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Series:OSW Studies

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The twilight of the oil Eldorado. How the activity of Russian oil companies on the EU market has evolved
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The twilight of the oil Eldorado. How the activity of Russian oil companies on the EU market has evolved

The twilight of the oil Eldorado. How the activity of Russian oil companies on the EU market has evolved

Author(s): Szymon Kardaś / Language(s): English

Keywords: Russian oil companies; oil market; crude oil; petroleum products; the EU market; export;Russia;

The European Union has traditionally been the most important outlet for Russian oil exports. At the same time, during the period 2011-2014 a systematic decline was observed in crude oil supplies to the EU, while at the same time the export of petroleum products increased. It is now difficult to say that Russia is following a coherent oil strategy vis-a-vis the EU. The current shape of Russian activity is more the result of the business interests of individual companies, rather than the result of activities coordinated by the state.Although in the short term (up to 2020), the negative trend in crude oil exports to the EU could be halted (as confirmed by the figures for 2015), the long-term prospects for Russia's position on the EU market are pessimistic. This is because the importance of factors unfavourable to Russia is rising, such as the decrease in consumption of oil in the EU, the increased competition among exporters to the EU market, and the deterioration of the climate of Russian/EU cooperation in the context of the anti-Russian sanctions, as well as unclear prospects for the development of the upstream sector in Russia.

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The Silk Railroad. The EU-China rail connections: background, actors, interests
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The Silk Railroad. The EU-China rail connections: background, actors, interests

The Silk Railroad. The EU-China rail connections: background, actors, interests

Author(s): Jakub Jakóbowski,Konrad Popławski,Marcin Kaczmarski / Language(s): English

Keywords: EU; China; Silk Road

The report discusses the current state and future prospects of rail connections between China and the countries of the European Union. Special emphasis is placed on the role of Central Europe. It presents the goals and the policy adopted by the Chinese side in the process of building rail connections with European countries, compares the current and the planned transport corridors, offers an analysis of the economic potential of the China-Europe rail connections. It also discusses various business models of cooperation with China in rail transport. // The report has been drawn up based on the desk research and interviews with representatives of European and Chinese companies involved in developing rail connections, as well as interviews with Chinese analysts dealing with Belt and Road issues.

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Troublesome Investment. The Belarusian Nuclear Power Plant in Astravyets

Troublesome Investment. The Belarusian Nuclear Power Plant in Astravyets

Troublesome Investment. The Belarusian Nuclear Power Plant in Astravyets

Author(s): Joanna Hyndle-Hussein,Szymon Kardaś,Kamil Kłysiński / Language(s): English

Keywords: Belarusian; Nuclear Power

When Belarus embarked on the construction of its first nuclear power plant in Astravyets in 2012, the official objective was to significantly reduce the share played by imported Russian gas in the country’s electricity production. However, the Belarusian leadership’s decision to build the plant in close co-operation with Russian partners defeated that purpose. Russia has in fact taken over full control of its implementation as it is financing the US$ 10 billion project almost entirely. Russia is the project’s contractor, is providing the technology and will also provide the nuclear fuel. The plant will thus diversify the fuel mix in electricity production, but not the source of imports. Moreover, as Poland and Lithuania have refused to buy electricity from the plant, Belarus now faces the challenge of utilising the energy surplus that will emerge.

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In search of new routes. Ukraine's foreign trade after the Revolution of Dignity

In search of new routes. Ukraine's foreign trade after the Revolution of Dignity

In search of new routes. Ukraine's foreign trade after the Revolution of Dignity

Author(s): Sławomir Matuszak / Language(s): English

Keywords: Ukraine's foreign trade

The Ukrainian-Russian war not only came as a shock to the Ukrainian political elite and public – it also turned out to be a kind of a shock therapy for the Ukrainian economy. Very serious and deep changes have taken place in Ukraine’s trade co-operation with other countries since 2014. The Kremlin’s aggressive moves caused Ukraine to lose not only a major share of its market in Russia but also in the remaining post-Soviet countries and contributed to the collapse of the sale of products of the machine industry, the only Ukrainian export with a high added value. In turn, the Deep and Comprehensive Free Trade Area (DCFTA) agreement with the EU proved to be an effective tool helping the Ukrainian economy to overcome the crisis and compensate for the consequences of the collapse of trade with post-Soviet countries. This was possible even though the expectations of representatives of the Ukrainian government that the EU market would soon compensate for the lost post-Soviet markets turned out to be unrealistic, in particular in the case of industrial production. At present, Ukraine relies on exports of raw materials and low processed products to an even higher degree than before the crisis. The only difference is that metallurgical products have been replaced as the dominant exports by products of the food and agricultural sector.

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BOSNIA's CAHOS. Causes of the political crisis in Bosnia and Herzegovina today
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BOSNIA's CAHOS. Causes of the political crisis in Bosnia and Herzegovina today

BOÂNIACKI CHAOS. Źródła kryzysu politycznego we współczesnej Bośni i Hercegowinie

Author(s): Marta Szpala,Wojciech Stanisławski / Language(s): English,Polish

Keywords: Bosnia; NATO

A new form of 'transformational crisis' has been observed in Bosnia and Herzegovina since at least 2005. Politicians representing the three major ethno-political communities (Bosnians, Croats and Serbs) have successively been raising disputes and have employed various political tools to preserve the conflicts instead of resolving them. As a result, the central state institutions and organisations have been weakened and attempts to replace them with narrower ethnic structures have been made. This is increasingly paralysing the state, thus impeding its everyday operation and preventing its structures and legislation from being modernised; had this been achieved, it would have resulted in a real acceleration of the process of Bosnia's integration with the EU and NATO. The present crisis is also an effect of the disagreement between the key international players - the European Union, the United States and Russia - over the 'plan for Bosnia' and the role and duties of the Office of the High Representative, who acts on behalf of the international community in the country.

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Review of the Economic Development in the Western Balkan States

Review of the Economic Development in the Western Balkan States

Review of the Economic Development in the Western Balkan States

Author(s): Paulina Biernacka / Language(s): English

Keywords: Economic Development; Western Balkan States

Foreword Ten years after the end of the armed conflict, the Western Balkans are still being considered as the "land of the unsuccessful policies". Enormous financial and technical assistance transferred by the International Community has not managed to meet the goals of integrating the region within itself as well as within the European markets. Explanation for this can be found in the consequences of the war and the remnants of the socialist state. The complexity of current institutional/ political arrangements combined with the limited willingness of the regional actors to introduce and implement much of the needed reforms have additionally contributed to the current state of affairs.The economy and politics in the region intertwine to an extent as probably in none of the other post-communist states. Therefore, the paper presents the recent economic performance of the Western Balkan countries in the light of their limited institutional development and lack of efficient regional cooperation. The paper discusses the importance of foreign direct investments' inflow for the economic growth of the "latecomer" states and presents major drawbacks which limit the influx of the foreign capital to the region. It presents private sector activity and regional cooperation programmes. It discusses the role of the International Community with the main focus on the activities of the European Union. The EU is examined not only as the main aid donor but more importantly as a foreign trade partner. Furthermore, it analyses the impact of the presence of the International Community and their strategies towards the region with the special attention to the EU. Finally, it presents recommendations for the improvement of the economic performance in light of the enhanced political cooperation between the EU and the region.

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The orange revolution in Ukraine. An attempt to understand the reasons

The orange revolution in Ukraine. An attempt to understand the reasons

The orange revolution in Ukraine. An attempt to understand the reasons

Author(s): Joanna Konieczna-Sałamatin / Language(s): English

Keywords: orange revolution; Ukraine

1. The Ukrainian society in the run-up to the 2004 presidential election was in a state which political science literature characterises as an almost "ideal" condition for an outbreak of social unrest. Growing expectations, both economic and political, seemed vain due to mounting impediments. The victory of Viktor Yanukovych was perceived by many opinion-makers as a nail in the coffin of such aspirations.2. In Ukraine, almost since the moment of regaining independence, the following two public order models, in which inherent are completely different system-related preferences of the citizens, have co-existed: the decentralised model of a "network" society, where dominate parallel mutual dependences between people who opt for a democratic political system; and the centralist model of social integration, where order is ensured via the vertical relation of power and submission. In the latter case, democracy seems dubious and preference is given to various kinds of systems having a strong central authority. Over the past ten years, the decentralised model has been slowly strengthening, and its influence has been expanding. It operates predominantly in the Western Ukraine and in Kyiv, yet it has won increasingly more areas also in the North and East of the country (except for Donbas). Viktor Yanukovych was in the common opinion a supporter of the centralist vision, and his victory in the election was perceived as an immediate threat to the already known and familiar rules of activity in parallel relations. Yanukovych was believed to be a player who would impose his own rules, without respecting the already existing ones.3. Foreign policy issues, a "pro-European" or "anti- European" approach of the authorities, hardly had any significance during the orange revolution. Its causes were purely internal. However, as the events developed, the stance taken by the international community became important for Ukrainians and could contribute to a significant growth of pro-European sentiments."Revolution" was the favourite word of most commentators in their descriptions of the events in late 2004, connected with the presidential election in Ukraine. Still, some of them - few as they were - protested against this term pointing out to many elements that proved evolutional rather than revolutionary nature of the changes taking place there. I suggest leaving this issue to future political scientists and historians, who will certainly answer the question whether that was a revolution and if it was not, how to name it1. This text is an attempt to reflect on what really happened in Ukraine in the last months of 2004, regardless of whether we call such events revolution, rebellion, social movement or anything else.Any mass social movements mainly draw attention of the mass media, yet soon they also become a subject of analysis for political scientists, sociologists and other specialists in social sciences, who try to answer the question if "this" could have been predicted? Post factum we usually state that there were very many signs of an approaching outbreak but nobody paid sufficient attention to such "harbingers". Even more so because social processes are almost never launched by only one factor.A well-known American political scientist James Davies (1962) noticed in the early 1960's that one of the factors provoking social movements is the discrepancy between social expectations & aspirations and the possibility to satisfy them. Davies initially formulated his theory, which has become classical today, in terms of socioeconomic expectations. Thereafter, he wrote that if such a discrepancy concerns political issues, its "explosive action" can be even stronger.Social expectations usually grow when the economic situation starts improving. Then expectations and hopes concerning both material and non-material issues grow; starting from the possibility to do business in an unrestricted way through such ideas as the freedom of speech. Expectations also grow when the society has managed to develop parallel ways of communication and gaining the awareness of its subjectivity, independently of the existing political system.

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Turkey - an energy transit corridor to the EU?

Turkey - an energy transit corridor to the EU?

Turkey - an energy transit corridor to the EU?

Author(s): Agata Loskot-Strachota / Language(s): English

Keywords: Turkey; energy; EU

1. The priority of Ankara's energy policy is to make Turkey an important transit corridor for energy resources transported to the EU. Turkey wishes to play an active role in the distribution and sale of gas and oil flowing across its territory.2. Transit and sale of energy resources, and gas in particular, are expected to provide a major source of income for Turkey and a tool by which Ankara will be able to build its position in the region and in Europe.3. Since Turkey is an EU candidate country, Brussels will probably welcome Turkey's role as a transit corridor as much as Ankara will.4. The success of Ankara's energy strategy hinges on developments in Turkey's internal energy market.5. It also depends on a number of external factors including:- Export policies and internal situation in producer countries.Most importantly, it depends on:a. Russia and its energy policy prioritiesb. Stability in the Middle East.- Policies of consumer countries, including the EU in particular.- Policies of world powers present in the region (USA).

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Neither super-rich, nor bankrupt. Gazprom’s financial condition
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Neither super-rich, nor bankrupt. Gazprom’s financial condition

Neither super-rich, nor bankrupt. Gazprom’s financial condition

Author(s): Szymon Kardaś / Language(s): English

Keywords: Gazprom; Russia; gas-company; investment programme; financial state of company; major gas supplier;

In 2018 Gazprom, Russia’s biggest state-controlled gas company, adopted the largest investment programme in its history. The year before, it had reported its highest ever revenue from the sale of gas and other goods and services. At the same time, however, in the period between 2007 and 2017, the company’s capitalisation fell to less than a sixth, and in 2017 its total debt reached a record level of US$55.2 billion. It is therefore worth taking a closer look at the financial condition of Russia’s largest gas company, which remains a major gas supplier to Europe, accounting for 34% of the EU market in 2017.

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Troublesome Investment. The Belarusian Nuclear Power Plant in Astravyets
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Troublesome Investment. The Belarusian Nuclear Power Plant in Astravyets

Troublesome Investment. The Belarusian Nuclear Power Plant in Astravyets

Author(s): Joanna Hyndle-Hussein,Szymon Kardaś,Kamil Kłysiński / Language(s): English

Keywords: Belarus; Astravyets; nuclear power plant; intergovernmental agreement; cooperation with Russia; investments; international safety standards;

Belarus’s first nuclear power plant has been under construction in the city of Astravyets for a decade now. The project was able to start when Belarus signed an intergovernmental agreement with Russia in 2012, under which the Russian side agreed to finance the project almost fully and provide the technology. The nuclear power plant in Astravyets signals the first time that ground has been broken on a nuclear power project in Europe since the 1986 Chernobyl disaster. Although the Belarusian Nuclear Power Plant (Belarusian NPP), as the project is officially called, is being built just 200 km from the Polish border, it rarely appears in Polish or European news and a wider debate about its safety is yet to take place. Lithuania is the only country where the Astravyets project has stirred major controversy. The project is not only debated there – it has become a key issue in Lithuania’s relations with its allies in the European Union and NATO. Lithuania is concerned about the plant’s location, less than 50 km from Vilnius, while Lithuanian experts believe that the project’s execution does not comply with international safety standards. As a result of the efforts made by Vilnius, the Belarusian-Russian investment has now been noticed internationally.

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THE EASTERN EXTERNAL BORDER OF THE ENLARGED EUROPEAN UNION ― OPERATION AT THE NEW EASTERN BORDER OF THE EUROPEAN UNION ― RUSSIAN-SPEAKERS IN LATVIA AND ESTONIA
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THE EASTERN EXTERNAL BORDER OF THE ENLARGED EUROPEAN UNION ― OPERATION AT THE NEW EASTERN BORDER OF THE EUROPEAN UNION ― RUSSIAN-SPEAKERS IN LATVIA AND ESTONIA

THE EASTERN EXTERNAL BORDER OF THE ENLARGED EUROPEAN UNION ― OPERATION AT THE NEW EASTERN BORDER OF THE EUROPEAN UNION ― RUSSIAN-SPEAKERS IN LATVIA AND ESTONIA

Author(s): Bartosz Cichocki,Rafał Sadowski,Joanna Hyndle,Miryna Kutysz / Language(s): English,Polish

THE EASTERN EXTERNAL BORDER OF THE ENLARGED EUROPEAN UNION (Wschodnia granica zewn´trzna rozszerzonej Unii Europejskiej) by Bartosz Cichocki | ― | CROSS-BORDER CO-OPERATION AT THE NEW EASTERN BORDER OF THE EUROPEAN UNION (Współpraca transgraniczna na nowej granicy wschodniej Unii Europejskiej) by Rafał Sadowski | ― | RUSSIAN-SPEAKERS IN LATVIA AND ESTONIA (Rosyjskojęzyczni na Łotwie i w Estonii) by Joanna Hyndle and Miryna Kutysz

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Israel’s Palestinian Challenges: The State’s Identity, a Leadership Crisis and the “new” Middle East
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Israel’s Palestinian Challenges: The State’s Identity, a Leadership Crisis and the “new” Middle East

Israel’s Palestinian Challenges: The State’s Identity, a Leadership Crisis and the “new” Middle East

Author(s): Karolina Zielińska / Language(s): English

Keywords: Israel-Palestine conflict; Middle East question; “Arab State”; “Jewish State”; Palestinian territories; Demography; security issue;

The conflict with the Palestinian side is a long‑term existential challenge for Israel. It plays out on four levels: territory; population; national aspirations and identity; security. Each of them generates conditions that make a resolution of the dispute or its absence decisive for the future character of this state in terms of its ethnicity (will the majority of the population still be Jewish?) and political system (will it remain a democracy?), as well as its external and internal security. At the same time, the Palestinian question remains a matter of concern for the international community – particularly public opinion – which makes it a major issue in Israel’s international relations.

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The Non-strategic Partnership. Belarus-China Relations
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The Non-strategic Partnership. Belarus-China Relations

The Non-strategic Partnership. Belarus-China Relations

Author(s): Kamil Kłysiński,Jakub Jakóbowski / Language(s): English

Keywords: China; Belarus; relations; cooperation; foreign strategy; Belt and Road Initiative; economic cooperation;

Relations between China and Belarus have been developing intensively over the past decade. This process has been fuelled by Beijing’s growing global ambitions as well as Minsk’s efforts to modernise the Belarusian economy and to partially reduce its dependence on Moscow. Increasing pressure from Russia and its inability to build closer relations with the West (which was mainly an effect of violations of human rights and the rule of law) prompted the Belarusian regime to seek alternative partners outside Europe. The aim was to increase its room for manoeuvre in foreign policy, as well as to gain additional sources of capital and new markets. Given China’s great economic potential and its interest in developing cooperation, Belarus mainly focused on China at the beginning of the 21st century, calling it a ‘close ally’. The cooperation gained momentum in the early 2010s, when China adopted a more proactive global policy after Xi Jinping had risen to power.

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Nine Dashes. Beijing’s Territorial Claims in the South China Sea
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Nine Dashes. Beijing’s Territorial Claims in the South China Sea

Nine Dashes. Beijing’s Territorial Claims in the South China Sea

Author(s): Michał Bogusz / Language(s): English

Keywords: Beijing; China; Territory; South China Sea; Beijing’s foreign policy;

For more than a decade, the South China Sea has been one of the most significant hot spots in East Asia and, to a large degree, also globally. Due to its fundamental importance for global maritime transport, its natural resources and its strategic location, the South China Sea is not only a key element of the policy pursued by its littoral states, but is also an area of interest of the world’s greatest powers. Although the importance of South China Sea cannot be overestimated, territorial disputes affecting it have remained unsettled since the end of World War II and have been the subject of rivalry between the region’s states, the People’s Republic of China in particular.

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Putinism After Putin. The Deep Structures of Russian Authoritarianism
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Putinism After Putin. The Deep Structures of Russian Authoritarianism

Putinism After Putin. The Deep Structures of Russian Authoritarianism

Author(s): Maria Domańska / Language(s): English

Keywords: Vladimir Putin; Russian authoritarianism; authoritarian tradition; power struggles in Russia; Barriers to Russia’s democratisation;

The Russian model of authoritarian rule owes its durability to the ‘deep structures’ that constitute the foundation of the Russian political system and political culture. These deep structures encompass an entire complex of basic values, norms, behaviour patterns and co‑dependencies between them, which are manifested in two pivotal phenomena. Firstly, it is the patrimonial notion of the state as being the personal property of the leader; and secondly, it is the logic of patron‑client relations as the main factor organising the sphere of socio‑political interactions. The deep structures have so far prevented genuine and sustainable democratisation in Russia. Their present‑day continuing dominance in the socio‑political environment will also hamper possible attempts to democratise the country in the post‑Putin period.

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The altar and throne alliance. The Russian Orthodox Church vs. the government in Russia
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The altar and throne alliance. The Russian Orthodox Church vs. the government in Russia

The altar and throne alliance. The Russian Orthodox Church vs. the government in Russia

Author(s): Katarzyna Chawryło (Jarzyńska) / Language(s): English

Keywords: Orthodox Church; Government; Russia; relations with the Kremlin; Structural and staff reform;

A great majority of Russians declare that they are members of the Orthodox Church. However, an analysis of social behaviours has proven that religion has no major impact on their lives – a great number of Russian citizens are not familiar with the religious dogmas, do not engage themselves in church rituals and have a liberal approach to following Christian moral principles. Attachment to Orthodoxy in the case of most Russians is of a declarative and passive nature, and usually is not linked to taking any specific actions. On the other hand, Orthodoxy and the Russian Orthodox Church Moscow Patriarchate, which is the largest religious community in Russia, play an essential role in the process of cultural and civil self-identification of the Russian nation. The Russian Orthodox Church (ROC) as a socio-political institution with a centuries-old history, which places strong emphasis on the continuity of Russian statehood and enjoys public prestige in Russia, has also been used for political purposes.

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The silicon shield. Taiwan amid the superpowers’ rivalry
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The silicon shield. Taiwan amid the superpowers’ rivalry

The silicon shield. Taiwan amid the superpowers’ rivalry

Author(s): Michał Bogusz / Language(s): English

Keywords: Taiwan

Taiwan’s strategic and economic importance, as well as political tensions in the East and Southeast Asian region, have made the island and the Taiwan Strait one of the world’s major hotspots. At the same time, it is becoming increasingly difficult to maintain the status quo due to socio-political changes in Taiwan itself, the growing military power and political ambitions of the People’s Republic of China (PRC) and the resulting intensification of the rivalry between it and the United States of America as well as other countries such as Japan and Australia. As a result, the Taiwan issue has emerged as a gauge of China’s intentions and capabilities, but the island itself has also become the limit of its expansion, beyond which conflict between Beijing on the one hand and Washington and its allies on the other appears inevitable.Taiwan’s pivotal location, economic role and key importance in the sector of new technologies, especially semiconductors, mean that maintaining its independence from the PRC is of vital interest to the US and its allies, including those in Europe. Consequently, a possible conflict between Taiwan and the PRC will have an international dimension and involve the US and its allies. The outcome of this face-off could determine the winner of the Chinese-US rivalry.

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Israels Palestinian challenges. The state’s identity, a leadership crisis and the "new" Middle East
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Israels Palestinian challenges. The state’s identity, a leadership crisis and the "new" Middle East

Israels Palestinian challenges. The state’s identity, a leadership crisis and the "new" Middle East

Author(s): Karolina Zielińska / Language(s): English

Keywords: Israel; Palestine

The conflict with the Palestinian side is a long-term existential challenge for Israel. A resolution of the dispute or its absence will be decisive for the future ethnic character of this state and for its political system, as well as its external and internal security. This text highlights the key parameters of the dispute from the Israeli perspective and reveals what internal and external factors are shaping their approaches to the issue. In particular, it emphasises the role of interested social groups, the significance of the formation of the “government of change”, the importance of a new regional reality and the involvement of the United States. Windows of opportunity pertaining to the dynamisation and evolution of the international context of the conflict do not change the nature of the Palestinian challenges to Israel and the inevitability of confronting them. They also do not guarantee that a fundamental breakthrough will emerge within the foreseeable future.

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The non-strategic partnership. Belarus-China relations
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The non-strategic partnership. Belarus-China relations

The non-strategic partnership. Belarus-China relations

Author(s): Kamil Kłysiński,Jakub Jakóbowski / Language(s): English

Keywords: Belarus-China relations

Relations between China and Belarus have been developing intensively over the past decade. This process has been fuelled by Beijing’s growing global ambitions as well as Minsk’s efforts to modernise the Belarusian economy and to partially reduce its dependence on Moscow. Given China’s great economic potential and desire to develop cooperation, it became the main non-European partner for Minsk at the beginning of the 21st century. Beijing decided to use Minsk’s great openness to cooperation and turned Belarus into an important laboratory for the Belt and Road Initiative, which was presented as one of the greatest successes of Xi Jinping’s flagship project. However, the two sides had quite different expectations as to the principles of their cooperation. In turn, the extremely ambitious visions were not filled with real content. The development of relations with China has not led to a structural transformation of the Belarusian economy. Instead, its trade deficit and foreign debt have increased. As a result, along with the growing disappointment with cooperation with Minsk, the Chinese administration and experts are again showing increasing interest in Ukraine, which is considered a much more attractive economic partner.

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Nine dashes. Beijing’s territorial claims in the South China Sea
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Nine dashes. Beijing’s territorial claims in the South China Sea

Nine dashes. Beijing’s territorial claims in the South China Sea

Author(s): Michał Bogusz / Language(s): English

Keywords: South China Sea

Territorial disputes occur in the South China Sea, which is a major hot spot in East Asia and to a large degree also globally. Due to its fundamental importance for global maritime transport, its natural resources and its strategic location, the South China Sea has become an area of interest for the world’s greatest powers. Although the importance of the South China Sea cannot be overestimated, territorial disputes affecting it have remained unsettled since the end of World War II. Since its establishment, People’s Republic of China has sustained its territorial claims to a major part of the South China Sea and, since the 1970s, it has been making active attempts to impose its jurisdiction over the region. This is accompanied by China challenging and ignoring international legal regulations in an unprecedented manner. For China, achieving domination in the South China Sea is a means of proving its superpower status. It is also one of many elements of China’s rivalry with the US for supremacy in East Asia. As a consequence, China is provoking not only the region’s states but most importantly the US and its allies to action. For these states, curbing China’s attempts is tantamount to defending both international law and their credibility as the guarantors of the international order. Since the beginning of the 2010s, the dispute has been mounting in proportion to the deepening political and economic rivalry between Beijing and Washington. At present, the COVID-19 pandemic is lending this conflict a new dynamic.

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