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Blowback Diplomacy: How the US was Locked Out of the Caspian

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It has been almost one year since the IV Caspian Summit in Astrakhan, Russia, where the presidents of the five Caspian states signed a political declaration that denied any foreign military presence in the Caspian Sea.

This means that possible future deployment of NATO forces in the area will not be allowed. According to Russian President Vladimir Putin, this declaration “sets out a fundamental principle for guaranteeing stability and security, namely, that only the Caspian littoral states have the right to have their armed forces present on the Caspian.” While this is a threat to the United States, the decision may not have been as much of a shock. It may have been US policies that pushed this decision to the forefront.

Looking back to the collapse of the Soviet Union, the United States was careful not to make it seem as though it was siding with the new states in their efforts to achieve independence from Russia. This was important because the United States did not want to give the impression that a “cordon sanitaire” was being created around Russia in order to isolate it from Europe. The new states and Russia were given the opportunity to create arrangements amongst themselves that were acceptable to both sides. The United States was to basically stay out of it. This policy was a way to allow the United States to slowly and strategically become involved in these new states in the years following the collapse of the Soviet Union without bothering or irritating or worrying Russia.

After giving the newly independent states some time, the United States became increasingly active in its diplomatic efforts in the region. It started out with official visits, first by the leaders of the region to the United States: President Islam Karimov of Uzbekistan visited the White House in 1996; President Eduard Shevardnadze of Georgia, President Heidar Aliyev of Azerbaijan, President Nursultan Nazarbayev of Kazakhstan in 1997; and President Saparmurat Niyazov of Turkmenistan in 1998.   These visits were then followed by US Secretary of State Madeleine Albright touring the region in 2000.

To add to this, possibly one of the most significant US policy decisions in the Caspian region, the Clinton Administration appointed a “special envoy”, or a special inter-agency working group, which focused on Caspian policy. This was interesting because so much focus was placed on this remote region, even though there was no significant trade relationship between the Caspian littorals and the United States, no real threat of major war, and no immediate threat to regional or international peace and stability. The United States military also began to pay attention to the region. Many training sessions and programs were conducted in the area and between 1992 and 1999. The United States also provided the Caspian area with nearly $1.9 billion under the Freedom Support Act to promote democratization, market reforms, health care, and housing.

However, not all good deeds go unpunished. While supporting the region, the United States also addressed the importance of Central Asia and the Caucasus. A mistake the United States may have made in addressing the importance of this region was emphasizing the region’s oil and gas wealth. In an address before the Senate Appropriations Committee’s Foreign Operations Subcommittee, Secretary of State Madeleine Albright noted that it was of national interest to support states in the Caspian Basin because they were strategically located and energy-rich. This may have planted a seed of suspicion in Russia toward US motives in the area, which could have led long-term to the decision to lock them out of the region militarily in last year’s summit.

Thus, the very policy that was meant to help the United States gain the littoral states’ trust and future access to the Caspian’s resources and strategic location may have backfired. The US invested so much time, money, and energy working to build the navies and strengthen the military in Turkmenistan, Azerbaijan, and Kazakhstan. However, all of that training and arms supplied were ultimately manipulated by Russia and Iran, cajoling the states that they could protect their interests themselves without more direct foreign military aid and involvement. The littoral states bought into the idea that their bolstered militaries, along with Russia and Iran’s supplementally pledged military support, would be enough to protect themselves. It seems apparent that the idea of needing protection from Russia and Iran in the future was not considered a relevant threat. This concept is something loudly crowed about in the West but these decisions show it is not shared by the ‘lesser’ Caspian littorals.

Another policy of the United States that may have contributed to this lockout decision was the imposition of sanctions on Russia and Iran. Russia not only has soft power influence throughout the region, many of the littoral states are fearful of a belligerent Iran. The United States imposed sanctions on Russia in response to the annexation of Crimea and subsequent involvement in the war in Ukraine. The sanctions have caused severe economic harm to Russia causing food prices to soar, the exchange rate to weaken, inflation to increase, and incomes to decrease. The United States also imposed further sanctions on Iran due to its illicit nuclear activities. Like in Russia, the sanctions severely affected Iran’s economy, causing incredibly high inflation, unemployment, and food prices. Thus, Russia and Iran’s distrust and anger toward the United States, along with their own national security interests, fueled their actions to push the littoral states to agree with the lockout.

The decision to block foreign militaries from the Caspian Sea is a threat to the strategic interests of America and, to a lesser extent, the EU. Potentially, it could have negative repercussions on energy security. By removing any Western military influence in the region, Russia will be able to maintain the regional hegemony it considers its natural birthright. In addition to that, Iran will be able to ensure greater strategic flexibility moving forward with the JCPOA nuclear accord. It is now clear that there were policy decisions made by the US that negatively affected its relationship with Russia and Iran and fueled the push for the military lockout. Additionally, the United States’ discussion of the strategic location and energy wealth of the Caspian Basin undoubtedly caused an air of doubt by the ‘greater’ Caspian littorals and clearly motivated them to improve their relations with Kazakhstan, Azerbaijan, and Turkmenistan enough so that those three could legitimately believe in the wisdom and efficacy of relying on their own regional securitization. In short, the biggest decision that came from the IV Caspian Summit was the product of a long and gradual process of ‘blowback diplomacy,’ where the United States was forced to reap a bitter harvest from its earlier sowing season.

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Eastern Europe

Armenia’s Role in South Caucasus Policy of Russia

Aliyar Azimov

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The Caucasus has long been one of the most important regions in the world. Many states had the desire and plan to rule this region from time to time. For centuries Russia has a great influence in the Caucasus and the main reason for the importance of the Caucasus region for Russia is its geostrategic location on important trade routes. Because by passing through this region Russia can reach the Balkans, the Black Sea and the White Sea, the Persian Gulf, as well as the Indian Ocean. The other important reason is the Caucasus is a great source of raw materials for the Russian economy. North Caucasus regions, such as Chechnya, Dagestan and Tatarstan, cover almost half of Russia’s energy needs. Also, the Caucasus region has significant strategic importance in terms of the routes that aimed to bring the Caspian Sea resources to the West and controlling these routes.

After the dissolution of the USSR, relations between Russia and Armenia intensified since 1992. There are numerous agreements have been signed between Russia and Armenia in various fields. The most important agreement was signed in Moscow a Treaty of Friendship, Cooperation, and Mutual Assistance by Presidents Boris Yeltsin of Russia and Levon Ter-Petrosian of Armenia. The treaty also envisages consultations and mutual military support if either side is attacked or considers itself threatened by a third party. Despite Russian and Armenian officials denied this, it was one of Russia’s interference in the South Caucasus through Armenia. This agreement has made Russia’s presence stronger in the region. Russia has military bases in Armenia and the main purpose of these bases is to protect Russia’s interests and Armenia’s national security. After the recent crisis in Georgia and the withdrawal of Russian military bases, Armenia became a more important actor for Russia.

Russia has a significant impact on the processes in the region by using the Nagorno-Karabakh conflict. The conflict started with Armenian occupation of Azerbaijani lands and as a result of Russia’s efforts, a ceasefire was declared and negotiations started. The Kremlin supports the peaceful settlement of the conflict within the OSCE Minsk Group, as well as in bilateral meetings. Consequently, Russia provides political and military support to Armenia as an important ally in the region, as well as prevents Azerbaijan moving away from it by being as a guarantor of the peaceful settlement of the conflict. Time to time Russia uses this conflict to make political pressure on both countries which makes it another most important factor for Russia. Georgia’s attack on North Ossetia and later on Russian intervention in Georgia and recognition of North Ossetia and Abkhazia, have led to thinking whether there will be a change in the status of Nagorno-Karabakh. Also, Russian intervention in Georgia has shown that the problems in the CIS region cannot be solved without Russia. Therefore, it is possible to say that resolving the Nagorno-Karabakh dispute is highly dependent on Russian presence. However, the growing interest of the West in this region and proposing new solutions to the conflict, make Azerbaijan and Armenia use this dispute card against Russia. The possibility of Western-South Caucasus rapprochement in the future may lead to not only a political, but even a serious economic impact on Russia. Russia’s economy is heavily dependent on energy resources and the European energy market is the most important, profitable, and stable market for Russia. At the same time, the EU tries to diversify its energy routes and to reduce its dependency on Russian energy exports. The South Caucasus, especially the Caspian region has rich oil and gas sources. Hence, in the light of the Western-Caucasus relations, the role of Azerbaijan becomes more significant and strategic. In addition, strengthening and developing relations between Armenia and the EU is important in terms of ensuring the security of supply. Such a significant reduction of the EU’s dependence on Russia will have a great impact on Russia’s economy. Considering the fact that there are numerous sanctions on Russia, the weakening of the Russian economy may hamper its regional power. Even more likely, this may lead to domestic riots in Russia, and Russia may face the threat of a division of the country.

The Kremlin and Moscow have a special control over the region to prevent this scenario and creates barriers to the South Caucasian countries’ integration into the European Union. For instance, abandoning the Nabucco project, Russia’s military intervention in Georgia, and being a shareholder in projects in this region (excluding TAP and TANAP) are some examples of these barriers.

Diasporas also play an important role in Russia’s Caucasus policy. They are most influential tools in key areas of government and are closely involved in political activities. Moreover, the existence of many Russian citizens in Armenia, the wider use of Russian language in the country, and the broadcasting of Russian radio and television channels are the core elements of Russian presence in Armenia. Some Russians living in Armenia also have the opportunity to participate actively political and cultural relations due to their Armenian language knowledge.

Conclusion

After the collapse of the USSR, Armenia became Russia’s main ally in the South Caucasus. Integration of Georgia into West, conflicts and problems with Turkey and Azerbaijan, threats to national security urge Armenia to be closer to Russia. At the same time, large-scale projects implemented by Azerbaijan and Georgia with Turkey and Western countries, integration into the Western markets, and problems with Armenia hinder Armenia’s regional, political and economic development. To ensure this development, Armenia sees Russia as its biggest ally and closely cooperates with Russia.

The basis for the national security of Armenia relies on military cooperation between Russia and Armenia, however, the dependence on Russia in the economic sphere and the fact that all the strategic enterprises are controlled by the Russians is contrary to Armenia’s interests. Therefore, Armenia is in search for ways to integrate into the West without undermining its relations with Russia. However, Armenia’s political and economic dependence on Russia and tensions with Azerbaijan and Turkey make difficult to integrate into the West. in order to get rid of isolation, it is important for Armenia to step back in disputes with Turkey and Azerbaijan and mitigate relations.

In the near future, it is impossible for Armenia to completely break the dependency on Russia and integrate into the EU and the West. The grounds for this integration, which depend on Russia’s foreign policy strategies, have not yet been established. Today, the Armenian authorities understand that it is impossible for Armenia without Russia to exist in these conditions. While the integration into the West is on the agenda, the isolation of Armenia in the region prevents the achievement of political and economic prosperity. Russia’s active involvement in the region is important for Armenia, both for internal and external stability. Armenia’s integration to the West will continue in the frame of Russia’s interests, but from now on the Armenian government will pursue a more discreet policy towards Russia. Russia, on the other hand, can take two actions; to take a step which can lead to the end of the Nagorno-Karabakh conflict and Armenia’s defeat, or to control Armenia without military intervention by making some concessions to current or future authorities. The first option is dangerous for Russia in terms of losing Armenia and reputation in South Caucasus, however, in the second variant, Russia can maintain its influence in the region by ensuring its long-term interests.

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Eastern Europe

Latvians will choose their future

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The general elections in Latvia will take place on October 6, 2018. On Saturday Latvians will choose their future. Though it sounds very pathetic, future of the country really depends on the results of these elections.

In an interview with Latvian information agency LETA, Foreign Minister Edgars Rinkevics, commenting the atmosphere during this pre-election period, said that a serious battle of people’s minds and hearts is going on right now.

And this is true. But this fight is too cruel. Just this pre-election period shows all things bad as they are. The “truth” about corruption on high banking and political levels all of a sudden has been poured out on population. “Latvia’s central bank chief has been charged with bribery. A lawyer liquidating the bank that was accused of bribing him was killed in a hail of machine-gun fire. One of the country’s biggest lenders was shut down after the U.S. levied allegations of money laundering and violations of sanctions on North Korea. What’s going on in Latvia? “ ask the authors of article “Where Latvia’s Financial Corruption Scandal May Lead” published in Bloomberg on September 27.

Situation in small Latvia reminds gangster times in the United States, when criminals held people in awe. The difference is only in the fact that American gangsters were not high ranking officials. Gangsters’ activity was officially considered criminal. On the contrary, Latvian case demonstrates activity of corrupted authorities, who influence the whole country, all 2 milllion people.

Ilmars Rimsevics, who’s been in charge of Latvia’s central bank as governor or deputy since 1992, is accused of soliciting a bribe from Trasta Kommercbanka AS, a small lender that was shut in 2016 after being implicated in a $20 billion money-laundering scheme. Specifically, he’s accused of receiving 250,000 euros five years ago.

It is difficult to imagine, that he got a bribe once, ruling the bank for so many years. Nobody saw his misconduct, nobody knew about it. Nonsense!

Now it is a question of trust to all top officials in Latvia.
For example, about 1 percent of all U.S. dollars moving around the world in 2015 were going through Latvia, according to Daniel Glaser, then a top official in the U.S. Department of the Treasury. It means that Latvia had a chance to become the second Switzerland at least.

But Latvians did not even feel the benefits. They tried to survive in 2015 and they continue to survive in 2018. Nothing has changed. Rich people have become richer and poor have become poorer. That is Latvian Reality.

The other news stroke Latvians this week. Prime Minister Maris Kucinskis confirmed that EUR 2 million more could be allotted for national defense.

He said with pride that “thanks to the increasing budget revenues, the funds will not have to be taken away from other national economy sectors.”

A question arises: why should these additional revenues go to defense and not to other national economy sectors? Is it the sphere that needs money most of all?

Corrupted political system decides for people where their money should go and for what purposes. It is well known that it is very difficult to track money spending in military sphere because this sector of economy is not transparent to the society due to security measures.

The only thing Latvians can do under such circumstances – to choose the right politicians to rule the country and they are surely should not be the same corrupted officials.

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Eastern Europe

Lithuania violates the Universal Declaration of Human Rights

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DELFI, which is the major Internet portal in the Baltic States providing daily news, stated on September, 10 that the number of emigrants from Lithuania exceeds that of immigrants by 1,000 in August. Shocking statistics shows that the country has registered a negative migration balance. Some 4,382 people left Lithuania in August. Thus, Lithuanians are leaving the country despite authorities’ claims on economic growth, stability and favorable perspectives.

On the one hand, according to “Lithuanian economy review – 2017”, the GDP growth in Lithuania accelerated. In 2017, as compared to the previous year, Lithuania`s GDP increased by 3.8%. On the other hand, this fact contravenes the increasing number of emigrants.

What makes people change their life and say “Good bye” to their homes? This is a rhetorical question. The answer lies on the surface.

Lithuanians do not satisfy with their standards of living. For example, survey of public opinion and market research company “Baltijos tyrimai” reveals that Lithuanians still haven’t domesticated the Euro. The pool conducted in July shows that more than 46,3% of Lithuanians blame the European currency in lowering their life standards. In other words they do not agree with the authorities’ decision to adopt the euro.

People compare their life with the other European countries and it is not in favor of Lithuania. The words and promises are not fulfilled, corruption flourishes. Thus, Freedom House document “FREEDOM IN THE WORLD 2018” reports that “the major problem for Lithuania’s democracy – corruption – continued to dominate the public sphere, as a series of scandals plagued members of the Seimas (parliament) and public institutions. Even Lithuanian President Dalia Grybauskaitė on Monday called on lawmakers not to waste their time on squabbling.

Officials, who today name themselves democrats, did not manage to get rid of Soviet thinking and way of behavior. When they get political power they forget about their duties. Permanent political scandals in small country led to the fact that people stopped believing authorities. And authorities’ activity is seemed to be suspicious in all spheres of life.

Thus, Lithuanians are wary of a new agreement on the country’s defense policy for the next decade signed by Lithuania’s parliamentary parties on Monday. The document calls for joint efforts to resist “irresponsible speculation that sets defense funding in opposition to other sensitive areas”. It means that Lithuanians do not have the right to decide to what area allocate budget money though they pay taxes. They do not have the right to speak on this topic and express their opinions if they contradict the official point of view. The parliament members forget the basic human rights. Article 19 of Universal Declaration of Human Rights of the United Nations states that ”everyone has the right to freedom of opinion and expression; this right includes freedom to hold opinions without interference and to seek, receive and impart information and ideas through any media and regardless of frontiers.”

An ordinary person cannot solve the puzzle why television and Government controlled media describe his country just another way he sees it. Freedom House states also that “Regional economic disparities remain acute. The minimum wage remains one of the lowest within the EU, and the share of the population at risk of poverty and social exclusion is a little over 30 percent.

This discrepancy forces Lithuanians to seek better life abroad, usually in Old Europe. More than 20 years of expectation is too much. Life is too short to waste it to sit around waiting for changes.

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