Towards a Fragmented Neighbourhood: Policies of the EU and Russia and their consequences for the area that lies in between. CEPS Essay No. 17, 17 October 2014

In the current volatile climate, the EU needs a strategy towards Russia that goes beyond sanctions. In reviewing the European Neighbourhood Policy and the Eastern Partnership, the EU’s incoming leadership should be more sensitive towards the existing political, diplomatic, economic, energy and military ties between Russia and the countries in the common neighbourhood. After all, it is by exploiting these ties that Russia was able to turn this neighbourhood into an area of destructive competition − the primary victim of which is Ukraine. Understanding Russia’s perceptions and being sensitive to these longstanding ties does not mean justifying their use by the Kremlin. Nevertheless, factoring these ties into the EU’s policies vis-à-vis its Eastern neighbourhood is a prerequisite for more reflective, responsive and effective EU policies.

Transnistria – Where to? EPC Policy Brief, 13 March 2014

At the Vilnius summit of the Eastern Partnership in November 2013, Moldova initialled its Association Agreement with the EU, including a Deep and Comprehensive Free Trade Area (DCFTA) agreement, and is expected to sign the documents before the end of August 2014. Meanwhile, Russia has increased its presence and pressure in the region, as a consequence of which Armenia declined the AA and DCFTA with the EU and Ukraine, after months of protests and political paralysis, now has part of its territory occupied by Russia. Moldova is no exception to Russian pressure. As the country gets closer to upgrading relations with the EU, Russia has increased its activities in Moldova, including in the autonomous region of Gagauzia and in the breakaway region of Transnistria. Even though the “5+2” negotiations for the settlement of the Transnistria conflict continue, the number of incidents in and around this region have increased. The window of opportunity created by the involvement of Germany in the settlement of the conflict and the restart of the “5+2” negotiations in late 2011 seems to have closed. Given the recent events in the region and in Moldova/Transnistria, including the potential impact of DCFTA and visa liberalisation, Chisinau finds it increasingly difficult to manage the juggling act between its EU commitment and dialogue with Tiraspol. This Policy Brief presents the background, state of play and prospects of the Transnistria conflict while also focusing on the potential impact of Moldova’s Association Agreement with the EU on the settlement of the conflict.

Helping Moldova stay on the EU course. Proposals for a real 'more for more' approach. EPC Policy Brief, 11 December 2013

At the Vilnius Eastern Partnership (EaP) Summit in November, Moldova initialled its Association Agreement including a Deep and Comprehensive Free Trade Area (DCFTA) with the EU and became the first EaP country to meet all the requirements of their Visa Liberalisation Action Plan. 2014 may prove to be a make or break year for Moldova, with Chisinau facing a number of serious challenges. From the EU’s point of view, it could also prove to be a make or break year for the Eastern Partnership. The period following Vilnius should be a soul-searching time for the EU. Of the three pillars (AA, DCFTA, visa regime) of the Eastern Partnership, two are now being openly challenged by Russia. While the EU should not engage in a populist competition with Russia, it does need to adapt its actions to the realities on the ground. In this Policy Brief, Cristian Ghinea, Amanda Paul and Victor Chirila argue that the EU should work for greater visibility, better public diplomacy and deliver visible, tangible benefits to the Moldovan population as rapidly as possible. Not only will this help counter Russian activities, but it will also help shore up support for pro-EU reformers in the country.

Od demokracji "wirtualnej" ku europejskiej: Geneze i konsekwencje przelomu politycznego w Moldawii. Prace OSW 32/2009. = From "virtual" to European democracy - the origins and consequences of the political breakthrough in Moldova. OSW Study 32/2009

2009 may become a turning point in the history of post-Soviet Moldova. The country’s political class and society are faced with a fundamental choice. On the one hand, if the Party of Communists of the Republic of Moldova, which has governed the country since 2001, remains in power, this would mean a consolidation of the authoritarian rule of the party leader Vladimir Voronin, perpetuation of the superficial nature of democratic institutions and a continuation of the manoeuvring between the European Union and Russia (with the increasing risk of falling into the latter’s exclusive zone of influence). On the other hand, the take over of political power by the opposition parties creates an opportunity for Moldova to resume building a democratic, pluralistic political system based on the rule of law and to develop closer links with the European Union within the framework of the European Neighbourhood Policy, including the Eastern Partnership.

Dialogue with the Eurasian Union on Ukraine – an opportunity or a trap? OSW COMMENTARY No. 154, 2014-12-01

The Eurasian Union (or, to give it its full name, the Eurasian Economic Union, EEU) is Russia's flagship project, by use of which it aims to institutionally subordinate the post-Soviet states to itself using political ties and the projected common economic space. The Kremlin has so far managed to persuade Belarus and Kazakhstan, and tentatively also Armenia, to join this integration project, which on the surface looks like a multilateral initiative but in reality conceals a network of bilateral relations centred on Russia. However, in order for Russia to reconstruct its influence in its neighbourhood permanently and without change, it is of key importance that Ukraine is incorporated into the EEU. That still seemed feasible even in 2013, but the Maidan and the Russian-Ukrainian war have undone this possibility. However, they also opened up an alternative scenario for Russia, one in which the Western states recognise the Eurasian Union as a legitimate partner in discussions about a new order in Europe with a view to restoring peace in Ukraine. It is worth taking into account the strategic consequences of that scenario. We need to consider if the idea which Moscow has been lobbying for – and which has found some supporters in Brussels and Berlin – threatens to take us back to the Cold War system of geopolitical blocs and implies recognition of Russia's dominance over Ukraine and the other Eastern Partnership countries?

Reforms in Moldova: Moderate progress and an uncertain outlook for the future. OSW Commentary No. 100, 2013-01-22

After coming to power in September 2009, the Alliance for European Integration (AIE)1 coalition began implementing a wide-ranging programme of reforms, with a view to bringing Moldova closer to the European Union, and ultimately to ensure the country’s full membership of the EU. Today, Moldova is considered a clear leader in European integration among the members of the EU’s Eastern Partnership programme. This, however, has less to do with the concrete reforms introduced by the Moldovan government, and more to do with, on the one hand, Chișinău’s excellent public relations with Brussels, achieved through effective diplomacy; and on the other hand, the growing disillusionment with the lack of progress in other Eastern Partnership countries, particularly in Ukraine. Attempts to evaluate Moldova’s reforms have proven rather problematic. On the one hand, the ruling coalition has managed to make significant progress in the areas of civil liberties, human rights and electoral reform. The government has also successfully implemented regulations which have brought Moldova closer to signing a Deep and Comprehensive Free Trade Agreement (DCFTA) with the EU, and it has made headway in talks on visa liberalisation with Brussels. On the other hand, Chișinău has still not carried out the structural and economic reforms without which real change in the country will be impossible. No reforms have been introduced in the Ministry of the Interior, the Moldovan police force, or the judiciary. The AIE has also failed to decentralise governance and has had no real success in reducing corruption; its attempts to rebuild the country’s financial institutions have proved equally unsuccessful. The main reasons for this poor performance include mutual mistrust and conflicting interests among the coalition members, a shortage of financial resources, strong resistance to change by public administration staff, and significant pressure from those political and business groups whose interests could suffer as a result of the proposed reforms. It should also be noted that since the AIE took power, the international context of the reform efforts has undergone significant changes. On the one hand, the EU has been facing an economic crisis, which has had a negative impact on Moldovan exports and contributed to the worsening of the economic situation in the country; and on the other hand, Moldova has been offered membership of the Customs Union as a viable alternative to EU membership.

Tug-of-war over EU's policy towards its neighbours. OSW Commentary No. 49, 2011-03-09

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. Serious differences of opinion have emerged among the member states. The countries located in the southern part of the EU want Brussels to boost its policy towards North Africa, even at the expense of engagement in Eastern Europe and the Southern Caucasus. Meanwhile Central European countries, including Germany, favour a more balanced approach towards both directions. The future shape of the ENP, as well as the EU’s other foreign policy instruments, will have a strong impact on the approach the EU adopts towards its Eastern neighbourhood. If some of the proposals are realised, especially the southern member states’ request to transfer some of the funds from the Eastern to the Southern neighbourhood, the chances of meeting the Eastern Partnership goals, such as the association of the partner countries with the EU and the creation of deep and comprehensive free trade areas, could be reduced.

Derisory Results or Reasons to be Cheerful? Evaluating the Implantation of the European Neighbourhood Policy in Ukraine, Moldova and Belarus. Natolin Research Paper 01/January 2011

This paper considers the implementation of the European Neighbourhood Policy (ENP) in Ukraine, Moldova and Belarus. The paper presents a portrait of the three neighbours in terms of their current political and socio-economic profiles, as well as the status of their relations with the European Union. Subsequently, it provides an overview of the development of ENP. A general set of conclusions are offered in relation to the key issue of good governance, where, the paper argues, ENP has delivered derisory results, with patchy effects across the region. Moreover, the paper identifies the democratic back-sliding in Ukraine and entenched authoritarianism in Belarus, which ENP has done very little to address. The EU’s willingness to provide better mobility options for ENP citizens to visit and work in the EU is a key test for the Eastern Partnership (EaP) in the coming year. This paper sees that whilst there are reasons to be cheerful here, with the EU’s recent offer of greater Visa Liberalisation for Ukraine and Moldova, there remains much to be done and in the meantime the EU remains a ‘Fortress Europe’. The paper concludes with a set of recommendations for ENP, which include the need to finally tackle corruption in the region, bring more differentiation into ENP, soften the EU’s borders through more generous Visa regimes, develop a more robust Belarus strategy and to think more creatively about the use of ENP funds for regional and cross- border activities.

Bringing South Caucasus Closer to Europe: Achievements and Challenges in ENP Implantation. Natolin Research Paper 03/March 2011

While the initial Commission Communication on Wider Europe (March 2003) did not include Armenia, Georgia and Azerbaijan in the forthcoming policy for the EU’s new neighbourhood, the Southern Caucasus region has now gained considerable attention in the framework of the ENP and beyond, not least because of security considerations. The ENP undoubtedly represents a step forward in the EU’s policy towards Armenia, Azerbaijan and Georgia, yet its implementation highlights major differences between the three countries and important weaknesses in all three of them. The Eastern Partnership addresses some of these weaknesses and it also significantly strengthens the EU’s offer to South Caucasus countries, which is now fully in line with the perspectives proposed to the Western NIS. The paper highlights five main conclusions and recommendations: • Political, economic, social and diplomatic developments in the South Caucasus in the 2000's highlight both diverging trends and the persistence of tensions between the three countries. They also have different aspirations vis-à-vis the EU and different records in ENP implementation. The EU should therefore mainly rely upon an individual approach towards each country. • While bilateral relations should form the basis of the EU's approach, most of the challenges faced by Georgia, Armenia and Azerbaijan are not confined to national borders and require regional solutions. This applies primarily, but not exclusively, to the unresolved conflicts. The EU should promote targeted regional cooperation including, inter alia, confidence-building measures to address indirectly the protracted conflicts and measures supporting drivers of change, which play a critical role in the confidence-building process; • Under the ENP, especially since the opening of negotiations for association agreements and with the perspective of DCFTA, trade-related issues, market and regulatory reform have become prominent in the EU's relations with all three Caucasus countries. At the same time, the priorities identified when the ENP was launched, i.e. good governance and the rule of law, still correspond to major challenges in the South Caucasus. The EU should more clearly prioritise good governance and the rule of law as the basis of both the ENP and successful reforms; • In all partner countries (but even more so in the South Caucasus), ENP implementation has been adversely affected by poor administrative capacities and weak institutional coordination. The EU should increasingly focus on institutional reform/capacity building in its support to partner countries and ensure that the link between the ENP and domestic reform processes is strengthened; • In the South Caucasus the EU has recently concentrated on a few assistance tools such as budget support, Twinning and TAIEX. While these instruments undoubtedly bring an added value, they should be better combined with tools allowing for greater flexibility and targeting non-governmental actors, e.g. EIDHR/NSA.

Russia and its Near Neighborhood: Competition and Conflict within the EU. Natolin Research Paper 04/May 2011

Russia in 2004 politely rejected the offer to become a participant in the European Neighbourhood Policy, preferring instead to pursue bilateral relations with the EU under the heading of ‘strategic partnership’. Five years later, its officials first reacted with concern to the ENP’s eastern dimension, the Eastern Partnership initiative. Quickly, however, having become convinced that the project would not amount to much, their concern gave way to indifference and derision. Furthermore, Russian representatives have failed to support idealistic or romantic notions of commonality in the area between Russia and the EU, shunned the terminology of ‘common European neighbourhood’ and replaced it in EU-Russian documents with the bland reference to ‘regions adjacent to the EU and Russian borders’. Internally, the term of the ‘near abroad’ was the official designation of the area in the Yeltsin era, and unofficially it is still in use today. As the terminological contortions suggest, Moscow officials consider the EU’s eastern neighbours as part of a Russian sphere of influence and interest. Assurances to the contrary notwithstanding, they look at the EU-Russia relationship as a ‘zero-sum game’ in which the gain of one party is the loss of the other. EU attempts to persuade the Russian power elite to regard cooperation in the common neighbourhood not as a competitive game but providing ‘win-win’ opportunities have been to no avail. In fact, conceptual approaches and practical policies conducted vis-à-vis the three Western CIS countries (Belarus, Ukraine and Moldova) and the southern Caucasus (Georgia, Armenia and Azerbaijan) confirm that, from Moscow’s perspective, processes of democratisation, liberalisation and integration with Western institutions in that region are contrary to Russian interests. In each and every case, therefore, the area’s ‘frozen conflicts’ have not been regarded by the Kremlin as an opportunity to promote stability and prosperity in the countries concerned but as an instrument to prevent European choices in their domestic and foreign policy. The current ‘reset’ in Russia’s relations with the United States and the ‘modernisation partnership’ with the EU have as yet failed to produce an impact on Russia’s policies in ‘its’ neighbourhood. The EU is nevertheless well advised to maintain its course of attempting to engage that country constructively, including in the common neighbourhood. However, its leverage is small. For any reorientation to occur in Moscow towards perceptions and policies of mutual benefit in the region, much would depend on Russia’s internal development.

A Strong Europe in a Globalized World: From the Hungarian to the Polish presidency of the Council of the European Union. ACES Working Papers, 2011

On June 17, 2011, the Center for Transatlantic Relations – together with the Center for European Policy Analysis, the Polish Institute of International Affairs in Warsaw, and the Embassies of Hungary and Poland – hosted authors writing on the theme “A Strong Europe in a Globalized World,” and who offered in-depth, substantive reflections about how the United States and Europe can work together more closely in meeting global challenges. Drawing on the agendas of the outgoing and incoming EU Presidencies of the Council of the European Union – Hungary and Poland respectively – authors focused on the importance of a strong US-EU partnership in the face of mounting global challenges, from the current financial and economic crisis through the insecurities of energy markets and the promise of the Arab Spring. Authors explored in depth four key areas of shared interests: A Global Perspective (Transatlantic Partnership in a Globalized World); Achievements and Deliverables of Eastern Partnership; Euro-Atlantic Perspectives for the Balkans; and Common Challenges of Energy Security. Senior Hungarian and Polish government officials, subject matter experts, private sector actors, and think tank scholars participated.

Greece back on centre stage: the results of a déjà vu summit. EPC Post-Summit Analysis, 23 March 2015

The March 2015 European Council might not enter history books, but the outcome of an informal ‘mini summit’ between seven EU leaders has the potential to prepare the grounds for a breakthrough in the negotiations between Athens and its lenders. In this post-summit analysis, Janis A. Emmanouilidis argues that the search for a compromise promises to be a cumbersome, time-consuming and nerveracking exercise. But a solution now seems possible, proving all those doomsayers who have been predicting a ‘Grexit’ or ‘Graccident’ wrong. On other topics, EU leaders committed their countries to build an Energy Union, although questions remain about whether member states will agree to cede sovereignty on a number of significant points. This analysis looks also at the economic issues dealt with at the Spring Summit, with a focus on the perspectives for the European Semester and the Juncker Investment Plan. It ends with a summary of decisions taken on a number of other topics, including relations with Russia and Ukraine, the upcoming Eastern Partnership summit, developments in Libya and in Tunisia, and the endorsement of the Council’s new Secretary General.

The South Caucasus - Between integration and fragmentation

The South Caucasus is situated at the intersection of Eurasia’s major transport and energy corridors, making it an important geostrategic region. Traditional regional actors Iran, Turkey and Russia have jostled for influence and power in the region for centuries, and are now faced with competition from the EU, China, the US and NATO. Although Armenia, Azerbaijan and Georgia have been independent for more than two decades, they still continue to feel the sway, and sometimes threat, of external actors. As a response, the three South Caucasus states have chosen very different geostrategic paths since the collapse of the Soviet Union, leaving the region more fragmented and volatile than ever. In this book, various authors offer a deep and broad understanding of the developments in the South Caucasus, analyse the different foreign trajectories that each of the three state is following, and highlight the impact of external actors’ policies.

Paper Tiger or Game-Changer? Challenges of and Opportunities for EU Engagement with the Eurasian Economic Union. Bruges Regional Integration & Global Governance Papers (BRIGG) 1/2015.

The Eurasian Economic Union (EEU) started work on 1 January 2015. Considered as Russia’s response to the EU’s Eastern Partnership (EaP), it has been almost ignored in Brussels. However, with the Ukraine crisis and the deteriorating relations with Moscow, some European leaders have begun to reconsider Putin’s proposal for a region-to-region engagement. This paper tries to analyse under which conditions this could represent a long-term solution for a new European order. First, it is argued that the EEU is still far from being a credible international interlocutor. Second, Russia’s commitment to international trade rules and liberalization is questioned, whereas its geopolitical objectives seem predominant. EU engagement with the EEU in Ukraine would mean, in the short term, legitimizing Russia’s vision of a ‘bipolar Europe’ divided in spheres of influence. In the long run, prospects for inter-regional cooperation remain open, but the way to go is long and full of obstacles.

The Limited Influence of the European Union in Armenia and Azerbaijan: A Domestic Explanation. EU Diplomacy Paper 9/2015

This paper seeks to explain why the European Union (EU) has had limited influence in Armenia and Azerbaijan in the framework of the European Neighbourhood Policy (ENP). Combining approaches from external governance, norm diffusion and structural foreign policy, it offers an explanation based on domestic factors in the two countries: the political regime, state capacity, political structures, domestic incentives and the perceived legitimacy of EU rules. Although willingness to reform appears to exist in Armenia, such willingness remains constrained by the country’s vulnerable geopolitical location and high dependence on Russia. By contrast, none of the domestic preconditions for EU influence identified by the analytical framework were found in Azerbaijan. The author argues that the Eastern Partnership has not properly addressed the extent to which the clan structures feed into informal political practices and enforce the sustainability of an existing regime in both countries, and that, in addition, the EU has underestimated the multipolar environment which the two countries have to operate in, making it unlikely that the current policy can reach its objectives in Armenia and Azerbaijan.