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US Blunders have made Russia the Global Trade Pivot

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The year 2019 had barely begun before news emerged that six Russian sailors were kidnapped by pirates off the coast of Benin. It was perhaps a foretaste of risks to come. As nations reel from deteriorating economic conditions, instances of piracy and other forms of supply chain disruptions are bound to increase.

According to the International Maritime Bureau (IMB), 107 cases of piracy were noted during the first half of 2018 vis-à-vis 87 throughout 2017. The 2018 tally included 32 cases in Southeast Asian waters and 48 along African shores –representing 75% of the total. To put this figure into perspective, Asian behemoths India and China – despite their vast shorelines – recorded only 2 cases of piracy each during the study period. Russia had none. In terms of hostages taken, the IMB tally read 102 in H1 2018 vs 63 in H1 2017.

Piracy adds to shipping and retail costs worldwide as security, insurance and salaries are hiked to match associated risks in maritime transport. Merchant vessels will also take longer and costlier routes to avoid piracy hotspots.

A United Nations Office on Drugs and Crime(UNODC) report in 2016 sums up the perils ahead: “As over 90% of global trade is carried out by sea, the economic effects of maritime crime can be crippling. Maritime crime includes not only criminal activity directed at vessels or maritime structures, but also the use of the high seas to perpetrate transnational organized crimes such as smuggling of persons or illicit substances.  These forms of maritime crime can have devastating human consequences.”

Indeed, cases of human trafficking, organ harvesting, and the smuggling of illicit substances and counterfeit goods are proliferating worldwide in tandem with rising systemic debt and suspect international agendas.

Australia offers a case in point. While it fantasizes over a Quad of allies in the Indo-Pacific – to “save Asians from China” –criminal elements from Hong Kong, Malaysia to squeaky-clean Singapore have been routinely trafficking drugs, tobacco and people right into Sydney harbour for years,  swelling the local organised crime economy toas much as $47.4 billion (Australian dollars presumably) between 2016 and 2017.

With criminal elements expected to thrive during a severe recession, they will likely enjoy a degree of prosecutorial shielding from state actors and local politicians. But this is not a Southeast Asian problem alone; any superpower wishing to disrupt Asia-Europe trade arteries – the main engine of global growth– will have targets of opportunity across oceans and lands.  The US-led war against Syria had not only cratered one potential trans-Eurasia energy and trade node, it served as a boon for child trafficking, organ harvesting and slavery as well. Yet, it is President Bashar al-Assad who is repeatedly labeled a “butcher” by the Anglo-American media.

Ultimately, industries in Asia and Europe will seek safer transit routes for their products. The inference here is inevitable: the greatest logistical undertaking in history – China’s Belt and Road Initiative (BRI) – will be highly dependent on Russian security umbrella, particularly in Central Asia. Russia also offers an alternative transit option via the Northern Sea Route, thereby avoiding any potential pan-Turkic ructions in Central Asia in the future.

Russo- and Sinophobia explained?

In retrospect, Washington’s reckless policies post-Sept 11 2001seem aimed at disrupting growing synergies between Asia and Europe. This hypothesis helps explain the relentless US-led agitprops against Russia, China and Iran.

When the gilet jaunes (yellow vest) protests rocked France weeks ago, it was only a matter of time before some pundits blamed it on Russia. US President Donald J. Trump cheered on; just as “billionaire activist” George Soros celebrated the refugee invasion of Europe and the Arab Spring earlier. If the yellow vest contagion spreads to the Western half of Europe, its economies will flounder. Cui bono? A Russia that can reap benefits from the two-way BRI or Arctic trade routes or a moribund United States that can no longer rule roost in an increasingly multipolar world?

Trump’s diplomatic downgrade of the European Union and his opposition to the Nord Stream 2 gas pipeline matches this trade-disruption hypothesis, as do pressures applied on India and China to drop energy and trade ties with Iran. Washington’s trade war with Beijing and recent charges against Huawei – arguably Asia’s most valuable company –seem to fit this grand strategy.

If China concedes to importing more US products, Europe will bear the consequences. Asians love European products ranging from German cars to Italian shoes and Europe remains the favourite vacation destination for its growing middle class. Eastern European products and institutions are also beginning to gain traction in Asia. However, these emerging economies will suffer if their leaders cave in to Washington’s bogeyman fetish.

Even if Europe is somehow taken out of the trade equation, greater synergy between the RIC (Russia, India and China) nations may be enough – at least theoretically – to pull their nations through anticipated global volatilities ahead.

In the meantime, as the US-led world crumbles, it looks like Russia is patiently bidding its time to become the security guarantor and kingmaker of Asia-Europe trade.  A possible state of affairs wrought more by American inanity rather than Russian ingenuity…

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Putin’s post-Soviet world remains a work in progress, but Africa already looms

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Russian civilisationalism is proving handy as President Vladimir Putin seeks to expand the imaginary boundaries of his Russian World, whose frontiers are defined by Russian speakers and adherents to Russian culture rather than international law and/or ethnicity.

Mr. Putin’s disruptive and expansive nationalist ideology has underpinned his aggressive

 approach to Ukraine since 2014 with the annexation of Crimea and the stoking of insurgencies in the east of the country. It also underwrites this month’s brief intervention in Kazakhstan, even if it was in contrast to Ukraine at the invitation of the Kazakh government.

Mr. Putin’s nationalist push in territories that were once part of the Soviet Union may be par for the course even if it threatens to rupture relations between Russia and the West and potentially spark a war. It helps Russia compensate for the strategic depth it lost with the demise of communism in Europe and the collapse of the Soviet Union.

However, equally alarmingly, Mr. Putin appears to be putting building blocks in place that would justify expanding his Russian World in one form or another beyond the boundaries of the erstwhile Soviet Union.

In doing so, he demonstrates the utility of employing plausibly deniable mercenaries not only for military and geopolitical but also ideological purposes.

Standing first in line is the Central African Republic. A resource-rich but failed state that has seen its share of genocidal violence and is situated far from even the most expansive historical borders of the Russian empire, the republic could eventually qualify to be part of the Russian world, according to Mr. Putin’s linguistic and cultural criteria.

Small units of the Wagner Group, a private military company owned by one of Mr. Putin’s close associates, entered the Centra African Republic once departing French troops handed over to a United Nations peacekeeping force in 2016. Five years later, Wagner has rights to mine the country’s gold and diamond deposits.

Perhaps surprisingly, the Russian mercenary presence persuaded President Faustin-Archange Touadera that the African republic should embrace Russian culture.

As a result, university students have been obliged to follow Russian-language classes starting as undergraduates in their first year until their second year of post-graduate studies. The mandate followed the introduction of Russian in the republic’s secondary school curriculum in 2019.

Mr. Touadera is expected to ask Mr. Putin for Russian-language instructors during a forthcoming visit to Moscow to assist in the rollout.

Neighbouring Mali could be next in line to follow in Mr. Touadera’s footsteps.

Last month, units of the Wagner Group moved into the Sahel nation at the request of a government led by army generals who have engineered two coups in nine months. The generals face African and Western sanctions that could make incorporating what bits of the country they control into the Russian world an attractive proposition.

While it is unlikely that Mr. Putin would want to formally welcome sub-Saharan and Sahel states into his Russian world, it illustrates the pitfalls of a redefinition of internationally recognised borders as civilisational and fluid rather than national, fixed, and legally enshrined.

For now, African states do not fit Mr. Putin’s bill of one nation as applied to Ukraine or Belarus. However, using linguistics as a monkey wrench, he could, overtime or whenever convenient, claim them as part of the Russian world based on an acquired language and cultural affinity.

Mr. Putin’s definition of a Russian world further opens the door to a world in which the principle of might is right runs even more rampant with the removal of whatever flimsy guard rails existed.

To accommodate the notion of a Russian world, Russian leaders, going back more than a decade, have redefined Russian civilisation as multi-ethnic rather than ethically Russia.

The Central African Republic’s stress on Russian-language education constitutes the first indication in more than a decade that Mr. Putin and some of his foreign allies may expand the Russian world’s civilisational aspects beyond the erstwhile Soviet Union.

Some critics of Mr. Putin’s concept of a Russian world note that Western wars allegedly waged out of self-defense and concern for human rights were also about power and geopolitical advantage.

For example, pundit Peter Beinart notes that NATO-led wars in Serbia, Afghanistan, and Libya “also extended American power and smashed Russian allies at the point of a gun.”

The criticism doesn’t weaken the legitimacy of the US and Western rejection of Russian civilisationalism. However, it does undermine the United States’ ability to claim the moral high ground.

It further constrains Western efforts to prevent the emergence of a world in which violation rather than the inviolability of national borders become the accepted norm.

If Russian interventionism aims to change borders, US interventionism often sought to change regimes. That is one driver of vastly different perceptions of the US role in the world, including Russian distrust of the post-Soviet NATO drive into Eastern Europe and independent former Soviet states such as Ukraine.

“People with more experience of the dark side of American power—people whose families hail from Guatemala, Chile, Brazil, Haiti, or Mexico, where US guns have sabotaged democracy rather than defended it—might find it easier to understand Russian suspicions. But those Americans tend not to shape US policy towards places like Ukraine,” Mr. Beinart said.

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Neighbours and Crises: New Challenges for Russia

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Through all the discussions that accompanied the preparation of the Valdai Club report “Space Without Borders: Russia and Its Neighbours”, the most clear question was whether Russia should or should not avoid repeating the historical experience of relations with its near abroad. This experience, in the most general terms, is that after Russia pacifies its western border with its foreign policy, the Russian state inevitably must turn to issues related to the existence of its immediate neighbourhood. With a high degree of probability, it will be forced to turn to its centuries-old method for solving problems that arise there: expansion for the sake of ensuring security.

Now Russia’s near abroad consists of a community of independent states that cannot ensure their own security and survival by relying only on their own forces; we cannot be completely sure of their stability. From Estonia in the west to Kyrgyzstan in the east, the existence of these countries in a competitive international environment is ensured by their link with one of the nuclear superpowers. Moreover, such connections can only complement each other with great difficulty. As the recent developments in Kazakhstan have demonstrated, they are not limited to the threat of an external invasion; even internal circumstances can become deadly.

The dramatic events in that country were intensified by external interference from the geostrategic opponents of Russia, as well as international terrorists, but it would be disingenuous to argue that their most important causes are not exclusively internal and man-made. We cannot and should not judge whether the internal arrangements of our neighbours are good or bad, since we ourselves do not have ideal recipes or examples. However, when dealing with the consequences, it is rational to fear that their statehood will either be unable to survive, or that their existence will take place in forms that create dangers which Russia cannot ignore.

In turn, the events experienced now in relations between Russia and the West, if we resort to historical analogies, look like a redux of the Northern War. The Great Northern War arose at the beginning of the 18th century as the result of the restoration of Russia’s power capabilities; the West had made great progress in approaching the heart of its territory. Within the framework of this logic, victory, even tactical victory, in the most important (Western) direction will inevitably force Russia to turn to its borders. Moreover, the reasons for paying more attention to them are obvious. This will present Russia with the need to decide on how much it is willing to participate in the development of its neighbours.

The developments in Kazakhstan in early January 2022 showed the objective limits of the possibilities of building a European-style sovereign state amid new, historical, and completely different geopolitical circumstances. More or less all the countries of the space that surrounds Russia, from the Baltic to the Pamir, are unique experiments that arose amid the truly phenomenal orderliness of conditions after the end of the Cold War. In that historical era, the world really developed under conditions where a general confidence prevailed that the absolute dominance of one power and a group of its allies creates conditions for the survival of small and medium-sized states, even in the absence of objective reasons for this.

The idea of the “end of history” was so convincing that we could accept it as a structural factor, so powerful that it would allow us to overcome even the most severe objective circumstances.

The Cold War era created the experience of the emergence and development of new countries, which until quite recently had been European colonies. Despite the fact that there are a few “success stories” among the countries that emerged after 1945, few have been able to get out of the catch-up development paradigm. However, it was precisely 30 years ago that there really was a possibility that a unipolar world would be so stable that it would allow the experiment to come to fruition. The visible recipes of the new states being built were ideal from an abstract point of view, just as Victor Frankenstein was guided by a desire for the ideal.

Let us recall that the main idea of our report was that Russia needs to preserve the independence of the states surrounding it and direct all its efforts to ensure that they become effective powers, eager to survive. This desire for survival is seen as the main condition for rational behaviour, i.e. creating a foreign policy, which takes into account the geopolitical conditions and the power composition of Eurasia. In other words, we believe that Russia is interested in the experiment that emerged within the framework of the Liberal World Order taking place under new conditions, since its own development goals dictate that it avoid repeating its past experience of full control over its neighbours, with which it shares a single geopolitical space.

This idea, let’s not hide it, prompted quite convincing criticism, based on the belief that the modern world does not create conditions for the emergence of states where such an experience is absent in more or less convincing forms. For Russia, the challenge is that even if it is technically capable of ensuring the immediate security of its national territory, the spread of the “grey zone” around its borders will inevitably bring problems that the neighbours themselves are not able to solve.

The striking analogy proposed by one colleague was the “hallway of hell” that Russia may soon face on its southern borders, making us raise the question that the absence of topographic boundaries within this space makes it necessary to create artificial political or even civilisational lines, the protection of which in any case will be entrusted to the Russian soldier. This January we had the opportunity to look into this “hallway of hell”. There is no certainty that the instant collapse of a state close to Russia in the darkest periods of its political history should be viewed as a failure in development, rather than a systemic breakdown of the entire trajectory, inevitable because it took shape amid completely different conditions.

Therefore, now Russia should not try to understand what its further strategy might be; in any case, particular behaviour will be determined by circumstances. Our task is to explore the surrounding space in order to understand where Russia can stop if it does not want to resort to the historical paradigm of its behaviour. The developments in Kazakhstan, in their modern form, do not create any grounds for optimism or hopes for a return to an inertial path of development. Other states may follow Ukraine and Kazakhstan even if they now look quite confident. There are no guarantees — and it would be too great a luxury for Russia to accept such a fate.

This is primarily because the Russian state will inevitably face a choice between being ready for several decades of interaction with a huge “grey zone” along the perimeter of its borders and more energetic efforts to prevent its emergence. It is unlikely that Moscow would simply observe the processes taking place on its immediate periphery. This is not a hypothetical invasion of third forces — that does not pose any significant threat to Russia. The real challenge may be that in a few decades, or sooner, Moscow will have to take on an even greater responsibility, which Russia got rid of in 1991. Even now, there seems to be a reason to believe that thirty years of independence have made it possible to create elements of statehood that can be preserved and developed with the help of Russia.

from our partner RIAC

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Do as You’re Told, Russia Tells the Neighborhood

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The Kremlin has always argued that it has special interests and ties to what once constituted the Soviet space. Yet it struggled to produce a smooth mechanism for dealing with the neighborhood, where revolutionary movements toppled Soviet and post-Soviet era political elites. Popular movements in Georgia, Ukraine, Moldova, Kyrgyzstan, and most recently Kazakhstan have flowered and sometimes triumphed despite the Kremlin’s rage.

Russia’s responses have differed in each case, although it has tended to foster separatism in neighboring states to preclude their westward aspirations. As a policy, this was extreme and rarely generated support for its actions, even from allies and partners. The resultant tensions underlined the lack of legitimacy and generated acute fear even in friendlier states that Russia one day could turn against them.

But with the activation of the hitherto largely moribund six-nation Collective Security Treaty Organization (CSTO) in Kazakhstan seems to be an entirely different matter. Here, for the first time since its Warsaw Pact invasions, Russia employed an element of multilateralism. This was designed to show that the intervention was an allied effort, though it was Russia that pulled the strings and contributed most of the military force.

CSTO activation is also about something else. It blurred the boundaries between Russia’s security and the security of neighboring states. President Vladimir Putin recently stated the situation in Kazakhstan concerned “us all,” thereby ditching the much-cherished “Westphalian principles” of non-intervention in the internal affairs of neighboring states. The decision was also warmly welcomed by China, another Westphalia enthusiast.

In many ways, Russia always wanted to imitate the US, which in its unipolar moment used military power to topple regimes (in Afghanistan and Iraq) and to restore sovereignty (in Kuwait.) Liberal internationalism with an emphasis on human rights allowed America and its allies to operate with a certain level of legitimacy and to assert (a not always accepted) moral imperative. Russia had no broader ideas to cite. Until now. Upholding security and supporting conservative regimes has now become an official foreign policy tool. Protests in Belarus and Kazakhstan helped the Kremlin streamline this vision.

Since Russia considers its neighbors unstable (something it often helps to bring about), the need for intervention when security is threatened will now serve as a new dogma, though this does not necessarily mean that CSTO will now exclusively serve as the spearhead of Russian interventionist policy in crises along its borders. On the contrary, Russia will try to retain maneuverability and versatility. The CSTO option will be one weapon in the Kremlin’s neighborhood pacification armory.

Another critical element is the notion of “limited sovereignty,” whereby Russia allows its neighbors to exercise only limited freedom in foreign policy. This is a logical corollary, since maneuverability in their relations with other countries might lead to what the Kremlin considers incorrect choices, like joining Western military or economic groupings.

More importantly, the events in Kazakhstan also showed that Russia is now officially intent on upholding the conservative-authoritarian regimes. This fits into a broader phenomenon of authoritarians helping other authoritarians. Russia is essentially exporting its own model abroad. The export includes essential military and economic help to shore up faltering regimes.

The result is a virtuous circle, in the Kremlin’s eyes. Not only can it crush less than friendly governments in its borderlands but it also wins extensive influence, including strategic and economic benefits. Take for instance Belarus, where with Russian help, the dictator Aliaksandr Lukashenka managed to maintain his position after 2020’s elections through brutality and vote-rigging. The end result is that the regime is ever-more beholden to Russia, abandoning remnants of its multi-vector foreign policy and being forced to make financial and economic concessions of defense and economics to its new master. Russia is pressing hard for a major new airbase.

A similar scenario is now opening up in Kazakhstan. The country which famously managed to strike a balance between Russia and China and even work with the US, while luring multiple foreign investors, will now have to accept a new relationship with Russia. It will be similar to Belarus, short of integration talks.

Russia fears crises, but it has also learned to exploit them. Its new approach is a very striking evolution from the manner in which it handled Georgia and Ukraine in 2008 and 2014, through the Belarus and Armenia-Azerbaijan crises in 2020 to the Kazakh uprising of 2022.

Russia has a new vision for its neighborhood. It is in essence a concept of hierarchical order with Russia at the top of the pyramid. The neighbors have to abide by the rules. Failure to do so would produce a concerted military response.

Author’s note: first published in cepa

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