Series:OSW Commentary

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Russia's development assistance

Russia's development assistance

Author(s): Agata Wierzbowska-Miazga,Marcin Kaczmarski / Language(s): English

Keywords: Russia; development

In its attempts to catch up with the global trend, Russia began granting development assistance in 2004. From the onset of Russia’s commitment, the aid delivered has increased fivefold and reached approximately US$ 500 million in 2010. Russian aid, albeit distributed nearly exclusively via international organisations, has been granted above all to members of the Commonwealth of Independent States (CIS). In recent months work on the establishment of the Russian development assistance system has been accelerated (a national strategy is being prepared and a specialised agency is to be established). This move proves that the Kremlin attaches weight to activity in this area which is an element of soft power politics, the foundations of which Moscow is currently attempting to lay.

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Bulgarian-Russian games in the energy sector: an outcome is getting closer

Bulgarian-Russian games in the energy sector: an outcome is getting closer

Author(s): Tomasz Dąborowski / Language(s): English

Keywords: Bulgaria; Russia; energy sector

Bulgaria and Russia are entering the final phase of setting the conditions of their co-operation in the energy sector. A new gas contract is being negotiated because the currently applicable agreements will have expired by the end of 2012. The fate of two major energy projects – whose implementation depends on good co-operation between Sofia and Moscow: the Burgas–Alexandroupolis oil pipeline and the construction of a Bulgarian nuclear power plant in Belene with Russian participation – is currently being decided. Another issue ever-present on the agenda is the future of the South Stream gas pipeline promoted by Russia, which is to run through Bulgarian territory. The outcome of all the aforementioned discussions and negotiations will determine for years the model of Bulgarian-Russian relations and may strongly affect the shape of the oil, gas and electricity markets in South-Eastern Europe.

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Constitution for a new Hungary – the domestic and regional implications

Constitution for a new Hungary – the domestic and regional implications

Author(s): Andrzej Sadecki,Mateusz Gniazdowski / Language(s): English

Keywords: constitution; Hungary

The new constitution will come into force in Hungary on 1 January 2012[1]. Its adoption is part of the state reform which the Fidesz party led by Prime Minister Viktor Orbán has been implementing since it won the election in April 2010. Fidesz, along with the Christian Democrats which support it, has a qualified majority of two-thirds of the votes in parliament and may introduce solutions to facilitate its rule without support from other groupings and it is taking advantage of this opportunity. One example of this has been the amendment of the constitution ten times followed by a speedy adoption of a new constitution. The next step will be passing dozens of constitutional laws which regulate essential areas of the functioning of the state over the next few months.

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Russia's Middle East policy after the Arab revolutions

Russia's Middle East policy after the Arab revolutions

Author(s): Marcin Kaczmarski / Language(s): English

Keywords: Russia; Middle East; Arab revolution

Russia's policy towards the Middle East is instrumental. Its activity in the region has been growing since the middle of the last decade, and its aim is to help Moscow achieve its objectives in other areas, particularly in its policies towards the US and Europe, as well as its energy policy. The establishment of these political influences constitutes a bargaining chip for Russia in its relations with the US. Russia's participation in resolving conflicts is aimed at building up its image as a supra-regional power. Russia's Middle East policy is a key element in its contacts with the Muslim world. At the same time, Russia's policy in the region remains cautious – despite its return to the region, Russia has not decided to 'play' for the Middle East, and its position and role in the region remain limited.

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Forerunners or scaremongers? Germany to abandon nuclear power

Forerunners or scaremongers? Germany to abandon nuclear power

Author(s): Anna Kwiatkowska-Drożdż / Language(s): English

Keywords: Germany; nuclear power

The German government’s final decision to abandon nuclear power as of 2022 has been expected for months. However, instead of calming the waters, providing solutions and answering the question ‘What next?’, it has only fanned the flames. Even the adoption of legal amendments enforcing the government’s decision by the German parliament (both the Bundestag and the Bundesrat) in late June and early July has not calmed the situation. It is more than apparent that these decisions have been made under emotional pressure: there was not enough time for accurate calculations to be made and consideration to be given to the consequences of Germany abandoning nuclear power. Chancellor Angela Merkel has so far been unable to fully convince the public that the ‘energy shift is a huge opportunity’ and that this process will be carried out on condition that ‘the supplies remain secure, the climate protected and the whole process economically efficient’. German economic associations have warned against a politically motivated, ill-judged and irreversible abandonment of nuclear energy. They are anxious about an increase in electricity prices, the instability of supplies and environmental damage. The government believes, however, that green technologies will become a new driving force for the German economy and its main export commodity. Before that happens the industry will have to increase its use of electricity produced from fossil fuels, mainly natural gas imported from Russia. This may be exploited by Gazprom which will try to strengthen its position on the German market, and thus in the entire EU.

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No more compulsory engagement. The emancipation of German security policy

No more compulsory engagement. The emancipation of German security policy

Author(s): Justyna Gotkowska / Language(s): English

Keywords: German; security policy

Germany’s stance on Libya at the UN Security Council and its later decision not to take part in the military intervention gave rise to heated controversy both in Germany and abroad. At home, this was criticised as “an enormous mistake of historic impact”[1]; while abroad this raised questions about Germany’s willingness to co-operate with its key Western allies. With its decision on Libya, Germany sealed the process of making its security policy independent from the stances of the US and France. It thus ceased to feel any compulsion to provide not only military engagement but also political support for overseas operations initiated by its key allies, even if these are legitimised by the UN Security Council. Germany’s stance, apart from finishing off a certain process, is also setting a starting point for a discussion inside Germany about its military engagement in international security policy. This will bring about a more assertive and selective approach to co-operation with NATO and the EU’s Common Security and Defence Policy.

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Svoboda party – the new phenomenon on the Ukrainian right-wing scene

Svoboda party – the new phenomenon on the Ukrainian right-wing scene

Author(s): Tadeusz A. Olszański / Language(s): English

Keywords: Svoboda party; Ukraine; right-wing

Even though the national-level political scene in Ukraine is dominated by the Party of Regions, the west of the country has seen a progressing increase in the activity of the Svoboda (Freedom) party, a group that combines participation in the democratically elected local government of Eastern Galicia with street actions, characteristic of anti-system groups. This party has brought a new quality to the Ukrainian nationalist movement, as it refers to the rhetoric of European anti-liberal and neo-nationalist movements, and its emergence is a clear response to public demand for a group of this sort. The increase in its popularity plays into the hands of the Party of Regions, which is seeking to weaken the more moderate opposition parties (mainly the Yulia Tymoshenko Bloc). However, Svoboda retains its independence from the ruling camp. This party, in all likelihood, will become a permanent and important player in Ukrainian political life, although its influence may be restricted to Eastern Galicia.

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Ordnung muss nicht sein. Developments on the German political scene

Ordnung muss nicht sein. Developments on the German political scene

Author(s): Marta Zawilska-Florczuk / Language(s): English

Keywords: Germany; political scene

The results of parliamentary elections in seven German federal states, ongoing since early 2011, show the collapse of the existing order on the German political scene, both on a national level and on the level of the individual federal states. So far, the federal states have been governed by one of the catch-all parties[1] – i.e. the Christian Democrats or Social Democrats – in coalitions with smaller partners – the FDP and the Greens, respectively[2]. This year's elections have fully revealed the extent of social transformation in Germany and its impact on voting preferences and the hitherto stable party system in this country. The largest and most popular parties so far – the CDU and the SPD – are losing the voters' confidence and support, whereas the parties associated with protest movements (such as the Greens) are gaining prominence. Moreover, the German political scene is undergoing increasing fragmentation, as new small, local groups are appearing who have no political aspirations at the federal level but who are attractive to voters acting as successful groups of common cause. The changes in the existing balance of power on the German political scene are being sped up by the specific features of the federal system. Elections to the parliaments of the federal states are held at regular intervals which increasingly affects policies on the national level. The key decisions that concern domestic and foreign affairs are made under the pressure of constant election campaigns.

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The EU internal market – a stake or a tool in European-Russian gas relations

The EU internal market – a stake or a tool in European-Russian gas relations

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

Keywords: EU internal market; European-Russian gas relations

Since 2010 we have observed a new quality in EU energy policy. It is related to the European Commission’s more or less direct engagement in the bilateral gas relations of a part of the new member states – Poland, Bulgaria and Lithuania – with Russia. Although the long term outcome of this activity of the EC is as yet unclear it seems to be important for several reasons. Firstly it might increase the possibilities of the enforcement of the EU’s directives liberalising the internal gas market and specifically their implementation in individual gas agreements with suppliers from third countries (Gazprom). The consistency and determination of the EC in this field may be decisive for the future direction and depth of the liberalisation of the EU gas market. Furthermore, present developments may lead to an increase in EU and specifically EC competence in the field of energy policy, especially its external dimension.

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Estonia in the Eurozone – a strategic success

Estonia in the Eurozone – a strategic success

Author(s): Paweł Siarkiewicz / Language(s): English

Keywords: Estonia; eurozone

The adoption of the euro in January 2011 topped off Estonia’s integration policy. In the opinion of Estonian politicians, this country has never been so secure and stable in its history. Tallinn sees the introduction of the euro primarily in the political context as an entrenchment of the Estonian presence in Europe. The process of establishing increasingly close relations with Western European countries, which the country has consistently implemented since it restored independence in 1991, has been aimed at severing itself its Soviet past and at a gradual reduction of the gap existing between Estonia and the best-developed European economies. The Estonian government also prioritises the enhancement of co-operation as part of the EU and NATO as well as its principled fulfilment of the country’s undertakings. It sees these as important elements for building the country’s international prestige.

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Ukraine's cooperation with the IMF – unfulfilled hopes for deeper reform

Ukraine's cooperation with the IMF – unfulfilled hopes for deeper reform

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

Keywords: Ukraine; IMF

The Party of Regions took power in early 2010, after Ukraine had been plunged deep in economic crisis. Over the next year, with the external markets recovering, the country’s economic situation started to improve gradually. Ukraine’s economic stabilisation was also strengthened by its resumed cooperation with the International Monetary Fund, which provided for a loan worth $15.1 billion. The issuing of successive tranches of the loan was made dependent on the implementation of a comprehensive reform programme. The cooperation went quite smoothly at first; however, as the economic situation in Ukraine improved, the reformist zeal of the Ukrainian government started to fade, and obstacles began piling up. As a result, Ukraine was refused the third tranche, scheduled for this March, and for the moment the credit line remains frozen. Even though the IMF has numerous reservations about the Ukrainian government's economic policy, the fundamental condition for resuming cooperation is reform of the pension system, which the parliament should adopt.

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On the verge of crisis? Mounting economic problems in Belarus

On the verge of crisis? Mounting economic problems in Belarus

Author(s): Kamil Kłysiński / Language(s): English

Keywords: Belarus; economic crisis

Belarus’s financial condition has visibly worsened since the beginning of this year. The severe falls in the country’s foreign currency reserves and its shortage of foreign currency on the international market pose an increasing threat to the stability of the Belarusian economy. Fearing an outbreak of public dissatisfaction, The government has so far been trying to avoid devaluing the rouble or structural economic reforms. Maintaining full control inside the country and the stability of the authoritarian regime are still the main concerns for President Alyaksandr Lukashenka. For this reason, the actions taken by the Belarusian government have been limited to imposing short-term administrative restrictions on the foreign currency market and obtaining external support in the form of loans. Given Belarus’s falling creditworthiness, Minsk is only able to ask Russia for financial support, thus offering the Kremlin more opportunities to realise its desire to take over strategic industrial plants in Belarus. However, the present economic problems of Belarus are so serious that no loan will be able to safeguard its government from the need of carrying out serious economic reforms.

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Creeping' civil war in the North Caucasus

Creeping' civil war in the North Caucasus

Author(s): Wojciech Górecki / Language(s): English

Keywords: civil war; North Caucasus

Over the last year, the situation in Russia’s North Caucasus has become further destabilised. Attacks and armed clashes happen daily, and destabilisation is spreading to an increasingly large area. The extent of violence in the region is so great that it can already be stated that a de facto civil war is taking place, the warring parties being the Islamic armed underground movement which operates under the banner of the so-called Emirate of the North Caucasus, and the secular governments of the individual republics, who are supported by local and federal branches of the Russian Federation’s Interior Ministry and Federal Security Service.

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Foreign policy at the service of modernisation: old wine in a new wineskin

Foreign policy at the service of modernisation: old wine in a new wineskin

Author(s): Marcin Kaczmarski / Language(s): English

Keywords: foreign policy

Russia’s contacts with the external world over the past year have been characterised by a gradual improvement in its relations with the West, as well as the use of non-confrontational rhetoric, the most far-reaching example of which was the address President Medvedev gave to Russian ambassadors this July. In an attempt to harmonise foreign policy with the widely propagated programme for the modernisation of Russia President Medvedev presented a vision of the Russian Federation as a responsible global power which is open to co-operation. According to this vision, Russian foreign policy would help to attract foreign investments and technologies. The West was presented as a partner, not a rival.

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Tug-of-war over EU’s policy towards its neighbours

Tug-of-war over EU’s policy towards its neighbours

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

Keywords: EU; neighborhood policy

The revolutions in North Africa, the approaching end of the ‘strategic review’ of the European Neighbourhood Policy (ENP) initiated by the European Commission, and the beginning of negotiations on the European Union’s new financial perspective, have intensified the debate among the member states and EU institutions on what policy the EU will adopt towards its neighbourhood in the future. The discussion concerns not only the shape of the ENP but also non-ENPI foreign policy instruments which Brussels applies towards neighbouring countries, such as the thematic instruments and loan support.

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The natural resources deficit: the implications for German politics

The natural resources deficit: the implications for German politics

Author(s): Anna Kwiatkowska-Drożdż / Language(s): English

Keywords: natural resources deficit; Germany

Falling amounts of natural resources and the ‘peak oil’ question, i.e. the point in time when the maximum rate of extraction of easily-accessible oil reserves is reached, have been among the key issues in public debate in Germany on all levels: expert, business and – most crucially – the government level. The alarming assessments of German analysts anticipate a rapid shrinkage of oil reserves and a sharp rise in oil prices, which in the longer term will affect the economic and political systems of importer countries. Concerns about the consequences of the projected resource deficit, especially among representatives of German industry, are also fuelled by the stance of those countries which export raw materials. China, which meets 97% of global demand for minerals crucial for the production of new technologies, cut its exports by 40% in summer 2010 (compared to 2009), arguing that it had to protect its reserves from overexploitation.

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The EU-Ukraine Action Plan on Visa Liberalisation: an assessment of Ukraine’s readiness

The EU-Ukraine Action Plan on Visa Liberalisation: an assessment of Ukraine’s readiness

Author(s): Marta Jaroszewicz / Language(s): English

Keywords: EU-Ukraine Action Plan; EU; Ukraine; Visa Liberalisation

The Action Plan on visas adopted during the recent EU-Ukraine summit is a success for Ukraine. It is the first time that Kyiv has succeeded in obtaining a definition of the conditions and criteria whose fulfilment will enable Ukraine to apply for the lifting of EU visas for its citizens. Ukraine's strong point has been its political will; the lifting of this visa regime has been a priority for all Ukrainian governments since 2005. Since Viktor Yanukovych became president, Ukraine has adopted or prepared key legal acts that brought it nearer to European standards in the area of border and migration management. One of Kyiv's strengths is also its relatively well reformed and efficiently managed border service. Moreover, illegal transit migration via Ukraine is decreasing, and fewer Ukrainians are trying to enter or stay in the EU illegally. Also, Kyiv has efficiently implemented the EU-Ukraine readmission agreement.

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Ukraine and Russia: a hindered rapprochement

Ukraine and Russia: a hindered rapprochement

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

Keywords: Ukraine; Russia

The policy of rapprochement with Russia that President Victor Yanukovych and his entourage had been actively promoting in the first months of his presidency has slowed down notably. One of the reasons for this lowered pace is that current talks between Russia and Ukraine concern the spheres in which Kyiv is not ready to make concessions to Russia. Despite numerous top-level meetings, recent months have failed to bring a breakthrough in energy issues of key importance. First of all, no compromise was reached in gas issues where the divergence of interests is particularly large and where Ukraine has adopted a tough stance to negotiate the best conditions possible. Even though some agreements were signed during the October session of the inter-governmental committee presided over by the prime ministers (the agreement on linking the two states' aircraft production and on the joint construction of a nuclear fuel production plant), these resulted from prior agreements.Economic negotiations will continue in the coming months but the observed deadlock is not likely to be broken any time soon. The results of these talks are likely to reflect the interests of both Russia and Ukraine, as well as the competition among Ukrainian business groups, some of which opt for closer cooperation with their Eastern neighbour.Ukraine's consent to send oil to Belarus along the Odessa-Brody pipeline shows that the government in Kyiv is ready to engage in projects they consider profitable, even those that run counter to Russian interests. Ukraine’s adoption of this stance may trigger irritation in Moscow and lead to a cooling in bilateral relations.

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Russia's interest in the Mistral: the political and military aspects

Russia's interest in the Mistral: the political and military aspects

Author(s): Piotr Żochowski / Language(s): English

Keywords: Russia; Mistral; military policy

The negotiations over Russia's purchase of French Mistral-class multipurpose assault ships, which were intensified in 2010, have gained a significant political dimension. The prospects of such a spectacular acquisition of large and expensive assault ships from one of NATO’s member states are being used by Russia to demonstrate that it has opened a new stage of relations with Western Europe. Paris has welcomed Russia's desire to embark on military cooperation; for France, the Mistral deal has become a convenient tool to prove that relations with Russia are becoming increasingly normal, and that Russia poses no threat to the European security.

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The Party of Regions monopolises power in Ukraine

The Party of Regions monopolises power in Ukraine

Author(s): Tadeusz A. Olszański / Language(s): English

Keywords: Party of Regions; Ukraine

Since the Party of Regions took power in Ukraine, the process of strengthening the executive branch of government at the expense of the others, together with the instrumental use of the law, has been progressing steadily. By seeking to restrict criticism of the government, the ruling party is aiming at marginalisation of opposition groups and establishing informal control over the main media (largely by exerting pressure on their owners). The role of the Security Service of Ukraine (SBU) is growing, as it is used increasingly frequently to put pressure on Western-oriented NGOs. The government's control over the judiciary is expanding. These trends had existed before the Party of Regions' ascension to power, but they were much weaker, as the previous governments did not enjoy such a strong position or the ability to achieve their ends so efficiently. The Party of Regions is planning to take another step towards total power during the local elections scheduled for October 2010. The party is determined to establish control over the local self-governments; to this end, it has amended the legislation in a way which now undermines local civil initiatives.

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