In April this year, amidst rising tensions with Russia, a Ukrainian diplomat warned that Kyiv may be forced to acquire nuclear weapons to safeguard the country’s security if NATO does not accede to its membership demand. On the same lines, Ukrainian president Volodymyr Zelensky challenged his Russian counterpart President Vladimir Putin, to meet him in eastern Ukraine’s Donbass region to talk on ending ongoing conflict in the region. He further urged the west to give “clear signals” of whether they were willing to support the country in its standoff with Russia.
But why has this situation emerged? Why is NATO and west so reluctant to proceed with forming partnership with Ukraine? Is Russia aggressive towards Ukraine? And as no geopolitical conflict in today’s complex world is possible in isolation or between just two parties, who are the other actors involved in this conflict? This paper investigates these questions to analyse the case of post-soviet Ukraine and how Ukraine remains important to the geopolitical dynamics of not just the post-soviet space, but also the broader Eurasian region as well as the world.
Ukraine has been often deemed as the cornerstone of the Soviet Union. It was not only the second-most populous republic, after Russia, but was also home to much of the Soviet Union’s agricultural production, defence industries and military. However, Ukraine’s history is intertwined deeply with the birth of Russian kingdom itself, as the beginning of Ukraine was the establishment of Kievan Rus which united the Eastern Slavs and laid the foundation for Russian identity. After centuries of direct existence under Russian rule however, Ukraine post-1991, decided to embark on its separate journey, hoping to de-intertwine its fate with that of Russia’s. However, this has not become a success to the extent Ukrainian leaders might have expected. The nation’s proximity to Russia has meant that any government in Moscow will do anything in its capacity to maintain some control over Kiev’s foreign as well as defence policy, in order to keep at bay any adventurist objectives by the western bloc of EU and US. Today, Russian policy’s primary aim is to keep Ukraine out of foreign alliances and geopolitical blocs like that of EU and NATO, and for this, periodic show of strength has become an explicit policy in the last decade for Russia. Further, post the Russia-Ukraine conflict of 2014, where Russia allegedly invaded Ukraine and annexed Crimea according to Russian critics, NATO has been forced to increase its presence in the Black Sea region where Crimean Peninsula exists geographically and has stepped up maritime cooperation with Ukraine (as well as Georgia, who too have similar concerns with Russia). However, although the relations between NATO and Ukraine were updated in June 2020 and Ukraine is now one of the six countries having tag of ‘Enhanced Opportunity Partner’ and makes significant contributions to NATO operations and other alliance objectives, NATO’s scepticism and reluctance on giving full member status to Ukraine is seen in Ukrainian political circles as west’s non-serious attitude towards the nation. Similarly, while EU remains the most important trading partner for Ukraine, its path to becoming an EU member has been harder than the leaders would have imagined. In the later parts of this article, the 2013 trade war between Ukraine and Russia over the possibility of Ukraine joining EU, and the subsequent toppling of the presidential regime in Ukraine in the next few months is highlighted.
However, even though Russia, EU and NATO have been primary geopolitical actors in Ukraine, recently, new actors have joined the ongoing geopolitical conundrum. The entry of the likes of China and Turkey has not only made the situation more complex but has also raised the stakes for the primary actors. Ukraine has in recent years, encouraged the presence of Chinese businesses in its market and welcomed further expansion of bilateral trade and economic cooperation, to the extent that in 2019, China replaced Russia as Ukraine’s main bilateral partner. In case of Turkey, president Tayyip Erdogan has time and again reaffirmed its support for Ukraine’s territorial integrity as well as Ukraine’s bid to join NATO. Further, Turkey-Ukraine cooperation in the military sector has dramatically increased in the recent years, replacing the traditional Russian base. Interestingly though, Ankara has maintained and has even grown in its partnership with Moscow which somehow softens the stance towards conflict between Ukraine and Russia as gets limited to following the EU-US stance more often than not, unlike in the case of Azerbaijan-Armenia’s Nagorno-Karabakh conflict where Turkey had explicitly supported Azerbaijan when Russia has tried to balance between Armenia and Azerbaijan.
The Perennial Question: What does Russia want?
Prior to 2014 Ukraine-Russia conflict, Russia had hoped to have Ukraine into its single market project- Eurasian Economic Union (EAEU) and benefit from the enormous Ukrainian market and population which could have boosted Russian industrial base. However, post the conflict, any hopes for integrating Russia-Ukraine markets have collapsed. Whereas Russia supplied most of Ukraine’s gas until 2014, the supply stopped entirely by 2016. Today, Russia is looking to complete infrastructure projects in terms of energy commodities, which would bypass Ukraine to starve Ukraine from the billions of dollars of transit fee that Russia has paid since long to Ukraine to reach Central and Eastern European markets. Further, since 2014, EU became the main trading partner and has been in talks with Ukraine since very long for Ukraine’s accession to EU. However, Russia for long has seen EU membership as an immediately preceding step to NATO accession, and hence sees the aspect of avoiding EU membership for Ukraine as not only an element of Russian economic policy, but also that of its security policy. Further, Russia now sees EU as not just an economic bloc, but ‘a potential great-power centre in the making’, whose further expansion in post-soviet region is bound to negatively affect Russian credentials of a hegemon as well as the arbiter in the regional conflicts. Russia’s recent mobilisation of troops at the Ukrainian borders which was more of show of strength rather than a potential act of aggression, had raised concerns in the new US presidential regime. In one interview, Russian defence minister Sergei Shoigu explicitly linked Russia’s mass-mobilization drills to NATO’s ‘Defender Exercise’, which has been the biggest military exercise taken in the Black Sea region since the cold war era, saying that ‘The scale of US led military activity required response’. In a way, Ukraine has become a battleground for both Russia and US to showcase their influence and Ukrainian leadership is finding itself in a dilemma, being unsure and insecure of the extent of intentions from both the warring blocs.
The Western Dilemma: Why Ukraine still not in EU and NATO?
There have been several factors at work which has made Ukraine’s path to membership to EU and NATO difficult. Firstly, in the recent years, there has been a concern in the EU political circles that there is no political will in Ukraine to fight vested interests and go beyond the promises of showing credible commitment to genuine domestic reforms. However, on the flip side, the argument is often made that beyond financial and technical assistance that EU can provide to Ukraine and its market, Brussels does not have any new offer to motivate Kyiv in implementing reforms. Further, since the coming of new presidency in 2019 (of Zelensky), the primary focus of the government has shifted to resolving the Donbass conflict where Ukraine is struggling against separatists in Donetsk and Lugansk, who are allegedly supported by the Russian side.
Moreover, it is also an open secret that many member nations in EU itself would prefer to have a different relationship with Russia, who since 2014 has been facing several sanctions in realm of trade, be it in energy sector, consumer goods, or defence and space technology. This is clear when we take in consideration the case of Germany and how the government has for long insisted on getting the Nord Stream 2 pipeline project completed amidst mounting pressure from other members of EU and the US. The project is expected to resolve the energy demand issue for majority of German households for the near future once in function.
In Russia, EU is deemed as the ‘Trojan horse’ for NATO expansion as already mentioned before. However, for NATO, a different set of concerns exist altogether. NATO has been wary of Russia’s continued destabilization of eastern Ukraine and the continuing unrest in the Donbass region. If, however, Ukraine becomes a NATO member, any such conflict would mandate NATO to get involved in the region and aid Ukraine, which then might escalate in a bigger conflict. And this is another important reason for NATO’s restrained stance.
China- The ‘Well-settled’ player in Ukrainian Market
In recent times, China’s economic might has enabled it to leverage the benefits in a variety of ways. Not only does China influence the decisions indirectly at times, but any economy which is intertwined and dependent on Chinese economy, can today expect to feel direct effects of this economic inter-dependency when it comes to foreign policy. An increasingly observable phenomenon is that China in gaining foothold much quicker in those nations of the post-soviet space, where Russia is deemed as a hostile neighbour or state. This was visible in a 2020 public opinion survey by SOCIS which highlighted that almost 60 percent of Ukrainians see Chin as a ‘neutral’ state even if only 13 percent see China as ‘friendly’, but over 63 percent see Russia has a ‘hostile’ state, with only 5 percent deeming Russia as ‘friendly’. Today, China is complementing Ukraine for its deficits, for instance in the field of technology and defence where it is replacing Russia and competing with Turkey, and in realm of exports, China is proving to be a worthy destination for Ukraine’s agricultural products by having a large population and increasingly developed market system. This is quite clear by the statistics which show that Ukrainian exports to China surged 98% in 2020 driven by iron ore, grains, and palm oil. Ukraine’s president on his part recently praised China for respecting Ukraine’s sovereignty and territorial integrity and highlighted China’s assistance in combating COVID-19, however, it remains to be seen how these developments would be perceived by both US and Russia.
Turkey- An Emerging Vector
Turkey-Ukraine cooperation in military technology has increased dramatically post the 2014 Russia-Ukraine conflict and today, Ankara supports Kyiv’s bid for membership to NATO as well as peaceful solution to the conflict in Donbass (Donetsk and Luhansk region). Further, in April this year, the two sides pledged in a 20-point statement, ‘to coordinate steps aimed at restoring the territorial integrity of Ukraine within its internationally recognized borders, in particular the de-occupation of the Autonomous Republic of Crimea… as well as the territories of Donetsk and Luhansk regions’.
However, there is a renewed enthusiasm in the recent Ankara-Moscow dynamics, where the two have come closer since President Erdogan’s policies have become more nationalistic and non-secular in nature, driving Turkey away from the ambit of west and US, and raising concerns about the increasingly populistic approach being undertaken by Turkish government. Further, US’ plans to build new naval bases in the Black Sea region and enhancing military cooperation with Ukraine and Georgia also concerns Turkey, as it directly would result in reduced role of Turkey and a blow to Turkish president’s ambitions of renewing Turkey’s status as a regional powerhouse.
The seven-year war between Ukraine and Russia, which is still ongoing, has changed the relationship between the two countries completely and permanently. Since Ukrainian market is now open to EU and China, a competition to dominate this market is soon to become more and more visible. While Russia would want to avoid Ukraine’s EU accession till as long as possible, Moscow will go to even greater lengths to prevent Ukraine’s NATO membership. On its part, not only will NATO be wary of Russian insecurities, but it will also consider the fact that increasing tensions with Moscow might push it towards Beijing, and a possible military alliance between the two military powers might be the greatest challenge for NATO in the coming future. Since Russia has lacked the economic might post the Soviet union’s dissolution, an alliance with China might balance out almost every limitation that Russia and China have in terms of their superpower capabilities. EU on the other hand keeps a close eye on developments in Kyiv too. Although Kyiv is yet to come up with overhauling reforms which would strengthen EUs believe in Ukrainian system, EU member states themselves will need to overcome a sort of internal division, where several member states hope of having a more normal relationship with Moscow. US on its part is expected to align with Turkey and US in bringing Ukraine in close cooperation with EU and NATO and to do everything possible to detach Kyiv from a possible rapprochement with Moscow. It remains to be seen, how other post-Soviet states like Georgia, Armenia and Azerbaijan react to these developments taking place in Ukraine and assimilate this in their own discourse of balancing the west and Russia.
Latvia developed new tasks for NATO soldiers
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!
Changes are Possible: Which Reforms does Ukraine Need Now?
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
Liberal Development at Stake as LGBT+ Flags Burn in Georgia
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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