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한국어로 읽기Leer en españolIn Deutsch lesen Gap اقرأ بالعربيةLire en françaisЧитать на русском Hotfoot from signing a security pact with North Korea on Wednesday, Vladimir Putin has popped up in Vietnam, another of the few remaining countries where the Russian president is still welcome (or doesn’t face arrest under the war crimes warrant issued by the International Criminal Court last year). Here he was congratulated by the president, To Lam, for his election victory earlier this year and for maintaining stability and continuity in Russia. Putin, meanwhile, made much of the Soviet Union’s historical support for the Vietnamese people’s struggle for independence and unity from the 1950s to the 1970s, referring, without a hint of irony, to Vietnam’s “heroic struggle against foreign invaders”. The visit has been billed as part of Putin’s strategy to promote a new “multipolar” world order, free from US control. But it should be noted that the pragmatic Vietnamese have already hosted Joe Biden and Xi Jinping over the past nine months. Hanoi’s “bamboo diplomacy” depends on the country being “actively neutral” – with one eye on China, Vietnam has also upgraded relations with the US, Australia and South Korea in recent times. So, while there will be plenty of expressions of goodwill from Vietnam’s leadership, they are less likely to commit to anything more concrete as things stand. North Korea knows little of such diplomatic niceties, though, and has fewer choices when it comes to its friends. Very little detail has emerged of the new pact with Russia, except that it would require each country to come to the aid of the other if attacked. But it’s likely that close to the top of the agenda would have been Russia’s military requirements. North Korea’s supplies of artillery and ammunition are thought to have been vital in helping Russia overcome the harsh sanctions imposed by the US as well as Beijing’s unwillingness to directly provide arms for the war in Ukraine. Kim, in turn, wants Russian know-how when it comes to sophisticated military tech as well as economic support when it comes to feeding his country’s starving population. But warm relations between the two countries is nothing new. Official pronouncements emphasised the “traditionally friendly and good” relations between Russia and North Korea “based on the glorious traditions of common history”. For Kim, writes Robert Barnes, a senior lecturer in history at York St John University, this is something of a family affair which harks back to the 1930s when the North Korean leader’s grandfather Kim Il-sung was a relatively unknown Korean communist leading a small guerrilla band fighting the Japanese in Manchuria. Kim spent much of the second world war in the Soviet Union, where he joined the Red Army and rose to the rank of major. After the conflict, he was handpicked by Stalin to lead the Korean Workers’ party and then North Korea when it was established in 1948. The Korean war which followed almost led to a nuclear confrontation between the Soviet Union and the west. Hopefully, concludes Barnes, nothing as dramatic will result from this latest iteration of the relationship between the two countries. But pariah states such as North Korea aren’t the only countries where Putin can command a degree of support, if the recent European parliamentary elections are any guide. As Natasha Lindstaedt notes here, the rise of the far right in EU member states such as Germany, France, Slovakia, Hungary, Romania and Bulgaria is throwing up an increasingly powerful group that stands in opposition to EU support for Ukraine. It may seem counterintuitive that such an avowed anti-fascist as Putin is courting extreme right organisations such as Germany’s Alternative for Deutschland party (AfD) or Hungary’s Fidesz party. But Lindstaedt believes that leaders such as Hungary’s Viktor Orbán have shown little concern for the institutions of democracy – as shown by Hungary’s adoption of a similar foreign agents’ law which acts to curtail press freedom and the work of NGOs. She concudes: “Putin is seen by the far right as a strong and conservative leader that can defend himself against the liberal west, which is trying to undermine these values.” The west, meanwhile, remains divided over the manner and extent of its support for Ukraine. The good news for Kyiv is that the recent G7 meeting in Puglia, southern Italy, ended in an in-principle agreement to use the US$3 billion (£2.36 billion) interest from US$350 billion of Russian assets frozen in the western banking system to underwrite a US$50 billion loan to Ukraine. But Gregory Stiles and Hugo Dobson, experts in international relations at the University of Sheffield, sound a cautionary note suggesting that the details of how this will work are likely to take months to agree. Meanwhile, they write, five of the seven leaders – US president Joe Biden, France’s Emmanuel Macron, Canada’s Justin Trudeau, the UK’s Rishi Sunak and Japan’s Fumio Kishida – all face elections this year which none of them are guaranteed to survive. And, to take just one example, if Biden loses in November to Donald Trump, the likelihood of this deal proceeding becomes significantly reduced. Summit on peace Many of these leaders went on to Switzerland at the weekend for the Summit on Peace in Ukraine. Stefan Wolff, an expert in international security at the University of Birmingham, was following proceedings and concludes that it’s hard to judge the meeting an unqualified success. Out of 160 countries and international organisations invited, only 92 attended. Biden was a no-show and Canada’s premier, Justin Trudeau, was the only G7 leader to stay for both days of the conference. The main problem, writes Wolff, was that the only peace plan on the table was that proposed some time ago by Ukraine’s president, Volodymyr Zelensky. This calls for the complete withdrawal of Russian troops from Ukraine, including Crimea, and the payment of reparations for rebuilding his country. Seven other peace plans, proposed by the likes of China (which also failed to send anyone), Brazil, Indonesia, Saudi Arabia, a group of African states led by South Africa and the Vatican were not discussed. Most of these call for a ceasefire, which is anathema to Kyiv and its backers in the US and UK, as it would accept, for the time being at least, Russia’s territorial gains on the ground, including the illegal annexation of Crimea in 2014. Putin, meanwhile, was trolling hard from the sidelines, releasing his terms for a ceasefire deal, which are for Ukraine to accept Russian annexation of Crimea and not just the land his troops currently occupy, but all of the four regions he annexed in September 2022. Putin’s column As previously noted here, a season of relative success on the battlefield, has left Putin in a bullish mood. It emerged recently that (despite being seriously disadvantaged by the war in Ukraine and the harsh western sanctions which have ensued) the boss of Russian energy giant plans to build an 80-metre column in St Petersburg to commemorate Peter the Great’s triumph in the great northern war, after which Russia declared itself to be an empire for the first time. As George Gilbert, an expert in Russian history at University of Southampton notes, anything honouring Peter the Great is a sure-fire way of buttering up the Russian president, who sees himself as a latter-day incarnation of the man who built his home town of St Petersburg, glossing over the fact that Peter saw his capital as a way of making Russia more of a west-facing country. Gilbert gives us some historical context about the conflict, in which Russia lined up alongside much of what would become Poland and Germany as well as Britain, by virtue of its king, George I, also being the ruler of Hanover. The key battle, he writes, was at Poltava, which is in the middle of what is now Ukraine, which involved defeating a crack regiment of Cossack cavalry, which you’d have to imagine is very much grist to Putin’s mill. One suspects, though, that it’s Peter the Great’s imperial achievements that Putin wants to emulate most of all.

한국어로 읽기Leer en españolIn Deutsch lesen Gap اقرأ بالعربيةLire en françaisЧитать на русском Poland ranks seventh in Europe and 12th worldwide among the least business-friendly countries. It also performed the worst in this regard compared to neighboring countries, including war-torn Ukraine. Greece is the most challenging country to conduct business in. These conclusions come from the eleventh edition of the annual Global Business Complexity Index report by TMF Group, a leading provider of compliance and administrative services. The authors of the TMF Global Complexity Index 2023 examined 79 jurisdictions, accounting for 93% of the world’s GDP and 88% of net foreign direct investment. They compared 292 annually monitored indicators regarding key aspects of business operations, administrative regulations, and legal compliance for entrepreneurs planning to conduct business in a selected market. For the first time, Saudi Arabia appeared in the ranking, taking the 37th position. Poland, considering European countries, ranked seventh in the index, three places better than the previous two years. “We observe progress in digitizing processes in Poland. This is a significant convenience for investors and businesses along the Vistula River. An example is the ability to perform all financial reporting activities in an IT service. Another example is the growing interest in the simplified joint-stock company (PSA), introduced just over two years ago, which requires only 1 PLN of capital and has straightforward management and liquidation rules. The turmoil related to the introduction of the Polish Deal has also passed, which is welcomed by businesses and improves sentiment.” – explains Joanna Romańczuk, Director of TMF Group for Central and Eastern Europe, highlighting positive changes in conducting business in Poland. At the same time, Poland performs the worst regarding ease of doing business compared to neighboring countries (excluding Belarus, not included in the ranking), including Ukraine. “The position of a country in the ranking is determined by the complexity of internal business rules and how other countries in the ranking handle such issues. While we see positive signals in Poland, our neighbors are better at facilitating business establishment and operation, even war-torn Ukraine. Ukraine has the status of a candidate country for the European Union. Therefore, the government is introducing many business facilitations, and the pace of reforms is very rapid. For example, no penalties are imposed for self-corrected tax returns. Additionally, attractive solutions for businesses, such as favorable tax conditions and automatic intellectual property protection, are being implemented in the IT sector.” – adds Joanna Romańczuk. TMF Group experts point out that entrepreneurs in Poland are burdened by the necessity of repeatedly reporting the same information to various institutions and the long-standing variability of regulations, such as the announcement of the National e-Invoice System (KSeF), followed by the postponement of its implementation, which caused significant costs for many large organizations to adapt to its introduction. Among the countries where it is most difficult to conduct business, European countries dominate – Greece, which swapped places with France for the top spot this year. They are followed by Colombia, Mexico, and Bolivia. In Europe, it is also more difficult to conduct business in Italy, Belgium, Spain, and Croatia than in Poland. The Cayman Islands (a British Overseas Territory), Curaçao (a Dutch Overseas Territory), Denmark, Hong Kong (a Special Administrative Region of China), and New Zealand are the best in the world at eliminating business obstacles. In Europe, besides Denmark, which has consistently held top positions in this category for years, the Netherlands, the United Kingdom, the Czech Republic, Malta, and Ireland are the most business-friendly countries. “Last year, I gave examples of Denmark, which has long been a global leader in business-friendliness, and the Netherlands, the United Kingdom, and Malta. This year, the Czech Republic also shows that Europe can be very business-friendly, competing even with the United States. No one doubts that it would be beneficial for Poland to join the ranks of leaders in this field in the coming years,” concludes Joanna Romańczuk. In addition to analyzing business conditions in 79 jurisdictions, the authors of the TMF Global Complexity Index 2024 (GBCI) also identify key topics shaping the global business landscape and regulatory environment: Impact of Global Regulatory Compliance on Foreign Investments The authors of this year’s GBCI emphasize that representatives of most jurisdictions expressed confidence in the stability of regulations over the next five years, continuing a trend of increased stability compared to previous years. For example, in 2020, representatives of only 35% of jurisdictions predicted no significant regulatory changes. This sense of stability has grown yearly, reaching 58% of jurisdictions in 2024. Experts suggest that the number or complexity of regulations is not the biggest challenge, but the speed of regulatory changes is the real difficulty. Geopolitical Factors and Bridge Economies Geopolitical instability has an obvious impact on the flow of trade and investment worldwide. While energy prices remain high, supply chain disruptions and trade barriers also pose significant challenges for global players. As a result, many companies are reevaluating their potential growth plans and long-term expansion goals. However, while geopolitical issues may disrupt supply chains or create trade barriers for some jurisdictions, others benefit from global shifts. Due to their neutrality on global issues, countries known as “bridge economies” can capitalize on their unique positions. For these countries, their newly established roles in the global supply chain have become a crucial way for international companies to manage their risks during periods of international instability. Uncertain Times and Success Strategies – Technology and Retaining Employees Although jurisdiction representatives cited various factors influencing growth, IT and technology topped the list as the most influential. Technology offers growth opportunities in multiple ways, providing development possibilities where countries have technological expertise in production and can increase market share through production. The use of technology to increase productivity has also been identified in terms of streamlining work. In many jurisdictions, including New Zealand and Hong Kong, companies automate office, basic, and part-time work using artificial intelligence to keep the workforce size low and focus on higher-value tasks. At the same time, the vast majority of jurisdictions face challenges in attracting and retaining talent (78%), with this figure even higher in the EMEA (90%) and APAC (79%) regions. The ability to respond effectively to demand in this area largely depends on two factors: local labor laws and the potential of regional talent. Jurisdictions with restrictive labor laws and a strong presence of trade unions – or those with a shortage of available talent – are naturally much less able to flexibly adjust employment levels.

한국어로 읽기Leer en españolIn Deutsch lesen Gap اقرأ بالعربيةLire en françaisЧитать на русском In March and April, Vietnamese Foreign Minister Bui Thanh Son’s nearly back-to-back visits to the U.S. and China highlighted Vietnam’s increasing penchant for delicate diplomacy with major powers amid the U.S.-China strategic competition in the Indo-Pacific and Vietnam’s territorial tussles with China especially in the South China Sea (SCS), which Vietnam calls the East Sea. Much of the (perceived) disorder in the Indo-Pacific hails from the SCS, and one of Vietnam’s principal challenges is fostering order on its maritime borders. Therefore, Vietnam—historically distrustful of major powers—has been diversifying its relations by seeking security and defense ties with Indo-Pacific partners like the European Union (EU), India, and Japan, as well as with Russia, a country that poses an “existential threat” to the transatlantic allies. At the same time, Southeast Asia is battling disunity within the region for resolving disputes in the SCS, for instance. The regional multilateralism embodied by the Association of Southeast Asian Nations (ASEAN) seems to lack teeth even as China ‘controls’ some of its members using its financial and economic heft. So clearly, efforts beyond Vietnam’s “bamboo diplomacy” that deepen international solidarity are required. In a similar vein, Europe’s reluctant rapprochement with China in recent times amid the EU calling China a strategic challenge but continuing to look for economic engagement is reminiscent of Vietnam and much of Asia’s predicament vis-à-vis China. Moreover, like in Southeast Asia, not every member-country of the EU is embracing the Indo-Pacific construct, led by the U.S. Or even if a member does, like France or Germany, it does not spell the end of a productive relationship with China. Nonetheless, it is clear that the EU has started to take a greater interest in the growing geopolitical situation in the Indo-Pacific, even as the disunity over the extent of the Indo-Pacific priorities, including China, is as apparent. In such a scenario, is it possible for the EU and Vietnam, and by extension ASEAN, to have greater convergence, if not congruence, in their policies? Revisiting Vietnam’s Lack of an Indo-Pacific Tilt The Indo-Pacific, the maritime space and littoral between the western Indian and Pacific Oceans, has become the world’s most geopolitically critical region. In this region, much of the focus and debate among the EU’s more proactive members, such as France, the Netherlands, and Germany, is in response to Chinese unilateralism, trade dependency, and unchecked Sino-U.S. contestation. Several of these EU members have come to understand each other’s positions on the Indo-Pacific. Gradually, there is a realization that it is not just about what the EU and its members seek to accomplish in the region but just as much the perspectives and priorities of key Indo-Pacific resident actors—and their views on European strategies and contributions. Vietnam is one such country that is worthy of greater European strategic attention. Vietnam is known for its “bamboo diplomacy”—a reference to the bamboo plant’s strong roots, sturdy stems, and flexible branches—balancing ties with the two big powers, the U.S. and China. In the words of Foreign Minister Bui Thanh Son, Vietnam’s foreign policy caters to “independence, self-reliance, peace, friendship and cooperation, and multilateralization and diversification of external relations and proactive international integration.” However, Hanoi has never officially and fully embraced the term “Indo-Pacific” nor the U.S.-led Indo-Pacific construct although it does recognize that some aspects of the Free and Open Indo-Pacific tenet advocated by the U.S. and its allies are compatible with its national interests. For instance, the order in the Asia-Pacific, a term that Hanoi prefers to use, should be rule-based. This speaks to one of Vietnam’s most important foreign policy priorities: finding peace and stability in the SCS disputes with China and other claimants. However, the order that Vietnam seeks is in more than just the security domain. The goal of development has been the highest priority since Doi Moi (renovation) in 1986. Economic growth is considered the backbone of national security and regime legitimacy. Hanoi’s development of foreign relations can be said to be grounded in its national development experience, with the stress on economic priority leading to national stability and international standing. Vietnam chooses to engage in the Indo-Pacific construct on its terms. Vietnam and EU Convergence On both economic and security fronts, Vietnam and the EU can find converged interests that align closer to each other. Even as Hanoi has not officially adopted the term “Indo-Pacific,” the EU’s Indo-Pacific strategy, if implemented well, could address both Vietnam’s economic and security needs. Despite its security and military power limitations in the Indo-Pacific, the EU can still play a crucial role in effectively addressing these needs, which are vital for the EU’s strategic interests as well. The two already have a Framework Participation Agreement. Vietnam is also part of the EU’s Enhancing Security In and With Asia (ESIWA) project, which covers crisis management and cyber security. This also aligns with the EU’s Indo-Pacific Strategy, where Vietnam is considered a “solid” partner. Notably, both the EU and Vietnam face (potential) economic coercion from China. As China is now Vietnam’s largest trading partner, sudden trade restrictions hindering Vietnamese exports to China would dramatically hurt the Vietnamese economy. In this vein, Hanoi welcomed the EU-Vietnam Free Trade Agreement (EVFTA), hoping it would give opportunities to diversify its trading partners and thus mitigate the risks of economic coercion from China. On the other hand, the EU and its member-states are also trying to increase economic resilience by diversifying trading partners as they wrestle with economic overdependence on China. So, strategically, Brussels presents an excellent opportunity for Hanoi and vice versa. However, challenges remain. For example, all the EU member-states are still to ratify the Investment Protection Agreement signed along with the EVFTA. Even though this is usually a time-consuming procedure, the imperative to reap benefits as soon as possible has taken a setback amid a challenging geopolitical landscape. Nonetheless, the two sides are concerned about more than just traditional economic development; they are concerned about sustainable development and green transition. For instance, under the EU’s Global Gateway framework, the EU and Vietnam have signed the Just Energy Transition Partnership (JETP), which looks to provide a multi-projects credit facility worth €500 million. This is supposed to be the EU’s primary focus in Vietnam now. Yet, Hanoi’s cautious approach for fear of falling into any potential debt trap could stymie smooth cooperation. Projects involving vast sums of money, such as the JETP, are also practically challenging to push at the moment as officials are afraid to be the targets of the Communist Party of Vietnam’s anti-corruption campaigns. Vietnam would also be keen for ASEAN and the EU as blocs to reinvigorate multilateralism and shore up security cooperation, particularly in the SCS disputes. ASEAN states, in general, are looking to the EU as a non-threatening balancing power to reduce the impact of the China-U.S. strategic competition. Among the potential areas of cooperation between the EU and Vietnam within the ASEAN are regional climate action measures, food security, digitalization, and tech innovation. The two sides must also use their partnership to realize an ASEAN-EU FTA. EU as a Security Balancer? The EU and Vietnam also share their commitment to upholding the rules-based order—an essential component of security cooperation because of the region’s strategic importance. However, improving communication and understanding of maritime incidents more effectively is challenging. The SCS territorial conflict is simmering, particularly between China and the Philippines. In 2016, an arbitration tribunal constituted under the United Nations Convention on the Law of the Sea (UNCLOS) overwhelmingly ruled in favor of the Philippines, which China rejected. However, the ruling bolstered Vietnam’s claims, which were not openly welcomed by other ASEAN states besides the Philippines. In the absence of an agreement for a code of conduct (CoC) between China and ASEAN, which has been dragging on for years, China’s violations of international law in the SCS, including the latest against Vietnam in the Gulf of Tonkin, have increased. Against this scenario, Vietnam and the Philippines have signed maritime security deals. At the same time, Vietnam would be reluctant to do anything more drastic, such as support the Philippines in its attempt to draft a “separate” CoC for fear of Chinese retaliation. While Vietnam is less discussed in major global media than the Philippines on the issue, Hanoi is actively using diplomatic means to internationalize the problem, bringing in more players to address complex territorial disputes to safeguard its sovereignty and promote regional peace. In this context, winning the support of the EU and its member-states would be strategically important for Vietnam. The Vietnamese side can facilitate this by providing foreign entities, including the EU, with more transparent and timely information when incidents occur. Naturally, using a media strategy like the Philippines might sensationalize the issue, which might be different from what Hanoi prefers as it walks a tightrope to balance its complex relations with China. However, Hanoi can at least offer foreign diplomats transparent and detailed information in a timely fashion to help them verify and assess the situation on the ground. This will speed up the EU’s and other potential like-minded states’ response to sea incidents and foster ways forward for more multilaterally agreeable forms of modus vivendi in the South China Sea. Ultimately, such a modus should serve China too. EU No Longer a Bystander The EU’s recent stance on the SCS issue has been its respect for a rule-based order and freedom of navigation, strong opposition to unilateral actions, and supporting the ASEAN-led “effective, substantive and legally binding” CoC while mentioning China but not singling it out. This is a change from the EU’s pre-Indo-Pacific embrace when it was a more divided, neutral house. The EU’s heavy dependence on maritime trade through the SCS mandates that the EU can no longer stand as a bystander. However, ASEAN claimant states, particularly Vietnam, would perhaps expect a sharper or clearer position, which the EU has indeed been moving toward. For example, in March 2024, the EU released a statement expressing concerns about the incidents involving “repeated dangerous maneuvers” by the Chinese Coast Guard and Maritime Militia in the SCS. This tilts to the U.S. line, even as the U.S. has been more vocal in directly criticizing China on the SCS, by calling China’s claims “completely unlawful” even before the current events. One could argue that despite the U.S. and its allies having been vocal, this has yet to lead to a concrete resolution of the conflict. However, if the EU cannot send clear signals on the issue, the division among like-minded countries will be seen as weak and exploitable in China’s eyes. Importantly, this is true not just for the SCS disputes but also for China’s coercive activities in general. Therefore, given the convergent non-confrontational, inclusivity-, and economic interests-oriented attitudes of both Vietnam and the EU toward the Asia-Pacific/Indo-Pacific region, both sides are primed to embrace the other’s strategic outlook and up their game in the face of a challenging China and efforts to foster order.

한국어로 읽기Leer en españolIn Deutsch lesen Gap اقرأ بالعربيةLire en françaisЧитать на русском With Indonesian President Joko (Jokowi) Widodo fast approaching the end of his 10-year term and the February election result now official, it’s time to consider how incoming president Prabowo Subianto will shape the country’s strategic and defence affairs. While the country’s overall strategic outlook is unlikely to shift, there are some changes the new president and new defence minister could—and should—make. First and foremost, as current defence minister, Prabowo will continue to oversee the much-needed military modernisation program, which aims to strengthen the country’s maritime defences by upgrading the navy and air force. It has been Prabowo’s priority and was one of his election promises. But there is a lack of coherence in Prabowo’s approach that is problematic. The program, which promises fighter jets, submarines and patrol boats, had in 2023 only met 51 percent of its targets for the air force, and 60 percent and 76 percent for the army and navy, respectively. His flurry of travel as defence minister from 2019 yielded the signing of contracts for acquisitions from the US, France, Turkey, South Korea and Britain, as well as deeper overall defence ties. Yet, as the ill-fated attempt to acquire second-hand Mirage 2000 fighters from Qatar attests, it is unclear whether these purchases from multiple suppliers will further strengthen Indonesia’s defence posture or fragment it. Additionally, questions remain whether these big-ticket items are appropriate for service requirements or simply provide opportunities for sectioning off parts of the national budget. The new Prabowo administration must also address the inevitable tension between the need to invest in maritime defence and the ongoing primacy of the army. Of Indonesia’s contemporary security challenges, several are land-based and pressing: the army is still heavily relied upon for disaster relief and food security and is tasked with maintaining a sprawling territorial presence. The military must balance deterring potential threats from a larger adversary and attending to internal emergencies facing 280 million citizens on land. Effective deterrence in the region is critical, given China’s shameless bullying of Indonesia’s partners, such as the Philippines, in the South China Sea. Such efforts would be considerably aided by the publication of a new defence white paper or strategic update. The last such document, the 2015 white paper, was issued nearly a decade ago. An update would shift Indonesia’s strategic thinking away from threats such as communism and total people’s defence and help articulate the nation’s own ideas of deterrence. A new strategic document would also allow Indonesia, as Southeast Asia’s largest state and a key Indo-Pacific player, to lead its regional neighbours by example. This is critical given the contemporary security landscape marked by wars threatening food security, sharpened US–China strategic competition, tensions in the South China Sea and climate change pressures. Lastly, such a document would help outline a new phase of military modernisation and detail the government’s response to grey zone threats, particularly in the cyber realm. It should also provide transparency about how the national budget would be spent. And yet we’re unlikely to see any shifts in prevailing strategic thought anytime soon. Unlike his predecessor Jokowi, Prabowo has a personal interest in the defence portfolio and will appoint loyalists to defence and security roles to protect his legacies. An unofficial mock-up of the cabinet floated on social media shortly after the election pictured retired Lieutenant General Sjafrie Sjamsoeddin, Prabowo’s confidante and classmate in the special forces (Kopassus) as defence minister, and retired Lieutenant General Muhammad Herindra, also from Kopassus, staying on as deputy defence minister. That‘s probably not far off what will happen. Prabowo and his ex-Kopassus coterie hold the realist’s world view that might equals right. Prabowo has even written a book on how Indonesia’s military must assiduously protect the country’s natural resource wealth from foreign actors. His deputy Herindra said in an interview last year that ‘the world is anarchistic, chaotic. If we are weak, we will be eaten. It is not about Indonesia not having a power projection; we just want to defend our nation’s sovereignty.’ As for other key positions, such as the military and police chiefs, Prabowo will inherit Jokowi appointees who will serve out their terms for the first few years. They are considered loyal to Jokowi’s interests but often also have links to Prabowo. For example, while the current army chief of ataff, General Maruli Simanjuntak, is the son-in-law of Jokowi’s senior minister and adviser Luhut Binsar Panjaitan. Luhut reportedly has good relations with Prabowo through their shared background in Kopassus. For partners like Australia, Prabowo as defence minister has helped ensure that Indonesia is a good neighbour. Under his watch, defence cooperation has deepened, with Indonesian military cadets graduating for the first time from Australian Royal Military College, Duntroon. Prabowo has also maintained good relations with Australia’s key ally, the United States, meeting several times with Defense Secretary Lloyd Austin and overseeing the return of Indonesian cadets to American military academies. But Indonesia’s military needs investment and support in developing scenario-based planning and joint operations. These are areas in which Australia, the US and other partners can make valuable long-term contributions. As president, Prabowo will want Indonesia to remain a good neighbour to Australia and, notwithstanding unforeseen events provoking pushback from the Australian public or inciting Prabowo’s nationalist sentiments, he should have every chance of success. To achieve regional stability in the prevailing strategic environment, everybody needs good neighbours.

한국어로 읽기Leer en españolIn Deutsch lesen Gap اقرأ بالعربيةLire en françaisЧитать на русском The protests by the Kanak population are taking place against an electoral reform that will further benefit the settlers recently established on the island. In the background are the profits from nickel mining, which the metropolis wants to monopolize. The riots in New Caledonia have led the Government of the French Republic to intensify repression on the Pacific Island. This week, High Commissioner Louis Le Franc has announced that the police presence would be increased, nearly doubling from 1,700 to 2,700 officers. Officially, five people, including two police officers, have died in the clashes, which have arisen due to a legal change in the system of electing representatives that discriminates against the indigenous Kanak population, who make up 40% of the total population. The clashes are also a result of the deep inequality between the Kanak people and the settlers, who are organized into militias, and are said to have carried out executions of civilians. Kanak organizations claim that the death toll among civilians could be higher. Since Wednesday, May 15th, an emergency state has been declared in the archipelago, and the army has been deployed around ports and airports. More than two hundred people have been detained. The situation has worsened due to problems accessing food — due to distribution issues, according to the island government — and healthcare services, which have arisen since the unrest began in early May. The government has stated that in several neighborhoods, "control is no longer assured," and they hope to dismantle the barricades with explosives placed by the masses of protesters. It is estimated that there are around 9,000 protesters, of whom 5,000 are in Nouméa, the capital, especially in the neighborhoods of Kaméré, Montravel, and Vallée-du-Tir. Additionally, the metropolis has banned access to TikTok — a network used for information among the protesters — and the Ministry of Justice has announced "harsher penalties against rioters and looters." The Ground Action Coordination Cell (CCAT) is the main organization of the Kanak population and has linked the protests to the "methodical sabotage of the decolonization process by the French state" from the very beginning. The fact is that since 1986, New Caledonia has been part of the territories to be decolonized according to the United Nations. "Since Emmanuel Macron came to power, France has radically sabotaged the decolonization process," stated the anticolonial organization Survie in a statement. The government's response has been to discredit the CCAT as a "mafia-like" organization and to denounce foreign interference from Azerbaijan, a country which, according to the Élysée Palace, would be seeking revenge for France's support of its Armenian rivals in the Nagorno-Karabakh conflict. Why do protests arise in New Caledonia? The protests arose in response to a reform by the French government aimed at expanding the electorate for provincial elections in New Caledonia, a territory with an estimated population of 300,000 people. The plan involves extending the right to vote to the recently settled colonial population, around 25,000 people, which would further exclude 40% of the island's indigenous population from the representative system, who are the most affected by poverty and exclusion. The settlers are already able to vote in French presidential and municipal elections, but the plan would change the balance in provincial elections. Thus, supporters of independence and the Kanak population interpret that the "Nouméa Accord" of 1988, which grants more guarantees to the Kanak population, would be reversed in order to further privilege the settlers who have gradually been settling in the territory, attracted by tax benefits and the relationship between their high salaries with European standards and the low prices in the archipelago. This is yet another nail in a hardline shift directed by Macron's government, which in 2021 imposed a referendum to shore up French colonial power over the archipelago despite demands for postponement from the Kanaks and significant voices in French society, who called for respect for the Kanak mourning for those who died from COVID-19. As expected, abstention determined the results. The current constitutional bill to "unfreeze" the electorate, which has been voted on in the Senate and must be endorsed by the French Assembly, has sparked multiple protests, including strikes at the port and airport of Nouméa, closure of numerous administrations, the beginning of a riot at the Nouméa prison, and clashes between police and youth from working-class neighborhoods of Nouméa. As noted in an article from the environmentalist newspaper Reporterre, the control of New Caledonia is strategic for France. The island hosts between 20 and 30% of the world's nickel resources, a resource used in the manufacturing of batteries for electric cars. One out of every four people works in the nickel sector, despite which the industry is in crisis, leading the metropolis, under the guidance of Bruno Le Maire, Minister of Economy, to present a "nickel pact" that would introduce millions in aid to the sector but, at the same time, reverse a 1998 agreement by which the island secured management of the nickel. The proposed pact, explained by an expert cited by Reporterre, "completely departs from the model of mining revenues that benefit New Caledonia for its own development" and follows point by point with a neocolonial logic. Additionally, the metropolis aims for the archipelago to export more raw material, which would lead New Caledonia to lose the added benefit of in-situ nickel processing.

한국어로 읽기Leer en españolIn Deutsch lesen Gap اقرأ بالعربيةLire en françaisЧитать на русском Kenyan President William Ruto will attend a rare U.S. state reception for an African leader on May 23, 2024 – but much of the chat will be about a third country: Haiti. Kenyan troops are preparing to deploy to the Caribbean nation as part of a U.N.-backed mission aimed at bringing stability to a country ravaged by gang violence. The White House event is in part a recognition by Washington of Kenya’s decision to step up to a task that the Biden administration – and much of the West – would rather outsource. Indeed, Haiti has seemingly become a crisis that most international bodies and foreign governments would rather not touch. The U.S., like other major governments in the Americas, has repeatedly ruled out putting its own troops on the ground in Haiti. As someone who has written a book, “Fixing Haiti,” on the last concerted outside intervention – the United Nations’ stabilizing mission known as MINUSTAH – I fear the lack of action by countries in the Americas could increase the risk of Haiti transitioning from a fragile state to a failed one. MINUSTAH was the first U.N. mission formed by a majority of Latin American troops, with Chile and Brazil taking the lead. The outsourcing of that role now to Kenya has sparked concerns from human rights groups. It should also lead to soul-searching questions in capitals from Washington to Brasília, as well as at United Nations headquarters in New York. At the mercy of gangs Haiti’s descent into chaos began almost three years ago with the murder of President Jovenel Moïse in July 2021. Lawlessness in the nation has seen gangs take control of an estimated 80% of the capital Port-au-Prince and thousands killed in the spiraling violence. Today, the country is not only the poorest in the Americas but is also among the most destitute in the world. About 87.6% of the population is estimated to be living in poverty, with 30% in extreme poverty. Life expectancy is just 63 years, compared with 76 in the United States and 72 in Latin America and the Caribbean as a whole. Recipe for disaster International intervention in Haiti has been long overdue. Yet, until now, the attitude of the international community has, from my perspective, been largely to look away. From a humanitarian perspective and in terms of regional security, to allow a country in the Americas to drift into the condition of a failed state controlled by a fluid network of criminal gangs is a recipe for disaster. Yet governments and international organizations in the region are unwilling to step up to confront the crisis directly despite pleas from Haiti and the U.N. The Organization of American States, which in the past played an important role in Haiti and for which I served as an observer to the country’s 1990 presidential elections, and the Community of Latin American and Caribbean States have been criticized over their slow response to the Haitian crisis. The Caribbean Community, or CARICOM, has made a significant effort, holding a number of meetings on the Haitian crisis; several member states, such as the Bahamas, Barbados and Jamaica, have committed to sending police forces to Haiti, albeit in small numbers. The United States, in turn, having left Afghanistan in 2021 after a tumultuous 20-year occupation, appears reluctant to send troops anywhere. Rather, Washington would prefer that others take up the role of peacekeeper this time. In response to the offer from Kenya, the State Department said it “commends” the African nation for “responding to Haiti’s call.” Part of this reluctance in the Americas could also be related to the perception – in my view, a misperception – of how past interventions have played out. The United Nations mission from 2004 initially managed to stabilize Haiti after another rocky period. In fact, the country made significant strides before it was hit by a devastating earthquake in 2010. There were bad missteps, for sure, after 2010. A cholera outbreak brought to Haiti by infected troops from Nepal resulted in more than 800,000 infections and 10,000 deaths. Sexual misconduct by some of the U.N.’s blue helmets further tarnished the mission. But the notion that MINUSTAH was a failure is, in my view, quite wrong. And the end of the mission in 2017 certainly didn’t see improved conditions in Haiti. Indeed, after the mission ended, criminal gangs had the run of the country once again and proceeded accordingly. Yet the perceived failure of the U.N. mission has become the basis of a view held by some Haiti watchers that international interventions are not only unsuccessful or misconceived but also counterproductive. Such a view forms the backbone of the notion of Haiti as an “aid state” – as opposed to a “failed state.” In this view, international interventions and the inflow of foreign funds have created a condition of dependency in which the country gets used to having foreigners make key decisions. This, the argument goes, fosters a cycle of corruption and mismanagement. There is no doubt that some previous interventions left much to be desired, and that any new initiative would have to be conducted in close cooperation with Haitian civil society to avoid such pitfalls. But I believe the notion that Haiti, in its current state, would be able to lift itself up without the help of the international community is wishful thinking. The nation has moved too far down the direction of gang control, and what remains of the Haitian state lacks the capacity to change that trajectory. A duty to intervene? Moreover, there is an argument to be made that the international community bears responsibility for the Haitian tragedy and is duty bound to try to fix it. To use one example from the relatively recent past: Haiti, until the early 1980s, was self-sufficient in the production of rice – a key staple there. Yet, pressured by the United States in the 1990s, the country lowered its agricultural tariffs to the bare minimum and, in so doing, destroyed local rice production. Former U.S. President Bill Clinton later apologized for the policy, but its legacy still lasts. Haiti today has to import most of the rice it consumes, largely from the United States. And there isn’t enough of it to go around for all Haitians – the U.N. estimates that nearly half of Haiti’s population of 11.5 million is food insecure. Indeed, from its very beginning as an independent nation in 1804, Haiti has suffered the consequences of its unique place in history: It was simply too much for white colonial powers to see Haiti thrive as the first Black republic resulting from a successful slave rebellion. France retaliated over the loss of what was once considered the world’s wealthiest colony by exacting reparations for a century and a half. Payments from Haiti flowed until 1947 – to the tune of US$21 billion in today’s dollars. The United States took 60 years to recognize Haiti and invaded and occupied the nation from 1915 to 1934. Any thoughts of atoning for past actions, however, seem far from the minds of those looking on as the chaos in Haiti spirals. Rather, many appear to have the kind of mindset expressed in 1994 by current U.S. President Joe Biden when, as a senator discussing the rationale for various interventions, he noted: “If Haiti just quietly sunk into the Caribbean, or rose 300 feet, it wouldn’t matter a whole lot for our interests.”

한국어로 읽기Leer en españolIn Deutsch lesen Gap اقرأ بالعربيةLire en françaisЧитать на русском It is not surprising that China’s Xi Jinping should visit France, Europe’s second largest economy and one of the dominant nations within the European Union. But why should he visit comparatively small and economically less important nations such as Hungary or Serbia? The answer lies not merely in the economic opportunities such a visit may bring to all parties, but in the increasingly anti-American themed politics of the three nations, and their governments’ belief that the future of international politics is a multi-polar order dominated by “civilization states.” These two factors make China, which promises to free the world from American political, economic, and cultural dominance and establish a new multipolar order, an attractive partner for France, Serbia, and Hungary. Equally, it makes them attractive to China, which seeks to divide Europe and the United States, and build greater economic and political ties with European nations desirous of a “new” Europe free of American dominance. Xi portrays China as not merely a nation-state, but a continuation of Ancient Chinese culture merged with Marxism. Xi is adamant that China must draw on its civilizational heritage, and reject the values of Western civilization, which are not – he argues – universal, but indeed particular to the West and thus unsuitable for China. Xi’s remark that China “will work with France to deepen China-Europe mutually beneficial cooperation,” and that the two are “major forces in building a multipolar world, two big markets that promote globalization, and two great civilizations that advocate cultural diversity,” underlines this civilizational perspective on global politics. Civilizationism, as a construct, is thus a tool of liberation through which Xi will free China of non-indigenous values and ideas, and through which it will overcome the United States and make the Chinese nation Asia’s dominant power. The leaders of both China and France, despite their differences, are drawn together due to shared antipathy towards the United States, and their shared civilizational perspective on global affairs, a perspective intrinsically connected with their anti-American politics. Naturally, China and France do not share the same opinion of the United States. China views America as a rival; France views America, perhaps, as a perfidious ally forcing “Anglo-Saxon” culture upon an unwilling French people. Experts have noted the importance Emmanuel Macron places on rejuvenating what he calls European Civilization. Indeed, where right-wing populist Marine Le Pen calls for the protection of France’s Judeo-Christian yet secular civilization, Macron is moving beyond the nation-state paradigm and speaking of centralising power within the European Union in order to protect otherwise moribund European civilization. Macron is very concerned about the future of European civilization, and believes that it represents the best of humanity and must therefore protect its “humanist” values. For Macron, European civilization has many enemies. But perhaps the key enemy is the United States, which is an enemy precisely because it is an anti-civilizational power that defends the nation-state paradigm, insists that its values are universal, and desires a relatively weak Europe. Macron argued that Europeans should take inspiration from the “civilisational projects of Russia and Hungary” and what Macron called their “inspiring cultural, civilisational vitality.” He says European civilization is “humanist,” and that to survive it must reject the “Anglo-American model” which permits the private sector to gain enormous power over human life. This position, of course, also rejects the Chinese model, in which the government is given total control over human life. Hungary and Serbia Victor Orbán is drawn to Xi in much the same way as Macron: both believe the rise of civilization states, such as China, as ineluctable, and both believe that China’s rise provides an opportunity for their respective states – if not civilizations – to free themselves from Anglo-American norms. Although Orbán possesses a civilizational rejuvenation project, it is of an entirely different nature to Macron’s “humanist” plan for Europe. Orbán calls for the re-Christianization of Europe, and for the strengthening of the nation-state and its borders, and he speaks not so much of European civilization but of Judeo-Christian civilization. Orban says, “the US ought to permit illiberal states – such as Hungary – to determine their own futures rather than impose ‘universal values’ upon them in an effort to prevent war.” China’s rise comes at the expense of Orbán’s liberal democratic foes (i.e. Washington and Brussels), decreasing their ability to pressure Hungary to return to liberal democratic norms. Equally, because China is ruled by an authoritarian populist who has a civilizational perspective on international relations, the rise of China legitimises Orbán’s own authoritarianism and his civilizational rejuvenation project. It should come as no surprise that the date Xi chose to visit Serbia coincided with the 25th anniversary of the American-led NATO bombings of Belgrade’s Chinese embassy. The two nations have become increasingly close since the 2012 election victory of the governing populist Serbian Progressive Party (SNS), which sees China as both a source of economic growth and technological development, and also as a partner that is less likely to criticise Serbia’s refusal to sanction Russia, and its often socially conservative politics. Thus, President Aleksandar Vučić received Xi in Belgrade in a ceremony during which he promised the Chinese leader that he would receive in Serbia a degree of “reverence and love” not “found anywhere else.” He further promised that his government would only increase cooperation with Beijing, saying “the sky is the limit.” Xi authored an article in Serbia’s Politika news outlet noting that China and Serbia have similar positions on many important international and regional issues. In the piece, Xi is indirectly calling for Serbia to assist China in challenging US and Western dominance in the international sphere. Experts noted that “Serbia’s hosting of Xi is connected to broader efforts — notably by Moscow and Beijing — to challenge U.S. influence and potentially reshape the international order.” Conclusion Xi’s tour of France, Hungary, and Serbia demonstrates the growing influence of China in Europe. But it also tells us much about how some Europeans are responding to China’s rise as a self-styled civilizational power. This rise has inspired some European leaders to challenge US dominance in international politics and embrace the core values of “European civilization.” Many of Europe’s states thus may seek to emulate China, or help it rise and attempt to politically and economically benefit from it. Moreover, China’s rise seems to demonstrate how by rejecting normative Anglo-American (or more broadly Western) values, and embracing the traditional values and culture of one’s own civilization, these states can overcome American imperialism and cultural hegemony. Whether rejecting Western Anglo-American norms and embracing their own civilizational values can give these entire nations a shared purpose, and inspire reindustrialization, remains an unanswered question. Ihsan Yilmaz is a research professor of political science and international relations at Deakin University’s ADI (Alfred Deakin Institute for Citizenship and Globalisation). Previously, he worked at the Universities of Oxford and London.  Nicholas Morieson holds a Ph.D. in politics from the Australian Catholic University, Melbourne, and a Masters in International Relations from Monash University. He is the author of Religion and the Populist Radical Right: Christian Secularism and Populism in Western Europe, and a Research Fellow at the Alfred Deakin Institute for Citizenship and Globalisation.

한국어로 읽기Leer en españolIn Deutsch lesen Gap اقرأ بالعربيةLire en françaisЧитать на русском Summary • Since Russia’s full-scale invasion of Ukraine, the EU has made strengthening energy sovereignty – its own and that of its eastern neighbours – a strategic priority. • Along with Ukraine and Moldova, the EU has created an elaborate legal and institutional framework that provides a platform for energy cooperation. • Through this framework and other measures, the EU and member states have helped significantly strengthen the energy sovereignty of Moldova and Ukraine, in particular helping them to diversify away from Russian fossil fuels and synchronising their electricity grids with that of the EU. • But when it comes to the cleanness and efficiency of their energy, Moldova and Ukraine are still underperforming, despite their potential for green energy generation. Improving the cleanness of their energy would also help strengthen the EU’s energy sovereignty, increasing the mutual benefits of closer energy cooperation. • Ukraine’s vast gas reserves and extensive gas infrastructure, along with its potential for green hydrogen production and the significant development of renewable energy sources in both countries offer opportunities for cooperation with the EU, which could enhance both its energy security and decarbonisation efforts. Introduction Since the beginning of Russia’s war on Ukraine, strengthening energy sovereignty has become one of the most strategic foreign policy goals of the European Union, its member states, and many other countries. Before the war, Russia was the EU’s largest source of imports of crude oil and petroleum products and in 2021 the state-owned energy corporation Gazprom accounted for 41 per cent of the EU’s gas imports. In the aftermath of the invasion, the EU and member states scrambled to reduce their dependency on Moscow for energy supplies, diversifying their suppliers of oil and gas. In 2023, Gazprom’s share of the EU’s gas imports fell to just 8 per cent. But the EU also has a clear interest in strengthening the energy sovereignty of its neighbouring countries, especially of Ukraine and Moldova on its eastern border. The stable functioning of the energy systems of neighbouring countries is one of the cornerstones of their security, and therefore the stability and security of the EU’s immediate neighbourhood. The European Commission has thus identified supporting Ukraine and other countries that are directly or indirectly affected by Russian aggression through long-term international partnerships as among the most important objectives of the EU’s external energy policy. Energy cooperation is also a powerful tool for integration. Energy sovereignty should not be equated with state energy autonomy or autarky; international cooperation within alliances or integration relationships such as the EU is an important component. Political allies can be reliable and secure suppliers of energy resources to import-dependent countries – the United States and Norway, for example, play such a role for many EU countries. The development of energy infrastructure links for gas or electricity between partner states, such as the EU and its eastern neighbours, would enable them to provide mutual support in times of crisis. The EU’s desire to strengthen energy sovereignty throughout its neighbourhood is first and foremost related to the need to reduce dependency on Russia and aid the integration of its neighbours. But strengthening energy sovereignty will also require a reduction in fossil fuel consumption, and is therefore closely linked to achieving one of the EU’s other major strategic goals of climate neutrality by 2050. The diversification of fossil fuel supply sources, while important, is not a long-term solution to the problem of energy sovereignty. Amid the current geopolitical uncertainties and the growing threat of climate change, decision-makers in the EU and in neighbouring countries need to now consider green energy and efficient energy use for a comprehensive approach to energy sovereignty. By strengthening its and its eastern neighbours’ renewable energy potential and optimising energy consumption, the EU can reduce the overall dependence on external suppliers of fossil fuels. The commission’s external energy policy combines these two goals, stating that the EU’s actions should be oriented towards meeting both short-term needs and long-term goals regarding the implementation of the European Green Deal. For this reason, I propose a broader approach to assessing energy sovereignty, which goes beyond the typical prism of security of supply to encompass four elements: • The level of dependence on energy imports, both fossil fuels and electricity; • The cleanness of the energy sector, determined by the importance of renewable energy in a country’s energy mix and the level of decarbonisation of the energy sector; • The level of energy efficiency; • The energy sovereignty narrative used by the state authorities in policy documents, which reflects the strategic direction of the state’s energy sector. This policy brief uses these criteria to analyse the progress that the EU and its eastern neighbours have made towards strengthening each other’s energy sovereignty so far, and sets out the next steps that they should take. It finds that, to date, the EU and its member states have played an important role in strengthening the energy sovereignty of its eastern neighbours by increasing their energy independence, but that Ukraine and Moldova still underperform when it comes to cleanness and efficiency, despite the direction implied by the states’ energy narratives – in part due to setbacks related to the war. Strategic cooperation formats between the EU and its eastern neighbours Over the last decade, the EU has developed a legal framework for cooperation with Moldova and Ukraine, which enables closer cooperation in various spheres, including energy. This approach fits into the EU’s so-called Team Europe external action policy for the two countries, which means that both EU and member state structures and European financial institutions, including the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD), are involved in the process. In total, the EBRD has committed to investing $3 billion in 2022 and 2023 to address the Ukrainian economy’s challenges following Russia’s invasion. Both countries are also associated states of the EU, and their bilateral relations with the bloc, including on energy, are governed by the association agreements, which came into force in July 2016 for Moldova and in September 2017 for Ukraine. The European Council’s decision in 2023 to grant both countries EU candidate status and start accession negotiations has further strengthened the relationship. The EU also invited Moldova and Ukraine to join the Energy Community in 2010 and 2011 respectively. The Energy Community’s main objective is to extend the principles and rules of the EU’s internal energy market to the countries of eastern Europe, the Black Sea region, and the Western Balkans, effectively integrating these countries into the EU’s energy market. Members of the Energy Community are obliged to implement EU energy regulations into their own national legal systems and to strengthen energy cooperation with EU countries. Both Moldova and Ukraine have already adopted several important pieces of legislation on the functioning of the gas and electricity markets. Ukraine has successfully implemented regulations liberalising its energy markets, including certifying independent system operators in the gas and electricity markets, and an independent gas storage operator. Furthermore, at the beginning of 2024, the country’s certified electricity operator Ukrenergo joined the European Network of Transmission System Operators for Electricity (ENTSO-E). Meanwhile Moldova completed the certification of its electricity transmission system operator Moldelectrica as an independent system operator in July 2023 and has taken steps to certify the independent system operator of its gas market. Both Ukraine and Moldova have also adopted the EU’s Regulation on Wholesale Energy Market Integrity and Transparency, which prohibits insider trading and the abuse of market power. In December 2023, Moldova also amended the Law on Natural Gas to help strengthen security of gas supply and storage, further aligning it with the EU’s energy acquis. Towards energy independence The deepening of Ukraine’s and Moldova’s integration with the EU has helped to strengthen their energy sovereignty, helping them in particular to reduce their dependency on Russia. Ukraine and, to an even greater extent, Moldova are dependent on energy imports. In April 2020, Ukraine was able to meet about 65 per cent of its energy needs on its own, while Moldova could only meet about 20 per cent. Although Moldova’s situation has not changed significantly in recent years, Ukraine’s dependence on energy imports fell to 23 per cent in 2022 as a consequence of the decline in the country’s energy consumption due to the war.  Gas Both Moldova and Ukraine have significantly strengthened their energy independence in the gas sector, including through cooperation with the EU and member states. This is particularly the case for Ukraine, whose own gas production now accounts for more than 90 per cent of domestic demand. (As recently as 2010, Kyiv’s dependence on gas imports was over 70 per cent, amounting to 34 billion cubic metres (bcm), which it imported almost entirely from Russia.) According to the 2023 annual data, Ukraine’s gas consumption has fallen by 30 per cent since the start of the war and it now imports gas mainly through Slovakia, but also Hungary, Poland, and Romania (transiting through Moldova). Ukraine’s journey towards independence from Russian gas supplies was, on the one hand, a consequence of political decisions taken by the new authorities in Kyiv, which came to power in 2014 after former president Viktor Yanukovych was overthrown and, in autumn 2015, stopped buying Russian gas. On the other hand, it was made possible by the support provided by EU member states and European financial institutions, which became particularly important following Russia’s full-scale invasion. In the summer of 2022, for example, the EBRD opened a $300m credit line to Ukraine’s national oil and gas company Naftogaz for emergency gas purchases. It also began to cooperate with the Energy Community to provide regular support to Ukraine, including an agreement in June 2023 to guarantee €600m in support for Ukrainian companies operating in the gas, electricity, and hydropower sectors. Unlike Ukraine, Moldova does not produce gas, has no gas storage facilities, and has only trace reserves of its own gas (about 1 bcm as of 31 December 2022), making it completely dependent on gas imports. Chisinau’s success in strengthening its energy sovereignty has nonetheless been impressive: it has significantly diversified its supply sources and achieved complete independence from gas purchases from Russia in December 2022. The EU, European financial institutions, and select member states have played an important role in this regard. The EIB has been financially supporting projects in Moldova since 2008, including those to strengthen energy sovereignty, such as the construction of the Ungheni-Chisinau gas interconnector. But in view of the energy crisis occurring in Europe from 2021 onwards, the EU initiated anti-crisis formats with Moldova as well. For example, the EU-Moldova High Level Energy Dialogue was set up to provide support to Moldova to guarantee the supply of energy resources (especially natural gas) and electricity during the energy crisis, but also to implement long-term energy projects. So far, five rounds of consultations have taken place between the EU and Moldova under this format, through which the partners have discussed crisis support, energy sector reforms, and long-term projects. In October 2021, Poland began supplying gas to Moldova, marking Moldova’s first imports of non-Russian gas in history. In addition to imports from Poland, Moldova managed to launch reverse gas supplies from Slovakia, as well as via the Trans-Balkan pipeline from Romania, and gained access to Ukrainian gas storage facilities, where it could store about 200m cubic metres (m3) of gas. Chisinau’s diversification efforts are continuing, as illustrated by its gas supply agreements with the Greek company DEPA in 2023. Financial support from European institutions, including the EBRD, and member states has also helped to facilitate these diversification efforts by enabling Moldova to finance purchases of gas or electricity from alternative suppliers. In 2022, the EBRD offered a loan of €300m to Moldova, and in October 2023 an agreement was reached for it to provide a further €165m in gas support to the country in the form of loans, with Norway promising an additional €34m gas grant. In addition, in November 2022, the Energy Community Secretariat launched the Energy Community Rescue Scheme initiative to ensure that donors’ financial assistance for Moldova was channelled towards helping the country face the harsh winter ahead. Meanwhile, the Energy Vulnerability Fund, which was established in 2022 by the Moldovan government with support from the EU, Slovakia, and the United Nations Development Programme, played an important role in neutralising the effects of rising gas, electricity, and heating bills in Moldova. Support for Moldova under this mechanism was provided by several European countries including the Czech Republic, Sweden, Italy, and Switzerland. Finally, in 2022 the EU created the energy platform for member states and countries such as Moldova and Ukraine, which is supposed to combine demand, coordinate the use of infrastructure, and facilitate negotiations with international partners for joint purchases of gas and hydrogen. Through this initiative, Ukraine and Moldova have taken part in tenders organised by the European Commission and received 100 per cent and 80 per cent respectively of the volumes requested after the first round of purchases. Oil When it comes to oil, both Moldova and Ukraine are highly dependent on imports, but EU countries have gradually replaced Belarus and Russia as their main suppliers since February 2022, thereby helping to strengthen their energy sovereignty. Moldova is 100 per cent dependent on imports of oil and petroleum products from third countries, with Romania now mainly supplying it with oil products. As a result of the war and Russia’s continued attacks on critical Ukrainian energy infrastructure, including storage facilities for petroleum products and oil, Ukraine has not been able to produce petroleum products on its own – its last operating refinery was closed in April 2022. These products are particularly sensitive for Ukraine, not just for civilian use, but for military needs. Despite its consumption of petrol, diesel, and liquefied petroleum gas falling by 25 per cent, 30 per cent, and 40 per cent respectively from 2021 to 2022, Ukraine has become more dependent on imports – 93 per cent dependent in 2022 compared with 77 per cent in 2021.[1] In 2021, Belarus accounted for about 43 per cent of Ukraine’s gasoline imports, and Belarus and Russia together accounted for about 62 per cent of its diesel imports.[2] In 2022, Ukraine significantly reduced imports from Belarus and Russia, and increased those from Poland, Romania, Bulgaria (these three countries covered 51 per cent of Ukraine’s diesel import needs in 2022), Turkey, Lithuania, Moldova, Greece, Hungary, and several other countries.[3] In 2023, Ukraine did not import petroleum products from either Belarus or Russia.[4]   Electricity Although Moldova and Ukraine are in completely different positions in their efforts to ensure a secure electricity supply, the synchronisation of the two countries’ power grids with the EU system in March 2022 significantly increased their energy sovereignty in this area. This was particularly important for Moldova, where 80 per cent of electricity needs are met by the Russian-owned Inter RAO gas-fired power plant located in the separatist region of Transnistria. In October 2022, following Russia’s attack on Ukraine’s energy infrastructure, Kyiv halted electricity exports to Moldova, leading to some blackouts. Electricity supplies from Transnistria were then completely terminated at the beginning of November. Moldova’s synchronisation with the EU grid allowed it to import electricity from Romania, which in November 2022, met 90 per cent of Moldova’s electricity demand. In June 2023, ENTSO-E increased the capacity of interconnectors connecting the EU with Moldova and Ukraine from 1050 to 1200 megawatts (MW). During the 2022-2023 heating season, around 900,000 households also received subsidies for their electricity bills through the Energy Vulnerability Fund. Although Moldova currently once more imports 70-80 per cent of its electricity from Transnistria, it does so mainly because it is cheaper than electricity from Romania or Ukraine. But the synchronisation of its grid ensures access to alternative sources of supply, minimising the risk of energy blackmail from Russia. In the long term, support from European financial institutions will be important in strengthening Moldova’s security of electricity supply. From 2023 to 2028, the priority of the EBRD’s financial support to Moldova will be fostering energy resilience, including funds for the modernisation of electricity grids. Although Ukraine is essentially self-sufficient in electricity supply, synchronisation with the EU grid has proven important for Kyiv too, enabling it to import electricity from EU countries in crisis situations related to Russian attacks. This has been especially helpful given that in March 2022 Russia captured the important Zaporizhia nuclear power plant, which was responsible for 44 per cent of Ukraine’s total generating capacity from nuclear power plants. In 2023, Ukraine also completed the modernisation of a power interconnector with Poland. The EU Civil Protection Mechanism, established back in 2001, proved to be an important crisis mechanism in the context of meeting Ukraine’s short-term energy needs, especially for electricity. As of 31 January 2024, more than 5,900 power generators have been sent to Ukraine via the mechanism, including 2,347 from the EU’s own rescEU reserve stockpiles. In addition to generators, the EU has been delivering other vital energy supplies to Ukraine including transformers, autotransformers, high-voltage equipment, and LED light bulbs. The EIB – which has supported various energy projects in Ukraine since 2007 – has played an important role since the outbreak of the war, funding energy grid projects and repairing the damage inflicted by Russia to energy infrastructure. In December 2023, for example, it provided €133m to enhance the reliability of hydroelectric power plants. Within the Energy Community, the Ukraine Energy Support Fund and the Ukraine Support Task Force have proven to be extremely important in ensuring Ukraine’s energy security during the war, with the Ukraine Energy Support Fund alone providing over €400m in support by December 2023. Under the Ukraine Support Task Force, as of October 2023, 22 EU countries had made nearly 100 deliveries to Ukraine, including power transformers, cables, generators, transportation vehicles, and other equipment crucial for supporting the electricity sector. The Energy Community has also launched the Ukraine Energy Market Observatory, which will closely follow and review all developments related to the broader energy market and corporate governance in Ukraine. Finally, in March 2023, the Energy Community Secretariat signed two memorandums of understanding with the Ukrainian authorities: one on increased cooperation in rebuilding Ukraine’s energy sector and another on the coordination of activities in the area of humanitarian aid for the district heating, water supply, and buildings sector of Ukraine. Green credentials With the help of the EU, member states, and financial institutions, Ukraine and Moldova have been able to dramatically strengthen their energy sovereignty in terms of energy independence. However, their progress towards energy cleanness and efficiency – two other important components of energy sovereignty – has been less impressive. Cleanness Both countries, but especially Moldova, perform poorly when it comes to the share of renewables in their electricity generation. In 2022, renewables accounted for only 15.8 per cent of Ukraine’s electricity generation and 7.1 per cent of Moldova’s electricity – far below the EU and world average of 38.4 per cent and around 30 per cent respectively in 2022. The share of renewables in Moldova and Ukraine also includes the production of electricity from large hydroelectric power plants, whose operation is not fully carbon neutral. However, the development of the renewable energy sources (RES) sector in Ukraine was beginning to gain momentum before the outbreak of the war. At the beginning of 2022, the total installed RES capacity (connected to the grid) reached 9.5 gigawatts (GW) – excluding 0.6GW of RES capacity located in the territories temporarily occupied by Russia before 24 February 2022. About $12 billion was invested in the Ukrainian RES sector between 2009 and 2021 from a variety of sources, including the EBRD, the Black Sea Bank for Trade and Development, and the American International Development Finance Corporation. But, during the first six months of the war, Russia destroyed between 80 and 90 per cent of the generating capacity of wind power plants and around 30 per cent of the capacity of solar power plants in the country, as well as around half of the transmission lines and facilities for the production of electricity in Ukraine. Ongoing military activities, including Russia’s continued attacks on energy infrastructure, are significantly hampering Ukraine’s ability to rebuild these capacities. In an attempt to address this, the G7+ Coordination Group – established in November 2022 and including the Energy Community as well as the EU and its member states – has established a Clean Energy Partnership with the Ukrainian government to support the sustainable recovery and reconstruction of Ukraine, which was officially inaugurated at COP28 in December 2023. Its aim is to support the creation of a modern, secure, decentralised, and cleaner energy system in line with Net Zero in Ukraine and to better integrate the country into the EU. The parties are to support Ukraine in attracting private investors to develop projects to reduce Ukraine’s dependence on fossil fuels, in line with the EU’s energy and climate policy goals. In Moldova, the low share of RES in the energy mix results from a historic lack of interest in projects in this sphere on the part of the authorities. Under the pro-European government led by the Party of Action and Solidarity, which came to power in 2021, this situation has begun to change. The government has expressed interest in accelerating Moldova’s energy transition through the development of renewable projects and is gearing up to initiate the inaugural renewables auctions in the country (between April and June 2024), through which it aims to acquire 105MW of wind power and 60MW of solar projects.  When it comes to the levels of carbon in its electricity, Ukraine boasts much better results. In 2022 the carbon intensity of electricity generated in Ukraine was 271.4 grams of carbon dioxide-equivalents per kilowatt-hour of electricity (gCO2e per kWh), below the EU and global averages of 291.9 gCO2e per kWh and 490.1 gCO2e per kWh respectively. After two years of war, the carbon intensity in Ukraine has dropped further to 194.4 gCO2e per kWh. The large share of nuclear energy in Ukraine’s energy mix (60.5 per cent in 2023) – one of the largest shares globally – primarily accounts for the low carbon footprint of its energy sector. Moldova’s electricity has a much higher carbon intensity, 871.7 gCO2e per kWh in 2022, well above the EU and global averages. Moreover, the energy intensity (the amount of energy required to produce one unit of GDP) in Moldova is 3.4 times higher than the average in EU countries. Buildings account for 58 per cent of the total final energy consumption in Moldova, of which non-residential buildings account for 17 per cent. This makes improving energy efficiency in this sector of crucial importance.  Energy efficiency Both countries also face challenges to improve their energy efficiency, although Ukraine is doing much better than Moldova in this field. According to Energy Community reports, Ukraine’s primary energy consumption and final energy consumption in 2020 were below the targets set for 2030. In the case of Moldova, on the other hand, the 2021 statistics show that both primary and final energy consumption were just over 10 per cent above the 2030 targets. Ukraine’s good performance is largely a consequence of the war and the subsequent drop in electricity consumption of around one-third. Nonetheless, Ukraine is still struggling with high energy intensity in some sectors, notably related to residential buildings, 85 per cent of which date from the Soviet era. Before the invasion, the average level of energy consumption in households was two to three times higher than that in the EU. On top of this, gas plays a significant role in the heating sector, with around 80 per cent of households in Ukraine relying on heat supplies from gas-fired power stations. While the war makes it difficult for Ukraine to implement systemic measures to improve energy efficiency, Ukrainian authorities had integrated this aim into their energy strategy even before Russia’s invasion. In 2018, they established the Energy Efficiency Fund, in close cooperation with the EU and Germany. Since 2014, the EU has also allocated grants under the European Neighbourhood Instrument to support reforms in Ukraine, including those aimed at improving energy efficiency. Ukraine has made significant progress in fulfilling its obligations under the association agreement with the EU regarding the adoption of European energy efficiency legislation. For example, it has developed and enacted a legislative framework to support energy efficiency, including to establish energy-efficient practices across various sectors and reduce energy consumption in buildings. Ukraine is also aligning with European standards by promoting “nearly zero-energy buildings” through the adoption of the Concept and National Plan, which outlines the gradual implementation of regulations over the next five years, followed by new construction requirements after 2025. Moldova adopted an amendment to the energy efficiency law in May 2023, establishing a legal framework for comprehensive planning via the National Energy and Climate Plan. However, it is yet to implement energy efficiency measures, especially according to standards prepared by international institutions. For example, the UN Economic Commission for Europe (UNECE) has prepared a special guide for the implementation of energy efficiency measures and the valorisation of renewable energy sources for public sector buildings. The Energy Community Secretariat has played an important role in the creation of further instruments for energy cooperation between EU member states and the EU’s neighbours which encompass energy efficiency. For instance, EU4Energy – an initiative created jointly with the Council of European Energy Regulators and the International Energy Agency and launched in 2016 – is focusing on Moldova and Ukraine, alongside Armenia, Azerbaijan, Belarus, and Georgia, in the current second phase of the programme (2021-2025). The initiative is designed to support the aspirations of focus countries to implement sustainable energy policies and foster cooperative regional development of the energy sector. The European Commission’s Covenant of Mayors for Climate and Energy, which aims to bring together European local and regional authorities to voluntarily contribute to increasing energy efficiency and the use of RES, includes many cities and municipalities from Ukraine and Moldova. The EU and member states have also provided support within the framework of the Eastern Europe Energy Efficiency and Environment Partnership fund, a programme set up on Sweden’s initiative in 2009. Of the total budget (€1,355m), €982m was allocated to 25 projects in Ukraine and €114m to seven projects in Moldova. Funds disbursed under the initiative are used, among other purposes, to improve the energy efficiency of healthcare buildings and other public facilities. Energy narratives The current authorities in both countries have shaped a dominant narrative around strengthening energy sovereignty. In March-April 2023, the European Council on Foreign Relations’ network of associate researchers conducted a survey in all EU member states and Ukraine and Moldova on decision-makers’ approach to energy sovereignty following the outbreak of Russia’s invasion of Ukraine. Questions included the conceptualisation of energy sovereignty, the main challenges and threats in this area, and the measures taken and planned to strengthen it. Our researchers found that the issue of energy sovereignty gained prominence in political circles and public discourse in both countries after the outbreak of the war. The authorities of both countries are taking a comprehensive and innovative approach to energy sovereignty, viewing it not only through the prism of security of supply of raw materials, but also energy efficiency and climate goals. According to statements made by the Ukrainian government, Ukraine plans to become a leading green energy hub in Europe, integrating energy production with green technology development. Ukraine’s minister of energy has underscored the role of renewable energy in enhancing energy security, citing Ukraine’s experience during the war and its contribution to European stability through the synchronisation of power systems. Although the Moldovan authorities have placed special emphasis on the need to find alternative sources of supply due to their longstanding heavy dependence on energy resources from Russia, in the long term they also see energy transition issues as an important component of strengthening energy sovereignty. The government plans to significantly increase the pace of RES projects, aiming to increase their share to 30 per cent of electricity consumption in Moldova by 2030. The elites of both countries also seem to see cooperation with third countries, including the EU and member states, as an important means of strengthening energy sovereignty, not just responding to crisis situations. This is evident in their long-term plans to cooperate with the EU and member states on further projects to strengthen their energy sovereignty. (This applies in particular to the expansion of infrastructure connections.) Moldova is currently focusing primarily on the construction of a high-voltage line from Vulcanesti to Chisinau. This connection is expected to allow the import of electricity from Romania to Moldova on the right bank of the river Dniester within the next few years. (The completion of the line is scheduled for 2025.) Moldova is also interested in the development of joint power generation projects with Romania and in increasing the capacity of the Ungheni-Chisinau gas interconnector. Ukraine is focused on establishing a hydrogen corridor connecting it with Slovakia, the Czech Republic, Austria, and Germany. The corridor would enhance Ukraine’s energy security and integrate it into the European energy network, as well as stimulate the growth of Ukraine’s hydrogen industry and enable Ukrainian-produced hydrogen to seamlessly enter the European energy market. Furthermore, in 2024 both countries (along with Slovakia) joined the Vertical Corridor European gas transportation scheme, which brings together the gas transmission system operators of Greece, Bulgaria, Hungary, and Romania, and aims to enhance energy security and diversification by upgrading their networks to facilitate gas transport from south to north and vice versa. The mutual benefits of cooperation So far, the eastern neighbourhood countries have mainly benefited from the EU’s and member states’ actions in the context of strengthening their own energy sovereignty. However, they both – and especially Ukraine – have the potential to help strengthen the energy sovereignty of the EU and its member states, thanks to their raw materials, RES development, and infrastructure. Ukraine has great potential in the gas sector. Firstly, Ukraine is home to some of the largest proven natural gas reserves in Europe (after Norway), estimated at up to 1.1 trillion m3 in December 2020 (within the internationally recognised borders of Ukraine, that is, including Crimea and other areas occupied by Russia). Ukraine’s gas production is also the second-largest in Europe after Norway and, despite the war, remains at a relatively high level (18.5 bcm in 2022 and 18.7 bcm in 2023). Secondly, Ukraine hosts gas infrastructure that could be useful for the EU as it diversifies its sources of supply. Ukraine’s extensive gas network, which has already enabled the transit of Russian gas for European consumers, could transport gas from the Black Sea or Caspian region via the Trans-Balkan pipeline. This would especially be the case after the construction of a liquefied natural gas (LNG) terminal on Ukraine’s Black Sea coast – which has been under consideration for over a decade. Ukraine could also help Europe to store gas – the country has the largest gas storage system (30 bcm) in Europe and the third-largest by capacity in the world – behind only the US and Russia. This capacity not only ensures Ukraine’s energy security but could also potentially be used by European customers. Some EU companies are already doing this – at the beginning of 2024, around 2 bcm of gas in Ukrainian storage belonged to EU companies, but the potential for exploitation is much greater. Cooperation with Ukraine on hydrogen could further strengthen the EU’s energy sovereignty. According to Ukrainian researchers, with the appropriate development of wind power, Ukraine could produce up to 19.5m tonnes of green hydrogen per year, which would be twice as much as the EU’s annual production plans by 2030. The EU already considers Ukraine one of the three main potential green hydrogen import corridors (along with the North Sea region and the Mediterranean Sea), and in February 2023 signed a memorandum of understanding with Ukraine on a strategic partnership on biomethane, hydrogen, and other synthetic gases. Hydrogen projects that meet the EU’s safety standards can obtain the status of projects of mutual interest under the EU’s Trans-European Networks for Energy Regulation framework. The European Commission’s first list of projects of mutual interest published in November 2023 includes a generic corridor project aiming to transmit hydrogen from Ukraine to Slovakia, the Czech Republic, Austria, and Germany. Both countries, and especially Ukraine, also have high potential for RES development, which could allow the production of clean energy not only for domestic consumption, but in the case of Ukraine also for export to the EU. Theoretically, Ukraine has the greatest RES potential among south-east European countries, although estimates vary. The Ukrainian government assesses the potential for wind energy development in Ukraine off the Black Sea and the Sea of Azov coasts to be 140GW. Ukrainian scholars, meanwhile, calculate that renewable energy sources in Ukraine could provide up to 874GW in total, including solar (83GW), onshore wind (438GW), and offshore wind (250GW). At a conference on the reconstruction of Ukraine organised in June 2023 in London, the Ukrainian ministry for energy presented plans for investments in the energy sector, showing that by 2050 Ukraine wants to have 230GW of solar and wind generation capacity, 38GW of energy storage capacity, and 69GW of electrolyser capacity to produce green hydrogen. Regardless of which of the above estimates is more realistic, it is clear that Ukraine has the ability to produce large amounts of clean energy. According to the UNECE, bioenergy, hydro, solar, and wind generation could account for almost 80 per cent of Ukraine’s total energy generation by 2050. Moldova also has some potential for the development of RES projects, although significantly less than Ukraine. According to a 2017 report from the International Renewable Energy Agency, Moldova could expand its wind power to 21GW and total RES generation capacity to 27GW. From the perspective of the EU, while Moldova will not become a source of clean energy imports like Ukraine, the development of RES projects in Moldova would nonetheless be beneficial, reducing Moldova’s consumption of fossil fuels and thus also relieving the burden on the EU and member states of providing support to maintain Moldova’s gas supply during crises. Ukraine could also develop biomethane projects. According to the Ukrainian National Committee for Energy Regulation, the country could produce 22 bcm of biomethane per year, some of which could be exported to the EU. Indeed, Ukraine already has the necessary resources and infrastructure, including adequate transmission networks that would not require additional upgrades to transmit biomethane. Ukraine also has large feedstock resources and large areas of arable land to develop the potential for agricultural biomethane production. The EU plans to produce 35 bcm of biomethane per year by 2030 and it is estimated that Ukraine could meet up to 20 per cent of this demand. The EU could also benefit from access to Ukraine’s critical raw materials (CRMs), which are important for the EU’s own energy transition. Ukraine holds resources of most of the raw materials on the EU’s latest list of CRMs, including some that the EU recognises as CRMs of strategic importance. For example, Ukraine has the largest reserves of lithium in Europe, used, amongst other things in the production of batteries for electric cars. In 2021, Ukraine also accounted for around 7 per cent of global titanium production and was the world’s seventh-largest exporter of titanium ore. Titanium dioxide is a valuable chemical that can help to improve the efficiency of batteries by extending both their energy-storing capacity and their lifetime, and – alongside lithium – is one of the CRMs that the EU considers to be strategic. Moreover, Ukraine has some of Europe’s largest reserves of graphite, which is used in energy storage technologies like lithium-ion batteries, as well as deposits of nickel and cobalt, which are important in battery production. Its significant potential for green energy production and its status as the country with the largest nuclear generating capacity in Europe mean that Ukraine could also be a source of low-carbon electricity imports for EU member states. Over the last three decades, Ukraine has exported electricity, and continued to export small amounts to Moldova, Poland, Slovakia, Romania, and Hungary even in the first year of the war. Due to Russian attacks on Ukraine’s energy infrastructure, Kyiv was forced to suspend electricity exports in October 2022, but resumed exports of small amounts of electricity to Moldova and EU countries in April 2023. In the long term, especially when the war ends, the EU expects to be able to import clean electricity from Ukraine as part of its REPowerEU initiative. Finally, Ukraine can provide important insights into protecting energy infrastructure across Europe based on its experiences of Russian attacks, which could further strengthen the EU’s energy sovereignty. The security of the EU’s energy infrastructure has become an area of concern, particularly after the damage to the Nord Stream 1 and 2 pipelines, the Baltic interconnector, and the cyber-attacks on Danish energy infrastructure. Hurdles ahead Several factors clearly favour closer energy cooperation between the EU and member states and their eastern neighbours, which would strengthen the energy sovereignty of all parties involved. Both the societies and the current authorities in Moldova and Ukraine are unequivocally in favour of the closest possible integration into Western structures, including the EU. In Ukraine, this has been the case since the victory of the “Revolution of Dignity” against the government’s growing ties to Russia and the ensuing fall of the Yanukovych administration in 2014, while Moldova began to take an unequivocally pro-European course in 2021. Russia’s ongoing war in Ukraine and aggressive policy towards Moldova have further embedded this trend and mean it will likely continue in the long term. The EU has also re-evaluated its strategic thinking, prompting a new focus on its own energy sovereignty and that of its eastern neighbourhood. After Russia’s invasion of Ukraine, the EU worked rapidly to reduce its dependency on Russian energy supplies and to help its eastern neighbours do the same. However, the ongoing war in Ukraine is hampering the intensification of long-term energy cooperation. In the case of Ukraine, the key issue is the scale of the war damage and the estimated amount of money needed to rebuild Ukraine. The World Bank estimates the total cost of reconstruction at almost $486 billion, which is more than two times the size of Ukraine’s pre-war economy. According to the UN, rebuilding Ukraine’s energy sector alone, which has been seriously damaged by constant shelling, will require an outlay of approximately $47 billion. The EU has announced an additional €50 billion in support between 2024 and 2027 through a new financing instrument, the Ukraine Facility. However, these funds relate to investments in all spheres of state functioning, and it is unclear how much, if any, of this sum will be allocated to energy. Considering Kyiv’s plans regarding investments in green energy (RES and hydrogen) and the development of other sectors, including nuclear and gas, the Ukrainian authorities estimate that the country’s investment needs will reach $400 billion by 2050. Yet Moldova and Ukraine have relatively weak investment climates. Before the war, regulatory instability in Ukraine, including changes in taxation rules for the gas extraction sector, among other factors, made it difficult to attract investors. Moldova also finds it difficult to attract investment, particularly from private actors. And, although positive developments are taking place in Ukraine even during the war (for example, a law adopted in Ukraine introducing favourable conditions for investment in the biogas and biomethane sector, including exemption from income tax for five years, land tax, and VAT and customs duties when importing new equipment and components), it remains unclear how easy it will be to introduce and apply legal regulations after the war. Progress in the implementation of energy and climate policy will also be one of the fundamental challenges in the context of Ukraine’s integration with the EU. In addition to this, specific sectors face further challenges. Despite having great potential for hydrogen production, for example, Ukraine so far has neither a hydrogen strategy, nor a legal framework for the development of hydrogen projects, nor adequate infrastructure. The next steps To achieve the greatest possible synergy in the efforts of the EU and its eastern neighbours to mutually reinforce energy sovereignty, both sides will need to continue taking strategic steps in the coming years. For eastern neighbours Adopt a progressive approach to energy sovereignty Ukraine and Moldova need to translate their narratives about energy sovereignty into a determination to implement them in reality. The eastern neighbourhood countries should permanently change their approach to energy sovereignty and think of it not only in terms of security of supply – energy independence from Russia and diversification of supply sources – but also in terms of clean energy and energy efficiency. This applies especially to Moldova, which should aim to finally and permanently sever its energy relations with Russia not only in the electricity sector, but also in the gas sector, in particular by removing Gazprom from the ownership structure of its largest gas company Moldovagaz (in which Gazprom still holds 51 per cent of the shares). The EU and its eastern neighbours should make the improvement of energy efficiency one of their common strategic goals. Moldova and Ukraine should use the funds made available through the EIB and EBRD to implement steps to improve energy efficiency. In particular, they should exploit and expand the opportunities for projects under the Eastern Europe Energy Efficiency and Environment Partnership. They should also strengthen bilateral cooperation with selected EU member states that have declared their willingness to share their experience in this field. On a bilateral level, France, Germany, Poland, and Sweden are implementing or planning cooperation with their eastern neighbours to improve energy efficiency. Meet Energy Community regulations Ukraine and Moldova should continue to implement reforms in the energy sector, including those stemming from their membership in the Energy Community or related to the process of deepening their integration with the EU. Following the end of the war in Ukraine, it will be important that the two countries take measures against the monopolisation of markets by fully liberalising the electricity and gas markets, ensuring OECD-appropriate governance standards for state-owned energy companies, and making further progress in tariff reforms and subsidy provision by phasing out public service obligations and replacing them with social support for vulnerable energy consumers. These measures will serve to deepen the integration of Moldova and Ukraine with the EU and, consequently, help to increase the resilience of their energy systems. Make infrastructure flexible Both Moldova and Ukraine should prepare for new uses of their transmission infrastructure under the new geopolitical conditions. This is particularly important for Ukraine, which for a decade has acted as a transit country for EU countries’ gas and oil imports from Russia. In December 2024, the transit agreements between Russia and Ukraine will expire, and Ukraine will need to find a new use for its significant gas pipeline network in order to maintain it. The Ukrainian gas pipeline network could be used to export Ukraine’s surplus gas production or to transit gas from other sources. For example, Azerbaijani gas exported via the Trans-Balkan pipeline could travel via Moldova and Ukraine to Slovakia or other EU countries. The Ukrainian government was already considering using it to transport imported gas via a potential LNG terminal on the Ukrainian Black Sea coast before the war. Ukraine and Moldova also need to modernise and expand their electricity grids. In the case of Ukraine, this is necessary due to the continuing destruction associated with Russia’s aggression. However, Moldova also needs grid investments, especially if it is to expand its RES potential in the future. Indeed, the expansion of RES potential requires a sufficiently developed grid capable of absorbing electricity produced by wind or photovoltaic installations into the system. Make use of international cooperation formats Given the multiplicity of cooperation formats in which the eastern neighbourhood countries are involved, it is important to build synergies between them. In addition to the formats already in use in relations with the EU, Kyiv and Chisinau should make use of other, supra-regional cooperation formats that have emerged in central and eastern Europe in the last decade, within which some countries have placed a very strong emphasis on strengthening sovereignty. An example of this is the Three Seas Initiative, a project initiated in 2015 by the presidents of Poland and Croatia that brings together 13 central European countries with the strategic aim of preserving and strengthening the unity of the EU and the Euro-Atlantic space through three pillars: transport, energy, and digital. Poland and Romania have already declared their interest and political will to cooperate with countries such as Moldova and Ukraine under the initiative. For this purpose, Ukraine and Moldova could also make use of the European Political Community, to which 47 European countries belong, including non-EU countries such as the United Kingdom and Turkey. For the EU Ensure comprehensive support to Moldova and Ukraine prior to accession In the dynamic geopolitical situation related to Russia’s aggression against Ukraine, the EU should be determined not only to pursue the EU integration process of Moldova and Ukraine consistently, but also to strengthen its own capacities to respond to Russia’s attempts to destabilise these eastern neighbours. Only the accession of Ukraine and Moldova to the EU can create a sustainable foundation for strengthening cooperation and using the full potential of all parties to strengthen energy sovereignty. The EU therefore needs to demonstrate its determination to meet this political commitment to Moldova and Ukraine. It should use all existing multilateral formats available to it to tighten political and economic (including energy) cooperation with its eastern neighbours. Individual member states should also look to strengthen their bilateral cooperation with their eastern neighbours. Poland can play a special role in this respect, above all because it is Ukraine’s largest neighbour and is interested in participating in the reconstruction of Ukraine and particularly committed to supporting Moldova’s reform. The new pro-European government formed in December 2023 could also build a coalition for energy cooperation with its eastern neighbours together with Germany or perhaps more broadly with Germany and France as part of the recently reactivated Weimer Triangle. Initiate joint energy projects The EU should plan further joint energy projects with its eastern neighbours. It is a major weakness that, apart from the hydrogen corridor with Ukraine, the list of projects of common and mutual interest published by the EU in November 2023 does not include others concerning the enhancement of infrastructure links between the EU and Ukraine and Moldova. These are notably lacking in the electricity sector. The implementation of these projects will be important for electricity trade between the EU and neighbouring countries, which could strengthen the energy sovereignty of both the EU and its eastern neighbours. At the same time, it is in the interest of the EU and member states that progressive integration, for example in the sphere of electricity markets, is carried out under fair competition conditions between EU players and companies from Ukraine and Moldova. Contribute to security of energy supply Although the EU’s own raw material potential is limited, some countries have resources that could be used to meet part of the needs of the eastern neighbourhood countries. Romania, which has among the most energy resources in Europe, could play a particularly important role in this context. Its gas resources on the Black Sea shelf are estimated at 80-200 billion m3, which would allow it to secure its own needs for about 20 years or, in the medium term, act as an alternative to Russian supplies to other countries in the region, such as Moldova. When it comes to electricity production, Romania boasts a diversified energy mix and a well-developed network of interconnections with neighbouring countries that can operate in two directions (for import and export purposes). Due to its location, Romania could also play the role of a transit country for the transmission of energy resources (for example, gas via the Trans-Balkan gas pipeline) or electricity from third countries. EU member states should support Ukraine in continuing to diversify its nuclear fuel supply sources. Those that have nuclear power in their own energy mixes, including Bulgaria, France, Romania, Slovakia, and Sweden, can provide logistical support for the transport of nuclear fuel from alternative sources, and be partners for enhancing cooperation in the nuclear sphere after the end of the war. The so-called nuclear alliance that has emerged in the EU under the informal leadership of France could be useful in this regard, supporting partnerships with Ukraine to implement joint nuclear projects. Improve eastern neighbours’ energy efficiency In its external energy policy strategy, the EU calls for energy saving and energy efficiency to become priorities on a global scale. It should therefore support neighbouring countries to improve energy efficiency. As postulated, among others, by participants in the Green Deal Ukraine project, the EU and its member states should help their eastern neighbours to develop robust standards for energy efficiency and building materials for both new and renovated buildings, spanning residential and non-residential sectors and the entire construction process. These standards should include monitoring energy efficiency for components and the building process to align with evolving EU efficiency regulations, promoting sustainable practices and long-term decarbonisation goals. Increase investments in the region Energy should become one of the key areas of cooperation to strengthen Moldova’s and Ukraine’s sovereignty and thus their resistance to aggressive, destabilising actions by Russia. Although the EU has so far provided significant financial assistance to Ukraine and Moldova, both directly and in cooperation with European financial institutions, the scale of the needs (especially in Ukraine) requires further efforts in this area. Investment either directly by the EU or by companies from EU countries in Ukraine’s RES sector, the hydrogen corridor, or Ukraine’s gas infrastructure could strengthen EU energy sovereignty by ensuring a secure supply of clean electricity or gas supplies, which will still be needed by EU countries over at least the next decade. To this end, the EU should make use of and provide organisational and expert support for recently created instruments such as AidEnergy – an electronic platform established in March 2023, whereby the EBRD in partnership with other donors and international financial institutions and the Ukrainian Ministry of Energy create a centralised list of energy sector needs. The platform is intended not only to identify the current needs of the Ukrainian energy sector, but also more long-term needs. Considering the long-term investment needs of Ukraine’s energy sector, the EU could also provide support through financial guarantees for the most strategic projects. EU member states and institutions should also continue efforts to confiscate frozen Russian assets, which could be used for the reconstruction of Ukraine, including investments in the energy sector. The law adopted by the EU in February 2024 to set aside windfall profits made on frozen Russian central bank assets is a move in a right direction in this regard. Acknowledgments The author would like to thank experts and people working in the energy sector in institutions and companies in Poland, but also in Ukraine, Slovakia, and Germany, for discussions on the topic covered in this policy brief. Special thanks are also due to those who provided comments on the first version of the text, in particular Susi Dennison. The author would particularly like to thank Flora Bell for her pleasant and fruitful collaboration in editing the final version of the text, especially for her very valuable suggestions, questions, and comments. Thanks are also due to Nastassia Zenovich for the beautiful graphics included in the text. References [1] https://ecfr.eu/publication/energising-eastern-europe-how-the-eu-can-enhance-energy-sovereignty-through-cooperation-with-ukraine-and-moldova/#_ftnref1 Argus Eurasia Energy (https://www.argusmedia.com/en), weekly report, by subscription, 23 February 2023. [2] https://ecfr.eu/publication/energising-eastern-europe-how-the-eu-can-enhance-energy-sovereignty-through-cooperation-with-ukraine-and-moldova/#_ftnref2 Ibid. [3] https://ecfr.eu/publication/energising-eastern-europe-how-the-eu-can-enhance-energy-sovereignty-through-cooperation-with-ukraine-and-moldova/#_ftnref3 Ibid. [4] https://ecfr.eu/publication/energising-eastern-europe-how-the-eu-can-enhance-energy-sovereignty-through-cooperation-with-ukraine-and-moldova/#_ftnref4 Argus Eurasia Energy (https://www.argusmedia.com/en), weekly report, by subscription, 22 January 2024. This policy brief was first published on 11 March by the European Council on Foreign Relations (ECFR)

한국어로 읽기Leer en españolIn Deutsch lesen Gap اقرأ بالعربيةLire en françaisЧитать на русском Elections in Europe demonstrate the growing popularity of far right parties as key outsiders gain on critical votes. In France, President Emmanuel Macron has moved to dampen Marine Le Pen’s success in the European Parliament with a snap national election. The election calendar for June has already thrown up some surprises, particularly in the northern hemisphere. To be sure, Prime Minister Narendra Modi was re-elected, though with a much-reduced majority which will place limits on his power. But the biggest shock is in Europe where French President Emmanuel Macron decided to call a snap election for 30 June after his most notorious far-right rival, Marine Le Pen, pulled off a decisive victory in the French election for the European Parliament. Macron is taking a massive gamble—that in a national election he can recover some of the popularity he has lost since his re-election as president in 2022, squashing Le Pen’s challenge to his leadership. The initial reaction of the commentariat is that Macron will manage a return to the Élysée palace, largely because the centrist parties holding the middle ground were the overall winners and the Left and the Greens failed to increase, or lost, shares of the vote. “I’ve decided to give you back the choice,” Macron said in an address to the electorate from the Elysée palace. In France, the Rassemblement National (RN) party led by Le Pen won 31.5 percent of the country’s vote, according to early results. In Germany, the three parties in Olaf Scholz’s fragile coalition—the Social Democrats (SPD), Greens, and the liberal FDP—were all overtaken by the far-right Alternative for Germany (AfD), which came in second behind the conservative CDU-CSU opposition. Significant gains by nationalist and ultra-conservative parties were also anticipated by exit polls in Austria, Cyprus, Greece, and the Netherlands. In Italy, prime minister Giorgia Meloni cemented her position in her governing coalition, and potentially her hand in negotiations with other European leaders, with her hard-right Brothers of Italy party taking over 28 percent of the vote in the European parliamentary elections. Attention will now turn to the campaign by Ursula von der Leyen, president of the European Commission, to win another five-year term in office. She has a good record and currently no obvious challenger. Nonetheless, her re-election will hinge on her ability to make uncomfortable choices and deals, taking into account the EU’s clear shift to the right in parliamentary elections on 9 June. Though her centre-right European People’s party won the election, securing 189 seats in the 720-strong assembly, von der Leyen’s allies fared worse and the hard right surged from a fifth to nearly a quarter of seats. Her fate is likely to be decided at an EU summit on 27 June when she will seek the personal backing of the EU’s 27 leaders and aim to demonstrate to them that she has the required support in the European Parliament. Mexico Another remarkable election result this month was in Mexico where the ruling left-wing Morena party won a landslide victory in presidential, congressional, and state elections. While president-elect Claudia Sheinbaum and Morena’s victory on 2 June was not a surprise, the scale of it was. Sheinbaum won more votes than the centre-right Xochiti Galvez across genders, age groups, and in every state bar one, coming in 31 points clear of her rival. After decades of high poverty, glaring inequality, and low wages, the ruling Morena party more than doubled the minimum wage and expanded social programs, endearing itself to Mexico’s long-neglected have-nots. The result has left Mexico’s conservative elite struggling to understand the left’s landslide win, living as they do in gated communities far removed from the lives and feelings of average Mexicans. There are unlikely to be any surprises in the other major election this month—that of Iran on 28 June. Iranian authorities have disqualified prominent moderates as candidates in the snap presidential election, called following the helicopter crash that recently claimed the life of Ebrahim Raisi, the country’s president, and other senior ministers. The field of candidates has been narrowed to five hardliners and one mid-ranking reformist. The United Kingdom has seen a frenzy of election activity this month following Prime Minister Rishi Sunak’s surprise decision to call an early election on 4 July. Polls show that there is likely to be a change of government to the opposition Labour party, which is currently holding a 22 percent lead, after 14 years’ Conservative government.

한국어로 읽기Leer en españolIn Deutsch lesen Gap اقرأ بالعربيةLire en françaisЧитать на русском How France manages the first outbreak of serious violence in New Caledonia in 40 years will affect not only its future role there but its acceptance as a resident Pacific, and Indo-Pacific, power. The violence of indigenous independence supporters, many of them very young, signals that the inconclusiveness of earlier peace agreements risks taking New Caledonia back to the bloodshed of the 1980s. The unrest is targeting the capital, Noumea, and its population of Europeans, who mostly support staying French. The wounds are deep. The peace agreements that ended violence in the 1980s largely succeeded because of difficult and constant compromises by the French state, loyalist parties and independence parties. Mutual trust in the promises of those agreements to work towards self-determination underpinned the French state conducting three referendums in New Caledonia from 2018 to 2021. The first two were impeccably organised and showed, respectively, that 56.7 percent and 53.3 percent opposed independence. But the state dropped the ball in a third referendum in 2021, sticking with an intended voting date despite indigenous requests for postponement. At the time, hundreds of Kanaks had died from Covid-19. Their leaders said they could not ask their people to campaign or vote when their traditions required lengthy mourning rituals. The resulting indigenous boycott saw the count of opposition to independence soar to 96.5 percent. Since then, divisions have deepened. Loyalists, backed by the government in Paris, say all three votes were valid and want to cement the territory as part of France. Independence groups reject the third vote and seek another; some refuse to participate in discussion about the future. They rejected Macron’s offer of a chemin de pardon (path of forgiveness) when he visited in July 2023. They did not attend a meeting he convened, and their supporters did not turn out for his major speech there, sending a strong message of discontent. Macron then threatened unilateral action unless local parties came to an agreement. Informal discussions between some parties from each side in December ended with wide divergences, including over a further independence vote and voter eligibility. To set a deadline, Macron introduced legislation postponing local elections from April 2024 to December 2025, and he put forward another bill that would amend the French constitution, imposing broader voter eligibility and thereby diluting the Kanak voting share, unless locals reached agreement before the end of June. Demonstrations erupted into violence on 13 May, the day France’s National Assembly debated imposing from Paris the enlargement of voter eligibility. The destruction perpetrated by young Kanaks signalled not only to France and loyalist parties who were their targets but also to Kanak leaders and neighbouring countries the depth of distress of a new generation who felt disrespected and excluded from determining the future of their homeland. How France responds will be decisive for its sustainable future in New Caledonia. New Caledonia’s population is about 270,000. In the census of 2019, indigenous Kanaks were 41 percent, Europeans 29 percent and other Pacific islanders and ‘others’ composed the remaining 30 percent. Another census is due this year. Kanaks may now exceed 45 percent, since there have been net departures of about 2000 people a year since 2015, almost all presumably non-indigenous. Moreover, some people in the ‘others’ category, which includes the sub-categories of ‘mixed’ and ‘Caldeonian’, would also be Kanaks. And the Kanak share of the population will rise, especially since recent developments may contribute to an increase in non-Kanak departures. While New Caledonia’s neighbours have quietly supported the peace agreements, they remain concerned about the interests of the islanders in the non-self-governing French territory. Some of them took New Caledonia to the United Nations Decolonisation Committee in 1986, ensuring annual UN scrutiny of the territory and France’s dealings with it since then. The Pacific Islands Forum (PIF) has regularly sent missions monitoring implementation of the Noumea Accord and observed each referendum, expressing serious reservations on the third. The Melanesian Spearhead Group (Papua New Guinea, Fiji, Vanuatu, Solomon Islands and New Caledonia’s FLNKS independence coalition) was formed in the mid-1980s specifically to support Kanak independence claims. With the eruption of violence, their silence has broken. Making Australia’s highest-level statement in decades, Prime Minister Anthony Albanese said Australia was closely monitoring the situation and encouraged all parties to work together constructively to shape the institutional future of New Caledonia. PIF Secretary-General Henry Puna said he was not surprised by the riots, noting it was unfortunate that the third referendum had been allowed to go ahead amid the pandemic. PIF chair and Cook Islands Prime Minister Mark Brown said New Caledonia and French Polynesia had been included in the forum ‘in recognition of their calls for greater autonomy coming from their people’, and supported providing help to prevent conflict. Vanuatu Prime Minister and Melanesian Spearhead Group Chair Charlot Salwai publicly opposed France’s constitutional change and urged a return to the spirit of the peace agreements and the sending of a dialogue mission led by a mutually respected person. France has done much to regain the acceptance and trust of the region in recent decades. Responding to island governments’ visceral opposition to its policies in the 1980s, France abandoned nuclear testing in the region and gave greater autonomy to its Pacific territories. It did so by respecting local governments and people. Macron has articulated an Indo-Pacific vision for France that’s firmly based on its sovereignty in the Pacific. But, to maintain France’s claims as an Indo-Pacific power, he must listen to the large and growing indigenous minority in its pre-eminent Pacific territory, New Caledonia. And he must listen to the appeals of Pacific island governments, so they and France can move forward together with humility and respect.