Transatlantic Tensions
“F**k the EU.” This is what Assistant Secretary of State for European and Eurasian Affairs Victoria Nuland (the highest ranking diplomat in European relations) supposedly was overheard saying to the Ukrainian ambassador this February, while she was in a discussion concerning who should be the new head of state in Ukraine (representing another nasty little tendency of the American government). Ever since the resignation of Clinton’s Secretary of State Madeline Albright, transatlantic relations have grown tense. A brief period of solidarity after September 11 was quickly broken by disagreements over the war in Iraq, a wound which has never fully healed. It is not necessary to describe former president G.W. Bush’s attitude towards the EU, and really Europe in general. The Bush administration was a model of all the negative traits of US imperialist foreign policy. With the election of President Obama, who emphasized the need for multilateralism in international politics, many European and EU officials hoped that the process would be reversed and the transatlantic partnership infused with new blood. Such hopes have long since been dashed. Many officials have informally recounted how the president dislikes meeting with the officials in Brussels, having skipped the EU capital during his last four visits to Europe, and the turn towards a Pacific-based foreign policy has left many European leaders feeling that the US simply does not care about Europe anymore. They’re not far off, really. The president has officially stated on a number of occasions the need to shift foreign policy focus to China and the Pacific Rim. In the leadership vacuum left in Europe by US foreign policy, Germany has appeared to emerge as the new agenda-setter, even though this does not go over well in many member-states of the EU. It is doubtful that the transatlantic partnership will ever regain the importance it held during the Cold War era, and this is something that European officials will have to get used to. However, America still needs Europe, just as Europe needs America. The EU bloc is America’s largest trading partner, and consists of its strongest and most dependable strategic allies. The tensions, though they will probably never be resolved in the foreseeable future, need to be addressed by officials on both sides of the Atlantic.
Why America Needs the EU in the Ukrainian Crisis
Let us count the ways. To begin with, was it not a deal proposed by the European Union, rejected by then-president Yanukovych, that started the entire Euromaidan protest movement in the first place? Ukraine sees the EU as a more available and more responsive entity than the United States, and while anti-Americanism runs strong throughout the nation, the EU is much more well-regarded. The pro-Western elites, groups, and peoples of Ukraine see accession to the European Union as the ultimate goal of their country – one which will bring security, stability, and economic prosperity. Further, Ukrainians remember well the efforts put into rebuilding the former Warsaw Pact nations by the European Union officials at the time, where the United States was notably absent. Ambitions to join NATO are much less pronounced, and the US has never offered any substantial trade deals to the nation. In fact, it has hardly taken notice of the country until the escalation of violence in Kiev this January.
But now, one may say, a new government is in Kiev. The trade deal, and then some, has already been committed to by the EU. Now there is Crimea to worry about. And what exactly will the European Union, the same EU that seemed so helpless in the Yugoslavian disaster of the 1990’s, do about it? This is a valid question, yet it can still be answered without changing the premise of this article. However, we must break the responses up into several key points.
First: the military threat. Is it not, one may ask, that Russia is sending massive amounts of troops near the border with eastern Ukraine? And does it not remain the fact that NATO is, essentially, the US army with some scattered and very limited support from a smattering of allies? Thus, is it not the United States, and not the European Union, that will have to face any military threat coming from Russia? This is indeed true (and American officials have for years expressed frustration with Europe’s lack of contribution to the alliance). It is mainly US forces conducting exercises in Bulgaria and the Black Sea and sending air support to Poland and the Baltic States. This show of strength is doubtless important to limit the effect on Putin’s popularity created by his military buildup. But, while the future is unpredictable, it is an extremely unlikely scenario in which the first confrontation between NATO and Russia will occur over the Ukraine. It is also unlikely that Russia will actually invade eastern Ukraine – as I have stated in an earlier article, it is one thing to absorb a territory which has openly expressed its desire to join with the Russian Federation through referendum (whether legal or illegal under international law, it still retains trappings of democracy). It is quite another to militarily invade a portion of Ukraine which has expressed no such overwhelming desire, where many Ukrainians, while favoring close ties to Moscow, retain their national identities, and where even violent protests have seemed to have failed to bring about a change of heart for many eastern Ukrainians.
And what of Transnistria (Trans-Dniester), the breakaway province in Moldova? Two questions: first, is the Russian army really going to violate the sovereign territory of Ukraine to reach that destination? And second, why does the Russian army need to invade this region when nearly 1,000 Russian ‘peacekeepers’ are already stationed there, and have been for some time? This is merely one analyst’s opinion, but I believe that the military threat is being grossly exaggerated, and that Putin’s military buildup is more of a publicity stunt than anything else. And, without a military threat, you do not need NATO and the backing of the United States. NATO will most likely play the same role it has since the end of the Cold War: a symbolic one.
Second, the economic sanctions. The main claim of US officials is that, while the EU is targeting individuals, the US is going after large assets like the Bank Russiya. And that is certainly helpful. But, much like any wealthy American businessman, Russian economic elites are savvy enough to shelter their wealth elsewhere (primarily in Cyprus, a notorious tax haven for Russians, which just so happens to be in the European Union). The EU is targeting individuals who shelter their wealth in European micro-states, who educate their children in Britain, who vacation in Monte Carlo and the French Riviera, and who invest in Eastern Europe. It may be argued that the EU sanctions have a greater possibility of impacting the elites of the Putin administration than the Americans’. At the very least, it cannot be said, as some US officials have, that the EU sanctions are ‘worthless.’
This initial round of sanctions will necessarily need to be followed by further economic sanctions, as Russia is not now nor ever has been swayed by arguments based upon international law. Russia functions under a ‘realist’ vision of politics, where state power, and its constant increase, is the primary measure of success in geopolitics. In producing further sanctions, the role of the European Union will be indispensable.
Consider the facts. In the year 2012, Russia traded 287.5b euro worth of commodities to the EU bloc, compared to 18.8b euro worth to the United States (representing just over 7% of Russia’s trade with the EU). Beyond this, the EU bloc represents the number one market for Russian energy exports, which, as is common knowledge, is the blood in Russia’s veins. Russia prefers to, and in this instance will probably try to, negotiate deals with individual member-states to help get around EU-level sanctions. However, over the years the officials in Brussels have achieved considerable control over the macroeconomic mechanisms of its member states. It sets tariff rates for all commodities imported into or exported from EU member-states. It sets rules and regulations, often quite stringent, on the kinds of commodities, and in what quantities, can be imported into the bloc. It has the power to create (or restrict) official subsidies to corporations, including those founded by foreign direct investment. And, of course, it sets the monetary exchange between the euro and all other internationally traded currencies, including the ruble. Should the officials in Brussels be so inclined, they have the power to enact significant sanctions against Russia that will effectively and directly hit an economy that is already purportedly slipping into recession.
A United Front
The problem with this reasoning is, though, that if the European Union enacts sanctions that are too stringent, it will amount to a Pyrrhic victory. The Eurozone itself is still suffering a severe recession, unemployment remains high, GDP production is slow, and, frankly, any measures that would affect the Eurozone economy too harshly will end disastrously. Hence the cautious course taken by diplomats in Brussels, targeting individuals in Russia’s inner circle rather than the economy from which they derive their wealth. It is here that the United States must re-enter the discussion. Although the US economy has clearly not recovered either, it is certainly stronger than Europe’s. In addition, as previously noted, the United States does not have nearly as close a connection to the Russian economy as the EU. If the US is really serious about economic sanctions that will reverse the trajectory Russia seems to be on, what is needed is a reconsideration of trade negotiations with the EU bloc, negotiations that will be more favorable to the European economies to alleviate some of the effects that decreased trade with Russia will create. If the US is serious about confronting Russia, than it needs to take the EU seriously, and it needs to support and encourage its transatlantic ally in taking difficult and unpopular measures. The transatlantic relationship must come center stage in any discussion about confronting Russia, and not just for photo-ops. If the US and the EU are both serious about the Crimea issue, then both need to take each other seriously, and rely on the longstanding partnership whose sole raison d’être for nearly 50 years was restraining Russian imperialism. Neither can solve this problem alone.