Patriarch Kirill's game over Ukraine. OSW Commentary No. 144, 14.08.2014

The protests on Kyiv’s Maidan which commenced in November 2013, followed by the conflict in Ukraine’s eastern regions, have redefined the political and social relations between Russia and Ukraine, and have added complexity to the dependences between the Orthodox Churches operating in the two countries. The Kremlin’s policy has put the Russian Orthodox Church–Moscow Patriarchate (ROC) in an awkward position. The ROC is Russia’s largest religious organisation, which also exercises symbolic sovereignty over Ukraine’s most numerous Orthodox community, the Ukrainian Orthodox Church–Moscow Patriarchate (UOC–MP), which since 13 August has had a new leader, Metropolitan Onufry. The head of the ROC, the Patriarch of Moscow and All-Russia, Kirill, has been facing a dilemma as to how he should respond to the Russian government’s aggressive policy towards Ukraine. His firm support of the Kremlin’s moves in Ukraine, may lose the Russian Church its social influence in this country. This might also catalyse a process within which Ukraine’s largest Orthodox Church would gradually become independent of Moscow. On the other hand, if he condemns the Kremlin’s policy, this would adversely affect the co-operation between ‘the altar and the throne’ which has been rapidly developing over the past few years in Russia, and which has offered multiple benefits to the Russian Church. As a result, Patriarch Kirill has distanced the ROC from the recent developments in Ukraine and has adopted a neutral stance. However, Kirill’s choice has aggravated the negative perception of the ROC among the Orthodox community in Ukraine. Given its close relations with the Kremlin, the ROC is increasingly viewed there as an instrument of political struggle and an exponent of the Russian government’s interests. The ROC’s stance has cast the UOC–MP, which has links with the Russian Church, in an unfavourable light, and has fostered its efforts to become more independent from the Moscow Patriarchate. Regardless of how the situation evolves, the recent developments in Ukraine have made it clear that the interests of the Russian Church and the Kremlin, which have coincided for years, now come into conflict, mainly due to the disagreement over the methods used. Despite this, the Russian Church is not withdrawing from the cooperation of ‘the altar and the throne’, and submits itself to the Kremlin’s decisions.

Norway and the Bear. Norwegian defence policy- lessons for the Baltic Sea region. OSW Point of View Number 38, January 2014

Norway is currently the only Western European state and ‘old’ NATO member that strongly relies on the traditional dimension of NATO's collective defence. It is also the only ally in Western Europe which perceives Russia as a threat to its military security, in the so-called High North. In order to successfully deal with the potential challenges and threats in the region, Norway has been pursuing a defence policy based on cooperation and deterrence. Cooperation means improving collaboration with Russia in cross-border relations, in the petroleum sector and in the military sphere. The deterrent measures include maintaining NATO’s credibility as a collective defence alliance; increasing military cooperation with the United States; building up Norway’s own military capabilities; and developing military cooperation across Northern Europe. The primary objective of Oslo’s defence policy is to minimise the likelihood of crises and conflicts emerging in the High North which could prove too ‘big’ for Norway but too ‘small’ for NATO.

Big business in Belarus - its genesis, conditions and prospects. OSW Commentary No. 113, 2013-09-09

Over the past ten to twenty years, Belarus has seen a steep rise in the number of local dollar millionaires. This has somewhat undermined the myth of an egalitarian model of society promoted through the Belarusian state propaganda. There is a small group of businessmen among the top earners who, in exchange for their political loyalty and their consent to share profits with those in power, have enjoyed a number of privileges that allow them to safely conduct business in an environment typically hostile to private enterprise. The favourable conditions under which they are operating have enabled them not only to accumulate substantial capital, but also to invest it abroad. However, since such businesses are seen as providing a financial safety net for the regime, in 2011 and 2012 some of their directors received an EU travel ban, while their companies were subjected to economic sanctions by Brussels. At the same time, fearing that Belarus’s big business could become powerful enough to influence the country’s political scene (as has been the case in Russia and Ukraine), Alexander Lukashenka has actively prevented such players from becoming too independent. Consequently, Belarus has so far not developed its own elite class of oligarchs who would be able to actively influence government policy. The current informal agreement between the government in Minsk and big business has proved stable and is unlikely to change in the near future. Nonetheless, a reordering of state power giving Belarus’s big business significant political influence would be possible should Mr Lukashenka lose power in the next presidential election.

Gazprom’s expansion in the EU: co-operation or domination? OSW Report, October 2009. Second edition, revised

Introduction. The energy sector, especially with regard to the gas trade, is one of the key areas of co-operation between the EU and Russia. However, the form this co-operation has taken has been giving rise to some concern, both in Brussels and in the EU member states. Questions arise as to whether the EU has not become excessively dependent on Russia for energy, and whether the presence of the Russian gas monopoly in the EU does not enable Russian interference with the development of EU energy policy. The objective of this series of OSW reports (for the previous edition,see Gazprom’s expansion in the EU: co-operation or domination? April 2008 – pdf 1.2 MB) is to provide facts which will permit an accurat answer to these questions to be formulated. Over the course of last year, two new factors strongly affected Gazprom’s capability to operate on the EU market. One was the ongoing global economic crisis, which has depressed demand for gas both in Russia and in Europe. Gazprom has cut both its own production and the quantities of gas it purchases from the Central Asian states, and the decrease in export revenues has forced the company to modify some of its current investment plans. Less demand for gas and the need to reduce production are also having a positive impact – the Russian company is likely to avoid the difficulties in meeting all of its export commitments which, only a year or so ago, it was expected to experience. The other factor affecting Gazprom’s expansion in Europe is the observed radicalisation of the rhetoric and actions of both the company itself and of the Russian authorities with regard to the gas sector as broadly understood. The gas crisis between Russia and Ukraine in January 2009, which resulted in a two-week interruption of gas supplies from Russia to Europe via Ukraine, was the most prominent example of this radicalisation. The hardening of rhetoric in the ongoing energy talks with the EU and other actors, and increased political and business activities designed to promote Russian gas interests in Europe, in particular the lobbying for the Nord Stream and South Stream projects, are further signs of this shift in tone. These issues raise the question of whether, and to what extent, the current condition of Gazprom’s finance will permit the company to implement the infrastructural projects it has been endorsing and its other investment plans in Europe. Another important question is whether the currently observed changes in how Gazprom operates will take on a more permanent character, and what consequences this will have for the European Union. The first part of this report discusses Gazprom’s production and export potential. The second comprehensively presents the scope and nature of Gazprom’s economic presence in the EU member states. Finally, the third part presents the Russian company’s methods of operation on foreign markets. The data presented in the report come mainly from the statistics of the International Energy Agency, the European Commission and Gazprom, as well as the Central Bank of Russia and the Russian Statistical Office. The figures presented here also include proprietary calculations by the OSW based on figures disclosed by energy companies and reports by professional press and news agencies.

Belarus 2006. OSW Report, January 2007

The presidential election of 19 March 2006, which Alyaksandr Lukashenka won, played an important role in developing the dictatorial political regime in Belarus. In order to ensure Lukashenka's victory, the authorities employed repressive and undemocratic methods, which since then have become permanent elements of the political system in Belarus. They included legal and administrative measures to limit the citizens' freedom, arbitrary ways of applying these measures, actions by the state security institutions intended to intimidate the public, a large-scale state propaganda campaign, and restrictions on civil liberties and freedom of speech. The presidential election strengthened Alyaksandr Lukashenka's political position, as the president extended his rule by another five years to 2011. It also reinforced the repression apparatus, consolidated the ruling group and ensured that the democrats remained marginalised. This has ensured the stability of the Belarusian regime and preserved the country's specific political and economic system.This report aims to present the situation in Belarus since the presidential election in March 2006. Part I, devoted to the internal situation, is a description of the internal political scene, i.e. the ruling camp and the opposition. It also includes a section on the prevailing moods in Belarusian society. Another section presents the economic situation in Belarus and the government's economic policy.Part II examines the foreign relations of Belarus, and consists of two sections: the first describes the Belarusian government's relations with Russia, its single most important foreign partner, and the second its relations with Western countries, i.e. the EU member states and NATO countries. Finally, the last part contains predictions of future developments in Belarus.

Russian gas industry - current condition and prospects; New regional 'in-security' system in Central Asia; Caspian oil and gas: the facts at the end of the year 2000. OSW Study 1/2001

Russian gas industry: The current condition of the gas industry is one of the most crucial factors influencing the Russian state·s functioning, internal situation and international position. Not only is gas the principal energy resource in Russia, it also subsidises other sectors of the economy. Status of the main European gas exporter strengthens also Russia's importance in the international arena. New regional in-security: Ten years have passed since the Central Asian states declared their independence, but their relationship with Russia still remains close, and the latter treats them as its exclusive zone of influence. A crucial reason for keeping Central Asia within the orbit of Moscow·s influence is the fact that Russia exercises control over the most important transport routes out of the region of raw materials for the power industry, on which the economic development of Asia depends on. But this is the only manifestation of Central Asia·s economic dependence on Russia. Moscow lacks solid economic instruments (i.e. investment input or power industry dependence) to shape the situation in the region. Caspian oil and gas: Caspian stocks of energy resources are not, and most probably will not be, of any great significance on the world scale. Nevertheless it is the Caspian region which will have the opportunity to become an oil exporter which will reduce the dependence of the European countries on Arabian oil, and which will guarantee Russia the quantities of gas which are indispensable both for meeting its internal demands and for maintaining its current level of export. For Azerbaijan, Kazakhstan and Turkmenistan, the confirmation of the existence of successive oil strata is not only an opportunity to increase income, but also an additional bargaining chip in the game for the future of the whole region. The stake in this game is the opportunity to limit the economic, and by extension the political influences of Russia in the region.

Big business in the Russian economy and politics under Putin's rule; The Russian power industry shortly before reforms; Ukrainian metallurgy: the economic link in the oligarchical system. OSW Study 5/2002

Big business in Russia: The pace of ownership transfer in the Russian economy has speeded up considerably over the last year. There has been a significant rise in the number of acquisitions of whole enterprises, and large blocks of shares in individual firms and plants. Similarly the number of mergers, bankruptcies and take-overs of failing firms by their strongest competitors has grown. The Russian power industry: This study is an overview of the current condition and principles on which the Russian power sector has been functioning so far. This analysis has been carried out against the background of the changes that have been taking place in the sector since the beginning of the 1990s. This text also contains a description of guidelines and progress made so far in implementing the reform of the Russian power industry, the draft of which was adopted by the government of the Russian Federation in summer 2001. However, the purpose of this study is not an economic analysis of the draft, but an attempt to present the political conditions and possible consequences of the transformations carried out in the Russian power sector. The final part attempts to evaluate the possibilities and threats related to the implementation of the reform in its present shape. Ukrainian metallurgy: The metallurgic sector, like the east-west transit of energy raw materials, is a strategic source of revenue for Ukraine. Over the last ten years, this sector has become Kiev's most important source of foreign currency inflows, accounting for over 40 per cent of its total export revenues. The growth of metallurgic production, which has continued almost without interruption since the mid-1990s, has contributed considerably to the increase in GDP which Ukraine showed in 2000, for the first time in its independent history.

Ukraine - Romania: a sustained deadlock. OSW Commentary No. 68, 2011-12-29

The decision passed by the International Court of Justice in The Hague in February 2009, which finally determined the status of the Snake Island and the delimitation of the borders of Ukraine’s and Romania’s exclusive economic zones on the Black Sea’s continental shelf removed the major dispute from the agenda of relations between the two countries but it failed to reduce their mutual distrust. The sources of this distrust include the difficult history of Ukrainian-Romanian relations in the 20th century which is still adversely affecting political and economic co-operation between these two countries and preventing them from being free from resentments. Romania is the only EU member state and neighbour with which Ukraine has strained relations, which have been seriously deadlocked for years. There are a few political and economic reasons for this. Bucharest’s actions taken with regard to the Romanian and Moldovan national minorities in Ukraine are interpreted in Kyiv as a threat to Ukraine’s national security, and Romania’s political and economic activity in the Black Sea basin is perceived as contrary to Ukrainian interests in this region. In effect, although Romania supports Ukraine’s efforts to build closer relations with the Western structures in the international arena, it cannot be ruled out that Romania’s support will depend on the resolution of bilateral disputes in a way which is favourable to Romania.

Turbulence ahead: disputes within the Russian ruling elite are gathering force. OSW Commentary No. 91, 2012-09-27

The last month has seen a public confrontation between Igor Sechin, the president of Rosneft, and Arkady Dvorkovich, the deputy prime minister, concerning the consolidation of the energy sector. This is the latest in a series of disputes between the Kremlin & businessmen from Putin’s inner circle on one side, and the government & Prime Minister Medvedev on the other. These disputes have been wide-ranging in nature, concerning economic policy, the scope of competency of individual members of the elite, but also the ‘tough line’ adopted by the Kremlin since Vladimir Putin’s return to the presidency. The Kremlin, which is still the main decision-making centre in Russia, has been effectively forcing its opinions through in its short-term disputes with the government. However, a new element in the ongoing conflicts, which is unfavourable to President Putin, is their exceptional strength, their much more public nature, and their wide range (which has included criticism of the president himself) and ever-changing context, especially the worsening socio-economic situation. These conflicts have been overlapping with signs of dissent among Putin’s business supporters, and their declining political willingness to support the leader unconditionally. The Kremlin’s response to the unrest consists of intensifying efforts to discipline the elite and weakening those groups in which Vladimir Putin has limited confidence. The elite’s support is crucial to the stability of his government; to maintain this support, the Kremlin is ready to introduce restrictive and repressive actions against both parliamentarians and government officials. In the short term, such a policy will force the Kremlin’s supporters back into obedience, but fears of a further increase in repression are also starting to be expressed on the sidelines.

Supporting the Revolution: America, Democracy, and the End of the Cold War in Poland, 1981-1989. ACES Working Paper (Report) No. 8, 2007

Early on the morning of December 13, 1981, General Wojciech Jaruzelski, the leader of the communist Polish United Workers' Party (PZPR), declared martial law, ending the so-called "Polish Crisis," which began with the creation of the Independent Free Trade Union "Solidamosc" in August 1980. Over the next eight years, the Communist government and the opposition struggled over power, culminating in 1989 with the creation of a Solidamosc-led government which ended fifty years of Communist rule in Poland and led the way to further democratic revolutions throughout Eastern Europe. The purpose of this dissertation is to utilize newly available and underutilized archival sources as well as oral history interviews, from both international and American perspectives, to fully chronicle American policy toward Poland from the declaration of martial law until the creation of the Solidarnosc government. Rather than explaining Polish-American relations in bilateral terms, the dissertation illuminates the complex web of influences that determined American policy in Washington and affected its implementation within Poland. This includes descriptions of internal tensions within the Reagan administration, differences between American decisions in Washington and implementation in Warsaw, lobbying from Polish-American groups, clashes between Capitol Hill and the White House, coordination with American labor organizations to support Solidarnosc, disagreements with West European allies in NATO and international financial organizations, cooperation with the Vatican and the Polish Catholic Church, synchronization with American humanitarian organizations working in Poland, limitations caused by the realities of Soviet power in Eastern Europe, and complications caused by domestic Polish concerns. By taking a broad view of American policy and highlighting internal Polish decisions, with both the Communist government and the democratic opposition, the dissertation provides concrete examples of America's role in Poland's transformation, arguing, however, that this role was very limited. These conclusions are relevant to arguments about the end of the Cold War, the nature of American power, as well as current discussions about possibilities to promote democracy within hostile regimes.

Russian nationalists on the Kremlin’s policy in Ukraine. OSW Commentary No. 156|24.12.2014

On the Day of National Unity, celebrated in Russia every 4 November, members of nationalist movements organise a so-called Russian March in Moscow. In 2014 the nationalists took part in three competing marches, which illustrated the divisions present in these circles. The reason for these divisions is a difference of opinions on the policy pursued by Russia towards Ukraine. The pro-Russian, Russia-inspired protests in south-eastern Ukraine organised under the slogan of ‘defending’ the Russians living there (the ‘Russian Spring’) and the annexation of Crimea were received enthusiastically by the nationalists and contributed to a consolidation of these circles around the Kremlin which lasted for several months. In spite of this, opinions on the Russian government’s current policy towards the so-called Donetsk and Lugansk People’s Republics have been varied. The most radical groups have demanded that military support be offered, and that the ‘confederation’ of these republics, the so-called ‘Novorossiya’, should be officially recognised. They consider the Kremlin’s policy to have been too soft, and see the signing of the peace agreements in Minsk as a betrayal of the interests of the Russians. For the remaining representatives of nationalist circles, who are not so numerous and are less visible in the public sphere, finding a solution for Russia’s domestic problems remains a priority. Some of them oppose the very notion of Russia’s involvement in the conflict. Since the beginning of the ‘Russian Spring’, the Kremlin has fostered active attitudes among the nationalists and solicited their support, hoping to win a valuable ally. This has boosted hopes in these circles that their political position may be strengthened. The involvement in the fighting in Ukraine has led to a radicalisation of attitudes among the nationalists, and demonstrated that this group is ideologically motivated and has considerable potential for mobilisation. Moreover, the ‘Great Russian’ and anti-Western slogans some of them have propagated are reflected in views displayed by average Russians, who have been influenced by the patriotic enthusiasm which followed the annexation of Crimea. Due to all this, from among all the actors active on the opposition side, it is the nationalists – and not the representatives of the liberal and pro-Western opposition – that have the best prospects for access to the political stage in Russia. It cannot be ruled out that a further strengthening of the radical groups might also be boosted by the possible growing social frustration caused by the economic crisis, which additionally increases the risk of political destabilisation.

Linking Policy and Practice:The Case of EU-UNICEF Cooperation on the Rights of the Child in Third Countries. IES WORKING PAPER 4/2013

This Working Paper offers detailed analysis of EU-UNICEF cooperation on the rights of the child in the European Union's external relations, in particular as regards linkages between the EU policy priorities and concrete actions to advance the protection and promotion of child rights in third countries. It addresses a number of crucial questions: how has the EU’s external policy on the rights of the child developed over the past decade, what were these developments influenced by and what role did UNICEF play in these processes; what is the legal and policy framework for EU-UNICEF cooperation in foreign policy and what added-value it brings; what mechanisms are used by the EU and UNICEF to improve child rights protection in third countries and what are the motivations behind their field cooperation. The study starts by examining the development of the EU’s foreign policy on the rights of the child and covers the legal basis enshrined in EU treaties, the policy framework, and the implementation instruments and then investigates the evolution of the EU’s relations with the United Nations. The paper focuses on the EU’s cooperation with UNICEF by looking into the legal and political framework for EU-UNICEF relations, the policy-oriented cooperation and joint implementation of projects on the ground in third countries. This section outlines the rationale behind the practical cooperation as well as the factors for success and obstacles hindering the delivery of sustainable results. Finally, the Working Paper concludes with suggestions on how EU-UNICEF cooperation could be further enhanced following recent developments, namely the 2012 EU Strategic Framework and the Action Plan on Human Rights as well as human rights country strategies.

Energising the TTIP: Political economy of the trade policy rationale. Paper No. 9 in the CEPS-CTR project “TTIP in the Balance’’and CEPS Special Report No. 113/July 2015

Despite accounting for a significant share of global trade and the resulting interdependencies from it, energy governance remains largely fragmented and there is no global framework or agreement defining the rules of energy trade. This paper, after presenting the main global and regional energy market developments, discusses the opportunities to ‘energise the TTIP’, i.e. to include a chapter dedicated to trade and cooperation in the sphere of energy. The shale revolution in the US, the ever-rising interconnectedness of energy markets (recently proven by the disappearance of the ‘Asian gas premium’) and the EU’s quest to diversify its energy supplies generally sets favourable conditions to reinforce energy relations between the EU and the US. The question, as is often the case, is whether there is sufficient political will to tighten relations in a strategic sphere with connotations for national security and sovereignty.

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.

Tomorrow's silk road: Assessing an EU-China Free Trade Agreement.

Foreword. The Foreign Trade Association, which represents the European and international distribution and retail sector, commissioned this study in light of the importance of China as a sourcing country and its attractiveness as a rapidly growing consumer market. We believe that open borders and free trade can contribute to a broader choice and lower costs for consumers and create growth and employment in both Europe and China. This independent study aims to provide an in-depth contribution on the status of bilateral economic exchanges and persistent trade barriers that exist between the European Union and China. The second objective of the report is to encourage a frank and open dialogue, based on a scientific evaluation and without prejudice, on the possibility of a preferential trade agreement between the two sides. This study should be read by anyone who is interested in economic relations between the EU and China and in trade policy in general. The report provides many interesting findings and raises a number of surprising points. Overall, this study is one of the most significant contributions to the discourse on EU-China relations in recent years. We hope that this study will stimulate fresh thoughts on the benefits of closer future cooperation between two regions that have been interlinked since the times of antiquity and the first Silk Road.