Tag Archive for: Russia

Do fresh Russia sanctions signal new ‘defence of democracy’ geopolitics?

‘[The government of the Russian Federation is] a government that murders its citizens for highlighting corruption and other abuses.’

—  Holding Russia Accountable for Malign Activities Act of 2020, bill introduced to US Senate, 3 February 2021

‘We’re at an inflection point between those who argue that … autocracy is the best way forward … and those who understand that democracy is essential.’

— US President Joe Biden, remarks at Munich Security Conference, 19 February 2021

After weeks of considering how to respond to the poisoning and arrest of Russian opposition leader Alexei Navalny, the EU and US announced coordinated punitive sanctions. They target seven Russian government figures, including the head of the FSB security service, with asset freezes and visa restrictions. And US President Joe Biden has promised more action in retaliation for the placing of bounties on US military personnel and the SolarWinds hack, pending further intelligence assessment.

And after years of having to deliver watered-down Russia assessments to the Trump administration, US agencies will be relieved and pleased to present a full accounting.

Apart from classified sources, assessments will also be gleaned from the extensive findings of the reports by Robert Muller and the Senate Intelligence Committee into Russian interference in the 2016 election, and from vast open-source analysis on Russian malignancy.

This all details a global panorama of the Russian grey zone of cyberattacks and hacks; targeted disinformation campaigns aimed at deflecting action against Russia and boosting far-right forces in the US, UK and EU; the funding and training of extremists; the development and weaponisation of corruption and ‘dark money’ networks; multiple poisonings; microwave attacks against US officials; bounties on US troops in Afghanistan; and the oligarchical adventurism of the mercenary Wagner Group in Syria and Africa.

New assessments are likely to describe the network of perpetrators, not only state agencies like the GRU, FSB and SVR, but also entrepreneurs in President Vladimir Putin’s circle like Evgeny Prigozhin and Oleg Deripaska, and their enablers among Western political, media, financial and legal sectors.

The US Senate has already introduced a bipartisan bill calling for Navalny’s release and invoking the Magnitsky and chemical and biological weapons acts to sanction Putin’s cronies. It hints at possibly freezing the assets of Putin and his family. The bill also urges Germany to withdraw support for the Russian Nordstream 2 gas pipeline, which the US has already sanctioned.

These proposals go much further than anything the EU and US have so far considered. They are also much more in line with the views of Navalny, his supporters and many in the EU and UK who have argued that the West needs to target Putin’s ‘wallets’—those who handle corrupt flows of money and do his bidding offshore—to trigger infighting. Navalny has named oligarchs like billionaire Roman Abramovich, VTB bank boss Andrey Kostin and media mogul Alisher Usmanov as critical enablers of the regime.

Sanctioning oligarchs can be difficult, as the US found when it had to climb down from sanctions against Rusal and Oleg Deripaska, after an outcry from Western firms that needed to continue doing business with one of the world’s biggest aluminium companies.

It’s clear now, however, that after years of Putin’s moves against the US, and Donald Trump’s inaction and gaslighting about Russia hoaxes, many in the US political system, not to mention the public, are ready for a reckoning.

And in this new mood, some old lines of argument running through US policy on Russia seem to have been jettisoned.

One is the idea that Russia is merely a fading power and therefore not worth worrying about. Another is that its ambition only extends to its near abroad and, if left alone, it’s likely to morph into a constructive geopolitical player.

The Biden administration clearly sees Russia as a determined and effective adversary, particularly in the grey zone, working to undermine the world’s democracies, even while taking advantage of the good things that rule of law provides. But how will this translate to a new paradigm for Russia policy? How much of a reckoning is enough?

Biden’s comments at the Munich Security Conference suggest that the US is framing the relationship with Russia and China as one of values: democrats versus autocrats. Biden’s point person on Russia, Andrea Kendall-Taylor, who has spent her career looking at the global authoritarian influence of Russia and China, has no doubt influenced this.

But the president also stressed that geopolitical competition must be balanced with cooperation on the shared existential crises of climate change, nuclear proliferation and the Covid-19 pandemic. He wants to do it all, but that will be far from straightforward.

Russia specialists on both sides of the Atlantic have long derided what they see as the limp ritual of mild sanctions and bridge-building attempts governing Western responses to escalating Russian outrages, from the annexation of Crimea to interference in elections to the attempted assassination of Navalny.

Its defenders have argued that this approach, while unsatisfactory, is the only way to realistically manage tensions, keep channels open, and maintain geopolitical and nuclear stability.

The idea of keeping Russia’s economy stable, a justification for Nordstream 2, is part of this blend of conventional realist and liberal wisdoms that have dominated foreign-policy thinking since the Cold War. It’s said to be about keeping the balance of power, minimising military miscalculations and socialising Russia into international norms and the society of nations through diplomacy and economic inducements. And it’s a line of thinking that is still powerful.

But a diverse range of influential Russia watchers, including Edward Lucas, Molly McKew, Michael McFaul, Brian WhitmoreSarah Kendzior, Anne Applebaum and new Biden administration official Laura Rosenberger, argue that Russia is playing a completely different game.

This group holds varied views on what Russia wants and what Putinism is all about—regime preservation and personal enrichment, destruction of the liberal order, geopolitical jockeying in readiness for a US–China war, access to the developing world’s resources.

But there’s agreement that Putin isn’t interested in grand non-interference bargains and has no investment in the liberal order whatsoever. He knows his long-term version of Russian power depends on liberalism being eroded everywhere.

Further, conventional diplomatic and strategic nostrums can’t cope with a geopolitical environment in which digital technologies have completely changed the nature of rising state competition.

By investing so much in digital political warfare and disinformation, Russia has demonstrated its ability to destabilise Western political systems, making the ideological threat of Putin’s illiberalism dangerously potent.

If this reading is correct, a new, much more unpredictable era of relations is emerging. And the question for the US and EU is, if the familiar rituals of managing geopolitical tensions with Russia are faltering, what might take their place?

The ideas now emerging are around containment, not just in a military sense but in terms of the more difficult task of containing a grey-zone threat running through the hyperconnected, endlessly manipulable sinews of a digitised world.

Deep transatlantic cooperation will be critical, and in recent days Washington and Brussels have made a start. But despite the new understandings of Russia emerging after Trump, the current sanctions package remains firmly within the old paradigm of reactive signalling, rather than creating serious discomfort for the regime.

Old diplomatic cultures die hard. Both the EU and US have good reasons for moving cautiously in a destabilised world. And repairing the trust deficit among NATO allies is a work in progress. The need to defend the fundamental security of democratic systems at the ideological level, ‘away from diplomats and pipelines, to principles and people,’ as EU foreign policy and strategy expert Constanze Steltzenmüller put it recently, will drive policy towards a reinvention of containment for an era of digitised hybrid warfare. As this new paradigm takes shape, Russia, too, might begin to miss the comforts of the old status quo.

The Russia strategy Europe needs

Decades after the Cold War, Russia remains the perfect enemy, with an unmatched ability to agitate Europe’s political class. But the intensity of European debates and emotions regarding Russia masks a growing unity that should underpin a new approach towards President Vladimir Putin’s regime.

In the mid-2000s, Europeans were deeply divided regarding relations with Russia. Germany, led by then-chancellor Gerhard Schröder, wanted to engage with it, while Central and Eastern Europeans sought containment. On the surface, today’s debates about Nord Stream 2, a controversial pipeline that will deliver Russian gas directly to Germany, and the Kremlin’s persecution of Russian opposition leader Alexei Navalny appear to be reinforcing that old divide. But the reality is quite different.

Europe no longer has any illusions that Russia is on a trajectory towards liberal democracy that could be accelerated through engagement. Also out is the idea that states in the Kremlin’s firing line are in trouble only because of their own provocative behaviour.

Europeans are now mostly united on the need to deter Russia from further foreign adventurism. They have maintained three tough sanctions programs without interruption following Russia’s 2014 invasion of Ukraine and annexation of Crimea. Many European Union member states have also been increasing their military spending and have agreed to NATO measures to push back against Russian aggression.

Notwithstanding disagreements over Nord Stream 2, Europe is also more united on energy policy. In the mid-2000s, EU member states were isolated energy islands that had to deal with the Russian bear on their own. Today, they are part of an integrated European energy market that can ensure gas supplies to countries—including Ukraine, via reverse-flow pipes from Western Europe—that the Kremlin cuts off. This significantly reduces Russia’s leverage over Eastern European countries.

For more than a decade, the EU and the United States have alternated between phases of engagement and confrontation with Russia. The recent visit to Moscow by Josep Borrell, the EU’s foreign affairs and security policy tsar, was just the latest in a long list of failed attempts at resetting relations and seeking deeper cooperation with Russia, and leaves no doubt about the Kremlin’s lack of appetite for such efforts. But a possible steep escalation of EU sanctions in response to the Kremlin’s treatment of Navalny risks giving Putin the external enemy he needs to deflect attention from his internal problems.

Putin has been in power for too long and is losing his grip on Russian society. As a result, Russia is entering a period of decline and political decay. The country’s population is ageing, while the real income of its middle class is falling. Putin has failed to diversify the economy and global demand for hydrocarbons is set to fall over the next decade.

In Navalny, Putin has his first genuinely threatening political opponent. Navalny is younger, better-looking and braver than Putin. He is not a liberal or an internationalist and has built a communications infrastructure that the Kremlin is struggling to control.

But it is more the weakness of Putin’s system that makes Navalny dangerous. Navalny is not yet competitive with Putin in terms of popular support and probably never will be—though he is surely the most visible dissident for now.

Meanwhile, some European leaders are calling for greater EU activism towards Russia. ‘Engagers’ such as French President Emmanuel Macron have sought to restart dialogue with the Kremlin, while ‘containers’ like Lithuanian President Gitanas Nausėda favour tougher sanctions. But, again, this debate conceals the extent of convergence within the EU on Russia.

Whereas China is becoming more powerful and globally engaged, the opposite is true of Russia. The EU should thus be in no hurry either to engage with Putin’s regime or to force a diplomatic crisis. Instead, it should deprive Putin of the one thing he craves: political attention. So, rather than vacillating between resets and crackdowns, the EU should pursue an alternative approach. Call it ‘principled indifference’ or ‘tough engagement’.

For starters, Europe must be clear about its interests while strengthening the EU’s security. By increasing their military, counterintelligence, cyber and energy capabilities, EU member states can improve the union’s standing in Russia. Furthermore, the EU and the US should agree on a joint approach towards Russia—putting Nord Stream 2 on hold in the meantime—so that Putin is less tempted to pit one against the other.

A second dimension of such an approach should be to constrain Russia’s foreign policy. True, Western sanctions and its own internal problems mean that Russia currently has less money and attention to spare for Belarus, Moldova, Ukraine or Armenia. But the EU should nonetheless respond forcefully to any Kremlin provocations and aggression. In addition, member states should start investing in military and security partnerships with countries like Ukraine, Moldova and Georgia, and decouple such initiatives from the issue of NATO enlargement. The EU could also engage Turkey in a dialogue on Russia and Black Sea security issues.

Improving transatlantic coordination on Russia will be key. The EU’s unilateral outreach to the Kremlin undermines its standing in both Moscow and Washington, and hasn’t paid off.

None of the above means that the EU should avoid dialogue with Russia. But this is best reserved for multilateral forums such as the Organization for Security and Cooperation in Europe or the Arctic Council. Discussions with Russia—whether on climate change, vaccines or visas—should be technocratic, without the diplomatic fanfare or emotion that have characterised recent attempted openings.

Putin does not have time on his side. If the EU responds firmly and unemotionally to the Russian president’s aggression, it should be able to contain his malign influence without aiding his attempts to, say, label Navalny as a foreign agent. Paradoxically, the best way for European leaders to nurture an appetite for constructive engagement in the Kremlin is to seem less desperate for it. Let Putin come to them.

Australia must do more to prepare for a SolarWinds-style supply-chain attack

The Australian government’s 2020 cyber security strategy is overwhelmingly focused on increasing the cybersecurity efforts of the defence organisation and law enforcement agencies. The mounting crisis in the United States from the hacking of software company SolarWinds indicates that this is not enough.

On 12 December, cybersecurity firm FireEye announced it had detected an alleged Russian cyberattack that had compromised the monitoring and management software on SolarWinds’ commonly used Orion network to get access to victim organisations—potentially 18,000 of them. The US National Institutes of Health and the departments of Treasury, Commerce, Homeland Security and State are reported to be among the victims.

This looks to be an extremely successful campaign, but haven’t we seen this all before?

Operation Cloud Hopper was a years-long Chinese Ministry of State Security campaign that compromised managed service providers, or MSPs, to gain access to their clients. MSPs provide remote IT services to their clients and generally have close to total control of client IT systems, so hacking into a single MSP can provide the master keys to many victim companies. Cloud Hopper affected more than a dozen MSPs and there were possibly hundreds of victim companies.

The response of Western governments was a coordinated denouncement of the activity by the Five Eyes partners (Australia, Canada, New Zealand, the UK and the US), along with Germany, Japan and other allies. The US Department of Justice issued indictments for two of the hackers, and more recently, the EU imposed sanctions.

The relative strength of the response to Cloud Hopper, the most robust combined diplomatic effort in reaction to a cyberattack to date, didn’t deter the SolarWinds perpetrators.

What other approaches should we be taking? The strategies espoused by the US Cyber Command could be a good place to look.

USCYBERCOM is responsible for defensive and offensive cyber operations. Its vision document states that it wants to maintain superiority in cyberspace and introduces the concepts of ‘persistent engagement’ and ‘defending forward’. The command aims to disrupt and deter adversaries by engaging and contesting them wherever they are on the internet. During the 2018 US midterm elections, for example, USCYBERCOM booted a Russian troll factory off the internet, and in the lead-up to the 2020 election it worked with overseas partners in ‘hunt-forward operations’ where it aimed to ‘take down the archer rather than dodge the arrows’.

Does the success of the SolarWinds supply-chain hack despite the efforts of USCYBERCOM invalidate the defend-forward and persistent-engagement model?

No.

The strategies imply, at least to some degree, the use of offensive cyber operations for pre-emptive defence (offensive cyber operations are those that disrupt, degrade or destroy). And offensive cyber operations are effective—during the Covid-19 pandemic they have been used by both Australia and the UK to disrupt disinformation and criminal operations, and in October USCYBERCOM disrupted the Trickbot botnet.

The acknowledgement of these types of operations by governments indicates they are increasingly comfortable with justifying them, both internally and publicly, as worthwhile and effective. In addition, ransomware (the criminal version of offensive cyber operations) is so effective that it’s threatening to undermine the cyber insurance market.

But although disruptive cyber operations are effective and the public portrayal of organisations like USCYBERCOM and the US National Security Agency makes them appear omniscient, the reality is that these organisations have limited resources and competing requirements and have to strictly prioritise their efforts. No doubt the highest priority of US intelligence agencies in the past nine months was ensuring the integrity of the 2020 election.

In other words, the approach is effective, but even well-resourced intelligence agencies can’t know everything.

The SolarWinds campaign has been described as particularly stealthy, and the malware the attackers used lay dormant for weeks prior to activating itself. This kind of strict operational security comes with both benefits and costs.

On the one hand, tight operational security, or OPSEC, allows operations to continue undetected, and therefore produce an ongoing stream of intelligence. And the Russian state absolutely has an enduring interest in what is occurring in the US government. If it could, Moscow would like to retain access to the US State Department forever.

On the other hand, strict OPSEC greatly slows the speed of intelligence collection, as the intelligence benefits of each action have to be weighed against the risk of discovery. Good OPSEC tends to increase the duration of an intelligence operation (because you don’t get detected), but it can paradoxically limit the scale and scope of the data collected (at least in the short term, assuming somewhat competent defenders).

Importantly, the approach used in the SolarWinds campaign—strict OPSEC—is consistent with effective use of the strategies of persistent engagement and defending forward. To be clear, it is also consistent with the hackers simply trying to avoid being detected. But, on its own, the SolarWinds campaign is not a repudiation of persistent engagement.

But if deterrence via diplomacy, indictments and sanctions has failed, and defending forward is at best an incomplete solution, what other avenues should we pursue?

First, we should recognise that forcing an adversary to make its operations more stealthy is a form of success. Operations without any consideration for OPSEC can rapidly gather huge amounts of data—because cyber operations can be either faster or quieter, not both at the same time.

Second, we need to put far greater emphasis on raising security across the entire economy. The Australian government has rightly focused on protecting a relatively broad definition of critical infrastructure, but it needs to do much more to encourage the rest of Australia’s businesses to increase their cybersecurity.

When critical infrastructure is a hard target, criminals and states will find other, easier ways to attack us that achieve similar effects. The government and law enforcement cannot possibly conceive of, discover and combat every single threat. We need to empower and encourage businesses and the community to protect themselves.

One positive development would be providing regulators with real teeth. The Australian Prudential Regulation Authority has indicated it will be taking a far more robust approach after it found that too many boards either don’t understand their true cyber risk or fail to tackle that risk as urgently as they should.

But APRA deals with just a small, albeit important, sector in the Australian economy. Other bodies, such as the Office of the Australian Information Commissioner, the Australian Securities and Investments Commission, and even the Australian Competition and Consumer Commission, should be funded to prosecute cases in which poor cybersecurity practices are identified.

Cybersecurity programs focused on the defence and law enforcement sectors, by themselves, will not protect us from attacks like the one on SolarWinds. We need to do much more to encourage action across the entire economy.

Lukashenko the impotent

Things are not going Belarusian President Alexander Lukashenko’s way. Since the fraudulent presidential election on 9 August, the security services have been trying to carry out Lukashenko’s order to end the peaceful protests against his regime. In recent days, riot police (OMON) have returned to the streets and resumed arresting protesters, but most detainees are now being fined rather than beaten. The authorities have also hounded journalists, revoking accreditations and deporting those without the proper papers.

To create the impression that the regime has regained control of the country’s public spaces, the authorities last week rushed to disperse each new demonstration in Independence Square. But they were met by masses of Belarusian women. On 29 August, some 10,000 people turned out, leading the OMON to scramble for control, barking orders over loudspeakers and issuing violent threats.

In an attempt to round up the demonstrators, the police barricaded the city’s main squares, stopping traffic. But the women were not intimidated. They marched straight down Independence Avenue to Yakub Kolas Square, where they spread from the sidewalks into the street, surrounding the police vehicles there.

The OMON troops dared not respond, lest they be seen—or caught on camera—beating women. The barricade of police standing arm in arm looked pitiful as the women marched through and around them, chanting, ‘We are the authorities here!’ They were sending a message to both sides: the regime should know that the opposition is undaunted, and the rest of the opposition should know that the demonstrations will succeed if everyone goes out into the streets.

This latest demonstration had an immediate effect, dispelling protesters’ fear of police violence and exposing the authorities’ ineffectiveness. It has shown that the streets once again belong to the opposition. The city grew loud again, with protest anthems like Kino’s ‘I want changes’ blaring far and wide. Cars honked in solidarity with the demonstrators, and white, red and white flags were everywhere.

The next day, 30 August, tens of thousands of people turned out. This time, the authorities mobilised entire convoys of police vans and trucks filled with OMON personnel, barbed wire and water cannon. They barricaded the two primary rallying points: Independence Square (home to the National Assembly) and the area surrounding the Minsk Hero City Obelisk.

When the demonstrators appeared on Independence Avenue, they were blocked almost immediately. The street was lined on both sides with police vans and officials armed with shields and clubs. Local access streets had been closed, and a large crowd of demonstrators was detained for about an hour; some were arrested.

Still, rather than brazenly beating and torturing protesters, the authorities are now trying to present themselves as representatives of ‘law and order’ who are merely ‘cleaning up’ the streets. But, like their previous strategies, this one has merely galvanised the opposition.

The tens of thousands of demonstrators on 30 August quickly moved towards the Obelisk and marched straight on towards Lukashenko’s presidential palace, where they were met by police vehicles and officers with shields. Once again, the number of protesters was simply too large for the authorities to mount an effective response. Unafraid, the demonstrators walked right up to the police officers, who remained behind their shields.

It was at this point that Maria Kolesnikova appeared. The last of the three women opposition leaders who has remained in Belarus (the others have gone into temporary exile for safety), she requested entry to the palace so that she could begin negotiations with Lukashenko on his peaceful handover of power. This was an important development for the opposition. So far, the authorities have succeeded in keeping the main opposition leaders out of the public sphere, either by driving them into hiding or exile, or by dragging them through Kafkaesque court proceedings.

Of course, Lukashenko is not the kind of politician who will sit down with his opponents and negotiate a compromise, let alone a transfer of power. So, when he made his own public appearance, he was again carrying a Kalashnikov. But the image of a paunchy dictator playing soldier hardly inspires fear and awe; on the contrary, Lukashenko’s risible machismo has only made him a target of open ridicule.

In addition to staging these performances, Lukashenko has also had at least five telephone conversations with Russian President Vladimir Putin in recent weeks. Based on the Kremlin’s statements following these calls, the message has been the same every time: yes, Russia is ready to help, but not yet. When interpreting Putin’s behaviour, one must remember that his main audience is the Russian public, not Belarus. With his popularity plumbing new depths, Putin is concerned about his own domestic position, not Lukashenko’s.

That Lukashenko’s grip on power is increasingly tenuous is probably very clear to the Kremlin leader. Despite barking orders and threatening renewed state violence, Lukashenko’s security services have not managed to clear the streets. There are no signs that the demonstrations will end anytime soon.

In fact, if Lukashenko doesn’t come up with something new, the protests may spread even wider, because people have realised that the authorities are impotent. More important, the security services must see this, too. Lukashenko’s pathetic performances with his Kalashnikov have made a mockery of their efforts to control the streets. A confident ruler would have no need for such macho posturing; nor would he have to keep calling Putin, who evidently has little interest—as of now—in doing anything more than answering the phone.

The other Putin on Europe’s doorstep

Is Turkey the new Russia? That question is increasingly being asked in European capitals as Turkish President Recep Tayyip Erdogan adopts a more aggressive foreign policy. In addition to using migration to threaten and finagle the European Union, Erdogan has also been deploying military power to expand Turkey’s sphere of influence across the wider region.

Since the end of the Cold War, Europeans have viewed regional security through a unipolar Western lens. While NATO guaranteed military security, the EU—with its 80,000-page rulebook for everything from LGBTQ rights to lawnmower sound levels—provided legal order. Back in the 1990s, it was widely assumed that the two big non-Western regional players, Russia and Turkey, would gradually be accommodated to this arrangement.

But over the past 15 years, the dream of European unipolarity has given way to a multipolar reality. Both Russia and Turkey have had a long, tortured love–hate relationship with Europe, and both have grown more assertive under national leaders who share a disdain for EU norms and values.

The breakdown of the EU–Russia relationship is well documented; the Turkish story less so. The Iraq War in 2003 complicated Turkey’s relationship with NATO, and its relationship with the EU took a turn for the worse in 2007, when France blocked a key part of its EU accession negotiations. Turkey has since been forging its own path in Syria, the Balkans and Libya, as well as pursuing new ties with Russia and China.

Of course, the Turkey–Russia relationship is no less complicated, not least because Erdogan and Russian President Vladimir Putin backed different sides in Syria’s civil war. The low point came when Turkey shot down a Russian military plane in 2015. In response, Putin imposed sanctions, which sowed chaos in the Turkish economy and prompted an uncharacteristic apology from Erdogan.

Despite being a NATO ally, Turkey has since decided to purchase a Russian-made S-400 missile-defence system over the objections of the United States. And while tensions over the Syria conflict remain, Erdogan clearly admires how Russia has re-established itself—at relatively little cost—as an important player in the Middle East and North Africa.

After Putin became mired in an unwinnable war in eastern Ukraine, his largely successful campaign in Syria seemed to restore some of his domestic authority. The West had spent five years insisting that there was no military solution to the conflict and that Syrian President Bashar al-Assad had to go. But while UN-sponsored talks in Geneva went nowhere, Russia-sponsored talks in Astana seemed to make some headway. By including Turkey and Iran while excluding Western powers, the Kremlin created the impression that Russia had risen from the ashes, a born-again superpower.

Facing growing opposition at home, Erdogan has adopted the Putin playbook. With the West unwilling to intervene militarily (again) in Libya, Erdogan saw an opportunity to strut Turkey’s stuff. Following Russia’s approach in Syria, he secured a formal invitation from the Libyan government to intervene. In one fell swoop late last year, he not only boosted Turkey’s image as a regional power, but also clinched a maritime border deal with Libya, thereby disrupting a plan by Greece, Cyprus, Egypt and Israel to develop underwater oil and gas fields in the vicinity.

Since then, the EU- and UN-led ‘Berlin’ peace process has sought to end the war in Libya, but Turkey’s military intervention has fundamentally changed the balance of power on the ground. Once again, Russia and Turkey will determine the future of a country that is essential to European interests, only this time it’s Turkey that is in charge.

Erdogan also seems to have been inspired by the Kremlin’s divide-and-conquer strategy in Europe, where it often squeezes those EU member states that are most reliant on Russian hydrocarbons or markets. Just as Putin has long weaponised the supply of energy, Erdogan has tried to weaponise the flow of migrants and refugees fleeing conflicts in the Middle East. When the EU announced a new naval mission to block the flow of weapons into Libya, Turkey dangled the migrant threat in front of Malta, which then signalled that it would veto the mission’s funding.

For years, Europeans told themselves that Russia was a kind of prodigal son and that the European unipolar order remained sound. Yet that made Europe an easy target for the Kremlin’s divide-and-conquer strategy. Only relatively recently did the bloc devise new policies and a robust sanctions regime to deter Russian aggression. And even now—despite the best efforts of German Chancellor Angela Merkel and French President Emmanuel Macron—the EU still has not created effective channels of communication with Russia for addressing shared problems.

Turkey is not yet a new Russia, but it could become one if the situation is mishandled. For now, most Europeans still regard Turkey as a complicated partner rather than as a ‘systemic rival’. But Europeans should heed the hard-won lessons of dealing with Russia over the past 15 years. The EU–Turkey relationship needs a new, mutually agreed set of principles, as well as clear red lines to deter further destabilisation in the region.

To that end, Europeans should make clear that the EU accession process can be either rolled back or pushed forward, and that a more transactional relationship will involve the use of both carrots and sticks. The challenge will be to ensure that there’s still room for political engagement on issues of shared security in a region influenced not just by Europe and Turkey, but also by Russia, the US and a rising China.

There’s no (new) China–Russia alliance

Many narratives on geopolitics in the age of Covid-19 include an assumption that the pandemic is pushing Beijing and Moscow closer together as allies. The two are old hands at orchestrated disinformation and misinformation campaigns, the argument goes, and the pandemic has provided a vehicle for them. Both reject US hegemony and believe the international order should reflect a multipolar reality.

There’s also the fact that the Russian Far East, with its sparse and declining population, borders a burgeoning China. The two countries have a neat energy-security dynamic, with the world’s largest gas reserves located next to the world’s largest gas consumer.

Both Russia and China are on Washington’s blacklist for challenging the liberal, rules-based order and intensifying great-power competition.

Yet, beneath these commonalities are calcified divisions that will ensure no strong alliance materialises.

China and Russia have built a working relationship based on realpolitik and a convergence of interests. They will continue along that path—until their interests no longer align. That point may be closer than many realise, and the pandemic might actually accelerate divisions between Moscow and Beijing.

Moscow and Beijing still don’t describe their relationship as an alliance. Chinese Foreign Minister Wang Yi’s has classified their ties as ‘bilateral strategic coordination’. Moscow studiously avoids using the term ‘ally’ to frame its engagement with Beijing, instead calling the relationship a ‘comprehensive strategic partnership of coordination’.

What does a comprehensive strategic partnership of coordination look like? Russia and China have found an avenue to work together to craft a mutually acceptable global order and international arena for realising their respective national goals.

They plan to coordinate on the heavy lifting to create this environment through the Shanghai Cooperation Organisation and the BRICS bloc of Brazil, Russia, India, China and South Africa, and via their veto votes on the United Nations Security Council. Moscow’s support of Beijing’s policy on Hong Kong is not a result of allegiance, but rather an indicator of mutual interest in ensuring that matters of domestic concern remain free from international involvement.

Beijing’s refusal to back the Kremlin on Crimea and Ukraine, however, is evidence of tension in the China–Russia partnership.

Moscow and Beijing may have clear overlapping interests, but there’s clear tension between their values. Even when their values did align through communism during the Cold War, the two failed to forge a lasting alliance and friction resulted in the Sino-Soviet split.

History provides all we need to know about the characteristics of Russia–China ties and it’s difficult to foresee a scenario in which they can move beyond their current arrangement. Their relationship is mired by hangovers of conflict, mistrust and suspicion, and has been since at least the time of the ‘unequal treaties’ in the 19th century.

Renewed Sino-Russian ties are not a consequence of Covid-19. Their coordinated strategic partnership is often boiled down to an overstatement based on bilateral energy deals. This is particularly true of discussions of the Power of Siberia pipeline, which delivers 38 billion cubic metres of Russian gas annually to China. The deal took more than a decade to seal due to price disagreements, investment gaps and a stalemate over the pipeline’s location. Beijing won out: the pipeline connects directly to China, avoiding Moscow’s preferred route, which would have required negotiations with Mongolia.

In March, Russian gas giant Gazprom announced plans for Power of Siberia 2. This second route in the Russian Far East is tipped to supply up to 50 billion cubic metres a year to China via Moscow’s preferred western route through Mongolia. This route better positions Moscow to pivot between its European and Asian gas customers.

Power of Siberia gas networks

Source: Gazprom.

Moscow’s plans to renew its engagement with Beijing have been evident since at least 2010 and were outlined in Foreign Minister Sergei Lavrov’s 2014 ‘pivot to Asia’ strategy.

Russia’s impetus for developing the Chinese market was hastened by events surrounding Moscow’s 2014 annexation of the Crimean Peninsula from Ukraine. The resulting Western sanctions on its energy and financial sectors drove Russia further into China’s embrace.

For Beijing, providing capital injections to take the edge off the sanctions was a shrewd act exploiting Russian vulnerability. This is not lost on the Kremlin and further feeds the notion that Beijing is merely a partner of opportunity. Chinese capital helped Moscow deal with its cashflow issues and afforded Beijing coveted avenues to inject itself into Russia’s massive Arctic natural gas projects.

We know the endgames for both Beijing and Moscow as they are directly articulated in their strategic documents and generally are pragmatically followed. Neither wants to be the junior partner, which means we might see them again on course for a split.

Moscow is not going all-in with Beijing. It is pushing to develop a ‘privileged’ strategic partnership with India and is continuing its efforts to engage and arm other Asian partners to diversify its relationships and offset its ‘comprehensive strategic partnership of coordination’ with China.

It’s a worry that some Western scholars, analysts and policymakers have failed to fully grasp the intensely deep-seated suspicions that underlie Moscow’s view of Beijing. Covid-19 has been injected into the international system, throwing up new challenges and sharpening existing ones, and it’s simplistic to argue that the pandemic has driven Russia and China into an alliance against the US.

Russian and Chinese interests overlap in some places and we can expect the two countries to continue to coordinate strategically on areas of mutual interest. To borrow the wisdom of Mean Girls matriarch Regina George: stop trying to make the Sino-Russian alliance happen; it’s not going to happen. A Sino-Russian comprehensive strategic partnership of coordination, on the other hand …

Coronavirus is tilting the China–Russia relationship in Beijing’s favour

While there’s still some debate about whether the world is entering a new era of ‘Pax Sinica’ in the aftermath of the Covid-19 pandemic, it does appear that we’re witnessing the emergence of a more aggressive and assertive China that is intent on exploiting the geopolitical and economic upheaval resulting from Covid-19 to protect its perceived interests and advance its agenda.

An emboldened China will particularly pose a number of critical security challenges for Russia over the next decade, and decision-makers in the Kremlin may find themselves asking whether the long-term costs associated with its partnership with China outweigh identified benefits.

As noted elsewhere, while Moscow clearly stands to benefit from its relationship with Beijing, it ‘must take care to preserve its full sovereignty and independence’. The problem for the Kremlin in a post-pandemic world is that it’s not certain that it has the means to do so.

Even before the Covid-19 crisis, Moscow’s agreement to the 2019 comprehensive strategic partnership with Beijing meant that it was already on track to join a Sino-centric power bloc, albeit as a junior partner. But the pandemic has exacerbated the asymmetrical nature of this partnership by making Moscow potentially dependent on Chinese investment for infrastructure development and on Chinese markets for natural resources.

As with most countries experiencing Covid-19 outbreaks, Russia’s economy has been devastated by shutdowns caused by the pandemic. That economic pain has been further exacerbated by the associated collapse in the price of oil.

But the pandemic’s ramifications for the Kremlin and Russian President Vladimir Putin may be even more consequential—the economic and social impacts have exposed the limits of the Russian state and potentially widened cracks in the foundations of Putin’s power. Putin has also gone missing in action during the height of the crisis, undermining his personal approval rating.

It is in this context that the Kremlin and Russian elites are pinning ‘their hopes on the proposition that China will roll out massive measures to support [Russia’s] tumbling economy and prevent growing unemployment from causing social unrest and will continue government-driven spending on construction and infrastructure, including accelerating [the] rollout of 5G networks, giant data centres, and more’.

In doing so, not only will the Kremlin be straying further into the realm of potential debt dependency on Beijing, but it will also inevitably be negotiating with Beijing on the rules for investment from a position of weakness. As a consequence, Moscow may ultimately end up paying a high price—including its intellectual property, advanced military capabilities and ultimate control over its natural resources—in order to obtain much-needed Chinese investment.

The problem for Moscow is that Chinese investment will come on China’s terms and Beijing will likely have a Plan B in its investment strategy that mitigates the risks associated with investing in Russia’s corrupt and volatile economy.

Beijing’s investment decisions will also likely be based on three objectives—gaining commercial dominance in Russian markets; gaining access to Russian technology, critical technical research and intellectual property; and gaining access to Russia’s vast natural resources—and it will use any means to achieve them.

Prior to the pandemic, Moscow was already potentially exposed to Chinese industrial espionage as a result of a ‘high-tech partnership’ with Beijing that covered cooperation and investment in telecommunications, artificial intelligence, robotics, biotechnology, new media and the digital economy.

Moscow had also provided Beijing with a critical foothold in Russia’s telecommunications infrastructure, including through the establishment of a China Telecom office in Vladivostok dedicated to providing telecommunications infrastructure for private, commercial and government customers across the Russian Far East. Beijing will look to capitalise on this inroad post-pandemic and is also reinvigorating its planned expansion of 5G infrastructure along the Digital Silk Road, which will straddle Russia, Central Asia and much of Europe.

Beijing is also well positioned to exploit the Kremlin’s desire to use the pandemic as justification to roll out pervasive Chinese Communist Party–style surveillance infrastructure across Russia. Ironically, this infrastructure will depend upon Chinese hardware, artificial intelligence and facial recognition technologies, providing further opportunities for Beijing to gain covert access to Russian critical national infrastructure.

In exposing itself to these risks, Moscow appears to have learned nothing from the experiences of the West in dealing with industrial-scale theft of intellectual property and sensitive information by China. The Kremlin also appears to have ignored warnings from Russian officials on the risks in reliance on Chinese technologies and the perils of granting Chinese telecommunications companies privileged access at the heart of Russia’s developing 5G telecommunications infrastructure.

In the short term, an increase in Chinese investment, telecommunications technology and markets for Russian natural resources will clearly provide significant economic benefits during the post-pandemic downturn. But Russia’s decision-makers should acknowledge that the current entente with China may not prove sustainable and they should be considering what will happen if their country’s strategic interests diverge from China’s.

The Russian–Chinese partnership is still best categorised as an ‘axis of convenience’ founded on mutual antipathy towards the US and a desire to counter US hegemony. But the key problem for Moscow is that the partnership is an increasingly asymmetrical one that is providing Beijing with expanded leverage over the Kremlin.

And by welcoming Chinese companies into Russian communications infrastructure, Moscow is also potentially providing Beijing with access to Russia’s critical national infrastructure in a way that will be difficult to wind back.

Somewhat ironically, as its relationship with Beijing has become more asymmetrical, Moscow has become more suspicious about Chinese motives and concerned about Beijing’s leverage over it. But this suspicion is nowhere evident in the decisions Moscow is taking on Chinese investment in Russian critical national infrastructure and collaboration on technology and the digital economy.

In time, Russia’s suspicions of China’s intentions may ultimately prove to be well founded and the Russian bear may find itself dancing to Beijing’s tune.

Editors’ picks for 2019: ‘Can “revisionists” rule the world?’

Originally published 14 March 2019.

Judgements about the changing shape of the global order are the stuff of current international discourse. We face a world order in transition. Our current order, built in the age of US primacy, is being undone by a mixture of power diffusion and US weariness and buck-passing—unsurprising after 70 years of sustained effort.

Agreement about what might follow is harder to come by. Some suggest that China will simply replace the US as global leader—though Graham Allison’s warning of a ‘Thucydides trap’ is a cautionary tale that hegemonic transition is never simple. Others don’t accept that the transition point is either inevitable or close: Oriana Skylar Mastro, for example, believes China aims to displace the US from the Indo-Pacific, rather than to replace it as the global hegemon.

We also shouldn’t forget those who believe that the liberal order, or some variation of it, can be sustained by a committee of middle powers. Since we can’t undo power diffusion, even within the Western world, this approach favours collective action by an assembly of second-tier Western powers—the proposed ‘G-9’, for example—to build a new motor for the old order. Estimates vary wildly about the reliability of that nine-cylinder engine.

Following Mastro’s argument, the future world might well be a place where great powers impose different ‘orders’ within their regional spheres of influence—a globally disordered place rather than an ordered one. That seems a dark, gloomy vision. But there’s a gloomier possibility: a world order run by authoritarian states.

The Trump administration’s national security strategy portrays a world of accelerating strategic competition between the US on one hand and ‘revisionist powers’ (China and Russia) on the other. Some see in that competition a return to the days of the Cold War—namely, a grand strategic struggle for the soul of the world—although the document describes the challenge primarily in regional terms. The challenge becomes more global the more China and Russia cooperate.

So, let’s clarify the term ‘revisionist’, and then consider the prospects for Sino-Russian cooperation.

Not all rising powers are revisionists. Indeed, as Randall Schweller argues, rising powers are by definition countries which are doing better out of the existing order than everyone else. Logically, they should be supporters of that order. Schweller believes that rising powers can demonstrate three types of behaviour towards an existing order: supporter, shirker or spoiler. (Shirkers typically refuse to carry their fair share of ordering burdens; spoilers undercut the order.) Over time, China has demonstrated all three.

And just as rising powers aren’t always revisionists, so revisionists aren’t all alike. Schweller distinguishes between ‘limited-aims revisionists’ and ‘unlimited-aims revisionists’. It’s the second category which poses particular dangers for an order. Such powers not only press for substantive change in the existing order, they’re prepared to run risks and to use coercion and force to achieve it.

So, what sort of revisionists are Russia and China? It’s not easy to tell. For one thing, their ambitions seem to expand as US power and influence contract. So does their propensity for risk-taking. True, their use of force and coercion remains limited, but it has certainly been sufficient to put an end to earlier Western theories that both powers would one day ‘converge’ with the broader Western order. Still, it’s harder to imagine Russia as an unlimited-aims revisionist than it is China, not least because Russia’s a declining power. But just to be on the safe side, let’s assume that both are stealthy, unlimited-aims revisionists.

That takes us to the separate but larger question: could Russia and China cooperate to shape a new global order in Asia, Europe and the Middle East? That’s only a portion of the globe, but an important portion.

Well, Russia’s a European-centred state with a revanchist agenda focused on reversing its post–Cold War losses. That’s a big ask, though. The Soviet Union’s gone and it isn’t coming back. China, by comparison, is a rising power—and one that believes it’s entitled to a Sino-centric order in Asia, as a sort of latter-day compensation for the century of humiliation. It has both economic and growing military heft. Still, it remains an incomplete power, demonstrated most clearly by its relentless, state-organised theft of technology and intellectual property, and its large internal challenges.

It’s not obvious that Russia and China could build and sustain a new global order. Yes, they’re both permanent members of the UN Security Council. But neither attracts genuine ‘followers’ in the international community. They agree on what they don’t want—US hegemony—rather than on what they do.

They’re not driven by any shared ideology or common vision of what the world should look like under their leadership. Some suggest that they want to reverse the central tenet of the liberal order and make the world safe for authoritarianism, but that’s a negative, self-centred vision of the future rather than a positive ideational one.

Nationalism is a rising force in both countries, but that’s as likely to repel as attract.

Geopolitically, will the rising power cooperate with the declining one—except to secure its own backyard? Conversely, will Moscow see Beijing as its true strategic partner—as the Belt and Road Initiative extends Chinese influence across Russia’s soft Eurasian underbelly?

Where does that leave us? Frankly, a world order that turns upon close cooperation between Russia and China seems unlikely. Each is better placed to exert regional influence than global clout. And both are better placed to play the easy role of spoilers than the difficult role of architects. A world disordered by the joint efforts of Russia and China to diminish US power and influence—accelerated by some of the US’s own actions—seems the near-term reality we’ll be living through.

The perils of the Cold War hangover

The year 2014 was just as significant as 1914. Russia’s annexation of the Crimean peninsula elicited a weak response from the West and highlighted a larger strategic problem: the erosion of the liberal-democratic world order. The West failed to rise to the challenge of Russian resurgence and, since 2014, has all but shrugged at the notion that it must act to sustain the rules-based global order we created after World War II.

Paul Dibb’s recent ASPI report is an important addition to a rather limp debate on great-power warfare and the role of the Sino-Russian relationship in Australia’s strategic outlook. Dibb outlines the ways in which Russia and China are profiting from the West’s strategic disarray. He points to China in the South China Sea and Russia in Crimea as examples of coercion by Beijing and Moscow in their ‘natural sphere[s] of influence’.

These ventures are symptomatic of a bigger challenge than just Western (specifically, US) weakness. To our disadvantage, strategists in the West continue to focus on Russian and Chinese advances and obsess over tracking their parallels with the Cold War era.

But a more productive relationship between Russia and the West is possible, as history shows. Such a relationship will only ever be based on matters of mutual interest, so we shouldn’t hold our breath for a democratic Russia. Russia, for its part, hasn’t turned away from its traditional focus on Europe, and President Vladimir Putin’s ‘idea of Russian exceptionalism, of Russia’s unique Eurasian identity’ is not inherently anti-Western.

The Eurasian narrative in Russia predates soured Russia–West ties. Europe is vital to Russia’s energy industry as by far its largest export market for natural gas.

Dibb argues we should expect some (more) risk-taking behaviour from Putin’s Russia, noting ‘Russia might consider using military force in such places as Moldova and Kazakhstan’. While some grievances exist, both states are active participants of Russian-led collective security and economic blocs.

Kazakhstan is one of the six members of the ‘Eurasian NATO’—the Collective Security Treaty Organization. Any Russian aggression against Kazakhstan would be in contravention of Article 4 of the CSTO treaty that Moscow itself crafted. Putin has also applied valuable lessons learned from the EU experiment in forming the Eurasian Economic Union. Kazakhstan is a member of the EEU, and Moldova is seeking to integrate into the union and was the EEU’s first observer state. Moscow needs these institutions to work, so self-inflicted damage is unlikely.

This brings us to the question of whether a Russia–China military bloc will ‘inevitably affect the international security order, including by challenging the system of US-centred alliances in the Asia–Pacific and Europe’. Perhaps. But the international system is already shifting away from US-centred alliances without the help of an accord between Beijing and Moscow. In the West we have been complacent in protecting liberal democracy from wear and tear.

The argument that Russia and China are united in their disdain for the West is contestable. These authoritarian powers have actually benefited from the Western-led processes of globalisation and market liberalisation. Moscow and Beijing seek respect, notice and recognition from the West that they’re legitimate poles of power in a multipolar system.

Dibb’s argument that Russia and China are developing an ‘ever-closer friendship of convenience’ is apt. But there’s potential for a falling out. The relationship between Russia and China will be convenient until it is not. Dibb argues that Moscow and Beijing might take risks to ‘regain lost territories’. What, then, of the possibility that China will seek to regain lost territory in the Russian far east?

A final problematic assumption is that the West is still united as a bloc and that the very concept is still of use. The notion of ‘the West versus the rest’ is fitting for historical black-and-white assessments of the international environment. However, the contemporary landscape is not so neatly divided. The use of ‘grey zone’ tactics means a new framework for pondering our security outlook is needed.

And while it’s true that US dominance and power-projection capacities are in relative decline, both Moscow and Beijing harbour long-term fragilities at home. Demographically, they’re both in serious trouble. China will likely get old before it gets rich, and therefore its time at the ‘top’ strategically might be relatively short lived. Russia has similar population challenges, magnified by an increasing brain drain of migration out of the country.

The established international system is eroding and the risk of conflict may have increased. However, we must be careful not to miss the forest for the trees. Russia–China ties are closer than ever before and, yes, we should expect the two states to take advantage of the West’s strategic and ideological disarray.

But our response will be short sighted if it focuses on Russia and China alone, for Putin and his Chinese counterpart Xi Jinping personify the profound transformation towards a multipolar order. There’s still time to reserve a seat at the leadership table for Western liberal democracy in this future international system.

Russia’s growing interests in the South China Sea

In October, during his second official visit to Russia, Philippine President Rodrigo Duterte invited Moscow-based energy company Rosneft to conduct oil and gas exploration in waters the Philippines claims in the South China Sea. The offer was reciprocated by the Russian ambassador to the Philippines, Igor Khovaev, who invited Philippine companies to also ‘explore oil and gas in Russia together with Russian companies’. A team from Rosneft went to Manila later that month to discuss the possibility of joint offshore oil exploration with the Philippines Department of Energy.

Rosneft, which is half-owned by the Russian government, is no stranger to the South China Sea. It became an operator of a joint project for gas production and exploration in Block 06.1 in the Nam Con Son Basin, off the coast of Vietnam, back in 2013. Since 2018, it has also been working with Vietnam to expand gas development projects in Vietnam’s exclusive economic zone, including drilling two new wells in the area.

In the context of China’s increasing pressure on the other South China Sea claimants, however, Rosneft’s activities have recently drawn the attention of Beijing. Block 06.1, which lies within Vietnam’s EEZ, also falls within China’s self-proclaimed nine-dash line. Beijing’s policy on resource projects in the South China Sea has been clear and consistent: ‘no country, organization, company or individual can, without the permission of the Chinese government, carry out oil and gas exploration and exploitation activities in waters under Chinese jurisdiction’. Yet, despite continued warnings, Rosneft has not stopped its operations.

Russia’s presence in the South China Sea complicates the ongoing disputes between China and its neighbours over competing territorial claims. If the Philippines engages in joint exploration with Rosneft, Russia could start to play a wider role in the region.

Russia says it has no intention of getting involved in territorial disputes or siding with any party. Its actions so far reflect that stance. Russia–China relations have been warming for some time, and earlier this year Moscow and Beijing upgraded their relationship to a ‘comprehensive strategic partnership of coordination’. Chinese President Xi Jinping described the bilateral relationship as being ‘at its best in history’.

Russia has also been a key long-term defence partner for Vietnam, both strategically and militarily. The two nations signed a defence cooperation agreement covering 2018–2020 last year, and agreed to enhance defence cooperation during 2019–2023. Russia and Vietnam also elevated their bilateral relations to a comprehensive strategic partnership in 2012.

Vietnam is the only claimant that has been consistently vocal in its opposition to China’s activities in the South China Sea. Events this year—specifically, the stand-off at Vanguard Bank in which Vietnamese and Chinese coastguard vessels were involved in a confrontation over the presence of a Chinese survey vessel in waters Vietnam controls—illustrate the territory-related tensions in China–Vietnam relations.

Other than diplomatic statements from the US, Hanoi appears to be fighting a solo battle against Beijing’s maritime claims with little support from fellow ASEAN countries or the wider international community. Russia doesn’t have a habit of issuing such statements, particularly when it comes to the South China Sea.

But despite Moscow’s claim that it will not get involved in territorial disputes, by continuing to work with Vietnam through Rosneft it is expressing support for Hanoi. If Rosneft remains undeterred by China’s attempts at coercion, it may set an example for other international commercial oil companies to engage in joint operations in this disputed body of water.

China’s response to Vietnam’s joint project with Rosneft has been much less aggressive than its reaction to the involvement of other foreign companies in disputed waters.

Beijing pressured Hanoi to scrap its resource drilling projects with Spanish firm Repsol in 2017 and 2018, reportedly threatening to attack Vietnamese bases in the Spratly Islands if the exploration continued.

China has warned Rosneft about its activities, but has made no threats of retaliation. At the ASEAN foreign ministers’ meeting this year in Bangkok, China’s Foreign Minister Wang Yi met his Russian counterpart Sergei Lavrov on the sidelines and reportedly asked him to stop Rosneft’s operations. Lavrov is said to have declined.

If the Philippines conducts joint resource exploration with Russia, it will add another layer of complexity to the territorial dispute. Beijing would need to share resources with both Manila and Moscow, alongside its own joint resource exploration deal with Manila.

If the Russia–Philippines project is first to strike gold in the form of either oil or gas, how will China react? And how will Beijing deal with Russian resource exploration with the Philippines and gas projects with Vietnam, all within its self-proclaimed waters? Such questions are particularly important now that China and the Philippines seem to be in the final stages of implementing their joint exploration agreement.