Prior to the dissolution of the Soviet Union, the deepening relationship between Russia and Turkey showed itself in the first agreement designed to enhance their economic relations. The agreement was signed on March 15, 1977, between them, which mainly embraced the cooperation in the promotion of the industrial development and energy affairs. Meanwhile, the parties also inked an agreement concerning the scientific and technical cooperations.
Therefore, energy had been a significant issue amid the negotiations processes between Russia and Turkey since that time. Although the relations many times have been strained between them with regard to the different geopolitical issues. However, the two parties have always seen each other more than an economic partner. In February 1986, according to an Intergovernmental Agreement traced back to September 18, 1984, a contract was signed with Turkey’s BOTAŞ company for delivering roughly 6 Bcm of gas per year for over 25 years between the period of 1987 and 2011.
By the signing of the agreement, the first shipment of natural gas to Turkey from the territory of the Soviet Union commenced in June 1987, via Romania and Bulgaria using the Trans-Balkan pipeline. The agreement, in fact, opened a new door in Russian-Turkish energy relations for the foreseeable future. Currently, in the light of bilaterally multi-dimensional relations, both parties currently, are eager to boost up their energy collaboration in a growing number of fields, including nuclear power. The increasing bilateral relations between them have always raised the specific questions regarding what are the key factors or elements of these relations. According to the policy analysts and interlocutors, Turkish-Russian relations are based on a pragmatic approach meaning an effective way of maximizing their mutual advantages. Another element of the relations stems from the political identity and the civil society (domestic and foreign policy links). The political identity within Turkey and Russia has recently changed the way that affected their foreign policy strategies and in particular, their bilateral relations. In Turkey, since the adoption of the National Security Strategy of 1997, Russia has not been considered as a threat to the security of the country, instead, the separatist groups and Kurds have been seen as major threats to Turkey.
The political shift toward a more “Eurasianist” orientation in Turkey was not only related to the rapprochement with Russia, however, even within Russia itself, a similar approach has been taken into account as a pivotal conception. Generally, pro-Western attitudes and stances of Russia have continued till the early 1996, after that time, the appointment of Primakov as the Foreign Minister leaded to a significant alteration towards the Eurasianism conception. This orientation had been expressed again and strengthened amid the presidency of Vladimir Putin since the adoption of the 2000 Foreign Policy Concept of the Russian Federation. Currently, as one of the main priorities of the Russian Foreign Policy, Eurasianist orientation rather than Europeanistone has taken a dominant role in Russia considering that it needs to improve its relations ina Eurasian arena with its increasingly major partners like China, India, Iran, Turkey, and etc. In this cooperation, Russia sees Turkey as an important regional counterpart, due to their recent convergent interests in some political issues. Turkey is the second major importer of Russian gas. From the standpoints of some analysts, and policymakers, the relations in economic, especially in energy sphere will last long and it is impossible to break down their relations easily due to the ”mutual interdependence” between these countries.
Having seen from the practice within the political arena, currently, the relations of two parties with the EU is a bit complicated, and also strained many times due to the different political tensions, and perplexing situations. At the same time, the Eurasianist attitudes of both Russia and Turkey once again show that they have convergent interests in any field rather than divergent ones that ignite even today, the geopolitical intrigue with its European partners. Therefore, it seems necessary to comprehend and then analyze their relations emerging from convergent interests. Take a simple example of the Syrian crisis, during the crisis, two parties have been opposed to each other concerning the Assad’s regime in the region. However, the changing political roles and attitudes give a much more place to scrutinize their relations.
As a result of these political changes in their positions towards Syrian crisis, leaded to the brokering the ceasefire agreement on 28 December 2016, and in fact, the West, mainly the Obama Administration were marginalized on this issue and were not given a free place for the Administration to take its chief position on this ceasefire agreement. It is very plausible that Russia, Turkey, and Iran brokered a ceasefire in the region, and undertook the major duties to fight against terrorism. However, in face of many death and casualties, Obama Administration did not do “any significant thing” to reach a deal on a ceasefire in Syria. In fact, Russia and Turkey did well what the Obama Administration didn’t do. Thus, although they demonstrated the different positions in Middle East problems, especially in the Syrian crisis, and even this crisis caused strained relations between them for some time.
However, both Russia and Turkey found a common ground in this issue also, and their collaboration remains supported by the significant economic and energy factors. The reliable relations between them once again revealed that it is possible to reach a deal in common ground and deal with the opposing standpoints and other problems, which showed itself in the example of the Syrian crisis. On the contrary, Turkey and Russia are not able to find out their convergent interests with the EU. The relations between the EU and two parties have soured due to the accession process of Turkey, the Western sanctions on Russia after the annexation of Crimea and etc. (Take an example of coup d’état happened on 15 July, 2016, during military coup attempt, the EU does not give any hand to Turkey to cope with this crisis, instead, Russia was the first country who supported Turkey amid the bloody occasion, in this context it can be said that friend is known only on rainy days or in trouble.)
Despite the souring relations due to the downing of Russian S-24 warplane between Syrian-Turkish border on 24 November 2015, the two counterparts again found a common ground to deal with the problem. Having strained relations of Turkey with the EU, forced Turkey to take a constructive approach toward Russia.
Upon the airplane incident, in June 2016, Erdogan called Putin and expressed “deep regret” over last year’s shooting down of a Russian warplane which violated Turkey’s airspace. During the phone talking, Erdogan added that he was eager to return the pre-crisis level of bilateral relations. Turkish spokesman Ibrahim Kalin highlighted that Erdogan used the communication to call for Russia to take decisive steps and joint efforts to solve regional crises and fight against anti-terrorist cooperation. He also added that both parties had agreed to take significant steps to enhance relations at a multi-track level.
After the bloody coup attempt in Turkey, Erdogan did his first visit to Russia. Amid the meeting near St. Petersburg on 9 August 2016, they reached an agreement on lifting the sanctions gradually imposed by Russia after it downed a Russian fighter jet in last November. The two also agreed to prompt-start huge energy projects, including a gas pipeline and a nuclear power plant. (It is needed to mention that the negotiations between Russia and Turkey on Turkish Stream also was suspended after the jet incident and St. Petersburg meeting paved a way to renegotiate on the energy project). During the joint press conference following the meeting, Vladimir Putin in his answer concerning the future relations mentioned: ”Do we want a full-spectrum restoration of relations? Yes, and we will achieve that… “Life changes quickly” he also added. ”Moscow-Ankara axis will again be a line of trust and friendship,” Erdogan also said.
The Petersburg meeting opened a new door towardsRussian-Turkish relations both in economic and energy field. Major steps were taken concerning the reigniting tourism cooperation and two major energy projects which are important for the development of both countries. Key factors among the plans is a Turkish Stream pipeline connecting the two countries and a nuclear power plant that Russia has to build in Turkey that is priced at 18 billion euro altogether. The Peterburg meeting became the initial step toward the future Russian-Turkish relations not only in the economic but also in the energy sector. As a result of this significant meeting, they reached a deal on medium-term agreement from the period of 2016 to 2019. Furthermore, the enhancement of the capacity of bilateral relations from $30 million up to $1 billion was considered one of the key ambitions. At the same time, taking the requests of Turkish and Russian traders and businessmen, Turkey and Russia will do the exchange of Russian ruble and Turkish lira in their trade relations and will be able to use easily rubles and lira in the next phase of their economic cooperation. Within the course of the meeting, they also agreed on several significant issues by signing the agreement composed of 12 key articles. The energy issue is the most significant part of the rapprochement between them. The main goals of 12 Articles are classified below.
Figure 7. showing the key priorities of Petersburg rapprochement based on 12 Articles for coming years.
|The revival of Senior Joint Cooperation Council||7. Acceleration of Akkuyu nuclear energy project.|
|2. Commencement of Charter Flights||8. Establishment of Russia-Turkey Joint Investment Fund (Council) estimated at $1 billion to strengthen economic collaboration|
|3. Removal of prohibitions that restrict bilateral trade, including agricultural products||9. Enhancement of cooperation in the defense industry|
|4. Thelifting of the ban on Turkish entrepreneurs||10. Installment of Turkey-Russia-Azerbaijan tripartite summit mechanism|
|5. Taking steps in common in order to achieve fully regeneration of visa-free regime||11. A line of friendship and trust between Ankara and Moscow|
|6. Giving Akkuyu strategic investment status.||12. Acceleration of Turkish Stream project|
Upon the Petersburg rapprochement, the next significant meeting took place in Istanbul during the 23rd World Energy Congress between 9 and 14 October 2016. It was the Russian leaders’ first visit to Turkey since his attendance at the Group of 20 Summit in Antalya. On 10 October, two parties came together to sign an Intergovernmental Agreement (IGA) on the construction of Turkish Stream Pipeline. The Russian and Turkish leaders have voiced support for the construction of Turkish Stream pipeline which was suspended in the course of the tensions between the two countries. Russian President Vladimir Putin and his Turkish counterpart Recep Tayyip Erdoğan underlined that they want to accelerate the implementation of the natural gas project as much as they can. Even on 10 March 2017, Turkish leader Recep Tayyip Erdoğan visited his Russian counterpart Vladimir Putin in Moscow concerning the development of further bilateral relations in some issues in particular, in Turkish Stream project. The Moscow meeting was largely hailed as a big success both in the Russian and Turkish Governments. According to the Moscow meeting, Turkey will set up an infrastructure to allow Russian National Payment system to be available in Turkey. As a result, Turkish Stream pipeline project will be implemented through the Turkish Deniz Bank. Besides, they reached an agreement on several issues, including the removal of trade sanctions gradually, the construction of the $20 billion Akkuyu nuclear power plant, cross-culturalism, and tourism.
The Turkish Stream pipeline would carry Russian natural gas to Turkey under the Black Sea and then on to European Union countries. The two leaders also agreed on the affordable gas prices in the first initiative of the pipeline project and Russia promised to reduce natural gas prices at the next delivery of gas supplies via the Turkish Stream. This delivery will not be direct, but via Turkey as an energy transit country, natural gas will be shipped to Europe. During the World Energy Congress, Putin in his speech highlighted that Russia has been providing energy for the EU for the past 50 years and again would supply via new gas projects including Nord Stream 2 and Turkish Stream pipeline projects in a more secure and a convenient way.
He also added that his country was ready to decrease the oil production and support OPEC’s initiative to cut production as a way to increase oil prices. In general, what does really Turkish Stream promise both Russia and Turkey for the coming years? What will be the consequences and future perspectives of Turkish Stream for these two countries? In order to answer these questions, first and foremost, it is necessarily needed to analyze the energy relations after the Istanbul Agreement took place on 10 October 2016. First of all, according to the IGA between Russia and Turkey, the construction of two lines of Turkish Stream accounting for 15,75 Bcm each from Russia across the Black Sea has to be started by the end of 2017 and be completed up to 2019. The first line is expected to supply gas to Turkey, while the other would connect the transit routes between Turkey and the EU to provide the EU with natural gas. The cost of the project is estimated to be $6 billion. Both lines will have to be completed by December 2019. Pursuant to the agreement, Turkey will provide special tax exemptions for the marine section of pipeline including the import of vehicles, equipment, and other necessary materials are released from the payment duties in Russia and Turkey. The Turkish side also removed the tax revenues on gas transportation. According to the Energy Minister Alexander Novak, Gazprom will construct and possess the offshore section of the pipeline. Turkey will build and own the first line of the land section for the delivery of gas to its territory. The second line via which the direction will be towards Turkey-Greece border for carrying gas to Europe will be owned by joint actions by Gazprom and BOTAŞ. As Russia mentioned before, Turkey has come to an agreement on the second line of the pipeline in exchange for a discount for gas prices promised by Russia. At the first phase of Turkish Stream project, Russia will finance the two strings of the pipeline. Reportedly, the total cost of Turkish Stream including its four strings will make up for €11.4 billion which is the half cost of South Stream estimated at €23.5 billion. The first line of the project estimated approximately €5 to 6 billion.
If Gazprom goes forward with the construction of the third and fourth lines of the project, beyond the Turkey-Greece border, the company will face the same regulatory obstacles as well as financial obstacles. Gazprom has already fulfilled the environmental impact assessment for the offshore and landline sections of Turkish Stream pipeline. In terms of challenges and perspectives of Turkish Stream, it can be said that the project will encounter several challenges due to falling oil prices, the economic sanctions imposed by the West, which have an impact on Russian companies and banks, financial constraints, and also the cost of the project. Those obstacles make it difficult to find financing for the gas pipeline. It shows itself in the example of South Stream project, in which Russia faced both financial constraints and at the same time, misperceptions with the EU and Bulgarian government caused the suspension of the project.
Regardless all these challenges mentioned above, Russia somehow will finance and complete the Turkish Stream pipeline because it wants to diversify its transit route bypassing Ukraine. Therefore, unlike South Stream, Turkish Stream’s credentials are convincing for both Russia and Turkey. For the future perspective, it seems that Russia is not inclined to politicize the Turkish Stream pipeline in the face of its economic and energy counterpart, Turkey. Both of them would get benefits from the project if they opt for the “flexible energy diplomacy” inclining to the EU. The Ukraine crisis re-emphasized the role of Turkey as an energy interconnector not only for the EU but also for. Russia well understands that via Turkish territory, it will be able to carry gas supplies to Europe and sees Turkish Stream as a potentially successful project in this way.
For the EU, the diversification of energy sources is one of the key priorities and it seeks for newly secure supply countries and considers Turkey as a potential energy hub and a transit country in order to attain the natural gas resources via secure pipelines namely TANAP, TAP constituting for the backbone of Southern Gas Corridor (SGC). Regarding the Turkish Stream pipeline, there are also possibly positive approaches and perspectives which mainly depend on the future relations between the EU and Russia and the EU and Turkey. In fact, the relations between them have been soured for the current time. Turkey is going to do negotiations with the EU concerning the future perspectives of relations after the results of 16 April Referendum, Turkish leader, Recep Tayyip Erdoğan added in his speech. Basically, the Russian-Turkish relations are based on “win-win position” or “positive sum strategy”, while it cannot be said the same for the EU because of current tensions between them.
For the future perspective, the Turkish natural gas appetite will increase significantly, and it will need to provide its natural gas demands in an effective way. In terms of energy relations, Turkish Stream is a good deal between Moscow and Ankara. However, Turkey also has to take a new energy policy to use its effective and generous geothermal energy resources at a domestic level. Before everything else, Turkey has to regulate its natural gas markets and adopt the energy saving program based on energy efficiency rather than supplying its increasing gas demands in the near future. In 2017, its growing gas needs are expected to increase up to 46.6 Bcm out of total 50 Bcm gas consumption.
On the other hand, if Turkey decreases its natural gas consumption in future decades, what will be the benefits of Turkish Stream?- Turkish Stream will be the significant project between the EU, Russia, and Turkey. Turkey will be the third energy party to supply gas from Russian territory along with the Black Sea on to the European countries. In this context, however, the EU side wants Turkey to regulate its gas markets based on the EU prerequisites and eliminate the monopoly on gas prices while delivering to the EU. From Turkey’s perspective, it is not a difficult deal, whereas, it will take a bit time to regulate and adopt the energy frameworks and rules requested from Europe. Regarding the EU, it has to change its way of stances and perceptions toward Turkey and Russia and should have to more elaborate on engagement with both Russia and Turkey.
If the EU wants either Turkey or Russia to undertake responsibilities coming from the EU energy rules, in turn, the EU has to give a room (place) for both countries for the sake of effective energy partnership. In terms of Russia, in the future, Russia will not politicize the Turkish Stream that it has in Ukraine because Turkish is both Russian real counterpart as well as an economic partner in Eurasia and will not restrict the improving role of Turkey in Eurasia.
Since the 1970s, bilaterally energy relations between Russia and Turkey have been developing to date.(See Annex 25 below) Russia at least for its economic development and energy revenues will provide the EU with its gas in the future. For the present time, there is not a potential alternative for the EU to meet its increasing natural gas demands. It is the overt fact that the Southern and Central European countries have over dependency on Russian gas from 60% to nearly 98%. Some of the European countries (Norway and etc.) produce energy resources for the EU countries, but it is not enough for Europe to meet its energy demands in coming years. When it comes to the revaluation of the EU stances, it should have to change its way of “non-engagement” with Russia.
At least, the EU comprehends well that at the present time it has sell-purchase issues in the energy sphere. Hence, regarding the dynamics of energy relations between Turkey and Russia, it can be said that the successful deal will be continued in the coming decades. Both of them need each other in tourism, trade, economy, and energy fields. In order to pave the way for the future collaboration between Turkey and Russia, they also evaluate the role of the EU and involve it in their projects. The involvement of the EU in Turkish Stream will gain benefits for all parties, if they choose the policy of comprehensive energy diplomacy taking into consideration the interests of each party. Therefore, the energy relations between Turkey and Russia in the foreseeable future are convincing. What will happen in the near future depends mainly on the progress of the relations with its European partners…
When it is needed to take a general view on Russian-Turkish relations, it is clear that their relationship was established on behalf of reaching their specific interests and purposes. Certainly, the relations between them can be considered both convincing and stable, because of the fact that the relationship between states based on ensuring of any kind of interests is more influential than other simple relations without any purposes. In Russian-Turkish energy relations, it is important to mention a key factor called “appropriate balancing” emphasized by Gideon Rose. The appropriate balancing as a key element of neo-classical realism can be applied better in Russian-Turkish energy relations. “Appropriate balancing” arises when a state correctly comprehends another state’s intentions, interests and balances properly. If the appropriate balancing would be applied in the Russian-Turkish energy relations, it can be said that both of them are aware of their purposes and interests toward each other.
This relationship is a kind of preserving the balance of power, ensuring their internal and external security in the region. So that, their relationship can be called purposeful or intentional relations (In Turkish language, it called çıkarlı ilişkiler or çıkarlar) which envisage the serving of both sides’specific purposes and interests. As Russian President Vladimir Putin stated: “States do not have constant friendship relations; states have constant interests and ambitions.” Over the historical period, their relations have had a competitive character more than cooperation in the region. However, on behalf of ensuring their interests,(Turkish growing demands for gas resources, ambition of being an energy hub and energy transit country between East and West, and Russian ambition of taking huge dominance over Eurasian and European regional energy bazaar) domestic incentives and other external factors, the current situation forces them to take a constructive approach in their relations compared to the previous relations of that they had.
At least, if the pragmatic side of relations between Russia and Turkey is taken into consideration, in this case, the development of their relations both in energy and other fields is unavoidable. One of the most important strengths of neo-classical realism is its attention to systemic and unit factors as well as historical clarification simultaneously. This kind of strength makes the theory more relevant and applicable to the chosen research than any other version of the realism theory. In neo-classical realist theory, there are interconnected relations with enticements, motives, perceptions, and the foreign policy of states which make states attempt for maximizing their domestic security issue. (Turkey is eager to maximize its energy security in the region within a domestic policy through collaborating with Russia in the energy field, in turn, Russian interest of maximizing its security issue in the example of diversification of its transit routes bypassing Ukraine) Thus, by taking into consideration specific interests, purposes and security issues (mainly, domestic security which related to the energy security),it is apparent that Russia and Turkey could be strategic, an economic and particularly, energy partner more than so-called “a friendly colleague” within an international system.
Sergey Lavrov: Violations of journalistic rights and discrimination against media are increasingly evident
Restrictions imposed by legislative and executive authorities may negatively impact the work done by journalists in Russia. The OSCE Representative on Freedom of the Media, Harlem Désir, raised this concern during the OSCE conference on media freedom in Russia and in the OSCE area, held in Moscow earlier this month. He also drew attention to the problem of the security of journalists and the impunity of those, who commit crimes against them.
Harlem Désir singled out as the most dangerous laws on insulting powers-that-be, fake news, the law on “sovereign Internet,” as well as the abuse of the law on countering extremism and the law on foreign agents, particularly in the case of Deutsche Welle. Mr. Désir added that since Russia had voluntarily committed to abide by OSCE standards, it is called upon to protect media freedom, just like any other OSCE member, which he always appeals to in cases of entry bans and obstruction of accreditation for Russian journalists.
While acknowledging the seriousness of the above trends, Harlem Désir still emphasized that the very fact that journalism remains an unsafe profession is an overarching problem that needs to be addressed. He recalled the killings of Anna Politkovskaya in Russia, of Pavel Sheremet in Ukraine and of the Maltese journalist Daphne Caruana Galizia, all of which have gone unpunished, as well as incidents of rough treatment of journalists during the recent protests in Moscow. He welcomed the release of Ivan Golunov, Kirill Vyshinsky and Igor Rudkov, all of whom took part in the conference as speakers. He expressed concern about the fate of the recently detained Svetlana Prokopyeva, and singled out the case of Kirill Vyshinsky as highly important as it involved two OSCE countries, and also the release of Ukrainian citizens Roman Sushchenko and Oleg Sentsov. Kirill Vyshinsky thanked the OSCE representative for his active participation and handed him a list of journalists currently being prosecuted in Ukraine.
The Russian Foreign Minister Sergey Lavrov is concerned about the non-inclusive and opaque nature of projects that are implemented in circumvention of multilateral platforms, such as the Conference on Media Freedom in London, which Russian journalists were not allowed to be present at. Russian media were likewise barred from attending last year’s OSCE conference in Kiev (while anyone could be freely accredited at Moscow’s conference, Lavrov noted). Sergey Lavrov also criticized the “Journalism Trust Initiative” media questionnaire proposed and organized by Reporters without Borders.
“This is not just an initiative by this particular non-governmental journalistic organization – it is endorsed by the French government,” Lavrov said.
“Each time someone wants to find information on a particular topic, modern technology will dish out for him exactly what Reporters Without Borders thinks is right,” he added. Lavrov said there was a link between the current trends to constraint freedom of speech and discriminate against the media to the West’s desire to reduce the “Russian-language area” in the world and its “fear of fair competition in the information space.”
Sergey Lavrov criticized attempts to deny accreditation for Deutsche Welle, as well as any other media outlet in a clear reference to calls earlier made to this effect by the State Duma lower house of the Russian parliament to recognize the German news agency as a foreign agent. Lavrov added that DW journalists had been summoned to the Foreign Ministry for a meeting with the deputy director of the Ministry’s Department of Information and Press where they admitted as “incorrect” their coverage of the summer protests in Moscow. Maria Zakharova explained that Deutsche Welle published routes of unauthorized marches, which she said could be construed as political agitation.
Commenting on the laws adopted in Russia, which can hamper the work of the media, Sergey Lavrov noted that they are fully in line with the provisions of the International Covenant on Civil and Political Rights, which allows certain restrictions of free speech in cases when it violates state laws concerning protection of morality and national security.
“We will protect our culture and values, including by legislative means,” Sergei Lavrov emphasized. He proposed to reassert the commitments to safeguarding freedom of speech and access to information made by the OSCE countries during the 1990s at the forthcoming meeting of the OSCE foreign ministers in Bratislava, and to hold a roundtable within the OSCE framework where journalists could agree how best to draw a line between quality journalism and propaganda.
From our partner International Affairs
Global protests: Russia and China risk ending up on the wrong side of history
Widespread perceptions see Russia together with China as the rising powers in the Middle East as a result of America’s flip flops in Syria and US president Donald J. Trump’s transactional approach towards foreign policy as well as Russian and Chinese support for regimes irrespective of how non-performing and/or repressive they may be.
Russia has sought to capitalize in other parts of the world, particularly Africa, on its newly found credibility in the Middle East as part of its projection of itself as a world power on par with the United States and China.
African leaders gathered in late October in the Black Sea resort of Sochi for the first ever Russian African summit chaired by president Vladimir Putin. China has hosted similar regional summits.
Mr. Putin has proven adept at playing a weak hand well and for now, Russia alongside China, that has the financial and trading muscle that Moscow lacks, are basking in their glory.
Yet, Russia and China could find themselves in tricky situations with protests across the globe from Latin America to Hong Kong threatening to put the two powers on the wrong side of history.
Iran, Russia’s partner in supporting Syrian president Bashar al-Assad and a strategic node in China’s Belt and Road initiative, is already struggling to come to grips with being in the bull’s eye of protesters.
Protesters in Iraq have denounced Iranian influence in the country while Iran’s Lebanese Shiite ally, Hezbollah, is part of the elite that protesters hold responsible for their country’s economic malaise.
Russia and China are well aware of the risk. Not only because of the resilience of protest in Hong Kong but also because of past popular revolts in former Soviet republics that constitute Russia’s soft underbelly and in some cases border on the strategically important but troubled Chinese north-western province of Xinjiang.
Recent protests in Kazakhstan were as much about domestic governance issues as they were about Chinese influence in the country and the crackdown on Turkic Muslims, including ethnic Kazakhs in Xinjiang.
Central Asia, moreover, is potentially for China a black swan. It is together with Southeast Asian nations Laos and Cambodia, home to countries most indebted to China.
A recent study by scholars at Harvard University’s Kennedy School, the University of Munich and the Kiel Institute for the World Economy concluded that about half of Chinese overseas lending remained unrecorded leaving Central Asian and other nations with no precise oversight of their debt.
“These hidden overseas debts pose serious challenges for country risk analysis and bond pricing,” the study warned.
The risk of ending up on the wrong side of history looms even larger with Russia seeing prevention and/or countering of popular revolts as one of its goals in attempting to stabilize the Middle East, a region wracked by conflict and wars.
Russia, as part of its stabilization effort in the wake of its intervention in Syria, has proposed replacing the US defense umbrella in the Gulf with a multilateral security arrangement.
“Russia is seeking stability which includes preventing colour revolutions,” said Maxim Grigoryev, director of the Moscow-based Foundation for the Study of Democracy, using the term employed to describe popular revolts in countries that once were part of the Soviet Union.
Echoing Kremlin policy, Mr. Grigoryev said Syria was “a model of stabilizing a regime and countering terrorism.”
Russian military intervention in Syria has helped president Bashar al-Assad gain the upper hand in a more than eight-year long brutal war in which the Syrian government has been accused of committing crimes against humanity.
Russia has denied allegations that its air force has repeatedly targeted hospitals and other civil institutions.
Russia’s definition of stability with Syria as its model is unlikely to go down well with youth-driven protests that have already affected twelve of the Arab League’s 22 members.
In some of the most dramatic incidents, this year’s popular revolts forced the leaders of Algeria, Sudan and Lebanon to resign. Iraqi prime minister Adil Abdul-Mahdi is next in line.
Latin America and Africa, like the Middle East and Central Asia, home to often poorly governed, resource-rich countries with youthful populations, are in many ways not that different.
Some Latin American leaders, including Argentine Foreign Minister Jorge Faurie and Luis Almagro, the secretary-general of the Organization of American States, have denounced what they see as interference in protests in Chile, Ecuador, Bolivia and Haiti by two Russia and China-backed countries, Venezuela and Cuba.
Ecuador’s interior minister, María Paula Romo, said last month that authorities had arrested 17 people at an airport, “most of them Venezuelans . . . carrying information about the protests.”
Policy analysts Moisés Naím and Brian Winter argued that irrespective of whether Venezuela and Cuba have sought to exploit continental discontent, “Latin America was already primed to combust.”
Messrs. Naim and Winter attribute popular anger to disappointing economic growth, stagnating wages, rising costs of living, mounting inequality, and corruption on the back of a commodity boom that significantly raised expectations.
Russian and Chinese support for embattled regimes at the risk of alienating protesters, who have proven in among others Chile, Iraq and Hong Kong undeterred by repressive efforts to squash their protests, will have paid off if it helps engineer the kind of stability Mr. Grigoryev is advocating.
Russian and Chinese leaders may be banking on a development akin to what Messrs. Moses and Winter describe as the emergence of repressive Latin American regimes in the 1970s and 1980s as a result of leaders’ failure to tackle slowing economic growth. The failure fuelled a decline of faith in democracy and the rise of populists.
“The same gears may churn toward mayhem and division, sown from within Latin American countries and without. Venezuela and Cuba may not be the main reason for the current protests. But if the region continues down its current path, it will be vulnerable to the next conspiracy, whether from Havana, Caracas, or somewhere else,” Messrs. Moses and Winter warned.
Events elsewhere in the world may well unfold differently. Yet, Russia and China could ultimately find themselves on the wrong side of history in an era of global breakdown of popular confidence in political systems and incumbent leadership and increasingly uncompromising, determined and resourceful protests.
Said Timothy Kaldas, a senior fellow at the Tahrir Institute for Middle East Policy, commenting on the protests in the Middle East: “This isn’t a revolution against a prime minister or a president. It’s an uprising demanding the departure of the entire ruling class,” the very people Russia and China would like to see remain in place.
Russia-Africa Summit: walking hand in hand through history
The first-ever Russia-Africa summit held from 23-24 October in Sochi, Russia, marking the culminating point of the return of Russia to Africa, with more than 50 African leaders and over 3,000 delegates invited. This convening is only another illustration of the recent increase in economic, security, and political engagements to foster Russia-Africa relations.
The summit is expected to deepen relations between the Russian Federation and countries of the African continent at both bilateral and multilateral levels; forge closer collaboration on regional and international issues of common interest, raise strategic dialogue between Russia and African countries to a qualitatively higher level, and contribute to peace, security and sustainable development on the African continent. The Russia-Africa Summit will also contribute towards the overall objective of addressing the aspirations of African countries as encapsulated in Agenda 2063. As the continental development blueprint, Agenda 2063 calls for a people-centered developmental process that ensures, inter alia, economic diversification and growth in order to eradicate poverty, unemployment and inequality
On 16th of October, a seminar under the theme “Discussion in the Run-Up to the Russia-Africa Summit” was held in South Africa, unique strategic partner of Russia in BRICS organization, at the University of Pretoria. The main speaker at the event was the Ambassador of the Russian Federation to South Africa Ilya Rogachev, who delivered a comprehensive speech, which described in detail the essence of the upcoming historical event.
Following is his presentation:
This will be the first event of such scale and magnitude marking an important milestone in the history of relations between Russia and the African continent. All eyes are on us now. I would like to remind that Russia, in all of its incarnations, and the peoples of Africa have always walked hand in hand through history.
We share a common and eventful past, where as allies we strived together for a better world. The Soviet Union was the only global power that has never pursued colonial policies and had never had a detrimental presence in Africa. The very idea of colonialism has always been an alien concept to us, one that to our mind should be abolished from the face of the Earth in all its forms.
The Soviet Union was most heavily involved in the rise of the African continent to independency. Among the most important cornerstones of the Soviet foreign policy was bringing an end to the colonial era, supporting national liberation movements, providing all kinds of assistance to young African nations: economic, infrastructural, military, humanitarian and educational. These pages of history cannot and shall not be rewritten, this friendship will forever be embedded in the history of relations between Russia and Africa.
USSR’s involvement and interest in Africa were guided by the imperative to «protect the interests of the oppressed nations and their right for self-determination and creation of sovereign states». Next year marks the 60th anniversary of the adoption of the United Nations Declaration on the Granting of Independence to Colonial Countries and Peoples of 1960. This historical document was drafted on the initiative of the USSR, who had been championing the cause of a free and independent Africa on the global arena for many years.
Needless to say that this enormous and, I would like to stress – selfless – support that the Soviet Union rendered the people of Africa throughout the XX century won over many hearts on this continent.
Sadly, the collapse of the Soviet Union put our partnership on halt. The 1990s were a time of hardship for my country and its people. Even after the resurgence of the 2000s it took us some time to gather and re-establish ourselves as a global leader on the international arena and a prominent economic and technological power. I would not necessarily call these years a time of neglect towards Africa, as some try to put it, but admittedly, to a certain extent we lost the pace and intensity in our cooperation. Speaking in plain terms, now we have some catching up to do.
This is what the upcoming Russia-Africa Summit is meant to achieve: to put our partnership back on track, giving it new dimensions, pertinent to the XXI century, and providing dynamics for further growth. It is designed to set ambitious goals and look for areas of fruitful and practical cooperation. Intergovernmental and business opportunities clearly attract attention from both sides, our mutual interest in deepening cooperation is evidently high. This is why if you look at the expanded programme outlines you would fine nearly every possible topic on the agenda: from the role of media on the African continent to the importance of peaceful conflict resolution.
We envisage both the Summit and the Forum as a prospective platform for regular contacts, governmental and business. It is supposed to be a mechanism, which will allow us to give the much needed impulse to our cooperation, keep track of the progress already made and explore new opportunities. We consider it a platform where equals meet and where every voice is heard.
It is no coincidence that the Summit is hosted jointly by the Russian Federation and the African Union. There is great significance to this fact: unlike some other powers, which are used to looking down at Africa from their high horse, we do not consider Africa and African nations as junior partners. In fact, Russia strives for an equal cooperation based on mutual respect for the interests of all the involved parties.
I would like to draw your attention to this particular aspect, as it is purposefully misrepresented in some of the clearly biased publications and articles that appeared recently in South African press and elsewhere. These experts keep describing Russia’s return to the continent as a premise for a struggle for influence and resources among the global powers.
I would like to discourage that line of thought and tell the analysts, that they are wide off the mark. Some might still be looking at Africa through the lens of a colonial eye. Frankly speaking, this is an outdated and historically void way to behave on the global arena and in international relations. This is not our way. We do not develop and conduct foreign policy and international cooperation from such assessments. Our Western partners keep returning to the concept of a zero-sum game, where one’s gain means another one’s loss – imprinting this crooked assumption on the minds of experts and journalists.
Our mindset is different, we say: let’s cooperate and grow together. Africa is the most dynamically developing continent with rapidly growing economies that shouldn’t be regarded as a mere resource base. It is time to build long-lasting partnerships rooted in the principles of trust and equality. This stance resonates with our African partners. No wonder that our positions on the global arena are largely aligned. We share similar values defined by respect for national sovereignty and international law, as well as similar approaches to tackling current global challenges and threats. The world and the African continent need to find sustainable solutions for pressing issues. It should be done not through a dictate of a group of ‘elite’ countries and the rules that they impose on everyone else, but through the balance of interests and respect for all viewpoints. International law, based on the UN Charter and the existing legal framework, not some new «rules-based order» concepts, should serve as the basis for building relations.
We have always been adamant supporters of the formula «African solutions to African problems», including in the United Nations. It is our firm believe that nations and peoples themselves should resolve their problems, with the expertise and advice of the international community if required. In the past decade we have seen all too well what blatant interference in other countries affairs leads to, the results of the attempts to push for regime change is evident as well – North Africa and the Middle East are still dealing with the fallout from the so-called Arab Spring.
Today Russia enjoys strong bilateral relations with many African countries, South Africa included. The cooperation encompasses many spheres including infrastructure projects, space industry, telecommunication, healthcare, education, tourism, mining and others. The total volume of Russia’s investment in Africa has exceeded 20 billion dollars. The overall trade volume of has increased by many times since the 1990s.
One of the key issues that the African continent faces and that Russia has the expertise to assist with is the energy crisis, a growing shortage of generating capacity that holds back economic development. In 2008, Russian diamond company “Alrosa” finished the construction of Chicapa hydroelectric power plant in Angola; in 2010, Tanzania and Russia signed a deal to build the Rumakali hydropower plant. There are ongoing negotiations on the cooperation in the energy sector with such countries as Sudan, Ethiopia and the DRC.
Russia is helping more than 20 countries in Africa to develop their nuclear industries for energy and medical purposes. In 2014, Russia and Egypt signed an agreement on the construction of El Dabaa nuclear power plant – Russia will provide a $25 bln loan to Egypt for the construction that will create 50’000 job opportunities and add 4,8 GW generation capacity to the grid. In 2017, an agreement on the development of atom energy projects was concluded with Nigeria. A nuclear research centre is to be built in Zambia.
One of the most promising projects in infrastructure development is the establishment of Russian industrial free trade zone in Egypt, which will focus on manufacturing agricultural machinery and hardware. We are also considering participating in the ambitious project of the Trans-African railway connecting Dakar and Djibouti, spanning across the continent.
Russia, and the Soviet Union previously, have always assisted African nations in skill development and education: millions have received highest quality degrees in the past decades, over 15’000 students from African nations are currently studying in Russia. A decision has already been made to substantially increase the number of scholarships in the next few years.
Russia continues to provide humanitarian assistance to those who request it in Africa. In 2017 alone, Russian aid exceeded 1 billion $. Russian Federation is the 5th biggest sponsor of the UNIDO Industrial Development Fund, a top-tier contributor to the UN World Food Programme and the World Health Organisation.
Another important area of cooperation is the assistance in fighting epidemics and diseases that scourge the African continent. For example, the recent outbreak of Ebola virus in the Western African countries prompted Russian doctors to develop not one but two groundbreaking vaccines. The Russian-made vaccines were the first to be tested and to have reach the patients. The vaccines are now being shipped to the Republic of Guinea, the DRC and other countries.
The issues of peace and security are also in the focus of attention. Fighting terrorism, drug- and human-trafficking and other criminal activities are among Russia’s priorities in the international security area. Making certain that conflict resolution in Africa is carried out without the use of violence and within the framework of political dialogue is another keystone of our approach. Russian Foreign Minister Sergey Lavrov has repeatedly extended the country’s full-fledged support to the African Union’s initiative ‘Silencing the guns by 2020’. Last September the Russian Federation as the Chair of the UN Security Council convened a UNSC Meeting on ‘Peace and Security in Africa Partnership to Strengthen Regional Peace and Security’ to give Africa an additional platform.
And this is just the tip of the iceberg whereas Russia-Africa interaction is concerned. So to round it up, the summit has high hopes, but it can already be said with confidence that the event will go down in history as an important milestone in cooperation between Russia and the countries of the continent.
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