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Lithuania finds the ways to maintain its energy security

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The last political events once again highlighted the political relevance of energy security issue for Lithuania. We must pay tribute to the government that struggle for reducing Lithuania’s dependence on Russian energy supplies and for receiving financial support from its EU and NATO partners by all possible means. It finds new ways to attract international attention to the problem.

The energy security issue for Lithuania has various aspects. One of them is insufficient funds for the dismantling work at Lithuania’s Ignalina Nuclear Power Plant (INPP). According to Audrius Kamienas, director of the Activity Planning and Finance Department at the INPP, another 900 million euros will be required starting in 2020. The government is continuing negotiations with EU in order to receive further financing of the project.

Deputy Energy Minister Rokas Baliukovas said that active negotiations on additional EU funding for the Ignalina plant closure would start in 2017 to 2018. Kamienas said that 941 million euros had been used for the INPP closure by the start of 2016, with another 745 million euros in EU and national budget funds planned to be used by 2020. Self-financing of the project is impossible for the country and even partial funding has become an unbearable burden for the national budget.

President Dalia Grybauskaite expects that Germany will support Lithuania in its efforts to raise concern about the safety of Belarus’ nuclear power plant under construction in Astravyets, some 50 kilometers from Vilnius. By the way, Belarus is the closest ally of Russia. Lithuanian government is not sure of the plant’s safety but can’t oppose the construction alone. So Lithuanian authorities follow a proven method by appealing to external help.

Another aspect of maintaining Lithuanian energy security the government considers preventing construction of the Russian-German pipeline project Nord Stream 2. Being dependant on Russian energy supplies for the long time Lithuanian authorities think that it poses “risks for energy security not only to the country but to the region of Central and Eastern Europe on the whole.” Earlier, on 17 March, Prime Ministers and leaders of 9 EU member states (Czech Republic, Hungary, Poland, Slovak Republic, Romania, Estonia, Latvia, Lithuania, Croatia) had sent a letter to Jean-Claude Juncker, President of the European Commission, speaking out against Nord Stream 2. But the matter is the EU is not directly involved in the decision-making process around Nord Stream 2: it is the national permitting authorities of the countries whose waters the pipeline will cross that must grant approval for the project. In this case, these are the permitting authorities of Russia, Finland, Sweden, Denmark and Germany. Lithuanian President Dalia Grybauskaite met with German Chancellor Angela Merkel on April 20 and tried to convince inefficiency of the project. However, if the German companies are able to defend their commercial interests, then the project will have a future. Taking into account the German pragmatism, economic expediency will prevail over the political one. Probably Germany does not pay so much attention to Russia’s threat as the Baltic States do.

It should be said that Lithuanian authorities effectively use geopolitical situation in the region in order to reach national goals by attracting international attention and persuading its partners that Lithuanian problems are their problems either. One couldn’t judge Vilnius for it. Probably for the government of small country it is the simplest way. For example “threat from the West” made it possible for Lithuanian authorities to ask for NATO support in military and energy security spheres.

The seventh meeting of the Steering Committee of Vilnius-based NATO Energy Security Centre of Excellence (NATO ENSEC COE) took place on 19-20 April in Chalon-sur-Saône, France.

In the meeting a lot of attention was dedicated to the protection of critical energy infrastructure and discussions on expansion of the Centre. NATO has assessed that the protection of critical energy infrastructure is one of the key elements for strengthening the Alliance’s resilience to hybrid threats. In this regard, Lithuania called on to increase funding for the centre’s activities in order to ensure necessary expertise in the field of the protection of critical energy infrastructure. Joining of new countries to the Centre (such as Germany and the US) will strengthen the capabilities of the structure and will made Lithuania more prominent in NATO and on the international arena.

So the event allowed receiving additional political and financial support from external sources, such as NATO.

Thus Lithuania today has at least two reliable ways of getting support in maintaining its energy security – from EU and NATO. It should be said that Vilnius uses such opportunities to reach national goals successfully.

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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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Eastern Europe

Will Russia serve the old wine in a new bottle?

Anzhela Amirjanyan

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Nowadays, one of the main features of global political developments are non-violent or color revolutions. These revolutions are brought about by wide-spread corruption, poverty, unemployment and a deep gap between masses and the ruling elite with the latter being the biggest political risk for the ruling party. Most analysts argue that these factors are combined also with outside support, which can culminate in the revolution. However, what happened in Armenia after a few weeks of peaceful demonstrations, the Velvet revolution, that brought down the regime and has exercised true people power, is considered to be unprecedented for it didn’t owe its origin to the external assistance or wasn’t an attempt by ‘‘US to export democracy’’ in Armenia. The geopolitical factor was initially excluded.  In fact, Russia has traditionally had negative attitude towards color revolutions and has seen them ‘‘as a new US and European approach to warfare that focuses on creating destabilizing revolutions in other states as a means of serving their security interests at low cost and with minimal casualties’’.This means that Russia, desperate to maintain its own standing in the Caucasus, was likely to intervene in the events unfolding in Armenia. However, the Kremlin didn’t view turmoil in Armenia as a Ukraine-style revolution. Asked if Russia would intervene, Kremlin Spokesman Dmitry Peskov said the matter was “exclusively an internal affair” and Russian action would be “absolutely inappropriate”. Moreover, after Armenia’s unpopular leader Serzh Sargsyan’s resignation, Russian Foreign Ministry spokeswoman Maria Zakharova called Armenians “a great people” and wrote, “Armenia, Russia is always with you!”

The prospect of a Russian intervention was low for 2 key reasons

One of the possible reasons behind Russian inaction was that Moscow didn’t regard the revolution in Armenia as a threat to its geopolitical prerogatives, but rather as an opportunity to make a strategic move through a global panic over Russia’s continued warlike behavior. Satisfied that this is genuinely an internal Armenian issue directed at an incompetent and ineffective government, Russia proved with its muted response to Armenia’s color revolution that Kremlin embraces the policy of non-interventionism.

Secondly, a rapid spread of pro-Western sentiment among local journalists, civil society representatives and youth was prevalent in Armenia in the past decade. This process only accelerated after Armenian President Serzh Sargsyan unexpectedly decided in 2013 to join Russian-led Eurasian Economic Union (EAEU) over EU Association Agreement.Yerevan’s decision of September 3, 2013 to involve in Eurasian Economic Union (EAEU) was mostly conditioned by Moscow’s ultimatum imposition, which left a deep track in the perception of Armenia-Russia relations and formed a comparatively new cliché. Anti-Russian sentiments were on rise in Armenia in recent years due to major levers of influence that Russia maintained over Armenia: Armenia’s corrupt oligarchic system and the military threat coming from Azerbaijan. Civil society and the opposition in Armenia viewed Russia as the sponsor of the autocratic, oligarchic system of governance in Armenia. They have traditionally criticized the government for having closest ties with the country which provides 85 percent of arms export to Azerbaijan-a country which is in continuous conflict with Armenia over the disputed territory of Nagorno Karabakh.  This anti-Russian sentiment reached its apex in 2016 when the intense fighting broke out in Karabagh known as Four-Day War. This drew the public attention to the Russian-supplied arms which played a role in the deaths of dozens of soldiers.

Both opposition leaders and civil society members demanded not only Armenia’s exit from the EAEU, but also an end to the Russian military presence in the country. The anti-Russian rhetoric was useful for both the Armenian government and the opposition to alert Russia not to take Armenia for granted.Hence, in one way the April Revolution in Armenia was a test for Russian-Armenian relations, and Russia viewed it as a new impulse for mutually beneficial relations aimed at restoring the damage of Russia’s protective image among Armenians.Needless to say,Armenia is important to Russia, as losing Armenia would cause fundamental changes in Moscow’s influence in the South Caucasus. Furthermore, Armenia can’t cherry-pick among its closest allies because its landlocked position limits the freedom to maneuver in its foreign policy and its economic and defense imperatives dictate a close alignment with Russia. This was reaffirmed by new prime minister and protest leader of Armenia, Nikol Pashinian, who not only supported maintaining the current Russian-Armenian relationship but also suggested a “new impulse” for political and trade relations during the meeting with Russian president Vladimir Putin in Sochi on May 14. During another meeting a month later, Armenian PM expressed his hope that ‘’the relations will develop more effectively on the basis of mutual respect for the best interest and sovereignty of the two States’’.

On the whole, Armenia will continue to pursue its “Complementarian” or multi-vector foreign policy, which means that no radical change in the realm of foreign policy is expected to take place.  Yet there is no strong anti-Russian current in Armenian political and society rhetoric. The recent civic movement was significant in realizing the potential of Russian-Armenian mutual relations for economic development and security. Undeniably, Russia should adopt new approaches towards Armenia and it should realize that under new circumstances the backward-looking policies are destined to be counter-productive. In Armenia people hope that Kremlin wouldn’t serve the old wine in a new bottle.

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