A Black Knight in the Eastern Neighbourhood? Russia and EU Democracy Promotion in Armenia and Moldova. EU Diplomacy Paper No. 7, October 2014

Europe’s peace and security are challenged by the events taking place in the Eastern Partnership region. Amid growing tensions between the European Union (EU) and Russia, the fate of countries in the common neighbourhood and their progress towards democracy are increasingly at stake. This paper tries to understand to what extent Russia is undermining EU democracy promotion in the Union’s eastern neighbourhood. By focusing on the cases of Armenia and Moldova, EU democracy promotion is analysed in light of the triangular relationship between the countries under scrutiny, the EU and Russia. It argues that domestic conditions and external pressures, linked through the filter of problems of ‘stateness’, are both crucial and mutually reinforcing for democratisation. The paper shows that Russia can undermine EU democracy promotion to the extent that it strengthens the aversion of domestic political forces to democracy-oriented reforms.

Growing global brands in foreign markets: A brand equity perspective. Impact of national culture on trademark registrations in emerging economy: Evidence from Russia. ACES Working Papers, August 2010

In this study we explore how firms deploy intellectual property assets (trademarks) in international context and the impact of cultural characteristics on such activities. Trademarks capture important elements of firm's brand-building efforts. Using growth model, a special case of hierarchical linear model, we demonstrate that that stock of trademarks in foreign market increase future trademark activity. Also, we explore the moderating roles of two cultural dimensions, individualism and masculinity, on such relationships. The findings indicated that firms from countries closer to host market (Russia) on individualism dimension tend to register more trademarks in host market. The opposite result is observed for masculinity dimension.

EU Sanctions Policy towards Russia: The Sanctioner-Sanctionee’s Game of Thrones. CEPS Working Document No. 402/January 2015

Since Russia’s annexation of the Crimean peninsula and the start of the conflict in the Donbass region, the EU has introduced three waves of restrictive measures against Russia, which are regularly updated. Having thus expanded from measures targeting individuals to entire sectors, the current EU sanctions policy impacts Russia’s financial markets, energy sector and defence industry. On top of this, new bans affect EU investments, services and trade in Crimea and Sevastopol. While they hurt the Russian economy, the EU sanctions also have a boomerang effect, especially in conjunction with the countersanctions imposed by the Kremlin on EU food imports. In this lose-lose situation, the usefulness of the EU sanctions has been called into doubt, in particular in those EU member states that are the most economically intertwined with Russia. How successful has the EU been so far in pushing its case with the Kremlin and what moves are left for the two main actors in the sanctioner-sanctionee ‘Game of Thrones’? This Working Document offers a SWOT analysis of the EU sanctions policy towards Russia and identifies the Strengths for the EU to cultivate, Weaknesses to minimise, Opportunities to seize and Threats to counteract.

It’s not just Russia: Currency crisis in the Commonwealth of independent states. Bruegel Policy Contribution 2015/01, February 2015

The currency crisis that started in Russia and Ukraine during 2014 has spread to neighbouring countries in the Commonwealth of Independent States (CIS). The collapse of the Russian ruble, expected recession in Russia, the stronger US dollar and lower commodity prices have negatively affected the entire region, with the consequence that the European Union's entire eastern neighbourhood faces serious economic, social and political challenges because of weaker currencies, higher inflation, decreasing export revenues and labour remittances, net capital outflows and stagnating or declining GDP. •The crisis requires a proper policy response from CIS governments, the International Monetary Fund and the EU. The Russian-Ukrainian conflict in Donbass requires rapid resolution, as the first step to return Russia to the mainstream of global economic and political cooperation. Beyond that, both Russia and Ukraine need deep structural and institutional reforms. The EU should deepen economic ties with those CIS countries that are interested in a closer relationship with Europe. The IMF should provide additional assistance to those CIS countries that have become victims of a new regional contagion, while preparing for the possibility of more emerging-market crises arising from slower growth, the stronger dollar and lower commodity prices.

Russia and Turkey - What does their partnership mean for the EU? EPC Policy Brief, 13 February 2015

Russia and Turkey have, over the past two decades, developed a very constructive relationship across a wide variety of policy areas. Imperial rivals during much of the Cold War, both countries have since then found common interests in matters of energy, trade and even defence. Besides their growing interdependence, it is hard not to notice the similarities between the two leaders of these countries, especially when it comes to the conspiracy mind-set of blaming dissent at home on foreign meddling. But does this mean that Turkey is fundamentally realigning its foreign policy strategy, away from the EU and towards Russia? And is the EU facing the emergence of an “axis of the excluded”? Not so according to Dimitar Bechev. In this Policy Brief, he argues that the ties between Russia and Turkey are driven by pragmatism and realpolitik. Contentious issues – such as the war in Syria - may be insulated from areas of overlapping interest, but deeper examination shows the glue holding the two countries together – their energy interdependence – is slowly weakening. Bechev believes the EU should take advantage of this divergence and try to (re-)anchor Turkey to its own initiatives and policies.

The economic and financial crisis in Russia – background, symptoms and prospects for the future. OSW Report 02/2015

The crisis in Russia’s financial market, which started in mid-December 2014, has exposed the real scale of the economic problems that have been growing in Russia for several years. Over the course of the last year, Russia’s basic macroeconomic indicators deteriorated considerably, the confidence of its citizens in the state and in institutions in charge of economic stability declined, the government and business elites became increasingly dissatisfied with the policy direction adopted by the Kremlin, and fighting started over the shrinking resources. According to forecasts obtained from both governmental and expert communities, Russia will fall into recession in 2015. The present situation is the result of the simultaneous occurrence of three unfavourable trends: the fact that the Russian economy’s resource-based development model has reached the limits of its potential due to structural weaknesses, the dramatic decline in oil prices in the second half of 2014, and the impact of Western economic sanctions. Given the inefficiency of existing systemic mechanisms, in the coming years the Russian leadership will likely resort to ad hoc solutions such as switching to a more interventionist “manual override” mode in governing the state. In the short term, this will allow them to neutralise the most urgent problems, although an effective development policy will be impossible without a fundamental change of the political and economic system in Russia.

Indigenous Peoples’ Rights and their (new) Mobilizations in Russia. EDAP 2/2015

Issues concerning indigenous peoples (IPs) in Russia have become a “hot topic” despite the fact that they represent only 0.2 percent of the population. Constant amendments to the laws affecting the life of IPs and lawsuits filed before local Courts denouncing the violations of IPs’ rights are signs of the struggle surrounding these indigenous peoples. Moreover, between 2012 and 2013, the Russian Association of Indigenous Peoples of the North (RAIPON), the umbrella organization of IPs in the country, was ordered to shut down and subsequently given the permission to reopen by the Russian Ministry of Justice within the course of less than six months. This article aims to gain a deeper understanding of the recent developments vis-à-vis indigenous peoples’ legal protection and IPs’ increasing efforts to exercise their rights.

The Re-emergence of Russia and its Collision Course with Europe. Jean Monnet/Robert Schuman Paper Series Vol. 14 No. 4, March 2014

From the Introduction. In order to understand the historical roots of the current geopolitical confrontation between the EU and Russia, we have to go back to the end of the Cold War and to the catastrophic decade that it was followed by in Russian history. The dissolution of the USSR imposed serious economic hardship for Russia and for all the ex-communist East-European states. Russia was the hardest hit amongst them, as the center of the USSR's economic system it suffered most from the dissolution of regional economic ties. This crisis was just deepened by the IMF's privatization and reform campaign, which imposed austerity measures and state-asset privatization as a “shock-therapy” answer to the country's economic problems. This policy package did nothing to save Russia from economic collapse (which eventually happened in 1998), the only thing it achieved was an even stronger social and economic crisis and the enrichment of the rent-seeking ex-communist top bureaucrats by state-assets, which were sold out under-priced through diverse channels of corruption

NATO’s presence in the Baltic states – reassurance of allies or deterrence for Russia? OSW COMMENTARY Number 169, 29.04.2015 2015-04-29

In late March and early April, the US Air Forces in Europe (USAFE) held an exercise in Estonia, during which US F-16s destroyed ground targets in an Estonian firing range. Around the same time the Americans held a drill with the Swedish and Finnish Air Forces over the Baltic Sea. The United States has been playing a leading role in the process of strengthening NATO’s presence in the Baltic states. As far as the Western European allies are concerned, Germany will follow in the footsteps of Denmark and the United Kingdom, both of which made significant military contributions to the strengthening of the allied presence in 2014, and will deploy the largest number of troops in 2015. Non-aligned Sweden and Finland, key for the performance of NATO operations in the Baltic states, have been emphasising their military and political readiness to co-operate with NATO in the event of potential crises or conflicts. Comparing NATO ‘s military presence in the Baltic states before and after the outbreak of the Russian intervention in Ukraine, it is clear that NATO has stepped up its engagement considerably. However, its scope is still relatively small, given the much larger military potential and mobilisation capacity of Russia. Moreover, the message sent by NATO’s actions may be diminished by the political, military and financial constraints faced by the allies and Sweden and Finland. It seems that the greatest risk to the military security of the Baltic states currently appears to be the possibility that Russia could wrongly assess the reliability of NATO’s security guarantees.

The devil is in the details. Information warfare in the light of Russia's military doctrine. OSW Point of View 50, May 2015

By highlighting informational threats and giving them a military dimension, the authors of the Russian Federation's military doctrine have outlined the concept of information warfare. It is a kind of combat conducted by both conventional and indirect methods, open and concealed, using military and civilian structures. It has two dimensions: broader ("non-nuclear containment", i.e. combat waged on various levels - political, economic, diplomatic, humanitarian, military) and narrower (as an element supporting of action). An analysis of these issues enables us to identify several rising trends over the period 2000-2014 in Russian security policy. These boil down to a blurring of the boundaries between internal and external threats, introducing non-military methods and organisational structures to armed combat, and conferring an ideological character on this combat. This leads to a blurring of the contours of inter-state conflicts, which allows Russia to take part in armed conflicts in which it is not officially a party.

Russia marks the 70th anniversary of the victory over Nazism: What significance does it have in an epoch of global confrontation? OSW Commentary No. 171, 20 May 2015

The Victory Day celebrations held in Russia on 9 May 2015 were special for marking the seventieth anniversary of the end of World War II but the particular international and domestic context they were set in was of yet greater importance. The element which set the celebrations in 2015 apart from those in the preceding years was how the military and moral aspects of Soviet victory over Nazi Germany was made part of the current geopolitical confrontation with the West concerning the Ukrainian crisis. The escalation of the aggressive rhetoric on Europe and the USA and accusations that the West is destabilising the international situation and striving for conflict was accompanied by a display of the increasing military power of the Russian Federation; the display itself was stronger than has been seen in preceding years. This was a clear sign that Moscow is ready to protect its national interests in the area of foreign policy by any means. At the same time, the creation of an atmosphere of threat and stoking patriotic feelings was intended to mobilise the Russian public around the political leadership while the country’s economic problems are deteriorating further.

The consequences for Russia of the nuclear deal with Iran. OSW COMMENTARY NUMBER 177/03.08.2015

The five permanent members of the UN Security Council (the USA, the United Kingdom, China, France and Russia) plus Germany and the European Union signed a deal with Iran on 14 July in Vienna (a Plan of Action with five appendices, henceforth referred to as the Vienna Agreement). Under this agreement, Iran undertook to restrict its nuclear programme and to bring it under international scrutiny for 15 years in exchange for a gradual lifting of international sanctions (both those imposed between 2006 and 2010 by the UN Security Council and the unilateral US and EU sanctions). Even though Russia has officially reacted positively to this deal, the consequences it will have are rather ambiguous from Moscow’s point of view. Iran looks set to become stronger and will possibly normalise its relations with the West, and especially the United States. This, in political terms, is a disadvantage for Russia. The Kremlin’s ability to use its policy towards Iran as a bargaining chip in contacts with Washington will be reduced significantly. In turn, the benefits will include improving the perception of Russia in the West and the opening up of new opportunities for the geopolitical game in the region, both with Iran and its opponents in the Arab world. Similarly, in economic terms, the possible lifting of sanctions will offer Russia new opportunities to achieve immediate benefits owing to co-operation in the nuclear and military-technical areas. In the short term, the lifting of sanctions will not pose any threat to Russia’s position on the global energy markets. However, in the long term, the end of Iran’s international isolation may bring negative consequences for Russia, such as the dominant position of Western and/or Chinese companies in the Iranian upstream sector, rising exports of Iranian oil and gas to EU and Asian markets (which are essential for Russia) and the downward pressure on oil and gas prices.

Ramzanistan. Russia's Chechen Problem. OSW POINT OF VIEW Number 54, 2015-08-25

The political activity and growing independence of Chechnya’s leader Ramzan Kadyrov raises questions about his loyalty and the possibility of his openly renouncing his servitude to Moscow. Such a scenario seems unlikely because of the dependence of Kadyrov’s regime on Russia. He is burdened by his republic’s financial dependence, the stain of collaboration and the crimes committed on his own people, and so his regime cannot exist without Moscow’s support. However, Kadyrov’s dependence on Moscow and the apparent stability of the situation in Chechnya do not mean that a lasting peace has been established there. The current plan for governing the republic and the relationship between Moscow and Grozny is a temporary solution, based not on durable solutions, but on the situational convergence of the Kremlin and Kadyrov’s interests. A change of government in the Kremlin, or to an even greater degree a domestic crisis in Russia which weakens its position in the Caucasus, would mean the fall of Kadyrov’s regime, and the reactivation of pro-independence rhetoric in Chechnya.

Strangers among us. Non-governmental organisations in Russia. OSW COMMENTARY 2015-09-29

The situation of the third sector in Russia, i.e. the civil society structures independent from the state, is worsening on a regular basis. The Kremlin’s actions aimed at paralysing and destroying the independent non-governmental sector seen over the past four years have been presented as part of a struggle for the country’s sovereignty. This is above all a consequence of the Russian government’s efforts to take full control of the socio-political situation in the country while it also needs to deal with the geopolitical confrontation with the West and the worsening economic crisis. The policy aimed against non-governmental organisations is depriving the public of structures for self-organisation, protection of civil rights and the means of controlling the ever more authoritarian government. At the same time, the Kremlin has been depriving itself of channels of co-operation and communication with the public and antagonising the most active citizens. The restrictive measures the Kremlin has taken over the past few years with regard to NGOs prove that Russian decision-makers believe that any social initiative independent of the government may give rise to unrest, which is dangerous for the regime, and – given the economic slump – any unrest brings unnecessary political risk.