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Surprise signing of “Steinmeier formula”: Causes and consequences

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The news about the so-called “Steinmeier formula” having been signed by all members of the Trilateral Contact Group (TCG) came as a big surprise. All the more so, since the September 4 agreement by the political advisers to the presidents of the Normandy Four countries to endorse the proposal made a big buzz in the world media, and set off a storm of angry outrage in the Ukrainian press with a number of political and public figures, as well as representatives of nationalists all but calling President Vladimir Zelensky a traitor. Former President Leonid Kuchma, who represents Ukraine at the Contact Group, refused to sign the formula during a group meeting on September 18. In a bid to rectify the situation, they started talking about the existence of some alleged “Zelensky formula, whose contents was never made public.

Until the “formula” was actually signed at the October 1 meeting by the Contact Group, there had been neither announcements of, nor preparations for this. What happened between September 18 and October 1, which eventually prompted President Zelensky’s decision to sign the “formula”?

The UN General Assembly, during which Vladimir President Zelensky finally met with President Donald Trump, advised him to establish closer ties with Russian President Vladimir Putin and settle differences together. Shortly afterwards, the White House published, without securing any prior agreement from Kiev, the transcript of a telephone linkup between Trump and Zelensky. This was followed by the resignation of the US Special Envoy for Ukraine, Kurt Volker.

These two important developments are a clear sign of Washington’s utilitarian attitude towards Kiev. However, even if they did influence Kiev’s further actions, they only served as a catalyst. Finding himself on the brink of a diplomatic scandal with France and Germany, Zelensky needed to make good his campaign promises and move fast to maintain his lead over his political opponents (presidential elections – parliamentary elections – government formation – exchange of prisoners – signing of the “Steinmeier formula”- a meeting of the “Normandy Four”).

The signing of the “Steinmeier formula” at the Contact Group opened the way for a summit of the heads of state of the “Normandy Four” is open, and this is the most significant and, maybe, the only result of the October 1 signing. 

The signing of the “Steinmeier formula” is seen by Ukrainian media as an act of treason. Why? Because they are afraid. Of what?

“Do you know what the sense of this document (Minsk agreements – D.B.) was? That it will not be implemented. The sides had different interpretations of the text of the agreements, which gave Ukraine time to contain Russia, which faced additional Western sanctions. (…) Decentralization will be interpreted as federalization, local elections will be held, which the OSCE, being financially dependent on Russia, will formally recognize. At the same time, the constitution will be changed and the law on special status implemented, this time in full. Only after this (according to the Minsk agreements), will Ukraine restore control over its border. After all, it is clear that Moscow will only implement the first part of the agreement. (…) The authorities there will be formed by the Kremlin. Next up is a nationwide election in Ukraine. And the key to parliament is in the hands of the Russian authorities,” the Ukrainian website lb.ua news writes. 

In this logic, even the OSCE plays on Russia’s side. The main thing for Kiev, however, is that the documents will never be implemented.

Moreover, according to Russian experts, Kiev has ample opportunities to sabotage the Minsk agreements even after they have been signed. 

Andrei Kortunov gives his own picture of how the situation may develop further:

1. The Ukrainian law on the special status of Donbass will soon expire. A new law will be adopted, and what it will look like we do not know.

2. Kiev’s formal consent to the “Steinmeier formula” is not entirely obvious.   It says that it endorsed only the general principle of the formula. Moreover, given the strong efforts being made to undermine the Ukrainian position, just how the preparations for the summit will go depends on the political will of the Ukrainian leadership.

3. Disagreements remain, in particular, concerning the special status of Donbass.

That being said, the process has still moved forward. I do hope that all participants in this process will show maximum flexibility, so that it keeps moving on, which would probably provide some tangible results in the next three to four months.”

In a sober assessment of what happened, the OSCE Special Representative Martin Sajdik, noted that the signatures are not under one common document, but under separate letters. This means that theoretically, each side could stick to its own interpretation of the formula. As for the local elections in Donbass, Sajdik continues, there are many questions that need to be answered before the elections:

“There is still much work to be done on this issue within the contact group and in the ‘Normandy format,’” he told reporters. “A lot of work remains in the political subgroup of the contact group. It is in it that it will be necessary to talk about the holding of elections.”

He added that many questions remain open, including the security of the upcoming procedure; and that the “Normandy format” summit could be the first step in this direction.

As for the “Steinmeier formula,” it is only a mechanism which, as part of diplomatic cooperation in the “Normandy Four” format, symbolizes the participants’ readiness to resolve the conflict in southeastern Ukraine and determine the future status of the republics of Donbass. It does not guarantee the implementation of the Minsk accords though. 

Moreover, a statement issued by representatives of the unrecognized republics demands a step-by-step roadmap of what needs to be done now.  They believe that the signing of the “Steinmeier formula” should be viewed as recognition of the right of the people of Donbass to determine their own fate. This is the bottom line of the joint statement made by the leaders of the Donetsk and Lugansk People’s Republics (DPR and LPR), Denis Pushilin and Leonid Pasechnik.

“Yesterday, thanks to Russia, Germany and France, Ukraine finally signed the Steinmeier formula, which guarantees Donbass a special status. Thus, it   recognizes the special right of the people of Donbass to independently determine their fate. It is up to us to decide what language to speak, what kind of an economy we need, how our judicial system will be formed, how our people’s militia will protect our citizens, and how we will integrate with Russia. This is our business and our goal, and we will continue negotiations in Minsk in order to ultimately achieve self-rule and self-determination,” the statement says.”

The signing of the “formula” provoked fierce resistance on the part of the advocates of the so-called “Poroshenko’s course,” as the “party of war” considers the signing as a sign of surrender. Meanwhile, the European Union and its leading members welcomed Zelensky’s move. Paradoxically, Ukrainian parties, which support European integration, such as European Solidarity, Golos and Batkivshchyna, took an anti-European position. The nationalists brought about 2,000 people to the streets of Kiev and in many other cities (200-300 people in each city), who chanted “No surrender!” and called for the impeachment of President Zelensky.

In an October 2 appeal to Ukrainians protesting against the signing of the “Steinmeier formula,” President Zelensky said: “Today there is only one platform where these issues can be discussed at the highest level. This is a meeting in the Normandy format … This formula says only one thing – namely, exactly when the so-called law on the special status of the Donbass should work. It will after local elections have been held there according to the Constitution of Ukraine, the laws of Ukraine, and after the publication of the OSCE report that the elections were held in line with internationally recognized democratic standards.”

Political advisers to the leaders of the “Normandy Four” can confirm the signing of the “Steinmeier formula.” At their meeting, the heads of state of the “Normandy Four” can agree the “formula” as the initial mechanism for the implementation of the Minsk accords.

However, it is Kiev, who holds the key to the implementation of the “formula,” or rather, the Minsk agreements as a whole. Political decisions taken on the international level need to be followed up by the Ukrainian parliament, which should pass laws on the special status of the unrecognized republics, and an election law, after which local elections should be held.  President Zelensky has a majority in the Verkhovna Rada and can amend the constitution in such a way that it outlines the special status of the unrecognized republics of Donbass.

Depending on the intentions of the Ukrainian leadership, the situation may develop according to several scenarios:

1) Zelensky uses his majority in parliament to push through laws, necessary for the implementation of the Minsk agreements.

2) Zelensky fails to muster parliamentary support, since his majority is not solid enough. 

3) Zelensky receives parliamentary support, the laws are passed, but the Minsk agreements are interpreted in such a way that only Kiev can arrange. For example, “special status” is interpreted as part of a decentralization policy. The implementation of the Minsk accords is put on hold again. 

In the first scenario, the adopted laws will need to be implemented, which could prove extremely difficult.

In the second scenario, President Zelensky could say: “The elected representatives of the Ukrainian people failed to support the implementation of the Minsk agreements. I did all I could, but ‘everything is possible.’ Therefore, it is necessary to amend the Minsk agreements and look for a new formula of their implementation. And this is the third scenario.

Kiev’s intention to implement exactly the third scenario became very much evident during Vladimir Zelensky’s press conference, which he convened to clarify his position regarding the signing of the “Steinmeier formula.” Following are the main points of Zelensky’s address:

The “Steinmeier formula” is agreed upon, but not signed.

“Red lines” regarding Donbass Ukraine will not be crossed.

The Ukrainian Armed Forces will not surrender.

Nobody can influence the president’s decisions.

There will be no local elections in the Donetsk and Lugansk People’s Republics in the presence of any armed forces on their territories.

Elections are possible only after the border between the Donetsk and Lugansk People’s Republics and the Russian Federation goes under Ukraine’s control.

The exact date of the meeting in the “Normandy format” will be agreed shortly.

The signing of the “Steinmeier formula” has created more questions, which could be answered during the summit of the heads of state of the “Normandy Four.”  

From our partner International Affairs

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Eastern Europe

Latvia developed new tasks for NATO soldiers

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Member of the Latvian Saemas’ national association “Everything for Latvia!” and Freedom”/LNNK Jānis Dombrava stated the need to attract NATO troops to resolve the migration crisis. This is reported by la.lv.  In his opinion, illegal migration from the Middle East to Europe may acquire the feature of an invasion. He believes that under the guise of refugees, foreign military and intelligence officers can enter the country. To his mind, in this case, the involvement of the alliance forces is more reasonable and effective than the actions of the European border agencies. Dombrava also noted that in the face of an increase in the flow of refugees, the government may even neglect the observance of human rights.

The Canadian-led battlegroup in Latvia at Camp Ādaži consists of approximately 1512 soldiers, as well as military equipment, including tanks and armoured fighting vehicles.

Though the main task of the battlegroup in Latvia is country’s defence in case of military aggression, Latvian officials unilaterally invented new tasks for NATO soldiers So, it is absolutely clear, that Latvian politicians are ready to allow NATO troops to resolve any problem even without legal basis. Such deification and complete trust could lead to the full substitution of NATO’s real tasks in Latvia.

It should be noted that NATO troops are very far from being ideal soldiers. Their inappropriate behaviour is very often in a centre of scandals. The recent incidents prove the existing problems within NATO contingents in the Baltic States.

They are not always ready to fulfill their tasks during military exercises and training. And in this situation Latvian politicians call to use them as border guards! It is nonsense! It seems as if it is time to narrow their tasks rather than to widen them. They are just guests for some time in the territory of the Baltic States. It could happen that they would decide who will enter Latvia and who will be forbidden to cross the border!

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Changes are Possible: Which Reforms does Ukraine Need Now?

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Photo: Robert Anasch/Unsplash

The past 16 months have tested our resilience to sudden, unexpected, and prolonged shocks. As for an individual, resilience for a country or economy is reflected in how well it has prepared for an uncertain future.

A look around the globe reveals how resilient countries have been to the COVID-19 pandemic. Some have done well, others less so. The costs of having done less well are almost always borne by the poor. It is for this reason the World Bank and the international community more broadly urge—and provide support to—countries to undertake economic and structural reforms, not just for today’s challenges but tomorrow’s.

One country where the dialogue on reform has been longstanding and intense is Ukraine. This is particularly true since the economic crisis of 2014-2015 in the wake of the Maidan Revolution, when the economy collapsed, and poverty skyrocketed. Many feared the COVID pandemic would have similar effects on the country.

The good news is that thanks to a sustained, even if often difficult, movement on reforms, Ukraine is better positioned to emerge from the pandemic than many expected. Our initial projection in the World Bank, for example, was that the economy would contract by nearly 8 percent in 2020; the actual decline was half that. Gross international reserves at end-2020 were US$10 billion higher than projected. Most important, there are far fewer poor than anticipated.

Let’s consider three reform areas which have contributed to these outcomes.

First, no area of the economy contributed more to the economic crisis of 2014-2015 than the banking sector. Powerful interests captured the largest banks, distorted the flow of capital, and strangled economic activity. Fortunately, Ukraine developed a framework to resolve and recapitalize banks and strengthen supervision. Privatbank was nationalized and is now earning profits. It is now being prepared for privatization.

Second, COVID halted and threatened to reverse a five-year trend in poverty reduction. Thanks to reforms of the social safety net, Ukraine is avoiding this reversal. A few years back, the government was spending some 4.7 percent of GDP on social programs with limited poverty impact. Nearly half these resources went to an energy subsidy that expanded to cover one-in-two of the country’s households.

Since 2018, the Government has been restructuring the system by reducing broad subsidies and targeting resources to the poor. This is working. Transfers going to the poorest one-fifth of the population are rising significantly—from just 37 percent in 2019 to 50 percent this year and are projected to reach 55 percent in 2023.

Third, the health system itself. Ukrainians live a decade less than their EU neighbors. Basic epidemiological vulnerabilities are exacerbated by a health delivery system centered around outdated hospitals and an excessive reliance on out-of-pocket spending. In 2017, Ukraine passed a landmark health financing law defining a package of primary care for all Ukrainians, free-of-charge. The law is transforming Ukraine’s constitutional commitment to free health care from an aspiration into specific critical services that are actually being delivered.

The performance of these sectors, which were on the “front line” during COVID, demonstrate the payoff of reforms. The job now is to tackle the outstanding challenges.

The first is to reduce the reach of the public sector in the economy. Ukraine has some 3,500 companies owned by the state—most of them loss-making—in sectors from machine building to hotels. Ukraine needs far fewer SOEs. Those that remain must be better managed.

Ukraine has demonstrated that progress can be made in this area. The first round of corporate governance reforms has been successfully implemented at state-owned banks. Naftogaz was unbundled in 2020. The electricity sector too is being gradually liberalized. Tariffs have increased and reforms are expected to support investment in aging electricity-producing and transmitting infrastructure. Investments in renewable energy are also surging.

But there are developments of concern, including a recent removal of the CEO of an SOE which raised concerns among Ukraine’s friends eager to see management independence of these enterprises. Management functions of SOE supervisory boards and their members need to remain free of interference.

The second challenge is to strengthen the rule of law. Over recent years, the country has established—and has committed to protect—new institutions to combat corruption. These need to be allowed to function professionally and independently. And they need to be supported by a judicial system defined by integrity and transparency. The move to re-establish an independent High Qualification Council is a welcome step in this direction.

Finally, we know change is possible because after nearly twenty years, Ukraine on July first opened its agricultural land market. Farmers are now free to sell their land which will help unleash the country’s greatest potential source of economic growth and employment.

Ukraine has demonstrated its ability to undertake tough reforms and, thanks to the COVID-19 pandemic, has seen the real-life benefits of these reforms. The World Bank looks forward to providing continued assistance as the country takes on new challenges on the way to closer European integration.

This article was first published in European Pravda via World Bank

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Liberal Development at Stake as LGBT+ Flags Burn in Georgia

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Photo: Protesters hold a banner depicting U.S. Ambassador to Georgia Kelly Degnan during a rally against Pride Week in Tbilisi, Georgia July 1, 2021. Credit: REUTERS/Irakli Gedenidze

Protests against Georgia’s LGBT+ Pride parade turned ugly in Tbilisi on July 5 when members of the community were hunted down and attacked, around 50 journalists beaten up and the offices of various organizations vandalized. Tensions continued the following day, despite a heavy police presence.

On the face of it, the Georgian state condemned the violence. President Salome Zourabichvili was among the first with a clear statement supporting freedom of expression, members of parliament did likewise and the Ministry of Internal Affairs condemned any form of violence.

But behind the scenes, another less tolerant message had been spread before the attacks. Anxiety about this year’s events had been rising as a result of statements by the government and clergy. Prime Minister Irakli Garibashvili suggested the march “poses a threat of civil strife.” The Georgian Orthodox Church meanwhile condemned the event, saying it, “contains signs of provocation, conflicts with socially recognized moral norms and aims to legalize grave sin.”

For many, these statements signified tacit approval for the abuse of peaceful demonstrators. Meanwhile, the near-complete absence of security at the outset of the five-day event was all too obvious in Tbilisi’s streets and caused a public outcry. Many alleged the government was less focused on public safety than on upcoming elections where will need support from socially conservative voters and the powerful clergy, in a country where more than 80% of the population is tied to the Georgian Orthodox Church.

The violence brought a joint statement of condemnation from Western embassies. “Violence is simply unacceptable and cannot be excused,” it said. The Pride event was not the first and had previously been used by anti-gay groups. Violence was widespread in 2013 — and the reality of attacks against sexual minorities in Georgia remains ever-present.

In a socially conservative country such as Georgia, antagonism to all things liberal can run deep. Resistance to non-traditional sexual and religious mores divides society. This in turn causes political tension and polarization and can drown out discussion of other problems the country is marred in. It very obviously damages the country’s reputation abroad, where the treatment of minorities is considered a key marker of democratic progress and readiness for further involvement in European institutions.

That is why this violence should also be seen from a broader perspective. It is a challenge to liberal ideas and ultimately to the liberal world order.

A country can be democratic, have a multiplicity of parties, active election campaigns, and other features characteristic of rule by popular consent. But democracies can also be ruled by illiberal methods, used for the preservation of political power, the denigration of opposing political forces, and most of all the use of religious and nationalist sentiments to raise or lower tensions.

It happens across Eurasia, and Georgia is no exception. These are hybrid democracies with nominally democratic rule. Armenia, Georgia, Kyrgyzstan, and others have increasingly more in common, despite geographic distance and cultural differences.

Hungary too has been treading this path. Its recent law banning the supposed propagation of LGBT+ materials in schools must be repealed, European Commission President Ursula von der Leyen said on July 7. “This legislation uses the protection of children . . . to discriminate against people because of their sexual orientation . . . It is a disgrace,” she said.

One of the defining features of illiberalism is agility in appropriating ideas on state governance and molding them to the illiberal agenda.

It is true that a mere 30 years since the collapse of the Soviet Union is not enough to have built a truly liberal democratic state. Generations born and raised in the Soviet period or in the troubled 1990s still dominate the political landscape. This means that a different worldview still prevails. It favors democratic development but is also violently nationalistic in opposing liberal state-building.

Georgia’s growing illiberalism has to be understood in the context of the Russian gravitational pull. Blaming all the internal problems of Russia’s neighbors has become mainstream thinking among opposition politicians, NGOs, and sometimes even government figures. Exaggeration is commonplace, but when looking at the illiberal challenge from a long-term perspective, it becomes clear where Russia has succeeded in its illiberal goals. It is determined to stop Georgia from joining NATO and the EU. Partly as a result, the process drags on and this causes friction across society. Belief in the ultimate success of the liberal agenda is meanwhile undermined and alternatives are sought. Hybrid illiberal governments are the most plausible development. The next stage could well be a total abandonment of Euro-Atlantic aspirations.

Indeed what seemed irrevocable now seems probable, if not real. Pushback against Georgia’s Euro-Atlantic choice is growing stronger. Protesters in front of the parliament in central Tbilisi violently brought tore the EU flag. Twice.

The message of anti-liberal groups has also been evolving. There has been significant growth in their messaging. The anti-pride sentiment is evolving into a wider resistance to the Western way of life and Georgia’s Western foreign policy path, perhaps because it is easily attacked and misrepresented.

To deal with this, Western support is important, but much depends on Georgian governments and the population at large. A pushback against radicalism and anti-liberalism should come in the guise of time and resources for the development of stronger and currently faltering institutions. Urgency in addressing these problems has never been higher — internal and foreign challenges converge and present a fundamental challenge to what Georgia has been pursuing since the days of Eduard Shevardnadze – the Western path to development.

Author’s note: first published at cepa

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