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Russia and Multilateral Diplomacy in East Asia

Anton Tsvetov

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When Russian Foreign Minister Sergey Lavrov attended the ASEAN Foreign Ministers’ Meeting in August 2018 it was revealed that President Vladimir Putin was planning to take part in the upcoming East Asia Summit (EAS) in Singapore this November. This will mark the first time that the Russian leader has attended the event since the country became full member of the EAS. Putin will also pay a state visit to Singapore and take part in the Fourth ASEAN–Russia Summit [1].

The President’s participation in the EAS has been a long time coming and his attendance will demonstrate that Russia is taking multilateral diplomacy in Asia seriously and that it cares about the EAS as the main ASEAN-centred security mechanism. Does Vladimir Putin’s upcoming trip to Singapore indicate that Russia is pushing a new agenda in its Asian policy?

A List at the End of a List

Just like there seems to be no country whose geographic position is not strategically advantageous, it would seem that there is no area of Russia’s foreign policy that is not a priority of some sort. In the official discourse, it is not customary to talk about Russia’s own pivot to the East, because formally there was no change in the priorities and East Asia has always been one. But speaking realistically, it can also be said the priories remain unchanged in the sense that Asia is still a secondary focus for Russia’s foreign policy efforts compared to other areas that are of priority concern mostly because they are prone with conflict.

At the same time, while Russia and the West seem unable to resolve their protracted conflict, Asia remains an important source of good news for Russia, an area where constructive forms of international relations still prevail over various forms of geopolitical competition. The Eastern Economic Forum held in Vladivostok in early September, which was attended by the heads of state or government of China, Japan, South Korea and Mongolia, is a good example of such positivity.

Perhaps it is image of relative harmony that makes the topic of Asian multilateral institutions less interesting for observers and relegates it to the bottom of the list of the priority areas of Russian policy in Asia. When Russian official speak of the country’s Asia policy, they usually start with Russia’s bilateral relations with regional leaders – China, Japan, South Korea and India – before turning to the Korean nuclear problem. Only then do they list the various multilateral diplomacy institutions around the Association of Southeast Asian Nations (ASEAN): the ASEAN–Russia Dialogue Partnership; the ASEAN Defence Ministers’ Meeting with Dialogue Partners (ADMM-Plus); the East Asia Summit; the ASEAN Regional Forum (ARF); and Conference on Interaction and Confidence-Building Measures in Asia (CICA), among others.

Meanwhile, multilateral diplomacy in Asia is an agenda item that checks several crucial boxes for Russian foreign policy ideology.

First, the region is home to rising powers which, according to the official Russian theory, will build the new ‘polycentric world’ and these players include both individual countries such as China, India or Indonesia and organizations like the SCO and ASEAN itself. Second, the principle of non-alignment, multilateralism and inclusivity in the form of ASEAN-centric organizations is still in vogue here, that is, there is ‘Asian NATO’, but instead a dense network of inclusive dialogue platforms (even North Korea takes part in ARF meetings). Third, ASEAN and larger formats around it continue to take the principle of non-interference in the domestic affairs of states very seriously and avoid discussing each other’s domestic workings, which is also in the set of values that Russia is promoting on the international arena.

At the same time, all of this ideological affinity is not easily converted into practical cooperation. Every year, dozens of events are held within the framework of the ADMM, ADMM-Plus, ARF and EAS platforms, which are attended by the ASEAN dialogue partners. Diplomats from the partner countries are well aware of how difficult it is to maintain meaningful participation in all of them. It was only last year the Russia – last of the dialog partners – opened a full representation to ASEAN and given the limited international competencies of most Russian ministries, the Ministry of Foreign Affairs and the relevant subdivisions of the Ministry of Economic Development remain disproportionately burdened with maintaining Russia’s participation in these formats.

In practical terms, the most visible step taken by Russia in multilateral institutions in Asia was the 2010 initiative to launch a “dialogue on issues of forming a new security and cooperation architecture in the region” within the EAS format. The set of characteristics that make up this system changes from speech to speech, but is usually said to be based on principles of collectiveness, multilateralism, equality, inclusiveness, openness, non-alignment and indivisibility. In the real world, Russia’s initiative is embodied in a series of working-level workshops on the regional security architecture. Six such workshops have been held and are usually attended at the level of division chiefs. There are also plans for a format where EAS ambassadors in Jakarta are to discuss the topic.

An initiative of this kind clearly appeals to ASEAN as an organization in the very centre of multilateral diplomacy in Asia, all the more so because the selection of principles proposed by Russia is recognized, at least vocally, by almost every single member of the United Nations. But even this seemingly win-win ideological construct runs into harsh geopolitical realities. In private conversations, ASEAN diplomats have in recent years expressed scepticism about Russia’s ideological leadership in this initiative: they say that it is not Russia’s place to talk about the indivisibility of security and then conduct joint military exercises with China, which the smaller countries in Southeast Asia evidently fear.

However, the main difficulty for the Russian initiative is different – as with many other processes in ASEAN-centric formats, it is not entirely clear whether an initiative on the creation of a new security architecture will come to life beyond workshops and statements. There is reportedly a collective document that could, following discussions, form the basis for a set of rules of conduct in the Asia-Pacific Region that could then be converted into another document that may even turn out to be legally binding.

Russia’s participation in ASEAN-centred multilateral mechanisms is not limited to the initiative. For example, Russia along with Laos is co-chair of the ADMM-Plus Expert Working Group on Humanitarian Mine Action. In 2014–2017, it co-headed (with Thailand) a similar group on military medicine. In 2019–2020, Russia will, alongside Indonesia, co-chair the ARF Inter-Sessional Meeting on Counter Terrorism and Trans National Crime.

The (Not) New Sheriff In Town

Multilateral diplomacy in East Asia has traditionally enjoyed the support of all the key players in the region. However, this is mainly due to its openness and inclusivity. Unfortunately, this inclusivity proceeds from avoiding any kind of hard position or going against the consensus. Serious security issues are discussed on these multilateral Asian platforms that first seek to not offend anyone be uncontroversial and only then to be effective or even meaningful. What is more, the major powers support the ASEAN centrality because they know that ASEAN is in no condition to enforce any decision. This means that the United States and China can act pretty much as they please without feeling any kind of restrictions on the part of the regional community.

None of this means, however, that the numerous dialogue mechanisms that exist in the Asia-Pacific region are purely imitative and decorative in nature. They perform an important function – namely, socialization and the creation of an information flow among states. This mutual awareness of each other’s intentions, interests and positions should in theory build trust among all players or at least remind them that when crisis strikes there is a platform where they can talk before taking up arms. In other words, the multilateral security system in Asia works, although it does not meet the grand expectations of observers who want to see it as a safeguard of international security in Asia. On the other hand, recent experience of Europe demonstrates that we relying too much on collective security systems.

When faced with any serious security challenge, the countries in the Asia Pacific rarely rely on multilateral institutions for protection or mediation. And the fact that they turn to more traditional foreign policy instruments underscores the inability of multilateral mechanisms to fulfil their stated functions. The new concepts and strategies that have emerged in Asia and are designed to counterbalance China will be seen by many smaller countries in the region as an opportunity to gain real protection from Chinese assertiveness, at least to the extent possible.

In the coming years, these alternative formats will likely revolve around all sorts of ‘Indo-Pacific’ initiatives and platforms. The revived U.S.–Japan–Australia–India quadrilateral dialogue – no doubt aimed at new and better containment of China – will also extend its cooperation formats to a wider audience of partners in Asia. The key partners here will most likely be Indonesia, Singapore and Vietnam.

Another example is America’s Indo-Pacific Economic Vision announced recently as the economic leg of the ‘free and open Indo-Pacific’ strategy. The long-awaited trilateral partnership for Indo-Pacific infrastructure investment has also arrived. While these initiatives do not seem to be as ambitious as China’s Belt and Road Initiative, they do already have an advantage over it – they are not Chinese. In today’s climate of growing fears of debt trapping and Chinese ‘sharp power’ this gives a measure of hope to U.S. and Japanese infrastructural investors aiming at Southeast Asian and Eurasian markets.

All this creates challenges for the relevance of multilateral institutions in Asia. When the Quad re-emerged November 2017, the news caused concern in Southeast Asian countries: what will this mean for ASEAN centrality? This concern was addressed by a diplomatic appeasement campaign, as Deputy Assistant Secretary of State Alex Wong went on an extensive tour of Asia to calm the waters. An important result of this work was the joint statements made by the Quad foreign ministries following the second meeting on June 7, 2018, with all four texts essentially boiling down to a reaffirmation of ASEAN centrality.

Even without these new plurilateral formats, ASEAN-centred mechanisms were a target for criticism. For example, every time the situation on the South China Sea flares up, ASEAN is criticized for not being able to adopt a unified position. The ten member states of ASEAN are to varying degrees willing – or, rather, unwilling – to upset China. This is why they prefer to adopt a position with the lowest common denominator. ASEAN and China have been developing a Code of Conduct for the parties in the South China Sea for several years now. The document should be an important milestone in the settlement of the conflict, or at the very least reduce tensions in the region. A Single Draft was only agreed upon this year, and it is nothing more than a set of asks from all parties – even the most glaring contradictions have not been removed.

What Russia Brings to the Table

The problems of ASEAN-centred mechanisms are not unique to multilateral diplomacy and, of course, do not diminish the significance of the EAS for Russia. First of all, Vladimir Putin’s participation in the East Asia Summit is not as important for the EAS as such as it is for Russia–ASEAN relations. The East Asia Summit is important as a vanity project for ASEAN, a living embodiment of the principle of ASEAN centrality, when all the great powers in the Asia-Pacific Region come together under ASEAN convening power to discuss regional issues. The declaration following the Third ASEAN–Russia Summit in Sochi noted, in typical ASEAN-speak, that more attention on the part of Russia towards the EAS would serve as an important step on the way to upgrading the status of the dialogue partnership between Russia and the ASEAN to ‘strategic dialogue.’

In this sense, the President’s trip to Singapore in November can only be a success. Russia will remind everyone of its status as a major player in the region and share a vision of the regional security system that will be difficult not to support. President Putin will talk about the Greater Eurasian Partnership – Russia’s idea of a vast space with unified rules of the game in trade an investment, stretching all the way from the European Union to ASEAN. Commentators will point to Russia’s significant potential to play the role of a third force, whose appeal will only grow as the competition between China and the United States intensifies.

The ‘third force’ idea has long existed in the Russian discourse on Asian politics but requires critical assessment. There are two key weaknesses in the argument.

First, Russia does not enjoy a high level of influence in Southeast Asia, and its objective ability to bring attractive proposals to the region is also limited. While the countries in the Indo-Pacific currently account for a third of Russia’s foreign trade, for none of these countries does Russia itself exceed 3 per cent. Russia has unique products and services in several strategically important sectors – arms trade, information security, minerals and energy. However, this proposal has existed for several decades now, while the results (with the exception of Vietnam) have been spotty. The same goes for the Russian military presence in the Western Pacific; this presence is reasonably limited, which, on the one hand, reduces the risk of Russia being drawn into regional conflicts. On the other hand, it prevents Russia from playing in the same league as the United States and China.

autonomy in Asian affairs. Thanks to the coverage by international media and experts, Russia is increasingly seen as a country whose deteriorating relations with the United States are making it more and more dependent on China. The nuances of Russia’s balanced stance on the South China Sea, for example, are no longer seen as such behind the smokescreen of joint military exercises with China and the support of Beijing’s refusal to recognize the decision of the Permanent Court of Arbitration in The Hague in 2016.

In this context, Russia may find it difficult to portray itself as a third force in Asia. It may be more worthwhile to invest more in maintaining the existing mechanisms of multilateral diplomacy. For Russia, which does not have the resources of China or the US, a sensible long-term strategy would be to strengthen the institutional framework, especially if it works at the same time to increase trust in Russia as a country that adheres to the rules of international cooperation. Building practical cooperation and developing new initiatives in multilateral mechanisms in Asia to match its rhetoric could have a positive reputational effect for Russia and its influence in Southeast Asia at a relatively low cost, even if it is old-fashioned and naïve to talk earnestly about collective security these days.

Such a strategy would no doubt require more serious investments in the bureaucratic, intellectual and organizational support of Russia’s work in multilateral mechanisms in Asia. It is necessary to gain the understanding and support of all stakeholders throughout the executive branch in order for Russia to step up its participation in the dozens of issue-specific dialogues under the ASEAN banner.

[1] At the time of publication, there is no official confirmation that the ASEAN–Russia Summit will take place; however, recent statements made by Deputy Minister of Economic Development of the Russian Federation Sergey Gorkov during his visit to Singapore imply that it will. See: http://economy.gov.ru/minec/about/structure/depasiapacific/201802091

First published in our partner RIAC

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Is Israel Taking Advantage of a Longtime Strategic Partner for Russia?

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In February, Israeli Prime Minister, Benjamin Netanyahu met with his Russian counterpart, President Vladimir Putin. In what can only be described as a bravado attempt to flaunt the strength of the ties between the two countries, Netanyahu pointed out that, “tourism is at an all-time high, with 400,000 Russians visiting Israel every year and about 200,000 Israelis visiting Moscow every year,” adding that, “(he has) the honor to contribute somewhat to this statistic.” The first part of that statement is accurate; yet, the latter part is far from the truth. Russo-Israeli relations had been improving for decades before Netanyahu entered the Israeli political scene.

Primakov’s Mission: Laying the Foundations for Russo-Israeli Relations

The “founder” of improving Russo-Israeli relations, Yevgeny Primakov, made a point (almost a mission) of maintaining some type of relationship between the two countries. Since the 1967 Arab-Israeli War all the way up to the latter years of Secretary General Mikhail Gorbachev’s leadership, Moscow officially considered Israel a “pariah state.” However, in the 1970s, during the “Brezhnev Years,” Primakov, a Jewish-born Soviet, was a key member of Soviet delegations that held several rounds of secret talks with the Israelis (usually in hotel rooms from Vienna to Tel Aviv) despite Moscow breaking off diplomatic relations with Israel.

Following Brezhnev’s death, Primakov continued his “mission” by maintaining correspondence with his Israeli counterparts while serving in various capacities within the Soviet establishment in order to preserve communications between the two countries. When Gorbachev began his perestroika and glasnost policy, relations between the Soviet Union and Israel slowly began to improve. Gorbachev’s policies allowed Soviet Jewish “refuseniks” to immigrate to Israel, which eventually led to the resumption of diplomatic relations with Israel in October of 1991—two months before the breakup of the Soviet Union. In December of that same year, Gorbachev announced the breakup of the Soviet Union but relations between the newly formed Russian Federation and Israel continued.

The 1990s were a tough decade for the newly formed Russia. The breakup of the Soviet Union saw the end of a social, cultural, economic, and political lineage that lasted for roughly seventy years dissolve overnight, thereby sending the citizens into dearth and poverty at unimaginable levels. As a result, Russia was a very weak state and did not have much leverage in the international arena. It did not help that the Yeltsin government implemented an American-backed “shock therapy” economic policy that de-modernized the country several decades and left the vast majority of the state in calamitous conditions.

Under the Yeltsin presidency, Russia was destabilized to a high degree (some would argue that it was worse than the years of the Great Depression in the 1930s), crushing their economy. Russians often term the “Yeltsin years” or the decade following the breakup of the Soviet Union as smutnoe vremya (time of troubles), or smutnoe for short, in reference to political crises caused by tumultuous transition periods. The term was most notably used following the demise of the Rurik dynasty, which eventually saw the establishment of the Romanov dynasty. It was also used, to a lesser extent, during the years of the Russian Revolution—the transition from the Russian Empire to Soviet Russia.

Similar to the “Brezhnev years” of stagnation in the 1970s, Israel proved to be a sanctuary for many Russian Jews during this chaotic period. Russian Jews (and other Jewish citizens from former Soviet satellite states) were no exception to this smutnoe of the 1990s, and as a result, Soviet and Russian Jews chose to immigrate to Israel in large numbers.

Despite the tough economic times in Russia, the Russian political elite, which included the then-Russian Foreign Minister (and eventual Prime Minister) Yevgeny Primakov, did its best to preserve its relations with Israel, while maintaining its longstanding foreign policy principle of a two-state solution regarding the Israeli-Palestinian conflict. This was consistent with its overall foreign policy of stability in the region. In the 1990s, Russia (similar to the Gorbachev era of the Soviet Union) maintained a balanced approach when it came to the Middle East, ensuring its national interests were preserved.

The Putin Era: Advancing Interactions, Strategic Engagement, and Navigating the Palestinian Question

Relations between Israel and Russia significantly improved under Russia’s current leader, Vladimir Putin. Throughout his nineteen years in office, since being elected in 2000, President (and Prime Minister) Putin has often received many Israeli Prime Ministers along with other Israeli officials. Putin and others have also visited Israel on many occasions. Both Israeli and Russian officials often cite the size of the Jewish community in Russia and the Russian diaspora in Israel as proof of warming relations. In fact, today the Russian Jewry often claim that the community has it better under the current leader than at any other point in Russian history. And, there is a reason for that. The extent of anti-Semitism in Russia is minimal in comparison to the past. This increased acceptance is reinforced by President Putin. The Kremlin often speaks kindly of the Jewish community in Russia, and Putin has even taken it a step further by stating that Israel and Russia have common histories – namely that the two despise fascism and Nazism of any kind. In addition, the Russian Jewry now has the freedom to practice its religion with no fear of retribution today and can travel to Israel freely—a right greatly curtailed in the Soviet Union.

Despite being political rivals, President Putin, like others, sought Primakov’s advice when it came to the Middle East. Being an Arabist and an expert on the Middle East, Primakov felt (and wrote extensively) that Russia’s main challenge in the 21st century was to fight international terrorism—something that the new President agreed with (and still agrees with to this day). The President has long sought better relations with the Zionist entity as a result of his belief that one of Russia’s main national interests in the region is reducing international terrorism. President Putin believes, for better or worse, that Israel can be a strategic partner in fighting international terrorism. However, President Putin and the entire policy class also believe in a two-state solution along the 1967 borders (in reference to the land Israel captured in the 1967 Arab-Israeli War) to allow for a future Palestinian state to exist alongside Israel. Furthermore, the Russian policy class believes that state sovereignty must be respected. On the former, Israel has made little to no effort and, on the latter, Israel has consistently overstepped its bounds with regards to state sovereignty, often pushing hard enough to destabilize the region.

A policy reversal by the Israelis on the Palestinian question – that is to disengage from the West Bank and East Jerusalem, as well as fully withdrawing from Gaza – seems highly unlikely. Moreover, it also seems unlikely that Israel will cease its illegal excursions in other countries, such as what it is doing in the Syrian arena. This begs some fundamental questions: is Israel’s belligerence putting its citizens in harm’s way and, more importantly, is it risking losing Russia as a national security partner, with its fifty years of unofficial relations and twenty-plus years of official relations? If this is the case, then Israel will be putting itself in a very dangerous conundrum.

The United States, Russia, & Israel: Is it a Triangle?

It is true that Israel, for decades, has relied on the United States for military aid and moral support in the international community in times of war. However, since the fallout of Hurricane Katrina in 2005, the United States has been slowly (but surely) leaving the scene. American citizens do not want their country to be extensively engaged in the Middle East or elsewhere. They would rather the exorbitant amount of money spent on these commitments abroad be invested in improving lives of American citizens through domestic programs, like healthcare, education, and increased job security. The direct lineage between the elections of candidates Barack Obama and Donald Trump (not John McCain, Mitt Romney, or Hillary Clinton) proves this to be the case. We are seeing further evidence of this as politicians vie for control of the Democratic Party. Voices within the party are justifiably asking questions out loud that have been asked behind closed doors for years. Questions like: why is it that a foreign country receives so much financial support from the United States when many of its own citizens still struggle to survive? As a result, support for Israel in the American political scene is waning, despite the Israeli lobby’s claim. Today, only a certain portion of the Republican Party blindly supports Israel wholeheartedly. At some point, those voices will grow quieter and quieter or, at the very least, become less influential.

When America leaves the scene and becomes less influential on the international stage, Israel will be left alone. Yet, Israel can move eastward in pursuit of securing its national interests, creating a new alliance with Russia, a country that is more invested in the region today. This can be beneficial to Israel’s national security but, for that to happen, Israel will need to change its course on both the Palestinian question and its excursions in the region. The decision is a “no-brainer” given that the current course is creating an outcome where Israeli citizens are endangered from rockets as well as stabbings, shootings, and car-ramming attacks.

Russia, who seems to be invested in the region for the long haul, has been a willing partner thus far. Most recently this was evident when Russia –– in coordination with its military and the Syrians –– cooperated with Israel to help return the body of the fallen Israeli soldier, Zachary Baumel, who was killed in the 1982 “Lebanon War.” However, the Israeli establishment cannot take its Russian counterparts for granted forever. While the vast majority of the Russian policy class and President Putin still seem to want better relations with Israel and are willing to give it the benefit of the doubt, this is not guaranteed going forward. The policy class is not homogenous and some within it can override the Russian President when they deem Russia’s national interests are being jeopardized, as we saw when Russia finally decided to deliver its S300 surface-to-air missile systems to Syria. Thus, if Israel continues its confrontational activity in the region and prolongs its actions towards the Palestinians, Russia has cards at its disposal that will be unfavorable to Israel—leaving Israel isolated and weaker.

The ball is in Israel’s court. It must decide if it wants better relations with Russia or not. For the moment, the Russian policy class desires this; there is no doubt. However, at some point, Russian patience might run out. With the United States slowly leaving the scene, Israel would be wise to move closer to Russia. However, for that to happen, it needs to seriously consider changing its policy towards the Palestinians and cease its military excursions in the region. Israel should not test Russia’s resolve like it has done in the past, because the consequences for the Zionist entity could prove to be existentially dire.

First published in our partner RIAC

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Russian- Arab Cooperation Forum

Kester Kenn Klomegah

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On April 16, Moscow hosted the 5th Russian-Arab Cooperation Forum to review comprehensively its strategic goals and achievements, challenges and layout plans for the future. The Fifth Ministerial Session of the Russian-Arab Cooperation Forum, for the first time, attracted 14 ministers from the League of Arab States (LAS), and representatives from north Africa (Maghreb) and from the Arab world. It was also attended by the three foreign office representatives of the Council of the Arab League (Iraq, Sudan and Somalia), as well as Tunisia (as current Arab League Summit chair) and the Arab League Secretary General.

Foreign Minister Sergey Lavrov agreed, in an opening remarks at a news conference, to continue joint work in the interest of a Libyan settlement, supported the UN Secretary-General Special Representative in Libya Ghassan Salame’s efforts to implement the road map he developed to normalise the situation in Libya.

“We have a common goal which is to help the Libyans overcome their current differences and reach a stable agreement on national reconciliation. To this end, Russia is working with all the political forces of Libya, without exception,” he said.

“We discussed various situations in the Middle East and North Africa, including Sudan, Somalia, Yemen and Iraq. We supported the decisions adopted at the recent Arab League summit in Tunisia, the documents that capture the commitment to increase the role of the League in the region’s affairs. We strongly welcome such decisions,” the Minister added.

Lavrov further referred to the 12th session of the Russian-Arab Business Council and the 4th Arabia-Expo International Exhibition as significant events that enormously contributed to creating additional opportunities in the interest of promoting business cooperation between Russian and Arab organisations.

Earlier, Russian President Vladimir Putin sent a message of greetings to the participants and guests of the 12th session of the Russian-Arab Business Council and the 4th Arabia-EXPO International Exhibition, held from April 8 to 10.

The message reads, in part:“Over the years of its work, the Russian-Arab Business Council has fully proved its relevance and effectiveness and contributed to promoting direct dialogue and practical interaction between the business communities of Russia and the countries of the Middle East and North Africa.

The council’s energetic efforts serve to expand and diversify trade, to increase mutual investment and implement promising joint projects in the manufacturing industry and agriculture, energy and high technologies, transport and infrastructure.

Large-scale Arabia-EXPO exhibitions are an essential area of the council’s activities. They introduce the latest economic, scientific and technological achievements of the Arab states to the Russian people and offer an opportunity for entrepreneurs to exchange business proposals and innovative ideas.

I hope the current session of the council will be substantive and will make it possible to outline new forms and mechanisms for equitable cooperation, as well as to strengthen friendship and mutual understanding between our nations.”

The Russian-Arab Cooperation Forum was officially launched in 2009 with the signing of a memorandum between the Russian Federation and the Arab League. Since then it has proved its importance as a mechanism of a regular exchange of opinion and coordination of positions on major regional and international issues. 

An in-depth exchange of views were held during the meeting on the situation in the Middle East and North Africa, particular attention was paid to coordinating practical steps to further enhance the whole range of relations between Russia and Arab countries, primarily trade and economic relations, investment, culture, education and people-to-people ties. At the end of the Forum, a joint declaration adopted as well as an action plan to implement the principles, objectives and tasks of Russian-Arab cooperation for 2019-2021.

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The Results of the Azerbaijan- Russia Industrial Cooperation Forum

Asim Suleymanov

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On April 4, the Azerbaijan-Russia Industrial Cooperation Forum was held in Baku with the participation of representatives of relevant government agencies and entrepreneurs. Speaking at the forum, Azerbaijan’s Minister of Economy Shahin Mustafayev noted that the political will and joint efforts of the presidents of Azerbaijan and Russia laid a solid foundation for expanding economic cooperation between two countries. The relations between Azerbaijan and Russia, which are developing in all areas, are at a strategic level.

Within the framework of the forum, three Russian companies – Rostselmash, Transmashholding and Service Invest – signed the cooperation agreements with Azerbaijani partners. State Duma Deputy Dmitry Savelyev, commenting on the results of the event, noted that Russia and Azerbaijan had obviously moved from the initial steps in building economic partnership to a normal working process.
The result is visible to the naked eye: last year’s trade turnover amounted to $ 2.5 billion, exceeding the figure for 2017 by 19%. It shows the great interest of companies in joint projects.

According to the parliamentarian the countries have long-term successful experience in opening joint ventures in the industrial sector, and not only in the oil and gas sector. Industrial cooperation is developing at full speed.
The real examples of mutual investment were the SOCAR Polymer project, the construction of a pharmaceutical enterprise in the Pirallahi industrial park, and the cooperation of the Ganja car plant with the Russian enterprises KamAZ and Ural. A service center that would make maintenance and repair of Mi helicopters in Azerbaijan is supposed to be opened.

Moreover, at this stage of cooperation we can talk about readiness for cooperation in the international arena. The Ministry of Industry and Trade of Russia and the Russian Export Center (REC) are launching the Unified Export Support System. Regional hubs will be formed in 19 countries (including China, Turkey, Germany, Vietnam, Uzbekistan and Singapore).

Moreover, the creation of joint assembly plants considers promising point of economic growth. Such a joint project will expand the market for engineering represented by Middle East and Southeast Asia countries. An important role in this regard should be played by agreements at the level of state corporations.

“This year, President Ilham Aliyev signed a decree establishing the Azercelli company. This company will be engaged in the development of the non-oil sector, the production of defense and import-substituting industrial products. In cooperation with Rostec that is among the ten largest industrial corporations in the world in terms of revenues Azercelli can begin its expansion into the huge markets in Africa and the Middle East.”

The long-term friendly relations of two states, based on good-neighborliness and taking into account the national interests of a partner, the Russian parliamentarian considers the main trump card in the joint entry into international markets. “If there is a conflict of interests in some areas of activity, then in order to pass events like the Russian-Azerbaijani forum of industrial cooperation, where both parties can always sit at the negotiating table and find mutually acceptable solutions, as was done throughout the history of the relations.

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