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G20 Summit: Looking for Compromise

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The G20 is an important international forum, a meeting place for representatives of the world’s largest economies. Now, we can say that the division into the so-called “developed” and “developing” economies is irrelevant within this forum. Additionally, the G20 generally does, indeed, represent the interests of the global population, since its countries account for over 80 percent of the gross world product and two thirds of the entire population of the planet. It is also important to remember that such venues are very convenient for privately owned businesses, which, through the support of governmental agencies, can get favourable opportunities to hold talks with their foreign partners. Additionally, a rather large number of meetings and talks at G20 summits remains outside the spotlight, but their results confirm the significance of the many unofficial meetings, informal negotiations and talks on the side-lines of the summits. These meetings, which take place in a variety of formats, are vital for understanding the issues that are most important for leading international participants and whether there is consensus among them on the approaches required to resolve these issues. Moreover, as we consider meetings and agreements concluded on the side-lines of G20 summits, we can, to a degree, draw conclusions on the current configuration or re-configuration of international relations.

From the outset, we will note that the importance of G20 summits is gradually growing, even though they started out as meetings of ministers of finance and their initial goal was to formulate a joint response to global financial issues. Today, the summit has transformed into an international venue for discussing issues of global financial and economic policies and other pressing matters of the day. However, economic and financial issues remain significant for G20 discussions.

The summit is also important for the expert and political communities of various countries that assess the prospects of inter-country interactions. Apparently, at the Argentina summit, the meeting between Donald Trump and Vladimir Putin attracted the greatest interest, but it never happened, since the U.S. President cancelled it at the eleventh hour, which certainly demonstrates the growing tensions in U.S.–Russia relations.

At the same time, the summit is useful, since its function is not to settle bilateral relations, but to develop common approaches that satisfy different states with different economic indicators and representing different political regimes.

G20 summits are convened to discuss several pressing issues proposed by the presiding state.

The summit held in Argentina was devoted to building a consensus for fair and stable development. Face-to-face meetings between heads of state are particularly important for handling the task. The goal of the summit indicates that the global community is aware of the current tectonic shifts in the global economy and in world politics. For a full-scale scale discussion of the problem, four issues were put on the agenda: the future of work and new professions, infrastructure for development, sustainable food future and gender mainstreaming.

Clearly, the G20 is not just a venue for discussing issues that have been defined as key; it is also an opportunity to “compare notes” via different formats “inside” the summit. For instance, we can say that France, Germany, Austria and Italy did not represent themselves or their interests alone, but were also united by their common tasks as EU countries. In addition, as one of the world’s largest economies, the European Union is a member of G20 as a single body. At the present summit, the European Union was represented by the heads of the European Council and the European Commission, Donald Tusk and Jean-Claude Juncker. Similarly, BRICS countries use G20 to discuss issues of their own.

G20 in Implementing Russia’s Strategic Tasks

Russia’s current strategic priority is to take part in the establishment of the concept of a multipolar world and in elaborating new principles of interaction within integration processes in Eurasia. Therefore, special emphasis will invariably be placed on the possibilities for implementing the idea of “integrating integrations” at G20 summits, and this summit was no exception. In particular, special attention was paid to mechanisms for connecting the development of the EAEU with the “One Road – One Belt” strategy. In addition, issues of stepping up cooperation within BRICS are also addressed, and there is an ongoing search for parties interested in bolstering global political and economic stability through the instruments of “integrating integrations,” which entails Russia paying attention to China, India and other Asian partners, as well as the gradual stable growth of Russia’s interests in Latin America.

As for meetings that have the greatest significance for Russia, the key talks for understanding the development of Russia’s foreign policy are the now traditional sessions held with BRICS countries. In addition, a meeting was also held between the heads of state of Russia, India and China (in the RIC format). Objectively, this format could be the most efficient, since interaction between Eurasia’s three largest states is of principal significance for both regional and global security. The dialogue on security issues and collaboration in all areas will be continued at the second Belt and Road Summit in April 2019 that Xi Jinping invited Vladimir Putin to attend.

The President of the Russian Federation was probably one of the most active figures at the present summit. Naturally, he had a meeting with representatives of Argentina. It is all the more important today since the EAEU and MERCOSUR are building up their cooperation potential, and a Memorandum on Cooperation is being prepared. What is more, Russia and Argentina concluded an agreement on nuclear power generation that will allow Russia to start construction of Russian-designed nuclear power plants in Argentina.

The main topic of discussion at the meeting between Chancellor of Germany Angela Merkel and Vladimir Putin was the Syrian agenda. Indeed, an exchange of opinions on this question now, when various formats of building up the peace process are being discussed, is of particular importance. In addition, the President of the Russian Federation discussed the current situation in Syria with his Turkish counterpart, President Recep Tayyip Erdogan, who also confirmed the significance of the Turkish Stream for the stable and secure development of the economy of Turkey and other states.

The meeting between the President of the Russian Federation and Saudi Arabia’s Crown Prince Mohammed bin Salman focused on energy issues, with the two parties agreeing to extend the agreement on cutting oil production.

Vladimir Putin also met with Prime Minister of Japan Shinzo Abe, with the Japanese side raising the issue of concluding a peace agreement. For Russia, the issue is not particularly relevant anymore, and at the meeting, the two heads of state agreed to continue active cooperation to increase the level of mutual trust between the two sides.

Of course, a great number of people were interested in the informal conversation between Vladimir Putin and Donald Trump, who only had time to exchange opinions on the “Kerch Strait incident.” Trump’s refusal to meet with the President of the Russian Federation means a further loss of confidence between the two countries.

On the whole, meetings between heads of state were of particular importance at the summit, since, for instance, the meeting at the level of ministers of foreign affairs was downsized due to the absence of Russian and French ministers of foreign affairs, the U.S. Secretary of State and the High Representative of the Union for Foreign Affairs and Security Policy.

G20: The International Agenda

The so-called Iran nuclear deal has become one of the most crucial problems in international relations. Russia and the European Union have adopted the same stance on this issue.

In addition to economic matters, G20 also tackled the climate change problem and proposed complete and utter compliance with the decisions of the Paris Agreement on climate change. However, significant progress is unlikely after the withdrawal of the United States from the accord.

No less important were the discussions on the problem of terrorism. The G20 countries agreed that their Leaders’ Hamburg Statement on Countering Terrorism needed to be implemented. Incidentally, that statement declared the need to fight terrorism internationally in all its forms and manifestations. However, the current situation is extremely complicated, and discussions concerning Syria confirm this fact.

The influence of the European Union and the United Kingdom on the international security agenda and their claim that Russia is the main disrupting force are just as worrying. The European Union, in the person of Donald Tusk, sought to expand the summit’s agenda with a discussion of Russia’s so-called aggression against Ukraine, which he likened to the problem of trade wars. However, despite the suggestion put forward by both Tusk and the United Kingdom that the G20 discuss Russia’s allegedly impermissible conduct and use some instruments against it, the proposal failed to gain traction. It say a lot that the “Kerch Strait incident” did not overshadow any of the meetings held by the President of the Russian Federation at the G20 Summit.

The attention of international actors was also focused on the meeting between Donald Trump and Xi Jinping, who failed to achieve a consensus on economic interaction, but agreed to a 90-day moratorium on introducing increased tariffs. Accordingly, special hopes are pinned on this interim measure. Clearly, China will not make the unilateral concessions that the United States is calling upon it to do, appealing instead to the idea of a compromise.

Results of the G20 Summit

While the summit’s final declaration does not contain specific figures and objectives for the most sensitive issues on the agenda, it does offer mechanisms for their resolution. In this respect, the summit did not turn out to be a breakthrough in resolving pressing issues. However, it demonstrated that no issue will ever be resolved if the parties abandon dialogue and compromise.

The results of Russia’s efforts at the summit include the signing of a large set of bilateral agreements between public and private bodies. The summit also demonstrated that Russia is actively and successfully stepping up cooperation with Latin American countries and enhancing its multi-format collaboration with the BRICS nations, particularly with China and India.

It is both curious and telling that the media was most interested in the meetings held by Vladimir Putin, Xi Jinping, and Donald Trump. However, we should mention the different approaches of these heads of state. For example, the President of the United States demonstrated that his country was not especially interested in following the established rules and was far more concerned about retaining the right to develop new rules of the game independently of other participants in international relations. Meanwhile, China’s and Russia’s leaders spoke about cooperation and compromise both in their joint meetings held in various formats and in their conversations with other heads of state. Additionally, the fact that the world is changing rapidly was recognized at the summit, meaning that the rules of the game can and should be changed and that new rules need to be formulated, but only through collaboration and compromise.

The heads of state also appealed to the IMF and the World Bank to work towards improving the economic situation in various countries and increasing the transparency of their work in interacting with states. This should help reduce sovereign debt and ensure that the recommendations offered by international financial institutions in individual states are implemented more effectively.

In addition, the leaders of the G20 countries concluded that responses need to be developed to current and future challenges in the development of the WTO and attempts should be made to avoid excessive contradictions, sanctions and tariff restrictions. The parties also agreed that the WTO needs to be reformed for it to work more efficiently. This aspect will be considered at the next summit in Japan.

Interestingly, virtually all countries supported multi-laterality, confirmed their commitment to the rules of international trade and agreed that efforts to overcome crisis trends in the global economy should be stepped up in order to avoid a repetition of the 2008 global crisis. The final declaration states that the global economic growth is increasingly less synchronized between countries, which entails risks to economic security, particularly given geopolitical tensions and financial unpredictability. To overcome this problem, it is important to step up interaction and increase trust among all parties in international relations.

The G20 states also announced that it was necessary to continue joint work on studying the impact that the digitalization of economy has on the global tax system, which needs to be adapted to current conditions by 2019 (final decisions on the matter will be elaborated and published in 2020).

Thus, the G20 Summit in Buenos Aires once again demonstrated the significance of the mechanisms of dialogue and achieving compromise based on constant information exchange between countries. The compromise-based approach was officially adopted as the foundation of all agreements, and was the leitmotif of the event. Given the circumstances, an increasing number of states recognize their significance as participants in international relations and, with each passing year, they strive to more forcefully state their stance on the most sensitive issues. Clearly, the Russian Federation wholeheartedly welcomes this trend.

Therefore, it should be noted that the recent summit in Argentina demonstrated that the G20 is just that – a group of countries – and not a political club. This fact increases its significance as an organization exhibiting a multilateral, multi-format and pluralistic nature of today’s international relations. Active discussions in such a format confirm the relevancy of multipolarity and the current processes of reconfiguring the world. In such circumstances, Russia can most fully implement its interests and convey its vision of international matters. An analysis of the volume of news reports in the European media is quite telling in that it proves that EU journalists were primarily interested not so much in meetings of heads of EU states, but in meetings with the participation of the leaders of Russia, China and the United States, meaning that EU representatives were running second in the newsfeeds of many news agencies. Thus, the results of the summit allow us to state that there has been a significant increase in the international community’s attention on Russia.

First published in our partner RIAC

PhD in Political Science, Senior Lecturer, School of International Relations, Saint Petersburg State University

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Updating the USSR: A Test for Freedom

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Thirty years ago, on March 17, 1991, the only all-Union referendum in the history of the USSR took place. One question was put to a vote: “Do you consider it necessary to preserve the Union of Soviet Socialist Republics as a renewed federation of equal sovereign republics, in which the rights and freedoms of a person of any nationality will be fully guaranteed?” Almost 77 percent of those who voted said “yes” to the preservation of the USSR in an updated form. The authorities of Armenia, Georgia, Latvia, Lithuania, Moldova and Estonia refused to hold the referendum on their territory. By that time, the legislative and executive bodies and institutions in these republics were already controlled by secessionist forces, which did not hide their intentions to leave the USSR.

The March 17 referendum at that time was the only convincing attempt to appeal to public opinion on the most important issue of the political life of a huge country. However, the results did not change anything — by December 8 of the same year, the leaders of Belarus, Russia and Ukraine decided to dissolve the USSR. The referendum itself became the beginning of the end of a unique state — an experiment in the vast expanses of Eurasia. By that time, the republican elites were already ready to take power and wealth into their own hands; the events of August 1991 spurred this readiness — in Turkmenistan, where almost 100 percent of the population voted to preserve the USSR, on August 22, 1991, all enterprises were placed under republican control.

All the republics of the USSR met the new year in 1992 as newly independent states. For some of them, this status was a long-awaited event, for which they had fought. Others were, according to former Prime Minister of Kyrgyzstan Apas Jumagulov, “thrown out of the union, cut off as an unnecessary part of the body.” Many economic ties broke off immediately, while others collapsed gradually; the rest survived and were even strengthened. In politics, everyone was left to their own problems. Azerbaijan, Armenia, Georgia, Moldova and Tajikistan plunged into bloody political and interethnic conflicts during their first years of independence.

The path of the countries that emerged from the ruins of the USSR over the years was the road to gaining their own subjectivity in international politics. With great difficulty and despite all odds, Armenia and Moldova are coping with this task. The majority — Russia, Azerbaijan and all the countries of Central Asia — were able to solve the problem more or less successfully. Georgia and two Slavic republics — Belarus and Ukraine, were hanging in the “limbo” between external management and full-fledged statehood. The three Baltic republics quickly transferred their sovereignty to the European Union and NATO. In their independent development, they had to make, in fact, the only decision, which, moreover, was due to historical reasons and external circumstances. This decision was made and now the fate of Latvia, Lithuania and Estonia cannot be perceived outside the context of Russia-West interaction.

For the rest, the direct link between success in creating their own statehood and the scale of interaction with the West (Europe and the United States) is quite obvious. This historical fact reveals a relationship between the ability of small and medium states to ensure their sovereignty and the interests of the great powers in their neighbourhood. Such powers were Russia and the European states, united into the European Union simultaneously with the collapse of the USSR. Also, an important role was played by the United States, which always sought to limit Russian opportunities and supported the newly independent states. At the same time, an attempt to choose in favour of closer relations with the West to the detriment of Russian interests in all cases, without exception, led to a very shaky statehood and the loss of territory.

The dramatic fate of Armenia, Georgia, Moldova and Ukraine shows that the strong collective institutions of the West are capable of exerting a stabilising effect only on those states that directly became part of them.

In all other cases, no matter how complete absorption becomes possible, an orientation towards these institutions only leads to the use of small countries in a diplomatic game with bigger partners.

Therefore, the experience of the development of such major players as Azerbaijan or Uzbekistan is indicative — they were able to confidently form their own statehood, without finding themselves in a situation of choosing between conflicting poles of power. Their main resource turned out to be a rather fair demographic situation. But not only this — the population of Ukraine has also been and remains large by European standards. Kazakhstan is a success by this indicator; equal to the average European country or small Asian states.

Therefore, the ability of most of the countries of the former USSR to build relatively independent and stable statehood played no less important role. In many ways, this ability was established during the years of the Soviet Union’s existence. Founded on December 30, 1922, it was not just a continuation of the Russian Empire, which had collapsed five years earlier. Its main distinguishing feature was its unique model of state administration, based on the full power of one political party. As long as the unique position of the Communist Party remained in the Soviet state, the experiment could exist. With the abolition of Article 6 of the Constitution of the USSR, its days were numbered regardless of the desire of the population or the real readiness of the elites to take full responsibility for what was happening.

The USSR model of state structure, new by historical standards, created the conditions for a rather unique experiment, within the framework of which union republics were created, none of which, except for Russia, Georgia and Armenia, had the experience of centralised state administration within the territorial boundaries that they acquired within the framework of the USSR. At least the peoples inhabiting them can boast of a significant experience of statehood as such. Thus, most of the countries of Central Asia trace their ancestry back to great empires or urban civilizations of past centuries.

The Baltic republics were always on the sidelines — their independent statehood arose during the collapse of the Russian Empire and existed as such for almost 20 years before being incorporated into the USSR in 1940. Russia has returned to its historical state of being a major European power or empire of the 19th century, with the development of a multinational and multi-faith society central to its development objectives. In fact, Russia has not lost anything really necessary for its survival in international politics.

The peculiar structure of the USSR formalised the situation in which the former outskirts of the Russian Empire ceased to be part of the Russian state, although Moscow served as the centre of the union. Russia among them was in the most ambiguous position — it did not have its own most important institutions of Soviet statehood — the party organisation and the republican State Security Committee. Russian nationalism was subjected to the most severe and consistent persecution by the Soviet authorities.

The vast majority of republics within the USSR, for the first time, received the experience of building their own state and their national elite.

The backbone of the ruling class was the Soviet and party nomenklatura, which all took power, with few exceptions, after 1991. Even in Tajikistan, where the first years of independence were overshadowed by the civil war, it was this part of society that was eventually able to establish control over the situation. In other Central Asian countries, elites formed on the basis of the state tradition established during the Soviet era, gradually supplemented by representatives of a new generation that grew professionally after the collapse of the USSR.

Thirty years is a sufficient period to assess the results of the independent development of the countries that emerged from the republics of the former USSR. Now the period of their growing up can be considered complete; ahead is an independent future. Russia is increasingly feeling independent and not particularly obligated to its neighbours. In any event, Moscow will continue to follow a moral imperative of responsibility for maintaining peace and strictly ensure that its neighbours correlate their actions with Russian security interests.

From our partner RIAC

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Fighting Covid-19 pandemic: The Russian Way

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With a strong structured plan and that includes President Vladimir Putin weekly meetings with regional governors and related ministry officials, Russia is indeed making headway in mobilizing first its own domestic resources in fighting and controlling the coronavirus pandemic.

Under these time-testing conditions, the Russian government also ponders on the necessity to adopt a concerted approach to the economic sectors related to public health system, making efforts to strengthen fundamental research in all health disciplines and close the pitfalls in its policy.

Arguably, Russia is really moving with innovative orientations, exploring and finding lasting solutions. Russia is far ahead, both in terms of medical tests and vaccines. Currently, it is partnering with India and South Korea in manufacturing vaccines for immunization of both foreigners and Russians.

“India and South Korea are already producing the vaccine, and many of these enterprises will reach full capacity in April. Thus, this is truly the greatest achievement of Russian science, which is widely  acknowledged by the entire world,” CEO of the Russian Direct Investment Fund (RDIF) Kirill Dmitriev told Russian President Vladimir Putin during an early April meeting to review developments as well as production and promotion of Russian vaccines.

In addition, he informed the president that RDIF and its partners are actively working with Russian manufacturers, it took us three months to build Sputnik Technopolis, one of the largest plants to produce the vaccine, and together with R-Pharm. Russia is setting up international production per agreements with 10 countries and 20 manufacturers, including the world’s largest producers.

Beyond that, the Russian Direct Investment Fund is actively implementing a programme, of course, with a focus on vaccinating Russian citizens, but part of the vaccine produced abroad will simultaneously be delivered to foreign markets, according Dmitriev.

According to his assessment, Russia is not only one of the current leaders in the world in terms of vaccination rate, but it can provide vaccines to all people in Russia who want to be vaccinated before June using the production capacities in Russia and abroad.

“As I understood from talking to experts, our vaccine is effective against all known strains of the virus,” Putin commented during the discussion, and Kirill Dmitriev smartly added that “due to the two jabs, it is better than the other vaccines as relates to mutations. We believe that our vaccine is one of the best in the world, including against new strains of COVID-19.”

Reports show that Russia has produced 20.1 million doses of the Sputnik V vaccine as of March 17, while 4.3 million people, out of a population of 144 million, have received both shots of the vaccine.

According to data from Johns Hopkins University, at 225,572, the total coronavirus-related death toll places Russia third after the United States, which has reported over 553,000 deaths, and Brazil, with over 325,000.

According to the Russian Statistics Service, this April Russia has recorded over 225,000 deaths related to coronavirus since the start of the pandemic. That Russia has the third highest death toll in the world.

The Russian Direct Investment Fund (RDIF) is Russia’s sovereign wealth fund established in 2011 by the Russian government to make investments in leading companies of high-growth sectors of the Russian economy. Its mandate is to co-invest alongside the world’s largest institutional investors – direct investment funds, sovereign wealth funds and leading companies.

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Growing US Pressure Incentive to Make China-Russia Ties More Diverse

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image credit: kremlin.ru

Two months after the inauguration of Present Joe Biden, with the political dust in Washington settling down, it is becoming increasingly clear that the US Democratic administration policy toward Russia and China contains more elements of continuity than elements of change. Unfortunately, this continuity is not something that they would like to observe in Moscow and Beijing.

If someone has hoped that a swift and unconditional extension of the New START agreement might trigger a renewed US-Russian dialogue on strategic stability and arms control, these hopes have gone up in smoke after the US president labeled his Russia peer as a “killer.” Biden also unequivocally rejected the idea of security debates offered by President Vladimir Putin. Before the US-Chinese “2+2” meeting in Anchorage, Alaska, there could have been expectations of at least a limited détente between Washington and Beijing. But now after this very tense and not quite productive meeting, such expectations have just evaporated into thin air.

One can only guess why the Biden team opted to continue the “dual containment” approach of its predecessors toward the main US geopolitical opponents with such a relentless zeal and vigor. Maybe in the White House they decided that any shade of US flexibility would be interpreted in Moscow and in Beijing as a sign of an American weakness, and as an invitation to seek more concessions from the administration. Maybe Biden is concerned about potential criticism that a more flexible approach could generate powerful Republican reactions from neo-cons on the Hill and from a defeated, but not yet completely politically destroyed, Donald Trump. Maybe, by pursuing this tough line, the new administration intends to demonstrate to the US public and the American allies and partners abroad its unbreakable commitment to human rights and democracy promotion agenda.

In any case, with the change of guard in the White House the rules of the game on the Great Eurasian Chessboard have not changed a bit. The Biden administration, like the Trump administration before it, continues to push the world toward a new bipolarity. It should not be surprising, therefore, that Russian Foreign Minister Sergey Lavrov rushed to Guilin to meet his Chinese counterpart Wang Yi, marking his first visit to the country since the coronavirus outbreak.

The formal goal of the trip is to discuss the 20-year anniversary of the Treaty of Good-Neighborliness and Friendly Cooperation between the People’s Republic of China and the Russian Federation signed in July of 2001. The treaty has indeed been a remarkable accomplishment of the two sides. But the ongoing conversation between Lavrov and Wang is not limited to expressions of mutual admiration; it focuses mostly on how Moscow and Beijing could work hand in hand with each other responding to the US assertiveness. There are many ways to do that—ranging from solidarity voting in international organizations to coordinating national information strategies, to working with like-minded countries across the globe and to exchanging best practices in preventing the US interference into Russia’s and China’s domestic affairs respectively.

Neither in Moscow nor in Beijing do they harbor illusions about opportunities to fix their problems with Washington anytime soon; the two foreign ministers are going to hammer out a new, enhanced model of the bilateral strategic partnership for years to come. Though a common interest in responding to the growing US pressure is definitely not the only driver for closer economic, political and military ties between Russia and China, the US factor is an important additional incentive for making these ties more diverse and intensive.

After China, Foreign Minister Lavrov is making an extended stop in South Korea. Here, again, the Russian minister can find plenty of issues to discuss with his hosts that have little or nothing to do with the US. After all, we are approaching 30 years since diplomatic relations between Moscow and Seoul were established—a remarkable jubilee and a nice opportunity to reflect on the next 30 years!

However, under the circumstances, Lavrov will undoubtedly try to test the limits of the ROK’s “strategic autonomy” from Washington. True, ROK is a US ally and it regards America as its prime security provider. Still, Seoul has special relations with Beijing and Moscow; these special relations are ones the ROK is not ready to give up. The ROK-China economic relations remain critical for the South Korea prosperity. The South Korean approach to North Korea is not a carbon copy of the US or Japanese positions. It is clear that the South Korean leadership is not ready to automatically subscribe to any new anti-Russian or anti-Chinese policies from Washington.

At the end of the day, the outcome of the Great Game on the Global Chessboard will depend on whether there are regional players bold enough to question the archaic bipolar thinking emanating from Washington today. The outcome of Lavrov’s trip to Seoul might be an interesting case to watch.

From our partner RIAC

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