Ukraine is eager to cut deals with China as it confronts the West’s moves to allay Russian concerns. Whether Kyiv’s moves are a sign of a larger foreign policy adjustment or just a bluff aimed to mitigate faltering ties with the EU and the US, they could beget big consequences.
On June 30, Ukraine touted an agreement with China, which proposes revamping the country’s decrepit infrastructure. The decision comes following a US-German resolution to finish the Nord Stream 2 pipeline, despite longstanding concerns of Kyiv and other CEE nations. Yet, perhaps the biggest motivation was the growing unwillingness in the West to advance Ukraine’s NATO/EU aspirations.
The current state of affairs pushes Ukraine to find alternatives in foreign policy. China, with plenty of cash and political clout, comes as an obvious choice resulting in the signing of the bilateral agreement in June. The document outlines China’s willingness to invest in railways, airports, and ports, as well as telecommunications infrastructure across Ukraine. But otherwise, the agreement details few specifics.
The available details from the deal fit comfortably into the pattern China has been following across Eurasia. For example, China signed similar deals with Iran, Egypt and Saudi Arabia among others, demonstrating its willingness to penetrate those states’ vital infrastructure. Still, the documents can be also characterized as an umbrella agreement that serves as a roadmap rather than an accord listing concrete details and commitments.
The China-Ukraine agreement is all the more surprising as Kyiv rebuffed earlier this year a Chinese proposal to buy a Ukrainian aerospace company, Motor Sich.
Nevertheless, there are several reasons behind the rapprochement. First and foremost, it is about Ukraine adjusting its foreign policy stance to the state of economic relations. China is now Ukraine’s biggest single-country trade partner outstripping Russia and having a 14.4 percent share of the country’s imports and 15.3 percent of its exports. Perhaps fearful of possible Chinese countermeasures over the Motor Sich decision, Kyiv has been open to mending ties with Beijing with the June agreement.
Secondly, it paves the way for a more active role in China’s near-trillion-dollar Belt and Road Initiative (BRI), which aims at connecting China with the European market across the heart of Eurasia. Ukraine was among the first to endorse the initiative but has avoided signing memorandums on cooperation similar to what China has done with many others.
More immediately, the tilt toward China follows Kyiv’s decision to remove its name from an international statement about human rights abuses in China’s Xinjiang. While Ukraine initially joined the initiative, together with 40 other states, Kyiv abruptly changed its mind on June 24. It has been confirmed that the withdrawal followed Chinese threats to limit trade and deny access to COVID-19 vaccines for which Ukraine had already paid.
Some larger geopolitical dynamics are also at play, such as Kyiv’s attempt to acclimate to the changing world order and the growing global competition between Beijing and Washington. In this environment, Ukraine might want to carve out an equidistant place between the two powers so as to avoid possible backlash from siding clearly with either of them.
As such, Ukraine appears to be embarking on a multi-vector foreign policy. It would allow Kyiv to alleviate its dependence on the West and seek lucrative economic and political ties with large Eurasian states. Put simply, relations with the West did not deliver on the expected benefits. The country was not offered NATO or EU accession, while the collective West’s consistent concessions to Russia undermine Ukraine’s interests. Ukraine has also often tended to look at China and other Eurasian powers from the ‘Western perspective’, which limited its options.
In Kyiv’s understanding, elimination of this obstructive dependence would enable it to find new partners able to bring in investments and ideally political support in multilateral organizations. China undoubtedly can be such a partner.
Kyiv’s calculations are more understandable when taken in view of its larger diplomatic readjustment in the region. For example, Ukraine recently began building closer relations with another Eurasian power in Turkey. When Ukrainian president Volodymyr Zelensky visited Istanbul in April 2021, nascent bilateral military ties were seen as a new chapter in the countries’ relations. Most indicative of this shift, a memorandum was signed on the creation of joint defense-industrial projects, which includes joint development of unmanned aerial vehicles in Ukraine.
The story of Turkey could serve as a microcosm, whereby Kyiv displayed that it is more interested in balancing the pressure from Russia and mitigating the failures in its pro-Western foreign policy course. Ukraine thus foreshadowed its increasingly multi-vector foreign policy as a solution to its geopolitical problems. In Kyiv’s understanding, rapprochement with China and Turkey could mitigate threats emanating from Russia as both Beijing and Ankara enjoy closer ties with Moscow, but nonetheless consider it a competitor.
The multi-vector foreign policy for Ukraine however does not mean abandoning its pro-Western cause. It rather involves seeing its NATO/EU aspirations as complementary with the closer economic ties with China and others. It will require an agile foreign policy and leveraging the country’s geopolitical assets.
New Type of Bilateral Relations
Ukraine’s behavior might herald the birth of what could be characterized as a Eurasian model of bilateral relations. Across the continent, the notion of traditional alliances is being gradually replaced by partnerships. Devoid of formal obligations, China, Iran, Turkey and Russia find more space for interaction and see a larger pool of opportunities across the vastness of the supercontinent. Bigger maneuverability makes their foreign policy more agile in finding a common ground for cooperation.
The Eurasian model is a byproduct of an evolving global order in which each state with geopolitical influence recalibrates its foreign ties to fit into the post-unipolar world. Russia and China officially refuse to have an alliance – indeed, they claim an alliance would undermine their purportedly benevolent intentions toward one another. More specifically, the concept relates to how China sees the future world order. It opposes alliances – the ‘relic’ from the Cold War era.
Thus, the shift in Kyiv’s foreign policy could be part of this Eurasian trend where Ukraine seeks to construct its Asia policy which would better correspond to the unfolding China-US competition, Asia’s economic rise, and most of all, the failure to become a NATO or EU member state.
However, closer ties with China and most of all the dependence on Beijing’s investments also involves risks. China’s infrastructure projects are mostly financed through loans, which poorer and weaker countries are unable to repay. Often, ownership of the sites ends up in Chinese hands.
Chinese involvement in Ukraine’s critical infrastructure could also risk giving control over strategic technologies to Beijing, which would be channeled to China and successfully used to advance Chinese interests.
For Kyiv, dependence on Beijing also involves risks because of China’s close partnership with Russia. Dangers could be manifested in a concerted pressure on Ukraine in international organizations, or even China heeding Russian fears and abandoning infrastructure projects which would harm Russian interests.
The June agreement is an umbrella deal that lays out the foundation for deeper cooperation, but in no way guarantees its fulfillment. This could mean that Ukraine only sought to restore worsening bilateral relations with China following the Motor Sich saga. Alternatively, Kyiv might merely be trying to raise stakes in its stagnated relations with the West and hold Washington to account, signaling that it can successfully navigate between geopolitical poles if need be.
Author’s note: first published at chinaobservers
Unhappy Iran Battles for Lost Influence in South Caucasus
Events that might not matter elsewhere in the world matter quite a lot in the South Caucasus. Given a recent history of conflict, with all the bad feelings that generates, plus outside powers playing geostrategic games, and its growing importance as an energy corridor between Europe and Central Asia, the region is vulnerable.
This has been worsened by the two-year-long Western absence of engagement. In 2020, Europe and the U.S. were barely involved as the second Nagorno-Karabakh war broke out between Armenia and Azerbaijan, leaving about 7,000 dead. With tensions now on the rise between Azerbaijan and Iran, Western uninterest is again evident, even though this might have wider ramifications for future re-alignment in the South Caucasus.
The drumbeat of Iranian activity against Azerbaijan has been consistent in recent months. Iran is getting increasingly edgy about Israel’s presence in the South Caucasus — hardly surprising given Israel’s painfully well-targeted assassination and computer hacking campaigns against nuclear staff and facilities — and especially its growing security and military ties with Azerbaijan, with whom Iran shares a 765km (430 mile) border. Iran has also voiced concern about the presence in the region of Turkish-backed Syrian mercenaries, who were used as Azeri assault troops last year.
Much of the anger has been played out in military exercises. The Azeri military has been busy since its victory, exercising near the strategic Lachin corridor which connects the separatist region to Armenia, and in the Caspian Sea, where it has jointly exercised with Turkish personnel. Iran, in turn, sent units to the border region this month for drills of an unstated scale.
This week, the Azeri and Iranian foreign ministers agreed to dial down the rhetoric amid much talk of mutual understanding. Whether that involved promises regarding the Israeli presence or a pledge by Iran to abandon a newly promised road to Armenia was not stated.
Iran’s behavior is a recognition of the long-term strategic changes caused by the Armenian defeat last year. Iran has been sidelined. Its diplomatic initiatives have failed, and it has been unwelcome in post-conflict discussions.
It is true that Iran was never a dominant power in the South Caucasus. Unlike Russia or Turkey, the traditional power brokers, it has not had a true ally. Iran was certainly part of the calculus for states in the region, but it was not feared, like Russia or Turkey. And yet, the South Caucasus represents an area of key influence, based on millennia of close political and cultural contacts.
Seen in this light, it is unsurprising that Iran ratcheted up tensions with Azerbaijan. Firstly, this reasserted the involvement of the Islamic Republic in the geopolitics of the South Caucasus. It was also a thinly-veiled warning to Turkey that its growing ambitions and presence in the region are seen as a threat. In Iran’s view, Turkey’s key role as an enabler of Azeri irridentism is unmistakable.
Turkish involvement has disrupted the foundations of the South Caucasian status quo established in the 1990s. To expect Turkey to become a major power there is an overstretch, but it nevertheless worries Iran. For example, the recent Caspian Sea exercises between Azerbaijan and Turkey appear to run counter to a 2018 agreement among the sea’s littoral states stipulating no external military involvement.
The Caspian Sea has always been regarded by Iranians as an exclusive zone shared first with the Russian Empire, later the Soviets, and presently the Russian Federation. Other littoral states play a minor role. This makes Turkish moves in the basin and the recent improvement of ties between Azerbaijan and Turkmenistan an unpleasant development for Iran — fewer barriers to the Trans-Caspian Pipeline threatens the Islamic Republic’s ability to block the project.
This is where Iranian views align almost squarely with the Kremlin’s. Both fear Turkish progress and new energy routes. The new Iranian leadership might now lean strongly toward Russia. With Russia’s backing, opposition to Turkey would become more serious; Iran’s foreign minister said this month that his country was seeking a “big jump” in relations with Russia.
The fact is that the region is increasingly fractured and is being pulled in different directions by the greater powers around it. This state of affairs essentially dooms the prospects of pan-regional peace and cooperation initiatives. Take the latest effort by Russia and Turkey to introduce a 3+3 platform with Armenia, Azerbaijan, and Georgia, as well as Iran. Beyond excluding the West, disagreements will eventually preclude any meaningful progress. There is no unity of purpose between the six states and there are profound disagreements.
Thus, trouble will at some point recur between Iran and Azerbaijan, and by extension Turkey. Given the current situation, and Iran’s visible discontent, it is likely it will take some kind of initiative lest it loses completely its position to Turkey and Russia.
Author’s note: first published in cepa
Right-wing extremist soldiers pose threat to Lithuania
It is no secret that Lithuania has become a victim of German army’s radicalization. Could this country count on its partners further or foreign military criminals threaten locals?
It is well known that Germany is one of the largest provider of troops in NATO. There are about 600 German troops in Lithuania, leading a Nato battlegroup. According to Lithuanian authorities, Lithuania needs their support to train national military and to protect NATO’s Central and Northern European member states on NATO’s eastern flank.
Two sides of the same coin should be mentioned when we look at foreign troops in Lithuania.
Though Russian threat fortunately remains hypothetical, foreign soldiers deployed in the country cause serious trouble. Thus, the German defence minister admitted that reported this year cases of racist and sexual abuse in a German platoon based in Lithuania was unacceptable.
Members of the platoon allegedly filmed an incident of sexual assault against another soldier and sang anti-Semitic songs. Later more allegations emerged of sexual and racial abuse in the platoon, including soldiers singing a song to mark Adolf Hitler’s birthday on 20 April this year.
It turned out that German media report that far-right abuses among the Lithuania-based troops had already surfaced last year. In one case, a soldier allegedly racially abused a non-white fellow soldier. In another case, four German soldiers smoking outside a Lithuanian barracks made animal noises when a black soldier walked past.
Lithuania’s Defence Minister Arvydas Anušauskas said later that the investigation was carried out by Germany and that Lithuania was not privy to its details. The more so, Lithuania is not privy to its details even now. “We are not being informed about the details of the investigation. […] The Lithuanian military is not involved in the investigation, nor can it be,” Anušauskas told reporters, stressing that Germany was in charge of the matter.
Ms Kramp-Karrenbauer, German defence minister, said that these misdeeds would be severely prosecuted and punished. Time has passed, and the details are not still known.
It should be said Germany has for years struggled to modernize its military as it becomes more involved in Nato operations. Nevertheless problems existed and have not been solved yet. According to the annual report on the state of the Bundeswehr made in 2020 by Hans-Peter Bartel, then armed forces commissioner for the German Bundestag, Germany’s army “has too little materiel, too few personnel and too much bureaucracy despite a big budget increase.” Mr Bartels’ report made clear that the Bundeswehr continues to be plagued by deep-seated problems. Recruitment remains a key problem. Mr Bartels said 20,000 army posts remained unfilled, and last year the number of newly recruited soldiers stood at just over 20,000, 3,000 fewer than in 2017. The other problem is radicalization of the armed forces.
Apparently, moral requirements for those wishing to serve in the German army have been reduced. Federal Volunteer Military Service Candidate must be subjected to a thorough medical examination. Desirable to play sports, have a driver’s license and be able to eliminate minor malfunctions in the motor, to speak at least one foreign language, have experience of communicating with representatives of other nationalities, be initiative and independent. After the general the interview follows the establishment of the candidate’s suitability for service in certain types of armed forces, taking into account his wishes. Further candidate passes a test on a computer. He will be asked if he wants study a foreign language and attend courses, then serve in German French, German-Dutch formations or institutions NATO.
So, any strong and healthy person could be admitted, even though he or she could adhere to far-right views or even belong to neo-Nazi groups. Such persons served in Lithuania and, probably, serve now and pose a real threat to Lithuanian military, local population. Neo-Nazism leads to cultivating racial inequalities. The main goal of the neo-Nazis is to cause disorder and chaos in the country, as well as to take over the army and security organs. Lithuanian authorities should fully realize this threat and do not turn a blind eye to the criminal behaviour of foreign military in Lithuania. There is no room to excessive loyalty in this case.
Lithuanian foreign policy: Image is everything
It seems as if Lithuanian government takes care of its image in the eyes of EU and NATO partners much more than of its population. Over the past year Lithuania managed to quarrel with such important for its economy states like China and Belarus, condemned Hungary for the ban on the distribution of images of LGBT relationships among minors, Latvia and Estonia for refusing to completely cut energy from Belarus. Judging by the actions of the authorities, Lithuania has few tools to achieve its political goals. So, it failed to find a compromise and to maintain mutually beneficial relations with economic partners and neighbours. The authorities decided to achieve the desired results by demanding from EU and NATO member states various sanctions for those countries that, in their opinion, are misbehaving.
Calling for sanctions and demonstrating its “enduring political will”, Lithuania exposed the welfare of its own population. Thus, district heating prices will surge by around 30 percent on average across Lithuania.
The more so, prices for biofuels, which make up 70 percent of heat production on average, are now about 40 higher than last year, Taparauskas, a member of the National Energy Regulatory Council (VERT) said.
“Such a huge jump in prices at such a tense time could threaten a social crisis and an even greater increase in tensions in society. We believe that the state must take responsibility for managing rising prices, especially given the situation of the most vulnerable members of society and the potential consequences for them. All the more so as companies such as Ignitis or Vilnius heating networks “has not only financial resources, but also a certain duty again,” sums up Lukas Tamulynas, the chairman of the LSDP Momentum Vilnius movement.
It should be said, that according to the Lithuanian Department of Statistics, prices for consumer goods and services have been rising for the eighth month in a row. According to the latest figures, the annual inflation rate is five percent.
Earlier it became known that in 2020 every fifth inhabitant of Lithuania was below the poverty risk line.
Pensioners are considered one of the most vulnerable groups in Lithuania. In 2019, Lithuania was included in the top five EU anti-leaders in terms of poverty risk for pensioners. The share of people over 65 at risk of poverty was 18.7 percent.
In such situation sanctions imposed on neighbouring countries which tightly connected to Lithuanian economy and directly influence the welfare of people in Lithuania are at least damaging. The more so, according Vladimir Andreichenko, the speaker of the House of Representatives of the Belarus parliament, “the unification of the economic potentials of Minsk and Moscow would be a good response to sanctions.” It turned out that Lithuania itself makes its opponents stronger. Such counter-productiveness is obvious to everyone in Lithuania except for its authorities.
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