. The Eurasian Economic Union or popularly referred to as EAEU, which includes Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan, came into existence on January 1, 2015.
It is expected that Kyrgyzstan will become a full-fledged member from May 1, 2015. In addition to free trade, it’s to coordinate the members’ financial systems and regulate their industrial and agricultural policies along with labor markets and transportation networks.
Russia’s changing economic identity with its neighbouring ex-Soviet republics, Armenia, Belarus and Kazakhstan has opened business and economic opportunities despite the inherent teething problems associated with its creation. For instance, President Vladimir Putin said that the new union will have a combined economic output of $4.5 trillion and bring together 170 million people which means a huge potential market for business. “The Eurasian integration is based on mutual benefit and taking into account mutual interests,” Putin said after business talks with his colleagues in the Kremlin.
Some experts say the union members will benefit largely members and other foreign countries if the emerging opportunities are exploited strategically, while other analysts have explained in an email to Buziness Africa that foreign countries such European countries and Asian states, expecially all three major powers of Asia – China, Japan and India are ready to take their share of the new developments. But on the other hand, the experts interviewed for this story are, however, skeptical as to what extent African business leaders, investors and political elites will recognise, interprete and explore the profitability of the new geostrategic economic arrangement in the region.
The key question is who can benefit from EAEU. According to an official statement posted on Kremlin website on Decemebr 23, 2014, “there is growing interest in cooperating with the Eurasian Union among countries in other regions. Thus, the drafting of a free trade agreement with Vietnam has entered its final stage. We are working on similar agreements with Turkey, India and Israel.”
In addition, the Eurasian Economic Commission (EAEC) press office explained in an email query to Buziness Africa media that foreign countries interested in cooperation with the Union have to apply to the EAEC and if all the necessary conditions fit both parties, the consultations about one of the forms of cooperation (e.g. Free Trade Agreement) could be started.
The press office cited in the report sent by email to Buziness Africa that “EAEC has negotiations with Vietnam about Free Trade Agreement. At this time, we have eighth round of negotiations, that were dedicated to existing provisions of the future agreement. The parties believe that they manage to reach a fair balance of benefits for the both of them and provide for necessary tools that would mitigate the risks for entrepreneurs. But the work is not over yet, the remaining issues will be solved in further consultations.”
According to media reports, East African Community (EAC) countries could soon be able to export tea, coffee and horticultural products to the Eurasian Economic Commission (EAEC) member states without going through Western Europe. According to the article based on official statement issued after a meeting by the EAC Ambassadors in the Russian Federation, this was one of the resolutions agreed on during a recent meeting between EAC ambassadors in the Russian Federation, “the meeting was aimed at learning about the EAEC integration process and development of the economic bloc with view of exploring business opportunities for EAC member states.”
EAC diplomats agreed that traders from the region pay custom taxes at only one entry point to the EAEC bloc to boost exports from East Africa. Once in effect, the EAEC bloc will represent a single economic market of 171 million people with a gross domestic product of $3 trillion. The East African Community (EAC) is a regional intergovernmental organisation of the Republics of Burundi, Kenya, Rwanda, the United Republic of Tanzania and the Republic of Uganda, with its headquarters in Arusha, Tanzania.
Last year, a high-powered delegation of officials from the Eurasian Economic Commission also visited South Africa to explore economic relations with SA and Africa broadly. Headed by Tatyana Valovaya, a member of the Board of the Commission responsible for Integration and Macroeconomics, the delegation held discussions with South African business representatives, political actors and academics on significant economic opportunities for South Africa and Africa.
This visit received no media reports or publicity but this does not mean that it was insignificant. The key questions are what is the potential for SA-Russia relations to be the springboard for relations with the whole of Eurasia generally or the Commission area particular? What would be the key drivers and pillars of such relations? What economic and trade potential lies is such relations? How should South Africa’s foreign policy and Russian foreign policy gurus be thinking through this development?
Egypt is one of Russia’s leading trade partners in the Arab world and may soon conclude an agreement to establish a free trade zone with the Eurasian Economic Union (EAEU), according to the Russia’s Chamber of Commerce and Industry. Experts argue that this will contribute to the revitalization of trading activities and develop deeper cooperation in a number of fields between Egypt and member countries of EAEU.
Victor Spasskiy, the director in charge of integration development, said there are initiatives to expand the bloc to include Armenia and Kyrgyzstan. Local business people were encouraged to take advantage of the immense opportunities in the bloc to develop new business ties with the EAEU business community. Possible exports from EAEC include natural resources, human capital, technology in manufacturing industry and farming machinery.
Some experts are skeptical pointing to the teething problems including differences in approach to varying issues in the region. The creation of the Eurasian Economic Union parallels two deepening interrelated crises: the growing rift between Russia and the West over the conflict in Ukraine and the looming economic crisis in Russia.
Since the beginning of 2014 the ruble lost almost half of its value and the inflation in Russia has exceeded 11%. Some of the member-states of the Eurasian Union (Belarus and Kazakhstan in particular) have been growing more and more ambivalent about Russia’s increasingly heavy-handed attempts to reassert its influence in the former Soviet spaces, according to views of Maxim Matusevich, director of the Russian and East European Studies program at Seton Hall University in New Jersey.
Historically, he maintained that African states have been exceptionally sensitive to any real or perceived efforts by “developed” nations to establish neocolonial control in their former zones of influence. And by a number of measures, Russia’s muscle-flexing in the so-called “near abroad” can be perceived as neocolonial.
“I wouldn’t be surprised if some African states responded to such aggressive expansionism with caution or even distaste. So far only Egypt, which under the new military leadership has grown closer to Putin’s regime, expressed any interest in possible closer ties with the EAEU. But there exist far more specific reasons, for which, I believe, the creation of the Eurasian Union will have little relevance for Africa,” the director said.
Matusevich pointed out: “The member-states of the union have little to no manufacturing output, the two pillars of the union (Russia and Kazakhstan) have economies almost entirely based on oil and gas exports. It is not clear what exactly they can offer to African nations, especially in the context of the deepening economic crisis in Russia. I expect that just like during the previous period of economic turmoil in the 1980s and 1990s Russia and some of its post-Soviet allies will cut down on their ties with Africa rather than expand them. Africa, in my opinion, has very little either to gain or to lose from the creation of the Eurasian Economic Union.”
In an address at the Supreme Eurasian Economic Council meeting in December 2014, Putin further explained that Memorandum of Understanding (MoUs) were drafted with ASEAN and Mercosur states. “I am certain that expanding ties with all countries and organisations both in the East and in the West on the basis of equality and mutual benefit meets the interests of our Union as well. There are great new challenges ahead of us. We are to ensure the stable and efficient functioning of the Eurasian Union and continue strengthening its institutional basis,” Putin said assertively.
Among the priorities is the need to make the Union more competitive and attractive for investors, to launch joint projects and create high-technology jobs in the oil and gas sector, in the metals and chemical industries, aviation, machine-building and the space industry. In addition, to remove the existing barriers that impede the free movement of goods, services, capital and labour, and to implement plans to form as of 2016 a common market of pharmaceutical and medical products.
Putin added: “We will also approve a list of services sectors where the common market will become functional on January 1, 2015. This will benefit construction workers, wholesale and retail traders and companies working in tourism. It is important that we do not drag our feet with the mutual approval of licences for these activities issued by our respective countries. This will make it possible for our companies to take full advantage of the benefits of integration right from the start.”
The Treaty on the establishment of the Eurasian Economic Union was signed by the presidents of Russia, Belarus and Kazakhstan on May 29, 2014 in Astana. The agreement is the basic document defining the accords between Russia, Belarus and Kazakhstan for creating the Eurasian Economic Union for the free movement of goods, services, capital and workforce and conducting coordinated, agreed or common policies in key sectors of the economy, such as energy, industry, agriculture and transport. The agreement stipulates the transition of Russia, Belarus and Kazakhstan to the next stage of integration after the Customs Union and the common economic space.
Pragmatic Proposals to Optimize Russia’s Pledged Rehabilitation of Ethiopia
Russian Ambassador to Ethiopia Evgeny Terekhin pledged that his homeland will help rehabilitate his hosts after getting a clearer understanding of the full extent of the damage that the terrorist-designated Tigray People’s Liberation Front (TPLF) inflicted on the northern part of the country throughout the course of its approximately half-year-long occupation of the Afar and Amhara Regions. China’s Xinhua recently cited official Ethiopian government statistics about this which claim that the Amhara Region suffered damages upwards of approximately $5.7 billion.
According to their data, the TPLF partially or fully damaged 1,466 health facilities and vandalized water, electricity, and transport infrastructure. 1.9 million children are out of school in that region after more than 4,000 schools were damaged by the group. Over 1.8 million people were displaced from the Afar and Amhara Regions while 8.3 million there are suffering from food insecurity. The scale of this humanitarian crisis is massive and the direct result of the US-led West’s Hybrid War on Ethiopia that was waged to punish the country for its balanced foreign policy between the US and China.
It’s here where Russia can rely on its recent experiences in helping to rehabilitate Syria and the Central African Republic (CAR) in order to optimize its pledged rehabilitation of Ethiopian. Those two countries are much more war-torn than Ethiopia is, the latter of which only saw fighting in its northern regions instead of the entirety of its territory like the prior two did. The most urgent task is to ensure security in the liberated areas, which can be advanced by summer 2021’s military cooperation agreement between Russia and Ethiopia.
This pact could potentially see Russia sharing more details of its earlier mentioned experiences in order to enhance the Ethiopian National Defense Force’s (ENDF) security and stabilization operations in the northern part of the country. Syria and the CAR survived very intense Hybrid Wars that utilized cutting-edge military tactics and strategies against them similar to those that were subsequently directed against Ethiopia by the TPLF. It would help the ENDF to learn more about the challenges connected to ensuring security in areas that have been liberated from such contemporary Hybrid War forces.
The next order of business is to help the many victims of that country’s humanitarian crisis. Russia’s experience with assisting Syria in this respect, which suffered one of the world’s worst humanitarian crises in decades, can be of use to Ethiopia. This is especially the case when it comes to aiding its internally displaced people. Their immediate needs must be met and maintained, which might require urgent support from that country’s trusted partners such as Russia. Provisioning such in an effective and timely manner can also improve Russia’s international reputation too, especially among Africans.
Northern Ethiopia’s post-war rehabilitation must be comprehensive and sustainable. The country’s Medemer philosophy — which has been translated as “coming together” – will form the basis of these efforts. Prime Minister Abiy Ahmed touched upon this in his 2019 Nobel Peace Prize speech and his book of the same name that was released earlier that year. Its English translation hasn’t yet been published but Medemer was explained at length by high-level Ethiopian officials during an early 2020 US Institute of Peace panel talk and in Ethiopian writer Linda Yohannes’ insightful book review.
An oversimplification of it in the economic context is that Medemer preaches the need for comprehensive, inclusive, and sustainable growth through public-private and other partnerships that bring prosperity to all of its people, which in turn strengthens socio-political relations between them. It seeks to apply positive aspects of foreign models while avoiding the bad ones. The Medemer mentality aspires to balance cooperation with competition, constantly improving itself as needed, in order to synchronize and synergize Ethiopia’s natural economic advantages in people, location, and resources.
In practice, this could see Russian public and private companies partnering with Ethiopia’s primarily public ones to rehabilitate the northern regions’ damaged infrastructure. Since sustainable growth is one of Medemer’s key concepts, the country’s Russian partners could also train more laborers, social workers, teachers, and doctors throughout the course of these projects while offering scholarships to some internally displaced youth for example. In that way, Russia and Ethiopia could truly embody the Medemer spirit by literally bringing their people closer together as a result of these noble efforts.
All the while, Russia’s international media flagships of RT and Sputnik should be active on the ground documenting the entire experience. The immense influence that Moscow has in shaping global perceptions can be put to positive use in exposing the foreign-backed TPLF’s countless crimes against humanity in northern Ethiopia. This can powerfully counteract the US-led West’s information warfare campaign against its government, which misportrays the TPLF as innocent victims of the “genocidal” ENDF, exactly as similar Russian media efforts have done in debunking Western lies against Syria.
The world wouldn’t only benefit by learning more about the US-led West’s lies against Ethiopia, but also in seeing how effectively Russia is working to reverse the damage that their TPLF proxies inflicted in the northern part of that country. Russia is also a victim of their information warfare campaign, which misportrays the Kremlin as a dangerous and irresponsible international actor. The truth, however, is that Russia is a peaceful and responsible international actor that has a documented track record of cleaning up the West’s Hybrid War messes in Syria, the CAR, and prospectively soon even Ethiopia too.
Upon taking the lead in rehabilitating northern Ethiopia, Russia should diversify the stakeholders in that country’s prosperity in coordination with its hosts. It’s in Ethiopia’s interests as well to receive assistance from as many responsible and trusted partners as possible. Russia can help by requesting that relevant aid and multilateral rehabilitation efforts be placed on the agenda of the proposed heads of state meeting between the Russian, Indian, and Chinese (RIC) leaders that presidential aide Yury Ushakov said was discussed for early 2022 during President Putin’s latest video call with President Xi in December.
The RIC countries stood with in solidarity with Ethiopia at the United Nations in the face of the US-led West’s subversive attempts to weaponize international law against it. They’re strong economies in their own right, not to mention through their cooperation via BRICS and the SCO, the latter organization of which also has anti-terrorist and other security dimensions. These two multipolar platforms could potentially be used to extend economic, financial, humanitarian, and security cooperation to their Ethiopian partner to complement bilateral and trilateral efforts in this respect.
Russia’s increasingly strategic ties with the United Arab Emirates (UAE) could also lead to Moscow working more closely with Abu Dhabi on related rehabilitation matters with their shared partners in Addis Ababa. Observers shouldn’t forget that Crown Prince Mohammed Bin Zayed (MBZ) played a crucial role in brokering peace between Ethiopia and Eritrea in 2018. He even awarded their leaders his country’s highest civil honor when they both visited the UAE that summer. Furthermore, Al Jazeera alleges that the UAE has maintained a humanitarian (and possibly even military) air bridge to Ethiopia.
Regardless of whether or not the military aspect of this reported bridge is true or not, there’s no denying that the UAE has emerged as a major stakeholder in Ethiopia’s success. It deposited $1 billion in Ethiopia’s central bank in summer 2018 as part of its $3 billion aid and investment pledge at the time. The UAE also plans to build an Eritrean-Ethiopian oil pipeline in order to help the latter export its newly tapped reserves in the southeast. Additionally, DP World signed a memorandum with Ethiopia in May 2021 to build a $1 billion trade and logistics corridor to separatist Somaliland’s Berbera port.
Considering the closeness of Emirati-Ethiopian relations, it would therefore be fitting for RIC to incorporate the UAE as an equal partner into any potential multilateral plan that those countries might come up with during their proposed heads of state summit sometime in early 2022. It enjoys excellent relations with all three of them so it’s a perfect fit for complementing their shared efforts. Plus, the UAE has the available capital needed to invest in high-quality, long-term, but sometimes very expensive infrastructure projects, which can ensure northern Ethiopia’s sustainable rehabilitation.
It’s pivotal for Russia to prioritize its pledged rehabilitation of Ethiopia ahead of the second triennial Russia-Africa Summit that’s expected to take place in October or November after fall 2019’s first-ever summit saw Russia return to Africa following a nearly three-decade-long hiatus. Coincidentally, Ethiopia requested last April to hold the next event in Addis Ababa. That would be a sensible choice since its capital city hosts the African Union headquarters, has sufficient infrastructure, and can serve most of the continent through its Ethiopian Airlines, which regularly wins awards as Africa’s best airline.
The interest that Ethiopian Ambassador to Russia Alemayehu Tegunu recently expressed in courting more Russian investment ahead of the next summit goes perfectly well with Russian Ambassador to Ethiopia Terekhin’s vow to heighten cooperation between those countries’ ruling parties. This in turn raises the chances that the present piece’s proposals could hopefully serve as the blueprint for beginning relevant discussions as soon as possible on Russia’s pledged rehabilitation of Ethiopia with a view towards achieving tangible successes ahead of the next Russia-Africa Summit.
That timing is so important since Russia mustn’t miss the opportunity to showcase its bespoke “Democratic Security” model in Ethiopia. This emerging concept refers to the comprehensive thwarting of Hybrid War threats through economic, informational, military, and other tactics and strategies such as the action plan that was proposed in the present piece. “Democratic Security” approaches vary by country as evidenced from the differing ones that Russia’s practicing in Syria and the CAR, but the concept could attract many more African partners if it’s successful in Ethiopia by next fall’s summit.
Russia must therefore do everything in its power to bring this best-case scenario about. Rehabilitating Ethiopia won’t just improve millions of lives, expose the war crimes committed by the US-led West’s TPLF proxies, and enable Russia to showcase its “Democratic Security” model to other African countries, but ensure that the continent’s historical fountainhead of anti-imperialism and pan-Africanism survives its existential struggle. Upon that happening, Ethiopia can then serve to inspire a revival of these ideas all across Africa through its complementary Medemer concept and thus strengthen multipolarity.
From our partner RIAC
Decade of Sahel conflict leaves 2.5 million people displaced
The UN Refugee Agency (UNHCR) called on Friday for concerted international action to end armed conflict in Africa’s central Sahel region, which has forced more than 2.5 million people to flee their homes in the last decade.
Speaking to journalists in Geneva, the agency’s spokesperson, Boris Cheshirkov, informed that internal displacement has increased tenfold since 2013, going from 217,000 to a staggering 2.1 million by late last year.
The number of refugees in Burkina Faso, Mali, and Niger now stands at 410,000, and the majority comes from Mali, where major civil conflict erupted in 2012, leading to a failed coup and an on-going extremist insurgency.
Increase in one year
Just last year, a surge in violent attacks across the region displaced nearly 500,000 people (figures for December still pending).
According to estimates from UN partners, armed groups carried out more than 800 deadly attacks in 2021.
This violence uprooted some 450,000 people within their countries and forced a further 36,000 to flee into a neighbouring country.
In Burkina Faso alone, the total number of Internally Displaced Persons (IDPs) rose to more than 1.5 million by the end of the year. Six in ten of the Sahel’s displaced are now from this country.
In Niger, the number of IDPs in the regions of Tillabéri and Tahoua has increased by 53 per cent in the last 12 months. In Mali, more than 400,000 people are displaced internally, representing a 30 per cent increase from the previous year.
Climate, humanitarian crisis
Meanwhile, the humanitarian situation is rapidly deteriorating with crises on multiple fronts.
Insecurity is the main driver, made worse by extreme poverty, and the COVID-19 pandemic. The effects of the climate crisis are also felt more strongly in the region, with temperatures rising 1.5 times faster than the global average.
Women and children are often the worst affected and disproportionately exposed to extreme vulnerability and the threat of gender-based violence.
According to the UNHCR spokesperson, “host communities have continued to show resilience and solidarity in welcoming displaced families, despite their own scant resources.”
He also said that Government authorities have demonstrated “unwavering commitment” to assisting the displaced, but they are now “buckling under increasing pressure.”
UNHCR and humanitarian partners face mounting challenges to deliver assistance, and continue to be the target of road attacks, ambushes, and carjacking.
In this context, the agency is calling on the international community to take “bold action and spare no effort” in supporting these countries.
UNHCR is also leading the joint efforts of UN agencies and NGOs to provide emergency shelter, manage displacement sites and deliver vital protection services, including combating gender-based violence and improving access to civil documentation.
In 2021, more than a third of the agency’s Central Sahel funding needs were unmet.
This year, to mount an effective response in Burkina Faso, Niger and Mali, the agency needs $307 million.
SADC extends its joint military mission in Mozambique
The Southern African Development Community (SADC) has collectively decided to extend its force mission mandate in Mozambique for three months to provide military support in fighting terrorism in Cabo Delgado, the northern seaside provincial district that suffered frequent militant attacks displacing thousands out of their homes.
The South African Mission in Mozambique (SAMIM), according to the final communiqué released after the leaders of the southern African countries gathered to review significant issues, among them the operations of the joint military force dispatched last year as attacks reached its greater heights to Mozambique.
Chairperson of the SADC’s Organ on Politics, Defense and Security and South African President, Cyril Ramaphosa told the gathering in Lilongwe, capital of Malawi, where the regional bloc held its extraordinary summit and reviewed progress in Mozambique, described SAMIM as highly successful in defeating the militant groups particularly in Cabo Delgado.
“I would like to express my appreciation and commend SAMIM for its work on the ground, as well as recognize the member states that have supported this work financially and in the deployment of military personnel and equipment,” the final report quoted Ramaphosa.
SADC cannot allow terrorism to spread to other provinces in Mozambique and to the region, and it is imperative to promote a spirit of unity among member countries as terrorism and violent extremism threaten the stability and development that the region has achieved over the past four decades, says the report.
The communiqué also approved the framework for support to Mozambique in addressing terrorism outlines, among others, comprehensive strategic actions for consolidating peace, security, and the socio-economic recovery of Cabo Delgado.
The Maputo daily Noticias wrote after the SADC summit that a budgetary allocation of US$29.5 million has been set aside for the three-month extension, after several years of high-level consultations and this would mean until at least mid-April. The SAMIM extension set from mid-January.
Addressing the opening session of the summit, the current SADC Chairperson, Malawian President Lazarus Chakwera, urged regional bloc member states to stick together and ensure that SAMIM remains multidimensional and comprehensive. He entreated SADC member countries not to relent, regress or even retreat on their commitments.
“What remains now is for us to stay the course and stick together. We cannot relent. We cannot regress. We cannot retreat. Our approach to this mission must continue to be multidimensional and comprehensive. It must not only focus on neutralizing the threat, but also have post-conflict plans to rebuild,” said Chakwera, added that the collective mission is paramount and the stakes for all the Member States are high because what they are fighting for is regional stability, and the sustainability of the quest for the bloc’s integration and socio-economic development.
Chakwera welcomed the comprehensive Cabo Delgado Reconstruction Plan launched by his Mozambican counterpart, Filipe Nyusi, and his government, which, among other issues, seeks to provide humanitarian support to the affected population, including internally displaced persons, and uplift their living standards.
Mozambican President Filipe Nyusi however expressed high optimism about the current military situation in Cabo Delgado. He said that all the bases from which the terrorists used to plan their actions are now in the hands of the Mozambican forces, and 2022 would be a decisive year to support the regional standby force in the final fight against terrorism in Mozambique.
For the Mozambican President Nyusi the extension of the SAMIM mission demonstrates the spirit of unity and solidarity that the Southern African Development Community members have readily and warmheartedly shown with the people of Mozambique.
Mozambique has grappled with an insurgency in its northernmost province of Cabo Delgado since 2017, but currently fast improving after the deployment of joint military force with the primary responsibility of ensuring peace and stability, and for restoring normalcy in Mozambique.
Mozambique has consistently maintained that all problems especially relating to conflicts and crises should be resolved largely based on the approaches of Africans, and of course with moral, political and material support from regional blocs such as SADC and the continental organization – African Union, and the involvement of United Nations with its UN Security Council.
With an approximate population of 30 million, Mozambique is endowed with rich and extensive natural resources but remains one of the poorest and most underdeveloped countries in the world. Mozambique is a member of the Southern Africa Development Community (SADC).
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