Tuesday, December 13, 2011
The first two are probably familiar to most readers of Flares, but the circumstance of the third -- Russian membership in the WTO might not be as well known.
As a possible carrot the U.S. is dangling Russian membership in the WTO, which is of political if not economic significance to the Russians. The problem is once Russia is voted in each member country of the WTO has to then recognize Russian membership and the U.S. is prevented from doing that by law by the Cold War era Jackson-Vanik Amendment.
Congress could repeal the amendment, but there is no certainty, considering the frosty relationship between Obama and the Republicans in Congress, that such a repeal would come quickly and without strings Obama would accept. It seems like ham-handed diplomacy of Obama's part to have gone down that path without first clearing up the Jackson-Vanik Amendment issue.
For the article's Hot Stratfor Babe I looked for an actress that played a Russian villainess in a film and so naturally Lotte Lenya, who played Rosa Kleb in From Russia with Love, was the obvious selection for the honor.
Granted, Rosa Kleb and hot babe don't exactly go together, plus the German Kleb was a member of SPECTRE and not a Russian in the film, but you're just going to have to cut me some slack with this choice.
Ms Lenya was also a singer, so as a bonus video after the article I've included her singing Mack the Knife in the original German version of the song which was written by her husband Kurt Weill.
Russia's Plan to Disrupt U.S.-European Relations
By Lauren Goodrich, December 13, 2011
Tensions between the United States and Russia have risen in the past month over several long-standing problems, including ballistic missile defense (BMD) and supply lines into Afghanistan. Moscow and Washington also appear to be nearing another crisis involving Russian accession to the World Trade Organization (WTO).
The crises come as Washington struggles over its many commitments in the world and over whether to focus on present events in Afghanistan or future events in Central Europe. Russia has exploited the U.S. dilemma, using its leverage in both arenas. However, if Moscow takes its aggressive moves too far, it could spark a backlash from the United States and Central Europe.
The Persisting Disagreement over BMD
The U.S. BMD scheme for Europe has long been a source of U.S.-Russian tensions. Washington argues that its European BMD program aims to counter threats emerging from the Middle East, namely Iran, but its missile defense installations in Romania and Poland are not slated to become operational until 2015 and 2018, respectively, by which time Russia believes the United States will have resolved its issues with Iran. Moscow thus sees U.S. missile defense strategy as more about the United States seeking to contain Russia than about Iran. Moscow does not fear that the United States is seeking to neutralize or erode Russia’s nuclear deterrent, however; the issue is the establishment of a physical U.S. military footprint in those two states — which in turn means a U.S. commitment there. Romania and Poland border the former Soviet Union, a region where Russia is regaining influence.
Russia previously pressured key states in the Bush-era BMD scheme, such as Poland and the Czech Republic, to reconsider acceding to such plans. This assertiveness peaked with its 2008 invasion of Georgia, which both proved that Moscow was willing to take military action and exposed the limits of U.S. security guarantees in the region. The Russian move in Georgia gave the Central Europeans much to think about, prompting some attempts to appease the Kremlin. Still, these states did not abandon all faith in the United States as a strategic counter to Russia.
Russia has since shifted its BMD strategy. Instead of categorically opposing the plan, Moscow proposed a cooperative, integrated scheme. The Kremlin reasoned that if Iran and other non-Russian threats were the real reason for expanding missile defense, then Russian involvement — which would strengthen the West’s defenses — would be welcomed. Russia’s BMD capabilities span the Eurasian continent, though their practical utility to and compatibility with U.S. systems is questionable. This plan was seen as a way to take a more conciliatory approach with the same end goal: blocking the placement of U.S. troops in Eastern Europe.
The United States and most of NATO refused Russia’s proposals, however, leaving the door open for the Kremlin to introduce a new defense strategy, which Russian President Dmitri Medvedev outlined Nov. 23. Medvedev emphasized that Russia had exercised the “political will” to open a fundamentally new chapter in relations with the United States and NATO, only to have the United States spurn the offer. U.S. resistance to Russian inclusion in the BMD system forced Moscow to make other arrangements to counter U.S. plans in Central Europe — precisely the outcome it had hoped for.
Medvedev also said that if the United States continues to refuse BMD cooperation with Russia, Moscow would carry out plans for the deployment of the Iskander mobile short-range ballistic missiles and the activation of an early-warning radar system in Kaliningrad, a Russian exclave on the Baltic Sea that borders NATO members Poland and Lithuania. He said Russia also would consider the deployment of other Iskander systems, particularly along his country’s western and southern borders, and would hasten to fit its ballistic missiles with advanced maneuverable re-entry vehicles and penetration aids, a process that has long been under way. The prospect of Russian strategic weapons targeting BMD facilities was also raised. Medvedev added that more measures could be implemented to “neutralize the European component of the U.S. missile defense system,” concluding that all these steps could be avoided in favor of a new era of partnership between the United States and Russia if Washington so desired.
The U.S. Dilemma
The United States was expected to respond to Russia’s renewed strategy during the Dec. 8 meeting between NATO and Russian foreign ministers in Brussels. U.S. Secretary of State Hillary Clinton avoided doing so, however, reiterating that the BMD scheme was about Iran, not Russia. Clinton’s move highlights the dangerous U.S. position with regard to Russia. Washington has no intention of abandoning its commitment to Central Europe in the face of a resurging Russia, but commitments elsewhere in the world may prevent the United States from resisting Russia in the short term.
At present, Washington is struggling to halt the deterioration of relations with Pakistan, which have reached a new low after a U.S. helicopter strike on the Afghan-Pakistani border killed some two dozen Pakistani servicemen. After the strike, the Pakistanis forbade the shipment of fuel and supplies for the NATO-led war effort in Afghanistan across the Pakistani border, leaving the United States and its allies wholly dependent on the Northern Distribution Network, at least temporarily. Moscow used this as an opportunity to remind Washington that it could cut this alternative route, leaving NATO and the United States in a catastrophic position in Afghanistan — a move tied directly to Russia’s negotiations over missile defense. [continued after the jump]
While Russia has used previous threats against U.S. interests, such as increased support for Iran, as leverage in its BMD negotiations, its present threat marks a new dynamic. Washington called Moscow’s bluff on its threatened support for Iran, knowing Russia also did not want a strong Iran. But it cannot so easily dismiss the specter of interrupted supplies into Afghanistan, as this puts more than 130,000 U.S. and allied troops in a vulnerable position. Consequently, the United States must work to mitigate the BMD situation.
American Olive Branch or New Crisis?
In recent months, the United States has cultivated one potential olive branch to defuse short-term tensions. Previously, there was little the United States could offer Russia short of abandoning U.S. strategy in Central Europe. When tensions escalated in 2009 and 2010, the United States offered to facilitate large economic deals with Russia that included modernization and investment in strategic sectors, mainly information technology, space and energy. Since Russia had just launched its sister programs of modernization and privatization, it jumped on the proposal, reducing tensions and eventually joining U.S. initiatives such as sanctions against Iran. Now, the United States is extending another carrot: WTO membership.
Russia has sought WTO membership for 18 years. Even though it has the 10th largest economy in the world, it has failed to win accession to the 153-member body. Though the country’s extreme economic policies have given members plenty of reason to exclude Russia, the main barriers of late have been political. For its part, Moscow cares little about the actual economic benefits of WTO membership. The benefits it seeks are political, as being excluded from the WTO made it look like an economically backward country (though its exclusion has given it a convenient excuse to rail against the United States and Georgia).
As Russia sorted through its economic disputes with most WTO members, Georgia alone continued to block its bid because of the Russian occupation of the disputed Georgian territories of Abkhazia and South Ossetia. In recent months, Georgia has dropped its opposition under U.S. pressure — pressure that originated from Washington’s need for something to offer the Russians. With all obstacles cleared, the WTO should approve Russia’s candidacy Dec. 15-16, apparently giving the United States the olive branch it sought.
Unfortunately for the United States, however, once Russia is voted in, each member-state must “recognize” Russia as a member. No WTO members, not even Georgia, have indicated that they intend to deny Russia recognition. But there is one country that cannot legally recognize Russian membership: the United States.
The United States still has a Soviet-era provision in federal law called the Jackson-Vanik Amendment, which bars trade relations with certain countries guilty of human rights violations (namely, the Soviet Union). The measure continued to apply to Russia after the Soviet collapse, though every U.S. president has waived its provisions by decree since 1992. Only Congress can overturn it, however, and until it does so, the United States cannot recognize Russia as a WTO member.
The White House has called for the provision’s immediate repeal, but with Congress and the White House divided over so many issues, it seems unlikely the issue will be resolved swiftly — if at all — under the current Congress and presidency. This gives Russia another opportunity to increase U.S.-Russian tensions. Indeed, Moscow could noisily decry the insult of the United States making Russian WTO accession possible only to derail it.
Balancing Crisis and Strategy
Just how many crises in U.S.-Russian relations does Moscow want, and what is its goal? Moscow’s strategy involves using these crises with the United States to create uncertainty in Central Europe and to make the Europeans uncomfortable over perceptions that the United States has forced Russia to act the way it is acting. Thus, it is not a break between Russia and the United States that Moscow seeks but a break between Europe and the United States.
Indications are emerging that the Central Europeans are in fact growing nervous, particularly following Medvedev’s new defense strategy announcement. With the United States not responding to the renewed Russian aggression, many Europeans may be forgiven for wondering if the United States is planning to trade its relationship with Central Europe in the short term to ensure the supply lines via Russia into Afghanistan remain open. It is not that the Central Europeans want a warmer relationship with Russia, only that they may feel a need to hedge their relationship with the United States. This was seen this past week with Poland announcing it would be open to discussions with Russia over missile defense (albeit within the paradigm of separate BMD systems), and with the Czech Republic, a previous American missile defense partner, signing multibillion-dollar economic deals with Russia.
But with more opportunities arising for Russia to escalate tensions with the United States, Moscow must avoid triggering a massive crisis and rupture in relations. Should Russia go too far in its bid to create an uncomfortable situation for the Europeans, it could cause a strong European backlash against Russia and a unilateral unification with the United States on regional security issues. And it is in Russia’s interest to refrain from actually disrupting the Northern Distribution Network; Moscow is seeking to avoid both complications in the Afghan theater that could hurt Russian interests (one of which is keeping the United States tied down in Afghanistan) and a strong U.S. response in a number of other areas. Moscow must execute its strategy with precision to keep the United States caught between many commitments and Europe off balance — a complex balancing act for the Kremlin.
Russia's Plan to Disrupt U.S.-European Relations is republished with permission of STRATFOR.