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What awaits Ukraine after US presidential elections?

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Who is the man that Kiev wants in the White House – Republican Donald Trump or Democrat Joe Biden? For a country like Ukraine, so sensitive to external influences, this is an overarching issue.

Joe Biden’s election in November would bring Ukraine into Washington’s sharper focus. However, important as this may seem to Kiev, this attention may prove excessive. During Biden’s vice presidency this attention was so intense that it bordered on personal interest, and, ultimately, even interference in Ukraine’s internal affairs.

On the outside, the love affair between Ukraine and a possible Democratic president will most likely express itself in US support for Kiev’s confrontational actions and statements. With Biden at the helm, Washington could even try to influence the Minsk process. Kiev has on many occasions declared its desire to bring Washington and London into the Minsk talks. Neither the British nor the Americans have so far responded to this call, but the US Democrats are sure to ramp up their activity on this track. One should not expect too much here though, and a mere statement by Washington that the Minsk accords need to be revised will already come as a breakthough for Kiev. As for President Trump, he just couldn’t care less about the negotiations on Donbass, which he views as having nothing to do with America’s interests.

On Biden’s watch, Washington could resume the previous format of interaction between the US State Department and Kiev and bring back the post of the State Department’s special representative in Ukraine, which until the fall of 2019 was held by Kurt Volker – a semi-official channel of interaction that formally demonstrated Ukraine’s importance to the United States. The resignation of Volker, who failed to fully implement what he had been tasked by Trump in a country he did not care much about, could lead to the elimination of the position of the State Department’s special representative for Ukraine, as an unnecessary catalyst for US-Ukrainian relations. This means that the usual diplomatic channels (embassy) between countries are quite enough, that the interests of the president can be taken care of by trusted people (Giuliani), and issues of international politics should be resolved with Putin and Europe (Merkel and Macron), which is not doing enough to uphold Ukraine’s interests. To demonstrate the importance of the Ukrainian track, however, Biden may bring back the position of the State Department’s official representative in Ukraine.

With regard to Crimea, Ukraine is already urging NATO to build up its presence in the Black Sea to counter Russia’s alleged “aggression” and its “militarization of the occupied Crimea.” Ukraine’s First Deputy Foreign Minister Emine Dzhepparova [representative of the Mejlis of the Crimean Tatar people, banned in Russia – D.B.) has called on NATO to expand its foothold in the Black Sea region.

“The security of Ukraine and NATO are inseparable, and strengthening cooperation in the Black Sea is our common priority,” Dzhepparova wrote on her Twitter account. Under Biden, the United States can intensify its efforts in this direction.

The issue of NATO’s presence in the Black Sea region is always on the agenda, regularly escalating in connection with various events – in 2014 in Crimea, the war in Syria, etc. Last autumn, the RAND Corporation think tank published a report on how best to counter Russia’s influence in the Black Sea region. Its main conclusion is that due to the West’s shortsighted policy towards the two regional powerhouses – Russia and Turkey, as well as its underestimation of the political power wielded by their leaders, who subordinate their domestic and foreign policies to their countries’ interests, and not those of the “new world order” and “democratization,” it has lost this region and something needs to be done about it.

For Biden, the need “to do something” could become a source of confrontation with Russia. Biden could be all too happy to do this “something” through NATO, seeing this as a sign of support for Ukraine and Georgia, an opportunity to rein in Turkey’s growing assertiveness and bring Bulgaria and Romania closer into the game by stoking confrontation and militarization of the region with a possible supply to them of coastal missile systems. In general, one can expect an uptick in military-political interaction in the form of active cooperation between Ukraine and NATO, as well as arms deliveries.

The arrival of a Democrat to the White House may also ratchet up the internal political struggle in Ukraine, where the nationalist opposition, conditionally led by the “friend of the Democrats,” ex-president Petro Poroshenko, may try to regain power. Poroshenko, meanwhile, is being charged with high treason, corroborated, among other things, by his recorded conversations with Biden – both politicians have cases that they would very much like to hush up. Besides, the nationalists’ activity will inevitably impact the Minsk process, and, possibly, the situation along the disengagement line in Donbass.

What can Kiev expect from President Donald Trump? Less interference in its domestic affairs – once reelected, Trump will most likely lose interest in the active search for compromising evidence on Biden, although he is unlikely to give up this matter altogether. It will all depend on further confrontation between him and his opponents. The main danger for Trump after his re-election will be not so much the Democrats as such, but the political and social processes unfolding in the country, above all the Black Lives Matter campaign. The only thing that may get Trump interested in Ukraine is his ongoing confrontation with China. The United States is enthusiastically blocking the sale of Ukraine’s Motor Sich engine building corporation to the Chinese company Beijing Skyrizon Aviation.

The Americans see the deal as a security threat, since it would provide the Chinese with new aviation technologies. As for Motor Sich, the company has been forced to make a deal with the Chinese because of the loss of the market for its products and the breakdown of supply chains with Russia after 2014.

Blocking Russian gas supplies to Ukraine and attempts to disrupt energy cooperation between Russia and Europe (Nord Stream-2 “) is another factor that Trump and Kiev look eye to eye on, even though Kiev says that the continued transit of Russian gas across its territory is a guarantee of Ukraine’s European integration. Trump’s interest in Ukraine will depend on his pragmatic view of geopolitics and economics, as well as the political threats he may see coming from Kiev.

In an hours-long interview, President Zelensky’s former chief of staff, Andriy Bohdan, thus described the system of relations existing between the United States and Ukraine: “In general, there are three tracks, three points of negotiations with the United States. The first is intelligence and security services. We are blind kittens here, really, and all our military capabilities, the capabilities of our special services are information that the international community shares with us. And besides the war, these are drugs, crimes, security. These are plans in general, analytics – we have no analytics. The second negotiating track is diplomatic service. [On this track, according to Bohdan, conversations begin and end with the fact that NABU (National Security Agency of Ukraine, headed by Artyom Sytnik) created on Washington’s orders, is an important and untouchable organization – D.B.] And our third negotiation track is financial organizations. ‘Give me the money.’”

Democrats and Republicans alike perceive Ukraine as a buffer zone between Russia and Europe, Russia and NATO. Ukraine will remain a platform for creating reasons for sanctions, justifying sanctions, an active participant in and an accomplice to sanctions processes. Obviously, the sanctions confrontation over Nord Stream-2 is just beginning, and Ukraine, as a party fearing the loss of transit, has long been calling for sanctions against this Russian-European project.

Any of the two contenders for the White House will talk about providing financial assistance to Ukraine, with Trump being more pragmatic, and Biden – more “rhetorical.” With Biden in power, the Ukrainian economy could be reduced to handouts.

The US will not go overboard with its interference in Ukraine’s internal affairs though, because this is a costly affair (Ukrainian oligarchs have enough money to conduct any political campaign of any scale. Why would Washington spend money if it can exert influence or clinch an agreement?) Lobbying the interests of private individuals or politicians that are to Washington’s liking is no problem – suffice it to recall the story of the Burisma Company that tarnished the reputation of the Biden family. Influencing the political landscape by persecuting politicians and oligarchs is also an option (recall the recent cases of tycoons like Dmytro Firtash and Ihor Kolomoyskyi).

President Zelenskiy and many other Ukrainian politicians, dependent on Washington, now face the daunting and, at the same time, important task of choosing the right course of action before the US elections. According to some Ukrainian observers, Zelensky made his choice after long hours of brainstorming with his trusted confidants. It looks like this: “No sudden movements [until November 2020 – D.B.], no progress in the investigation of the criminal case against Biden and his son Hunter, no Burisma and no Derkach tapes. We imitate a “stormy discourse” in the Minsk format, pretend to support the “Belarusian Maidan,” but we lie low and carefully compare the ratings of Trump and Biden.”

In a nutshell, Ukraine is seen by Washington as just a platform for serving America’s geopolitical interests, which is also being used for party-political and private interests. Will anything change for Ukraine depending on who wins the November 2020 US elections? My answer is no.

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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Eastern Europe

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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Eastern Europe

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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