Last March, as Russia annexed Crimea, the European Union, Canada and the United States imposed sanctions – travel bans and asset freezes against some of the Russian and Ukrainian officials.
Although the sanctions targeted the people from president Putin’s “inner circle”, he was given the green light to further conduct of the aggressive politics in Ukraine – the West condemned Russia but rather cautiously. The Russians sprang forward to protect their embezzlers cursing Merkel and Obama for Russophobia.
The tragedy of MH-17 became the next turning point of the Russia’s relations with the West. The Western powers introduced new sanctions – this time against more of the Russian politicians and businessmen, as well as major banks and energy companies. Many countries cancelled official visits, cut the ongoing and scheduled programs of military, economic and cultural cooperation, and stopped the supplies of arms and dual-use goods. Putin, in his style, reacted promptly and without too much thinking of the consequences – foodstuffs from the EU, Norway, the US, Canada and Australia were banned.
The food embargo was advertised so well that people actually believed that they can do well without products they used to have for years just because Russia had to “answer” to the sanctions. However, the joy of revenge did not last long. The food embargo became a problem not only for Western producers but for Russians as well. Putin used his “food power” – he hit the sector where any changes are immediately visible, especially if market is not ready for an adequate response to the new challenges. Despite the severe economic crisis and tense relations with the West, the President’s rating has strengthened. Does it mean that Putin’s food policy is justified?
As the Russian government panned, European manufacturers are suffering huge losses because of the food embargo. Farmers from Germany, Poland, Lithuania, and the Netherlands – the Russia’s biggest food exporters – have lost hundreds of millions of euro in the last year. Many European producers had to find new ways to attract the attention of local customers. Poland, for example, launched a campaign «An apple a day keeps Putin away». Some of the farmers who used to export large amounts of their products to Russia focused on the new non-European markets. Also, the EU offered a partial compensation from the funds under the Common Agricultural Policy to those countries who have suffered the most due to the Russian embargo.
Europe stays divided over the sanctions. The Russian government undoubtedly knows how to use the situation. Those who oppose sanctions against Russia enjoy preferential treatment from the Kremlin. For example, it has recently announced the possibility of revision of the embargo conditions for Hungary, Cyprus and Greece.
For Greece Russia is the major agricultural importer– half of its stone fruit harvest was sold to Russians before the introduction of the food ban. Together with the pressures of economic crisis Greece felt quite a strong effect from the embargo. The ambitious Greek Prime Minister Alexis Tsipras has found a reliable and powerful partner – during their meeting Putin expressed support for Greece, as “the countries have spiritual relationship”. The Russian government claims that it may lift the food embargo for the Greeks.
At the same time, the food power has become a part of the Russian “hybrid war” against Ukraine. Last year Russia banned the imports of Ukrainian meat, dairy products, fruits and vegetables. Over the first quarter of 2015 the Ukrainian export to Russia has reduced by 60 percent. Russia used to be the largest buyer for the Ukrainians. They now have to redirect their production to the highly-competitive European markets.
Russian economy barely copes with the high inflation rates and capital outflows. Putin has challenged it even more – neither Russian producers nor customers were ready for the food ban. Russia remains heavily dependent on foreign products – it is the world’s fifth largest agricultural importer. In 2013, it bought foodstuffs worth 33 billion euro. Immediately after the western food was embargoed, consumer prices considerably increased. This caused a big confusion on the market – prices on both domestic and imported products were artificially raised. Stores have changed price tags every few days. But most of all the embargo affects northern regions of Russia. They are completely dependent on the imports of essential products – severe climate makes it impossible to grow crops and farm. Prices in these regions have jumped up to 60 percent on some products.
In 2014, ruble has depreciated by 40 percent. The food embargo introduced as a response to Western sanctions, has made a significant contribution to increasing of inflation and worsening of the social situation in Russia. The inflation rate for last year came to 16 percent, food prices rose by an average of 30 percent. Now, even if the most critical moment has passed, both Western sanctions and Russian counter-measures resulted in heavy economic losses and put pressure on social spending. The so-called “poverty level” increased – according to the latest official data, today about 23 million Russians fall below the poverty line. The purchasing power of citizens in Russia has lowered as well. According to the recent social surveys – two thirds of Russians consume fewer products and food of a lower quality.
Both federal and regional authorities have decided to “save” their budgets reducing expenses on the important sectors of the economy. For example, the government carried out the scandalous health care reform, which resulted in thousands of medical personnel unemployed. Also, part of pensions funds was spent on subsidies for Crimea, while military expenditure increased.
Russian authorities claim that food embargo favors the country’s agriculture development. A number of projects for import substitution have been announced. Indeed, in theory, it should stimulate the local producers and lower the prices. However, today Russian market does not have the necessary capacity to fully replace imported products. Import substitution will take at least 3-4 years, experts say. It is often difficult even to start a production – Russia imports not only end products but also technologies and means of production, such as seeds and fry.
The lack of competitive environment is not the only problem – the quality of the domestic products aimed to replace the western foodstuffs lags far behind European standards. For instance, Russian “mozzarella” and “camembert” that appeared in stores leaves much to be desired. Plus, the mandatory product certification was abolished in 2010, thus allowing low-quality products to freely enter the market.
For the majority of Russians it was quite hard to give up European and American food. After the introduction of the embargo market was flooded with contraband products. French cheeses from Kazakhstan and Norwegian salmon from Belarus are sold in stores and restaurants. As a result, those countries, enjoying the privilege of the free economic zone, made some money on supplying Russians with European products. Residents of the western regions of Russia began to massively buy European products in Finland and the Baltic States.
The Russian paradox
Three weeks ago, the EU foreign ministers decided to extend economic sanctions against Russia. The next day after the announcement Putin signed a decree on the “full” food embargo for one more year. This time the wider range of products is banned, for example, lactose-free milk. The Russian authorities also claim to consider the possibility to introduce other restrictions – such as ban of transit flights of the European and American airlines.
Kremlin is winning the information war – first of all in the eyes of the Russians. The country’s authorities were able not only to convince people to eat less but also to believe that it is the West to blame. According to the recent opinion polls, 87% of the population support the extension of the western food ban. Another interesting fact – there are more people believing that the embargo has significantly affected the economy of Western countries than those who think it contributes in development of the domestic agriculture. Here is the Russian paradox. We are happy to create inconvenience to others, even if it causes us to suffer.
The Emerging “Eastern Axis” and the Future of JCPOA
Iranian Foreign Ministry spokesperson, Saeed Khatibzadeh recently said that Tehran would further strengthen its ties with Moscow via a strategic partnership. Said Khatibzadeh ‘The initial arrangements of this document, entitled the Global Agreement for Cooperation between Iran and Russia, have been concluded’
This agreement will be similar in nature to the agreement signed by Iran with China in March 2021, dubbed as the strategic cooperation pact, which sought to enhance economic and strategic relations (China would invest 400 Billion USD in infrastructure and oil and gas sector while also strengthening security ties). Commenting on the same, Khatibzadeh also said that an ‘Eastern axis’ is emerging between Russia, Iran and China.
Closer ties with Russia are important from an economic, strategic point of view, and also to reduce Iran’s dependence upon China (many including Iran’s Foreign Minister had been critical of the 25 year agreement saying that it lacked transparency). Iranian Foreign Minister, Hossein Amir-Abdollahian on the eve of his Russia visit from October 5-6th, 2021 also stated that Iran while strengthening ties would not want to be excessively dependent upon either country.
Iranian Foreign Minister’s visit to Russia
Iranian Foreign Minister, Hossein Amirabdollahian during his Russia visit discussed a host of issues with his Russian counterpart, Sergey Lavrov including the current situation in Afghanistan, South Caucasus, Syria and the resumption of the Vienna negotiations.
Russia and Iran have been working closely on Afghanistan (on October 20, 2021 Russia is hosting talks involving China, India, Iran and Pakistan with the Taliban).
It is also important to bear in mind, that both Russia and Iran have flagged the non-inclusive nature of the Taliban Interim government. Russia has in fact categorically stated that recognition of Taliban was not on the table. Said the Russian Foreign Minister, Sergey Lavrov on the sidelines of the United Nations General Assembly, ‘the whole gamut of Afghan society — ethno-religious and political forces — so we are engaging in contacts, they are ongoing.’
China’s approach vis-à-vis Afghanistan
Here it would be pertinent to point out, that China’s stance vis-à-vis Afghanistan is not identical to that of Moscow and Tehran. Beijing while putting forward its concerns vis-à-vis the use of Afghan territory for terrorism and support to Uyghur separatist group East Turkestan Islamic Movement (ETIM), has repeatedly said that there should be no external interference, and that Afghanistan should be allowed to decide its future course. China has also spoken in favor of removal of sanctions against the Taliban, and also freeing the reserves of the Afghan Central Bank (estimated at well over 9 Billion USD), which had been frozen by the US after the takeover of Afghanistan by the Taliban.
If one were to look at the Joint Comprehensive Plan of Action JCPOA/Iran Nuclear deal, Russia has been urging Iran to get back to the Vienna negotiations on the one hand (these negotiations have been on hold since June), while also asking the US to return to its commitments, it had made under the JCPOA, and also put an end to restriction on Iran and its trading partners.
Conversation between US Secretary of State and Russian Foreign Minister
The important role of Russia is reiterated by the conversation between US Secretary of State Anthony Blinken with Russian Foreign Minister. Angela Merkel during her visit to Israel also made an important point that both China and Russia had an important role to play as far as getting Iran back on JCPOA is concerned. What is also interesting is that US has provided a waiver to the company building the Nord Stream 2 pipeline connecting Russia and Germany. The US has opposed the project, but the Department of State said waiving these sanctions was in US national interest. Both Germany and Russia welcomed this decision.
In conclusion, while there is no doubt that Russia may have moved closer to China in recent years, its stance on Afghanistan as well as it’s important role in the context of resumption of Vienna negotiations highlight the fact that Moscow is not keen to play second fiddle to Beijing. The Biden Administration in spite of its differences has been engaging closely with Moscow (a number of US analysts have been arguing for Washington to adopt a pragmatic approach vis-à-vis Russia and to avoid hyphenating Moscow with Beijing). In the given geopolitical landscape, Washington would not be particularly averse to Tehran moving closer to Russia. While the Iranian spokesperson, Saeed Khatibzadeh spoke about a Eastern axis emerging between Moscow, Tehran and Beijing, it would be pertinent to point out, that there are differences on a number of issues between Moscow and Beijing. The Russia-Iran relationship as well as US engagement with Russia on a number of important geopolitical issues underscores the pitfalls of viewing geopolitics from simplistic binaries.
New U.S. travel rules excludes foreigners vaccinated with Russia’s Sputnik V
Local and foreign media have stepped up reports about rising Covid-19 infections in Russia. While the reports also indicated high deaths in the country, other highligted new trends that are noticeably appearing. Interestingly, directors at the Russian tourism and travel agencies say that many Russians are lining up for vaccine tourism in Serbia, Bulgaria and Germany and a few other foreign countries.
These Russians aim at getting foreign vaccines including Pfizer, Moderna and Johnson & Johnson and AstraZeneca.
Here are a few facts about Russian vaccines.
Russia’s Sputnik V was the first officially registered coronavirus vaccine on August 11, 2020. Russia is using four vaccines for mass vaccination for Covid-19. These are Sputnik V and Sputnik Light developed by the Russian Health Ministry’s Gamaleya Center.
EpiVacCorona developed by the Vector Center of the Federal Service for Surveillance on Consumer Rights Protection and Human Wellbeing (Rospotrebnadzor), and CoviVac developed by the Chumakov Institute of the Russian Academy of Sciences.
Clinical trials of the EpiVacCorona vaccine on teens aged from 15 to 17 might begin in the near future.
China has 1.3 billion population and has given the two billionth vaccine by the end of August, the United State has 380 million and attained 60% of its population. In Europe, vaccination rate is highly at an appreciable level.
Overall, Russia with an estimated 146 million people has Europe’s highest death toll from the pandemic, nearly 210,000 people as at September 30, according to various authentic sources including the National Coronavirus Task Force.
More than 42 million Russians have received both components of a coronavirus vaccine, according to Russian Deputy Prime Minister Tatyana Golikova.
“The number of citizens who have received the first component of a vaccine has topped 44 million, and more than 37 million people have completed a full vaccination course,” Golikova said.
She gave an assurance back in July that once the population have been immunized with at least the first component of a two-shot vaccine, herd immunity to Covid-19, or at least an 80% vaccination rate, should be reached by November 1.
Reasons: Even though Russia boasted of creating the world’s first coronavirus vaccines, vaccination is very low. Critics have principally blamed a botched vaccine rollout and mixed messages the authorities have been sending about the outbreak.
In addition, coronavirus antibody tests are popular in Russia and some observers suggest this contributes to the low vaccination numbers.
Western health experts say the antibody tests are unreliable either for diagnosing Covid-19 or assessing immunity to it. The antibodies that these tests look for can only serve as evidence of a past infection. Scientists say it’s still unclear what level of antibodies indicates that a person has protection from the virus and for how long.
Russia has registered Sputnik V in more than 150 foreign countries. The World Health Organization is yet to register this vaccine. For its registration, it must necessarily pass through approved procedures, so far Russia has ignored them, according reports.
There have also been several debates after the World Health Organization paused its review process of the Sputnik V vaccine over concerns about its manufacturing process, and few other technical reasons. While some talked about politicizing the vaccine registration, other have faced facts of observing recognized international rules for certifying medical products as such vaccines.
During the first week of October, Russian Health Minister Mikhail Murashko has reiterated or repeated assertively that a certain package of documents were needed to continue the process for the approval of the Russian coronavirus vaccine Sputnik V by the World Health Organization. The final approval is expected towards the end of 2021.
Still some the problems with the registration as unfair competition in the global market. For instance, Russian Minister of Industry and Trade Denis Manturov said in an interview with the Rossiya-24 television channel on October 5: “I think it is an element of competition. Until Pfizer covers a certain part of the market, it is pure economics.”
On the other side, Pyotr Ilyichev, Director for International Organization at the Russian Foreign Affairs Ministry, told Interfax News Agency, for instance that World Health Organization has been playing politics around Russian vaccine especially when it is need in most parts of the world.
“The world is facing an acute shortage of vaccines for the novel coronavirus infection. In certain regions, for instance in African countries, less than 2% of the population has been vaccinated. The Russian vaccine is in demand, and the UN stands ready to buy it,” he told Interfax.
“However, certification in the WHO is a complex, multi-step process, which was developed in the past in line with Western countries’ standards. It requires time and serious efforts from our producers. We hope that this process will be successfully finalized in the near future,” Ilyichev said.
Chairman of the State Duma’s Foreign Affairs Committee Leonid Slutsky has described as discriminatory a decision reported by foreign media that the United States, under its new consular rules, would deny entry for foreigners immunized with the Russian Covid-19 vaccine Sputnik V.
“Thus, the U.S. will blatantly embark on a path of ‘vaccine discrimination.’ There are absolutely no grounds for such decisions. The efficacy and safety of the Sputnik V vaccine have been confirmed not only by specialists, but also by its use in practice,” Slutsky said on Telegram.
He cited an article in The Washington Post saying that from November the United States may begin denying entry to foreigners vaccinated with Sputnik V.
It means that if such additional border measures are adopted, foreigners seeking entry to the United States will have to be immunized with vaccines approved for use either by American authorities or the World Health Organization.
According to an article published in The Washington Post, for the first time since the pandemic began, the United States intends to loosen entry restrictions for foreigners vaccinated against Covid-19.
The new rules, which enter into force in November, will not apply to Russians vaccinated with Sputnik V and citizens of other countries using this Russian vaccine.
Under the new rules, foreigners will enter United States only if they are immunized with vaccines approved for use by the United States Food and Drug Administration or the World Health Organization. Russia’s Sputnik V is yet to be approved by the World Health Organization and is not recognized by the United States.
Should Russia Be Worried by the New AUKUS Alliance?
The establishment of a new trilateral military and political alliance consisting of the United States, Australia, and the UK (AUKUS) and the corollary rupture of France’s “contract of the century” to build a new generation of diesel-powered submarines for Australia elicited mixed reactions in Russia. Some were pleased to see a conflict arise between the United States and France, while some expressed concern that the alliance targets Moscow just as much as it does Beijing. Others were worried about the implications of the U.S. decision to share nuclear submarine technology with a non-nuclear state (instead of the French diesel submarines, Canberra will now get eight nuclear submarines).
These are valid points, but they all focus on the short-term consequences of the creation of AUKUS. Yet the decision to form a trilateral union and the new format of modernizing Australia’s underwater fleet will also have long-term implications, including for Russia.
Above all, the launch of AUKUS has confirmed that the standoff with China is indisputably the number one foreign policy priority for U.S. President Joe Biden and his administration. Standing up to China is apparently worth risking a serious fallout with Paris over, worth putting Canberra in an awkward position, and worth expanding the interpretation of nonproliferation. The fact is that it’s getting increasingly difficult for Washington to single-handedly compete with Beijing in the naval arena, especially in the eastern Pacific Ocean, so it has no choice but to lean on its most reliable partners while ignoring the inevitable costs.
Nuclear-powered submarines have only one indisputable advantage over modern diesel submarines: a greater operating range, thanks to their superior autonomy. If the new submarines were intended only to defend Australia, there would be no need for them to be nuclear. If, however, they are expected to perform covert operations over many months in more remote waters—in the Taiwan Strait, near the Korean Peninsula, or somewhere in the Arabian Sea—then a nuclear reactor would be a significant advantage.
For Russia, this means that any of its actions from now on will be viewed by Washington within the context of the U.S.-Chinese confrontation. The White House will, for example, turn a blind eye to Moscow’s cooperation with New Delhi and Hanoi on military technology, seeing it as a way to shore up the regional counterbalance to Beijing. Russia’s ongoing assistance with China’s naval modernization program, on the other hand, will be closely scrutinized and could become grounds for new U.S. sanctions against both countries.
There has been some speculation that AUKUS will, with time, become an Asian equivalent of NATO, with more countries joining, from Canada and New Zealand to Japan and South Korea, and eventually even India and Vietnam. These predictions have unsurprisingly elicited concern in Russia.
Yet they are unlikely to come true. Countries like South Korea and India have no desire to join a multilateral military alliance that could jeopardize their relations with other countries. In any case, the establishment of a new structure is in itself an indirect acknowledgement by Washington that the twentieth-century rigid model of alliances is not right for this century. If anything, AUKUS is an attempt to find a modern alternative to NATO.
It’s inevitable that the role of NATO in U.S. strategy will decrease, but that’s not necessarily in Russia’s long-term interests if it means the organization will be replaced with structures such as AUKUS. NATO has detailed and clearly articulated decisionmaking procedures and mechanisms for reaching compromises among its many members. Decisions made by NATO may be unpalatable for Moscow, but they are generally consistent and predictable. The same cannot be said of less heavyweight structures such as AUKUS, from which any number of improvised reactions could ensue, inevitably adding to the political risks.
The concept of AUKUS envisages that control of ocean lanes will continue to be a U.S. priority. The United States is not capable of establishing sufficient control over land transport corridors in Eurasia, nor does it need to do so: the main global cargo traffic routes will be maritime for the foreseeable future. For this reason, it is the world’s oceans rather than continental Eurasia that will be the main battleground between the United States and China.
For Russia, as a predominantly land power, that is overall a good thing—as long as Moscow doesn’t strive to position itself at the epicenter of the Chinese-American standoff. In theory, in a couple of decades’ time, Australian submarines could turn up off the coast of Russia’s Sakhalin Island and Kamchatka Peninsula, or even cross the Bering Strait into the Arctic Ocean, creating a new potential threat for Russia’s Northern Fleet. There is every reason to suppose, however, that their main routes will lie much further south, and will not directly impinge upon Russian interests.
It is noteworthy that at around the same time as the establishment of AUKUS, China submitted an application to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (TPP). The TPP was actually conceived as part of the strategy for China’s economic containment under former U.S. president Barack Obama, though his successor Donald Trump refused to take part in the initiative. China’s chances of joining the TPP are slim, but in making the request, Beijing is once again demonstrating that for its part, it would like to limit its rivalry with Washington to the realm of trade, investment, and technology. By creating AUKUS, on the other hand, the United States and its partners are increasingly signaling their intention of extending the confrontation to the field of military technology and the geopolitical arena.
Back in May 1882, when Germany, Austria-Hungary, and Italy agreed to establish the military and political bloc known as the Triple Alliance, it’s unlikely that anyone in Europe gave a second thought to the possible long-term consequences. After all, the aim of the alliance was purely the containment of France, where revanchism was rife following the country’s defeat in the Franco-Prussian War of 1870–1872. There were no bigger plans in Berlin, Vienna, or Rome at that time. Yet little more than thirty years later, the European continent was awash with the bloodshed of an unprecedented war.
Today, AUKUS looks like a rickety and unstable structure cobbled together in a hurry. But in twenty or thirty years, the logic that prompted its members to establish a new military and political alliance could lead them into a situation that neither they nor their opponents can get out of without the most severe consequences for themselves and the rest of the world. That is the main long-term danger from AUKUS.
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