THE BRETON/GEROL NEWSLETTER
TRUMP: A BULL IN A CHINA SHOP
In less
than a year Donald Trump has managed to damage US relations with allies and
partners on the international scene: Mexico and Canada have been forced to
demonstrate incredible fits of political creativity just to keep NAFTA afloat, the
EU is strongly opposing the White House attempts to undermine the delicate deal
6 countries and the EU signed with Iran under President Obama and the continuing
deterioration of relations with Russia practically resurrected the Cold War
between Washington and Moscow.
In many
ways this conflict-ridden approach extends inward, into the heart of American
political life. There are strong indications that State Secretary Rex Tillerson
is about to resign or be fired. His recent denials only confirmed those
suspicions. One of the candidates to replace him is Nikki Haley the current
American Ambassador to the UN. She is not
known for a nuanced approach and that may increase her chances of being picked
for the job by Trump. More troubling is an assumption expressed several times
already by The Washington Post and New York Times that the departure of
Tillerson could be followed by resignations of other key members of Trump's
cabinet like Secretary of Defense James Mattis, General Kelly and others. If
that is to happen the replacements could easily bring about lesser caliber
politicians without any serious influence on the President.
In such an
unstable and unpredictable situation it becomes infinitely more difficult to
tackle such urgent and complex matters as the Korean crisis, US-Russian
discord, the Middle Eastern quagmire and delicate relations with China.
--o--
RUSSIAN
ELECTIONS: "WE HAVE OUR OWN HILLARY"
Facebook Profile |
Many in
Russia however believe that Sobchak's wild card entry had been designed to sideline
the uncompromising Navalny. One thing is for sure:elections in Russia will be
more entertaining than previously imagined. Also, no one on the other hand
should doubt that Putin will be re-elected again.
--o--
UKRAINE, MISHA THE MESSIAH?
The main
event of the last few weeks is the return of Mikheil Saakashvili to Ukraine
and, after his tour of major cities, the launch of a protest action in
proximity to the Rada (Parliament) building in Kyiv.
Saakashvili, with two supporters, in front of his tent by the Rada building, October 29th Facebook posting |
In his bid
to consolidate opposition forces, Saakashvili has gathered support from some political
parties across the spectrum and from some local leaders. His speeches and
protest actions are well-attended, but it would be exaggerated to refer to
massive support in the population. Saakashvili initially focussed his demands
on three elements: the establishment of anti-corruption courts, canceling
parliamentarians’ immunity from prosecution and adopting a new electoral law
that would decrease the influence of oligarchs on elections. He now tends to
insist more broadly on a post President Poroshenko, post-oligarchic Ukraine. He
is in regular conflict with the Prosecutor General, but there is no sign that
the authorities would go as far to deport him, as they have done with some of
his Georgian associates.
According
to one of the latest public opinion polls, Saakashvili’s personal rating in
Ukraine is below 2%. The revocation of his Ukrainian citizenship by President
Poroshenko has re-energized him and brought him back into the limelight, but
has not made him a unifying widely popular figure. In the midst of this
Saakashvili diversion, Ukrainians are left to look elsewhere for new, more
credible political leadership. At present, there is, however, no strong
home-grown political leader in sight. Former Prime Minister Tymoshenko, the
main opponent and first declared presidential candidate for 2018, seems stuck
at around 8%. Poroshenko may have moved above the 10% rating, but seems
unlikely to move up any further.
In a
context where national political figures are not in a position to lead new
initiatives, the good news is that some regional governments have taken
advantage of the additional budgetary resources made available to them through the
recent decentralization process. This has resulted, in some instances, in more
effective local governance and more significant investments in local
infrastructure projects. These are positive developments that could have a
beneficial long-term effect. In the meantime, they could, however, diminish the
interest in the search for a renewed national leadership and channel political
activism to the regional level. Irredentism exists in some regions other than
the Donbass, but is not yet a major issue. This is not a Catalonia-like
situation.
At this
stage, it is unclear what will be the outcome of Saakashvili’s political
efforts and, with less than a year before the next presidential election, what
President Poroshenko can reasonably expect to do other than to complete his
mandate and perhaps make it to the second round of the presidential ballot in a
crowded field of weak candidates. In the current context, one could see the
next President of Ukraine elected “by default”, in the absence of a strong
popular contender. Oligarchs who traditionally have heavily influenced national
politics may not necessarily have a problem with a president with a weak popular
mandate and without strong parliamentary support.
--o--
25 WASTED YEARS: WHO IS TO BLAME?
President Putin in Sochi, October 19th President of Russia Website |
In the
speech he delivered in Sochi on October 19th,.Vladimir Putin describes the past
25 years this way: “Two and a half decades gone to waste, a lot of missed
opportunities, and a heavy burden of mutual distrust.” As could be expected, the speech received
mixed reviews, with some commentators even choosing to focus on a sidebar, one
of Putin’s answers in which he remarked on the need to “show respect for the
legally-elected US President, even if you disagree with him”.
As part of
its negative take, the speech contains many recriminations against the US and,
as such, may turn off Western audiences. Beyond the recriminations, the speech
contains a few interesting observations that are useful in understanding why we
are now back in a cold war situation. Some observations also need the
occasional additional explanation.
One could
simply say that we have a new Cold War because there are now fundamental
disagreements between Washington and Moscow. Disagreements are unavoidable. The
deterioration of relations we now observe might have been avoided.
In one of
his answers Putin said: “Our most serious mistake in relations with the West is
that we trusted you too much. And your mistake is that you took that trust as
weakness and abused it.” The first part of the quote about “too much trust”
essentially refers to the decade from the end of the Soviet Union to the
bombing of Belgrade by NATO in 1999. The negative perception of that period was
re-emphasised by Putin’s sharp criticism of then Russian Foreign Minister
Kozyrev whom he described as “having a cranium, but no head”.
Putin
mentions specifically the bombing of Belgrade. What is not explained is the
extent to which that bombing was a turning point in the minds of the Russian
leaders. The justification for the action is not the issue. This is when
Russians realized for the first time that they trusted the West too much. Even independent-minded
Solzhenitsyn observed on this later on. The change in the Russian mindset has
not been reversed.
Putin also
makes a reference to NATO: “We were confronted with the redistribution of
spheres of influence and NATO expansion. Overconfidence invariably leads to
mistakes. The outcome was unfortunate. ”
In 2001 in
the aftermath of the 9/11 terror attack, the atmosphere was conducive to the
creation of the NATO-Russia Council. There was great hope that this would be
game changer: cooperation would eventually replace confrontation. In fact, it
has changed virtually nothing. The tipping point that would have permanently
altered the NATO-Russia relationship was never reached. Inertia, the weight of NATO
as an institution and the perception of Russia as the enemy were simply too
great. Besides, for former Soviet Bloc countries, for which NATO accession had
been an existential matter, partnering with Russia seemed like giving up what
you just gained. Here also, in NATO circles, the mindset is still the same.
Putin also
mentions the invasion of Iraq, that happened without UN Security Council
approval as an occurrence of a split between East and West. He, however, does
not mention the Yukos, affair. It is not the jailing of Mikhail Khodorkovski
that matters so much here. The Yukos affair marks the failed attempt by Exxon to acquire a controlling interest in a
major Russian oil company, that was considered as one of the “jewels of the
Crown”. Russia did not agree with the invasion of Iraq and encountered some
economic losses as a result of the collapse of the Saddam regime. What matters
more that with the arrival of Putin in 2000 Russia began to take a more nationalistic
and statist economic policy and to defend its national interests more
aggressively. Putin’s Russia would not let the US take over what it considered
a strategic asset. The decision reportedly greatly upset the then Republican
leaders, Vice-President Cheney and former Senator Robert Dole. The disappointment over not
finding a compliant partner was going to reverse whatever positive trend may
have existed and affect durably the Washington outlook for years.
Georgia and
Ukraine were going to be difficult when a new generation of leadership would
take over and wish to address the future of the countries and their place in
the world. The context of competition rather than partnership having been
re-established, it would have taken miracles of preventive diplomacy for the
situation in Georgia (in 2008) and Ukraine (more visibly from 2014) not to have
led to a heightening of tension between the US and Russia.
Yet, it
would take a forthcoming Russian victory in the context of its military
involvement in Syria along with the allegation of meddling in US elections to
take us fully into the new Cold War.
There is
enough blame to distribute to everyone involved. The diagnosis in Putin’s
speech is unfortunately right, we have to contend with a heavy burden of mutual
distrust. Dialogue might be one way to alleviate the distrust. The problem is
compounded by the fact that the US president is not in position to engage
credibly in such a dialogue. European leaders have to take up the slack. As for
Canadian leadership, whereas it is right to focus on support for Ukraine, it
has not found it possible to engage in a meaningful dialogue.
--o--
GERMANY-RUSSIA: AN OCCASION TO CELEBRATE
President Steinmeier addressing the congregation St. Peter and St. Paul Cathedral, Moscow, October 25th Facebook posting |
The German President, though the most senior representative of the German State, is at times perceived an an honourary figure for his “above politics” ceremonial functions. Former Foreign Minister Steinmeier is, however, not just any President. As a political ally of Chancellor Merkel, his October 25th first visit to Moscow as President brings an additional dimension to the political dialogue between Germany and Russia. It also serves to underline the highly symbolic gesture of returning to the Evangelical Lutheran Church in Russia the full ownership of the St. Peter and St. Paul Cathedral. The symbolism is enhanced by the coincidence with Reformation’s 500th anniversary. Less symbolic, but no less important, is the fact that Germany-Russia bilateral trade, after declining by 11 percent in 2016, is up by 25 percent in January-July 2017. The inflow of direct investments from Germany has also increased: for the first quarter of 2017 alone they reached $312 million, by comparison to $225 million for the same period in 2016. So much for “tougher” sanctions.
President
Steinmeier remarks at the press conference after his meeting in the Kremlin are
worth quoting: “In any case, I am convinced that we need to overcome the
alienation that has set in between our countries in the past years. To do so,
it is necessary to continue our dialogue. There must be long-term attempts on
both sides to find solutions to overcoming crises.”
--o--
NORTH KOREA: LONG TREATMENT OR SURGERY?
"If Kim Jong-un suddenly dies don't ask me about", Mike Pompeo, the CIA Director said recently.
While it
could be interpreted as a CIA-style joke, it actually reflects two radically
opposing views on how to deal with the North Korean nuclear threat. President
Trump and some of his ardent supporters in the intelligence community, not the
military, believe that a massive attack on governmental, industrial and military
targets together with decapitating strikes against Kim and his inner circle in
party and state would win the day.
People like
Rex Tillerson, James Mattis are openly opting for a coordinated blockade of North
Korea by US, Japan and South Korea with Russia and China abstaining from active
opposition. This month's election in Japan brought Prime Minister Abe an absolute majority
that will allow him to transform the self-defence force into a modern and
powerful army. Japan wants to be more active in squeezing North Korea to
abandon its nuclear program. South Korea meanwhile still has to be convinced
that its strong desire to have some sort of dialogue with the North is nothing
but an illusion.
Less known
is the fact that North Korea is completing its own strategic plan to
survive a nuclear war. The regime announced the construction of 2,000 hermetic
shelters where maybe not the whole population but the elite could survive for
some time. Despite the obvious idiocy of that project it shows that Pyongyang
is determined to go ahead with its nuclear program. The fate of Saddam Hussein
and Qaddafi, who were forced to abandon their nuclear aspirations, has been
taken seriously by the North Korean regime.
Meanwhile
one can distinguish the appearance of some pro-North Korean sentiments in
Russia and China. If the solution to the crisis is not be found soon, the North
Korean issue will add to a long list of problems dividing East and West.
According
to Washington sources former US President Jimmy Carter (age 93) is planning to
visit North Korea to meet with Kim. This move offers little hope, but it is
still better than Pompeo's morbid sense of humor.
--o--
KING SALMAN
IN THE KREMLIN
King Salman
made history by becoming the first head of the House of Saud to visit Moscow. The
fact of this visit can be interpreted as a political achievement of Vladimir
Putin. This meeting confirmed Russia's return to the Middle East as a top
political actor. The outcome of the Syrian crisis proved to the Arab world that
they cannot be reliant solely on the United States. Considering that Riyadh
sees Iran as the existential threat, the Kingdom wants to weaken the alliance
between Russia and Iran. That is why King Salman agreed to rapidly increase
Saudi investments in the Russian infrastructure while inviting Moscow to
participate in several ambitious projects. Saudis also purchased the state of the
art Russia's air defense systems (S-400). From the Russian point of view the
historic visit by the King is another demonstration that Russia is not limiting
itself to a relative closeness with Iran and is ready to do business with many
regional powers. The Government-controlled Iranian press had an overall
negative take on the visit.
--o--
PERSON OF THEMONTH: XI JINPING
The
Congress of the Chinese Communist party has just concluded in Beijing. The
Congress re-elected Xi Jinping as the Secretary General of the Central
Committee of the Communist Party, that automatically makes him President of
People's Republic of China. This Congress could be considered a historic one as
it places Xi into a very exclusive pantheon of core leaders such as Mao Zedong
and Deng Xiaoping. Like for them, Xi's ideas have been enshrined in the Party
Constitution. To consolidate his power Xi replaced 5 of 7 members of the
Politburo, the Party's ruling areopagus. In addition he conducted an
unprecedented purge of the military command and regional party elite, using the
pretext of old age or corruption.
The
platform presented by Xi to the party Congress combined realism and ambition.
Xi's vision of the future of China incorporates two objectives: to make China
wealthy and an influential global power, as well as to carry on its own
development project that does not imitate Western models.
Xi
enthusiastically promotes Chinese experience and achievements in the developing
world. China has now become a leader of international investments: it carries
out various economic and infrastructural projects in over 90 countries (for
comparison US does it in 57).
It is more
likely than not that Xi Jinping will break with ongoing tradition limiting
leaders to only two terms in power. Also one could envision that under
President Xi China will eventually restore the global structure of a bipolar
world by becoming the second superpower.
--o--
BRIEFLY NOTED
RUSSIA
Sergei
Shoigu, Russia's Defense Minister announced the end of military operation in
Syria. Though it is not the first time similar announcements have been made by
Moscow, this time around it looks more plausible. President Assad, with the
help of Russian military (Air Force, Special Forces and advisers) restored
control of almost 70% of Syria while American-led coalition crushed IS in Raqqa
and the North East.
Unfortunately
this is not the end of the Syrian conflict. The country is being split into at
least two parts. One with the government in Damascus and another one in Raqqa
where the democratic opposition will attempt to form a new administration.
Both sides
will try to negotiate in the framework of Geneva and Astana formats.
Large-scale
military action by all sides in Syria had subsided drastically since the recent
downfall of ISIS. New hostilities are highly probable between newly formed
players. The presence and cooperation between such powerful military entities
like the US, Russia, Turkey and Israel may, however, lead the participants
towards a more peaceful resolution of this complex and violent conflict.
UZBEKISTAN
This
important Central Asian country started a period of financial, economic and
political liberalization. For the first time since Uzbekistan became an
independent state (in 1991) government allowed free currency exchange,
initiated broad programs of privatization and endorsed large-scale foreign
investments. One of Uzbekistan's main industries is cotton. The country is on
the path of massive mechanization and upgrading process in this area. The
government is looking for high-tech solutions and serious investments into this
industry.
Rustam
Halilov, financial analyst in Tashkent explains: "When Uzbekistan was part
of the USSR we manufactured Tupolev passenger jets now we want to re-start this
aviation-building industry. We need cooperation with Western companies and
investments. We also have more developed industries such as gold mining and gas
exploration that nevertheless need upgrading and infusion of high-tech
innovations that requires serious investments."
New
President Shavkat Mirziayev announced that 2018 will be officially declared
'Year of Investments" and that Uzbekistan will open its doors for
international business on an unprecedented scale.
ARMENIA-AZERBAIJAN
Armenia's
president Serzh Sargsyan and his Azerbaijani counterpart Ilham Aliyev met
recently in Geneva in an attempt to restore regularity of contacts aimed at
containing potentially explosive conflict between the two nations over the
Nagorno-Karabakh. This area, populated by ethnic Armenians, was part of the Azerbaijan republic during the decades of Soviet rule. In 1991, as the USSR
collapsed, and as the result of armed conflict between already sovereign
Azerbaijan and Armenia, the area of Nagorno-Karabakh, together with other
territories, was captured by Armenia. Throughout the years there were dozens of
armed clashed between two sides with hundreds of casualties. Every clash has a
real possibility of turning to a full scale war between two well-armed
adversaries. The meeting in Geneva is an attempt to de-escalate the
conflict to a manageable level.
KAZAKHSTAN-KYRGYZSTAN
All forms
of automobile traffic (commercial and not) has been frozen on both sides of the
border between the two neighboring countries. The reason for the gridlock is
political and personal. Newly elected Kyrgyzstan president Sooronbay Zhenbekov
had accused Nursultan Nazarbayev, the leader of neighboring Kazakhstan of
meddling in his country's electoral process by openly supporting one of his
opponents. Astana rejected the accusations and ordered the border closed as an act
of retaliation. The relations between the two former Soviet republics was strained
for a long time and this incident only made things worse.
THE AUTHORS
Ilya Gerol, former foreign editor of the Citizen in Ottawa, syndicated columnist in Canadian, US and European media specializing in international affairs. His particular area of expertise includes Russia, Eurasian Economic Union, Eastern and Central Europe. Ilya Gerol has written several books, one of them, The Manipulators, had become a textbook on relations of media and society.
During his career in the Canadian Foreign Service, Gilles Breton had three assignments at the Canadian Embassy in Moscow. His first posting there began during the Soviet period, in 1983. His last was from 2008 to 2012 as Minister-Counsellor and Deputy Head of Mission. He also served as Deputy Director responsible for Canada’s relations with Russia from 2000 to 2008. As an international civil servant, he was Deputy Director of the OSCE Office for Democratic Institutions and Human Rights in Warsaw from 1994 to 1997.
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