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Diplomacy
Austrian Paliament

Speech by Foreign Minister Alexander Schallenberg at the 241st session of the National Council on Hamas' terrorist attack on Israel

by Alexander Schallenberg

Dear Madam President Ladies and gentlemen of the House, Dear visitors in the gallery! I just want to say that I am grateful. Grateful for this unanimous decision in this House. This is a really important signal that also strengthens my position. We must never forget: October 7 really was a breach of civilization. In terms of its cruelty, it was a day that actually eclipsed everything. In a region that is not short of atrocities as it is. I will never forget when I received a phone call on that Saturday with the question: Mr. Federal Minister, how good are your stomach nerves? And I said yes, they are good. And then I was sent videos and photos that I knew were authentic. These pictures will never leave me again. The last time I saw something similar was in connection with the Daesh videos. The cruelty, the bloodlust, the dehumanization. And I am therefore very grateful that we have such a clear position here in Austria. I believe that each and every one of us is called upon to take a clear stance on terrorism - no matter where, no matter how. Murder is murder! You must not put something into context, because that means relativizing it. Never in the history of mankind has a conflict come out of the blue. There is always a prehistory for everything. Also for the Russian attack on Ukraine, which we have not put into context either. And of course international humanitarian law applies. But that is precisely the difference - and several MEPs have emphasized this - that Israel is a constitutional state, a pluralistic democracy. It is struggling, it is trying to find the right path. And MP Matznetter also said that we don't want to be in the IDF's shoes. Because it's almost an inhuman task to keep a cool head in such an emotionally charged situation. Yes, they drop leaflets. Yes, they warn. They call for evacuation. They try to keep civilian casualties to a minimum. And yes, we see what we have actually always known, that Hamas deliberately uses civilian facilities such as schools, refugee camps, hospitals and others for their command centers, tunnel entrances, to hide their weapons there. In other words, as a democracy, as a constitutional state in the fight against terrorism, one hand is always tied behind its back. But that is the right thing to do, it has to be that way. You can see from Israel that they are trying. Three points now have priority: The first point is to prevent a wildfire. This is still not averted. It could end up being a three-front war. We are of course keeping a very close eye on developments in northern Israel and in southern Lebanon with Hezbollah. But, and I would like to emphasize this in particular: Austria is not blind with one eye, we see with both eyes. This applies to the West Bank. And I have to say quite frankly: I consider the settler violence that we see in the West Bank to be intolerable. It is also a lack of solidarity. We are currently dealing with a situation in which the Israeli army is stretched to the limit. And then I think it's a lack of solidarity within Israeli society if some people think they can vent their anger, their emotions and set fire to the West Bank. That could lead to a third front. We have to be very clear about this. The second point is of course - as has already been mentioned several times - the unconditional release of the hostages. I had the opportunity to meet some of the survivors of October 7 here in Vienna last week. It really got under your skin. When you meet a father who tells you that he is actually almost relieved because his child is among the dead and not among the hostages, it's hard to imagine what that must mean for these people. We have to stay on it. This is a terrorist organization, there can be no ifs and buts. There can be no negotiations. They must release the hostages unconditionally. The third point - this is also important to me: I myself was one of the first ministers to put development cooperation with Palestine on hold and ordered an evaluation. We do not want to support Hamas. At the same time, however, we do not want the civilian population to suffer. That would again be fertile ground for the next extremism. We have therefore made EUR 2 million available for humanitarian aid via the Austrian Development Agency. A further EUR 6 million for the region - for Syria, Lebanon and Jordan - which of course run the risk of being destabilized. I think it is good that the European Union has quadrupled humanitarian aid. But, and we saw the European Commission's report on development cooperation a few days ago, I believe we must not be naive. In future, we in Austria will take a very close look at which partner organizations - whether in Gaza or Israel, Mali, Burkina Faso, Mozambique - we work with. What does it say on their websites? What does the umbrella organization in which they are affiliated say? Is there racism, is there anti-Semitism? Are there lines that we cannot support because of our values? This is also a lesson for me from the horrific incident on October 7. In future, we need to take a much closer look at exactly who we are helping and how. Thank you very much!

Energy & Economics
President of Ireland Michael D. Higgins giving speech at World Food Form

Keynote address the Closing Ceremony of the World Food Forum

by Michael D. Higgins

Director-General, Your Excellencies, Distinguished Guests, Dear Friends, Young and Old, This week, as we have gathered here at the World Food Forum in the headquarters of the Food and Agriculture Organisation of the United Nations in Rome to discuss the necessary transformation of our agri-food systems, we must not only be conscious of targets missed or imperfectly achieved, but of the need for courage, and to generate new capacity to move to new models of better connection between economy, social protection, social justice and ecology. We are confronted with a climate and biodiversity emergency that cannot be handled by the tools that produced it or by the architecture of how we made decisions before. We are called upon to, once and for all, tackle with alternatives and sustained effort and innovation, the vicious circle of global poverty and inequality, global hunger, debt and climate change, our interacting crises. That is the context in which sustainable food systems must be achieved. I ask you all gathered today to respond in the most meaningful way within your capacity, within your generation, in a way that includes all generations, to the challenge set out by United Nations Secretary-General António Guterres in his recent statements: This is how the Secretary-General put it: “The Sustainable Development Goals aren’t just a list of goals. They carry the hopes, dreams, rights and expectations of people everywhere. In our world of plenty, hunger is a shocking stain on humanity and an epic human rights violation. It is an indictment of every one of us that millions of people are starving in this day and age.” It can be put right but we must change and there is work involved in upskilling in such a way that we can not only identify and critique assumptions of failing models but be able to put the alternative models in place. We have had so many broken promises. Only 15 percent of some 140 specific targets to achieve the 17 UN Sustainable Development Goals are on track to be achieved. Many targets are going in the wrong direction at the present rate, and not a single one is expected to be achieved in the next seven years. However, we have some reasons to be hopeful. When I look around this room today, I see so many engaged and committed people, including young people who have the enthusiasm, energy and creativity needed to tackle the serious structural causes of food insecurity and global hunger. But it is important to acknowledge that young people are not alone in seeking authenticity of words delivered into actions that have an ethical outcome. There are those who have spent their lives seeking a fairer world, one in which hunger would be eliminated – as it can be. We must recognise their efforts. We must work together to harness this collective energy and creativity into strong movements that will deliver, finally, a food-secure world for all. This will require, I suggest, moving to a new culture of sharing information, experiences, insights. As the cuts have taken effect, we must take the opportunity of developing a view, post-silo culture, of sharing insights, and I see FAO as uniquely positioned for this. As Glenn Denning, Peter Timmer and other food experts have stated, achieving food security is not an easy task given how food hunger is “deeply entwined with the organisation of economic activities and their regulation through public policies”, given, too, how governments and markets must work together, how the private, public and third sectors must work together. All of our efforts must have the character of inclusivity. Each of us as global citizens has a responsibility to respond. To ignore it would be a dereliction of our duty of care to our shared planet and its life-forms including our fellow humans and future generations. The Secretary-General’s pleas in relation to the consequences of climate change are given a further terrible reality in the increased and spreading threat of hunger, a food insecurity which is directly affected by the impact of climate change. For example, figures published by the Food and Agriculture Organization of the United Nations show that 26.2 percent of Africa’s population experienced severe food insecurity in 2021, with 9.8 percent of the total global population suffering from undernourishment the same year. It is time for us all, as leaders and global citizens, to take stock of how words are leading to actions, to increase the urgency of our response to what is a grave existential threat and to achieve change. It is clear, as the Secretary-General’s powerful statement shows, that we need to begin the work of reform in our international institutional architecture, such as UN reform at the highest level, including the Security Council and the Bretton Woods institutions, if we are to achieve what the Secretary-General has suggested is the challenge to “turn a year of burning heat into a year of burning ambition”. Let us commit then to sharing purposes, projects, resources, seeking a new culture for sustenance solutions. Those of us who have spent much of our lives advocating UN reform believe that its best prospects are in the growing acknowledgement of the importance of the vulnerabilities and frustrated capacity of the largest and growing populations of the world being represented, not only nominally but effectively, through a reform that includes reform of the Bretton-Woods Institutions. As Secretary-General Guterres has said on a number of occasions, it is time to reform what are 1945 institutions, including the Security Council and Bretton Woods, in order to align with the “realities of today’s world”. We have to acknowledge too that the development models of the 1950s and 1960s were part of the assumptions that brought us to the crises through which we are living. New models are needed and the good news is that a new epistemology, our way of looking at the world, of sufficiency and sustainability, is emerging. We are seeing good work already occurring. Good development scholarship is available to us. I reference, for example Pádraig Carmody’s recent book, Development Theory and Practice in a Changing World. Such work builds important bridges from the intellectual work that is so badly needed and is welcome at the centre of our discourse on all aspects of interacting crises, including global hunger, and the need to link economy, ecology and a global ethics. What we must launch now is a globalisation from below. Replacing the globalisation from above that has given us a burning planet and threatened democracy itself, with a globalisation from below of the fullest participation, we can establish and indeed extend democracy, offering accountability and transparency of our work together. Writers such as Pádraig Carmody are not alone in suggesting that achieving the Sustainable Development Goals provides the opportunity for moving past the worst contradictions of failed models and dangerous undeclared assumptions. The demise of hegemonic development theory and practice may be a result of several factors, such as the rise of ultra-nationalism around the world, the increasing importance of securitisation where the most powerful insulate their lives from the actions of the excluded, and the existential threat posed by the climate crisis. Such research adds to the growing body of development literature that argues for a pro-active, structural-focused, tailored approach to development. The Hand-in-Hand Initiative of the FAO, details of which were discussed at this week’s parallel session, is a most welcome initiative, one that aims to raise incomes, improve the nutritional status and well-being of poor and vulnerable populations, and strengthen resilience to climate change. It heralds a belated recognition too of the insufficiency of a reactive emergency response to famine and hunger crises. It suggests a move towards one that tackles the underlying structural causes of hunger. Young people will need patience and to dig sufficiently deep to achieve these necessary changes. They are right in seeking to be partners, so much more than being allowed as attendees. Hand-in-Hand recognises the importance of tailor-made interventions to food security, using the best available evidence in the form of spatial data, validated on the ground through local diagnostics and policy processes, to target the most food insecure, the most hungry, the poorest. It recognises that context-specific employment and labour market policies are part of the sustainability challenge. I believe that evidence from below is crucial to achieving globalisation from below and that it can be achieved by a reintroduction of new re-casted anthropology guided by, among others, the new African scholars now available, whose work is empirical and peer-tested, can be invaluable in giving transparency on projects and investments – a strategy for fact-gathering for empowerment of rural people so like the 1955 fact-gathering with rural people of the FAO – first published in 1955 and used by me in 1969! Young people must be about upskilling to be able to critique all of the assumptions guiding the policies on to their lives. A key objective for us now must be to strengthen institutional capacity on the ground, not only at the strategic level, but also fundamentally, so that the public, farmers, and other stakeholders’ institutions are enabled to participate in territories-based agri-food systems. Such a move is fundamental to a successful food security strategy. Our institutional architecture and the multilateral bodies within it, must be made fit for purpose if we are to tackle effectively and meaningfully our contemporary food insecurity crisis which is worsening according to the 2023 Global Report on Food Crises, with 258 million people across 58 countries suffering acute food insecurity. Perhaps most crucially, we must acknowledge, as United Nations Programmes such as the Hand-in-Hand Initiative does, the critical importance of partnership and collaboration in addressing global hunger. We must do everything we can to ensure cross-sectoral co-ordination, foster coherent development actions, under a common, shared vision. We must end all wasteful competitive silo behaviours, create a culture of openness and co-operation. The FAO is well positioned to lead on this with its new invigorated partnerships with the World Food Programme (WFP) and the International Fund for Agricultural Development (IFAD). Co-operation in the development and implementation of new models will be key to the achieving of any targets that seek to be sustainable and inclusive. For example, I suggest it will achieve best results if funders, such as the African Development Bank, are enabled and funded to work closely with research institutes, both at the national and international level, but particularly take account of field studies conducted over time at local level in the new anthropology so as to ensure that findings from the latest research feed into the design and implementation of any financial supports and investments. By providing a platform, a shared interactive transparent space for national authorities and producers, national and global businesses, multilateral development banks and donors to discuss and advance ways and means to finance the supported national food programmes, initiatives such as Hand-in-Hand are proving to be an effective flagship programme of the Food and Agriculture Organisation of the United Nations. Co-operation must work both ways. For example, the parts of the so-called ‘developed’ world suffering from problems of high levels of obesity and food wastage must learn from the deep knowledge and wisdom existing in the most populated continents, as well as the science, which points to a new ecological revolution, one in which agroecology – the bringing of ecological principles to develop new management approaches in agroecosystems – can play a fundamental role, especially for the poorest of our global citizens. We have seen the destructive impact of colonial models of agronomy promoting an over-reliance on a small number of commodity crops, herders incentivised to become less mobile and store less grain in order to maximise commodity crop production, and increasing imports in conditions of near monopoly of seeds, pesticides and fertilisers. This had the deadly effect of opening up farmers not only to the full force of extended droughts, the ravages of variable climate conditions, and a reliance on non-indigenous inputs, but also to global spaces where they have insufficient influence. We must retreat from these dysfunctional food systems model, with their related dependencies, with urgency and embrace models of sufficiency and effective local markets and see the value of making our way too that includes agro-ecological models that promote food security and development opportunities for the poorest people on our fragile planet. Adaptation and responding to the already changing climate is crucial for all of us, and especially in the most food-insecure nations. We must restore degraded ecosystems, introduce drought-resistant crops, ensure accessible digital services for smallholder farms, while creating new, sustainable green jobs for young people so that we may forge a smart, sustainable, climate-resilient development path for the continent. This week we have to acknowledge the many challenges we face including, inter alia, the energy, climate and biodiversity crises, war and conflict which exacerbate food insecurity, ensuring enabling policy environments, and reaching the long-term goal of sustainable food system transformation. Any agri-food initiative, be it for Africa, the Middle-East, Central or South America, or other food-insecure regions, must place inclusivity at its core. Specifically, more vulnerable, smallholder farmers must be targeted for inclusion as programme beneficiaries, not just large-scale, industrial level farmers and ever-expanding commercial plantations. Research has shown that irresponsible agri-business deals are sometimes falsely legitimated by the promotion of alleged achievement of Sustainable Development Goal Number 2 at any cost, without care as to consequence, ignoring the reality that smallholders need enabling policies to enhance their role in food production; that food insecurity is linked to rights, processes, and unequal access to land resources; and that dispossession disproportionately affects women farmers. On this latter issue of gender, achieving zero hunger requires gender-inclusive land and labour policies. Actions must prioritise the inclusion of women and girls who are more food insecure than men in every region of the world. Women must have a right to land recognised and enshrined. The gender gap in food security has grown exponentially in recent years, and will only deteriorate further in the absence of targeted intervention. Women are obviously the most impacted victims of the food crisis, thus they must be a part of the solution. Women produce up to 80 percent of foodstuffs. Empowering women farmers can thus serve as a transformative tool for food security. However, female farmers have, research tell us, limited access to physical inputs, such as seeds and fertiliser, to markets, to storage facilities and this must be addressed. Climate change, and our response to it, addressing global hunger and global poverty, exposing and breaking dependency is a core theme of my Presidency. It is the most pressing existential crisis that our vulnerable planet and its global citizens face. Throughout the world, young people and the youth sector have been at the vanguard of efforts to tackle climate change. Young people have demonstrated, time and again, how well-informed and acutely aware they are of the threat that climate change poses, as well as its uneven and unequal impacts. May I suggest to all of you that, as young innovators and future leaders in your respective fields, you will be at your best, achieve the greatest fulfilment for yourself and others, when you locate your contribution within a commitment to be concerned and contributing global citizens. Take time to ask how is my energy in the tasks of hand and brain being delivered and for whose benefit. May I suggest, too, that you will be remembered and appreciated all the more if you work to ensure that the results of science, technology are shared and that all human endeavours are allowed to flow across borders for the human benefit of all and with a commitment to ecological responsibility and inclusivity. Offer your efforts where they can have the best effect for all. Locate yourselves in the heart of the populated world, as Nobel Laureate William Campbell did with his research on river blindness. Changing our food systems is, however, let us not forget, an intergenerational challenge that requires an inter-generational approach. We must now empower youth to be in the driver’s seat to build a new, better, transparent model of food security in a variety of different settings. Let us endeavour, together, in our diverse world, to seek to build a co-operative, caring and non-exploitative global civilisation free from hunger, a shared planet, a global family at peace with nature and neighbours, resilient to the climate change that is already occurring, one based on foundations of respect for each nation’s own institutions, traditions, experiences and wisdoms, founded on a recognition of the transcendent solidarity that might bind us together as humans, and reveal a recognition of the responsibility we share for our vulnerable planet and the fundamental dignity of all those who dwell on it. Thank you. Beir beannacht.

Energy & Economics
Emblems of European Union and China

How might China hit back over the EU’s electric vehicle anti-subsidy investigation?

by Alicia García Herrero

China’s silence towards the European Union’s electric vehicle probe could mean that a more harmful retaliation is on its way During her State of the Union address on 13 September, European Commission President Ursula von der Leyen announced that the European Union would undertake an anti-subsidy probe against the Chinese electric vehicle (EV) sector. This signalled a major step in the EU’s shift to a more aggressive trade defence against China and raises the question of how China will react, given the importance of the Chinese market to key sectors of the European economy (including the auto and luxury sectors), and also given China’s crucial role in providing goods to the EU for the green transition? An EU-China High Economic and Trade dialogue on 25 September in Beijing, between EU Trade Commissioner Valdis Dombrovskis and his Chinese counterparts, may have given a glimpse into China’s mindset. There were fears Chinese officials would respond aggressively to von der Leyen’s announcement during Dombrovskis’s visit but this was not the case. Nevertheless, the silence may be deceptive. Three main factors should be taken into account when considering potential Chinese retaliation. Subtle but harmful retaliation First, China might file its own anti-subsidy investigation at the World Trade Organisation against key European sectors. This would not be difficult since Europe has ramped up its subsidies massively since the pandemic, and more recently has attempted to gain more ‘strategic autonomy’ in sectors including semiconductors. There is very little the EU can do about this potential retaliation, which would be costly for the sectors targeted and for the EU’s image as a free-trade and WTO champion. Second, China could try to persuade EU governments that the Commission-led investigation should be withdrawn. A similar probe happened in early 2014, when the EU launched an anti-subsidy investigation into solar panels produced in China. President Xi Jinping visited then Chancellor Angela Merkel right after the anti-subsidy investigation was announced. Subsequently, the issue was settled quickly, with the Commission withdrawing the case from the WTO. Based on this previous experience, China might prefer to take up the issue bilaterally, possibly with Germany again, rather than enter discussions with the Commission. But a major difference this time is the relative importance of the auto sector in the EU compared to solar power. The auto sector accounts for 14 million jobs in Europe and a good part of the EU’s exports. Exports of cars and components are heavily concentrated in a few EU countries, especially Germany. These exports to China have plummeted in 2023, with a close to 30% drop, and Chinese competition in third markets and even the EU market, has become much more intense. Third, also unlike the solar-panel probe, it is the Commission and not the sector being harmed that has filed the case. It will be harder for the Commission to withdraw the investigation because it would lose credibility. Merkel decided to accommodate Xi Jinping’s request in 2014 because she wanted to save the auto sector, even at the cost of hurting a smaller part of the German economy – the solar panel companies. The new investigation aims to protect the automotive sector. There could be consequences for major European auto companies producing electric vehicles in China, but jobs in Europe are now more important than the future of those companies in China. In any case, the future of European manufacturers is bleak; they seem to have already lost the EV race to their Chinese competitors. China will find it much harder to move the EU away from its decision to pursue an anti-subsidy investigation, differently to what happened in 2014. Lessons to learn There might be a lesson for Europe in what happened to Apple in China in September. Days before Apple’s launch of its new iPhone 15, Huawei launched its Mate 60 with upgraded functionalities which require high-end semiconductors. Beyond raising doubts about the effectiveness of US-led export controls on advanced semiconductors, this announcement constituted a direct challenge to Apple’s phone sales in China. Chinese officials were also prohibited from using iPhones and rumours spread in Chinese media in advance of the Apple launch about the underwhelming quality of the iPhone 15. Investors dumped Apple stock globally and the company lost about 6% of its value in a few days. China’s retaliation against the Commission’s anti-subsidy investigation might not be as direct and transparent, but it will still be harmful and might offer less room for the EU to respond. Europe’s strategic dependence on China is greater than in 2014 and this probe has the potential to cause a bigger fall-out for the EU. China has strengthened its position as a global power and uncompetitive behaviour could hit European core sectors harder because China has more power to retaliate. On the flip side, the stakes are higher for the EU given the importance of the auto sector in terms of jobs and exports. For that reason, China may not manage to deter the EU’s investigation as easily as it did in the past. But this may prompt China to threaten even larger retaliation.

Defense & Security
Prime Minister of Finland Petteri Orpo

European Union to continue to support Ukraine over the long term

by Petteri Orpo

The European Union will continue to provide strong military, financial, economic, and diplomatic support and humanitarian assistance to Ukraine. The EU leaders decided on the matter on the closing day of the European Council held in Brussels on 26–27 October. Prime Minister Petteri Orpo represented Finland at the meeting. Prime Minister Orpo highlighted the importance of the EU’s pledge to provide security commitments to Ukraine in the future. “It is important that we reach an agreement quickly on the EU’s security commitments to Ukraine. We should be ready to make political decisions on the matter at the December European Council,” Orpo said. The EU leaders had already exchanged views on Russia’s war of aggression in Ukraine in a video discussion with Ukrainian President Volodymyr Zelenskyy on the first day of the Council. The EU will speed up the delivery of military support, such as missiles, ammunition, and air defence systems, to Ukraine. “We must strengthen the EU’s defence sector and reinforce the capacity of the European defence industry as quickly as possible. A strong EU also strengthens NATO and transatlantic cooperation,” said Prime Minister Orpo. Prime Minister Orpo also called for progress on the use of frozen Russian assets to support Ukraine. The Euro Summit held in connection with the European Council focused on the overall economic and financial situation and economic policy coordination. In Prime Minister Orpo’s view, the EU must be more competitive both internally and globally given the current geopolitical situation. “A well-functioning and competitive single market, for example in the service sector, plays a key role. Fair competition is an important factor in ensuring growth capacity. We must return to the normal State aid rules as soon as possible,” said Prime Minister Orpo. In its conclusions, the European Council emphasises the need to speed up work on developing digital services, clean technology, and clean energy production, transitioning towards a more circular economy and reducing the regulatory burden. “The EU must continue to be a global leader in the energy transition and clean technology solutions. I highlighted the potential of the bioeconomy and circular economy in renewing European industry. At the same time, we must reduce the regulatory burden on businesses,” Orpo emphasised. On the last day of the meeting, the EU leaders also held a strategic discussion on migration. Prime Minister Orpo stressed that migration is a common European challenge and called for long-term solutions. “We need to build well-functioning partnerships with countries of origin and transit. We must also be able to return people who do not have a legal right to reside in the European Union,” said Prime Minister Orpo. In their discussion on other items, the EU leaders condemned the recent terrorist attacks in Belgium and France, which killed and injured Swedish and French nationals. The discussion on external relations focused on the tensions between Kosovo and Serbia and between Armenia and Azerbaijan, and on the situation in the Sahel. The European Council also received an update on the preparations for the UN Climate Change Conference (COP28) in Dubai.

Diplomacy
Vladimir Putin with President of Türkiye Recep Tayyip Erdoğan

Turkey faces competing pressures from Russia and the West to end its ‘middleman strategy’ and pick a side on the war in Ukraine

by Ozgur Ozkan

From the beginning of the war in Ukraine, Turkey has performed a delicate balancing act, portraying itself as an ally to the warring sides while reaping economic and political benefits from its relationship with both. Turkey has condemned Russia’s invasion and extended diplomatic and material assistance to Ukraine’s war efforts. At the same time, the country’s leader, Recep Tayyip Erdoğan, has pointedly opted not to join the Western-led sanctions against Russia or cut ties with Moscow. But Turkey’s neutrality in the Ukraine conflict is seemingly meeting with growing impatience in Washington and Moscow, and may be difficult to sustain amid a shifting geopolitical landscape. In September 2023, the U.S. Treasury Department imposed sanctions on Turkish companies and a businessman accused of helping Russia to circumvent U.S. sanctions. Meanwhile, Erdoğan has failed to revive a deal with Russian President Vladimir Putin that allowed the export of Ukrainian grain shipments via Turkey’s Bosphorus and Dardanelles straits and eased global food prices. The developments suggest that both Washington and Moscow are seeking to pressure Turkey into taking a decisive stand. Already there are signs of Erdoğan bending. On Oct. 25, 2023, Erdoğan signed Sweden’s NATO accession protocol and sent it to the Parliament for ratification, having earlier refused to endorse the move – much to the annoyance of Turkey’s NATO allies. The move may be interpreted as a sign that Turkey’s balancing strategy is reaching its limits. But it may also be another tactical move in Erdoğan’s geopolitical chess game, which has expanded as he seeks to position Turkey as a diplomatic force amid escalating violence in the Middle East. As an expert on Turkish politics and international affairs, I have watched as Erdoğan walks a fine line between the country’s commitments as a longtime NATO member and its reliance on Russia for trade, economic resources and energy imports. But this balancing act is becoming increasingly difficult the longer the war goes on. The middleman strategy Erdogan’s approach aligns with Turkey’s historical foreign policy trajectory. Turkey has maintained a balance between Western European powers and Russia since the latter emerged as an ambitious regional player along Turkey’s northern border in the early 18th century. The balancing act allowed the Ottoman Empire, Turkey’s predecessor, to survive the 19th century largely intact despite mounting pressures from the Russian Empire and European powers. Failure to utilize a balancing strategy in the First World War facilitated the empire’s demise. Joining forces with the losing Central Powers, Turkey had to share a catastrophic fate. In contrast, in World War II, a strategy of neutrality helped Turkey to weather the war unscathed. Against a mounting Soviet threat during the Cold War, Turkey took refuge under Western security guarantees, joining NATO in 1952. Relieved of the Soviet threat in the 1990s, Ankara sought greater foreign policy autonomy. However, it lacked the necessary economic and military resources and domestic political will to fully realize this ambition, leading to alignment with U.S. policies in the Middle East and Balkans until the early 2010s. Splintered support But U.S. support to Kurds in northern Syria, aligned to the militant separatist Kurdistan Workers’ Party, and the 2016 coup attempt against Erdoğan marked the beginning of a more confrontational relationship between Washington and Ankara. Blaming the U.S. and its Persian Gulf allies for complicity in the coup, Erdogan began to court Putin, who openly stood behind him during and after the attempted coup. Ankara’s acquisition of Russian-made S-400 surface-to-air missiles led to its removal from the U.S.‘s F-35 Joint Strike Fighter program and a set of U.S. sanctions on Turkey’s defense industry. Coupled with its repeated military interventions in Syria, Turkey’s closeness with Russia has, critics say, reduced it to a status of “unreliable partner” in the North Atlantic alliance. But it didn’t take long for Ankara’s flirtation with Moscow to reach a deadlock. The death of 34 Turkish soldiers in a Russian bombardment in northern Syria in February 2020 prompted a renewed effort to seek reconciliation with the U.S. However, the Biden administration hesitated to reset relations due to concerns over Erdoğan’s increasingly authoritarian rule. The balancing act and Ukraine War in Ukraine offered a new boost to Erdoğan’s balancing act. Turkey’s control of two major straits and established ties with Ukraine and other states along the Black Sea provided significant leverage for a multifaceted and neutral approach. Erdoğan seemingly hoped that maintaining trade relations with Russia and arms sales to Ukraine would bolster the struggling Turkish economy and rehabilitate his image in the West. But Erdoğan’s early blocking of Sweden’s and Finland’s entry into NATO stirred resentment in Washington and Brussels. As the Ukraine conflict continued and Erdoğan’s domestic popularity dipped in the lead-up to the May 2023 elections, the sustainability of Turkey’s balancing act seemed uncertain again. In need of financial and political support, Erdoğan has turned to the West and Persian Gulf countries. He approved Finland’s NATO accession and forged economic deals with West-friendly Saudi Arabia and the United Arab Emirates – Turkey’s two bitter rivals in the Middle East. In summer 2023, Erdoğan announced a new cabinet that projected a pro-Western outlook. He mended ties with Egypt, another traditional regional rival, aligning with the new balance of power that the U.S. and its regional allies were shaping in the Middle East. And then, at the July 2023 NATO summit in Vilnius, Lithuania, Erdoğan announced the withdrawal of his veto against Sweden’s accession to NATO. Erdoğan’s pro-Western moves have prompted a cautiously optimistic approach by Western leaders, using both incentives and punitive measures: extending a US$35 billion World Bank credit to aid Turkey’s economy, while penalizing Turkish entities for violating U.S. sanctions. The latter has been taken as a not-so-veiled message to Ankara to take a definitive stance in its foreign affairs. Erdoğan has received a similar message from Putin. Disappointed in part by Turkey’s reconciliation with the West, Putin chose not to renew the Ukrainian grain deal despite Erdoğan’s earlier successful brokerage. It was a considerable blow for Erdoğan, who sought to position himself as a crucial power broker in the Ukraine-Russia conflict. Although Erdoğan faces pushback from the U.S. and Russia, this does not necessarily signal the demise of his middleman strategy. Turkey’s location on the Europe-Asia boundary and historical ties to neighboring regions provide Erdoğan opportunities to sustain and even expand a strategy of neutrality among regional and global actors. Developments in the South Caucasus and the escalating conflict between Israel and Hamas in the Gaza Strip are two recent examples. They add a new layer of complexity for Erdogan’s balancing act, but also more room for him to maneuver. Turkey has been a key backer of Azerbaijan’s military offensive in Nagorno-Karabakh – something that has exposed Russia’s waning influence in the region and created a major geopolitical setback for Iran. Meanwhile, Erdoğan’s ties with both Hamas and the Israeli government provide an opportunity for him to play a mediator role there.

Defense & Security
Metallic soldier located on a map over the Nagorno Karabakh

The Next Surge of Conflict in the South Caucasus Is Still Preventable

by Pavel K. Baev

The tragic exodus of the Armenian population from the Nagorno Karabakh region has closed a chapter in the long saga of conflict between Armenia and Azerbaijan. The disappearance of this self-proclaimed republic provides the opportunity to bring these bitter hostilities to an end; it takes, nevertheless, plenty of wishful political thinking to believe that a peace treaty could be swiftly negotiated. Mutual animosity is a profound, but not necessarily insurmountable obstacle. The greater problem is that it is hard to expect from Azerbaijan, ruled by the hereditary autocratic regime of President Ilham Aliyev, a magnanimity in victory. Pushing the defeated adversary further yet and maximizing the damage is much more in the nature of this regime, rendering the prevention of a new spasm of armed conflict an urgent task for all stakeholders in peace in the South Caucasus. The fate of Nagorno Karabakh was predetermined by the outcome of the 44-day long air-land battle in autumn 2020, in which the Armenian forward defense positions were breached, leading to the capture of Shusha, a key stronghold in the rugged theater of operations, by the Azeri forces. In that triumph, Aliyev showed strategic patience and accepted the Russian offer of a ceasefire. Much in the same way he calculated the right moment for starting the offensive operation, he assumed a total victory was inevitable in a matter of a few years, lessening the need to push forward with the military conquest of the whole enclave. The timeframe for the Russian peacekeeping operation was set on five years, but Russia’s aggression against Ukraine made it possible for Azerbaijan to force the closure of the postponed final act of geopolitical drama two years beforehand. It is futile to look for a direct connection between the wars in Ukraine and in the South Caucasus, but the start of the former, with Russia’s annexation of Crimea in March 2014, altered the political context of the latter. The escalation of violent conflict between Armenia and Azerbaijan at the start of the 1990s was one of the peripheral ruptures caused by the generally peaceful breakdown of the Soviet Union, and the determination of the Armenians of Nagorno Karabakh to secede from Azerbaijan was perceived by many international observers (who at that time did not qualify as stakeholders) as a case of national self-determination. Russia, which in the early 1990s managed to negotiate and enforce ceasefires in chaotic hostilities in Moldova and Georgia, was seen as a natural external manager for this conflict, and the ceasefire was indeed agreed upon in May 1994, though no peacekeeping force was deployed. Moscow had few doubts selling arms to both parties of the smoldering conflict, but Azerbaijan was able to diversify its military modernization by importing high-tech arms systems from Turkey and Israel. Twenty years later, not only did Russia’s role become dubious due to its grab of Ukrainian lands, but also the occupation by Armenian forces of vast territory in Azerbaijan beyond Nagorno Karabakh was then perceived as crude aggression. Yerevan remained blind to these changes, and also underestimated the shift in Moscow’s attitude following the 2018 “Velvet Revolution” in Armenia. For President Vladimir Putin, who positions himself as a champion of the counter-revolution cause, every step Armenia took in upholding democratic institutions became a personal challenge warranting punishment. In Baku, on the contrary, both the changed context of the old but never solidly “frozen” conflict and Russia’s altered stance were assessed carefully, so the opportunity to deliver a decisive blow for breaking the seemingly immovable deadlock around Nagorno Karabakh was identified and exploited to the maximum. International mediators, who maintained that a military solution to this entrenched conflict was impossible, were proven wrong. Moscow was also surprised by the collapse of the habitual and exploitable structure of irreconcilable conflict, and it appears probable that Russia’s assessments of the balance of forces in the General Staff were influenced by Armenian confidence in its impregnable defensive positions. What the Russian military and policy planners had underestimated most of all, prior to the surprise Azerbaijani offensive (that they are still having trouble digesting), was the strength of the security cooperation between Azerbaijan and Turkey, as well as the readiness of the Turkish leadership for proactive engagement with the South Caucasus. The Kremlin presumed that its initiative in terminating the active phase of hostilities in November 2020 and the deployment of the Russian peacekeeping force would restore its dominant role in the region, only to be proven wrong once again. The failure of Russian peacekeepers to deliver humanitarian aid to Nagorno Karabakh during the nine month-long blockade since the start of 2023 proved the irrelevance of this operation, and Baku is now in a perfect position to prompt its discontinuation. Turkey’s role in the South Caucasus has gained new prominence since the start of the war in Ukraine, as Moscow is compelled to go to great lengths in order to uphold its strategic partnership with Ankara. Turkey has played the balancing act very skillfully, and President Recep Tayyip Erdoğan assumed that his key role in negotiating the “grain deal” in July 2022 would lead to his ascension to the role of mediator. Putin’s decision to cancel that deal in July 2023 was seen in Ankara as a bargaining tool, and it was only at the meeting in Sochi on September 4th that Erdogan discovered that the agreement was beyond rescue. Two weeks later, Azerbaijan delivered the final blow to the rump Nagorno Karabakh, and while Aliyev made his own calculations in terms of timing, conspiracy is typically the prevalent pattern of thinking in the Kremlin, thus making a retribution by Erdoğan likely for Putin’s uncompromising stance. The forceful elimination of the Nagorno Karabakh autonomy by Azerbaijan was definitely a setback for Russia, but one proposition Moscow is certain about is that the conflict in the South Caucasus is far from over. Many international stakeholders tend to assume that the removal of the long-festering core of the conflict opens opportunities for a peace process, but the Russian leadership believes that its ability to keep Armenia anchored to its security structures, ensured by the continuation of Russia’s military presence on its territory, depends on the unfolding of a new phase of the old conflict. The focal point has shifted to the Zangezur region, where Armenia borders Iran. The geopolitical issue with this region is that it separates the main territory of Azerbaijan from the Nakhichevan enclave, which has a small (just 17 kilometers long) but crucially important border with Turkey. Baku has long cherished the vision of a transport corridor to this province and managed to insert a point on its implementation into the ceasefire agreement of November 2020. Yerevan had to accept this proposal, hoping that it would ensure survival of the curtailed autonomy for Nagorno Karabakh (which no longer exists), but never agreed on the condition of “extraterritoriality”, which implies ceding control over this as of now hypothetic transport route. Azerbaijan and Turkey could now join efforts to pressure Armenia in the hopes of maximizing gains from its military defeat and political isolation. A large-scale military offensive by Azerbaijan might seem too ambitious, not least because it would constitute – unlike the establishment of full control over Nagorno Karabakh – an act of aggression and a violation of Armenia’s territorial integrity. Azerbaijan, nevertheless, is not only advancing a discourse on its “historic rights” to Zangezur and the “voluntarist character” of old Soviet borders. It has also executed several incursions into Armenian territory in the course of hostilities, while Armenia has been very cautious not to put any pressure on Nakhichevan, which is a “home ground” for the Aliyev political clan. Preventing this transformation of conflict from an externally supported secession to an inter-state war over territory is a difficult and urgent task, and Yerevan cannot count on support from Moscow in working on it. Russia will be interested primarily in ensuring its control over the as of now hypothetic “extraterritorial corridor” across the Zangezur region by deploying a grouping of military and border guard forces. In case of a large-scale offensive by Azerbaijan, the Russian 102nd military base in Gyimri would probably remain “neutral”, so that in the post-conflict phase, it would be conveniently positioned to provide “peacekeepers”. Rushing forward with the new military operation may seem out of Aliyev’s character, as he had carefully prepared every previous strike and waited patiently for the right moment. The stalemate in the trenches of Russo-Ukrainian war does not quite fit into the risk-opportunity calculations, but a possible Ukrainian breakthrough toward Tokmak, for instance, may be recognized as a useful opening. Erdoğan is also attentively monitoring the flow of combat operations, particularly on the maritime Black Sea theater, and will evaluate the response in Moscow to the international conference on promoting peace plans for Ukraine, scheduled to take place in Istanbul in late October 2023. A new impact that may resonate in the South Caucasus is the war in the Gaza Strip caused by the massive attack by the Hamas terrorists on Israel. This escalation focuses international attention to such extraordinary degree, that Baku may assume its invasion to be barely noticed. Such calculations may be underpinned by the fact that the exodus of Armenians from Nagorno Karabakh has not produced a lasting impression on Western policymaking nor on public opinion. Dissuasion – if applied convincingly and consistently by a broad coalition of external actors (including even Iran) – can work for deterring this escalation. Conflict prevention is a political endeavor that the European Union is supposed to be good at, and its closer engagement with the fledgling democracy in Armenia combined with its cultivation of energy ties with Azerbaijan might make a difference in keeping the geopolitical rivalries in check.

Diplomacy
Donald Tusk, PM of Poland

In a high-stakes election, Poland returns to the European mainstream

by Shairee Malhotra

The Polish elections are a harbinger of hope that populism and illiberalism, however entrenched, are reversible. Amidst a week of global headlines captured by terror attacks and hospital bombings, it was easy to miss a general election that took place on October 15 in Central and Eastern Europe. Yet the Polish elections, with their ramifications beyond Poland’s borders, were a crucial event for Europe and the future of democracy worldwide. An existential election The election yielded a loss for the Eurosceptic right-wing Law and Justice (PiS) party—a party that has ruled Poland for eight years since 2015 and was responsible for much democratic backsliding, leading Poland down the rabbit hole of illiberalism and authoritarianism. The Opposition, led by Donald Tusk’s (former Polish Prime Minister and President of the European Council) liberal Civic Platform, won 30.7 percent of the total vote and 157 seats in the Parliament and is likely to form a coalition government with the centre-right Third Way. Third Way has 14.4 percent of the vote and 65 seats, and the New Left has 8.6 percent of the vote and 26 seats. Together, the three parties won 248 out of the 460 seats in the Parliament. Even though the ruling PiS at 34 percent won the most votes and 194 seats in the Parliament in this tight election, its alliance with the far-right Confederation that won 7.2 percent of the vote and 18 seats was insufficient to form a majority. This is despite a heavily polarised and inflammatory campaign, where the odds were in the ruling party’s favour, given its capture of state media, institutions, and resources. The statement from the Organisation for Security and Cooperation in Europe’s Election Observation Mission in Poland deemed the election as taking place on “an uneven playing field”. Besides the elections, the ruling party also held a referendum with questions involving immigration that would cast a negative light on the European Union (EU), and by extension the pro-EU Opposition, and which rewarded localities with the highest voter turnouts, particularly small towns in rural areas that are supportive of PiS. PiS’s socially conservative agenda and dramatic takeover of Poland’s democratic institutions including the judiciary led to bitter rule of law disputes, with the European Commission withholding €36 billion of pandemic recovery funds until this backsliding was reversed. Under PiS rule, Poland saw poverty and unemployment decline and the economy grow by over 50 percent. Yet the repercussions from the pandemic and the Ukraine war amounted to Poland suffering amongst the highest inflation rates, at over 18 percent in parts of 2022, in Europe. Scandals such as PiS officials allegedly selling visas for bribes also contributed to dwindling support amongst voters. Thus, in a record voter turnout of 74.4 percent—greater than the turnout of 63 percent recorded in the historic 1989 Polish election when voters rejected communism—the 2023 polls were existential in nature, marking a moment of truth for the overall direction and future of Poland as a liberal European democracy. This close win by progressive pro-European forces marks an opportunity for the EU’s fifth-largest country with a GDP of US$ 700 billion to return to the European mainstream. A string of reversals Amongst a new Tusk-led government’s top aims will be the unblocking of EU funds, a reversal of illiberal reforms including the reinstating of judicial and media independence, and restoration of abortion and LGBTQ+ rights. Yet unwinding a lot of what PiS put in place will not be an easy task, starting with the transition of power, which will likely be complicated by Poland’s PiS-aligned President Andrzej Duda, who will remain in power until 2025 and will initially give PiS, the party with the largest votes, the chance to form a government. Besides, ideological differences within Tusk’s coalition could also complicate decision-making. Crucially, Poland is a front-line state in the Western coalition against Russia and amongst the staunchest supporters of Kyiv, both in terms of political support and military supplies. The country is hosting over a million Ukrainian refugees and has become a critical Western transit hub for arms and aid. However, relations between Warsaw and Kyiv came under strain with the Polish embargo on Ukrainian grain imports in a bid to appeal to Polish farmers for votes, with even talks of halting military aid and cutting back support for Ukrainian refugees. A new government in Warsaw is likely to iron out these tensions and continue supporting Kyiv, which is good news for an increasingly fragile Western alliance. Brussels’ delight Despite looming political uncertainties, the results will reset Poland’s relations with the EU and restore Polish credibility. This presents opportunities for Warsaw to reposition itself from ‘pariah’ to power centre in the EU and NATO, particularly as Europe’s centre of gravity shifts from West to East. A progressive government in Poland will also break with the anti-EU Budapest-Warsaw alliance—an alliance that was tearing apart at the foundations of the EU itself, given that the EU is a rule of law construct—and render it incapable of playing spoiler at the EU level in tackling issues such as migration. Ultimately, the Polish elections are a harbinger of hope that populism and illiberalism, however entrenched, are reversible. And a reminder that every vote counts. The folks in Brussels are right to rejoice.

Diplomacy
Giorgia Meloni, Prime Minister of Italy

President Meloni’s address at the Cairo Summit for Peace

by Giorgia Meloni

President Al-Sisi, thank you for the speed and determination with which you have organised this conference. I consider this to be a very important conference following the terrible attack by Hamas on 7 October which, we must remember, was carried out against unarmed civilians with unprecedented, appalling brutality, and which, from our point of view, it is right to unambiguously condemn. It was only right for Italy to participate in this conference, given its historical role as a bridge for dialogue between Europe, the Mediterranean and the Middle East, and also considering the opportunities presented by this summit, despite the fact that starting positions may seem somewhat distant at times because, even if our starting viewpoints may not perfectly overlap, what does perfectly overlap is our interest – the interest of all leaders sitting around this table, and that interest is to ensure what is happening in Gaza does not become a much wider conflict, that it does not turn into a religious war, a clash of civilisations, as that would mean the efforts courageously made over the last years to the contrary, to normalise relations, would have been in vain. The impression I get – and I am saying this with my usual frankness – is that, considering the way Hamas carried out its attack, its real objective was not to defend the right of the Palestinian people, but rather to force a response against Gaza that would fundamentally undermine any attempts at dialogue and create an unbridgeable gap between Arab countries, Israel, the West, thereby definitively compromising peace and well-being for all citizens involved, including those it says it wants to defend and represent. This means that we are all the target, and I do not think we can fall into this trap: that would be very stupid indeed. This is why I believe it is important to be here, why I believe it is very important to continue dialogue and discussions. I believe there are a number of key points to be reiterated. Firstly, terrorism has hit the Muslim world more than it has the West. In fact, terrorist acts over time have weakened peoples’ legitimate demands, especially in the Muslim world. Within this dynamic, there is the choice of Hamas to use terrorism to prevent any kind of dialogue and any prospect of arriving at a concrete solution, also for the Palestinian people. However, no cause justifies terrorism. No cause justifies actions that are knowingly designed to target unarmed civilians. No cause justifies women being massacred and newborns being decapitated, deliberately filmed on camera. No cause. When faced with such actions, a State is fully entitled to claim its right to exist, defend itself and ensure the security of its citizens and borders. However, and this brings me to the second point, a State’s reaction cannot and must not ever be driven by feelings of revenge. This is why States are what they are; they are our point of reference. A State bases its reactions on precise security reasons, ensuring proportionate use of force and protecting the civilian population. These are the boundaries within which a State’s reaction to terrorism must remain, and I am confident that this is also the will of the State of Israel. Thirdly, our immediate priority remains humanitarian access, which is essential to prevent further suffering among the civilian population as well as mass exoduses that would contribute to destabilising this region. This is something we do not need. I consider the mediation work that has been carried out in this regard by several players attending this conference to be very important. I consider the European Commission’s decision to triple its humanitarian aid for Gaza, taking the total to over EUR 75 million, to also be very important. Italy is also working to increase bilateral aid, but an increase in resources must clearly be accompanied by very strict control over who uses those resources. Encouraging developments are coming from this morning. President Al-Sisi, I thank you for this too. We are very concerned about the fate of the hostages in the hands of Hamas, and, as you know, there are also Italians among them. We ask for the immediate release of all hostages, clearly starting with women, children and the elderly. It is important to keep working together to get vulnerable people and foreign civilians out of Gaza. Above all, we must do the impossible to avoid an escalation of this crisis, to avoid losing control of what may happen, because the consequences would be unimaginable. The most serious way to achieve this goal is to resume a political initiative for a structural solution to the crisis based on the prospect of two peoples and two States. This solution must be concrete and, in my view, it must have a defined time frame. The Palestinian people must have the right to be a nation that governs itself, freely, next to a State of Israel whose right to exist and right to security must be fully recognised. In this regard, Italy is ready to do absolutely everything that is necessary. Thank you again, Mr. President.

Diplomacy
Vladimir Putin with Prime Minister of Iraq, Muhammed Shia al-Sudani

Russia-Iraq talks

by Vladimir Putin , Mohammed Chia al-Soudani

Vladimir Putin met with Prime Minister of the Republic of Iraq Muhammed Shia Al-Sudani, currently on an official visit to Russia. The beginning of Russia-Iraq talks President of Russia Vladimir Putin: Mr Prime Minister, colleagues, friends, Welcome to Russia and Moscow. Mr Prime Minister, We are delighted to see you. Relations between our countries are developing rather successfully. Next year, we will mark the 80th anniversary of diplomatic relations. In previous decades, our country accomplished very much in building relations with Iraq, and in the most diverse fields – first and foremost in the economic sphere. An intergovernmental commission is working on this today. In 2022, our trade soared by 43 percent but, unfortunately, dropped this year. We have a lot to discuss. In this sense, of course, your visit is quite timely. The energy sector is certainly the main aspect of our collaboration. Our largest companies operate rather successfully in your country. Our companies have invested a total of about $19 billion, and our collaboration, already quite effective in this area, is only going to expand. We coordinate our work within the OPEC + format, and we are doing this rather successfully in order to stabilise the situation on global markets. On the whole, we are enjoying much success, and I hope that we will continue working in this manner moving forward. We have many bilateral objectives, and we will focus our attention on all of them. Tomorrow, we will take part in a plenary meeting of the Russian Energy Week. This is a valuable and respectable international event in the field of global energy, during which specialists and experts can convene and discuss current developments, as well as shorter-term and remote prospects. Of course, your visit to Russia is taking place amid crises: the Ukrainian crisis continues, and, unfortunately, we are witnessing a sharp deterioration of the situation in the Middle East. I think that many will agree with me that this is a clear example of the United States’ failed policy in the Middle East, which tried to monopolise the settlement process, but, unfortunately, was not concerned with finding compromises acceptable to both sides, but, on the contrary, put forward its own ideas about how this should be done and put pressure on both sides, truly both: first on one, then on the other. But each time without considering the fundamental interests of the Palestinian people, bearing in mind, first of all, the need to implement the decision of the UN Security Council on the creation of an independent, sovereign Palestinian state. But in any case, no matter what happens there… I know your position, Mr Prime Minister, and our position is that harm to the civilian population should be minimised and reduced to zero, and we call on all sides of the conflict to do so. We will certainly talk about this, as well as other problems, during your visit today. After the expanded meeting, we are also planning a face-to-face conversation during a private lunch. There will be an opportunity to discuss everything in detail. Welcome again, Mr Prime Minister. Prime Minister of the Republic of Iraq Muhammed Shia Al-Sudani (retranslated): Thank you very much, Mr President. Greetings to the members of the delegations. Thank you very much for the invitation to visit Russia. Russia is a friendly country we have deep and historic ties with. I would like to once again express Iraq’s gratitude to Russia for its support in the fight against terrorism, the war against terrorism, for providing us with weapons so that we could resist armed terrorist gangs. Without a doubt, this episode in the relationship is very valuable; 2014 was of great importance for relations between our countries. With our visit, we want to strengthen interaction and develop relations that have excellent prospects in the political, security, cultural and economic spheres. We have many different opportunities before us. We have a good foundation; there are Russian companies that operate, for example, in the oil and gas sector. Our countries play an important role on the oil market, and therefore it is important for us to continue bilateral coordination and cooperation within the OPEC+ format. This coordination should be based on consideration of supply and demand mechanisms, and the interests of investors, producers and consumers. We will, of course, touch on and discuss these issues during today’s meeting. And tomorrow we will also have a good opportunity to discuss these issues, as well as energy issues, which, of course, are the focus of many, including the Iraqi government. Our visit is taking place at a time when we can see the implementation of a large development project that will ensure trade between Asia and Europe and contribute to the integration of transport corridors, I mean the North – South Transport Corridor first of all. This will support all countries in the region and the entire world and have a positive effect on them. Now, developments in Palestine have taken a complicated and dangerous turn. This is the natural result of the fact that Israel has continued to violate the rights of Palestinians, while the international community has remained silent and failed to live up to its obligations under internationally recognised resolutions. We are now witnessing another Intifada: an uprising of Palestinians demanding to put an end to such violations of their rights. An obvious escalation, and a very dangerous one, with civilians killed as a result and spontaneous bombings carried out, including against civilian targets: all this may result in the destruction of the Gaza Strip. Now we all, as Arab and Islamic countries, and also together with Russia, a permanent member of the [UN] Security Council, a great power, have a responsibility here. This is a moral responsibility, including on major powers, to stop these violations of the rights of Palestinians and to end the blockade of the Gaza Strip. Of course, today Iraq is trying to maintain stability in all regions through its policies, including with regard to the Ukrainian crisis. We have suffered greatly from blockades and war; of course, that is why our position is firm: we support the search for peaceful solutions through dialogue to end conflicts that have very negative consequences at the humanitarian level and at the economic level. Obviously, the purpose of this visit is discussing these issues and our common positions as well as strengthening our bilateral relations. We also want to contribute to relieving the suffering in the region and ensuring stability in the Middle East and the entire world. Thank you. Vladimir Putin: Thank you. <…>

Diplomacy
Secretary General of the Council of Europe Marija Pejcinovic Buric with President of Moldova Maia Sandu

The New Geopolitical Landscape in The EU’s Eastern Neighbourhood: Fragmentation of Economic Ties Post-February 2022

by Arthur Leveque

Introduction The EU’s Eastern neighbourhood is now more fragmented than ever when it comes to the countries’ relations with Moscow. The Russian full-scale and genocidal invasion of Ukraine brought about a change in the EU’s relations with Ukraine and Moldova which received the candidate status. Their membership talks with the EU are expected to start soon, pulling both countries further away from Russia. Georgia, however, remains for now at the door due to democratic backsliding, although the majority of its population supports accession to the EU. Tbilisi’s relations with Kyiv have turned increasingly sour due to its more than-ambivalent reaction to the full-scale invasion. Armenia’s relations with Russia have become more ambiguous. Albeit having lost confidence in Moscow as its main security provider, it helps Russia to evade the Western sanctions. Azerbaijan, in the meantime, has gained from the EU’s re-orientation of energy imports and acted as an independent player, wishing to maximise its benefits yet not being able to present a viable alternative to Russia gas for the European markets. Belarus’ relations with Russia appear more straightforward – i.e., collaboration in the invasion of Ukraine and Minsk’s growing dependence on Moscow. At first glance, one can see that the geopolitical landscape is being reshaped. In the following, this analysis takes a closer look at what those countries’ foreign trade with Russia can tell about this evolution and the Russian leverage in the region. 1. Ukraine & Moldova: Divorcing for Good? The share that Russia used to claim in Ukraine’s foreign trade shrank radically, falling to 1.1% for exports and 2.8% for imports against 5% and 8.4% in 2021, respectively. One-fifth of those imports are linked to the energy sector and, most likely, to gas transit as Ukraine reached self-sufficiency in the winter of last year, owing to the decrease in gas consumption. At the same time, according to the SecDev Group, 12.4 trillion USD worth of Ukraine’s energy deposits, metals, and minerals have fallen under Russian control due to the occupation of the Ukrainian territory.  With the Russian blockade, Ukraine’s foreign trade has collapsed, while exports to overseas partners like China or India have shrunk.8 Ukraine has, therefore, had no choice but to turn to the European Union and find new markets to ensure its survival. Ironically for Russia, the EU member states (Poland and Romania in particular) have become by far Ukraine’s biggest trading partners. Exports to the EU reached 28 billion USD in 2022 (26.8 billion in 2021), which represented 63.1% of total exports (up from 39.4% in 2021). Imports from the EU accounted for 26.9 billion USD in 2022 (28.9 billion USD in 2021), which equalled 48.9% of the total volume (up from 39.8% in 2021). Having lost all forms of political capital and economic influence in Ukraine, Russia can only resort to the destruction and looting of its national resources. Moldova’s import indicators have remained relatively stable since 2014. What stands out from the data, however, is that the share of exports to Russia shrank from 8.8% in 2021 to 4.4% in 2022. This is partly explainable by the Kremlin’s fruit embargo on Chisinau, which used to be Moldova’s most important export to Russia. In contrast, the share of Moldova’s exports to Ukraine has risen dramatically: from 3% in 2021 to 16.6% in 2022. Its exported value to Ukraine grew from 92 million USD to 720 million USD, whereas the total value of Moldova’s exports increased by around 1.2 billion USD. Hence, Ukraine accounts for around 60% of the increased value, making it the second-largest foreign trading partner behind Romania/EU. Moldova’s main exporting sector to Ukraine is mineral fuels, oils, and distillation products (81.25% or 587 million USD out of the total of 720 million USD), which has to do with the fact that natural gas is being backhauled from the EU to Ukraine via Moldova. The European Union – and especially Romania – remains in the first place. In 2022, the EU’s share in Moldova’s exports and imports stood at 58.6% and 47.3%, respectively. Moscow can still turn Chisinau’s economic dependence into political leverage – to a certain extent – by fuelling the economic crisis through halting gas shipment and thus influencing the prices, which could provoke discontent in Moldova’s Autonomous Territorial Unit of Gagauzia in particular. Similarly, the Kremlin can employ its two main proxies – the Party of Socialists and the ȘOR Party – for the same purpose, with a view to the upcoming 2024 presidential and the 2025 parliamentary elections. Moldovan authorities are already preparing to mitigate the Russian energy leverage not only by buying electricity from Romania and requiring the distributors to stockpile natural gas but also by countering the Kremlin propaganda and aligning with EU media regulations. 2. Georgia & Armenia: Risky Strategic Ambiguity Tbilisi’s relations with Moscow are best described as ambivalent. After an initial downgrade in exports and imports following the Russian invasion in 2008, both have been growing for over a decade. Russia’s share in Georgia’s imports reached its maximum since 2005 in 2022: 15.4% and 17.1%, respectively. However, Russia’s share in Georgia’s exports has slightly dropped down to 14.2%. The European Union remains Georgia’s biggest trading partner, accounting for 20.1% of its exports and 24.4% of its imports. Russia’s use of dependencies to leverage foreign countries has been in the experts’ spotlight for a long time. Most recently, the Georgian office of Transparency International highlighted that the money coming to Georgia from Russia through remittances, tourism, and exports in 2022 was three times higher than in 2021 (mainly due to the soaring remittances). In 2022, it amounted to 14.6% of Georgia’s GDP, whereas this figure represented only 6.3% in 2021. Moreover, the Kremlin has gained new forms of leverage – e.g., through the acquisition of 49% of Petrocas Energy – since Irakli Garibashvili came back to power, reinforcing the trend of Russia’s growing share in Georgia’s foreign trade. Separately, Georgia has been trying to benefit from the war and thus intensifying its economic contacts with the Kremlin, thereby weakening the anti-Russia front and the sanction regime. The aforementioned facts help build the case for classifying the ruling Georgian Dream (GD) as pro-Russian. They are also being interpreted as the GD’s attempt to consolidate its power ahead of the 2024 parliamentary elections. Regardless of the academic debate about the political nature of the government’s intentions, Georgia finds itself in a complex and risky situation of strategic ambiguity as the figures suggest.  Yerevan’s relationship with Moscow has also been quite ambivalent, especially since last year. Russia was Armenia’s first trading partner, accounting for 44.6% of its exports and 30.4% of its imports in 2022. In a long-term perspective, Armenia has been increasing its dependence on Russia for nearly a decade already. Back in 2014, the EU was still Armenia’s number one trading partner with export and import shares of 29.3% and 24.2%, respectively. Nonetheless, worth noting is a (radical) change that occurred between 2021 and 2022, especially with regards to exports. The value of exports to Russia increased from 793 million USD to 2.3 billion USD. This spike was due to re-exports to Russia from Western countries in line with the Kremlin’s “parallel imports” strategy. Not only does Armenia help Russia circumvent the sanctions but also tries to benefit from the invasion by increasing its trade, as well as attracting and facilitating the re-settlement of Russian IT businesses. For years, Armenia has been trying to balance between Russia and other partners in the context of the war with Azerbaijan. Amidst the war in Ukraine, Azerbaijan’s blockade of the Lachin Corridor and the lack of Russian engagement, Armenia finds itself in a tricky position. A huge tension remains between Armenia’s willingness to diversify its foreign policy away from Russia – towards the EU among others – and its tight relationship with Moscow that still enjoys many leverages through defence, energy, and economy. Nevertheless, Yerevan’s willingness in itself indicates that Russia has been losing traction in the South Caucasian state. Furthermore, Armenia’s recent decision to send its first humanitarian aid to Ukraine raises numerous questions as some might see it as another balancing act or a new foreign policy failure for Russia.   3. Azerbaijan: Independence from but Proximity to Russia When it comes to Azerbaijan’s foreign trade with Russia, the figures have not changed dramatically. An increase in Turkey’s share in Azerbaijan’s foreign trade is perceptible, and so are the share and value of exports to the EU (58.8% or 13 billion USD in 2021 against 65.6% or 25 billion USD in 2022). The figures, however, further indicate that Baku has also diversified its import partners. For instance, China has experienced a breakthrough. Russia remains Azerbaijan’s first import market (18.8%), followed by the EU (16%), Turkey (15.8%), and China (14.3%) within the same range. Unlike other countries in the EU’s Eastern neighbourhood, Azerbaijan does not depend on Russian energy for its consumption. Furthermore, Baku benefits from the war by enjoying a huge boost in revenues, owing it to the EU’s reorientation of energy trade partners after the full-scale invasion. Azerbaijan remains a key player in the region, able to shape the rules of the geopolitical competition due to its relative independence from other countries. Overall, Russia does not enjoy an economic leverage substantial enough to allow it to influence Baku’s foreign policy course. One might prefer to read their bilateral relations through the context of the war in Nagorno-Karabakh. Some see such a “deepening” as potentially putting Armenia, the West, and Ukraine at risk. The blockade of the Lachin corridor that has isolated and trapped around 120 000 ethnic Armenians inside Nagorno-Karabagh, with dire humanitarian consequences, speaks against any rapprochement with the West, and so does Baku’s increasing military cooperation with Moscow. The fact that Azerbaijan is forced to import gas from Russia in order to meet its obligations to Europe is another worrying development, not to mention its suspected aid to Russia to avoid sanctions. One may argue that, in 2022, Azerbaijan kept a low foreign policy profile, choosing not to vote on the UNGA resolutions condemning Russian aggression. This is in line with other signs pointing to the long-term cooperation – if not friendship – between those two countries.   4. Belarus: Extreme Dependence and Collaboration Belarus is indubitably the country where Russia managed to keep strong ties and leverages. In addition to letting Russian troops be stationed on its soil, thus opening the way for the full-scale invasion, there is evidence of Lukashenka’s involvement in the forced deportation of at least 2 100 Ukrainian children to Belarus. When it comes to Belarus’ foreign trade with Russia, the ICT database will hardly be of great use, considering the lack of reporting from 2022 and the impossibility of fully grasping what was hidden under the “Area NES” category in 2021. Furthermore, one would be prudent to doubt – to a certain extent – the official government figures in light of Belarusian officials’ tendency to conceal information, as showcased by Lev Lvovskiy. Nonetheless, by looking at Belarus’s foreign trade, one can draw the conclusion that its “multi-vector” economic policy is dead. Following the violent political repressions domestically, Western sanctions, and the Russian invasion of Ukraine, Belarus has lost both the EU and Kyiv as main trading partners. Minsk has lost almost all its exports to Ukraine (5.5% of Belarus’ GDP), while trade with the EU has more than halved following Russia’s invasion – third and second places, respectively. The contraction of Belarus’ trade with the West and the closure of the Ukrainian market pushed Belarus to turn even more towards Russia and, to some extent, China. Different estimates put Russia’s share in Belarus’s foreign trade within the 60% – 70% range in 2022. In fact, this might have more to do with higher prices (due to the devaluation of the Belarusian Ruble), rather than an increasing trade volume according to the Eurasian Development Bank. Furthermore, Russia made its market available to Belarusian exports and loaned 1.7 billion USD for the import substitution programme; Belarus’ debt servicing payments have also been delayed until 2027-28. Therefore, Belarus funds the efforts to mitigate recession by increasing dependence on the Russian market. Belarus’ economic stability is “directly linked to Russia’s macroeconomic standing” according to Kamil Kłysiński from the OSW. Finding economic niches in non-Western countries and rogue states is the only way for Belarus to limit its dependence on Russia. Conclusion Russia’s full-scale invasion of Ukraine and its consequences are reshaping the geopolitical balance of the EU’s Eastern neighbourhood region. • Ukraine has no choice but to purify itself from Russian politico-economic influence and leverage and turn to the European Union in order to survive. • The picture is clear under Moldova’s current government, which is now embracing a Euro-Atlantic course and trying to wean off Russian politico-economic influence. • The Georgian government tries to benefit from the war while dangerously sliding towards pro-Russian authoritarianism and causing an increase in tensions with both Ukraine and the Euro-Atlantic community due to this position. • The Georgian government tries to benefit from the war while dangerously sliding towards pro-Russian authoritarianism and causing an increase in tensions with both Ukraine and the Euro-Atlantic community due to this position. • Azerbaijan is a player of its own kind that enjoys positive relations with the Kremlin and helps it to bypass sanctions, as its other South Caucasian neighbours do as well. • Belarus not only willingly paved the way for the Russian invasion and participated in many crimes Russia committed in Ukraine but also became even more dependent on Moscow. The fact that Russia managed to retain – or even increase – its more or less strong level of politico-economic clout in some of the countries and influence their economic choices highlights hardened lines of division in the foreign policy strategies of the six countries and increased fragmentation of EU’s Eastern neighbourhood more broadly.