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November 30, 2011 |  12 comments |  Print | E-Mail Your Opinion  

Could a Eurasian Union be a Western Ally?

Stanislav Maselnik: Putin’s Eurasian Union is a sound initiative of regional integration and need not present competition to the EU and its allies. In contrast, it can serve EU and US interests by bringing a stabilizing force to the region and creating a strong ally to balance against the rising power of China.

Vladimir Putin's recent plan for the formation of a Eurasian Union has caused quite an uproar in the Western media about a potential 'Russian empire', while other commentators have defended the plan as a welcome balance against Western influence. But considered from a different angle, the Eurasian Union may be neither, and Putin's plans may actually present the NATO allies with a real strategic opportunity.

The critics of the Russian foreign policy generally argue that Russia under Putin and Medvedev is simply rebuilding its former empire, sometimes using its leverage in energy resources, sometimes outright military aggression as in case of Georgia. In their interpretation, such efforts must be vigorously opposed, as the result will be nothing but Russia's domination of its near abroad that will prevent countries such as Ukraine and Georgia in making a free choice to join the international community of liberal democratic states. These arguments are often joined by those in the EU who believe that the Union's foreign policy should be based on stabilizing its neighborhood through spreading of its norms, functioning as a sort of a ‘neoliberal empire'.

However, Putin's latest initiative shows that the Russian political elite clearly realizes that their country's influence on its neighborhood can be achieved only if it brings benefits to both sides and is not based on force. Far from being a Russian empire, the Customs Union, which is to be a first step towards a full Eurasian Union, was joined by Kazakhstan and Belarus of their own sovereign decision and they will retain a proportionate control over the decision-making of the whole union. Where Russia once had relied on its hard currency reserves to gain from its neighbors political concessions through cheap provision of loans and direct subsidies of fuel, the new policy aims at elevating economic prospects of the entire region with Russia serving as a natural gravity well. While Russia will over time benefit by reinforcing its status as the region's financial and business centre, the other countries of the Union will be more competitive in agriculture and heavy industry such as steelmaking, gain investments for their backward, largely Soviet-style economies, just as profit from the competitive advantage of cheaper labor force.

For the EU and US, the Russian effort to lead a regional integration brings a possibility of an alternative form of international ordering. Without making any positive or negative judgments, the present international order can be described as the global hegemony of the US with the support of its NATO allies. This hegemony has been supported by the combined economic might of the US, EU and Japan, but as the economies of indebted Western countries will be experiencing their relative decline, their military control will inevitably wane too. The obvious alternative is that this hegemony will be replaced by another in the 'Chinese century'.

As this is naturally an inconvenient outcome for the European and American interests, maximum effort should be made to seek out other options, the most significant of which is a return to the principle of balance of power remodeled for the globalized world. While in the local space-bound world of the 19th century, nation-states presupposed the relative equality of countries, sovereignty in the postmodern world becomes intangible save for the largest of polities that possess a broad control over the world's natural and economic resources. Thus, political equality in the 21st century can be achieved only on the level of 'grand spaces', by political groupings that are sufficiently large and powerful to maintain an effective control over their territory that would balance out that of other similar entities.

A Eurasian Union is a clear step into the direction of such a multipolar world. As its plans develop from the current Customs Union to a full economic union, it is based on fully voluntary grounds and bringing benefits to all its members - not just the Russian giant. In such a world, a Eurasian Union could well become a strong ally of the EU and US and help them to ensure that their relative strength will remain preserved against the rising power of China.

Stanislav Maselnik is Managing Editor of The European Strategist magazine and holds an MA in European Studies from King's College London.

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Carmine  Finelli

December 1, 2011

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Well, I don't agree with the assumption that an Eurasian Union is "a clear step into the direction of such a multipolar world". Russia's future is more dependant on Europe's one than it seems. Therefore Russia has to realize stronger ties with Europe. On the energetic side, for example, Russia exports its supplies toward Europe. So, they are interdependent not only on the energetic issue. For this reason, I believe, however Russia want to became a regional (or global?) leader , it can't move forward toward multipolarity. It needs Europe, and the Eurasian Union may have some sense to balance China creating a "Eurasiatic hinge" from Atlantic to Pacific. This path is not easy, but it is the only one for Russia to become a world power.
 
Regina  Bakhteeva

December 1, 2011

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While I do not see anything sinister in the idea of the formation of a Eurasian Union, I would be cautious as to the speculations of its becoming a Western ally. I would agree with the author that perhaps a threat of “the Chinese century” might bring the US, EU and Eurasian Union together since Russia itself seems to be wary of rising China. In this context Putin’s initiative to establish such an organization can be interpreted as an effort to counteract increasing presence of China in Central Asia. However, as the things stand now, the signs that it would lead to the alliance between the West and the Eurasian Union are not very encouraging, especially if we talk about strategic opportunities for NATO allies.

There is no reason to expect Russia’s policy as a member of the Eurasian Union to be different from Russia’s policy as a sovereign state. Medvedev’s recent announcements that Russia might withdraw from the new START treaty, deploy Iskander missiles in Kaliningrad and block NATO supply routes to Afghanistan cannot be very reassuring for NATO allies. Issuing threats might be a subtle invitation for a partnership or an alliance but it does not make things easier. Why would we expect more strategic opportunities with the Eurasian Union formation? Why could these opportunities not be found with the existing Collective Security Treaty Organization?
 
Unregistered User

December 1, 2011

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Putin's Eurasian Union was actually the idea of the President of Kazakhstan during a speech at Moscow University in 1991. It was modeled after the European Commission, as a Cabinet Government with 27 Commissioners.
Mr. Putin must have carried this idea and there is now, as a start, a Trade Union between
Belarus, Kazakhstan and Russia.
Interestingly, Russian Scientist Dimitry Orlov is already flirting with the idea to add
Finland, Czech Republic, Bulgaria and Mongolia to such a Union.

But we seem not to be able to see a Trade Union without aspects, especially when the
name Putin enters the picture, of military intentions and potential conflicts, such as The Russian Empire, The Turkish Empire, The Chinese Century etc., while we then immediately reflect on the global authority of the US and NATO.

Without accepting that any military activities must come from and relate to a sound sustainable economic base, economically and monetary, we will not realize that our Western Cultures are entering the territory of economic " quicksand".
Just as a reminder on April5, 1933,US President Franklin Delano Roosevelt, under Presidential Executive Order 6102, ordered basically the confiscation of gold in exchange for other lawful means as issued by the United States, for reasons of national emergencies in banking and for other purposes.

Just be reminded that as of now, many Western Federal Reserve Banking Institutions are
assisting each other in supplying liquidity to prevent a total currency dilemma.

Whether there is NATO, CSTO, SCO or the old Sganghai Five, The Russians know
the Expression, " mitgefangen-mitgehangen" and I don't think that is what they want to experience through our shortcomings.


HRF
Tags: | Putin/Tx |
 
Jason  Naselli

December 2, 2011

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While you've got a number of thoughts going here, I'd just like to point out that any dream of substantially expanding such a Union beyond those core satellites is quite farfetched. The EU would never allow Finland to split off into such a Union, I doubt they would want to, and assuredly the Czech Republic would rather jump off a cliff than join any Russian-led organization.
 
Stanislav  Maselnik

December 2, 2011

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Thank you everyone for your thoughtful feedback.

Carmine, your observation that "Russia's future is more dependant on Europe's one than it seems" is accurate. Although the EU as a whole imports a bulk of its fuel and energy products from Russia (44.5 % of all gas, 33 % of oil, 26 % of coal), Russian exports to the EU account for 48 % (¤96 billion in 2009) of its total export volume (imports give a similar figure of 47 % or ¤55 bilion), it accounts for 52 % of its overall trade turnover. This translates into Russian dependency on the inflows of EU money as 40 % of the Russian GDP comes the exports of raw materials to the EU alone! The main problem is that the EU does not have a truly common energy policy and thus it cannot translate this economic leverage into real political clout. If Russia had to deal with the EU as a united actor instead of concluding separate treaties with individual countries (with smaller countries of Central and Eastern Europe receiving far worse treatment than Germany, due its economic strength), the relationship between these political actors would be fully symmetrical and the EU might even have an upper hand.

I agree with you, Regina, that a Eurasian Union might not automatically become a Western ally. As Colin S. Gray argues in his numerous works, there are no really natural allies in international affairs - the most important factor is a grand strategy that actors adopts, that is, the values and foreign policy approach polities decide to pursue. But given the geographical, economic and energy factors that bind the EU and Russia together, I am quite convinced that Russia is Europe's (if not NATO's) best ally if it decides to establish itself as one of the centres of a multipolar world. The US finds itself in a somewhat different geopolitical situation, so it deserves a separate consideration. CSTO is a military alliance so it rather complements a Eurasian Union (that is so far being build as an economic project) than competes with it. This should actually make the co-operation easier, as a common ground will be found more easily in trading with a large economic block than in some shared Western-CSTO ventures. Lastly, I would not put the blame for the deterioration of the EU/US and Russian relationship entirely on Russian shoulders. For instance, Kaliningrad missiles are a to-be-expected FP response to the US plans to deploy a missile shield in Europe. A similar issue is that of the Adapted Conventional Armed Forces in Europe Treaty, which has not been ratified by Western countries despite that it had been signed by them in 1999 (pacta sunt servanda, so the linkage to the Istanbul Summit is irrelevant and can only irritate the Russians).

Hans, given that I come from the Czech Republic, I must fully agree with Jason that Mr Orlov is somewhat naive if he thinks that Czechia would join any Russian-led initiative. This is not only for historical and cultural reasons, but also because my country's interests lie inseparably in the EU. (E.g. just to give you a short example, in 2009 29 % of Czech foreign trade turnover came from Germany alone.)
Tags: | Russia | EU | Czech Republic | Eurasian Union | NATO | CSTO |
 
Regina  Bakhteeva

December 2, 2011

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Thank you, Stanislav, for your comment. I would agree with you that Russia should not be put to blame alone for the cooling off period in its relations with the US/EU. It feels humiliated when its concerns (whether real or far-fetched) are not seriously taken into account. Russia is still to overcome the syndrome of a great empire. It is not a super power any more but it desperately tries to sound like one. Therefore it hurts when some Western actors deny Russia a cooperation on an equal footing. At the same time I do not rule out that Medvedev’s belligerent statements and Putin’s idea of a Eurasian Union are meant for domestic consumption. In light of the upcoming parliamentary (4 December 2011) and presidential (March 2012) elections they might have been tempted to demonstrate to the Russian public that Russia is a strong state that has got off its knees and can actually exercise pressure on its Western partners.

What I would be interested to hear from you, Stanislav, is where you place values when it comes to making alliances. As you are probably aware, the other day Belarus sentenced two men to death which caused outrage across Europe. And it is not the only action that makes Belarus a “special case” (after all, the US has not abolished a death penalty either but at least its judicial system does not operate under the conditions of a dictatorship). Meanwhile, Russia has made nothing to punish those involved in Magnitsky case, even though the presidential human rights council concluded in its report that Magnitsky was “tortured and beaten to death”. Would you say that it is all not relevant when deciding upon an alliance between the West and a Eurasian Union? Should we just brush aside human rights-related issues for the sake of economic interests?
 
Jason  Naselli

December 2, 2011

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Thank you Stanislav for the responses. Regina makes a good point that just because the governments of this hypothetical Union might benefit, it doesn't necessary follow that it will help their people or bring about more open regimes. If anything, Russia successful establishment of a regional group that they are the head of (it won't really matter what the power balance is, they'll be portrayed as the head at home) would play into the United Russia platform of international respect and a strong Russia. Conversely, an embarrassed Putin that failed to consolidate such a union might open up the chance for change.

And while Russia may feel humiliated when its concerns are not considered seriously, it is not the job of other states to make Russia feel better. A great part of the reason Russia has lost military, regional, and economic influence is because it has allowed the government and economy to be hijacked by oligarchical interests. So if it has major problems that prevent it from acting as a great power, many are of its own making.

On a different note, I would ask you and other members, in addition to Regina's questions, what steps could be taken to ensure that economic partnerships could pave the way for meaningful political reform in some of these Eastern states? Could the EU, as a neighbour regional union, openly support such an undertaking in exchange for political openness, or would Eurasia be too much of a hegemonic threat even as a more open and liberal unit?
 
Unregistered User

December 3, 2011

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Mr. Jason, why does one get the feeling of animosity and ill will towards people from the East, when reading certain comments. There is no room for coexistence, or is there:

Just to remove the blinders for a minute, a Eurasian Union, with Kazakhstan, Belarus, Russia, Kyrgizstan, Tajikistan (and the Ukraine as an observer), is a bigger market in size. when compared to the EU. Norway and Switzerland are recognizing a potential, in addition to inquiries from as far as New Zealand.

With the SCO or the old Shanghai Five, China,Russia, Kazakhstan, Kyrgizstan,Tajikistan and Uzbekistan in the background, why does the EU need to take the economic high ground in doing business, after all there are all the natural resources for future technologies and innovation, which the EU doesn't have.

The US is already approaching the territory from the Indian Subcontinent and the East.

At least, let's start competing between trade zones on an as equal a playing field, as we can get and not trying to put a divide between Russia and China.

On another note, with Russia joining the WTO in the first quarter of 2012, the biggest profiteer from it will be Finland, in addition to Ireland.
As to our friend from Czechia, business is not a question of either/or, rather both.


HRF








Tags: | eurasia/ tx |
 
Stanislav  Maselnik

December 4, 2011

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The point that Putin and Russian administration also play with the Eurasian Union to their domestic audience is a good one and I do not but agree, especially given the timing of the official announcement. (Nevertheless, analysts have been aware of Putin-Medvedev's plans for some time – as the idea had been proliferated together with the establishment of the Customs' Union.)

I understand your argument, Jason, that the advantages that leaders of Kazakhstan or Belarus might see and gain by joining the integration project with Russia do not have to coincide with those of their peoples. But this is exactly the same in other countries, especially in the West, where the state capture by financial-oligarchical interests seems to me far more efficient than the control exerted over its society by the Russian autocracy. To the extent that the Eurasian Union is expected to bring economic prosperity to the region, it will also benefit the peoples of the member countries in a similar fashion as the EU/EEC.

Putin, Medvedev, and United Russia are absolutely legitimate political representatives of the Russian Federation with substantial public support that is perhaps waning in recent months, but still remains on 61 % at the beginning of this November in case of Putin (compared to 43 % of President Obama). Their high ratings stem especially from the perception that after the years of Yeltsin's weak and corrupt regime that played on the hand of oligarchs (Putin's and Medvedev rule is based on the autocratic 'vertical of power', compared to Yeltsin who was in the grip of people like Berezovsky or Khodorkovsky) and bowed down before Western interests, they have rebuilt Russia as a strong international actor. Under these conditions, rather than making Russia and the Eurasian region more stable, United Russia's downfall would reinforce ultranationalists who are steadily gaining greater support, the precise extent of which we will shortly learn after today's elections. Lastly, I would add that liberal democracy just as human rights are not for export; Russia and other Eurasian countries have far different historical development than Europe and the US and their political regimes reflect that fact. To be long lasting, adoption of Western political principles will have to be gradual, come out of a dialogue rather than pressure, and above all, must be assumed internally by the peoples in question.

Regina, as a proponent of forms of the 'realist' school of International Relations, I think that foreign policy should take into account, but should not be dominated by values and norms. I am alarmed by cases such as Magnitsky, but what exactly does the US and EU have the right to do, expect expressing disapproval? Surely, it is peoples of Belarus and Russia who are responsible for the functioning of their regimes and are the first that should act to change them accordingly? I see no such will for a thorough Western, liberal democratic reform in Russia or Belarus except among some minority organisations who often seem to have rather dubious Western sources of funding. Ukraine is perhaps a special case here, but the EU cannot either apply its 'conditions-based' leverage approach when dealing with Russia and Belarus, as these countries will not ever be integrated into the EU – both due to geopolitical and historical reasons. I am convinced that in international affairs, countries should be taken at their face value as in the days of 'balance of power' – with their governments being the only legitimate representatives of the countries' interests abroad. Their peoples should strive to change their governments, but if they are taken as the only legitimate constituent power, they should do so by themselves alone.
Tags: | EU | Russia | Belarus | Eurasian Union | balance of power | realism | Putin |
 
Regina  Bakhteeva

December 5, 2011

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Stanislav, if I were an ardent adherent of the realism school, I would probably agree with you on most of your points. I do think that the realpolitik theory is helpful in understanding policies of some countries and when it comes, for example, to Russia, we cannot do without it. However, I do not advocate that policies should be formulated and pursued according to this theory. Leaving aside an argument that no theory is sufficient to account for complexities of today’s world, I would challenge your stance that the EU and US have no right to do anything (except expressing disapproval) regarding issues that fall within, what the Russian authorities are always very eager to stress, Russia’s domestic jurisdiction. Since we have touched upon the Magnitsky case, I would point out such US action as putting Russian officials linked to the death of the lawyer, on a black list, thus denying them entry into the country. Given that despite the anti-Western rhetoric Russian bureaucrats send their children to study there, keep their money and assets there and go on vacations there, I would think US-like sanctions send a stronger message than just an expression of disapproval.

In my opinion the fear that the United Russia downfall will bring ultranationalists to power is groundless. The Russian authorities actually exploit this fear and use it as a justification for their manipulations in elections. As the latest data show, numerous electoral violations took place, yet even with this “artificial help” the United Russia suffered losses receiving less than 50 percent of the votes. At the same time I cannot name any party that made it to the parliament that can be classified as ultranationalist. Zhirinovskiy-led LDPR might be seen as such if judged by its slogans but all these years it has been in the parliament and has proved to be just as loyal to Putin/Medvedv as the United Russia.
 
Johannes  Steger

December 6, 2011

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Good evening,
first, the most powerful incentive to (economic) reforms will come from the Eurasian economic union itself – provided that it will be taken seriously. If we follow macroeconomic theory, we may expect trade openings to be followed by allocation effects and growth effects – if (a big if) there are in place viable economic institutions, able to handle economic shocks. Spain and Portugal enjoyed the “investment-led growth” due to EU-accession, Greece not. This, so Baldwin and Wyplosz (2009), was due to an inflexible economy, heavily controlled by the state, and poor macroeconomic management. It risked to backfire also on Italy, which after 30 years of economic myopia goes on overdue structural reforms now (on the brink of recession).
How do economic pressures relate to political reforms? Well, economic integration produces winners and losers, so the respective governments, in order to get or keep support, will have to cope with and to soften some of the adverse effects of opening up. Moreover, some of these Eastern states seem to be quite aware of there heavy reliance on raw exports (the Russian Federation, in primis), which is not sustainable on the long run. So there is a huge demand for liberal market reforms, tackling corruption, boosting competition and providing a legal framework apt to encourage foreign investments. Therefore, I would expect to see some political change from within due to the effects of economic integration.
Second, I would put more emphasis on distinguishing economic unions from military alliances. One could reasonably expect a deeper economic cooperation between the European Union and the Eurasian economic union (in becoming). However I cannot make out, how the Eurasian economic union should either affect the relationship between CSTO and NATO, or help to get Russia on the Atlantic track, overcoming geopolitical jealousies (and legitimate interests).
 
Paolo  Sorbello

January 16, 2012

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Mr Maselnik well describes the public opinion on the Eurasian Union. However, in my opinion, Russia’s objective is to build a compact regional trade partner for China. Moscow has feared that the Chinese influence over Central Asian and other post-Soviet countries could diminish her role in the region and, most of all, harm the economic leverage gained so far. Therefore, more than being a competitive pole (there’s almost no issue to compete on, regarding economics), the Eurasian Union would constitute a modern bloc that would facilitate trade in a scenario that is already militarily protected by the Shanghai Cooperation Organization, in which Russia and China participate without friction.

HRF has a good point in recalling Nazarbayev’s original idea, which proved that not all Republics were ready for the dissolution of the USSR.
Tags: | trade | USSR | SCO | Russia | China |
 

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