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Ramification of Russo-Turkey realignment for US policy

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Possibly something bad has happened to US policy makers and CIA-Pentagon duo as their strategy to further divide and complicate relations between Russia and Turkey misfired. The US game plan misfired thanks to the timely crushing action by Turkish government against the plotters and coup leaders who seem to have worked for quite some time under US-EU (Germany) directions to destabilize the Islamist nation so that it never becomes strong, again.

Of course, Washington never expected the coup to fail and sought President Erdogan and his ruling Muslim Brotherhood party to perish in tandem and a puppet regime under a US stooge would assume office to support Israel and USA.

Interestingly as it does happen in international politics, rather quite often, the countries that were targeted by USA, namely Russia and Turkey, got together by comprehending the hidden agenda behind the presumed Pentagon instructions to Turkish military bosses to fire down a Russian war plan that trespassed the airspace (territory) of the erstwhile Ottoman Empire, resumed their ties. This is something that tarnished the image of USA as being the top intelligence nation with high precision information networks.

In August, Turkish President Recep Tayyip Erdogan traveled to St. Petersburg to meet his “dear friend” Russia’s strongman Vladimir Putin. Their relations had fallen to a low point when the Turks shot down a Russian warplane over northern Syria. Unlike Western leaders, however, Putin had personally called Erdogan to congratulate him on aborting an attempted military coup in July.

Turkey-Russia relations have had ups and downs since the era of Ottoman Empire. A year ago, they were shaking hands, then relations cooled to icy temperatures, but now it seems Russia and Turkey could be on the road to restoring ties. President Vladimir Putin and his Turkish counterpart Recep Tayyip Erdogan have said they want to hold a face-to-face meeting as they agreed to resume cooperation in trade, tourism and the fight against terrorism. Relations took a turn for the worse in November last year when Turkish forces shot down a Russian plane involved in the military campaign in Syria. Ankara said the jet had strayed into its airspace. Erdogan wrote to Putin to reportedly express regret for the incident. The Russian leader said the letter created the conditions necessary to close “this crisis chapter” in bilateral ties. The thawing of relations comes in the same week as a deadly terror attack in Istanbul’s busiest airport, in which more than 40 people were killed.

Russo-Turkish ties have not been upgraded at US cost. Top US officials have not gone to great lengths to hide their dissatisfaction with Turkey’s rekindled friendship with Russia. For many Turks, the irony is that it was the same spokespeople in Washington who urged the Turkish leadership to reach out to the Kremlin – which, Secretary of State John Kerry thought, would play ball. To make matters worse, Washington ignored repeated warnings that steps taken by the US regime would place Turkey’s vital interests at risk. In the end, the Turks turned to other partners to protect their interests. And Russia is a good friend now.

US-Turkey relations have not, however, affected badly as it should because of regular NATO meetings and other secret conclaves. Turkey is the only Muslim nation from Europe in NATO. After roughly nine months of disagreement, Turkish President Recep Tayyip Erdoğan and Russian President Vladimir Putin agreed to revive their stalled bilateral relationship in their first direct contact on June 29, fueling hopes about restoring economic and trade ties Turkish Chief of Military Staff General Hulusi Akar departed for the USA to attend the meeting of anti-Daesh coalition military chiefs. The meeting is taking place ahead of the crucial operation to liberate Iraq’s second largest city of Mosul from Daesh. According to the statement released by the Turkish General Staff, the last meeting of the coalition military chiefs had taken place six months ago.

What the USA and European allies are worried about, however, isn’t Turkish tomatoes. It’s that improving ties between Ankara and Moscow could translate into closer cooperation on political challenges including the Syrian crisis. Democratic presidential candidate Hillary Clinton announced that she would provide weapons and ammunition to YPG, the PKK’s Syrian franchise, as part of the anti-Daesh campaign. Russia could use Turkey against Europe.

Arrival and success of Russian warplanes in Syria where Americans were calling all shots, was a slap on Washington. The Moscow-Washington agreement of September 10th on Syria, reached after 10 months of hard bargaining and now in shambles after another broken truce, had one crucial if little noted aspect. For the first time since the Soviet Union imploded, Russia managed to put itself on the same diplomatic footing as the USA. Russian strive for equal status from USA, however, is still elusive

The Pentagon soon signed a memorandum of understanding with the Kremlin over safety procedures for their aircraft, now sharing Syrian air space, and established a ground communications link for any problems that should arise. The morale of the Assad regime had improved, it was no longer in danger of being overthrown and its hand was strengthened at any future negotiating table.

Obviously, USA has lost its prestige on world stage even as Moscow is gaining importance in the global eyes.

In August 2015, by all accounts, President Assad was on the ropes and the morale of his dwindling army at rock bottom. Even the backing of Iran and the Lebanese militant group Hezbollah had proven insufficient to reverse his faltering hold on power. To save his falling regime from collapse, the Kremlin’s military planners decided to fill the gaping hole left by Syria’s collapsing air force, shore up its air defenses, and boost its depleted arsenal of tanks and armored vehicles. The number of Russian military personnel dispatched was estimated at 4,000 to 5,000. Although none of them were ground troops, this was an unprecedented step in recent Russian history. The last time the Kremlin had deployed significant forces outside its territory- in December 1979 in Afghanistan – proved an ill-judged venture, ending a decade later in their withdrawal, followed by the collapse of the Soviet Union in December 1991.

Meeting in Istanbul on October 10, President Recep Tayyip Erdoğan and his Russian counterpart Vladimir Putin signed a historic agreement to launch the Turkish Stream, a natural gas pipeline that will deliver Russian gas to Europe via Turkey. Just a few months ago, the project was considered dead in the water: Turks had downed a Russian jet over airspace violations and the Kremlin was trying to hurt the tourism industry in Turkey. There was even talk of a violent escalation between Ankara and Moscow.

Turkey and Russia kissed and made up.

The Turkish-Russian rapprochement has been largely limited to energy and economic cooperation. Since Erdoğan’s visit to St. Petersburg, Russian tourists have come back to the Turkish riviera, as import restrictions on Turkish agricultural produce were largely lifted.

The high level of economic relations between Turkey and Russia has become the most important component of our bilateral multidimensional relations. Trade volume between our countries exceeded 25.2 billion Dollars, as of the first 11 month of 2007, making Russia, Turkey’s second trading partner after Germany. Russia is now the main import source for the Turkish economy. Imports from Russia account for about 13% of overall imports. Turkey’s share in Russia’s foreign trade also reached significant levels. As of 2007, Turkey, with a share of about 5%, is Russia’s 4th export country. Russia’s imports from Turkey are also increasing and reached 4,3 billion Dollars in the first 11 month of 2007. N The total value of projects undertaken by Turkish contractors in Russia surpassed 26 billion Dollars, making Russia by far the most important market for Turkish construction services.

As for Turkish direct investments in Russia, they are estimated to have reached 5,6 billion Dollars. At the same time, there is a growing interest by the Russian firms, especially in the telecommunications, energy and tourism sectors, in investment in Turkey. ,Tourism is yet another economic area where our bilateral relations have grown at a very rapid pace. Where in 1999 the number of Russian tourists visiting our country was bellow 500 thousand, this figure reached 2,4 billion in 2007. Turkey has become the most preferred holiday destination for Russians. The number of Turkish tourist visiting Russia is also rapidly growing and reached about 200 thousand.

However, Turkey and Russia view the Syrian issue differently. While the Turks maintain that there can be no lasting peace in Syria unless Assad is removed from power, the Kremlin recently doubled down by joining the regime in bombing Aleppo, where airstrikes have resulted in large casualties. Likewise, the Turkish leadership has major differences of opinion with the Russians also on Crimea and Egypt. Speaking at the World Energy Congress recently, the Turkish President called for an end to indiscriminate attacks on Aleppo – with Putin just 10 feet away. It was a symbolic gesture to make it clear that Turkey was not backtracking on Syria. It remains unlikely Turkey and Russia will reach an agreement over Syria and the future of Bashar Assad anytime soon.

In recent years, US allies around the world – Turkey, Japan and Israel, among others – felt that Washington was no longer a reliable friend. In the Middle East, Obama rewarded “rogue” Iran for breaking every rule in the book, while taking shots at regional allies in front of the cameras. In Asia-Pacific, Obama failed to support Japan against China and last month congress voted for an act that permits families of the victims of 9/11 attacks to sue Saudi Arabia.

Turkey pursued a policy of diversification in the international arena to learn to work with a large number of partners to address pressing problems and pursue its goals. Instead of relying on Washington, the Turks reached the conclusion that the most effective way to address regional challenges was to promote regional cooperation. Keeping in mind that Turkey isn’t alone, the USA will presumably pay the price of Obama’s ambitions and disloyalty by facing growing isolation in the region.

Meanwhile, the Turks made it clear that they have absolutely no intention to waste precious time with Washington. Obama’s isolationist foreign policy, coupled with his mismanagement of the Syrian crisis, alienated the Turkish leadership and forced Turkey to search for alternative partners. The Obama regime repeatedly urged Ankara to kiss and make up with Moscow when the Russians were still playing ball with US Secretary of State John Kerry – who, at the time, refused to accept that he had deteriorated yet again. Turkey’s policy should only serve as a warning sign of how bad the Obama government hurt US interests around the world.

The next US president might enter the Oval Office only to find out that America has no allies left in the Middle East thanks to Barack Obama’s short-sighted policies. The next president must overhaul foreign policy to win back hearts and minds in Turkey and other frustrated allied nations. Unless Washington corrects its course, Ankara’s cooperation with Moscow will only mark the beginning of a dangerous trend for American interests on the ground. The USA needs to correctly identify its national interests in the Middle East and act accordingly if they would like to be taken seriously by regional actors.

Coercive tactics won’t work any longer. USA must wind down all terror wars meant to showcase its military prowess and ensure its energy security. USA and NATO along with their allies like India and Israel have jointly murdered millions of Muslims worldwide.

Enough of bloodbath in Islamic world!

Fascism and imperialism might look fashionable for the anti-Islamic nations but these are definitely harmful for any democracy and humanity as a whole.

There is absolutely nothing that Washington can do now to disturb the tempo of Russo-Turkish relations growing from strength to strength.

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Russia and Japan: Inseparable Partners

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By all accounts, Japan with its strong economy and many high-quality manufactured brands is practically searching to expand into foreign markets. Japan, with an estimated population of 126 million, has a small territory. According to UN’s assessment report on global population in 2019, Japan was the world’s tenth-most populous country. That compared with Russia, its vast territory and approximately 145 million, Japan’s investment is fast growing in the Russian Federation.

Despite its large investment and admirable brands from automobiles through mega-shops to healthcare and beauty, and to social service sector, Japan is consistently looking to expand its business tentacles. Without doubt, at the St. Petersburg International Economic Forum held under the theme: “Together Again – Economy of New Reality” early June, Russia-Japan business session attracted unprecedented large number of participants.

While noting the fact that the coronavirus pandemic did not and will not hinder economic cooperation between Russia and Japan, Minister of Economic Development of the Russian Federation Maxim Reshetnikov, noted in his speech at the session, further reviewed some significant aspects of the Russia-Japanese economic cooperation, and finally painted the broad outlook for the future.

“Despite a difficult year, we managed not only to continue existing projects but were even able to launch new ones. An express test for coronavirus was created, and a container train with Japanese goods was launched for the first time on the Trans-Siberian Railway. Construction began on a centre for preventive medicine in Khabarovsk. The Japanese company Fanuc opened an engineering centre in Skolkovo,” he told the gathering.

According to Maxim Reshetnikov, the plans for cooperation with Japan include the creation of liquefied natural gas trans-shipment complexes in Kamchatka and Murmansk region and the construction of an ion therapy centre for cancer treatment in Obninsk. Both countries are preparing to enter new and promising tracks in hydrogen energy, climate change, the creative economy, and e-commerce.

That however, Russia has encouraged potential foreign investors to venture into the regions. For example, Kaluga, which is provincial city and stands on the famous Oka river about 150 kilometers southwest of Moscow, has adopted few favourable measures, among others, and as a result has attracted five foreign automobile manufacturing companies including Japanese Nissan.

Governor of the Kaluga Region Vladislav Shapshа took part in the discussion. “Japan has been and remains our most reliable partner, a partner in a variety of areas. In terms of investments, this of course includes, the development of projects with Mitsubishi and Toyota Tsusho. Mitsubishi has placed its headquarters in Kaluga this year, and together with Peugeot Citroën has been working with us since 2009. Along with Volkswagen and Volvo, it makes up the core of the automotive cluster, which accounts for 12% of the automobiles produced in the country today,” Governor Shapshа said, giving a full business profile in his region.

The Autonomous Republic of Tatarstan also attracts foreign investors and business people. As part of the Volga federal district, its capital and largest city is Kazan, one of the most important cultural cities in the Russian Federation. “We operate a wonderful plant built in Tatarstan by Mitsubishi and Sojitz. I must say that Japanese equipment has proved its reliability. We are very pleased with this plant. Its capacity is 720 thousand tonnes of ammonia and methanol. We are grateful for this contribution,” Founder and Chairman of the Board of Directors of the AEON Corporation, Roman Trotsenko.

Japanese manufacturing stories are exceptionally useful and needed to be shared among business leaders. In his contribution, General Director of Sollers Group Vadim Shvetsov told the attentive gathering: “We launched a machine shop for Mazda engine parts. It was a very difficult at first, given that cooperation was interrupted, and we could not communicate directly. On the other hand, however, we have introduced a lot of interesting digital communication methods. Thanks to such mobile cooperation and even VR technologies, we still managed to launch production.”

The new environment has pushed the countries to seek new resolutions to overcome challenges. “The coronavirus pandemic has forced us into many challenges. At the same time, it has highlighted, illuminated in a new way some of the problems that we had seen and been aware of even before the epidemic. These are the problems of healthcare, energy, and digitalization. It seems to me that now is the moment for us to start new cooperation in these areas, especially in healthcare,” emphasized the Minister of Economy, Trade and Industry of Japan Hiroshi Kajiyama.

“Our trade and economic work together probably suffered a little from that period of forced isolation. Nevertheless, I certainly believe that the crisis is pushing us to search for new ways to create benefits for our consumers,” remarked Chairman of Delovaya Rossiya (Business Russia) and Chairman of the Board of the Group R-Pharm Alexey Repik.

The speakers have acknowledged that Russia and Japan face similar environmental challenges while developing economic cooperation. “Amid the growing trend of decarbonization, in October of last year, Japanese Prime Minister Yoshihide Suga announced a goal aimed at achieving carbon neutrality by 2050. Moreover, the goal is to reduce 2013 levels of greenhouse gas emissions by 46% by 2030. Achieving these targets will require that Japanese industry be heavily involved and adaptable,” according to President of the Japan Association for Trade with Russia, and Special Advisor of Kawasaki Heavy Industries, Ltd. Shigeru Murayama.

Chairman of Delovaya Rossiya (Business Russia) and Chairman of the Board of the Group R-Pharm, Alexey Repik, reminded that it is of great significance that President Vladimir Putin in his address to the Federal Assembly set the task of significantly limiting the accumulated volume of carbon emissions in our country just as similar goals were set by the Prime Minister of Japan, Yoshihide Suga, for the Japanese economy.

For the Minister of Economy, Trade and Industry of Japan Hiroshi Kajiyama, natural gas, which can reduce carbon emissions, is a very important resource, and Russia is a leader. Thus the unification of these Russian resources and the Asian market could be highly promising area for cooperation.

Russian business needs to attract investment. “The demand for equipment and the demand for capital both remain in Russia. Russia’s capitalism, in the positive sense of the word, is young and there is little national capital in the country. Interest rates on loans remain very high, and the requirements of the national bank, the Central Bank of the Russian Federation, to credit policy remain stringent,” observes Founder and Chairman of the Board of Directors of the AEON Corporation Roman Trotsenko.

“There are forecasts that the Russian economy will resume growth this year and ultimately grow by more than 3%. Japan also aims to recover as soon as possible from pandemic-related failure. For this, of course, the primary and first step to build a healthy and sustainable post-covid society across the globe, will be to work together with Russian partners on the basis of the eight-point plan,” Director of Mitsui and Co. Ltd., Masami Iijima, informed the gathering.

Avoiding sanction-related restrictions is a key for business. “The challenge is to move the financing relationship between Japan and Russia outside of these sanctions. For example, financing in euros or in yen. This would be very positive and would allow us to take advantage of the cheap rates on loans in Japan and in Russia,” Founder and Chairman of the Board of Directors of the AEON Corporation Roman Trotsenko.

Healthcare and energy partnership also remain significant for both and, need not be overlooked. “New areas are emerging. For us it is hydrogen and ammonia; it is the capture and storage of carbon, carbon dioxide, and its use as a resource. Here, it seems to me, we must increase our work together,” according the Minister of Economy, Trade and Industry of Japan Hiroshi Kajiyama.

“The health sector is the first item in the eight-point economic cooperation plan. I think that our countries should increase cooperation in this area,” added the President of the Japan Association for Trade with Russia and Special Advisor of Kawasaki Heavy Industries, Ltd. Shigeru Murayama.

“We believe that Japan can help achieve the goal of increasing healthy life expectancy set by the government of the Russian Federation,” suggested Chairman of the Japan-Russian Committee for Economic Cooperation and the Federation of Economic Organisations Keidanren and Chairman of the Board of Directors of the Marubeni Corporation Fumiya Kokubu.

Ahead of St Petersburg forum, Japanese Ambassador in the Russian Federation, Toyohisa Kozuki gave an interview to Interfax News Agency, listed a wide-range of concrete and significant projects as part of efforts toward strengthening Russian-Japanese economic cooperation. According to the ambassador, widening economic cooperation between Japan and Russia is primarily part of the current eight-point strategic cooperation plan.

Within this plan, the Okura Hotel project in Vladivostok is an example of progress in urban development in 2020. This will be the first Japanese hotel in Russia. The Okura Hotel’s refined services will make Vladivostok more comfortable and accessible not only to its residents but also businessmen and tourists visiting this international city. Vladivostok catches the attention of the Japanese as the nearest ‘European’ city, it can be reached from Tokyo by air in 2.5 hours. That is why the opening of the Hotel Okura Vladivostok will definitely make the city more attractive to Japanese tourists.

As part of cooperation, Japan is also making an effort to develop postal services in Russia, and some results in this sphere have already been reached, the efficiency of postal deliveries was increased thanks to the use of Japanese-made sorting machines at international postal exchange centers in Moscow. Cooperation between postal services of both countries is growing stronger also through the exploration of e-commerce opportunities on both sides. In the future, it is anticipated that a system will be in place, thanks to which Japanese consumers can order Russian goods online and the EMS postal service will deliver them to Japan.

In December 2020, Japanese entertainment center Round One, which brings together arcade games, bowling and other amusements, opened at the Yevropeisky shopping mall in Moscow. Round One is the most popular closed amusement parks chain in Japan. The new venue is a unique leisure venue for Moscow residents, in the sense, that they can get acquainted with Japanese culture without leaving their native city.

There is progress in promoting the use of the Trans-Siberian Railway as far as cooperation in the Far East, primarily in transport and infrastructure, is concerned. In particular, the Ministry of Land, Infrastructure, Transport and Tourism of Japan in cooperation with the Russian Railways is implementing a pilot project to promote the use of the Trans-Siberian Railway.

The first container train carrying cargo from Japan to Europe was dispatched in 2020. And those were not individual containers as before but a whole container train. This was done in the expectation that it will make it possible to ship freight more cost effectively compared to container transportation, and many Japanese companies showed an interest and took part in the pilot project.

The companies that participated in the pilot project said that against the backdrop of destabilized logistics between Japan and Europe amid the coronavirus pandemic, the use of the Trans-Siberian Railway can be seen as a third option in addition to sea and air transport.

As an example of such expectations, Ambassador Toyohisa Kozuki informed that Japan’s logistics company Toyo Trans started regular container shipping services with consolidated freight to Europe, to the Polish city of Poznan, along the Trans-Siberian Railway in February. This service provides for regular shipments every Thursday from a Japanese port. The cargo reaches Poznan in 22 days. Transit time decreases by about half compared to sea routes. We hope that the transit along the Trans-Siberian Railway will give a boost to logistics between Japan, Russia and Europe and lead to the further development of economic cooperation.

Next, regarding agriculture, forestry and fisheries, the relevant agencies of Japan and Russia in January 2020 signed a memorandum of cooperation on a joint Japanese-Russian project to increase the efficiency of agriculture and fish production in Russia’s Far East. Current projects are now getting support, and the search is on for new projects in three areas that provide for the use of technologies and know-how of Japanese private companies.

These include, firstly, increasing the productivity and export potential of soya, corn and other crops; secondly, expanding production of vegetables through expanding vegetable greenhouses in Yakutsk and other cities; and thirdly, increasing production and deliveries of fish and seafood inside and outside Russia. Greenhouse vegetable growing in Yakutsk is a particularly large project in this sphere. Greenhouses allowing fresh vegetables to be grown all year long in severe climates and permafrost have been built in the framework of this project. Construction began in 2016, it continued in 2020, and should be completed this year, 2021.

Due to the coronavirus pandemic, the forum this year was held, a combination of off-line and online format, with all epidemiological precautions observed. The Saint Petersburg International Economic Forum (SPIEF), often dubbed the Russian Davos, is the country’s main showcase for investors, attracting political and business leaders from around the world. The SPIEF is held annually, and since 2006 it has been held under the patronage and with the participation of the President of the Russian Federation.

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Putin and Biden meeting – a chance for a better world

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The whole world is looking forward to the meeting of the new US President Joe Biden with his Russian counterpart, Vladimir Putin. Although the Kremlin and the White House urge people not to expect too much from the June 16 summit, one still wants to believe that a personal meeting by the leaders of the two rival powers will lead to a thaw in bilateral relations and help defuse global tensions. At the same time, statements coming from the White House about negotiation plans sound rather vague. The bottom line is about “understanding Russia’s position and its aspirations.” The impression is that hundreds of Russologists working for the State Department, NSA, CIA and other agencies are unable to provide a definitive answer to this question, and the not very young 46th President of the United States has been forced to personally go for information. Moscow makes it clear that negotiations are a good thing, but the initiative comes from the United States, so the agenda will largely be agreed right on the spot.

At the same time, there are a number of key topics that the leaders of the two countries simply can’t ignore. Of course, there will be questions about human rights that Biden wants to ask Putin so badly, but the Russian leader too may want to ask about certain “inconvenient” things. First of all, about the United States participation in conflicts in the Middle East, where the “liberation movements,” indirectly supported by  Washington continue to attack Russian and Syrian government forces. In fact, the parts of Syria and Iraq controlled by the Americans and their allies have become areas where there is no effective conflict against terrorists. The militants from that area are killing people in Germany and France, and spreading the ideas of extremism and radical Islam throughout Europe.

The United States has every right to defend its interests in the oil-producing regions, but such methods are hardly acceptable. The Kremlin apparently has obtained enough evidence of the “dirty methods” of warfare practiced by the United States in the Middle East. The spare parts for the numerous drones shot down over the Khmeimim airbase alone prove beyond any doubt the American involvement in organizing aerial attacks on the Russian military. However, a dialogue between Russia and the United States could quickly extinguish the flames of war in Syria and, more importantly, help ensure Europe’s security against terrorist attacks. So, Putin has a very important trump card up his sleeve, which he can’t fail to play. The only question is how Biden will react to this win-win move by Moscow.

As to the question about human rights, it may prove rather unpleasant for Biden. During preparations for the summit, the Swiss government pointedly indicated (apparently at the suggestion of the White House) that the vaccine race continues. Geneva is ready to accredit, without PCR tests, journalists who have been vaccinated with Western vaccines, but not with Sputnik, which has already proven its effectiveness. Needless to say, the Russian negotiators also used their own country’s vaccine. However, such a move, designed to show once again who is the “boss” in the upcoming meeting, only reflects a complete disregard for the European`s right to vaccination, and this is only the beginning. And the demonstrative support and financing of the Russian opposition – hardly gives Biden any reason for accusing Russia of human rights violations.

Even the case of the Belarusian oppositionist Protasevich, who was taken from  the plane which grounded in Minsk due to a terrorist threat immediately brings to mind the “arrest“ of the plane of Bolivian leader Morales, or the US-approved extrajudicial detention of Russian sociologist Shugalei in Libya. In addition, the long history of the Guantanamo detention center hardly gives US officials any moral grounds to lecture anyone about human rights.

If, during the Geneva summit the United States and Russia can heal the festering wound of the Middle East conflict, this would be a giant step forward in the war on terror. The question is whether Biden will try to turn the dialogue with Putin into a series of accusations to increase his approval rating back home. A similar incident has already taken place and made the 46th President of the United States to look not so good. That being said, we can hope that in Geneva Joe Biden will lean back on his many years of experience and good knowledge of Russia, and emotions will not prevent him from achieving a breakthrough in relations with Moscow and mending bilateral ties, thus easing tensions in Europe and allaying peoples fear of a new global conflict.

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Russia, Europe Discuss Prospects for Cooperation at SPIEF’21

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Despite the deep-seated disagreements between Russia and the European Union, Kremlin is indiscriminately courting European business leaders. Ahead of the 24th St. Petersburg International Economic Forum [SPIEF’21] on June 2-5, President Vladimir Putin, in an official message, emphasized Moscow would forge a closer economic cooperation with its foreign partners and ready to share experience in various areas and further called for building constructive partnerships between members of the global community and expand business ties to effectively tackle the current critical global challenges and achieve sustainable development.

“We are ready to share our experience in areas such as healthcare and digitalization, and to work with partners to build better telecommunications, energy, and transport infrastructure. We also recognize the importance of addressing key issues facing the environment and climate,” according to the president’s message released on the official website.

Later at the plenary session held under the theme A Collective Reckoning of the New Global Economic Reality, Putin said, particularly about energy connectivity between Russia and Europe – “that Gazprom is ready to fill Nord Stream 2 with gas. This route will create direct links between the Russian and German systems and will ensure energy security and reliable gas supplies for the Europeans, like Nord Stream 1” and, in addition, emphasized readiness to implement similar high-tech projects with European and other partners in the future, despite all sorts of artificial barriers in the current political environment.

That, however, during the business discussion exclusively devoted to Russia-Europe, leaders of European business noted that strategies are needed for the improvement of relations between Russia and the European Union, and the necessity to develop a consolidated response to global challenges.

“In 2020, Russia faced four challenges. First, the pandemic, second, the collapse of oil prices, third, the devaluation of the Russian local currency the rouble, and the fourth, which is an ongoing challenge, the geopolitical context that does not make things easier. At the same time, Russia demonstrated good economic indicators. The global challenges are so disruptive that we need to come up with a joint approach and cooperate in fighting the pandemic,” according to objective views of Johan Vanderplaetse, Chairman of the Association of European Businesses (AEB) and President for Russia and the CIS, Schneider Electric.

Taking his turn during the discussions, Maksim Reshetnikov, Minister of Economic Development of the Russian Federation explained that the ultimate goal is to combat greenhouse gas emissions. In this context, technological neutrality, mutual recognition, and implementation of projects aimed to reduce carbon dioxide emissions are crucial. Building these mechanisms is a subject for strong international discussion, and there are high hopes for the climate conference in Glasgow this November.

Development of 5G networks can become a new touch point for Russia and Europe. But, no country, and no government can cope with all the tasks on their own. For example, 5G requires joint efforts, so European Union and Russia must work together to deploy this technology. Now both need to work together on 5G technologies in Russia and in Europe, suggested Arun Bansal, Executive Vice-president, Head of Market Area Europe and Latin America, Ericsson.

“Russia has amazing technological capabilities, and there are great companies. If we compare them with Western companies, if we join forces [connecting to 5G], we will all benefit from this,” added Johan Vanderplaetse, Chairman, Association of European Businesses.

During the discussions, the participants acknowledged that existing problems, especially the need to achieve international agreements. “We are now probably at the most difficult point in the development of our relations since the end of the Cold War. I think both sides value our relationship. Why are we at this negative point in our development? Of course, there are territorial and geopolitical issues, issues of human rights violations. I believe that all these problems contributed to the suspension of our political dialogue, which is now affected by uncertainty. In this atmosphere it is difficult to go back to the normalization of these relations,” according to Markus Ederer, Ambassador of the European Union to the Russian Federation.

Vladimir Chizhov, Ambassador Extraordinary and Plenipotentiary, Permanent Representative of the Russian Federation to the European Union (EU) explained that most of the effective formats available for the members of the European Union and the Russian Federation for interaction are currently on hold. On the other hand, Russia has not closed a single door neither has it imposed restrictions for Europe. All suspensions were initiated by the European Union.

Some believe that there should be solutions, suggested expanding the list of green projects and finding a compromise between government and business. “We categorized nuclear energy as a green project, and this was a crucial decision. We believe that, based on the criterion of greenhouse gas emissions, based on the principles of technological neutrality, nuclear power should be seen as clean energy. And secondly, we have developed a number of transitional projects that may not meet some highest standards, but for many industries in our country this is a big step forward,” says Maksim Reshetnikov, Minister of Economic Development of the Russian Federation.

For Markus Ederer, Ambassador of the European Union to the Russian Federation, it is necessary to use the opportunity to strengthen relationship in the context of green transformation and creation of green economy, as it will be a new field for cooperation that is of high interest for representatives of European business community. The more policy becomes oriented towards the development of a green economy, the more seriously moving towards stabilizing relations between Russia and Europe.

Regional experiments that allow to introduce a system of emission quotas in the regions. “We are working on a soft regulatory framework that will allow us to implement climate projects, take into account the carbon footprint of products that will make our entire system more transparent, while at the same time we are launching a system of more stringent regulation based on regional experiments. Many countries have followed this path. We are currently in the final stage of the Sakhalin experiment, which will enable individual regions, at their will and in agreement with the business, to declare the goal of carbon neutrality and introduce a system of emission quotas with the trading system, and so on,” stressed Maksim Reshetnikov, Minister of Economic Development of the Russian Federation.

“We need to focus on reducing carbon emissions and strengthening other areas. The Sakhalin project is also a great example of enhancing our cooperation, including in the future. These are efforts that we should focus on, excluding the political context. We must work on issues of compliance with the obligations of WTO member countries. The obligations of all WTO members must correspond,” concluded Markus Ederer, Ambassador of the European Union to the Russian Federation.

The St. Petersburg International Economic Forum, popularly referred to as SPIEF, brings together international business leaders, government officials and representatives of expert and media communities to discuss various topics and jointly search for effective solutions to the most pressing challenges in Russian and global economies. The SPIEF is held annually, and since 2006 it has been held under the patronage and with the participation of the President of the Russian Federation.

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