Print ArticleThe talks delayed for 18 months due to EU members in fighting were finally held in Serbian town. EU leadership, keen to assess if Dmitry Medvedev had a serious role in Russia, reportedly found debutant Medvedev ´very open person who really wants to engage´.
Reportedly, Putin stayed back to allow Medvedev shine and ´show the world he is his own man´. The meeting opened on a positive start unlike past year´s meeting hosted by Russia where Putin coldly rejected suggestions he was rolling back democracy.
The meeting has been held to discuss legal framework for New Cooperation Pact between EU and Russia, Unions third biggest trading partner. The scheduled first round of negotiations between two will start from July 4 to July 8 in Brussels.
The first round is likely to cover mostly oil and gas. However, it is opined that Russia will like to discuss foreign policy issues including pan-European defense system instead of NATO expansion in Europe closing on Russian borders by extending its membership to states winning independence in post Soviet Union era, US European missile defense system and issue of Kosovo independence.
EU leadership on the other end will seek guarantees for uninterrupted energy supplies following brief closing of gas supply to Ukraine. EU wants Moscow to promise, not to use energy for (short-term) political advantage. However, history shows that it is premature to seek such a guarantee at this stage because policy making has been influenced in the past by oil, labor market, military and financial strengths. Those expecting to see Human Rights surface the way they should be would be disappointed because when it comes to raising human rights vis-à-vis their own interests EU is known for its hypocritical double standards and world may never see Chechnya surface during the talks with Russia.
However, energy supply is not an open and shut case. If Putin stood for subtle óld style´ Russia, Medvedev stands for ´flexible´ Russia that is ready to engage with rest of the world on pure market terms. Medvedev is the face of new more cordial Russia that is ready to share a continent with EU for peace, prosperity and development based on ´Trust´. Moscow wants EU and rest of the world to take Medvedev as breath of fresh air. The non-confrontational tone of the summit reinforces the message-Medvedev stands for fresh Russia that promises continuity and cooperation.
It makes business sense. Russia as exporter of 25 percent of total EU energy supplies cannot harm its long-term interests by resorting to any immature act(s). The timing of Gazprom chief´s proposal for setting up a European network of service stations for cars fueled by natural gas, as alternative to petrol expected to raise country´s exports to Europe to 41 percent reinforces Moscow´s pledge of long-term commitment with Europe. Natural gas is 1.7 percent cheaper than petrol. Gazprom is also planning to take up a quarter of the world´s liquefied natural gas (LNG) market in coming years. Moscow is investing billions of dollars to expand its energy infrastructure because it is serious in having sustainable business relations with Europe.
On the transnational level, Moscow is working hard to realize strategic South Steam pipeline with help of former Eastern European Satellite states to help Europe face the soaring crude prices. It has also started Nord Stream gas pipeline from Russia to Germany through Baltic Sea by passing Ukraine. Similarly, the completion of Blue Stream pipeline in cooperation with Italian energy giant Eni SpA that pumps Russian gas to Turkey along the bottom of Black Sea show its resolve.
Europe´s failure to complete Nabucco gas pipeline has given Russia an upper hand in Europe´s energy race (Wall Street Journal 22 June). It also shows the challenge of constructing a gas pipeline for West and Moscow´s success in mega-gas pipelines projects shows its political influence and professionalism. A five-nation group with strong US backing supported Nabucco project. The 3,300 km, five billion Euro project aimed to bring gas from Caspian Basin and ME through Turkey to European gas hub near Vienna to help Europe diversify its gas supply and ease dependence on Russian gas.
The politics of pipelines has left Moscow frustrated with EU. Russian leadership wants Europe to speak with ´one voice´ at least over energy issues. It is opined that Moscow is right in its observation because EU member states use energy issue to settle inter-state disputes leaving the other party frustrated. The politics of energy gets complex with cross Atlantic interference. Therefore, in July Moscow would like to see a united Europe for better business with EU.
It is going to be herculean task for EU to be united to do business with Russia due to prevalent geo-political environment and strategic geo-military posturing for securing energy reservoirs necessary for keeping the industrialized economies running in the long run. Therefore, in addition to Brussels all eyes will be on UK, France and Germany as they balance energy needs with trans-Atlantic political loyalty. It leaves Moscow in a commanding position and accordingly it appears that Medvedev realizing country´s strength is using west´s playbook to calm the apprehensions by stressing on transparency, rule of law and democracy.
The GCC by adopting Look East Policy has clearly shown that it is only matter of time that it will establish energy infrastructure with Asia for collective benefit. The establishment of Shanghai Cooperation Organization with projected 12 mbd output reinforces the policy. Europe therefore by expanding its relations with Russia can in return also secure its energy interests as Moscow links Asia with ME.
However, all European states will have to play a positive role in restoring peace in Afghanistan and Iraq to secure their future energy needs, business interests and economy. Reportedly, Euro Zone´s economic Sentiment indicator has dropped to 94.9 percent from 97.6 points from last month with consumer confidence sharply down and the manufacturing sector weakest since May 2005. In last 12 months to April, combined direct and portfolio investment posted net inflows of just eight billion Euros, down sharply from 268 billion Euros for the same period a year earlier (Euro zone economic… Arab News dated June 28).
The revival of trans-Atlantic dependent European economy is only possible if there is peace in Afghanistan and ME. Europe will therefore have to push for withdrawal of occupation forces from Afghanistan, Iraq, push for ending of Palestine issue and improve relations between Iran and US. Washington will have to choose between unending commitment of force or diplomacy and dialogue to protect its global economic and foreign policy interests. China´s diplomacy based Africa approach or Russia romancing Europe to build and sustain its energy empire are cases in point. Reportedly, Moscow is already working on projected plans to linkup up with ME by using diplomacy though GCC´s ´Look East policy´ to further expand its energy influence.
It raised strategic questions of effectiveness of continued occupation of Iraq and Afghanistan. It can be argued that Washington may have succeeded in protecting interests of corporate energy giants but politically it has been left isolated. The four oil giants one sided contract with Iraq allegedly depriving under occupation nation of its legitimate rights to control its national and natural resources for thirty years is a case in point. Same is true for hydro-carbon bill held in Iraqi parliament for last two years or so. It has undermined American image across the globe and American public like rest of the world has ended up paying more and more for gas prices. It explains Democrat´s supporting troop withdrawal or their flip flop on the issue and Bush and McCain supporting continuation of current Iraq and Afghan policies as rest of the world grows weary of use of terrorism as cover up for energy war.
It can be argued that the longer military occupation continues in Iraq and Afghanistan and other African countries the harder it will be for Europe and America to regain the lost markets, economic and foreign affair advantages being claimed by other major powers from rest of the world.
Medvedev, by promising to eradicate corruption to end 100 billion dollar annual loss to national exchequer, protect private property and uphold national interest in foreign policy as part of country´s tradition is sending a very strong political message to general populations within Russia and Europe that Russia under him can be trusted- an era of trust and change has arrived.
Finally, Russia-EU summit is a positive development for both parties. It is hoped that individual European states will look beyond what EU leadership wants and make sure that they work to protect their economic and energy interests for what they are paid instead of getting entangled into the sticky areas that are not affecting Europe including Kosovo, US Missile defense system in Europe and expansion of NATO. In all fairness Europe has no immediate military threat from Asia or rest of the world. It should therefore review its support for military alliances including NATO vis-a-vis economic, energy and trade interests. Europe at the most needs a Pan-European defense shield with minimum resource commitment to free maximum funds for public welfare to sustain its sinking economy and weakening public welfare system. The onus of success of July meeting therefore now rests with EU.
Reportedly, Putin stayed back to allow Medvedev shine and ´show the world he is his own man´. The meeting opened on a positive start unlike past year´s meeting hosted by Russia where Putin coldly rejected suggestions he was rolling back democracy.
The meeting has been held to discuss legal framework for New Cooperation Pact between EU and Russia, Unions third biggest trading partner. The scheduled first round of negotiations between two will start from July 4 to July 8 in Brussels.
The first round is likely to cover mostly oil and gas. However, it is opined that Russia will like to discuss foreign policy issues including pan-European defense system instead of NATO expansion in Europe closing on Russian borders by extending its membership to states winning independence in post Soviet Union era, US European missile defense system and issue of Kosovo independence.
EU leadership on the other end will seek guarantees for uninterrupted energy supplies following brief closing of gas supply to Ukraine. EU wants Moscow to promise, not to use energy for (short-term) political advantage. However, history shows that it is premature to seek such a guarantee at this stage because policy making has been influenced in the past by oil, labor market, military and financial strengths. Those expecting to see Human Rights surface the way they should be would be disappointed because when it comes to raising human rights vis-à-vis their own interests EU is known for its hypocritical double standards and world may never see Chechnya surface during the talks with Russia.
However, energy supply is not an open and shut case. If Putin stood for subtle óld style´ Russia, Medvedev stands for ´flexible´ Russia that is ready to engage with rest of the world on pure market terms. Medvedev is the face of new more cordial Russia that is ready to share a continent with EU for peace, prosperity and development based on ´Trust´. Moscow wants EU and rest of the world to take Medvedev as breath of fresh air. The non-confrontational tone of the summit reinforces the message-Medvedev stands for fresh Russia that promises continuity and cooperation.
It makes business sense. Russia as exporter of 25 percent of total EU energy supplies cannot harm its long-term interests by resorting to any immature act(s). The timing of Gazprom chief´s proposal for setting up a European network of service stations for cars fueled by natural gas, as alternative to petrol expected to raise country´s exports to Europe to 41 percent reinforces Moscow´s pledge of long-term commitment with Europe. Natural gas is 1.7 percent cheaper than petrol. Gazprom is also planning to take up a quarter of the world´s liquefied natural gas (LNG) market in coming years. Moscow is investing billions of dollars to expand its energy infrastructure because it is serious in having sustainable business relations with Europe.
On the transnational level, Moscow is working hard to realize strategic South Steam pipeline with help of former Eastern European Satellite states to help Europe face the soaring crude prices. It has also started Nord Stream gas pipeline from Russia to Germany through Baltic Sea by passing Ukraine. Similarly, the completion of Blue Stream pipeline in cooperation with Italian energy giant Eni SpA that pumps Russian gas to Turkey along the bottom of Black Sea show its resolve.
Europe´s failure to complete Nabucco gas pipeline has given Russia an upper hand in Europe´s energy race (Wall Street Journal 22 June). It also shows the challenge of constructing a gas pipeline for West and Moscow´s success in mega-gas pipelines projects shows its political influence and professionalism. A five-nation group with strong US backing supported Nabucco project. The 3,300 km, five billion Euro project aimed to bring gas from Caspian Basin and ME through Turkey to European gas hub near Vienna to help Europe diversify its gas supply and ease dependence on Russian gas.
The politics of pipelines has left Moscow frustrated with EU. Russian leadership wants Europe to speak with ´one voice´ at least over energy issues. It is opined that Moscow is right in its observation because EU member states use energy issue to settle inter-state disputes leaving the other party frustrated. The politics of energy gets complex with cross Atlantic interference. Therefore, in July Moscow would like to see a united Europe for better business with EU.
It is going to be herculean task for EU to be united to do business with Russia due to prevalent geo-political environment and strategic geo-military posturing for securing energy reservoirs necessary for keeping the industrialized economies running in the long run. Therefore, in addition to Brussels all eyes will be on UK, France and Germany as they balance energy needs with trans-Atlantic political loyalty. It leaves Moscow in a commanding position and accordingly it appears that Medvedev realizing country´s strength is using west´s playbook to calm the apprehensions by stressing on transparency, rule of law and democracy.
The GCC by adopting Look East Policy has clearly shown that it is only matter of time that it will establish energy infrastructure with Asia for collective benefit. The establishment of Shanghai Cooperation Organization with projected 12 mbd output reinforces the policy. Europe therefore by expanding its relations with Russia can in return also secure its energy interests as Moscow links Asia with ME.
However, all European states will have to play a positive role in restoring peace in Afghanistan and Iraq to secure their future energy needs, business interests and economy. Reportedly, Euro Zone´s economic Sentiment indicator has dropped to 94.9 percent from 97.6 points from last month with consumer confidence sharply down and the manufacturing sector weakest since May 2005. In last 12 months to April, combined direct and portfolio investment posted net inflows of just eight billion Euros, down sharply from 268 billion Euros for the same period a year earlier (Euro zone economic… Arab News dated June 28).
The revival of trans-Atlantic dependent European economy is only possible if there is peace in Afghanistan and ME. Europe will therefore have to push for withdrawal of occupation forces from Afghanistan, Iraq, push for ending of Palestine issue and improve relations between Iran and US. Washington will have to choose between unending commitment of force or diplomacy and dialogue to protect its global economic and foreign policy interests. China´s diplomacy based Africa approach or Russia romancing Europe to build and sustain its energy empire are cases in point. Reportedly, Moscow is already working on projected plans to linkup up with ME by using diplomacy though GCC´s ´Look East policy´ to further expand its energy influence.
It raised strategic questions of effectiveness of continued occupation of Iraq and Afghanistan. It can be argued that Washington may have succeeded in protecting interests of corporate energy giants but politically it has been left isolated. The four oil giants one sided contract with Iraq allegedly depriving under occupation nation of its legitimate rights to control its national and natural resources for thirty years is a case in point. Same is true for hydro-carbon bill held in Iraqi parliament for last two years or so. It has undermined American image across the globe and American public like rest of the world has ended up paying more and more for gas prices. It explains Democrat´s supporting troop withdrawal or their flip flop on the issue and Bush and McCain supporting continuation of current Iraq and Afghan policies as rest of the world grows weary of use of terrorism as cover up for energy war.
It can be argued that the longer military occupation continues in Iraq and Afghanistan and other African countries the harder it will be for Europe and America to regain the lost markets, economic and foreign affair advantages being claimed by other major powers from rest of the world.
Medvedev, by promising to eradicate corruption to end 100 billion dollar annual loss to national exchequer, protect private property and uphold national interest in foreign policy as part of country´s tradition is sending a very strong political message to general populations within Russia and Europe that Russia under him can be trusted- an era of trust and change has arrived.
Finally, Russia-EU summit is a positive development for both parties. It is hoped that individual European states will look beyond what EU leadership wants and make sure that they work to protect their economic and energy interests for what they are paid instead of getting entangled into the sticky areas that are not affecting Europe including Kosovo, US Missile defense system in Europe and expansion of NATO. In all fairness Europe has no immediate military threat from Asia or rest of the world. It should therefore review its support for military alliances including NATO vis-a-vis economic, energy and trade interests. Europe at the most needs a Pan-European defense shield with minimum resource commitment to free maximum funds for public welfare to sustain its sinking economy and weakening public welfare system. The onus of success of July meeting therefore now rests with EU.
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