17 May 2012
Gas pipeline ‘pig trap’
Russia’s energy supplies ensure that Moscow maintains a geopolitical foothold in the European part of the former Soviet space.
By Sonia Rothwell
Yesterday we began charting how Russia seeks to maintain economic and geopolitical leverage across the former Soviet space. Our analysis inevitably reflects that it is now over two decades since the former USSR splintered into its constituent parts. Yet the return of Vladimir Putin to the Russian Presidency nevertheless provides us with insights into how Moscow might attempt to increase leverage in its former sphere of influence over the next 5-10 years. It is currently estimated, for example, that almost 70% of Russia’s export receipts are made up of transfers of natural resources, with the former Soviet space being a major recipient of end-products. A very healthy trade-surplus of more than $500bn provides Putin with opportunities to use Russia’s finances to its flex geopolitical muscle. During his election campaign, Putin pledged to invest approximately $750 million in Russia’s defense sector.
But to what extent do the former Soviet republics look to their old imperial master for security and economic cooperation? To answer this question, today we focus upon three sub-regions of the former Soviet Union – the Baltic States, Ukraine and Moldova. While each of these regions are forging economic and political relations that look beyond Russia, Moscow has the potential to use its energy supplies – and to a lesser extent its ethnic ties – to maintain a strategic foothold in Central and Eastern Europe.
A Changed Eastern Europe
From an economic and geopolitical perspective, the Baltic States have done the most out of all the former republics to distance themselves from their Soviet past. Each state is now a fully-fledged member of the European Union (EU) with Estonia (whose trade and cultural links have traditionally favored Finland) taking a step further away from Moscow after it joined the Eurozone in 2011. Like the Baltic States, Moldova also aspires to closer economic ties with the West in general and Europe in particular. Recently, Moldova’s Prime Minister and President re-affirmed their commitment to membership of the EU. Moldova’s efforts to also join NATO are largely encouraged by Romania and underpinned by linguistic and cultural affiliations between the two countries.
Russia nevertheless maintains a significant strategic foothold within Moldova. Its 14th army is stationed in the self-proclaimed majority Russian state of Trans Dniestra with Moscow also providing financial assistance to the government in Tiraspol. Strategically, it is in Russia’s interests to safeguard Trans-Dniestra’s independence to maintain Moscow’s influence within the region and divert Moldova’s attention away from full EU membership. Nevertheless, Russia maintains strong bilateral trade links with Moldova and there are calls for the country to join Russia’s nascent Customs Union. So in sharp contrast to the Baltic States, Moldova is seemingly pulled in two directions by its near- neighbor Romania and an economically significant Russia.
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