Ukraine’s Turn to the East: A Geopolitical Accident

“Imperialist Putin “Steals” Ukraine”… If only all those hysterical newspaper articles were true!

In reality, the only thing he stole was Ukraine’s credit card debt. He’s no idiot, of course, and is in no rush to pay it off. The drama certainly hasn’t ended. But a geopolitical pivot on the model of Khmelnitsky’s 1654 decision this is not.

Let me try to explain the actual motivations of everyone involved:

(1) The EU wants the Ukraine. No, have to be more precise. The Poles, Balts, Swedes, and Anglos want Ukraine in the EU, without Yanukovych. Scratch that. They want Russia without Ukraine without a Yanukovych. As long as Ukraine politely waits in the queue alongside Turkey and Egypt and all those other peripheral countries enjoying the glories of “European civilization” with Associate memberships, all is well.

(2) Putin wants a weak Yanukovych – because Yanukovych is loyal to his oligarchs, not Putin (duh!) – in control of Ukraine. He also wants Ukraine in the Customs Union. (But not its credit card debt). To do this he has been applying pressure, with Russia banning the import of Roshen chocolates, which belong to a particularly outspoken proponent of the EU, the oligarch Petroshenko. There are warning that EU Association will mean the setting up of tariffs on Ukrainian imports (Russia does not, after all, wish to have to compete with European goods on level territory at this stage). Russia’s long-term goal (with the Eurasian Union) is gradual convergence with EU standards, and eventually even integration. But that is very far off (2040’s maybe). The greater the scope of the Eurasian Union, the more advantageous the terms on which said integration can occur. There is no hurry.

(3) Yanukovych wants what the Donbass oligarchs want. The Donbass oligarchs want to legitimize and secure their wealth by integrating into Western institutions. But the Donbass oligarchs also want their main protector to remain in power. And unfortunately, things like raising gas prices by 40%, salary freezes, and big spending cuts – as demanded by the IMF in return for loans – is going to collapse whatever remains of Yanukovych’s support in the east and south. And why does the EU/IMF demand such stringent concessions? See above. They want a Ukraine without Yanukovych! It’s all logical.

Hence, when PM Azarov says that the decision to suspect the EU deal is “tactical,” he is in all likelihood saying the truth – as opposed to opposition claims that it is all some kind of elaborate conspiracy concocted with Putin to deny Ukraine its “European choice” and return it to imperial moskali domination.

It is also worth noting that during much of the summer, Ukrainian TV channels were propagandizing the benefits of EU association. This is presumably what caused support for the EU to start exceeding support for the Customs Union/Eurasian Union. It would have been exceedingly stupid and irrational to carry out this information campaign with the ultimate intention of performing a volte face and turning back to Russia. It would just piss off the Ukrainians who had become more energized about Europe. An own goal. Why would they possibly do it?

Now that we have a more realistic idea of how things actually work – as opposed to the fanciful tales that the Lithuanians are spinning of Russian blackmail towards Yanykovych, and its faithful repetition in the Western media – we can now look to the future.

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What is Ukraine’s Game Plan?

Even a few months ago, it looked as if Ukraine had taken a significant step towards Eurasian integration by signing up as an observer to the Customs Union between Russia, Kazakhstan, and Belarus. However, in the past month, evidence is emerging that it was but a temporary ploy to appease Russia while in reality speeding up the Deep and Comprehensive Free Trade Agreement (DCFTA) with the European Union. This is scheduled to be signed in Vilnius late this November.

The Ukrainians say that that does not preclude further integration within the framework of the Customs Union. However, it is difficult to see how it could simultaneously have free trade with Europe while simultaneously being a part of strategic protectionist bloc. Although it is entirely possible that in the Customs Union will eventually be gradually merged with and into the European economic area – Putin himself has hinted as much – any such scenario will likely be decades in the making.

Putting aside for the moment geopolitical (Atlanticism vs. Eurasianism) and cultural (European civilization vs. Orthodox-Slavic brotherhood) considerations for the moment – which have been overdiscussed anyway both on this blog and Leos Tomicek’s and many others, with the result that there is now little left to add – I would like to frame the debate in economic terms.

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Map of Natural Population Growth in the Former USSR in 2012

H/t AP for this beauty. It is for 2012.

natural-population-growth-ussr-2012

[Click to enlarge].

It speaks for itself so comprehensively that I’m not sure it’s worth commenting further on my part here. Let’s leave that to the comments section.

Eurasian Integration Is A Liberal Project Opposed By Neocon Bolsheviks

My latest for VoR/US-Russia Experts panel. Hope you like the title. 🙂

The political fragmentation of the Soviet Union was one of the major contributing factors to the “hyper-depression” that afflicted not only Russia but all the other constituent republics in the 1990’s. The Soviet economy had been an integrated whole; an aircraft might have its engines sourced from Ukraine, its aluminium body from Russia, and its navigational ball-bearings from Latvia. Suddenly, border restrictions and tariffs appeared overnight – adding even more complexity and headaches to a chaotic economic situation. Although the region was in for a world of hurt either way, as economies made their screeching transitions to capitalism, disintegration only served to further accentuate the economic and social pain. In this respect, Putin was correct to call the dissolution of the Soviet Union one of the 20th century’s greatest geopolitical tragedies.

It is no longer possible – and in some cases, even desirable – to restore much of the productive capacity lost in that period. Nonetheless, renewed economic integration across the Eurasian space – with its attendant promise of less red tape (and hence lower opportunities for corruption), significantly bigger markets offering economies of scale, and the streamlining of legal and regulatory standards – is clearly a good deal for all the countries concerned from an economic perspective. There is overwhelming public support for the Common Economic Space in all member and potential member states: Kazakhstan (76%), Tajikistan (72%), Russia (70%), Kyrgyzstan (63%), Belarus (62%), and Ukraine (56%). The percentage of citizens opposed doesn’t exceed 10% in any of those countries. A solid 60%-70% of Ukrainians consistently approve of open borders with Russia, without tariffs or visas, while a further 20% want their countries to unite outright; incidentally, both figures are lower in Russia itself, making a mockery of widespread claims that Russians harbor imperialistic, “neo-Soviet,” and revanchist feelings towards “their” erstwhile domains.

This I suppose brings us to Ariel Cohen, neocon think-tanks, Hillary “Putin has no soul” Clinton, and John “I see the letters KGB in Putin’s eyes” McCain. They studiously ignore the fact that the Eurasian Union is primarily an economic association, and not even one that insists on being exclusionary to the EU. They prefer not to mention that the integration project has strong support in all the countries involved, with Russia not even being the most enthusiastic about it – which is quite understandable, considering that as its richest member it would also be expected to provide the lion’s bulk of any transfer payments. In this respect, it is the direct opposite of the way the Soviet Union was built – through military occupation, and against the will of the vast majority of the Russian Empire’s inhabitants. Though expecting someone like McCain, who one suspects views the “Tsars” and Stalin and Putin as matryoshka dolls nestled within each other, to appreciate any of that is unrealistic and a waste of time.

Enough with entertaining the senile ramblings from those quarters. Integration makes patent economic sense; it enjoys broad popular support throughout the CIS; and there are no global opponents to it – official China, for instance, is supportive – barring a small clique of prevaricating, anti-democratic, and perennially Russophobic ideologues centered in the US and Britain. Neither the West nor any other bloc has any business dictating how the sovereign nations of Eurasia choose to coordinate their economic and political activities.

The People’s Choice, or how Ukrainians are Learning to Stop Worrying and Love Eurasia

I enjoyed the egg-throwing scenes from Ukraine’s Rada on the ratification of the gas-for-fleet deal with Russia as much as anyone. It also reflected the polarized commentary on the interwebs. The Ukrainian patriot-bloggers get their knickers in a sweaty twist. The academic beigeocrat Alexander Motyl (he of “Why Russia is Really Weak” fame some four years back) now warns of the “End of Ukraine”. Ukraine’s (self-styled) intelligentsia writes open letters condemning the Kharkov deal and Yanukovych’s sellout of the national interest. 2000 protesters stage a demonstration against his pursuit of closer ties with Russia in Kiev, a city of three millions. Alexander Golts, liberal Russian military analyst, argues that the asymmetric nature of the exchange – “with the lower gas prices to take effect immediately, Ukraine can now save roughly $4 billion annually, whereas the lease extension will only take effect only after the current agreement expires in 2017” – means that Russia was duped. In my view, these screeds are ideologized, or approach the issue from a set of false or incomplete assumptions.

Let’s start from the “banderovtsy” who despise the “sovok” Yanukovych for selling out Ukrainka to the Moskali Horde. (Yes, I’ve grossly caricatured three complex groupings in that sentence). Their problem is that they believe the “Ukrainian people” share their own rigid conception of Ukraine as a rigid nation-state, rejecting opposing views that stress its civilizational commonalities with the Orthodox, Slavic, or Eurasian spheres. This manifests itself in a particularly antagonistic attitude to Russia and Russianness, which are perceived, not inaccurately, as the greatest enemies of Ukrainian nationhood yesterday, today and tomorrow. Their biggest problem and frustration – indeed, their predicament – is that by and large, the Ukrainian people simply do not buy into their efforts to imagine into being a narrow, militantly Ukrainian vision of Ukraine*.

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