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11. Russia’s shifting foreign and security policy in Northern Europe: The new geopolitical meaning of ‘good neighbourliness’

Author:
Sinikukka Saari and Jyri Lavikainen
Publication Date:
02-2022
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
Since the start of Putin’s third presidential term in 2012, geopolitical competition has also become rooted in the Nordic region, and small states’ room for manoeuvre in security policy has shrunk. In Russia’s view, maintaining ‘good neighbourly relations’ is primarily the responsibility of small states that always need to negotiate the limits of their sovereignty with great powers, such as Russia. From the Nordic point of view, the relations may require walking on eggshells. Prior to 2014, Norway was often mentioned among Russia’s ‘good neighbours’, but now Russia regularly calls off its policy of ‘reassurance and deterrence’. There are increasing signs that, in Russia’s view, a ‘good neighbour’ should refrain from extensive security collaboration and training with NATO and the US. Hence, Finland and Sweden cannot wholly avoid political tension with Russia merely by staying outside of the Alliance.
Topic:
Security, Foreign Policy, Military Strategy, and Strategic Interests
Political Geography:
Russia and Europe

12. Germany’s shifting policy towards Russia: The sudden end of Ostpolitik

Author:
András Rácz
Publication Date:
03-2022
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
A reassessment of Germany’s relations with Russia started after the annexation of Crimea in 2014, and was catalyzed by several offensive actions taken by Moscow, including hacking attacks against the national parliament, disinformation campaigns, as well as an attempt on the life of Russian opposition politician Alexei Navalny. The new German government, formed following the September 2021 Bundestag election, is different from its predecessors in all important respects regarding foreign policymaking towards Russia. The Chancellor, the governing coalition, as well as the composition of the parliament have all changed. These changes have been pushing Germany towards a gradual reconsideration of its traditional Ostpolitik, which perceived mutually beneficial economic cooperation with Moscow as a guarantee of stability and predictability in Europe. Russia’s full-scale war against Ukraine, launched on 24 February, marks the point of no return. The war made Berlin cross several important red lines of German foreign policy, such as agreeing to very heavy sanctions against Russia, halting the Nord Stream 2 pipeline, and delivering weapons to Ukraine. This de facto marks the end of Ostpolitik.
Topic:
Security, Foreign Policy, Defense Policy, and Strategic Interests
Political Geography:
Russia, Europe, and Germany

13. Western financial warfare and Russia’s de-dollarization strategy: How sanctions on Russia might reshape the global financial system

Author:
Maria Shagina
Publication Date:
05-2022
Content Type:
Working Paper
Institution:
Finnish Institute of International Affairs
Abstract:
Since 2014, Russia’s de-dollarization plan has been guided by security and geopolitical considerations. By dumping the US dollar from its foreign currency reserves, Russia diverted from the traditional approach where liquidity and the credibility of the issuer determine the choice of currency. In 2022, Russia has doubled down on its efforts to de-dollarize the economy. What started as de-dollarization in 2014, transformed into full-blown rouble-ization in 2022. Following the dynamic of an emerging multipolar world order, the global financial system is also gravitating towards fragmentation and currency multipolarity. The overuse of sanctions could strengthen revisionist countries’ desire to increasingly conduct their trade in non-dollar currencies in an attempt to avoid US oversight. If current trends continue, the de-dollarization effort could gain ground and undermine the primacy of the US dollar.
Topic:
Monetary Policy, Sanctions, Finance, and Conflict
Political Geography:
Russia, Europe, and Global Focus

14. Russia’s connectivity strategies in Eurasia: Politics over economy

Author:
Kristiina Silvan and Marcin Kaczmarski
Publication Date:
06-2022
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
Russia has been attempting to strengthen connectivity within Eurasia since the early 2000s as a part of its policy to “pivot to the East”. Yet due to limited resources and political will, the tangible effects of its connectivity strategy have remained limited. The Russian Far East would greatly benefit from an improved connectivity infrastructure, given its proximity to Asian markets and the abundance of natural resources in the region. However, the attempts to accelerate regional socio-economic development by strengthening the region’s connectivity have failed to make a difference. In post-Soviet Central Asia, Russia adopted a passive approach to connectivity in the 1990s and 2000s, which meant focusing on maintaining and protecting the links inherited from the Soviet Union. It was only the pressure of external actors – both China and the West – that prompted Moscow to take a more active stance in the region in the 2010s. The launch of China’s Belt and Road Initiative pushed Russia to promote its own grand vision of trans-continental connectivity, the Greater Eurasian Partnership, designed to reaffirm Moscow’s great-power status and its equal standing with China. While it lacks economic and administrative foundations and its implementation is highly implausible, it has fulfilled a symbolic role as Russia’s grand connectivity project for Eurasia.
Topic:
Economics, Infrastructure, Belt and Road Initiative (BRI), Rivalry, and Resource Allocation
Political Geography:
Russia, China, Europe, and Asia

15. Russian policy towards Central Asia 30 years after the collapse of the Soviet Union: Sphere of influence shrinking?

Author:
Kristiina Silvan
Publication Date:
11-2021
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
Russia views Central Asia as its sphere of influence and attempts to keep the five post-Soviet countries, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan, in its geopolitical orbit. Central Asian countries’ dependency on Russia is decreasing, albeit at a different pace in different policy spheres and geographical areas. This variation depends upon factors ranging from Moscow’s priorities, the presence and capability of Russia and other actors, and Central Asian domestic issues. Russia’s policy in Central Asia is rooted in bilateral relations, but from the early 2000s onwards, Moscow has sought to integrate the region’s states into multilateral organizations that it leads, primarily in the spheres of economy and security. Russian influence in the region is greatest in the security sphere and, due to the rise of China, smallest in the economic sector. People-to-people contacts remain strong as a result of the common Soviet past and current migration flows. Central Asian countries share Russia’s authoritarian outlook on politics. Russia remains a powerful player in Central Asia, but Moscow’s lack of a forward-looking strategy and its current great-power posturing threaten its dominance in the future.
Topic:
Foreign Policy, Hegemony, Post-Soviet Space, and Influence
Political Geography:
Russia, Europe, Central Asia, and Asia

16. Russia’s quest for digital competitiveness: The role of private businesses in securing state interests

Author:
Andrey Indukaev
Publication Date:
12-2021
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
The Russian leadership prioritizes digital technology for the country’s security and international standing, but also for its economic and technological success and development. These diverse goals are closely intertwined within the logic of geoeconomic competition. The Russian authorities have increased their involvement in the ICT sector over the years and this has led to the hybridization of business and state logic of action at all levels. While the state has an upper hand in the relationship, this does not exclude the possibility of mutually beneficial partnerships. Moscow-based start-up NtechLab’s close collaboration with the city of Moscow is a case in point. For private businesses, the Russian state’s proximity is a mixed blessing that creates business development opportunities but also major risks. These risks limit Russia’s capacity to make digital technology the driver of modernization of its economy.
Topic:
Business, Private Sector, Strategic Interests, and Digitalization
Political Geography:
Russia and Europe

17. Russia’s domestic politics have become part of the West’s Russia policy: The stakes are rising when Navalny returns to Russia

Author:
Jussi Lassila
Publication Date:
01-2021
Content Type:
Commentary and Analysis
Institution:
Finnish Institute of International Affairs
Abstract:
Among the most signifcant events in Russia in 2020 were the Covid-19 pandemic, reactions to the protests in Belarus, and the poisoning of top opposition politician Aleksey Navalny. Te frst two were clearly events of international signifcance, but so was the medical treatment given to Navalny, frst in Omsk and then in Berlin, after he suffered from symptoms of poisoning dur- ing a flight from Tomsk in Siberia to Moscow in August. In December, a joint study by the investigative journalist groups Bellingcat and The Insider, along with CNN, Der Spiegel and Naval- ny’s FBK Foundation, showed that it was difficult to find more con- clusive evidence of the Kremlin’s involvement in the assassination attempt by a chemical weapons- related poisoning group under the FSB that had been following Na- valny for years. This kind of op- eration would hardly have been possible without the blessing of high-level intelligence. Te ques- tion of whether the FSB leader- ship was proactive in resolving the “Navalny problem” or whether the order came from the Kremlin is irrelevant. Te revealed pattern confrms the long-standing trend of the strengthened role of the se- curity services, especially the FSB, in Russian politics. It is consistent with Putin’s approach to political processes being increasingly seen as issues of national security. Navalny’s self-confidence and style in the revelation videos related to the investigation, receiving ap- proximately 45 million views in less than a month, underscore the extent to which the FSB failed. The target did not die or become paralyzed, but recovered relatively quickly and bounced back, playing for higher and more radical stakes than before. Navalny’s role and reputation as the Kremlin’s most prominent critic has been based on the political pressure on the Kremlin generated by expos- ing elite corruption. While the will- ingness of citizens to see Navalny as an alternative to Putin varies consid- erably – with the majority indifer- ent to politics as a whole – Navalny’s numerous revelations have created an alternative to Russia’s ofcial re- ality, the political potential of which the regime obviously fears.
Topic:
Security, Foreign Policy, Conflict, Regionalism, and Domestic Policy
Political Geography:
Russia and Europe

18. EU Strategic Autonomy in the Shadow of Geopolitical Rivalry: A View from Moscow

Author:
Sergey Utkin
Publication Date:
02-2021
Content Type:
Working Paper
Institution:
Finnish Institute of International Affairs
Abstract:
The EU is determined to maintain the transatlantic bond, while Russia tends to interpret the EU’s strategic autonomy precisely as autonomy from the US. The Western unity effort is significantly strengthened by the poor state of the EU’s relations with Russia. Russia is ready to pay lip service to the idea of a more capable EU, but instead it sees opportunities in areas where bilateral cooperation with member states is possible. The EU-wide consensus is doomed to remain critical vis-à-vis Russia for the foreseeable future. The EU will increasingly focus on gaining autonomy from Russia, primarily in the energy field and in terms of hard security deterrence. The EU-Russia geopolitical tension, centred on the common neighbourhood, is long-term and might cause as yet unseen damage to the relationship if it is not handled carefully.
Topic:
Security, Regional Cooperation, European Union, Conflict, Regionalism, Autonomy, Rivalry, and Strategic Interests
Political Geography:
Russia and Europe

19. Russia Meets Climate Change: The Domestic Politicization of Environmental Issues and External Pressure to Decarbonize

Author:
Jussi Lassila and Marco Siddi
Publication Date:
03-2021
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
Russia’s role in international climate policy is central. Russia is the fourth largest emitter of carbon dioxide and has vast potential for developing renewable energy. However, its fossil fuel-based economy and the legitimacy it creates for the Kremlin make climate action inherently difficult. Thanks to the growing politicization of environmental issues, the relevance of climate change may increase in the Russian public debate. The effects of climate change, such as melting permafrost and the Siberian forest fires, could catalyze this process. Climate-sceptical populism may sometimes feature in the rhetoric of the political elite, but its proliferation in society is unlikely. Most Russians are concerned about climate change, even if less so than Western Europeans. However, Russia’s decision-making on climate policy is highly centralized, with little or no input from civil society actors. The energy transition in Europe can eventually deprive Russia of its main market for fossil fuel exports, but it also creates new prospects for cooperation in green energy development.
Topic:
Civil Society, Climate Change, Environment, Carbon Emissions, and Decarbonization
Political Geography:
Russia and Europe

20. Russia's Redefined View on Strategic Stability: A Security Dilemma in Northern Europe?

Author:
Jyri Lavikainen
Publication Date:
04-2021
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
Te concept of strategic stability has traditionally been associated with a stable nuclear relationship between leading nuclear powers, the US and USSR/Russia. Teir last commonly agreed defnition of the concept in 1990 formed the basis of the START negotiations, defning strategic stability as a nuclear relationship, where neither side has an incentive to attempt a disarming strike. In 2016, Russia and China suggested replacing the concept of strategic stability with ‘global strategic stability’ by arguing that the conventional defnition of strategic stability as a military category concerning only nuclear weapons was outdated.1 Instead, they seek to redefne strategic stability as a concept con- cerning the state of great-power relations, with both political and military categories, the military category being the focus of analysis in this paper.
Topic:
Military Strategy, Conflict, Strategic Stability, Rivalry, and Strategic Interests
Political Geography:
Russia, China, Europe, and Asia