Archive for category Eastern partnership

EU’s neighbourhood policy after Ukraine

A decade ago the EU launched the European Neighbourhood Policy (ENP) in an attempt to surround itself with a ‘ring of friends’. As the Economist put it recently, however, it now seems surrounded by a ‘ring of fire’.

As the EU begins to reassess and adjust its policies towards its neighbours, it is necessary to examine what went wrong, and equally important to avoid false diagnoses, in particular about what sparked the conflict in Ukraine.

What the crisis was not about

It was long thought that Russia was hostile to NATO but not the EU. This has proven to be false: the current crisis in Ukraine is a result of Russian opposition to the European Union, not just the transatlantic military alliance. Moscow perceives any steps towards economic integration with the EU as a threat to its broader geopolitical goals, and is bent on proving that European integration will damage post-Soviet states, irrespective of whether they wish to join NATO or not. Moldova is a neutral state which never pursued NATO membership, yet it faced constant Russian pressure. Under President Yanukovich, Ukraine abandoned its NATO accession plans: yet it continued to be a target of Russian coercion efforts in the trade and energy spheres.

This crisis is also not about trade. The EU’s Association Agreements with Ukraine, Moldova and Georgia are compatible with the existing Commonwealth of Independent States (CIS) free trade area, which governs trade relations between Russia and other post-Soviet states. Article 18 §1 of the 2011 CIS charter explicitly states that ‘the current treaty does not preclude participating states from taking part in customs unions, free trade or cross-border trade arrangements that correspond to WTO rules’. Serbia has (and Israel will have) free trade areas with both the EU and Russia. What is legally and economically possible for Serbia is therefore also possible for Ukraine. Read the rest of this entry »

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Ukraine: four crises, one country

For most of the last two decades virtually every Ukrainian election or opinion poll has displayed two Ukraines – one Western-leaning and another looking to Moscow; one voting Timoshenko or Yushchenko and another pro Yanukovich; one against Putin and another in favour of him. Unsurprisingly, many feared that the ousting of Yanukovich, the Russian annexation of Crimea, and the infiltration of eastern Ukraine by Russian military intelligence would lead Ukraine to split in two or collapse altogether like a house of cards.

Ukraine still faces four interconnected existential crises: economic, political, territorial and diplomatic (with Russia). It is also clear that even if the country manages to overcome these challenges, it will not be left unscathed. The past three months, however, have shown that Ukraine was not a powder keg waiting to explode, despite several matches having been thrown at it.
The country’s resilience has proven stronger than many assumed (both in Russia and the rest of Europe) and while its blend of problems might be poisonous, they are not insurmountable. Petro Poroshenko’s unexpectedly smooth popular election – with support drawn evenly across Ukraine – represents a potential turning point in the spiral of overlapping crises that have characterised its recent past.

One Ukraine, not two

Both Sunday’s elections results and the localised nature of the armed insurgency in east suggest there is neither two Ukraines nor a distinct ‘southeastern’ Ukraine. Although electoral preferences in Ukraine may have differed in the past, there is overwhelming popular and elite support for maintaining Ukraine as one state in the majority of its regions. Read the rest of this entry »

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Ukraine: the view from China

With every new major international crisis – be it the Arab Spring, the 2008 Russian-Georgian war, recurrent emergencies in Africa, or the current Ukrainian-Russian tensions – it does not take long for diplomats and observers to start wondering ‘what does China think’. It is increasingly frequent during such crises for China to be put in the spotlight and expected to have a position on events and regions on which, until recently, Chinese opinions were barely worth a footnote. This is also true for the Crimean crisis. A few days into the crisis, the Russian foreign ministry announced that the Chinese and Russians shared “broadly coinciding points of view” on the situation.

Looking at China for comfort is driven by many factors. The rise of Chinese power is just one. In international public opinion China is often seen as a sort of ‘swing’ power, capable of tipping the political balance between entrenched political warriors whose preferences are already well known. On a crisis like the one in Crimea – which elicits completely different narratives from Russia, on the one hand, and the EU and US on the other – the Chinese are seen by some as a potentially less subjective or biased source of opinions. In this sense, China can offer surprises. After the 2008 Russia-Georgian war the Chinese maintained public politeness towards Russia but, in private, were clearly against the recognition of South Ossetia and Abkhazia – thereby helping Central Asian countries resist alleged Russian pressures to recognise the independence of those entities.

Hence the rush by Russia to claim Chinese support for its actions in Ukraine – as an effort to claim greater legitimacy for its military invasion of a post-Soviet state. However, the claim that China is on Russia’s side is spurious. Read the rest of this entry »

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Three scenarios for Ukraine

In two weeks Ukraine has gone through two major shocks. The Ukrainian revolution was one of the most violent transitions to date, and not just in the post-Soviet space. And the Russian military intervention in Crimea arguably constituted the biggest European security crisis since the Balkans wars of the 1990s.

The events in Ukraine will long be contested by competing narratives and propaganda both inside and outside Ukraine. What matters now is managing the political fallout from the crisis and learning the right lessons to prevent any future recurrence of similar events. A useful way to consider future policy responses is to organise them around possible scenarios. For Ukraine, there may be at least three: a return to the status quo ante, a ‘Transnistrisation’ of Crimea, and a future of more military interventions.

Status quo ante?

The status quo ante would mean the return of Crimea within the legal realm of the Ukrainian state. It would mean that local authorities in Crimea are subordinated to Kiev and that local police, border guards and tax authority operate within Ukraine’s legal framework. Such a scenario appears very unlikely now.

Once Russia moved in militarily and dismantled the normal functioning of the Ukrainian state institutions – from the army to police and border guards – there is not much that could reverse this fait accompli. If one compares the developments in Crimea with the events in Transnistria, Abkhazia and South Ossetia in the late 1980s/early 1990s, one notices that whereas it took 2-3 years for the secessionist entities to gradually and painfully secede – de facto – from Georgia and Moldova, it took 3 days for the same to happen in Crimea. The reason is that, in the early 1990s, the process was mostly bottom-up: Russia offered some support but was mostly confused and consumed by its own crisis.

In Crimea, the opposite is true. First Russia moved in troops, then local actors mobilised to dismantle the Ukrainian state institutions in the region through a swift and targeted military action that took hours, not years. Read the rest of this entry »

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EU-Russia: facing stagnation

For the best part of the last two decades, EU-Russia summits have alternated between being upbeat events where new grand integration initiatives were launched – the creation of four common spaces in 2005, the partnership for modernisation in 2010 – and rather unfriendly encounters where success was seemingly measured on how impolite the partners could be to one another.

In recent years, summits turned less mercurial and became mainly box-ticking affairs. This is arguably a sign of the emergence of a more mature relationship based on ever higher levels of interaction in the fields of energy, tourism, business, and education. But it is also a sign of mutual disenchantment and reduced expectations, to the extent that the relationship is now practically stagnating. As a result, no grand projet is likely to help re-launch the partnership. The latest such initiative – the partnership for modernisation – is now being undermined by a conservative backlash in Russian domestic politics. Despite this relative gloom, however, the relationship can still move forward and there is progress to be made on specific initiatives.

Still trading a lot – but less

Although the EU-Russia economic partnership rests on solid foundations, it has lost its momentum. The EU is Russia’s single biggest trading partner, with 41% of Russia’s total external trade (and 45% of its exports) going to the EU in 2012, far ahead of China (9.8%) and Ukraine (3.7%), in second and third place respectively. In contrast, Russia is the EU’s third biggest trading partner – after the US and China – accounting for 9.7% of the EU’s external trade. Read the rest of this entry »

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After Vilnius: tough year ahead

The run-up to the Eastern Partnership (EaP) Summit in Vilnius has been one of the most dramatic episodes in the recent diplomatic history of the EU. The events that followed have been even more extraordinary, with hundreds of thousands of Ukrainians taking to the streets in protest against the non-signature of the Association Agreement with the EU.

The three key EaP countries – Ukraine, Moldova and Georgia – are all suffering to differing degrees from a form of pre-electoral fever. The EU is faced with the challenge of how to proceed with Ukraine whilst keeping Moldova and Georgia on the EaP track.

Ukraine: choosing not to choose

The halting of the Association process just a week before the Vilnius Summit has largely been presented as something of a geopolitical catastrophe, with Ukraine choosing Russia over the EU. This is, however, not the case. In fact, Kiev chose not to choose at all between Russia and the EU and tried hard to maintain the status quo in Ukraine’s foreign and domestic policies. Yet in his bid to buy time, President Viktor Yanukovich inadvertently precipitated the biggest crisis of his presidency to date. Read the rest of this entry »

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Armenia’s choice and the Eastern Partnership

A few weeks ago, Armenia stunned EU foreign policy watchers when it gave up on its association and free trade deal with the EU just a few weeks after negotiations had been finalised. The move followed Russian demands on Armenia to join the Russia-led Customs Union, thereby preventing the state from entering into a free trade with the EU. But even if Armenia’s U-turn was the direct consequence of Russian pressure, it nevertheless touched a raw nerve in the EU. It is therefore relevant  to ask what Yerevan’s U-turn means for EU foreign policy in general, and for the Eastern Partnership (EaP) in particular.

The shape of things to come?

That a country of 3 million people and a nominal GDP of $10 billion would turn its back on the world’s biggest market (over half a billion people and a $16 trillion GDP) would have previously been virtually unthinkable. The EU, which has spent the last two decades managing a queue of almost two dozen countries vying to enter the club, is simply not used to being rejected by countries such as Armenia.

Armenia’s sudden change of direction seems to suggest that one of the most prized things the EU can offer (access to its market) can be countered by other powers – and offers. It was not Armenia’s decision per se that shook the EU foreign policy community, but a fear of the possible shape of things to come – and a feeling that a multipolar world is emerging not only at the expense of US power, but also of EU influence. Read the rest of this entry »

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A solidarity package for the eastern partners

The year ahead will be a crucial one for the success of the Eastern Partnership (EaP). While Ukraine and the EU work towards the eventual signature of an Association Agreement at the Eastern Partnership summit in Vilnius in November, Moldova and Georgia will only initial the Agreement, and are not due to sign it until autumn 2014.

Since the Deep and Comprehensive Free Trade Agreement (DCFTA) will only become a legal reality for them towards the end of 2014, between now and then they will be vulnerable to external pressures – diplomatic, commercial or energy-related – aimed at disrupting the signing of the agreement.

The recent U-turn by Armenia (which chose to join a Russia-led Customs Union rather than sign up to the DCFTA), as well as rising trade pressures on Ukraine and a new wine embargo on Moldova, probably mark just the beginning of a longer escalation of trade-related hostilities. The aim of these pressures is to either divert some of the  Eastern partners from their EU association agenda, or drastically increase the costs of  pursuing this option and weaken the political forces behind pro-EU moves. As a consequence, they will start paying the economic and geopolitical price for association with the EU well before they start reaping the benefits of it.  Read the rest of this entry »

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Keeping the Eastern Partnership on track

Sir Humphrey Appleby, the suave civil servant in the British sitcom ‘Yes Minister’ known for his wise but cynical pessimism, once remarked that diplomacy is about surviving until the next century – while politics is about surviving until Friday afternoon.

Such differences in time horizons apply also to the pace of European foreign policy when dealing with post-Soviet realities, as the EU and most of its Eastern partners enter the finishing line on Association and Deep and Comprehensive FreeTrade Area agreements. For in the case of EU-Armenia relations, things have not survived intact until Friday afternoon. After having been engaged for years in the preparation and negotiation of an Association and Free-Trade agreement with the EU, Armenia has aborted the process just before its conclusion and announced its intention to join the Russian-led Customs Union. Read the rest of this entry »

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The Russian-Ukrainian Trade Spat

In mid-August, Russia blocked virtually all imports from Ukraine. Although the cross-border flows between the two countries have since resumed following a week of heightened tension, the issue is far from over. On the contrary, the trade spat was probably just the first warning shot in what could escalate into a full blown trade war, the ultimate aim of which would be to prevent Ukraine from signing an Association Agreement with the EU at the Eastern Partnership summit in Vilnius in late November, thereby preventing further economic integration with the European Union and steering it in a Eurasian direction instead.

It is in Ukraine’s political interest to sign the Association Agreement, containing a free trade component, with the EU, while maintaining the existing free trade agreements it has with other post-soviet states, including Russia. Although a country can have multiple free trade agreements and such an arrangement would be a win-win situation for Ukraine, Russia is adopting a more zero-sum stance towards the matter. This is primarily due to the fact that, once Ukraine signs the Association Agreement with the EU, it will no longer the able to join the Russia-led Customs Union – or the proposed  Eurasian Economic Union – due to the differing standards and tariffs in place. An EU-Ukraine free trade deal will mean greater access for Ukraine to the EU market through lower customs and non-tariff barriers, higher export quotas for certain sensitive goods, and the adoption of EU standards in a wide range of domains.

Until recently, Russia was relatively at ease, feeling secure in its belief that the EU would not sign the already finalised and initialled Association Agreement with Ukraine as long as former Prime Minister Yulia Tymoshenko remained in jail, and that President Yanukovich was unlikely to release his main political rival a year and a half before the next presidential elections, due in early 2015. However, in the last few months there has been some progress made, with the European Commission putting forward a proposal for a Council decision on the signing of the Agreement, and the EU and its member states working more actively to seal the deal with Ukraine in Vilnius. Read the rest of this entry »

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