2018 INTERNATIONAL SECURITY AND ESTONIA
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CONTENTS Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 The domestic political situation in Russia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 The Russian economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 The effects of the sanctions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 The Russian military . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Russian foreign policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Outlook for the Minsk Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Rosneft and Gazprom as the tools of Russian foreign policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Relations between Belarus and Russia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Intelligence from the territory – threat to foreign nationals in Russia . 35 The FIFA World Cup in Russia – Putin’s PR project . . . . . . . . . . . . . 42 Influence operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 Information warfare units targeting NATO . . . . . . . . . . . . . . . . . . . . . . . . 47 Kremlin’s use of misrepresentation of historical events in influence operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Cyber threats . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 Terrorism in Europe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 North Korea’s weapons programme continues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 The Estonian Foreign Intelligence Service’s mission . . . . . . . . . . . . . . . . . . . . . . 67
2 INTRODUCTION INTRODUCTION I am pleased to present the Estonian Foreign Intelligence Service’s third public report, in which we describe the world security environment surroun- ding Estonia. In 2017, Russian meddling abroad was starkly exposed for a large share of the public in the US and Europe. The topic received an unprecedented and quite deserved level of attention. Defining mo- ments included the unanimous assess- ment of US intelligence agencies regarding Russia’s interference in the 2016 Ameri- can election, French president Emmanuel Macron’s denunciation of Russian media channels as “agents of influence”, and Ger- man chancellor Angela Merkel’s warning MIKK MARRAN to Russian president Vladimir Putin not to Director General, meddle in the German election. Estonian Foreign Intelligence Service Estonian security institutions have been talking for years about attempts on Rus- sia’s part to splinter the unity and trust Russia’s fight against the West also that exists between nations in the West. takes place on Russia’s own territory. The The awareness of this fact is now spread- respective chapter of the report examines ing more broadly in the US and in many the modus operandi used by Russian places around Europe. Unfortunately, no special services to recruit or intimidate changes can be seen in Russia’s behav- foreign nationals inside Russia (a practice iour. In the years ahead, Russia seems known as gathering “intelligence from the likely to continue its politics of division territory”). The purpose of the chapter is and opposition to the system of Western not to dissuade people from visiting Rus- values. In our report, we illustrate on just sia, but we do draw attention to the large how broad a front Russia is waging this scale and aggressiveness of the activities battle by listing the conflicts and regions pursued by Russia’s intelligence services, where we see Russian interference as and describe the dangers that people highly likely this year. could face who travel there.
INTRODUCTION 3 In early 2018, the big question pertaining Estonian security does not exist in a to Russia is what will happen after its vacuum; our security and well-being March presidential elections. The world is depend on that of our friends, and their witnessing a carefully choreographed piece vulnerabilities are our vulnerabilities. That of theatre that attempts to leave the im- is why our report also covers the issue of pression of free elections. But behind the terrorism. Although the threat of terror- scenes, a cynical plan is being executed to ism is low in Estonia, it is high in Europe ensure Putin and his inner circle retain their as a whole, and poses a threat to Estonian grip on power for yet another term. In the citizens travelling abroad. report, we detail how complicated this task An acute problem that emerged in 2017 is given Russia’s declining socioeconomic was the threat from North Korea, which indicators and gathering mood of protest. could lead to noteworthy developments Our aim is to cover the events in Russia this year. In spite of the fact that the that tend all too often to reach the public in Korean peninsula is geographically far distorted or incomplete fashion. The Putin from us, increased tensions in that region regime is masterful at fostering a false also impact our security. We are therefore image and creating deceptions. A vivid keeping a close eye on the situation there example of the above is Zapad-2017, the and also in other distant conflict zones. major military exercise held last autumn. The Estonian Foreign Intelligence Service For the benefit of the entire internation- recently marked its 25th anniversary. Our al community and the Russian public, it mission continues to be the same – to was painted as a minor counterterrorism protect the Estonian state from external exercise held in Belarus, but actually this security threats by providing trustworthy was but a disguise for large-scale manoeu- intelligence for decision-makers. Our task vres that were a test run for all stages of a is to ensure that when Estonian leaders full-scale war on NATO. Although this was gather to make key decisions from the not the first time this scenario had been standpoint of security, they know more rehearsed, a greater level of concealment about the topic than what is available over could be detected on this occasion. Unfor- public channels. tunately, disinformation and half-truths also showed up in Western coverage of the Just as important is the realization that exercise. we – the government, society and the citizens – create our own security space Although Russia conducts large-scale every day. The well-known slogan to military exercises, our report states clearly: “think globally, act locally” is also valid the threat of a direct military attack on when it comes to understanding security NATO member states in 2018 is low. We in the Baltic Sea region in 2018. will discuss this matter in more detail in the chapter on the Russian military. Bonne lecture!
4 T H E D O M E S T I C P O L I T I C A L S I T U AT I O N I N R U S S I A THE DOMESTIC POLITICAL In 2018, internal tensions will grow in Russia, the economy will remain stagnant, and the regime will fail to convince the populace that there is light at the end of the tunnel. In the coming years, this may destabilize the foundations of the current political system in Russia. T he main goal for Putin and though Russia’s current political leaders the political ruling clique is have never shied away from using to stay in power. In the short various administrative means for influ- term, this means that the encing election results, such attempts 2018 presidential elections have to be will run significant risks on a backdrop carried out smoothly. The unfavourable of general discontent. The ruling elite domestic political situation will give the remember 2011, when State Duma Kremlin less manoeuvring room. election fraud was the last straw that led to resentment brimming over into As regards the re-election of Putin, the protests among the middle class in the domestic political realities in 2018 are largest cities. The elite want to avoid a now less in his favour than ever before repeat of such a scenario at all costs. – dissatisfaction with the actions of the But eliminating the root causes of the political elite and the situation in the dissatisfaction – political and economic country has grown significantly. Political stagnation – is impossible as long as activism is simultaneously on the rise, the system continues to be tilted in the especially among young people. Even ruling clique’s interests.
T H E D O M E S T I C P O L I T I C A L S I T U AT I O N I N R U S S I A 5 SITUATION IN RUSSIA THE DOMESTIC ruling elite. With the personal standard POLITICAL REALITY of living declining, the lavish lifestyle of senior officials and corruption cases The domestic political situation in caused greater resentment. Moreover, Russia in 2018 will also be character- as the recession dragged on, there was ized by growing discontent among increasing lack of confidence in the the population. The reasons for the capability of the central government, broader dissatisfaction of its citizens all the more since top Russian leaders come down to the political and eco- did not go beyond well-worn clichés in nomic impasses, either separately or addressing solutions to the country’s in combination. The first serious signs problems. As a result, many citizens of growing discontent emerged in the have long since started to doubt second half of 2015, when the number whether their leaders’ prescriptions are of protests increased due to the coun- feasible. A certain segment of society try’s economic difficulties. During that – above all, the younger generations time, public accusations against the – are bothered by the political system Kremlin and Putin were rare, and the itself; the stagnated, kleptocratic sys- direct triggers for the protests and the tem is seen as the main obstacle to the slogans were largely apolitical. But the country’s development, and is seen as scope of political demonstrations had having a negative impact on their future grown significantly by spring 2017. prospects. Russia’s economic downturn affected how society react- ed to the actions of the AS REGARDS THE RE-ELECTION OF PUTIN, THE DOMESTIC POLITICAL REALITIES IN 2018 ARE NOW LESS IN HIS FAVOUR THAN EVER BEFORE – DISSATISFACTION WITH THE ACTIONS OF THE POLITICAL ELITE AND THE SITUATION IN THE COUNTRY HAS GROWN SIGNIFICANTLY.
6 T H E D O M E S T I C P O L I T I C A L S I T U AT I O N I N R U S S I A When comparing the current situation to 2011, the main differences are the va- riety of reasons for the discontent and the spectrum of those dissatisfied. In 2011, the catalyst for the protests at the start of the decade was dissatisfaction among a fairly small part of society – mainly the Moscow and St. Petersburg middle class – with the current political system. The overwhelming majority of people in Russia did not support the protests. Putin’s public approval ratings are still high, but it is questionable how reliable or valid the figures are, given the current atmosphere in Russia. First of all, the ratings results cannot be fully interpreted without knowing the exact changes that have taken place in recent years in the structure of the response rate, especially among those who de- clined to answer. Secondly, the accuracy of the results is influenced by self-cen- sorship as people may be reluctant to criticize the regime. A transformed media space and new ways of exchanging information play an important role in the broader spread of criticism of the Russian regime. While Kremlin-controlled information channels are still domi-
T H E D O M E S T I C P O L I T I C A L S I T U AT I O N I N R U S S I A 7 nant in the sphere of traditional mass media, especially television, their impact on society has decreased as new media become more extensively consumed; this trend will continue. The widespread use of social media has brought Russia’s outlying regions closer to the large cities than ever before. That is probably one reason why the protest demonstrations of 2017 spread so widely. New media platforms also offers convenient ways to organize demonstrations – ones that can be hard for state security in- stitutions to track. This forces Russia’s elite to worry even more about how they will conduct the 2018 presidential elections. In response to the broader protests, Prime Minister propaganda targeting the younger gen- Dmitri eration was increased with an attempt Medvedev’s to enforce even tighter control over luxurious winter exchanging information online. One residence in aspect that characterizes youth-ori- Sochi ented activities is their reliance on old concepts – emphasis on World War II themes and military-oriented patriotic education – that are out of step with SO URC E: the times. HTTP://AVMALGIN. LIVEJO U RN AL. While new media has been harnessed CO M/4 271 637.H TML to influence young Russians, so far it
8 T H E D O M E S T I C P O L I T I C A L S I T U AT I O N I N R U S S I A has not achieved impressive results. down on internet freedoms. In July, More often than not, the anti-oppo the State Duma adopted a decision sition propaganda on new media has under which the Russian internet left an awkward impression. Impor- supervision authority Roskomnadzor tant steps were taken earlier, too, for will have the right to blacklist an- improving the possibilities of con- onymizers and VPN services, which trolling the internet and new media. are used for viewing websites blocked In 2017, the Russian regime showed in Russia. The State Duma approved more speed and muscle in clamping a proposal requiring all users of social Direct conversations with young Russians where every detail is stage-managed play an important role in propaganda youth outreach, leaving younger audiences in particular with the impression of an inert and old-fashioned apparatus. Such inhibited formats do not seem to be an effective channel for youth-oriented propaganda. Pictured: one such meeting at the Sirius Centre in Sochi. SO URCE: AP/SCANP I X
T H E D O M E S T I C P O L I T I C A L S I T U AT I O N I N R U S S I A 9 TV CHANNEL VIEWERSHIP IN RUSSIA BY AGE GROUP 100 % 80 % 60 % 40 % 20 % 0% Almost 3-5 days 1-2 days Less than I do not I do not every day a week a week once a week watch TV own a TV Age 18-30 years 31-45 years 46-60 years Older than 60 years SOURCE : Ф О М Н И Б У С 2 0 17 media and instant messenger services In addition, tried and tested tactics to identify themselves using a person- are used to apply pressure on more al mobile phone number. This change, active critics of the government – it is hoped, will foil the anonymity unfounded accusations and searches of protest organizers. It is not likely of organizations’ offices and activists’ that the measures to curb Internet homes, organized hooliganism against freedom will succeed in being fully persons and their property, and implemented. pressuring people through employers and education institutions. Russia
10 T H E D O M E S T I C P O L I T I C A L S I T U AT I O N I N R U S S I A Navalny supporters at a rally in Novokuznetsk on 9 December 2017. SOURCE : AP/SCAN PIX continues to be a country where the more active critics have a justified fear for their own safety and that of their loved ones. It is likely that the ruling elite will try to further strengthen their pressure methods against critics of the regime and control of transmis- sion of information. In the run-up to the presidential elections, there has been increased emphasis on feigning political plu- well-known and of some interest to ralism to increase the semblance of the public, while safe and not posing legitimacy of the vote and as a sump a real threat of unseating the incum- for opposition-minded sentiment. bent. In 2012, this role was played As people in Russia have long found by Mikhail Prokhorov. In 2018, both it hard to take seriously opposition Ksenia Sobchak and Pavel Grudinin candidates who are officially sanc- appear to fit this role. Sobchak is tioned by the regime, the Kremlin will well-known and merits attention, but need at least one fresh new candidate most Russians view her as an un- to play the role of “independent” suitable candidate for president or as challenger. The person suitable for any kind of serious politician. For the this would be an individual who is latter reason, Sobchak’s criticisms of
T H E D O M E S T I C P O L I T I C A L S I T U AT I O N I N R U S S I A 11 FOR THE FIRST TIME IN YEARS, THERE IS REASON TO SPEAK OF A CREDIBLE OPPOSITION FORCE IN RUSSIA. ALEKSEI NAVALNY GAINED NOTEWORTHY INFLUENCE AMONG THE POPULATION AND HAS BECOME A REAL THREAT FOR THE KREMLIN. influence among the population and has become a real threat for the Kremlin. Key reasons for his success are his skilful use of social media to get out his message, as well as the fact that he speaks of problems that matter to society. The main reason for the government are entirely safe as his success, however, is the change in far as the Kremlin is concerned and the social situation. General discon- her political agenda is perfect material tent has grown, and this provides a for the appearance of an open public grateful audience for an opposition debate. leader who speaks openly about problems and creates opportunities to Despite the central government’s protest against them. actions against opposition and ma- nipulation of popular sentiment, there is, for the first time in years, reason to speak of a credible opposition force. Aleksei Navalny gained noteworthy
12 T H E R U S S I A N E CO N O M Y THE RUSSIAN ECONOMY The growth and decline of the Russian economy reflect oil price fluctuations, not structural development of the economy itself. T he current function- ing of the Russian economy can no longer guarantee the well-being of society. Fundamental reforms are needed, but it is unlikely they will be un- The primary condition for surviving and dertaken, as this would be contrary to being successful in Russia’s business the interests of the ruling elite. To dis- world is not having competitive goods tract from the real economic problems and services, but a patron who is as and mislead the Russian public and the high as possible in the power hierarchy. West, the Kremlin is maintaining the In more profitable sectors, enterprise appearance of public debate on possible is in the hands of the ruling elite or reform and liberalization of the Russian closely connected circles, and there is economy. no actual competition. Such a system President Vladimir Putin and his inner is favoured by a biased judicial system circle continue to use state power to that is controlled by the ruling elite, in maximize their personal influence which no independent entrepreneur can and to provide for their own financial expect the transparent administration security. The silencing of critics and of justice. Providing closely connected pressure on civil society also means the businesses with profitable govern- creation of an environment extremely ment contracts has become so much unfavourable to economic development. the norm that the Russian press uses
T H E R U S S I A N E CO N O M Y 13 »» The state plays a dominant role in the economy, and thus market-economy processes have marginal influence, being akin to imitations of a true market econo- my. Initiative from private enterprise faces too high a risk in such an environment. »» The economic structure is tilted toward large companies. Small enterprise is hindered by bureaucracy and arbitrary exercise of power and corruption among lower officials. The low proportion of small businesses leads to a lack of competition, which in turn creates more inefficiency. »» The labour market is not flexible. Crises rankings of income earned by perform- are not used to spur reform of the labour ing government contracts as a measure market by retraining and developing a companies’ influence. small business. In a crisis, there is a Falling energy prices and economic reluctance to lay off workers and a prefer- sanctions experienced in recent years ence for riding out the crisis, with the amplify the structural problems in the burden borne collectively. economy and have highlighted the need »» Citizens have low trust in those who are for reforms. Compared to the low oil beyond their immediate social circle and price in 2016, the past year brought this mistrust is amplified by recurrent slight economic growth, which tends to experiences of dysfunctional rule of law. feed a misconception that the hardship This in turn breeds apathy and a waiting has been overcome and keeps reforms attitude. Citizens do not view change from being implemented. positively, and as a result have low cour- To summarize, the Russian economy age for action, yet these two things are has a complex problem based on the indispensable for carrying out economic following factors. reforms.
14 T H E R U S S I A N E CO N O M Y HOW MUCH RUSSIAN FAMILIES WITH TWO CHILDREN HAVE LEFT TO SPEND AFTER ESSENTIALS One indicator characterizing a country’s Only a very small share of these house- social landscape is the compulsory holds earns the arithmetic mean in- costs of a family with two children. come, and the absolute majority has to This type of household accounts for subsist at very low income levels. Only a the greatest share of the population small proportion of Russian inhabitants and is a good basis for generalization. enjoy a standard of living equivalent to Monetary value shows the amount that the average of Western countries. should cover monthly expenses, such The social stratification also has a as clothing, footwear, transport, durable regional dimension. A large part of goods, and leisure activities. the well-being for Russian citizens is Looking back on Putin’s third term defined by where they live. It is often in office, 2012–17, we see that this possible for Russian inhabitants to indicator has dropped about 15 percent upgrade their standard of living just by since 2011. Even more important than moving from rural areas to cities, and the decrease is that social stratification from the cities to foreign countries. The has increased. realization that part of their problem is rooted in where they live makes Russian citizens less enterprising and reduces the regional tax base even further. The falling standard of living in regions makes it more costly and complicated for the Kremlin to ensure the county’s integrity and the current economic mechanisms are incapable of solving this problem. At the same time it is clear that fundamental changes for improving the business environment
T H E R U S S I A N E CO N O M Y 15 and restructuring the economy would collapse. Whether that indeed happens weaken the positions of the elite and depends more on the Kremlin’s ability the economic circles associated with to divert the attention of the masses them. Continuing on the same eco- than on economic measures. nomic policy course could end in social
16 T H E R U S S I A N E CO N O M Y THE EFFECTS OF THE SANCTIONS The consistent implementation of Although Russia would not gladly admit sanctions has come as a surprise for it, the sanctions have had a compre- the Kremlin. In hoping that the West’s hensive and long-term effect on the unity in establishing and maintaining the Russian economy. The sanctions will sanctions would be short-lived, Russia shave at least one percentage point off made a miscalculation. The error is due of Russia’s economic growth in 2018. to the inability to see Western policy Along with structural problems and as values-based. Perhaps the Kremlin low oil prices, Russia’s economy will be hoped that pragmatic and economic stuck in low gear. The longer sanctions considerations would win the day and a last, the more ingrained the tendency return to mutually beneficial deals would for investors and companies to forgo be imminent, as the Russian market any transaction that may have a Russia and opportunities in Russia are indeed connection. important for the West. But it failed to Domestic Russian propaganda is fairly recognize how thoroughly Russia’s ac- adept at creating a myth of how the tions went against Western values and “unjust” Western sanctions are an how this has destroyed trust in Russia. attack by an external enemy that is The West’s sanctions imposed on causing economic hardship for ordinary Russia have had economic and political Russians. This narrative shields Rus- impact. The solidarity between Europe sia’s leaders from criticism for a failed and the US has been substantial, to the economic policy, and helps to some Kremlin’s surprise. Politically, Russia is degree to paper over the fundamental displeased at finding itself in isolation weaknesses in the economy. at a time that it seeks a role as a global Even now, import substitution policy player. Potential new American sanc- and counter-sanctions breed a patriotic tions cause anxiety among Russia’s spirit in Russia, but this is no substitute elite and would strengthen the effect for a new economic environment and further. THE SANCTIONS WILL SHAVE AT LEAST ONE PERCENTAGE POINT OFF OF RUSSIA’S ECONOMIC GROWTH IN 2018.
T H E R U S S I A N E CO N O M Y 17 Contraband cheese seized on the Russian-Finnish border in August 2017. SO URCE: HT T P : //S Z T U.CUSTO M S. RU foot, causing disgruntlement among the population by destroying smuggled food. Russian people, however, are keen to acquire contraband products. Certain Western foodstuffs have a firm local following (even everyday perishable does not lead to a rise in well-being. So staples such as cheese) and are of a far, the import substitution programme quality Russian goods cannot compete has only been partly fulfilled. There are with, and thus they are actively smug- clear problems with availability of high- gled in. tech parts in the energy sector and the military industry is also experiencing a It is currently premature to predict drought when it comes to components whether sanctions will lead to compre- sourced from the West. Injections of hensive changes in Russian policy or capital into Russian companies have deter planners of future Russian foreign nearly dried up. Russia’s other partners policy adventures. Until the presidential do not appear to be interested in filling elections, President Putin will not be the vacuum. High interest rates and able to make sudden moves that are Russian banks’ difficulties in raising comparable to losing face. Even during capital have a stranglehold on small- to a new term for Putin, Russian society medium-sized enterprises and their cannot for long delude itself by blaming borrowing needs. Russia’s own coun- the West for its problems or think that ter-sanctions have not been effective the country’s basic economic problems in the area of import substitution and were caused by sanctions. Russia is not have not managed to drive a wedge be- devoid of economic and political knowl- tween EU member states. In their zeal edge, and a consistent sanctions policy to impose countersanctions, Russian will help these ideas gain better traction authorities have shot themselves in the in Russia.
18 T H E R U S S I A N M I L I TA RY THE RUSSIAN MILITARY The only existential threat to the sovereignty of Estonia and other Baltic Sea states emanates from Russia. However, the threat of a direct Russian military attack on NATO member states in 2018 is low. A s long as Russia is ruled against Estonia, Latvia, Lithuania and by an authoritarian regime Poland. In the course of the exercise, whose top priority is to Russian armed forces underwent all exercise political dominance phases of an all-out war: Russia’s over its neighbours, Russia will continue military intervention in response to a using military pressure against Esto- “colour revolution” in Belarus, escala- nia, Latvia and Lithuania. Considering tion into a conventional war with NATO, that authoritarian regimes tend to see and finally, to nuclear war. threats where none exist, it is not com- Russia’s general behaviour in relation to pletely beyond the realm of possibility military exercises shows that the coun- that the Russian leadership will make try’s leadership does not care about a strategic miscalculation, believing the fundamental values of international that NATO’s collective defence is not treaties, including the principles of effective. building transparency and trust. What Russian military planners do not view was, according to the official notice, Estonia, Latvia and Lithuania separate- a six-day exercise actually lasted six ly; they approach Europe and NATO as weeks. Russia’s official media coverage a whole. In Russia’s latest major military significantly distorted the size of the exercise Zapad-2017, Russian armed exercise as well: publicly, the exercise forces practiced a full-scale war with area was declared as Belarus and Ka- NATO in Europe. According to the sce- liningrad, but actually the exercise was nario, the conflict started in Belarus. As held all over western Russia, from the usual, one of the main elements of the Barents Sea to the border of Ukraine. military exercise simulated an offensive Furthermore, officially it was declared
T H E R U S S I A N M I L I TA RY 19 that 12,700 troops took part but actual- systems as well as the establishment ly there were more than 100,000. of new units and commands. The same trend continued in 2017. The first group The nature of the exercise was nothing of new Su-30SM fighters was de- new: anti-NATO scenarios have been ployed in the Kaliningrad Oblast. In the used in most Russian armed forces Western Military District, new divisions exercises, including all of the previous are formed and infrastructure is built. Zapad exercises. Although the plans In 2018, the Baltic Fleet will get its first and scenarios have remained the same, two Karakurt-class missile corvettes. the Russian armed forces are able The importance of these ships lies to practice the military operations in above all in their weapons systems. The greater detail with each exercise cycle new Kalibr cruise missiles, which can – a number of the elements previously attack land targets within 2500 km, will simulated on a map are now played out be part of the ships’ arsenal. In 2018, in the field. the Russian armed forces will complete In 2018, the Russian armed forces’ an- the rearmament of the Kaliningrad mis- nual exercise will be held in the Far East, sile brigade with the Iskander missile under the name of Vostok-2018. The scenario will involve a regional conflict in the Pacific Ocean region. We know from previous years that somewhat paradoxically, the Vostok exercises are also targeted mainly against a perceived threat from the United States. The largest land border between Russia and NATO increases the military impor- tance of the Baltic Sea region for Rus- sia. Besides regular military exercises, the Russian armed forces have consist- ently strengthened their presence in the region with the most modern weapon
20 T H E R U S S I A N M I L I TA RY Russian President Vladimir Putin, Defence Minister Sergei Shoigu (on the left) and Chief of the General Staff of the Armed Forces Valeri Gerasimov (on the right) observing the Zapad exercise in the Luzhsky district in the Leningrad Oblast. SO URCE: AP/SCANP I X The shooting of Iskander-K missile during the Zapad-2017 exercise in Luzhsky district which is roughly 100 kilometres from the Estonian border. SO URCE: AP/SCANP I X system. This system can be used to The weaknesses of the Russian armed attack strategic targets within a radius forces must also be taken into account of 500 km. when assessing Russia’s military capability. Neglect, corruption and theft In 2018, the formation of a National are still prevalent in the Russian armed Guard based on internal forces and forces. Although the number of con- Ministry of the Interior institutions and tracted military servicemen is growing units – a process started in 2016 – will due to economic difficulties, the num- be completed. In the final phase of the ber of disciplinary violations has also reform, the OMON and SOBR special increased in the past year, suggesting police units will be integrated complete- low morale among the newly enlisted. ly into the National Guard’s paramilitary With economic problems deepening structure, and the National Guard will and the cuts and inflation spreading thereafter be prepared to fulfil all of its into the armed forces budget, discipli- domestic security and national defence nary problems and tensions are likely to functions. In connection with this year’s rise in the future as well. Staff turnover presidential elections and the football is still high among younger officers. championship in Russia, the National For young officers, the Russian armed Guard will be put to the test, as the forces provide limited decision-making post-reform security services must en- freedom, discourage their initiative, sure that the elections proceed without and assign menial service duties – all major protests and unrest.
T H E R U S S I A N M I L I TA RY 21 of which lower morale. Also, the lack 2017 that Russia had won the Syrian of qualified junior specialists remains a war and was withdrawing its troops. problem. These shortcomings will affect At the same time, in 2018 Russia is the military readiness of all combat likely looking for ways to get involved in units. other conflict areas in the Middle East and Africa. The main purpose of such The Russian military operation in Syria activity is to irritate the West, and not has essentially exhausted itself after necessarily contribute to the resolution achieving its three primary goals. In of these conflicts. terms of publicity, Russia has managed to abundantly but not convincingly Russia’s war against Ukraine will con- promote itself as a participant in solv- tinue in 2018. Russia’s goal is to main- ing the world’s problems and a force tain a constant level of military activity against terrorism. Russia has been able in eastern Ukraine and, through that, to secure the right to use the port of keep the internal situation in Ukraine Tartus, and has in essence used Syria as unstable. a testing range for its weapon systems. The likelihood of Russia’s covert or Further involvement in the conflict overt military intervention in countries would expose inherent weaknesses where it claims to have privileged inter- in Russia’s military and diplomatic ests, such as Belarus, Moldova or Ka- capabilities. These factors influenced zakhstan, is medium. Previous military Russia’s announcement in December
22 T H E R U S S I A N M I L I TA RY The Russian nuclear submarine Dmitry Donskoy cruising by SO URCE: R EUT ERS/SCANP I X Denmark’s Great Belt Fixed Link crossing. interventions in Georgia (2008), posing a threat to the survival of the Ukraine (2014) and Syria (2015) show Kremlin-obedient regime. It should be that the Russian leadership has the will noted that the term “colour revolution” and the readiness to intervene mili- can be used by the Russian leader- tarily outside its borders. The “colour ship in the public narrative to describe revolution” element at Zapad-2017 almost any situation. It can also be used also shows that Russia wants to be to describe both actual and hypothetical prepared if necessary for a rapid military future events, thus helping to justify intervention in Belarus, if the Belaru- pre-emptive operations. sian people’s bid for democracy starts IN 2018 RUSSIA IS LIKELY LOOKING FOR WAYS TO GET INVOLVED IN OTHER CONFLICT AREAS IN THE MIDDLE EAST AND AFRICA. THE MAIN PURPOSE OF SUCH ACTIVITY IS TO IRRITATE THE WEST, AND NOT NECESSARILY CONTRIBUTE TO THE RESOLUTION OF THESE CONFLICTS.
T H E R U S S I A N M I L I TA RY 23 HOW RUSSIA IGNORED INTERNATIONAL AGREEMENTS A good example of Russia’s lack of transparency is its attitude toward international agreements related to regional security. One such is the Vienna Document on Confidence- and Security-Building Measures from 2011, which the OSCE countries including Russia have signed. WITH THE ZAPAD EXERCISE, RUSSIA IGNORED THE LETTER AND SPIRIT OF THE VIENNA DOCUMENT AGREEMENT. Russia did not notify Zapad- Russia did not invite A couple of weeks before 2017 to other states party to observers from other OSCE Zapad-2017’s official phase, the the Vienna Document, even countries to Zapad-2017, Russian armed forces organised a though the number of military although it should have covert large-scale snap exercise, in- personnel (over 20,000 land done so. It invited only the volving more than 100,000 military and airborne forces) exceeded defence attaches residing personnel. Paragraphs 41 and 41.1 the notification threshold. in Russia as “guests” on of the Vienna Document oblige to Paragraphs 38 and 40.1.1 of visiting day. Paragraph 47.4 notify other countries of the start the Vienna Document oblige of the Vienna Document of a snap exercise. Such extensive a country to provide 42 days obliges a country to invite snap exercises are held an average advance notice of an exercise observers to exercises of five times per year by the Russian involving at least 9,000 mili- involving at least 13,000 armed forces. In paragraph 67.1 of tary personnel. military personnel. the Vienna Document OSCE coun- tries pledged to hold a maximum of one exercise involving at least 40,000 personnel every three years. Belarus, a participant of Za- pad-2017, was not in violation of the provisions of the Vienna Document and was open to neighbouring countries and the international community.
24 R U S S I A N FO R E I G N P O L I C Y RUSSIAN FOREIGN POLICY Russian foreign policy and security policy is based on an adversarial stance toward the United States and the West in general. The main goal of the Putin regime is to end its political isolation and to restore its position on the world arena. R ussian foreign policy be- sphere of influence in its neighbour- haviour is opportunistic. To hood, where its aim is to slow down the achieve its goals, Russia pace of democratization and any sort combines political, diplo- of Western integration. Russia does not matic, economic and military means in draw the line there, and also meddles various global or regional conflicts. In in politics in more distant countries. Its this manner, the regime tries to leave an so-called fight against terrorism is one impression that it plays an important of the most transparent foreign policy role in international politics and that pretexts used in recent years to satisfy without President Vladimir Putin it is its ambition of being a superpower in not possible to resolve global problems. more distant regions. Russia uses the The Kremlin exploits and, if necessary, counterterrorism narrative to strength- leverages conflicts around the world to en its foreign policy position and to increase its influence in various regions establish relations on a political and and undermine international processes security institutional level. While Russia and formats involving the West. seeks to show its readiness for inter- national cooperation by invoking the A central role in Russia’s superpower fight against terrorism, this is a front ambitions is played by maintaining its for acting contrarily to the West, often
RU SS I AN FOR E I G N POL I CY 25 President al-Assad and President Putin in the Hmeimim Air Base in Syria on 11 December 2017 where Putin announced that Russia’s mission in Syria is accomplished. SO URCE: X I NHUA/ S I PA USA/SCANP I X Russia’s role in Syria is currently signif- icant. Using this position, Russia will continue to stake out a more favourable position in international talks in several other conflicts, including on Ukraine flouting international conventions and issues. We can expect that “cooperation agreements. offers” concerning Libya and Syria will In 2018, Russia will continue its oppor- be extended to Europe. In the Persian tunistic foreign policy. It will persist in Gulf, Russia will try to strike a balance its broader opposition to the West and between intensifying cooperation (in- actively oppose NATO enlargement and cluding military) with Qatar and Saudi sow division in the EU. As to countries Arabia’s regional demands. in the region, the Kremlin will continue In Afghanistan, the Kremlin will contin- to oppose NATO enlargement to Fin- ue meddling on the pretext of fighting land and Sweden and also maintain its terrorism. The same counterterrorism efforts against potential enlargement pretext will also continue to be used in the Balkans. In the Western Balkans, in various Central Asian countries, to the Kremlin can be expected to seek preserve or strengthen its role as a closer relations with Republika Srpska guarantor of security and to intervene in in Bosnia and Herzegovina and continue their local politics. influence operations and intervention in internal Montenegrin politics in the run- up to the presidential elections.
26 R U S S I A N FO R E I G N P O L I C Y EXAMPLES OF RUSSIAN MEDDLING In the Western Balkans, Russia is actively trying to hinder NATO enlargement. Although Montenegro’s accession could not be prevented, Russia is attempting to portray the actions of the EU and the US as a failed project and maintain a global superpower image through its historical ties in the region. In Libya, Moscow’s broader goal is to obtain a new ally on NATO’s southern border, whose influence could be used against European countries. Russia has actively supported the Libyan National Army led by Gen. Khalifa Haftar, a force opposing the UN-supported Libyan unity government. Alongside political legitimacy, Russia supports Haftar also in other ways. For example, Russia has repeatedly taken on the printing of Libyan dinars, which are delivered to the cash-poor territories controlled by Haftar. Russia is also maintaining ties with the Libyan unity government, which understands that Russia is equally capable of escalating the conflict as it is of defusing it. In the Persian Gulf region, Russia is trying to undermine the US-led regional security architecture. To do so, Russia is trying to benefit from the frictions between the US and its Arab allies concerning, above all, Iran’s role in the region. Russia has courted the monarchies around the Gulf both economically and politically. It is also preparing arms sale transactions with both Saudi Arabia and Qatar. In the same way, Russia has also repeatedly passed itself off as a so-called neutral peace broker in the Yemen civil war. With these steps, Russia tries to undermine the US’s regional role and simultaneously transform itself into an indispensable negotiation partner in the Middle East.
RU SS I AN FOR E I G N POL I CY 27 In the case of Syria, the Russian narrative trumpets an ongoing fight against terrorism, but the reality is that Russia is there in order to halt a string of defeats for the Bashar al-Assad regime while trying to increase its presence and possibilities to influence developments in the region. In this sense, Russia’s intervention in Syria since 2015 has been successful. Although Iran’s influence in Syria has grown significantly as a result of the conflict, Moscow has managed to reinforce its military presence in Syria. In addition, Russia has succeeded in breaking out of the diplomatic isolation imposed on it due to the Ukraine conflict, achieving a situation where at least in the Syrian issue, Russia can act as an equal counterpart alongside the leading countries and regional forces. Regarding intervention in the North Korea crisis, Russia’s ambition is clear: to become an internationally recognized global actor, and to undermine the role of the US at the same time. Russia is exploiting the conflict to spread a narrative that the US is principally to blame in the North Korea question. Russia volunteers itself as a “peace dove” which prefers diplomatic channels and could possibly broker talks. In Afghanistan, Russia is using counterterrorism rhetoric to justify its activities. Russia is increasing its troop presence under the guise that the American-led coalition is failing in its fight against drug trade and terrorism. Russia maintains contacts with the major parties to the Afghanistan conflict in order to keep its options open for any future scenario. Similarly to its actions in Syria, Russia has also tried to form alternative coalitions and negotiating platforms that undermine the formats established on the basis of international agreements.
28 R U S S I A N FO R E I G N P O L I C Y OUTLOOK FOR THE MINSK AGREEMENTS Russia has only partially achieved its to a greater extent while Russia feigns desired goals in its aggression against commitment to the Minsk accords and Ukraine. Crimea is occupied, the war in diplomatic solutions. These mutually eastern Ukraine continues to destabilize exclusive trends gained particular mo- European security, and Ukrainian socie- mentum in 2017. ty and economy are still vulnerable. But In a situation where Russia’s opposition Russia’s main goal – to draw Ukraine to the West and the ever-deepening into its sphere of influence – is slipping isolation could become permanent, away irreversibly. The Minsk Agree- the Kremlin is attempting to save face. ments, which brought the worst of the The upcoming presidential elections in fighting to a halt in eastern Ukraine, Russia are also forcing Vladimir Putin coupled with Ukrainian resistance and to propose actions that have at least the unanimous pressure from the West, the semblance of being peace-oriented. has kept the fighting to the level of In September 2017, Russia’s president local skirmishes, which no longer poses made a proposal to the UN to send an an existential threat to Ukraine. The armed mission to eastern Ukraine to fighting nevertheless has had a heavy provide protection to the OSCE special human toll. Russia seems unwilling to observer mission operating there. This break it off, but rather uses the violence idea was meant to take the initiative as an instrument to achieve the control out of Ukraine’s hands, as the Ukrainian of Kyiv it yearns for. president had announced a plan prior It has been more than three years since to the UN General Assembly meeting the Minsk agreements were signed. to demand UN peacekeepers be sent to Russia has had many opportunities to the area. Russia’s proposal was noth- bring the conflict to a peaceful solution, ing but an attempt to defer a solution if it wanted to. Instead of cutting off its to the conflict burdening Ukraine. At a proxies in eastern Ukraine and no longer time when the international community equipping and directing the militants, is waiting for true steps to be taken to the Russian administration is playing a resolve the bloody conflict, Russia is only two-faced game. The occupied eastern suggesting solutions that would only Ukrainian areas are being integrated make the conflict more entrenched. Rus- with the Russian economy and society sia apparently sees this as a sustainable
RU SS I AN FOR E I G N POL I CY 29 prospect, as it believes that it can shift the responsibility to various interna- RUSSIAN FOREIGN POLICY tional organizations in a manner that reduces Russia’s accountability while INITIATIVES TO WATCH increasing the status of the self-pro- IN 2018: claimed formations – the Donetsk and Luhansk people’s republics – that »» International initiatives on Ukraine and in undermine Ukraine’s territorial integrity. the Middle East Russia’s calculations are predicated on »» Pressure on Europe regarding Syria and the belief that multiple frozen conflicts Libya on its borders are a manageable strat- egy for the long term and that this will »» Negotiations between warring factions in yield direct political benefits for Russia, Libya giving it an instrument for keeping its »» Activities in Afghanistan justified by the neighbourhood at heel. fight against terrorism However, Russia’s rationale for attack- »» Influence activities in Montenegro and ing Ukraine is increasingly on unstable Moldova before and during elections footing. At the Valdai Discussion Club forum on 19 October 2017, President »» Ever closer relations with Republika Srpska Putin floated a new pretext – the claim in Bosnia and Herzegovina that it was trying to prevent a Srebreni- ca-type tragedy in Donbas. By citing the »» Consolidation of influence in Central Asia goal of avoiding massacres in eastern Ukraine as an excuse for maintaining control of the Ukrainian border, Putin AT A TIME WHEN THE INTERNATIONAL COMMUNITY IS WAITING FOR TRUE STEPS TO RESOLVE THE BLOODY CONFLICT, RUSSIA IS TABLING IDEAS THAT WOULD ONLY MAKE THE CONFLICT MORE ENTRENCHED.
30 R U S S I A N FO R E I G N P O L I C Y The building where the paramilitary representation of the Donetsk people’s republic in Ostrava, Czech Republic was registered until April 2017. SO URCE: G O O G LE M APS once again confirmed what he him- resentation” in Italy was joined by centres self, his diplomats and officials have in Greece and France. The latter one is schizophrenically persisted in denying led by a failed and convicted municipal for many years – Russia controls the politician. In April 2017, the paramilitary occupied areas of eastern Ukraine representation of the Donetsk People’s because it has a specific strategy for Republic in Ostrava, Czech Republic doing so. Yet it is evident that Russia’s (pictured), was closed by court ruling and assessment of the situation – which in December, Russian agent of influence was the grounds for its aggression Johan Bäckman, who had previously against Ukraine – was not even close to claimed to represent the Donbas in reality. Considering Russia’s potential Finland, announced a new representation from the standpoint of security, this had been opened in Helsinki. Such groups conveys a negative message, at least in – although marginal – spread disinforma- Russia’s neighbourhood. tion, originating from the Kremlin via the “Donetsk foreign ministry”, aimed against Examples of manipulations against the Ukraine and the West. As the Donbas West orchestrated by Russia can also separatists’ attempts to imitate diploma- be seen in the phantom representations cy in the West have proved unrealistic, of the eastern Ukrainian separatists – in Russian agents attempt to register the particular the Donetsk People’s Re- representations or NGOs and associate public – in Europe. In 2017, the “rep- them with existing associations.
RU SS I AN FOR E I G N POL I CY 31 ROSNEFT AND GAZPROM AS THE TOOLS OF RUSSIAN FOREIGN POLICY General economic constraints will keep In Serbia, Gazprom uses the same Russia’s foreign policy influence in influence means that it did in Ukraine: check in 2018 as well. The Kremlin has a long-term supply contract has been little money to support governments signed with a monopoly, Srbijagas. This of Moscow’s liking and thus it will rely enterprise is characterized by corrupt on the large state-owned corporations schemes, politicians’ participation in Rosneft and Gazprom. company management and opaque transactions. Through Gazprom, Russia This is risky business – for instance, establishes relationships that make CIS Rosneft’s loans and agreements in countries dependent on Russia. For ex- Venezuela (totalling 6,7 billion EUR) ample, the price of the natural gas sold may end up making a loss if the Ven- to Belarus and Kyrgyzstan is decided by ezuelan government continues on the the Kremlin, like investments into the same economic policy course, which gasification of Kyrgyzstan. The ex- has made what was once the wealthiest penses from this type of foreign policy country in South America insolvent. instrument are borne by Gazprom. Rosneft’s investments (totalling 1,2 The risks assumed by Rosneft and Gaz- billion EUR) in Iraqi Kurdistan, the inde- prom in the state’s foreign policy inter- pendence referendum of which was not ests are compensated by the risk-free recognized by the Iraqi central govern- redistribution of oil and gas exploration ment, are also in doubt. Baghdad has sites in Russia. restored control over the oil fields and has contested the Rosneft deal with the Kurds.
32 R E L AT I O N S B E T W E E N B E L A R U S A N D R U S S I A RELATIONS BETWEEN BELARUS AND RUSSIA President Alyaksandr Lukashenka’s autonomy is dwindling, and although Belarus is stable on the surface, uncertainty is growing in the country. A bove all, the country’s Russian control over Belarusian uncertainty is based on its military capabilities is increasing; the almost full dependence on legal framework is being supplement- Russia. Most of the crude ed to bring the armed forces of both oil imported from Russia is exported countries under a joint command in the from Belarus as refined oil products. case of a threat, and there is deepen- This accounts for almost a third of the ing harmonization of both countries’ budget revenue of Belarus. The 1,6 armed forces and training of units billion EUR loan allocated by Russia at the tactical level, right up to the in 2016–18 is essential for refinancing creation of mixed units. The Belarusian past loans taken by Belarus. Belarus’s armed forces are also equipped with economic dependence gives Russia Russian military equipment, making leverage it can use if necessary to force Belarus technologically and financial- Belarus to take decisions not benefit- ly dependent on Russia for decades ting Minsk’s development. For example, to come. The leaders of Belarus are if oil exports using Latvian and Lithu- interested in inexpensive solutions for anian ports are re-routed to Russian maintaining their armed forces while ports, Russia will assume direct control Russia’s goal in this cooperation is to over Belarus’s petroleum exports. strip the Belarusian armed forces of
R E L AT I O N S B E T W E E N B E L A R U S A N D R U S S I A 33 Belarusian president Alyaksandr Lukashenka and Russian president Vladimir Putin. SO URCE: AP/SCANP I X declining, more and more Belarusians are travelling abroad in search of work, above all to Russia and Poland. In terms of foreign policy, Belarus has attempted to foster the image of a guarantor of regional security, hosting talks on the eastern Ukraine conflict and promoting the Helsinki 2.0 initiative aimed at getting China, Russia, the US and EU leaders behind the negotiating table, looking for new and constructive solutions. Taking part in the Za- their autonomy so that they would be pad-2017 exercise as an ally of Russia crippled in case of a conflict. dealt a significant blow to this image. Belarus’s initiative to invite foreign ob- The protests of spring 2017 showed servers to the exercises did not reduce that if Russia decides to reduce neighbouring countries’ fears related economic support to Belarus – as it to the exercises. The two countries’ temporarily did that year – this will have presidents did not meet in the course of a direct effect on the socioeconomic the exercises, which shows that Russia situation in Belarus. In this situation, does not consider Belarus an equal Belarusian officials were forced to partner. In the run-up to Zapad-2017, find other income sources to fund the the FSB detained a Ukrainian citizen, budget, such as the “social parasites Pavel Grib, on Belarusian territory. This tax” (imposed on people who have demonstrated a direct subordination worked less than six months per year), to the Russian special services and which brought thousands of people to makes one doubt whether the Belaru- the streets in Minsk and the regions. A sian authorities are capable of keeping steep rise in utilities expenses in 2018 developments under control in their will directly hit the wallets of Belaru- own country. In addition to Grib, the sian people. With the standard of living arrests of the Ukrainian journalist Pavel
34 R E L AT I O N S B E T W E E N B E L A R U S A N D R U S S I A Joint exercises are one measure by which Russia increases SO URCE: TASS/SCA NP I X its control over Belarusian military capabilities. Sharoiko and the businessman Alek- After the 2018 presidential election, sandr Skriba are a sign of the country’s Russia will continue applying pressure efforts to please Russia in sowing and increasing control over the Bela- tensions in relations with Ukraine. rusian economy, politics, military and social life, as the complicated situation The common visa space agreement be- in the Belarus economy will increase tween Belarus and Russia means that internal discontent and instability. Once visa policy is essentially placed under again, the sale of strategic Belarusian Russian control. Belarus will essentially companies to Russia and the establish- lose its right to decide on who enters ment of a Russian military base on Be- the country – yet another step in the larusian territory will be on the agenda. erosion of sovereignty. Russia’s decision Street protests would be sparked more to set up temporary border checkpoints by a worsening socioeconomic situation on the Belarus-Russia border in spring than calls from the fragmented oppo- 2018 and intensify checks on the roads sition. and railways should also be seen as pressure on Belarus. Should the visa The demise of the sovereignty of issue be resolved, some other topic Belarus would reinforce Russia’s sphere would come up immediately, such as of influence in the proximity of Central infiltration of terrorists from Belarus Europe. to Russia or growing cross-border smuggling, which would be prevented by more effective border controls.
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