Leonid Pasichnik, the acting Head of Lugansk People’s Republic (LNR) has been in office for almost one year. With the state of his reforms in LNR, you want to judge him against leaders of countries at peace, not as one that just formed in the middle of a war four years ago.
For the last thirty years, Donbass was neglected in Ukraine. The infrastructure across Ukraine was bad, but in Donbass it was notorious. Key infrastructure like the water supply has been neglected since 1983.
Political Leaders and oligarchs from what would become LNR historically were only interested in what they could take out of the region. Donbass coal and industry historically provided the basis of Ukrainian wealth. No other region contributed as much and no one including Victor Yanukovych had any interest in investing any of that money back in the region to build it up.
Pasechnik is providing a marked difference. During what is still considered nation building, his interim administration is taking the economic and social problems in the newly formed republic head-on.
In the spring of 2018, his administration introduced their five-year socio-economic development plan called “Our Choice.” His administration included input from 70,000 LNR residents to make sure people’s concerns about the future are addressed as reforms go forward.
LNR’s Current Outlook
For the last four years, LNR has worked to build a lasting peace. Fulfilling their side of the Minsk Agreements LDNR (Lugansk &Donetsk People’s Republics) negotiated with Poroshenko’s regime has been a key part deciding what direction the republic is taking. Kiev hasn’t attempted to fulfill any point agreed to and tries to use the agreement to beat Russia over the head within the US and the EU.
The often overlooked part of the Minsk agreement in the west is Ukraine is not negotiating with Russia. Russia is a guarantor for the agreement the same as the EU is, nothing more. If Poroshenko had any intention of reintegrating Donbass, Ukraine would negotiate in good faith and keep its word. This hasn’t happened.
Because of this, Pasichnik’s government recognizes the fact that until the government in Ukraine changes, real negotiation and progress remain impossible. For Ukraine to be taken seriously, decentralization in the form of federalization will have to take place. Ukraine will also have to start creating the conditions for building an economy in all its regions.
Even in view of this LNR has consistently fulfilled its part of the Minsk agreements.
The West’s Shortsighted Spectacle
Unfortunately, even recent history shows there is no reason to take any offer Ukrainian nationalists make or are part of negotiating seriously. Poroshenko is only after sound bites and not substance. Pravy Sektor nationalist leader Dimka Yarosh has announced he is pulling his troops away from the front line to monitor Ukrainian elections. Ultra-nationalists monitoring elections? Yeah, this should go well.
In a recent interview with Ukrainian “Novoye Vremya,” Condoleezza Rice commented it was “bad” that the world was starting to believe Russia’s version of what was going on in Donbass.
At the end of the day, world leaders still have to believe somebody. After four years of looking at the diplomatic and economic train wreck, Ukraine has evolved into, they have no reason to believe Ukraine.
Instead of becoming the promised European model they could all look to, Ukraine has taken away every safety net even marginal civilizations provide for their people. Manufacturing is gone and instead of working through internal issues, the new government attacked its powerhouse region in Donbass. LNR and DNR provided a lion’s share of wealth because of the coal industry and manufacturing. The nation’s most important engineering universities are ensconced in the capitals because of this.
That isn’t something the EU or the rest of the world can take lightly. With no possibility of recovery in the near to mid future, Ukraine’s only hope is to find work in Europe. Ukrainians making it to Europe are finding low paying bottom tier work as well as the illegal sex trade.
Under Donald Trump, there is no reason to believe the US would be willing to take in violent nationalists from a country that tried to destroy his candidacy and his presidency.
All of this is the result of Poroshenko’s Ukraine destroying every possible growth industry it had including rocket engines, weapons, and technologies, and traded that for giant corporate farms. Agribusiness giants and agro-holdings companies are the big growth areas but provide no jobs.
The outlook for Ukraine is very poor for the foreseeable future unless drastic policy changes are implemented.
When you contrast this to what LNR is accomplishing under Leonid Pasichnik, it’s easy to see why Condi Rice is so upset.
Lugansk People’s Republic’s Reform Renaissance
It’s easy to argue renaissance is too strong a term to use for the reforms going on in LNR because there is a war going on. The infrastructure and economy have taken serious hits over the past four years. Nineteen bridges have taken extensive damage or collapsed in LNR hampering transportation. Roads were also shelled and in many areas need to be rebuilt.
On top of this, starting at day one, Pasichnik’s government had to fight the civil war as well as the systemic corruption that had not been touched by his predecessor. It’s very difficult to imagine a government starting out with a weaker hand.
In the short time Pasichnik has been in office, his government not only formulated a five-year plan, but they also started implementing it in a grand way. It started with building an energy bridge to power the steel mill in Alchevsk. High voltage transmission lines were installed that not only allowed the plants to go into production, but they are also increasing production and hiring plant workers. Business is opening in other manufacturing sectors because the government has been able to negotiate its way around sanctions to a small degree. In the garment industry, this is creating jobs.
Large-scale road work and bridge work has commenced and the bridge connecting Lugansk to Donetsk is complete. Part of the 5-year plan is to restore the railways for large-scale transportation to service commerce and commuters. Pasechnik just announced fuel prices in LNR will be dropping to Russian levels. This is while a war is being fought.
Water has been an issue for the last four years and part of LNR’s water supply is purchased from Ukraine. Pasichnik has ordered pipelines from LNR’s own aquifers be rebuilt to solve this problem. Redundancy is a consideration for the design of the project. If one water main is down for repair or maintenance, a second water main will be put in use according to the building specifications.
The farming industry was in tatters because of the war. The current government is working to increase yields of high-quality grains like wheat. LNR has achieved food security for the republic. This by itself is an incredible feat given the fluidity of the situation with the civil war.
As part of the reforms, Pasichnik ordered the customs borders be taken down between LNR and DNR on April 1, 2018. DNR still needs to reciprocate but it is only logical considering how closely both republics need to cooperate.
Along with all these concrete reforms, LNR is also writing new equitable laws to replace the old corpus. More importantly, reformation of the judicial system is underway. Currently, the family courts are complete and work has begun on Supreme Court reform.
It is easy to see why Condoleezza Rice would be a little upset when little tiny upstart countries believe in federalized representative governance and can build a society even with all the stumbling blocks and chaff the US and Europe throw at it. While Ukraine, Rice’s model of what a European country should be, looks anemic by comparison.
It’s easy to have the support of the EU and the USA and make these reforms when they give you billions of dollars to do so. It’s certainly easier to jumpstart an economy when the economic zones are in safe areas.
Pashichnik and his political party Peace for Lugansk (Мир Луганщине) have shown the world they can do it on their own. This is what former Secretary of State Condoleeza Rice is concerned Russia will tell the world.
We’re going to start exploring the reforms listed above as well as others going on in depth. We’ll also get to know his party and the other political parties in LNR. I like looking at concrete results and Pasichnik is providing that in a substantial way.
After being here from before the beginning of Kiev’s Euromaidan coup, you get a little-jaded writing about politics and political leaders. From my perspective, it’s a shame he and his party wasn’t elected in the first place. I believe both republics would be in a better place.
After taking a real look at this overview, how do political leaders where you live measure up?
Is Ukraine at War? Navigating Ukraine’s Geopolitical Conundrum
In April this year, amidst rising tensions with Russia, a Ukrainian diplomat warned that Kyiv may be forced to acquire nuclear weapons to safeguard the country’s security if NATO does not accede to its membership demand. On the same lines, Ukrainian president Volodymyr Zelensky challenged his Russian counterpart President Vladimir Putin, to meet him in eastern Ukraine’s Donbass region to talk on ending ongoing conflict in the region. He further urged the west to give “clear signals” of whether they were willing to support the country in its standoff with Russia.
But why has this situation emerged? Why is NATO and west so reluctant to proceed with forming partnership with Ukraine? Is Russia aggressive towards Ukraine? And as no geopolitical conflict in today’s complex world is possible in isolation or between just two parties, who are the other actors involved in this conflict? This paper investigates these questions to analyse the case of post-soviet Ukraine and how Ukraine remains important to the geopolitical dynamics of not just the post-soviet space, but also the broader Eurasian region as well as the world.
Ukraine has been often deemed as the cornerstone of the Soviet Union. It was not only the second-most populous republic, after Russia, but was also home to much of the Soviet Union’s agricultural production, defence industries and military. However, Ukraine’s history is intertwined deeply with the birth of Russian kingdom itself, as the beginning of Ukraine was the establishment of Kievan Rus which united the Eastern Slavs and laid the foundation for Russian identity. After centuries of direct existence under Russian rule however, Ukraine post-1991, decided to embark on its separate journey, hoping to de-intertwine its fate with that of Russia’s. However, this has not become a success to the extent Ukrainian leaders might have expected. The nation’s proximity to Russia has meant that any government in Moscow will do anything in its capacity to maintain some control over Kiev’s foreign as well as defence policy, in order to keep at bay any adventurist objectives by the western bloc of EU and US. Today, Russian policy’s primary aim is to keep Ukraine out of foreign alliances and geopolitical blocs like that of EU and NATO, and for this, periodic show of strength has become an explicit policy in the last decade for Russia. Further, post the Russia-Ukraine conflict of 2014, where Russia allegedly invaded Ukraine and annexed Crimea according to Russian critics, NATO has been forced to increase its presence in the Black Sea region where Crimean Peninsula exists geographically and has stepped up maritime cooperation with Ukraine (as well as Georgia, who too have similar concerns with Russia). However, although the relations between NATO and Ukraine were updated in June 2020 and Ukraine is now one of the six countries having tag of ‘Enhanced Opportunity Partner’ and makes significant contributions to NATO operations and other alliance objectives, NATO’s scepticism and reluctance on giving full member status to Ukraine is seen in Ukrainian political circles as west’s non-serious attitude towards the nation. Similarly, while EU remains the most important trading partner for Ukraine, its path to becoming an EU member has been harder than the leaders would have imagined. In the later parts of this article, the 2013 trade war between Ukraine and Russia over the possibility of Ukraine joining EU, and the subsequent toppling of the presidential regime in Ukraine in the next few months is highlighted.
However, even though Russia, EU and NATO have been primary geopolitical actors in Ukraine, recently, new actors have joined the ongoing geopolitical conundrum. The entry of the likes of China and Turkey has not only made the situation more complex but has also raised the stakes for the primary actors. Ukraine has in recent years, encouraged the presence of Chinese businesses in its market and welcomed further expansion of bilateral trade and economic cooperation, to the extent that in 2019, China replaced Russia as Ukraine’s main bilateral partner. In case of Turkey, president Tayyip Erdogan has time and again reaffirmed its support for Ukraine’s territorial integrity as well as Ukraine’s bid to join NATO. Further, Turkey-Ukraine cooperation in the military sector has dramatically increased in the recent years, replacing the traditional Russian base. Interestingly though, Ankara has maintained and has even grown in its partnership with Moscow which somehow softens the stance towards conflict between Ukraine and Russia as gets limited to following the EU-US stance more often than not, unlike in the case of Azerbaijan-Armenia’s Nagorno-Karabakh conflict where Turkey had explicitly supported Azerbaijan when Russia has tried to balance between Armenia and Azerbaijan.
The Perennial Question: What does Russia want?
Prior to 2014 Ukraine-Russia conflict, Russia had hoped to have Ukraine into its single market project- Eurasian Economic Union (EAEU) and benefit from the enormous Ukrainian market and population which could have boosted Russian industrial base. However, post the conflict, any hopes for integrating Russia-Ukraine markets have collapsed. Whereas Russia supplied most of Ukraine’s gas until 2014, the supply stopped entirely by 2016. Today, Russia is looking to complete infrastructure projects in terms of energy commodities, which would bypass Ukraine to starve Ukraine from the billions of dollars of transit fee that Russia has paid since long to Ukraine to reach Central and Eastern European markets. Further, since 2014, EU became the main trading partner and has been in talks with Ukraine since very long for Ukraine’s accession to EU. However, Russia for long has seen EU membership as an immediately preceding step to NATO accession, and hence sees the aspect of avoiding EU membership for Ukraine as not only an element of Russian economic policy, but also that of its security policy. Further, Russia now sees EU as not just an economic bloc, but ‘a potential great-power centre in the making’, whose further expansion in post-soviet region is bound to negatively affect Russian credentials of a hegemon as well as the arbiter in the regional conflicts. Russia’s recent mobilisation of troops at the Ukrainian borders which was more of show of strength rather than a potential act of aggression, had raised concerns in the new US presidential regime. In one interview, Russian defence minister Sergei Shoigu explicitly linked Russia’s mass-mobilization drills to NATO’s ‘Defender Exercise’, which has been the biggest military exercise taken in the Black Sea region since the cold war era, saying that ‘The scale of US led military activity required response’. In a way, Ukraine has become a battleground for both Russia and US to showcase their influence and Ukrainian leadership is finding itself in a dilemma, being unsure and insecure of the extent of intentions from both the warring blocs.
The Western Dilemma: Why Ukraine still not in EU and NATO?
There have been several factors at work which has made Ukraine’s path to membership to EU and NATO difficult. Firstly, in the recent years, there has been a concern in the EU political circles that there is no political will in Ukraine to fight vested interests and go beyond the promises of showing credible commitment to genuine domestic reforms. However, on the flip side, the argument is often made that beyond financial and technical assistance that EU can provide to Ukraine and its market, Brussels does not have any new offer to motivate Kyiv in implementing reforms. Further, since the coming of new presidency in 2019 (of Zelensky), the primary focus of the government has shifted to resolving the Donbass conflict where Ukraine is struggling against separatists in Donetsk and Lugansk, who are allegedly supported by the Russian side.
Moreover, it is also an open secret that many member nations in EU itself would prefer to have a different relationship with Russia, who since 2014 has been facing several sanctions in realm of trade, be it in energy sector, consumer goods, or defence and space technology. This is clear when we take in consideration the case of Germany and how the government has for long insisted on getting the Nord Stream 2 pipeline project completed amidst mounting pressure from other members of EU and the US. The project is expected to resolve the energy demand issue for majority of German households for the near future once in function.
In Russia, EU is deemed as the ‘Trojan horse’ for NATO expansion as already mentioned before. However, for NATO, a different set of concerns exist altogether. NATO has been wary of Russia’s continued destabilization of eastern Ukraine and the continuing unrest in the Donbass region. If, however, Ukraine becomes a NATO member, any such conflict would mandate NATO to get involved in the region and aid Ukraine, which then might escalate in a bigger conflict. And this is another important reason for NATO’s restrained stance.
China- The ‘Well-settled’ player in Ukrainian Market
In recent times, China’s economic might has enabled it to leverage the benefits in a variety of ways. Not only does China influence the decisions indirectly at times, but any economy which is intertwined and dependent on Chinese economy, can today expect to feel direct effects of this economic inter-dependency when it comes to foreign policy. An increasingly observable phenomenon is that China in gaining foothold much quicker in those nations of the post-soviet space, where Russia is deemed as a hostile neighbour or state. This was visible in a 2020 public opinion survey by SOCIS which highlighted that almost 60 percent of Ukrainians see Chin as a ‘neutral’ state even if only 13 percent see China as ‘friendly’, but over 63 percent see Russia has a ‘hostile’ state, with only 5 percent deeming Russia as ‘friendly’. Today, China is complementing Ukraine for its deficits, for instance in the field of technology and defence where it is replacing Russia and competing with Turkey, and in realm of exports, China is proving to be a worthy destination for Ukraine’s agricultural products by having a large population and increasingly developed market system. This is quite clear by the statistics which show that Ukrainian exports to China surged 98% in 2020 driven by iron ore, grains, and palm oil. Ukraine’s president on his part recently praised China for respecting Ukraine’s sovereignty and territorial integrity and highlighted China’s assistance in combating COVID-19, however, it remains to be seen how these developments would be perceived by both US and Russia.
Turkey- An Emerging Vector
Turkey-Ukraine cooperation in military technology has increased dramatically post the 2014 Russia-Ukraine conflict and today, Ankara supports Kyiv’s bid for membership to NATO as well as peaceful solution to the conflict in Donbass (Donetsk and Luhansk region). Further, in April this year, the two sides pledged in a 20-point statement, ‘to coordinate steps aimed at restoring the territorial integrity of Ukraine within its internationally recognized borders, in particular the de-occupation of the Autonomous Republic of Crimea… as well as the territories of Donetsk and Luhansk regions’.
However, there is a renewed enthusiasm in the recent Ankara-Moscow dynamics, where the two have come closer since President Erdogan’s policies have become more nationalistic and non-secular in nature, driving Turkey away from the ambit of west and US, and raising concerns about the increasingly populistic approach being undertaken by Turkish government. Further, US’ plans to build new naval bases in the Black Sea region and enhancing military cooperation with Ukraine and Georgia also concerns Turkey, as it directly would result in reduced role of Turkey and a blow to Turkish president’s ambitions of renewing Turkey’s status as a regional powerhouse.
The seven-year war between Ukraine and Russia, which is still ongoing, has changed the relationship between the two countries completely and permanently. Since Ukrainian market is now open to EU and China, a competition to dominate this market is soon to become more and more visible. While Russia would want to avoid Ukraine’s EU accession till as long as possible, Moscow will go to even greater lengths to prevent Ukraine’s NATO membership. On its part, not only will NATO be wary of Russian insecurities, but it will also consider the fact that increasing tensions with Moscow might push it towards Beijing, and a possible military alliance between the two military powers might be the greatest challenge for NATO in the coming future. Since Russia has lacked the economic might post the Soviet union’s dissolution, an alliance with China might balance out almost every limitation that Russia and China have in terms of their superpower capabilities. EU on the other hand keeps a close eye on developments in Kyiv too. Although Kyiv is yet to come up with overhauling reforms which would strengthen EUs believe in Ukrainian system, EU member states themselves will need to overcome a sort of internal division, where several member states hope of having a more normal relationship with Moscow. US on its part is expected to align with Turkey and US in bringing Ukraine in close cooperation with EU and NATO and to do everything possible to detach Kyiv from a possible rapprochement with Moscow. It remains to be seen, how other post-Soviet states like Georgia, Armenia and Azerbaijan react to these developments taking place in Ukraine and assimilate this in their own discourse of balancing the west and Russia.
‘Strategic Frivolity’ of the West and the Belarus Issue
The Western countries’ reaction to the detention of an opposition leader in Minsk has revealed the high degree of readiness of the United States and its allies to create risky situations for the sake of momentary political benefits. No matter how the actions of the Belarusian authorities were consistent with international aviation law and customs, the behaviour of Washington and most of European capitals showed that they are difficult, if not hopeless partners for the rest of the world community. Now we have no reason to fear that developments will turn into an uncontrolled escalation — the attacks of the West against Lukashenko do not directly impact Russian interests. However, what has happened in the media and in diplomatic circles in recent days provides ample opportunity to consider the need for new containment measures in relation to the habit of the US and Europe to take European and international security so lightly.
So far, Russia’s reaction to these emotional outbursts has been restrained, because the actions of the Western countries did not directly harm its interests. But if such hysteria repeats, it will confirm the lack of intentions in the West to establish any kind of stable dialogue with those powers that are not willing to subordinate their respective domestic and foreign policies to its demands. Is this some kind of a “strategic frivolity”, whose appearance in international affairs and the behaviour of the EU and the US has become more and more regular as the balance of power in world politics shifts? Russia, for its part, can show any amount of restraint, but the line beyond which this will become impossible, may be passed unnoticed.
As a matter of fact, such a reaction of the West to the stoppage of an international flight by the Belarusian authorities and the detention of one of the passengers did not come as a surprise. In recent years, Russia, China and others have become accustomed to the fact that the United States and Europe have been quick to sacrifice international stability when it has suited their concurrent goals.
The EU countries have been grasping at any straw in their attempts to confirm their greater relevance in terms of international law on the world political stage. It hasn’t been working out very well so far.
At the summit on May 25, the leaders of the European Union countries approved a resolution calling for a package of measures against Belarus — personal sanctions and broader measures against the Belarusian economy. But it is clear how ineffective these measures will be, even to the European observers. After the failure of the EU to work out a common position on the conflict between Israel and the Palestinians, the failure of another attempt to “punish” the government of Alexander Lukashenko will serve as another blow to the international reputation of the EU.
Britain, which left the EU, but remains the closest satellite of the United States, is in principle trying to behave as the main opponent against any country whose position does not coincide with Washington’s wishes. Now London’s position is aligned with that of the Baltic states, which are most irresponsible in their statements and actions. It is unlikely that this will strengthen London’s position on the world stage. The United States, for its part, is acting in its usual way — while lacking any direct interests, it easily creates risks for others. Surprisingly, in this respect, the behaviour of the US resembles the behaviour of Minsk, which is also not always ready to take into account Russia’s diplomatic wishes.
For Russia, the recent diplomatic “plane crash” involving Belarus does not pose immediate threats, but it may become another test for Russia’s legendary restraint. Moscow is clearly accustomed to the fact that the Western states are not always predictable in their actions and, in principle, live “in their own world”, where there are certain rules for them, and completely different ones for others. So far, Russia has reacted to all this in a very reserved manner. The measures the West has taken against Minsk do contradict basic Russian interests in the field of European security, but they do not create threats and do not harm Russia. However, it is the ease with which the West enters a conflict with any nation, at the slightest pretext, that causes Russia’s concern.
It will be extremely fortunate if, during the Russia-US summit, scheduled for June 16 in Geneva, the parties can deliver some appeasement to international or regional politics. It is unlikely that the summit will result in any breakthrough of a general nature; there are no preconditions for this. But the very ability of Russia and the United States to discuss common interests will show that both great powers retain the responsibility necessitated by their strategic importance. So far, however, we cannot be sure even of such a minimal positive outcome of the expected meeting.
Russia concurs that the actions of the Belarusian authorities are no example of prudence. Nevertheless, one gets the impression that Moscow has adequately estimated the scale of Western pressure on Minsk and understands that in the situation that has arisen, reactions such as that of the Belarusian government are quite predictable, and even justified. In 2020, a number of Belarus’ neighbours in the West openly supported a movement to overthrow President Lukashenko. Russia then supported the legitimate Belarusian government and warned of its readiness to provide it with practical assistance.
Lukashenko himself can pursue his interests as much as he wants, and sometimes even refuse to coordinate actions with Russia — Belarus is a sovereign state. However, the alternative to his regime now is an attempt to bring to power such forces that will confidently follow the Ukrainian scenario.
The internal political crisis in Belarus, even if it enters a hot phase, would be beneficial to the interests of the United States and would have a devastating effect on European security. However, as we can see, now the countries of Western Europe are in a state of political “knockdown” and cannot control events that risk putting an end even to the minimal independence and choice possessed by Europe. Britain and the countries of Eastern Europe are ready to create risky situations, because outside the conflict with Russia, they have no future in international politics. The fact that the future within the framework of this conflict may turn out to be very short for all of them does not bother them at all. Britain and the countries of Eastern Europe are dominated by forces, for which adventurous behaviour has become the basis of politics inside and outside. Germany and France cannot stop them because they are engulfed in colossal internal problems.
We can hardly expect that the next surge of “strategic frivolity” will have really dramatic consequences. In any case, the world history of all-out wars does not know examples when large-scale armed conflicts would have really insignificant incidents as a pretext. In all known episodes, a “tragic accident” has always involved the interests or security of one of the leading powers. Now we don’t see this, and most politicians in the West are therefore behaving irresponsibly, because they do not expect a serious escalation. Moreover, the Lukashenko government is indeed becoming one of the permanent opportunities for the United States and Europe to stage high-profile political campaigns without a real threat to the world. But this is not a guarantee that if there are grounds for a big conflict, the behaviour of the West would be more reasonable than these days.
From our partner RIAC
Ryanair Incident: Five Sanctions Risks for the Republic of Belarus
The detention in Belarus of a plane operated by the Irish company Ryanair has caused a sharp reaction in the US and the EU. The issue of expanding sanctions was again on the agenda. They may turn out to be even more serious than the restrictive measures introduced last year in response to the situation around the presidential elections.
The approach of Washington and Brussels is defined by several lines of argument which converge at one point. First, the detention of the plane resulted in the arrest of opposition politician Roman Protasevich. The incident reignited the theme of democracy and human rights violations, which have long served as a basis for sanctions. Second, the Western powers proceed from the fact that the aircraft was detained under the false pretext of a terrorist attack threat on board. The statements of the Hamas movement that they were not involved in the events added their share of farce. Third, the detention was carried out with the use of an Air Force fighter, that is, this aspect of the incident can be interpreted as the use of force. History knows a number of examples of such detentions, including the forced landing of Bolivian President Evo Morales’ plane in Vienna in 2013. From a formal point of view, Minsk acted in the interests of national security within Belarusian territory. However, this formality and the existence of precedents are unlikely to play a serious role. In the USA, the incident is understood as a “shocking act” that endangered the lives of passengers and has served as a new reason to condemn Lukashenko for undermining democracy. Similar assessments were given in Brussels and London. Threats of new sanctions were voiced almost immediately. There are five main sanctions risks for Belarus.
The first risk is that of a ban on the use of the territory of Belarus for aircraft transit, a ban on flights to Belarus, as well as on the reception of aircraft from Belarusian airlines. Threats quickly began to shift to a practical level. The leaders of the EU countries called for a ban on flights of Belarusian aircraft in EU airspace. The UK and France have already introduced such measures. Some airlines have cancelled flights through Belarus. The big questions are: how long will such measures last and how unanimous will states and companies be in implementing them? However, it is clear that all this will complicate supply chains, as well as cause economic damage to the country and its partners abroad.
The second risk is that of diplomatic sanctions. In response to the replacement of the state flag of Belarus with the flag of the Belarusian opposition in Riga (with the participation of the Minister of Foreign Affairs of Latvia), Minsk decided to expel all employees of the Latvian embassy. Similar decisions were made in Riga with regard to the employees of the Belarusian embassy.
The third risk is the denial of EU investment programmes. The government of Belarus would hardly receive such assistance even without the incident with the plane. The condition of assistance is a democratic transition in the country.
The fourth risk is another wave of sanctions against Belarusian officials. Such sanctions were widely used in response to the events in 2020. They play a rather symbolic role and do not do much economic harm. Usually they entail visa bans and the freezing of assets. At the same time, their psychological function should not be ignored. Such sanctions are usually aimed to sow discontent among the political elite, betting on its dissatisfaction with the political course of the country’s leadership. The EU may assume that even the security forces may not like to play the role of pariahs.
Finally, the fifth risk is that of blocking sanctions against strategic enterprises. Such sanctions have also been used in the past. A number of large Belarusian enterprises are already in the sanctions list (SDN) of the US Treasury. Most of them have a general license. Previously, such licenses were extended for long periods (up to two years). However, in April, the license was renewed for only a month and a half. It expires on June 2, 2021. Will the US, and after them the EU, carpet bomb the Belarusian economy? The lifting of the exemptions and the renewal of sanctions would cause serious economic damage. However, the threat of such actions will remain inevitable.
The resumption of blocking sanctions against big companies has not yet been discussed loudly. Despite the visceral opposition to the Belarusian leader and the country’s political system, the West is hardly eager to strengthen Russia’s position in relations with Belarus. This would deprive the Belarusian leadership of room for manoeuvre in its dialogue with Moscow and make Minsk much more dependent. But this is theory. In practice, such sanctions will provide a headache for Russia itself. They will hit the economic ties of Belarusian and Russian enterprises. The latter may fear secondary US sanctions. In addition, Belarus is likely to need large-scale economic assistance. The threat of sanctions poses important problems for the Union State of the Russian Federation and the Republic of Belarus. Among them is the creation of payment mechanisms that would ensure uninterrupted economic ties in the event of an aggravation of the sanctions pressure.
From our partner RIAC
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