Wednesday, 17 September 2014

Shanghai Cooperation Challenges the West

Published in Field Reports

By Oleg Salimov (09/17/2014 issue of the CACI Analyst)

Tajikistan’s capital Dushanbe hosted the Shanghai Cooperation Organization (SCO) summit for two days on September 11-12. The summit concluded Tajikistan’s position in the organization’s rotating chairmanship and handed the duty over to the Russian Federation. The summit was attended by six member states, China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, and Uzbekistan, and the five observers Afghanistan, India, Iran, Mongolia, and Pakistan. Turkmenistan’s President Gurbanguly Berdimuhammedov attended the summit as a distinguished guest. Economic cooperation and threats to regional security through political instability in Afghanistan, the Middle East, North Africa, and Ukraine were established as the summit’s agenda. The long awaited expansion of the organization by adding India, Pakistan, and possibly Iran as new members became one of the most important announcements of the summit, outlining the SCO’s projects for the upcoming year. 

The expansion plans were revealed on the eve of the summit by Russia’s Foreign Minister Sergey Lavrov in the Russian media outlet Rossiyskaya Gazeta. The article referred to Pakistan, India, and Iran as new prospective members of the SCO. Iran has previously applied twice for SCO membership but the outcomes of Iran joining it are highly ambiguous considering the country’s frictions with Israel and the U.S. over its nuclear program. Russia’s recently intensified conflict with Western countries draws it closer to Iran and raises Iran’s hopes for full membership in the SCO. The question remains, however, whether the SCO will be able to manage the regional rivalry between China, India, and Pakistan if the prospective members are in fact accepted.

Lavrov also stressed the potential of using national currencies in financial operations among SCO’s members. The statement is a continuation of Russia’s political initiatives aimed at relinquishing euros and dollars in its financial operations in the wake of the U.S. and EU economic sanctions imposed on Russia for its role in Ukrainian crisis. Earlier, Russia and China, the two major players of SCO, have declared their intention of national currencies turnover in the recently started natural gas delivery project. It is only logical for Russia to employ the SCO’s chairmanship and natural resources leverage to expand the organization through India, Pakistan, and Iran and to denounce euros and dollars when refocusing from Europe to Asia.

The SCO’s memorandum declared several particular steps towards the promotion of national currencies in SCO’s financial system and, as a result, the alienation of euros and dollars. These include increasing members’ financial and banking cooperation in regional trade and economy, and an intensification of efforts in establishing their own Development Fund and Bank of Development. However, it should be noted that the idea of establishing financial institutions within the SCO, such as a Development Fund, was first proposed in 2011 by Kazakhstan and widely supported by Russia as a response to the global financial crisis. At the same time, China offered its own project in the SCO’s Bank of Development. Both were viewed as security measures for the SCO’s members. Russia’s current growing confrontation of with the West amplifies the likelihood that the proposed SCO financial institutions will be implemented.

The SCO’s own financial institutions are also in agreement with Russia’s intent to develop regional automobile transportation infrastructure which will connect Asia with Russia’s Siberia region. The infrastructure linking Asia and Siberia can serve to accelerate regional trade in addition to the Trans-Siberian railroad. Vladimir Putin announced the intent during the previous SCO summit in Bishkek in September 2013, and Lavrov also highlighted the transportation projects as a major SCO interest in his article on SCO expansion. In the Bishkek summit, the SCO’s Interbanking association was seen as the major prospective investor of the project. In light of the latest proposals, if realized, the SCO’s Bank of Development might become a subsequent proprietor of the Asia-Siberia transportation project. 

The SCO summit in Dushanbe demonstrated a growing division between the developing and developed worlds in Eurasia. The signs of division can be seen in the summit’s official declaration, the statements of the officials, and the SCO’s narrowing scope of priorities. The SCO unifies a group of regimes that pursue various objectives through a common need for political and economic survival. For example, stated in the summit’s declaration, the determination to establish informational security and fend off informational-communication threats improve the survivability of authoritarian regimes like Tajikistan and Uzbekistan. For Russia and Iran, the SCO is an engine for forging political alliances and economic partnerships. The emerging Asian countries are attracted to the SCO by the opportunity of obtaining cheap energy resources. The cumulative efforts of these countries can create a serious counterbalance to the West. 

Wednesday, 17 September 2014

Georgia's PM Garibashvili Visits Armenia

Published in Field Reports

By Erik Davtyan (09/17/2014 issue of the CACI Analyst)

On August 21, Georgia’s Prime Minister Irakli Garibashvili paid a two-day official visit to Armenia. Accepting the official invitation from the Armenian side, Garibashvili had meetings with his counterpart Hovik Abrahamyan, discussing a wide range of issues in the fields of trade relations, infrastructure, education and culture. The Georgian PM was also received by Armenia’s President Serzh Sargsyan. The interlocutors discussed some aspects of Armenian-Georgian relations, as well as the agreements reached by the two states during Sargsyan’s official visit to Georgia on June 18, 2014.

The August meetings were Garibashvili’s first visit to Yerevan as Georgia’s PM, therefore there were some expectations in Armenia from the official visit. After the “Georgian Dream” coalition’s victory in Georgia’s 2012 parliamentary elections, Garibashvili’s visit became the second by a Georgian chief executive after Bidzina Ivanishvili’s visit in 2013.

Armenia is dependent on Georgia for communication with the outer world, and Georgia serves as a transit corridor for export and import. Since Georgia has recalibrated its foreign policy toward promoting trilateral comprehensive cooperation with Turkey and Azerbaijan, many in Armenia pay close attention to developments in Georgia’s foreign affairs and its attitude towards Armenia and Armenian-Georgian relations. In this context, the outcomes of Garibashvili’s visit and the high-level meetings potentially have significant implications for Armenia’s geopolitical situation. 

Another matter of concern for Armenia is the future of bilateral relations with Georgia in light of the different paths of regional integration the two countries have chosen. After signing an Association Agreement with the EU on June 27, Georgia has considerably deepened its integration process with the EU. Meanwhile, Armenia continues its route towards membership in the Russia-led Eurasian Economic Union. The possibility that these divergent integration processes may damage relations between Armenia and Georgia is nevertheless officially downplayed by both sides. During the meeting, Abrahamyan stressed that “Armenia’s membership in the Eurasian Economic Union will not affect the existing economic relations with Georgia”, and added that “Armenia and Georgia could benefit from adhering to different integration units”. Garibashvili reaffirmed his counterpart’s assessment and added that it “might set a good example for the international community.” However, these viewpoints were criticized by some observers. Tatul Hakobyan, an analyst of the Civilitas foundation, stated that the different directions of integration will damage both Armenian-Iranian and Armenian-Georgian relations, “leading Armenia to economic, political and regional isolation”.

Aside from economic issues, the visit was also important in the context of national security and military affairs. A problematic development from Armenia’s perspective is that the defense ministers of Georgia, Turkey, and Azerbaijan held trilateral meetings on August 18 in the Nakhchivan Autonomous Republic shortly before Garibashvili’s official visit to Yerevan. During the visit, the three states decided to develop their defense cooperation, and especially the prospect of increased Georgian-Azerbaijani military cooperation caused concern in Armenia. The trilateral meeting was perceived in some circles as a step toward creating a trilateral alliance against Armenia. However, Johnny Melikyan, an expert on Georgian affairs, downplayed the importance of the Nakhchivan meeting, stating that its agenda did not go beyond that of a series of similar meetings that have periodically been organized between Georgia, Turkey and Azerbaijan since 2011, and does not have any specific importance for Armenian-Georgian relations. According to Melikyan, Georgia is interested in sustaining the balance in the South Caucasus, not in undermining Armenia’s national security.

Other analysts expressed disappointment regarding the lack of output from Garibashvili’s visit. Arnold Stepanyan, leader of the civil initiative Multinational Georgia, stated that “Garibashvili’s visit to Armenia was perceived as an ordinary visit, as another meeting: nothing special was said or written.” Stepanyan thinks the state-level discussion of bilateral relations delivered less than expected and the lack of new agreements mark limited progress in broadening bilateral relations.

According to bestnews.am, “Garibashvili paid ‘a get-to-know-you visit’ to Armenia,” based on which increasing cooperation can evolve between Garibashvili’s and Abrahamyan’s cabinets. Despite the variety in opinions, the visit of the Georgian Prime Minister was generally perceived as a positive step towards an intensification of Armenian-Georgian relations.

Published in Field Reports

By Mina Muradova (09/03/2014 issue of the CACI Analyst)

The Sochi talks on settlement of the Nagorno-Karabakh conflict initiated by President Valdimir Putin has not met the hopes of many Azerbaijanis for a breakthrough in peace negotiations. The meeting reached only its immediate aim – a decrease in deadly skirmishes on the line of contact between Armenian and Azerbaijani troops, which resulted in the deaths of at least 20 soldiers in early August. Many in Baku believe that the clashes were provoked by Moscow to justify its influential position in the region. 

According to Yerevan, the fighting was a result of repeated small-scale Azerbaijani attacks to which Armenia responded. Baku for its part said that Azerbaijani troops forcibly prevented provocations by “Armenian sabotage groups.”

The recent clashes were the gravest since the 1994 ceasefire agreement was signed between the two sides with mediation of the Kremlin.

“The nature of the clashes is totally unprecedented,” said Lawrence Sheets, a Caucasus analyst told Bloomberg. “What has changed is that over the past weeks, we have seen the first instances of the use of high-caliber weapons, not just small arms as had previously often been the case. The verbal threats have also hit an unprecedented peak.”

Over past weeks, images of military vehicles and equipment most likely headed toward the frontline have spread in social networks. Controversial information about serious and deadly clashes gave rise to aggressive rhetoric from both sides, even in the virtual world. On Facebook, a number of Azerbaijani users called on the authorities to show “all our military power to Armenian side.” One Baku resident posted: “Now it is time to demonstrate all our military power. Our military aircraft have to destroy all territories along the line of contact, where the ceasefire was constantly violated in order to demonstrate Armenians how serious we are….”

Before President Ilham Aliyev left for Sochi, around 60 tweets threatening Armenia were posted via his official account. “We will restore our sovereignty. The flag of Azerbaijan will fly in all the occupied territories, including Shusha and Khankandi [in Nagorno-Karabakh],” he wrote. “Just as we have beaten the Armenians on the political and economic fronts, we are able to defeat them on the battlefield”.

Although Azerbaijan seems to the side that is most interested in changing the status-quo in the conflict, many in Baku believe that Armenia, a strategic ally of Russia in the South Caucasus, provoked clashes at the behest of the Kremlin. The theory is that Moscow wanted to use the situation in order to change of Vladimir Putin’s image from an intriguer and aggressor to a peacemaker in the region.

Vafa Guluzade, a former state advisor on foreign policy, said that Putin wanted to show that “Russia still plays a decisive role in the South Caucasus,” and therefore, Putin called for a summit on August 10 with his Azerbaijani and Armenian counterparts in order to show the world his “peaceful, mediating face.”

Guluzade also noted in an interview to Interfax that the Kremlin tried to force Azerbaijan to join the Moscow-led Customs Union, an economic entity that Azerbaijani officials have declined to join. “The meeting with Putin’s mediation was organized just for show, demonstrating that Russia is a key actor in settling the Nagorno-Karabakh problem … Russia tried to compel Azerbaijan, up to the last moment, to join the Customs Union. But Azerbaijan today is a confident and military strong country, so it gave no result,” Guluzade added.

While the presidents were watching a sambo tournament in Sochi following the trilateral meeting, Armenian and Azerbaijani troops continued breaching the ceasefire agreement and taking hostages.

After the summit, President Aliyev said “We discussed the settlement of the Armenian-Azerbaijani conflict in Karabakh which has been going on for too long and needs to be resolved.” The president stressed that the main mission of the international mediators was to settle the conflict, not to freeze it or strengthen the confidence-building process. “I believe that the latest events will stir international mediators into action,” he said. “Azerbaijan wants peace, the neither war nor peace situation can’t last forever.”

Russia’s Foreign Minister Sergei Lavrov told reporters that the talks with Aliyev and Sargsyan, were “useful,” with both presidents reaffirming their commitment to seeking a solution exclusively on the basis of a peaceful approach. “There are only few uncoordinated aspects of the conflict settlement, the overwhelming majority of agreements are already clear.” According to Lavrov, several specific points will be finalized: “As they say, the devil is in the details, and the most complex issues are not solved yet.”

After Sochi, the rhetoric coming from Baku and Yerevan became even louder. Sargsyan stated that his country had missiles with a 300-km-radius, which could turn Azerbaijani towns into “Aghdam” referring to the ruined Azerbaijani city under Armenian control. Aliyev stated on August 30 that “…The position of Azerbaijan in Sochi sounded even stronger, thanks to the courage of the heroic Azerbaijani soldiers and officers and the enemy was dealt a devastating blow that they still can’t get over … Of course, Azerbaijan and the Azerbaijani army is strong, and heroic Azerbaijani soldiers are a constant source of fear for them.”

According to Lawrence Sheets, “With all the current violent upheavals in the world, from Ukraine to Iraq and beyond, unfortunately some are not taking the current major escalation between Azerbaijan and Armenia seriously enough … This is a war, and we are now only a step away from any of the sides deciding to resort to the use of highly destructive and sophisticated missile systems they have acquired, capable of causing massive casualties and destruction.”

The U.S. called on Yerevan and Baku to take steps in order to reduce tensions and respect the ceasefire. U.S. Ambassador to Armenia John Heffern delivered a video message stressing that threats and militant rhetoric will not help resolve any conflict. Heffern repeated that there can be no military solution to the Karabakh conflict and called on the parties to start talks, since revenge and further escalation will make it difficult to achieve peace. “The best way to honor the memory of those killed is to stop clashes right now,” - he noted.

Published in Field Reports

By Eka Janashia (09/03/2014 issue of the CACI Analyst)

On August 27, Abkhazia’s newly elected president Raul Khajimba met with Russian President Vladimir Putin to discuss the possibility of signing a comprehensive cooperation treaty between Moscow and Sokhumi.

The meeting took place three days after the snap presidential elections on August 24, when Khajimba eventually became Abkhazia’s de facto leader after three failed attempts since 2004. His predecessor Alexander Ankvab stepped down on July 1 in response to street protests by Khajimba-led opposition groups in late May, 2014.

Khajimba was able to oust Ankvab and narrowly avoided a runoff by gaining 50.57 percent of the votes. The former head of the state security service Aslan Bzhania was second with 35.91 percent, followed by former defense minister Merab Kishmaria and former interior minister Leonid Dzapshba with 6.4 and 3.4 percent respectively.

Before the elections, Abkhazia’s parliament declared the “Abkhaz passports” held by most ethnic Georgians residing in the region illegal, preventing 16,411 residents of Gali, 5,504 of Tkvarcheli and 872 of Ochamchire districts from participating in the elections (see the 06/18/2014 issue of the CACI Analyst).

Reportedly, one of key reasons for Ankvab’s departure was controversy over the “passportization” issue. Khajimba-led ultra-nationalists blamed Ankvab for deliberately distributing “Abkhaz passports” to ethnic Georgians in efforts to secure their support. Khajimba insisted that districts predominantly populated by ethnic Georgians were a menace to “Abkhaz statehood.” Such rhetoric proved effective both in ousting Ankvab and in preventing a sizeable part of the region’s population from casting ballots.

Whereas the EU, NATO, and the U.S. Department of State condemned breakaway Abkhazia’s presidential elections, Putin was quick to congratulate Khajimba on the election victory and restated his readiness to buttress “friendly” relations with Abkhazia.

Khajimba has been the Kremlin’s favorite candidate for almost a decade. In the mid-1980s he graduated from Minsk’s KGB academy and served at Tkvarcheli’s KBG unit in Abkhazia until 1992. Moscow actively promoted Khajimba during the 2004 presidential elections, where he was nevertheless defeated by Sergey Bagapsh. To eschew an anticipated political crisis, Khajimba took the post of vice president with direct support from the Kremlin. In the 2009 elections, Bagapsh repeated his success while Khajimba scored only 15.4 percent of the votes. Finally, Ankvab gained a landslide victory over Khajimba in the 2011 polls.

Khajimba eventually became Abkhazia’s new leader after the political standoff in May, and almost immediately declared the need for signing a comprehensive cooperation treaty between Moscow and Sokhumi in order to elevate bilateral cooperation to a substantially new level and ensure “clearer” security guarantees for “Abkhazia’s independence.”

According to Khajimba, one aspect of the treaty could be the establishment of joint command over Abkhaz forces and Russian military bases in Abkhazia. “The new document should take into consideration those difficulties which Abkhazia and Russia now face on the international arena, which exist in relationship with Georgia, Europe and the United States,” he said.

This statement reflects several political shifts taking place locally as well as regionally. Locally in Abkhazia, the results of the recent elections should be perceived as a long-expected victory of a Kremlin favorite who, unlike previous leaders, will be more amenable to the Kremlin’s interests. In early May 2014, the Ankvab-led government strongly condemned the proposition for a formal association with Russia aired by the head of the International Association of the Abkhaz-Abazin People, Professor Taras Shamba. Abkhazia’s foreign ministry claimed that such a move would rid Abkhazia of the “signs of an independent state.”

What happened next was the overthrow of Ankvab’s government and the political deactivation of ethnic Georgians, which considerably limits the number of voters who would oppose Abkhazia’s accession to Russia.

These local changes mirror the regional convulsions triggered by Russia’s annexation of Crimea and its military escalation in eastern Ukraine. In this broader spotlight, regime change in Abkhazia might imply a tactical move on Moscow’s part to prepare the ground for a complete absorption of the region or at least to gain additional levers there. In Moscow’s perspective, bringing Khajimba to power in Abkhazia will imply fewer risks of unexpected clashes and weaker objections to the region’s direct integration with Russia. Unlike in South Ossetia, independence is a critical issue for large parts of the Abkhaz population, which pushes the Kremlin to proceed more cautiously. The Kremlin’s success, however, hinges on its ability to maintain at least its status of a regional power in Eurasian geopolitics. 

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The Central Asia-Caucasus Analyst is a biweekly publication of the Central Asia-Caucasus Institute & Silk Road Studies Program, a Joint Transatlantic Research and Policy Center affiliated with the American Foreign Policy Council, Washington DC., and the Institute for Security and Development Policy, Stockholm. For 15 years, the Analyst has brought cutting edge analysis of the region geared toward a practitioner audience.

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