Wednesday, November 29, 2017

Issue 13

THE BRETON/GEROL NEWSLETTER


PECULIARITY OF A POLITICAL BROMANCE



Presidents Putin and Trump, Danang, Vietnam, November 11th
©President of Russia Website

Two meetings in November, the APEC Summit in Vietnam and the ASEAN Summit in Manila, had been considered to be the best possible platform for presidents Trump and Putin to hold personal one-on-one meetings. Trump had even shared a potential agenda for that. Russians, after a year of Trump presidency, have, however, learned how to be cautious when it comes to Donald Trump’s promises. Already in Vietnam, the American side offered Putin and his delegation to hold a meeting at the American premises at the Summit. The Russian side rejected the offer with the suggestion to hold the sit down at a neutral site on Summit premises. This time, the American side refused and the long anticipated meeting between Putin and Trump did not take place. The not very well camouflaged reality of the situation is that Trump avoided a direct meeting with Putin due to the ongoing investigation back home into allegation of collusion and Russian interference into the 2016 elections. The White House thus made sure that the meeting with Putin would not take place in Vietnam. There was a brief handshake, exchange of a few words, but nothing of substance took place. A joint declaration on Syria was released, but even that was presented as the work of Tillerson and Lavrov. It looks like the Russians understood the Administration's dilemma and blamed the absence of a meeting on technicalities. To avoid another mishap of that kind, Putin decided not to travel to Manila for the ASEAN Summit next day but dispatched his trusted, harmless sidekick Prime Minister Medvedev.

The compensation took form in a lengthy telephone conversation between Trump and Putin covering all major issues of the day between two countries: Syria, Ukraine, and North Korea.
There is an undeniable chemistry between the very different intellects and personalities of Putin and Trump therefore the world can only hope that sooner or later the leaders will be able to sit down together for a long and detailed discussion on the most burning global issues.


--o--

COURTING CHINA


Presidents Putin and Xi Jinping, Danang, Vietnam, November 10th
©President of Russia Website
Moscow's expectations for close partnership with China, at least on the political level, have not materialized. The ASEAN meeting in Manila proved that economic cooperation with the United States influences Chinese policy internationally more than any other consideration. China agreed with President Trump to ease the flow of American goods into the Chinese market. While ideologically and philosophically Beijing's rulers are closer to Moscow's traditions and interpretation of reality, first and foremost they are pragmatic. This is expressed by the recent Chinese decision to start negotiations with US companies on the possibility of purchasing American condensed gas. That move takes place in parallel with several contracts that China has with Russia’s Gazprom. In a significant move Chinese banks removed themselves from financing the construction of the Kerch bridge that will connect the Russian mainland with Crimea. At the same time, China keeps its multi-billion dollar deals with the Russian military industrial complex and continues to invest heavily into Siberian infrastructure. Both Moscow and Washington compete for Beijing's attention. President Trump asked China to exert serious pressure on the North Korean regime. Following his request, China dispatched an envoy to Pyongyang and suspended air travel between two countries. Moscow, on the other hand, wants to coordinate with China a less confrontational approach to Kim and his nuclear games. China, wisely, goes along with that approach as well.

China achieved a strategic advantage: Moscow and Washington more than ever look to Beijing for global solutions.


--o--



UKRAINE: SOLEMN REMEMBRANCE, EU PROMISES AND, STILL, MR. SAAKASHVILI


President Poroshenko paying tribute to the victims of the Holodomor of 1932-1933, November 25th
©President of Ukraine Website

In Ukraine, November 25th officially marks the “Day of Remembrance of the Holodomor Victims of 1932-1933”. The Holodomor is also being called, among other names, the Great Famine. President Poroshenko participated in commemorative events and issued the required statements. He also took a few predictable shots at Russia as successor state of the USSR. The fulfillment of these presidential duties immediately followed Poroshenko’s visit to Brussels on the occasion of the Fifth Eastern Partnership Summit with the EU. Beyond the usual re-affirmations of support for Ukraine from the European Union, Poroshenko singled out the fact that he “managed to unite the European Union around the idea of a peacekeeping mission in the Donbas”. On this issue, Poroshenko allows himself a rather generous reading of the rather general wording in the final statement of the Summit.

The emphasis on the role of the European Union is, however, far from misplaced. If any progress can be made in resolving, even partially, the conflict in Eastern Ukraine in the near future, the impetus will have to come from two EU leaders already active on this file, Chancellor Merkel and President Macron. Through their personal involvement in the discussions with Ukraine and Russia, they may be able to arrive at a modus vivendi that could open the door to a relative normalization of relations with Russia, including the removal of some sanctions. With a new president being elected in Ukraine in 2018, a lesser dependence on the military conflict as a unifying factor might lead to a workable and permanent ceasefire. As for the Trump administration, it is, for the foreseeable future, in no position to procure an arrangement that would satisfy Moscow without that being called in the US a concession to puppet master Putin. In other words, regardless of possible EU-inspired incremental progress, Ukraine will, for the foreseeable future, remain a bone of contention that will prevent the US and Russia from significantly improving their relationship.

As for Mikheil Saakashvili, he seems to have boundless energy: despite the harassment of some of his personal associates, he continues to rattle President Poroshenko’s chain with his popular campaign against corruption and the oligarchic system. Whether the campaign will lead to actual political change or become a permanent distraction remains to be seen.


--o--



PRE-ELECTION SHUFFLE: PUTIN'S STYLE



President Putin meeting with former regional leaders, Moscow, November 2nd
©President of Russia Website
The first step in renewing the upper echelon of regional power in Russia was a large-scale dismissal of governors, including those who were with Putin from his early days as President. In his speeches and press-conferences Putin has justified such a move as needed for the modernization of political mechanisms, more precisely a move away from the command and control system to a more efficient and innovative one. Considering that the Russian economy finally shows some moderate growth, it is, according to Putin, essential to replace the old guard with younger, more imaginative, educated and independently-minded (to certain extent, of course) people who would deal with local development issues without looking over their shoulder while constantly seeking approval from the President. One could argue that Putin is trying to improve the system he himself created. At one point (2000-2006) when Russia was in deep decline and disarray, Putin's power vertical was a necessary model, but a decade later such an approach proved to be outdated and inefficient.


--o--


SYRIA: VLADIMIR PUTIN, MARATHON MAN AND PLAY MASTER




Presidents Assad and Putin, Sochi, Russia, November 21st
©President of Russia Website

Only in November, and mostly in connection with the conflict in Syria, Vladimir Putin called the presidents of France and Kazakhstan, had a long conversation with the US President, received the President of Turkey, called the Emir of Qatar, received the President of Syria, called the US President, the King of Saudi Arabia, the President of Egypt, the Prime Minister of Israel, and then held a trilateral meeting with the Presidents of Iran and Turkey.

Two observations follow. If anyone ever doubted that Russia, through Putin himself, and to the chagrin of the US foreign policy establishment, was leading on the Syria file, those doubts are proven groundless. As well, as Putin previously stated, Russia engages all possible interlocutors in the conflict and is in a position to have a dialogue with all parties, an undeniable comparative advantage.
Even though there is acknowledgement that the military phase of the conflict in Syria is far from over, the emphasis, especially in the conversation with Bashar El Assad was on the post-conflict normalization of the situation in Syria, and the proposal to convene in Sochi a congress of Syrian national dialogue. The expressed objective is a long-term normalization of the situation in Syria. As noted in the joint statement issued by the Presidents of Iran, Turkey and Russia, the day after Putin’s meeting with Assad, the expressed objective is the adoption of a new constitution, that has the support of the Syrian people, and the conduct of free and fair elections in which all Syrians entitled to vote could participate and which would be suitably observed by the UN. It seems unusual for such a promotion of democracy to emanate from the three countries in question rather than from the EU or the US. The proof will, of course, be in the implementation. Whereas Syrians themselves, after years of a bloody conflict, may be ready for a transition to democracy, a key element will be the attitude of the other main regional players toward this process.


--o--


SYRIA: SHOULD THEY STAY OR SHOULD THEY GO?


Presients Rohani, Putin and Erdogan, Sochi, Russia, November 22nd
©President of Russia website


Now that the Islamic State has virtually lost all the territory it used to control in Syria, it is no longer possible to accuse the Russia-Iran alliance to have targeted only the Syrian rebels opposed to President Assad. The routing of ISIS is too evident and too far-reaching to have been only the work of the USA and its Kurdish allies. Donald Trump may claim that under his presidency the US fight against ISIS has dramatically improved, but few observers would pay attention to his usual exaggerations. The question as to who is fighting whom has now shifted from a question for Syria to a question for the US. If no longer fighting ISIS, what adversary are the US troops in Syria fighting? The US joining with Russia, as noted above, in supporting the territorial integrity of Syria does not absolutely mean that there could not be a US military presence in Syria. The US could invoke its previous commitment to the Kurds and even pretend it has an implicit an international mandate to be in Syria. The objective would be to continue undermining Assad’s presidency as well as to prevent Iran from cementing its position in Syria. Russia, that has voiced the expectation that US troops would leave Syria would be upset, but not as much as President Erdogan for whom the Kurds in Syria are only an extension work of his own Kurdish problem at home. Saudi Arabia and Israel, allies of convenience, as Israel recently admitted, would see the continuing presence of US troops in Syria as standing up to Iran and Hezbollah.

Even more problematic is the presence of Turkish troops in Syria as well the support of Turkey for certain rebel groups in Northern Syria. The alleged US promise no longer to provide weapons to Kurdish forces will not be enough to make Turkey adopt a more hands off approach, even though Turkey also joined Iran and Russia in supporting the principle of territorial integrity of Syria.

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SYRIA: THE MOSSAD FOOT NOTE


The Russian presidency report on the November 21st phone conversation between President Putin and Prime Minister Netanyahu has some interesting final words. “Both parties expressed interest in furthering mutually beneficial cooperation in a variety of areas, including contacts between special services.” In other words Russian security services and the Mossad, their Israeli counterpart, are expected to cooperate even more than is already the case. This is obviously a way of assuaging Israeli fears about Hezbollah/Iran presence in Syria. It should also make Donald Trump feel less guilty about allegedly sharing Mossad intelligence with Russia. The Russians most likely already had the intelligence in question, and maybe more.


--o--


THE DOGS BARK, THE CARAVAN MOVES ON



Presidents Putin, Rohani and Aliev, Teheran, November 1st
©President of Russia Website


A relatively unnoticed trilateral meeting took place in Teheran in early November. The Presidents of Azerbaijan, Iran and Syria got together for a discussion that was ostensibly focused on economic matters, namely transportation infrastructure and the delivery of energy.

The key issues to mention include:


  • The continuing support for the development of the North-South rail corridor that allows shipments to travel from India via Iran to Russia.
  • Russia, Iran and Azerbaijan are large hydrocarbon producers: they do not have to compete, but instead can and should coordinate their efforts.
  • For logistic reasons, the three countries have an interest in supplying hydrocarbon to each other.
Russia is taking advantage of the international political situation to develop its economic relationship with Iran. The pivot to the east includes the Middle East.

By involving Azerbaijan, Russia prevents the emergence of a competitive energy cluster centering on Azerbaijan. The recent opening of the Baku-Tbilissi-Kars rail route (linking Azerbaijan to Turkey through Georgia), whose initial purpose was to bypass Russia, is no longer seen as so threatening for Russia.


--o--




PERSON OF THE MONTH: RECEP TAYYIP ERDOĞAN



November was a month of intense political activity for the Turkish president, who shuttled between Russia, Iran and key Arab states. This hyper activity culminated in a Joint Declaration issued  in Sochi by Erdogan, Putin and their Iranian counterpart Rohani on post-war security and cooperation in Syria. In this newly formed triad the most challenging position was that of Erdogan: he always insisted that Syrian President Assad had to go and Turkish relations with Iran were always strained to say the least, but he managed to overcome his own pre-conceived notions and adapt to the new political reality. The reward for Turkey was in the acceptance by Russia, Iran and the Assad regime of a Turkish role and influence in the parts of Syrian territory bordering Turkey, including Turkey's “control” over Syrian Kurds in the area. Erdogan’s relations with the United States meanwhile are worsening. Erdogan stubbornly insists on the extradition of Fethullah Gülen, a Turkish religious leader living in exile in the US, who according to the Turkish President was behind the failed July 2016 coup in Turkey. General Flynn, Former National security adviser to President Trump, has been accused, among other things, of accepting $500,000 from Ankara to lobby in favour of Gulen’s extradition. Soon after announcing that Turkey was not interested anymore in pursuing EU membership, Erdogan made more serious hints: Ankara was mulling a possibility to leave NATO, the alliance Turkey helped to establish. Moreover, Turkey already paid $2.5 billion for the Russian made S-400, the most advanced Russian anti-aircraft missile system, triggering strong criticism by the US.

November was a good month for Erdogan but the future may not be as rosy. Growing internal instability, continuing repression within Turkish society and the Army, along with corruption charges against the president and his family, could derail Erdogan's populist drive and make him a target of popular discontent.


--o--



CANADA-RUSSIA RELATIONS AT LOWEST POINT EVER




Minister Lavrov
© MID Russia
Minister Freeland
© House of Commons





It was Russia that formally breached the Budapest Memorandum of 1994 which guaranteed Ukrainian territorial integrity in exchange for Kiev's transfer of its Soviet-made nuclear arsenal to Russia (Ukraine at the time had operational control over the third largest nuclear arsenal in the world). By absorbing Crimea and throwing its support behind Russian-speaking separatists in Eastern Ukraine, Moscow initiated the conflict between Ukraine and Russia. The US and most EU countries, while staunchly supporting Ukraine in this conflict, also see its complexity and possible solutions rather than just a black and white picture. They continue to keep high-level contacts with Moscow including among foreign ministers and heads of governments. After all, Russia continues to be one of only five permanent members of the UN Security Council, and a major player on the world stage. Canada practically cut every meaningful political contact with Russia, removing itself from any possibility of playing a constructive role in possible solutions to the crisis. Maybe Ottawa should undertake modest steps to rejoin its traditional allies and restore some degree of functionality in its relations with Russia, if only to have a chance to advance other Canadian interests than Ukraine.



--o--


BRIEFLY NOTED



CHINA-NORTH KOREA


Early in the second half of November, China sent one of its high-ranking officials to North Korea. According to Seoul sources it was Lee Bon Young, the deputy chairman of the special security committee that supervises different branches of the Chinese intelligence services. Surprisingly Mr. Lee was not received by Kim himself. Negotiations took place with a group of senior army officers. Observers in Hong Kong and mainland China believe that the talks in Pyongyang failed to convince the North Korean side to slow down its nuclear ambitions. This assessment proved to be correct: three days upon the Chinese delegation return to Beijing, China abruptly cut all flights to North Korea.

On November 29th, North Korea tested another ballistic missile, for the first time in two months. The missile, according to North Korea, held a warhead capable of re-entering the earth's atmosphere and could have hit the US mainland. The North Korean leader reportedly stated that North Korea is now a true nuclear power.  



ARMENIA


After having made a "friendly" official visit to Russia in mid-November, Serge Sargsyan, the President of Armenia attended for the first time the Eastern Partnership Summit in Brussels to witness the signing of the European Union-Armenia Comprehensive and Enhanced Partnership on the 24th of November. The reaction of media in Russia was predominantly negative. The Kremlin meanwhile refused to comment. Brussels however felt it necessary to issue a special statement emphasizing that the Eastern Partnership is not directed against Russia, but, on the contrary, will bring Russia and its allies to a greater level of cooperation with the European Union.

LATVIA


A special economic commission in Riga has concluded that the transit flow through the ports of Riga, Ventspils and Liepaya, that has traditionally been the backbone of the Latvian economy, had lost more than 30 percent of volume in recent years. Oil, steel, various agricultural products as well as other goods exported from Russia to Europe and Asia are now being increasingly directed through the ports of Murmansk, St. Petersburg and Ust-Luga - old and new Russian harbors. The reason is the rapidly worsening relations between Riga and Moscow. According to the Association of Latvia’s industrialists, there is a need to get out of this crisis and begin movement towards some degree of economic cooperation.

COUNCIL OF EUROPE


The Parliamentary Assembly of the Council of Europe (PACE) announced its intent to ease up the previously enforced sanctions against Russia and gradually make Moscow again a full-fledged member of PACE. Two years ago Russia was deprived of its voting power as a result of events in Crimea and Donbas. This latest pronouncement triggered a strong condemnation by Ukraine.

UKRAINE


A recent mini-coup in Luhansk, the main city of the self-proclaimed Luhansk Republic resulted in the resignation of Igor Plotnitsky and appointment, in his place, of Leonid Pasechnik as interim leader. The real reason behind the dismissal of Plotnitsky was that Mr. Pasechnik, the former State Security minister in that turbulent part of Donbas, appeared to be more radical in its separatism and anti-Ukrainian stand. BGN sources confirmed that one possible scenario for the development in that part of Ukraine controlled by separatists could be the unification of the two self-proclaimed republics (Donetsk and Luhansk) into one entity. Technically, this could ease the implementation of the Minsk agreement. Some observers, however, point out that such a development could only strengthen Moscow's control over the area.

RUSSIA-JAPAN


Complex and strategic, two-tracked negotiations recently began in two working groups of Russian and Japanese economists, logistic specialists and scientists. The talks will explore possibilities to increase the volume of Japanese exports to Europe through the Russian Northern Sea Route which potentially can shorten time and costs of transit by one third. The second project under discussion sounds more monumental: the  construction of a bridge between the Northern Japanese island of Hokkaido and the Russian Far East mainland. This project could shorten export transit routes even more dramatically.




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.





Monday, October 30, 2017

Issue 12

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
Ksenia Sobchak a well-known socialite and TV personality announced her decision to run for the presidency of Russia. It took everyone in the Russian political establishment by surprise. While the official opposition as a rule nominates old non-entities like Zyuganov, the head of the Communist Party and Zhirinovsky, the leader of the so-called Liberal-Democrats, the real opposition figure was considered Alexei Navalny, a strong anti-corruption crusader and political nemesis of Vladimir Putin. Ksenia Sobchak is adored by a younger generation of Russians, as well as by the artistic and literary communities and people with more modern and pro-Western outlook. At the same time being the daughter of Anatoly Sobchak, former mayor of St. Petersburg and political mentor of Putin, she enjoys personal relations with the President and his inner circle. Ksenia's candidacy gained the support of such a senior and influential political observer as Vladimir Pozner and even some representatives of the ruling elite.

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 Salaman and President Putin, Moscow, October 5th
President of Russia Website

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.







Friday, September 29, 2017

Issue 11

THE BRETON/GEROL NEWSLETTER


TRUMP vs UN

President Trump addresses the 72nd Session of the United Nations General Assembly
 (Official White House Photo by D. Myles Cullen)
The September session of the UN General Assembly was undoubtedly one to remember. In the 72 years of the UN existence there were many dramatic moments, turbulent discussions and inflammatory rhetoric. What made this session unique was Donald Trump openly expressing disrespect for the UN itself, an extraordinary pronouncement for the leader whose country was one the founders of the United Nations.

Trump's speech was not received well by the vast majority of world leaders in the General Assembly hall. Judging by the immediate reaction it was the least welcomed speech by a US President in that building ever. Objectively, however, the speech contained some reasonable points in respect to the overblown bureaucracy and inherited biases of the organization. Dmitry Simes, chief editor of the prestigious American National Interest magazine remarked that Trump's speech was put together by two conflicting groups: the Administration and the State Department. Bellicose and threatening parts were obviously produced by the President's inner circle and more conciliatory and diplomatic segments by the State Department bureaucrats. A pure example of this duality was his explicit threat to annihilate all of North Korea (a country of 24 million people) and right after that expressing his strong belief in diplomacy.

His blistering attack against the nuclear deal with Iran was unanimously rejected not only by the 5 other co-signers of the agreement but also by the EU and other major players except maybe for Israel.

The 72nd session of the UN GA has not brought us closer to solving any of the world immediate conflicts.

BGN conjecture: the Iran nuclear agreement will stay in place with a possibility of changes in respect to the number of years Iran is not allowed to enrich uranium.

Syria: limited coordination between the US led coalition and Russian military command will continue.


--o--

PRESIDENT PUTIN LOST THE ELECTION, DID HE?


President Putin at the Gagarinsky District Polling Station, September 10th
President of Russia Official Website


It is rather difficult for commentators to evaluate the significance of the results achieved by some opposition parties on the occasion of the Moscow local council elections held on September 10th. Is it a “new era for Russian politics”, as one activist put it? Perhaps. The opposition, in this case the liberal Yabloko party, indeed won all the seats in the district where the President himself voted. This is symbolically significant. Yet, United Russia, the President’s “pedestal” party won 76% of the Moscow seats overall and most of everything else across the country. That is as clear a victory as one could expect.

To have a better understanding of the situation it is important to take a more long-term view.
In Russia’s managed democracy conditions, the three opposition parties (Communists, Just Russia and Liberal Democrats) that are labeled the “systemic” opposition are expected to be just that, opposition. Their aim is not to gain power, but to serve as faire-valoir for the party that supports the President. This works very well in the context of national elections, especially parliamentary ones. Systemic opposition parties get their share of seats in the Duma. The perks that come with the Duma seats are a non-negligible incentive not to disrupt the system. The opposition parties that are not part of the system barely get any public recognition and seldom manage to get seats at any level.

At the national level, for a non-systemic opposition to emerge and to have some claim to power, it would need a strong leader, a distinct and attractive platform that could stand up to United Russia’s all-you-can-eat approach, as well as a substantial membership. Thus far, this has been “mission impossible”.

Around the time of the December 2011 national legislative elections, the prospect of non-systemic opposition forces being in a position to gain power at the municipal or regional level began to gain some credibility and attractiveness. Some observers argued that if opposition forces could establish themselves firmly at a lower level, they might be able to break out of the managed democracy model and eventually move on to the national level. That, however, did not materialize. A lot of energy was spent on the major public opposition demonstrations in late 2011 and throughout 2012, but the interest for electoral politics at the local level was not sustained.

In that context, the September 10th Moscow local council elections are significant in that they mark the fulfillment of the 2011-12 expectation: a non-systemic opposition group will take over the local council of up to 15 Moscow districts and will have a voice in many other councils. The unifying issue that seems to have brought about this result is the opposition to the Moscow Administration’s plan to renovate Khrushchev-era apartment blocks without taking into account the wishes of their occupants. The opposition groups did not manage to gain enough seats in enough districts to advance their own candidate for the next mayoral election in 2018, but are not giving up on finding a way around that problem. What matters is that the Yabloko opposition becomes relevant and, on account of its central Moscow successes, highly visible. This success could inspire others to try to do the same.

Of no less interest is the fact that the Moscow gains of the non-systemic opposition were accompanied by substantial losses for the systemic opposition parties: for instance, the Communist Party went from a previous overall tally of 212 seats to only 43.The non-systemic opposition may not be close to power, but may be in a position to replace the systemic opposition, in itself a significant moment.

Managed democracy is not dead. It still has a lot of staying power. Wishful thinking on the part of its opponents could lead to major disappointment. The fact is, however, that there is a real well-organised opposition that is finding its voice again in a grass roots based endeavour. What is far more difficult is to assess how long it might take for the revived opposition to alter the current power structure. The first step we just witnessed took more than five years. It could take a lot of time for the next one, in the absence of another major faux-pas by the current holders of power.


--o--

RUSSIAN ECONOMY IS OUT OF RECESSION



It is not the growth Russia dreamed about. Nevertheless 2.1% growth in 2016 and 2.6% growth in the first two quarters of 2017 marks the end of the deepest recession in years. It is particularly surprising in light of sanctions that have squeezed the Russian financial system and deprived industry of some vital imports. The so-called counter-sanctions that Moscow announced in response were aimed at boosting an "import replacement" drive especially in agriculture. For a short while the euphoria of import replacement was somewhat justifiable: domestic production started to grow. However, in the absence of the competition that imported goods provide, the quality of domestic agricultural products in Russia has begun to drop. In technological and industrial sectors Russia is also going through profound difficulties. The European Bank of Reconstruction and Development concluded that while the sanctions were not as damaging for the Russian economy so far as it had been widely expected, they will seriously undermine Russian economic performance in future. Without a 4% annual growth Russia's economy will not be able to maintain the global standards of a post-industrial nation. Only by improving relations with the West, that is not easy due to complex political differences, can Russia meet its economic objectives.

BGN conjecture: It is likely that Russia will offer major compromises on Eastern Ukraine (but certainly not Crimea) in order to remove all or large part of sanctions so it can improve its economy and regain membership at the G8.


--o--

BETTER THAN HOME


President Poroshenko and Prime Minister Trudeau, Toronto, September 22nd
President of Ukraine Official Website

There is probably nothing sweeter for a President of Ukraine than to visit Canada. No matter your latest single-digit poll rating or what difficulties you may have at home, you will be very well received by governments at all levels and by the Ukrainian community. You will also hear the right things, most of the time. No matter also that the discussions are not as productive as you would want: there is a definite answer neither on the provision of satellite images to monitor Russian and rebel troop movements on the Ukraine border nor on Canada joining a UN peacekeeping mission in Ukraine. Yet, there is no definite no heard on the first question and, on the second, you receive a general expression of support for the Ukraine-proposed UN peacekeeping mission. Urgent issues do, however, await you at home.

UN peacekeeping may not be the most pressing issue that needs to be addressed upon arrival in Kyiv, but it has now become less of a winner. For months, if not years, Kyiv could advance the idea of a UN peacekeeping mission, knowing that Moscow would reject it out of hand. Moscow has modified the terms of the discussion by coming up with its own UN peacekeeping proposal. That Russian proposal is unacceptable to Kyiv on at least one major account: UN peacekeepers would be expected to support the work of the OSCE Monitoring Mission, that is they would have to be on the line separating the two sides to the conflict, not on the Ukraine-Russia border. Under German pressure, Russia has allowed that it might be willing to consider the presence of peacekeepers elsewhere in Donbass, but not on the international border, which is a key condition for Kyiv to support any peacekeeping proposal. Other issues, such as the prior removal of heavy weapons, the composition of the peacekeeping contingent and the explicit direct approval of the arrangement by the rebel authorities in Donbass might be resolvable, but the dispute over the location of peacekeepers is likely to make an agreement impossible. By making its own proposal, Russia has, however, not only taken this free ride away from Kyiv, but, by eliciting some open interest on the part of Germany, opened a small crack in the general European support for Kyiv. One may even wonder whether the Germans might not have encouraged the idea.

Mikheil Saakashvili’s illegal presence in Ukraine will be another less than pleasant matter for Poroshenko to address. Piqued by having had his Ukrainian citizenship removed by Poroshenko, Saakashvili is unlikely to limit himself to enjoying the hospitality of his supporters in the capital and throughout the country. He has openly stated that, no longer being a citizen, he no longer seeks an elected position in Ukraine. Instead he seems intent on becoming a political agitator that will seek to regroup and energize opposition activists who share his anti-corruption platform. The outcome of his altruistic efforts is unpredictable, but will not make things any easier for the current Ukrainian leadership whose general political standing is on a downward trend.

Having just signed the new law on Education, Poroshenko will now have to address the controversy arising from the fact that the legislation’s promotion of education in Ukrainian is perceived by some of Ukraine’s EU neighbours (Hungary, Romania)as an infringement of the education rights of “their” ethnic minorities in Ukraine. The matter has been referred by Ukraine to the European Commission for Democracy through Law (also known as Venice Commission) of the Council of Europe”. Poroshenko agreed to take into account the opinion of European experts, but emphasised that Ukraine would make decisions by itself. A most negative reaction had already come from Hungary that described the new legislation as “a stab in the back” and threatened to block Ukraine’s efforts to integrate with the European Union. Many Canadians, being familiar with the education language debate, will have an impression of déjà vu, but with an additional international touch.


--o--

BRICS AND VLADIVOSTOK ECONOMIC FORUM


BRICS leaders 

The September 4th Summit meeting in Xiamen (China) of the leaders of the world emerging economies (Brazil, Russia, India, China, South Africa) under the BRICS moniker did not get  a lot of attention in our media. There is a tendency to think of such summits as the poor relative of the G7 ones. If anything, there are even commentators arguing that the BRICS as an entity has outlived its usefulness. The BRICS s pledge to work together toward a more just, equitable, fair, democratic and representative international political and economic order is appealing, but does not have the same credibility when two of its leaders, President Temer in Brazil and President Zuma in South Africa are facing or have faced corruption charges. The attempts led by China and Russia to “de-dollarize” their commercial exchanges as a way of reducing US influence and insulating the economies from US-inspired sanctions may appear futile.

Yet, despite the mixed reviews BRICS meetings go on. As a mechanism of consultations among the leaders of the world emerging economies, it may fulfill a rather useful mission as a forum to promote greater economic integration (especially between Russia and China) as well as a conflict prevention mechanism (especially between China and India). When compared to what might be achieved by a G8 Summit with Donald Trump on board, the BRICS Summits might even begin to look good.

The Chinese insistence on “the need to seek practical results in our economic cooperation” and on the” need to strengthen the integration of our development strategies” illustrates rather well how BRICS mechanisms are in the long-term expected to create more robust economies better connected with one another. The BRICS’ creation and active promotion of its own New Development Bank is one example of the mechanisms that can lead to tangible accomplishments.

From the BRICS Summit in China, Vladimir Putin travelled to Vladivostok for the third edition of that city’s Economic Forum. This served, if necessary, to highlight the special relevance of BRICS’ and of China in the economic development of Russia’s Far Eastern regions.

Even though the economy is not regarded as Putin’s first strength, it is worthwhile to observe that his interest in modernizing the Russian Far East is a significant departure from past Soviet and Russian policies and that he pursues this regional economic development interest in a sustained manner year in year out.

Japanese Prime Minister Abe, President Putin, September 7th, Vladivostok
President of Russia Official Website

The Presidents of South Korea and of Mongolia as well as the Prime Minister of Japan also attended the Vladivostok Forum. What is striking is the enthusiasm displayed by Japan, followed closely by South Korea, for the fullest possible development of economic cooperation with Russia. The contrast with the attitude of some countries of the Euro-Atlantic region is staggering.


South Korean President Moon Jae-in, President Putin, September 6th, Vladivostok
President of Russia Official Website

Japan, even though it still has not resolved its territorial dispute with Russia, is reportedly in “serious discussions” to link the two countries with a railway bridge that would connect Hokkaido and Sakahlin islands. Russia would build its own link from the continent to Sakhalin. This project may be seen as far-fetched, but the very fact that it is discussed is revealing of the state of mind in the region. Seen in connection with China’s One Belt One Road plans (especially the New Eurasian Land Bridge) the project could lead to a substantial increase in trade flows. It is also not lost on the countries belonging to the Eurasian Economic Union that they would be among the first to benefit from the expansion of rail links in Asia and their connection to the European network.


--o--


GERMANY: JAMAICA COALITION?



The Bundestag, Berlin

The Christian Democratic party of Germany together with its Bavarian cousin Christian Social Union received the biggest slice of the electorate's pie and will again form the Government of the Federal Republic. With only 33% of votes they, however, have to form a coalition. The Social Democrats, after suffering their worst defeat in the post-World War II history, announced their decision to stay in the opposition. Frau Merkel will most probably opt for the so-called Jamaica coalition (party colours of Christian Democrats, Free Democrats and Greens in combination form the Jamaican national flag). 

It was a bittersweet victory for the Christian Democrats because of the rejection by many Germans of the government's decision to let one million Muslim refugees into Germany in 2015-2016. The right-wing Alternative for Germany party won 12.6% of the vote and for the first time got into the Bundestag.

The initial analysis of the election results showed that all 6 regions of the former East Germany together with millions of German citizens of Russian and other Eastern European extraction voted for the AfG. Most of the world media immediately labelled this right-wing party as "neo-Nazi". This is a bit of a stretch. Yet, Angela Merkel admitted that her party has to work hard to bring back those who voted for AfG and that her party will address the root causes of the out of control immigration.


--o--

PERSON OF THE MONTH: ANGELA MERKEL



Angela Merkel, Facebook Profile

After winning the September elections Angela Merkel, became the third longest-serving German chancellor, following Otto von Bismarck and Helmut Kohl.

The daughter of a protestant pastor, Merkel as born in West Germany yet moved to the DDR when she was a child as her father was transferred there by the church. Like Margaret Thatcher, Merkel has a Ph.D. in chemistry. Unlike Thatcher she is not called an "Iron Lady". German politicians prefer to call her "Teflon Lady" for her ability to compromise, build coalitions and take into consideration the views of her bitter political opponents. That is why her cabinets could include right-of-center Free Democrats and left-of-center Social Democrats.

Angela Merkel is a unique politician for Germany and the continent as a whole; her East German upbringing, education, fluency in Russian ( Merkel speaks Putin's language fluently) provides her with a unique understanding of complex political processes underway in Europe and the rest of the world. Merkel is not alone in disliking Donald Trump, but she is the only politician of caliber who openly states so. Her closeness to Israel has a lot do with her deep understanding of history, especially of the 20th century and the tragedies that unfolded. Germany under Merkel provided Israel with unprecedented level of political and military assistance, including the sale of advanced submarines and even annual joint sessions of German and Israeli cabinets. Angela Merkel's radical decision to open her country's doors to one million refugees is in direct line with her feeling of the responsibility Germany carries for the Jewish genocide and other multiple tragedies of World War II.

Despite an evidently eroding support Merkel still commands the strongest ever national economy. She continues to symbolize the stability and prosperity of Germany.

She starts her fourth term as the unquestionable leader of United Europe, as usual with the exception of the United Kingdom.


--o--

NORTH KOREAN ROULETTE



There is a certain system to Kim Jong-un's irrationality. He believes - and he would not be wrong to do so - that the US and South Korea will never mount an attack against him. There are reasons for this. First, up to 10.000 Soviet-made artillery pieces that are embedded into North Korean mountains can open up a barrage against Seoul from 30 miles away and kill tens of thousands of people within hours. They are difficult if not impossible to destroy immediately. Second, North Korea, as it is well known, possesses a deadly arsenal of chemical and biological weapons to be loaded into artillery pieces which unlike rockets are impossible to intercept. Third, there is a high degree of probability that Kim could launch nuclear devices towards South Korea, Japan and even reach American bases as far as Guam. Basically we can find ourselves in all out nuclear exchange with totally unpredictable consequences and scale.

Therefore constantly escalating threats towards Pyongyang are not the most effective way to deal with this problem.

Kim will not give up his pursuit of a nuclear deterrent. He knows all too well what happened to Gaddafi and Saddam Hussein after they either had given up or were forced to end their nuclear programs. Kim and his generals also know what the international experts confirm: the North Korean army, for all its fire power, can conduct war for a maximum of three weeks after which they will start running out of spare parts, fuel and ammunition.

It seems that the Chinese approach of applying economic pressure together with allowing some wiggle room for reflection (for Kim and his inner circle) is a more sensible and safer way to deal with the North Korean menace. 



--o--


THE CANADA RUSSIA EURASIA BUSINESS ASSOCIATION




The Canada Eurasia Russia Business Association (CERBA) held its Annual General Meeting on September 12th in Montreal. Gilles Breton, the co-editor of the Breton/Gerol Newsletter was elected as the Chairman of the National Board of CERBA. For more detailed information on CERBA and its activities you may visit its web site at  www.cerba.org




--o--


BRIEFLY NOTED

RUSSIA


Twelve governors of the most industrial regions of Russia lost their jobs. Reasons given were age and poor performance. In reality Putin, who fired them, began his pre-election campaign by bringing to his side younger generation of managers. The new governor of Kaliningrad region (Western enclave of Russia) is only 29. By doing so Putin addressed something that had been perceived as his weakness: a lack of connection with younger voters.

KYRGYZSTAN


Kyrgyzstan and Kazakhstan swapped accusations and diplomatic protests after Kazakhstan's president met with Omurbek Babanov, a Kyrgyz presidential candidate. Kyrgyzstan accused Kazakhstan of meddling in its internal affairs. Relations between the two former Soviet republics were never too friendly, but now mighty and industrial Kazakhstan is perceived by Bishkek as a serious threat. 

UZBEKISTAN


For the first time since 1991 Uzbekistan will allow its citizens to buy and sell foreign currency. The law will go into effect on October 1st.  This will boost export/import activities and help the process of privatization.

MOLDOVA


The Socialist party of Moldova proposed a law that is designed to strengthen presidential powers. This law, if adopted, will help to solve almost permanent state of gridlock between the parliament and president. Regional experts believe that such a law could provide president Dodon with an opportunity to dissolve parliament and call new elections.

BELARUS


President Lukashenko threw a royal welcome for the visiting leader of the Chechen Republic, Ramzan Kadyrov. It is highly unusual for a head of state to offer such level of welcome to a regional leader (Chechnya officially is a part of Russian Federation). Yet, Kadyrov's role in the Muslim world and his special relations with Putin are the reasons for Lukashenko to be so friendly.


--o--




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.