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Diplomacy
Joe Biden holding hands with Chinese President Xi Jinping

Biden’s ‘de-risk’ from China policy has a few flaws

by Nathaniel Sher

In order to ‘walk, chew gum, and play chess’ at the same time, the US will have to both invest at home and sign more trade deals. A speech late last month by Jake Sullivan, President Biden’s national security adviser, on “Renewing American Economic Leadership” clarified that the administration wants to build resilience to “de-risk” from China. But dealing with Beijing will require more than investing at home. Washington also needs to re-engage in negotiations with China to manage difficulties in the bilateral relationship. And to better compete, the United States should get back into the business of signing trade deals. As Trade Representative Katherine Tai quipped during her 2021 confirmation hearing, the United States can “walk, chew gum, and play chess” at the same time. The Biden administration should not only invest in domestic resilience, but also participate in new trade agreements and negotiate directly with Beijing. Over the past two years, China joined the Regional Comprehensive Economic Partnership (RCEP), began acceding to the Digital Economy Partnership Agreement (DEPA), and applied to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). China’s integration into these new frameworks will create efficiencies in its own economy, while binding Beijing closer to the rest of Asia. Meanwhile, the United States does not expect to see the first “real outcomes” from the Indo-Pacific Economic Framework (IPEF) until the end of 2023, more than one year after its announcement. IPEF, moreover, lacks the market-access agreements characteristic of other, more substantive economic agreements. It is not surprising, then, that the 2023 Lowy Institute Asia Power Index ranks China 100 out of 100 on its “economic diplomacy” index, while the United States receives a ranking of only 34.6. The 2023 State of Southeast Asia survey similarly shows that only 21.9 percent of respondents view the United States as a leader in championing free trade, down from 30.1 percent in 2022. To be fair, Beijing has significant ground to cover before its markets become as free and as open as those in the United States. What many trade partners care about, however, is not where China and the United States have been, but where they are going. To many, it appears as if Washington is turning inward while Beijing continues to open its markets. This leads to the second error in Jake Sullivan’s “new consensus” on international economic policy. He expresses fatalism about China’s economic trajectory without giving credence to the possibility that China may change, or that the United States can play a role in influencing Beijing’s behavior. Sullivan explains, when “President Biden came into office, we had to contend with the reality that a large non-market economy had been integrated into the international economic order in a way that posed considerable challenges.” In response, Sullivan focuses on building domestic “resilience” and “capacity” to reduce America’s dependence on China. Washington appears to have given up on addressing the non-market practices contributing to U.S. dependence on China in the first place, including state subsidies and dumping. The administration also seems to have forgotten that access to low-priced imports is an important factor in the competitiveness of U.S. firms and the standard of living of American consumers. Fatalism about China’s trajectory tracks with the Biden administration’s overall Indo-Pacific Strategy, which does not seek to “change the PRC but to shape the strategic environment in which it operates.” Fortunately, Treasury Secretary Janet Yellen has bucked the trend by stating that she hopes to “engage” with Beijing “in an important and substantive dialogue on economic issues.” Not trying to influence Beijing, on the other hand, would give up an essential element of any effective China policy. Of course, prior negotiations were by no means unqualified successes. The Trump administration’s “phase one” trade deal largely failed to change Beijing’s behavior, in part, because the bilateral purchase agreements effectively, as Yukon Huang and Jeremy Smith of the Carnegie  Endowment for International Peace put it, “prescribed state-managed trade over market forces.” Other negotiations, however, have seen more success. Former Treasury Secretary Hank Paulson was able to persuade Beijing to revalue its currency by more than 20 percent in the late 2000s, helping to level the trade relationship. China’s WTO accession negotiations also moved the needle on the country’s economic policy. While Beijing failed to carry out many of its WTO commitments, China did reform key aspects of its economy and, notably, slashed its average tariff level from 15.3 percent in 2001 to 9.8 percent over the next decade. U.S. policymakers should learn the lessons of past negotiations rather than standing by as U.S.-China economic relations deteriorate further. One way to pressure Beijing to continue along the path of reform and opening up would be to carry out negotiations in concert with U.S. friends and allies. The Trump administration gave up significant leverage by dealing with Beijing bilaterally, outside the parameters of the international trade system. Plurilateral negotiations with U.S. partners — many of whom share U.S. grievances — may be more effective at convincing China to change course. The consequences of not having an effective economic dialogue with Beijing will become more apparent over time. Despite Washington’s wishes, China is simply not going away. Beijing will continue to join new trade agreements and integrate itself deeper into the global economy, even as the United States focuses on building resilience at home.

Diplomacy
Campaign posters of opposition Republican People's Party, CHP leader Kemal Kilicdaroglu and Turkish President Recep Tayyip Erdogan in Istanbul, Turkey

After a brutal presidential election campaign, Turkey is headed to a run-off contest. Here’s why

by Mehmet Ozalp

Last weekend, Turkey held a historic election that will be crucial in deciding in the way the country is heading. Although almost all pre-election polls were predicting a narrow win for the main opposition candidate, the results are inconclusive, and the country will go to a runoff election in two weeks’ time. The new constitution voted in 2017 stipulates the parliament and presidential elections must be held at the same time. To win the presidential component of the election, a candidate must garner more than 50% of the votes. If none of the candidates receives greater than 50% of the votes, the election goes to a runoff election between the two candidates with the highest votes. This is precisely the situation Turkey faces now. Incumbent President Recep Tayyib Erdogan and his closest rival, Kemal Kilicdaroglu, will face each other in a runoff election on May 28.Who is Erdogan’s opposition and what were their arguments?There are two main blocks that fought to win in a bitter and ruthless campaign. The broad opposition National Alliance is made up of six political parties, spearheaded by the Kilicdaroglu-led Republican People’s Party (CHP) party. CHP is known for its pro-secularist policies, and for this reason have been fiercely opposed by the religious segment of Turkish voters. To turn this image around, Kilicdaroglu promised a broad reconciliation policy to unite the country and heal the wounds of the past. He also followed an appeasement strategy by drawing under the National Alliance the national and conservative leaning Good Party (IP) and three minor religious parties, the conservative Happiness Party (SP), Future Party (GP) and Solution Party (DEVA). The last two parties’ inclusion in the alliance are significant, as they are respectively led by Ahmet Davudoglu, a former prime minister and Erdogan’s former foreign minister, and Ali Babacan, who served as the minister of economy until 2019 under successive Erdogan governments. Holding the alliance together was important, as a key criticism against the opposition was its fragmented nature, which some argued would make it impossible to form a concerted front against Erdogan. The National Alliance successfully overcame this hurdle. The next problem was who would be the collective candidate of the National Alliance. The polls consistently showed mayors of Ankara and Istanbul ahead of Kilicdaroglu as candidates. Turkish voters tend to prefer politicians with proven public office track record – two of the mayors had this but Kilicdaroglu did not. In a decision some argue was politically motivated, Imamoglu was charged and sentenced to three years for insulting the Electoral Council (YSK). This took him out of contention. Another spanner in the works for the National Alliance was the self-nomination of Muharrem Ince for the presidential election. Ince was CHP’s nominee in the 2018 election where he lost to Erdogan. The National Alliance was fearful Ince’s candidacy would split opposition votes, which would in turn take the election to a second round that would advantage Erdogan. Ince announced his withdrawal from the race two days before the election, after several images were circulated on internet alleging him having an affair. Battered and bruised, Kilicdaroglu remained as the main opposition candidate in the last stretch. He had three main arguments in his campaign. The first was the failure of the ruling Justice and Development Party (AKP)’s 2023 goals and objectives. Turkey was supposed to enter the top 10 economies in the world. Turkey barely stays within the top 20, at 19th. What is worse, the economy has been on a downturn for the past three years. The Turkish lira has plummeted in value and inflation has reached as high as 85.5%. Kilicdaroglu has pointed to the high price of onion and potatoes as a symbol of economic crisis and worsening cost of living for many Turks. The second is the increasing reputation of nepotism, corruption and wasteful government spending, which has been long criticised by many segments of Turkish society. Mismanagement of the government were widely criticised immediately after the February 2023 earthquake, delivering further a blow to Erdogan and his government. Finally, Kilictaroglu tried to present a new vision for the electorate. He announced a four-step reform program that would make Turkey ● more democratic● more productive, with investment in agriculture and industry● a social state with services● able to sustain these reforms. What was Erdogan’s election strategy?Unfortunately for Kilicdaroglu, his message could not be heard by all voters, especially those in small towns and rural areas who primarily rely on conventional media of TV and newspapers. As a result, he won the majority vote in major cities such as Istanbul, Ankara and Izmir, but Erdogan was in front in inland areas and smaller cities. A key strategy for Erdogan is controlling the Turkish media. Turkey has one of the highest rates of detained and jailed journalists in the world – in fact, it is second only to China. During April, Erdogan received more than 33 hours of airtime on the state-run TRT channel. Kilicdaroglu had just 32 minutes. The incumbent government’s job was relatively easier. Erdogan was the natural candidate for the Justice and Development Party (AKP)-led People’s Alliance. Ultra nationalist MHP (Nationalist Movement Party) has been supporting the AKP government since 2015. The alliance also included several minor religious and nationalist parties. The ruling block had three main arguments against the opposition. First was the secular history of CHP, established by Turkey’s founder Mustafa Kemal Ataturk and now led by Kilicdaroglu. In the 1990’s, CHP was the leading defender of the headscarf (hijab) ban for women. Erdogan argued if Kilicdaroglu became president, religious Muslims in Turkey would lose their freedoms gained in the past two decades under his rule. Second was Kilicdaroglu’s Alevi religious identity. Alevism is a branch of Shi’a Islam followed by about 5-10% of Turks within a largely Sunni nation. The Erdogan camp was hoping the Sunni majority would not relate to Kilicdaroglu’s Alevi orientation. Third was the accusation that Kilicdaroglu would collude with the Kurdistan Workers’ Party or PKK, the Kurdish separatist organisation that was responsible for many terrorist activities in Turkey. The extreme implication was that Kilicdaroglu would divide the country along Turkish and Kurdish lines, a charge vehemently denied by Kilicdaroglu. It seems the fear mongering strategy against Kilicdaroglu worked, and Erdogan will go to the runoff election ahead of his rival. What is likely to happen next? Erdogan, nevertheless, has been wounded. If 50+% gives political legitimacy, and Erdogan is the incumbent president, he lost some legitimacy by receiving less than 50% of the votes last weekend. The Turkish media will play a key role in the next two weeks. They are in a conundrum. They cannot be too critical of Erdogan and support Kilicdaroglu for fear of a post-election crackdown if Erdogan wins. But they would also not want to be seen as too supportive of the Erdogan government in case Kilicdaroglu wins the election. Erdogan will have no qualms about putting excessive pressure on the media, and that may be sufficient to tip the election in his favour. Kilicdaroglu will have a chance to face Erdogan, with no other opposition candidate, in an electoral duel. If he is able to appeal to people who did not vote for Erdogan, he may pull off a narrow win. His strategy will be to call for all voters to turn up and vote if they do not want another five year’s of Erdogan rule and economic hardship.

Defense & Security
Flag of Philippines and USA

A look at the expanded ambit of the Washington-Manila MDT

by Pratnashree Basu

The further strengthening of ties between the US and the Philippines is indicative of the breadth and scope of maritime security arrangements in the region.Only four months into the year and 2023 has already been very busy in terms of United States (US) engagement in the Indo-Pacific, particularly in East Asia and the South China Sea. During Philippine President Ferdinand Marcos Jr’s recent visit to the US, alongside reaffirming the continuation of the broader ambit of bilateral partnership, the two countries established ‘ground rules’ on US-Philippine defence cooperation on 3 May. The US and the Philippines have a long-standing treaty partnership that dates back to the post-World War II era. The treaty partnership began with the signing of the Mutual Defense Treaty (MDT) in 1951, which established a framework for military cooperation and mutual defence between the two countries, making Manila the oldest ally of Washington in the region. Beijing, quite expectedly, has expressed its disapproval of this new development characterising it as Washington’s attempt at drawing Southeast Asian nations into a small clique to contain China. Beijing’s usual reaction whenever the US conducts outreach in the region comprises various versions of the narrative that Washington is forcing countries to sacrifice their sovereign identities by becoming pawns in the latter’s efforts to destabilise the region and turn countries against China. Mao Ning, a spokesperson for the Chinese Foreign Ministry stressed that the South China Sea is not a hunting ground for countries outside of it. Meanwhile, the state-run foreign-language news channel, CGTN, warned against President Marcos’s ‘dangerous courtship.’The reinforced scope of the US-Philippines defence partnershipInterestingly, in addition to reiterating US commitments as Manila’s treaty partner and referencing the strong need for maintaining peace and stability in the South China Sea, the joint statement noted that the two sides “affirm the importance of maintaining peace and stability across the Taiwan Strait” as an indispensable element of global peace and security. Defence ties between the US and the Philippines have indeed expanded to include, first the South China Sea and now, the Taiwan Strait. What this indicates is a steady consolidation of security frameworks in the region that would form bulwarks against Beijing’s repeated and expanding overtures into the South China Sea and pressures on Taiwan. Given that the Taiwan Strait lies at a distance of only 800 miles from Manila, it is not surprising that the security of the Strait has been included under the expanded purview of Washington and Manila’s treaty partnership. Under the basic framework of the MDT, the US and the Philippines agreed to come to each other’s aid in the event of an attack by an external aggressor. The MDT has been an important part of the US-Philippines relationship, providing a basis for close military cooperation and joint training exercises. The US has provided military aid and assistance to the Philippines, helping to modernise its armed forces and improve its capabilities in areas such as maritime security and counterterrorism. Despite episodic friction over issues such as human rights and the rule of law, the US-Philippines treaty partnership remains an important part of both countries’ foreign policy agendas. As the geopolitical landscape in Asia continues to evolve, the US-Philippines treaty partnership will likely remain an important pillar of stability and cooperation in the region. Now, the partnership includes a broadening of “information sharing on the principal threats and challenges” to the peace and security of the US and the Philippines. The upgraded ‘ironclad’ alliance commitments also make room for the inclusion of new sites which could contribute to the enhancement of Manila’s maritime security and modernisation efforts under the U.S.-Philippines Enhanced Defense Cooperation Agreement. It also creates a greater space for US involvement in the improvement of local and shared capacities in the delivery of humanitarian assistance and disaster relief.What this means for the Indo-PacificPresident Marcos’s visit comes close on the heels of South Korean President Yoon’s visit to Washington which resulted in the latter agreeing to send an Ohio-class nuclear ballistic missile submarine to Seoul to strengthen deterrence against Pyongyang’s recent nuclear flexing. Earlier in April, Manila allowed Washington access to four additional military bases for joint training, pre-positioning of equipment and building of facilities such as runways, fuel storage, and military housing. Access to these new locations is significant as two of them—Isabela and Cagayan—are positioned facing Taiwan while the Palawan base is in proximity to the Spratly Islands—a source of a long-standing dispute between China and the Philippines. The two countries have agreed to resume joint maritime patrols in the South China Sea and Manila is also assessing a trilateral security pact involving Japan. In mid-April, before President Marcos’s visit, the two countries participated in their largest-ever joint military drills, Exercise Balikatan, in the South China Sea. China is decidedly furious at the pace and scope of these new developments. Undoubtedly, steps like these are strategic and oriented towards boosting the defence postures of ‘like-minded’ countries in the region. But despite Beijing’s strong censure, these measures are indicative of the breadth and scope of maritime security arrangements in the region being on the course to be further strengthened.

Defense & Security
Military of Russian-state funded private military company, Wagner Group

Wagner Group: what it would mean for the UK to designate Putin’s private army a ‘terrorist organisation’

by Brian J. Phillips

The UK is reportedly planning to officially designate the Russian mercenary firm Wagner Group as a terrorist organisation. This would put Wagner on a list with 78 other groups, including ISIS, al Qaeda and newer white supremacist organisations. The UK has had lists of “proscribed organisations” for decades, previously including groups in the Northern Ireland conflict, and then creating a more global list in the early 2000s. Once an organisation is listed, it becomes a criminal offence to belong to the group or support the group – with a punishment of up to 14 years in prison. Dozens of other countries have similar lists. The UK’s proscription of Wagner could be an important global signal – the UK would be among the first to label Wagner a terrorist group. This could encourage other countries to do the same, and possibly discourage countries from working with Wagner in the future. The home secretary has the discretion to proscribe a group if it is involved in terrorism, defined generally as violence to influence the government or intimidate the public for some political or social goal. The minister takes into consideration both the nature of the organisation, and “the need to support other members of the international community in the global fight against terrorism”. Wagner appears to have used terrorism in Ukraine and beyond. For example, two men who reportedly worked for Wagner admitted to killing hundreds of civilians, including dozens of children. The group is also implicated in massacres of hundreds of civilians in Mali, according to Human Rights Watch and other non-governmental organisations. The UK and its allies are supporting Ukraine in its defence against the Russian invasion. As a result, the UK government is within its rights to proscribe the group. But should it? There are some reasons to question whether proscription is the best course of action. It would be somewhat unusual to include Wagner – a company, a for-profit enterprise – with groups like al Qaeda or Boko Haram, which are motivated by radical ideologies more than profits. For this reason, it seems, the US has labelled Wagner as a transnational criminal organisation, and imposed sanctions usually used on organised crime. Wagner also stands out because it works for the Russian state, so it is less of a “non-state actor” (and arguably not one at all) than traditional terrorist groups. However, the UK already proscribes a variety of groups that receive state support, such as Hezbollah. Including state actors alongside non-state actors on a terrorist list can blur the distinction of what is a “terrorist”, and open such lists up to endless expansion, but it has been done before.A symbolic designation It’s questionable how much of an effect UK proscription would have on a group operating thousands of kilometres away. However, the government has expressed suspicion about Wagner transferring money from the UK after financial sanctions were placed on Russian oligarchs. Such actions would become illegal with proscription. Any support for the group, by any person or institution in the UK, would be criminalised. Additionally, my own research suggests that proscription can reduce terrorism when the group operates in a country (like Ukraine) aligned with the proscribing state. International cooperation on counterterrorism is essential. Another study I worked on with Hyeran Jo and Joshua Alley shows that proscription is more likely to be effective when used on groups that depend on funding from private donations, for example from a diaspora community. Making it illegal to associate with or fund a group means their support is quickly eroded, as are their capabilities to carry out attacks. This raises questions about how much proscription would hurt Wagner, which is mostly funded by the Russian state. Proscription might be a helpful addition to the economic sanctions already placed on Russia. But we shouldn’t expect it to have major financial effects on its own on the group’s activities, since Wagner gets most of its resources from Russia. More than direct material consequences, proscription could be important for symbolism. Declaring Wagner a terrorist organisation would further signal international disapproval of the Russian invasion, and it would be a mark of shame for Wagner, which is trying to expand its global footprint. Countries like Mali that hire Wagner might look for alternatives if the group is widely recognised as a terrorist organisation. Negative consequences It is important to note that there can be negative consequences of terrorist proscription. Scholars have shown that it can make it more difficult to end wars. Governments become more hesitant to make a deal with a legally-designated “terrorist”, and third parties are slow to facilitate negotiations for the same reason. However, this might not directly matter for the Wagner case, since Ukraine would negotiate with Russia, not Wagner. There are also reasons to believe that proscription can have negative economic effects. Humanitarian organisations have warned that proscription can create a “chilling effect” on charity donors, non-governmental organisations and other important actors who may want to support civilians affected by these situations, because of concern about inadvertently funding a terrorist organisation, or being accused of doing so. The UK government should keep these concerns in mind and try to mitigate negative unintended effects of proscription. Overall, terrorist proscription might not be the ideal policy tool for Wagner, since the group is a business and not a traditional ideological group. And it’s not clear proscription would affect the group much in the short term, since most of its money comes from the Russian state. However, proscription could be an important global signal, and it could deter potential support for an entity that has clearly used terrorism.

Energy & Economics
Turkish lira banknote and financial stock chart

Erdoğan has wrecked Turkey’s economy – so what next?

by Gulcin Ozkan

Turkey’s 2023 election is one of the most significant in its hundred-year history. After years of currency crashes, vanishing foreign currency reserves and surging inflation, rethinking economic policy will be a top priority for whoever is eventually sworn in. At the time of writing President Recep Tayyip Erdoğan is claiming victory, but votes are still being counted and a run-off round is looking distinctly possible. Erdoğan and his ruling AKP (Justice and Development Party) came to power in 2002 not long after the previous incumbents’ economic mismanagement had caused a major crisis that sent the lira and stock market plunging. In exchange for an IMF rescue, the outgoing government had introduced reforms such as an independent central bank, banking and finance regulators, taking steps to reduce public deficits and debt, and proper public procurement rules. The AKP wisely stuck to these reforms, which paid handsome dividends. Inflation fell from above 50% in 2001 to single digits within three years. Foreign investment improved significantly, allowing annual economic growth to average 7% from 2002-07. This produced sizeable productivity gains, and benefited large parts of society, significantly reducing inequality. The global financial crisis of 2007-09 caused Turkish exports to collapse, but the country recovered relatively quickly after advanced economies cut their interest rates to almost zero. This encouraged investors to borrow cheaply and put money into emerging markets like Turkey in search of decent returns. Choppy waters The turning point, both politically and economically, came in 2013. Demonstrations in Istanbul against construction activity in Gezi Park, one of the last remaining green areas in the city, quickly turned into a nationwide movement against the government’s growing authoritarianism. Erdoğan responded with a crackdown, deploying riot police and detaining hundreds of protesters. This would become a defining characteristic of his regime, permeating through to all other aspects of governance. Around the same time, international investors began pulling back from emerging markets as the US Federal Reserve started tightening monetary policy. There have been several cycles of loosening and tightening since then, but the money hasn’t returned to Turkey. Foreign ownership of Turkish government bonds has fallen from 25% in May 2013 to below 1% in 2023. Similarly, investors have pulled out more than US$7 billion (£5.6 billion) from the Turkish stock market. Investor concerns grew worse after a referendum in 2017 created an executive presidency that bestowed enormous powers on Erdoğan. He has used this to the full, effectively reducing most institutions to independent entities only on paper. The central bank of Turkey is a case in point. As inflationary pressures started to mount in 2021, and unlike almost every other central bank, it cut interest rates sharply - from 19% to 8.5% today. This pushed inflation to a 24-year high of 84% in August 2022. Erdoğan’s insistence on low interest rates to promote growth has also severely weakened the lira, which is down 80% against the US dollar in the last five years. To add to the problem, Turkey’s imports are much higher than its exports, causing a current account deficit of 6% of GDP. Turkey’s tragic lira: Lira vs US dollar. TradingView To prop up the lira, the authorities have squandered a huge amount of foreign exchange reserves. They have also resorted to swapping agreements with friendly Gulf nations like the United Arab Emirates, in which Turkey has borrowed Emirati dirhams in exchange for lira. But this doesn’t address the underlying problems. As of April 2023, Turkey’s net foreign currency reserves are down to negative US$67 billion. The authorities have been forced to introduce unconventional measures to keep the wheels turning. These have included protecting lira bank deposits against dollar depreciation by promising to make up any losses, requiring exporters to relinquish 40% of their foreign currency earnings, and barring banks from lending to companies with significant foreign currency holdings. What next? A rethink is inevitable after this election, though two very different scenarios are foreseeable. If Erdoğan wins, one would expect some normalisation with the west. Turkey has been difficult over major issues such as Sweden and Finland joining Nato, recently yielding on Finland but continuing to object to Sweden. With the EU the major destination for Turkey’s exports and hence source of hard cash, Ankara’s approach to the west could potentially soften under Erdoğan after the election. On the other hand, the AKP’s election manifesto has not offered any novelty on the economic policy front. It seems very unlikely that Erdoğan would change his stance on low interest rates, in which case the lira is likely to plunge further. Opposition leader Kemal Kilicdaroglu has consistently been ahead in the polls in the run-up to the election and has just been boosted by the withdrawal of one of the other main candidates. An opposition victory, especially if decisive, would allow for a proper reset, most obviously starting with raising interest rates to deal with high inflation. This would maximise foreign investment, boosting economic growth while alleviating the pressure on the lira. This is easier said than done, however. Interest rates might need to rise to 30% to break inflation, which would likely cause a nasty recession. As if that wouldn’t put enough pressure on the government’s finances, there have been various electoral giveaways and costly promises from both sides. Much other spending is also required. The US$50 billion cost of building new homes in regions hit by the two recent earthquakes is just one example. Meanwhile, there has been a significant deterioration in the rule of law, press freedoms and civil liberties. The AKP has relied overly on construction for growth, which has come at the expense of farming, turning a country that was once self-sufficient in food into a major importer. Education and procurement have suffered from endless reforms. Success in any business in Turkey now requires access to the ruling party elite. But if undoing all this damage is going to be arduous, it still matters greatly for the rest of the world. Turkey is a key part of international community, not only as a member of Nato and the G20 but at the crossroads of trade between Asia and Europe. It still has enormous potential, with a young population and dynamic business culture. The results of this election are therefore likely to have ramifications far beyond Turkey’s borders.

Diplomacy
Russian President Vladimir Putin, Central Asian countries leaders: Uzbekistan Shavkat Merziyoev, Kyrgyzstan Sadyr Japarov, Tajikistan Emomali Rahmon, Kazakhstan Kosym Tokaev

Why Did Central Asia’s Leaders Agree to Attend Moscow’s Military Parade?

by Temur Umarov

Russia’s annual Victory Day holiday on May 9, when the country marks the Soviet victory over Nazi Germany in World War II, was expected to be a fairly low-key affair this year. Just three days before the festivities, which included a military parade on Red Square, only one high-ranking guest was due to attend: Kyrgyz President Sadyr Japarov.  On the eve of the parade, however, it emerged that the presidents of four other Central Asian nations had also arrived at the last minute, along with Armenian Prime Minister Nikol Pashinyan and Belarusian President Alexander Lukashenko. For over a year now, following Russia’s full-scale invasion of Ukraine last February, the Central Asian leaders have tried to avoid the issue of the war. So why have they now risked both their reputations and their safety (after all, there were drones flying over the Kremlin the week before the parade) to attend Moscow’s military festivities in what is being seen by many as a gesture of support for Russia? Even before the war, the Central Asian presidents preferred to celebrate May 9 in their own countries: any holiday that unites the nation is seen as a way of strengthening their relatively young statehood. Some also tried to use the Soviet-era holiday to make the point that the major victory of the 20th century had not been achieved by Russia alone. Each of the Central Asian capitals held its own military parade and competed with Russia and among themselves to stump up the most lump-sum payments for veterans. Sometimes their leaders still attended the parade in Moscow – that was never a problem. Russia’s full-scale invasion of Ukraine changed everything. Russian President Vladimir Putin began to use Victory Day to justify his aggression, comparing Russia’s historic fight against the Nazis to its current so-called “special operation” against the Ukrainians.  This year’s parade inevitably resulted in images of the Central Asian leaders sitting alongside Russian troops who have been fighting in the war and applauding Putin’s speech about a “sacred struggle for the motherland.” Those images will make it much harder to insist that the countries of Central Asia do not support Russia's aggression against Ukraine. This conclusion was, of course, perfectly clear to those involved, which is why the Central Asian presidents did not initially intend to be there, as evidenced by official statements. Two weeks before the parade, Kazakh President Kassym-Jomart Tokayev announced that on May 9, he would commemorate those killed in World War II in the capital Astana, while Uzbek President Shavkat Mirziyoyev ordered a fireworks display in Tashkent on May 9, with the clear intention of attending himself. Nor did Moscow itself even intend to invite anyone at first. On April 24, Putin’s spokesman Dmitry Peskov said that since it was not a big anniversary this year, no “special invitations” had been sent to anyone. Only Japarov’s visit was planned in advance: both the itinerary and the makeup of the impressive official delegation were made public. It seems, therefore, that everything in Russia is now conducted like a special operation – even invitations to a parade. “Special invitations” were issued one after another just a few days before the parade in the form of phone calls from Putin, as reported on the websites of Tajik President Emomali Rahmon on May 5 and Turkmen President Serdar Berdymukhamedov on May 7. Mirziyoyev and Tokayev’s attendance, meanwhile, was announced with photographs of them exiting their planes in Moscow. In all likelihood, with the exception of Japarov, the Central Asian presidents initially managed to politely decline the invitation to Moscow. But when Putin called them, it became not only difficult to do so, but also dangerous. All of the Central Asian nations are proud of their multi-vector foreign policy, and relations with the West are just as important to them as with Moscow or Beijing. Now that Russia and the West are on the verge of war, it has become far trickier for Central Asia to maintain its partnerships with both sides. The last few years have shown that when the West imposes sanctions against a country, they are observed by everyone, including China. Accordingly, since the invasion, Central Asia’s leaders have tried to strike a balance. None of them have recognized the territories annexed from Ukraine as part of Russia, but nor have they publicly criticized Putin or condemned the war. They have all agreed to comply with sanctions, yet have made no real efforts to stop Russia from using their territory to circumvent the restrictions. It’s a precarious balance. Much to Moscow’s annoyance, Western delegations have repeatedly traveled to Central Asia to advise local authorities on sanctions compliance, and have threatened secondary sanctions for failure to comply. Moscow has responded with veiled and asymmetrical threats, such as halting exports of Kazakh oil to Europe or prohibiting the import of products from Eurasian Economic Union countries, supposedly over GMOs. Central Asia’s leaders are left to decide for themselves how much of this is coincidence, and how much a response to their statements and actions. Therefore, the deciding factor in the presidents’ visit to Moscow was likely that the West’s actions are predictable, while Moscow’s are not. Quite simply, taking part in Moscow’s Victory Day celebrations may have looked bad, but Washington and Brussels were unlikely to impose sanctions simply for attending a parade, while the potential consequences from Moscow of refusing to attend were hard to predict. There were also pragmatic reasons for visiting Moscow. Contrary to expectations, far from severing ties with Russia, Central Asia actually drew closer to it in 2022. The reality is that it can be profitable to be located next door to a giant, isolated economy and diplomatic pariah. Firstly, Central Asian companies have made record profits from the disappearance of Western imports from the Russian market. Exports from all five Central Asian countries to Russia soared in 2022. Secondly, Central Asia is becoming a financial hub for Russians moving their savings out of Russia. Last year, more than $770 million was transferred from Russia to Kazakhstan – an almost sevenfold increase from 2021. Transfers to Uzbekistan, meanwhile, more than doubled to $17 billion. Thirdly, Central Asia is now the focus of far more international attention than ever before, with Western countries trying to persuade the region not to help Russia in any way, and Moscow trying hard to stop it from drifting away. Recognizing that this attention is largely the result of their proximity to Russia and will not last forever, Central Asia’s leaders are trying to milk the current situation for all it is worth. Accordingly, individual actions should not be interpreted as either definitive support for Russia or a move to sever relations with it. Central Asia’s political elites view the invasion of Ukraine through the prism of their own interests, top of which is the preservation of their own regimes. For this reason, they will continue to show loyalty to Putin, attending parades with him and periodically praising Moscow in public speeches. It might look like an attempt to have it both ways, but this is the survival strategy the Central Asian regimes consider most likely to work.

Diplomacy
Flags of Moldova and European Union standing close with Russian flag staying in the far background pointing Moldova is getting closer with EU than Russia

How Russia Torpedoed Its Own Influence in Moldova

by Galiya Ibragimova

Russia’s invasion of Ukraine has turned neighboring Moldova into a tinder box. Its border with Ukraine stretches for over 1,200 kilometers, and Russian missiles have entered Moldovan airspace on more than one occasion. Moscow has threatened to prevent Moldova from becoming another “anti-Russia,” while making fearmongering accusations that the Ukrainian army has plans to seize Moldova’s breakaway region Transnistria. The direct military threat to Moldova, however, receded after the Ukrainian army defeated Russia in Kherson, and the Moldovan government appears to have successfully adapted to the new situation and restored relative stability. Despite historically strong pro-Russian sentiment, the vast majority of Moldovans now agree that cooperation with Moscow has become too toxic, while the allure of EU integration—such as the opportunity to work there—is more tempting than anything Russia has to offer. Chisinau is accordingly taking increasingly decisive measures in its fight against Russian interference.  A state of emergency has been in effect in Moldova ever since Russia invaded Ukraine on February 24, 2022, affording the government and law enforcement agencies additional powers. So far, the authorities have not resorted to radical measures, but the fact that the state of emergency is extended every two months shows that they are seriously concerned about the threat of destabilization. Throughout the past year, Chisinau has condemned Moscow for the war, but avoided direct confrontation, and was initially reluctant to actively oppose Russian interference. Moldovans welcomed Ukrainian refugees, but declined Kyiv’s requests to sell it six MiG-29 fighter jets, which was a bitter pill for Kyiv to swallow, considering that the Ukrainian army had thwarted Russia’s attempts at the start of the war to carve a corridor through Ukraine to Moldova’s Moscow-backed breakaway region, Transnistria. If it were not for Ukraine’s counterattack, then Moscow would likely have already taken control of Moldova and installed a pro-Russian president there: Russia’s rhetoric about the illegitimacy of the current Moldovan leadership is getting louder and louder. It is unlikely that Moldova, neither a large nor wealthy country, would have been able to put up much of a fight. Chisinau’s caution is understandable: after all, there are 1,500 Russian troops stationed in Transnistria, both as peacekeepers and as guards for Soviet-era arms depots. Moldova only joined anti-Russian sanctions this spring. Before that, the government demurred, citing the country’s dependence on the Russian economy, even though Moldova’s main trading partner has long been the European Union. Last year, almost 60 percent of Moldovan exports went to the EU, while less than a quarter went to the entire Commonwealth of Independent States, including Russia. And while exports to the EU increased by a third in 2022, those destined for Russia decreased by about the same amount. Even Moldova’s long-standing and almost complete dependence on Russian gas supplies has significantly weakened during the past year, largely due to the actions of Russia itself. Last October, Russia’s Gazprom reduced gas supplies to Moldova from 9 million to 5.7 million cubic meters per day in a payment dispute.  Moscow also reduced gas supplies to Transnistria, which almost left Moldova without electricity, since until 2022 up to 70 percent of electricity supplied to the rest of Moldova came from Transnistria and its regional power plant, which runs on Russian gas. The rest was supplied by Ukraine. Due to the reduction in gas supplies, Transnistria stopped selling electricity to Chisinau, while Kyiv also stopped exports due to the Russian missile strikes against its energy infrastructure, which had caused severe energy shortages across the war-torn country. Soon afterward, Chisinau reached an agreement with Tiraspol, Transnistria’s de facto capital. Chisinau agreed to send its own Russian gas supplies to Transnistria in exchange for the resumption of electricity supplies from the latter. To meet its domestic requirements, Moldova began buying gas from the EU, which by January 2023 had enabled it to save $330 per 1,000 cubic meters compared with Russian prices thanks to the relative stabilization of the European gas market.  In the spring, Ukraine resumed electricity exports, and the Transnistria power plant returned to its prewar capacity. The energy crisis hit Moldovan consumers hard, but prod Chisinau to establish alternative gas suppliers, including Romania and Greece, with plans to add Azerbaijan to that list. This energy diversification has strengthened the Moldovan government’s position in its relationship with Moscow. By this spring, following the resignation of the government and a subsequent reshuffle, Moldova had begun to toughen its stance on Russia. New Prime Minister Dorin Recean was previously a national security advisor and interior minister, and his appointment was a signal that security issues are Chisinau’s top priority right now. A few days before the reshuffle, President Maia Sandu said that Ukrainian intelligence had intercepted a Kremlin plan to organize a coup in Moldova through opposition protests and the involvement of foreign mercenaries. It’s hard to verify the claims, but what is certain is that Russia has always had extensive influence in Moldova, and has traditionally enjoyed the support of about half the population. Even now, polls show that while the majority of Moldovans condemn the Russian invasion of Ukraine, about 30 percent still admire Putin. Since last fall, the Shor party has been leading Moldovans in anti-government protests, officially against high utility prices. Russian propaganda portrays the protests as anti-European and nationwide, and describes the party’s head, the fugitive oligarch Ilan Shor, as the leader of the Moldovan opposition. But in reality, the protests only attract a couple of thousand people, and those participants do not hide the fact that they are paid to attend.  Ilan Shor fled to Israel after being sentenced to fifteen years in prison in Moldova for his role in laundering $1 billion in three Moldovan banks. A change of regime in Chisinau to a pro-Russian government would allow him to avoid prosecution and return to Moldova. Many believe that the Kremlin has offered him precisely these guarantees. The Moldovan government was concerned by the protests, but did not dare to take tough action: the Shor party has six seats in parliament, and freedom of assembly is enshrined in the constitution. But the reports of Kremlin plans to destabilize Moldova, and then the emergence of a document titled “Strategic Goals of the Russian Federation in the Republic of Moldova,” which spelled out a plan for regime change, forced Chisinau to act more decisively. The new Moldovan cabinet has appealed to the Constitutional Court to declare the Shor party illegitimate for promoting the interests of a foreign state. Meanwhile, in response to the opposition rallies, Sandu has called on Moldovans to assemble on Chisinau’s main square on May 21 in support of EU integration. About 60 percent of Moldovans are in favor of their country’s accession to the European Union. The reshuffled government has also stopped the broadcasting of Russian TV channels, and stepped up its efforts to publicly refute dubious Russian claims, such as that Ukraine is preparing to occupy Transnistria. The powers of the Information and Security Service, Moldova’s main intelligence agency, have been expanded, and a number of Russian officials—including President Vladimir Putin—have been banned from entering the country. Chisinau’s position on Transnistria has also become tougher. In February, the Moldovan parliament amended the law to make separatism an offense punishable by jail time, prompting outrage in Tiraspol. Chisinau insists that the amendments will not be applied retrospectively: only to future manifestations of separatism. Still, it is not yet clear how the new law will work in practice, so for now, Transnistrian officials prefer not to be seen in Chisinau. Russia’s actions have also prompted a public discussion in Moldova about the country’s armed forces, which will not be able to put up much resistance to a serious security threat. At the Munich Security Conference in February, Sandu asked NATO countries to provide Moldova with air defense systems. The government has not yet abandoned neutrality, but is making it clear that it is ready to turn to NATO for help in the event of an escalation. Chisinau’s course toward more resolute resistance to the Kremlin doesn’t mean that the country will be able to rid itself of its dependence on Russia overnight, of course. Nor will Moscow relinquish its foothold inside the country without a fight. Most likely, the Kremlin will continue to interfere in Moldovan political life by financing pro-Russian parties, portraying NATO as a threat, and accusing Sandu of trying to drag Moldova into the war. It’s possible that the pro-Russian forces will be able to take advantage of the country’s socioeconomic problems to put in a decent showing in the next elections. Even that scenario, however, will not result in fundamental changes to Moldova’s foreign policy. Russia’s aggression against Ukraine is helping to consolidate Moldovan society in favor of EU integration and emancipation from Moscow. No matter who ends up leading the country in the future, they will not be able to ignore that consensus.

Defense & Security
Radiation sign over Ukrainian map, Nuclear powers station in Ukraine

Ukraine’s Zaporizhzhia Nuclear Power Plant: The Looming Specter of Europe’s Most Serious Risk

by Najmedin Meshkati , Zhamilya Mussaibekova

Located in southeastern Ukraine, Zaporizhzhia Nuclear Power Station (ZNPP) is Europe’s largest power plant that produced 23% of all Ukrainian electricity before Russia's invasion.  This critical energy source is amidst the chaos and destruction of the ongoing Russia-Ukraine conflict, a harrowing struggle that has wrought immeasurable suffering and upheaval upon the region. Following its capture by the Russian forces on March 4th 2022, there have been drastic disruptions to safe energy production and a heightened global concern for nuclear safety in the region. Introduction and backgroundZaporizhzhia Nuclear Power Plant (ZNPP), located in the Ukrainian city of Enerhodar, was built by Soviet design in the 1980s, with its last reactor being connected to the grid in 1995.  Amongst the ten largest nuclear facilities in the world, the Zaporizhzhia power plant consists of six water-cooling and water-moderating pressurized reactors. A global nuclear scare started on February 24, 2022, when Ukraine informed the International Atomic Energy Agency (IAEA) that “unidentified armed forces” have taken control of all facilities of Chornobyl Nuclear Power Plant located in the Exclusion zone. The IAEA appealed for maximum restraint to avoid any action that may put the country’s nuclear facilities at risk and stressed the IAEA’s 2009 General Conference decision that “any armed attack on and threat against nuclear facilities devoted to peaceful purposes constitutes a violation of the principles of the United Nations Charter, international law and the Statute of the Agency”. Later that week, on March 2nd, Russia stated that its military forces have taken control of the territory around Ukraine’s Zaporizhzhya Nuclear Power Plant. The next day, a large number of Russian tanks and infantry broke through the block-post into the town of Enerhodar, just a few kilometers from the ZNPP. Director General Grossi, appealed for “an immediate halt to the use of force at Enerhodar and called on the military forces operating there to refrain from violence near the nuclear power plant.” By March 4th, Ukraine informed the IAEA that the ZNPP had been shelled overnight, and a fire broke out on site. Although no essential equipment was affected, the first military action      resulted in the activation of the IAEA’s Incident and Emergency Centre in full response. At the end of the day, Ukraine announced that Russian forces had taken control of the ZNPP, but the power plant continued to be operated by its regular staff.  At the time, out of the plant’s six reactor units, two had undergone controlled shut down, two were being held in low power mode, one was shut down for maintenance and one was operating at 60 percent power. ZNPP’s dire situation since March 4, 2022Before the conflict, the ZNPP had access to the grid through four high-voltage power lines, but they have now all fallen victim to the fighting. The back-up power lines connecting the ZNPP to a nearby thermal power station are also down. The plant had also previously temporarily lost direct access to the electricity grid but could then still receive power through available back-up lines, or from one of its reactors that was still operating at the time. The Russian conquest was soon followed by disruptions in the electricity supply to the nuclear power plant, one of the seven indispensable pillars of nuclear safety. Less than two weeks after Russian forces seized the plant, Zaporizhzhia lost one of its three power lines. Since then, mainly as a result of shelling or other military action nearby, the nuclear plant has suffered numerous power cuts, mainly as a result of shelling. Although it has emergency diesel generators that are available to provide backup power, a secure off-site power supply from the grid is integral to ensuring nuclear safety.  Thus, following its first complete external power outage in August, Director General Rafael Mariano Grossi set off from the Agency’s headquarters on an IAEA Support and Assistance Mission to Zaporizhzhia (ISAMZ) to undertake vital safeguards activities at the plant.  That October, Zaporizhzhia lost its last remaining external power source due to renewed shelling, and had to rely on diesel generators again to cool the reactor and support other nuclear safety and security functions. In the next week, Zaporizhzhia lost all external power two more times, receiving electricity from a backup system for the third time in a span of ten days. Similar incidents unfolded in November as well, as the IAEA Director General continued to urge for the critical need to demilitarize the zone.  Based on historical data and industry experience, the nuclear industry aims for an average unplanned outage rate of less than 0.1 per reactor per year which statistically would mean less than one unplanned outage every 10 years. Zaporizhzhia Nuclear Power Plant experienced six in the past year alone. Cold shutdown of the ZNPP reactors doesn’t remove the risk – Spent fuel pools need constant coolingThe fission reaction that generates heat in a nuclear power plant is produced by positioning a number of uranium fuel rods in close proximity. Shutting down a nuclear reactor involves inserting control rods between the fuel rods to stop the fission reaction.The reactor is then in cooldown mode as the temperature decreases. According to the U.S. Nuclear Regulatory Commission, once the temperature is below 200 degrees Fahrenheit (93 Celsius) and the reactor coolant system is at atmospheric pressure, the reactor is in cold shutdown. When the reactor is operating, it requires cooling to absorb the heat and keep the fuel rods from melting together, which would set off a catastrophic chain reaction. When a reactor is in cold shutdown, it no longer needs the same level of circulation. It was announced on September 11, 2022 by Energoatom, operator of the ZNPP that it was shutting down the last operating reactor of the plant’s six reactors, reactor No. 6. The operators have put the reactor in cold shutdown and this shutdown has mitigated a risk. Spent fuel pools also need constant circulation of water to keep them cool. And they need cooling for several years before being put in dry casks. One of the problems in the 2011 Fukushima disaster in Japan was the emergency generators, which replaced lost off-site power, got inundated with water and failed. In situations like that you get “station blackout” – and that is one of the worst things that could happen. It means no electricity to run the cooling system. In that circumstance, the spent fuel overheats and its zirconium cladding can cause hydrogen bubbles. If you can’t vent these bubbles they will explode, spreading radiation. If there is a loss of outside power, operators will have to rely on emergency generators. But emergency generators are huge machines – finicky, unreliable gas guzzlers. And you still need cooling waters for the generators themselves. The biggest worry is that Ukraine suffers from a sustained power grid failure. The likelihood of this increases during a conflict, because pylons may come down under shelling or gas power plants might get damaged and cease to operate.  According to one of the IAEA’s latest updates (#154, April 21, 2023):  “As a result of the warmer weather, the operator has started to put reactor Unit 6 in cold shutdown which is expected to be reached by the weekend, leaving only Unit 5 in hot shutdown to produce hot water and steam for the site. The two reactors were in hot shutdown during the winter to provide steam and heating to the ZNPP as well as heating to the nearby city of Enerhodar, where many plant personnel live.” The cooling pumps for the spent fuel pools need much less electricity than the cooling pumps on the reactor’s primary and secondary loops, and the spent fuel cooling system could tolerate a brief electricity outage. Now, at least if the plant loses offsite power, the operators won’t have to worry about cooling an operating reactor with cranky diesel generators. However, the plant still needs a reliable source of electricity to cool the six huge spent fuel pools that are inside the containment structures and to remove residual heat from the shutdown reactors. The serious risk of military actions for spent fuel storage racksOne more important factor is that the spent fuel storage racks in the spent fuel pools at the Zaporizhzhia Nuclear Power Plant were compacted to increase capacity, according to a 2017 Ukrainian government report to the IAEA. The greater number and more compacted the stored spent fuel rods, the more heat they generate and so more power is needed to cool them. There is also a dry spent fuel storage facility at the plant. Dry spent fuel storage involves packing spent fuel rods into massive cylinders, or casks, which require no water or other coolants. The casks are designed to keep the fuel rods contained for at least 50 years. However, the casks are not under the containment structures at the plant, and, though they were designed to withstand being crashed into by an airliner, it’s not clear whether artillery shelling and aerial bombardment, particularly repeated attacks, could crack open the casks and release radiation into the grounds of the plant. The closest analogy to this scenario could be a terrorist attack that, according to a seminal study by the National Research Council, could breach a dry cask and potentially result in the release of radioactive material from the spent fuel. This could happen through the dispersion of fuel particles or fragments or the dispersion of radioactive aerosols.  This would be similar to the detonation of a “dirty bomb,” which, depending on wind direction and dispersion radius, could result in radioactive contamination. This in turn could cause serious problems for access to and work in the plant. According to the IAEA’s latest update at the time of writing this analysis (#155, April 28, 2023): “IAEA experts present at Ukraine’s Zaporizhzhya Nuclear Power Plant (ZNPP) were again forced to shelter this week after missile attack warnings, with the sound of continued shelling in the distance as military activity continues in the region. In addition, one landmine exploded near the site, Director General Rafael Mariano Grossi said today…The increased military presence and activity in the region again underlines the importance and urgency of agreeing on the protection of the plant, Director General Grossi added.”What is going on and what can be doneWe need to begin to realize and emphasize that the need for compromise extends beyond Russia alone. There has been a certain reticence around the acknowledgement that Ukraine, despite being the “aggrieved” country, must also be willing to make concessions.  To designate Russia as the sole provoker of hostilities at the Zaporizhzhia plant is an objective falsity. It would be illogical for Russia to shell the plant once it has already seized control, unless there were provocations from the Ukrainian side. Interestingly, in spite of countless calls to pacify the region from Ukrainian and international diplomatic leaders, The Times of London on April 7, 2023 published a report detailing a failed Ukrainian attack on the Russian-controlled Zaporizhzhia Nuclear Power Plant (ZNPP) that took place in October 2022. Ukrainian special forces launched an attack on the ZNPP, deploying US-provided HIMARS rockets at the site — an attempt that ultimately failed because of a stronger Russian counteroffensive. Any sort of projectiles nearing the site of a nuclear power plant is an inherently hazardous and potentially catastrophic assault, regardless of the origin of the launch.   Given the high stakes involved and the potential for irreparable harm, it is imperative for even Ukrainian forces to exercise restraint and refrain from any military action that could escalate the conflict, including airstrikes on Zaporizhzhia, even if it is under Russian control. Taking into account the tumultuous events that have transpired at Zaporizhzhia this past year, for the sake of preventing a global nuclear disaster, it is pertinent to prioritize nuclear safety. Counterintuitive as it may seem, it may be more prudent for Ukraine to strategically withdraw from the ZNPP site and attempt to repatriate it later in the war, when more comprehensive diplomatic negotiations can happen and Russia potentially depletes its resources.  War, in our opinion, is the worst enemy of nuclear safety. This is an unprecedented and volatile situation. Only through active, pragmatic engineering and nuclear diplomacy can an amenable and lasting solution to this vexing problem be found. In the foreword of President John F. Kennedy’s book, Profiles of Courage, his brother, Robert Kennedy said, President Kennedy was fond of quoting Dante that “the hottest places in Hell are reserved for those who, in a time of great moral crisis, maintain their neutrality” (December 18, 1963).  The potential catastrophic consequences of the Zaporizhzhia nuclear power plant conflict demand action and a willingness to take a stance.  For Ukraine, taking a stance can mean stepping back and protecting the world from a nuclear calamity. The failure to do so risks being condemned to the “hottest places in Hell,” not in a figurative sense, but in a literal one. As the memory of the Chornobyl Disaster of 1986 still lingers, the potential danger posed by Zaporizhzhia's six reactors far surpasses that of the single reactor that caused the Chornobyl disaster. In the unfortunate event of an explosion, the repercussions would be hexfold that of Chernobyl's catastrophic aftermath, marking a somber moment in the history of nuclear power. Despite the uncertainty surrounding the outcome of the  Russia-Ukraine conflict, the end of this protracted war is imminent. Even if we are facing problems that, as Robert Kennedy put it, people “fifty, even ten years ago, would not have dreamed would have to be faced,” it is of utmost importance to prioritize humanity above political objectives.  Following Dr. Henry Kissinger’s advice, Ukraine may like to exercise diplomacy, which “is the art of restraining power”, rather than brute force to repatriate its own Zaporizhzhia Nuclear Power Plant, considering the high risks associated with military action on site. Ukrainians should not shame their military officers if they retreat from Zaporizhzhia, but rather, commend them for their strategic investment into the future prosperity of their country, their continent and possibly, their planet. A true measure of a hero lies not in their victories, but in their willingness to fight for what is right, even in the face of overwhelming odds. Right now, possibly accepting status quo at Zaporizhzhia is, at least in our opinion, what is the most right, but most certainly what is imperative. With Russia’s adamant military politics, Ukraine would be bravely resisting aggression on behalf of the world, on behalf of a future.  We realize that the IAEA has called on Russia and Ukraine to set up a “safety and security protection zone” around the plant. However, the IAEA is a science and engineering inspectorate and technical assistance agency. Negotiating and establishing a protection zone at a nuclear power plant in a war zone is entirely unprecedented and totally different from all past IAEA efforts. Establishing a protection zone requires negotiations and approvals at the highest political and military levels in Kyiv and Moscow.  It could be accomplished through backchannel, Track II-type diplomacy, specifically nuclear safety-focused engineering diplomacy. In the meantime, the IAEA needs strong support from the United Nations Security Council in the form of a resolution, mandate or the creation of a special commission. Admittedly, this is only a stopgap measure. In parallel with the International Atomic Energy Agency’s effort under the leadership of its Director, General Rafael Mariano Grossi, we believe that the U.N. Security Council should immediately empower a special commission to mediate between the warring parties. It could be modeled after the United Nations Monitoring, Verification and Inspection Commission in 2000, and appoint a prominent, senior international statesman as its head. We believe the person should be of the caliber and in the mold of the legendary former director general of the International Atomic Energy Agency, Dr. Hans Blix of Sweden. Blix led the agency at the time of the Chernobyl accident in 1986 and commands respect in today’s Russia and Ukraine. The great Prussian military theorist Carl Philipp Gottfried von Clausewitz once said: “War is a mere continuation of policy by other means.”  These words still resonate today, reminding us that the quest for peace is not just about putting an end to violence, but about forging a path towards progress and prosperity. It is incumbent upon us to recognize that bringing an end to this conflict is not merely a cessation of violence, but a catalyst for the advancement of policy. As we strive towards resolving conflicts and achieving a lasting peace, it is our duty to recognize that this effort is not merely a tactical move, but a transformative one. By embracing a policy-driven approach, we can internalize the true nature of conflict, and use it as a means to move forward and effect real change. So let us be bold, but at the same time be pragmatic, and let us remember the words of Clausewitz as we work towards a brighter future for all. Let us see war not as an end in itself, but as a means to an end – a means to build a world where conflict is a thing of the past, and policy is the key to progress. President John F. Kennedy’s bold vision for political courage and making compromises in his aforementioned book, Profiles of Courage, also beautifully applies to this very context of Ukraine preserving its principles of sovereignty and territorial integrity while tactfully compromising with Russia over safeguarding Zaporizhzhia: “We shall need compromises in the days ahead, to be sure. But these will be, or should be, compromises of issues, not of principles. We can compromise our political positions, but not ourselves. We can resolve the clash of interests without conceding our ideas... Compromise does not mean cowardice. Indeed it is frequently the compromisers and conciliators who are faced with the severest tests of political courage as they oppose the extremist views of their constituents.”

Diplomacy
Set of different Creative Country labels. Made In Badges With Flags. Vector illustration

Why France and Germany will not ‘decouple’ from China

by Genevieve Donnellon-May

With China increasingly assertive in pursuing its economic and geopolitical interests abroad, US–China tensions are rising, leading many traditional American allies to consider following Washington’s lead in pursuing economic ‘decoupling’ from China. Their strategy aims to reduce economic reliance on China through extensive export controls and re-ordered supply chains. Yet in Western Europe, France and Germany are showing an unwillingness to join their allies in decoupling from China. French President Emmanuel Macron’s recent comments that Europe should not get ‘caught up in crises that are not ours’ demonstrate this. If anything, their relationship with Chinese capital is thriving. China is one of France and Germany’s major trading partners outside of the European Union and a significant export market for goods such as luxury goods and pharmaceuticals. Exports to China made up 7.4% of Germany’s total exports and 4.21% of France’s in 2019, with these numbers growing over the last three years to record levels. Given China’s growing middle class, the country presents an enormous potential consumer market in years to come. According to recent reports, France’s bilateral trade in goods with China exceeded US$100 billion for the first time in 2022, an increase of 14.6% on 2021­. The recent signing of 18 cooperation agreements by 46 French and Chinese companies across numerous sectors further emphasises the gathering pace of these trade relationships. As for Germany, its total trade with China saw an increase of 21% from 2021. While exports increased by a modest 3.1%, Germany’s imports from China accounted for much of the growth, soaring by more than a third. Specifically, Germany imports from China about two thirds of its rare earth elements, many of which are indispensable in batteries, semiconductors, and magnets in electric cars. This shows that Germany and France will rely more on China as time passes for the critical raw materials needed to fuel their economic growth and energy transitions. Furthermore, various French and German companies would prefer to grow their established production facilities and extensive sales networks in China. With the trade relationship expanding so rapidly and estimates suggesting that more than 2 million German jobs depend on exports to China, the countries’ economies are set to become even more intertwined. German companies Volkswagen and chemical processor BASF, for instance, are significantly expanding their investments in China. Volkswagen, which already has more than 40 plants in China, recently announced that it will invest billions in new local partnerships and production sites. BASF, which has 30, says it will invest US$10.9 billion in a new chemical production complex there. Given all this new activity, making a show of decoupling from China could cause significant repercussions for France and Germany. Ultimately, the costs of decoupling outweigh the benefits for the two governments. While their allies might come to bemoan their inaction, they just won’t forgo such significant opportunities for French and German companies in China. Additionally, decoupling could trigger retaliation, as it did with Australia, with China halting exports to the two countries, increasing tariffs, or reducing market access to French and German goods. All in all, France and Germany are unlikely to shift from their stance. They’d prefer to let their markets flourish and work out the rest later.

Diplomacy
Chinese president Xi Jinping on the phone screen and Volodymyr Zelensky the president of Ukraine

Beijing’s Kyiv outreach is about acquiring a global role for itself

by Harsh V. Pant

It aims to signal its diplomatic ascendance and challenge Washington as the big shaper of outcomes. Late last month, Chinese President Xi Jinping finally made that much hoped-for call to Ukraine’s President Volodymr Zelensky and informed the world that his nation “always stood on the side of peace.” This was the first outreach by Beijing to Ukraine since  the latter’s invasion by Russia last February, and Zelensky was keen on this engagement, especially after Xi’s visit to Moscow in March. Ukraine views China as an important interlocutor that can engage with Russia and seems to have been encouraged by the “long and meaningful” phone call between the two leaders that in its view would “give a powerful impetus to the development of our bilateral relations.” Last week, Ukraine’s finance minister also suggested that Kyiv should use its bilateral relationship with China as leverage to bring an end to Russia’s full-scale invasion, though he refused to consider China as a friend. The Chinese President has been reported as saying that China, “as a responsible majority country,” would “neither watch the fire from the other side, nor add fuel to the fire, let alone take advantage of the crisis to profit.” But there was no suggestion that Beijing would be doing anything meaningful going forward. The call and associated choreography had more to do with positioning China as a global power that is willing to engage in resolving problems, as opposed to the US that is creating more trouble by continuing to support Ukraine and prolonging the war. China has already laid out its cards on the table when it comes to the Ukraine crisis. It had released a 12-point position paper on the political settlement of the Ukraine crisis earlier this February. In an attempt to present itself as a neutral peace broker, Beijing has enunciated a few standard principles, including respect for the sovereignty of all countries, resumption of peace talks, keeping industrial and supply chains stable and opposition to unilateral sanctions  as well as the use of nuclear weapons. Taking this forward, China has decided to send special representatives to Ukraine and hold talks with all parties in an attempt at peace-making. But beyond these principles, China’s credentials are hardly supportive of a larger role as a peace-maker, as it has long refused to view its ties with Ukraine and Russia at the same level. Russia has shown no inclination to step back from its aggression and Ukraine is seemingly preparing to launch a large-scale counter-offensive against Russian forces in a bid to retake territory in the east and south for which it has been preparing for months now. While Moscow has given no indication of backing down, perhaps assuming that it has time on its side and waiting for the Western consensus on backing Ukraine to collapse, Ukrainian forces feel that the weaponry delivered by the West over the past few months is likely to give them the momentum needed to shape battlefield realities in their favour. China is also unlikely to be viewed as an honest broker, given its ties with Russia that are increasingly becoming tighter. And despite repeated statements that the “sovereignty, independence and territorial integrity of all  countries must be effectively upheld,” Beijing has not only refused to acknowledge Russia’s violation of Ukrainian sovereignty, but has continued to privilege its partnership with Moscow. Though Xi’s visit to Moscow in March did not result in any concrete help to Russia, it did signal to the West that  the China-Russia entente can shape the global balance of power in ways that can be deleterious to Western interests. More than anything else, Chinese posturing in the Ukraine conflict is aimed at the West. In its position paper, Beijing talks about the need to abandon a “Cold War mentality” and argues that “the legitimate security interests and concerns of all countries must be taken seriously and addressed properly,” making it clear that it largely agrees with Moscow’s perspective that it was the West that created the conditions for this war with the expansion of the North Atlantic Treaty Organization (Nato). China has also been critical of Western sanctions on Russia, arguing that “relevant countries should stop abusing unilateral sanctions and ‘long-arm jurisdiction’ against other countries, so as to do their share in de-escalating the Ukraine crisis.” Both of these issues are germane for the long-term trajectory of China’s role on the global stage amid deepening tensions with the US. For China, clearly, this crisis is more about itself than it is about Russia. As China comes out of its covid- induced isolation, it would like to have a stable international environment for a sustained economic recovery. But it is also using an opportunity to emerge as a key global interlocutor by venturing into diplomatic arenas it has been shy of in the past, taking advantage of the West’s recent inward orientation. This effort was exemplified by its attempt to bring Iran and Saudi Arabia together in the highly volatile Middle East. China’s attempt at emerging as a global peace-maker is about presenting a diplomatic challenge to the US on the global stage. Beijing may not have much of an impact on the eventual outcome of the Ukraine crisis, but it is signalling that it is no longer shy of showcasing its growing diplomatic heft.