Select Committee on European Union Minutes of Evidence


Memorandum by Sir Roderic Lyne

  The political relationship between Russia and the West is at its lowest point for two decades.

This could become a "confrontation", but is not one yet. Neither side is deliberately seeking to confront the other. Relations in areas outside high politics remain generally constructive and friendly. The growing economic interdependence of Russia and the EU is a powerful constraint, including in the energy sector.

  The current animosity stems partly from events, partly from reasons internal to Russia, and partly from the inability of Russia and the West to understand each other.

  Russian reformers in the early 1990s had wildly unrealistic expectations of the speed with which Russia might be integrated into the West. They now feel let down and rather bitter. The current Russian leadership for the most part does not understand, and does not wish to understand, Western processes. It has no experience of living under the rule of law or the separation of powers; and, sometimes wilfully, it misinterprets Western actions.

  We in the West had equally unrealistic expectations about the speed of change in Russia. We tried to assist the transition, but failed to appreciate how deeply humilitating, painful and destabilising the 1990s were for the Russian people.

  There are disappointed expectations on both sides—what Solzhenitsyn has called "the clash of illusory hopes against reality".

  Russia is going through a negative or revisionist cycle in a long process of transition. It is not the end of the transition; but we must wait for 10 to 15 years before the first generation of post-Soviet leaders comes to power in Russia.

  The economy is now a market-based system. Thanks to high oil prices, but also to sound macroeconomic management and rising domestic demand, it has been through a seven-year boom. The expansion of Kremlin-controlled conglomerates is regressive. More difficult times lie ahead—but a few years hence this may bring the economic liberals out of hibernation and lead to a new drive to modernise the economy. A new generation of Russians engaged in business and a growing middle class look like the most likely agents of change in the country.

  Politically, Russia has yet to develop a new model. Gorbachev and Yeltsin gave Russians freedom—and Russians still enjoy wide personal freedom, although some constraints have recently returned. But democracy barely started in Russia. For the past few years the Kremlin has been focusing on control. There is at the moment no political development. But there will need to be: a huge country dependent on a single institutional and a single personality is not stable. As President Putin recently said: "We cannot build Russia's future by tying its many millions of citizens to just one person or group of people. We will not be able to build anything lasting unless we put in place a real and effectively functioning multi-party system and develop a civil society that will protect society and the state from mistakes and wrong actions on the part of those in power".

  The third, and most difficult, facet of the transition has been Russia's adjustment to its new status as a smaller and less powerful country than the Soviet Union. Other former Great Powers and Empires, including the United Kingdom, have found this a long and painful process. It has been much more difficult for Russia because the collapse happened without warning; the empire was contiguous; and territories which were regarded as part of the Russian heartland—most of Ukraine and Belarus and Northern Kazakhstan—suddenly became independent. It takes much more than half a generation to come to terms with this—on both sides of the divorce.

  In its Common Strategy of 1999, the EU said that it was seeking to build with Russia "a genuine strategic partnership, founded on common interests and shared values". Similar language is to found in the 1997 Partnership and Cooperation Agreement and the 2004 Road Map for the Common Pace of Freedom, Security and Justice".

  These aspirations have not become reality. We have a conflict of values, for example over the rule of law, which inhibits strategic partnership. Our interests converge in some areas—such as counter-terrorism, WMD proliferation, the environment, trade and investment—and diverge in others. They diverge most strongly in the arc of states from the Baltic through Belarus, Ukraine and Moldova to the Caucasus. These are substantive differences between Russia and the West.

  The anti-Western mood in Russia is also being played up for reasons of internal politics. The idea that Russia is besieged and encircled by malign forces is a useful device for binding the nation, deflecting blame, justifying central control and the reinvigoration of the organs of internal security, and discrediting external criticism.

  How should the EU and the West respond to this?

    —  We need to recognise that this a phase which will last for several years, but not for ever. Events within Russia will determine the country's future course. Our influence is not zero, but it is marginal.

    —  We need to develop a shared analysis and better understanding within the EU. The process of debate and analysis within Europe is weak and fragmented.

    —  Founded on that shared analysis, the EU urgently needs stronger policy coordination and a common approach towards Russia.

    —  The common approach should be based on clear principles, including that the EU:

    —  opposes a new division of Europe and seeks to dismantle barriers;

    —  wants to see Russia strong, stable, prosperous and modern;

    —  acknowledges Russia's right to defend its own interests and pursue its own independent policies within the parameters of international law and of the sovereign rights of other states;

    —  seeks to promote harmonious and stable relations between Russia and all of her neighbours and the peaceful settlement of disputes;

    —  is not seeking to expand its influence at the expense of Russia, but will oppose any encroachment on the sovereign rights of any European state; and

    —  will defend its own interests and values robustly where they are challenged.

  In practical terms, the EU should for the time being shelve the concept of "strategic partnership". It is premature. It is not what the Russians want. A grandiose new Partnership and Cooperation Agreement would be inappropriate. But, if and when Russia joins the WTO, a Free Trade Agreement would be a practical step forward.

  We should also reject the concept of "neo-containment" favoured by some in the United States. It is based on the wrong analysis. Isolating Russia is entirely the wrong approach.

  We shuld instead aim for "neo-engagement", ie:

    —  Partnership and cooperation on specific strategic issues—where this is possible. There are many such issues.

    —  Support for the further development of trade and investment.

    —  To the greatest extent possible, we should sustain the flow of information, educational and cultural exchanges, and every form of human contact.

    —  We should seek to invest in the next generation.

  In the energy sector, Russia and the EU have a clear mutual interest in sustaining cooperation. The EU is almost the only profitable market for Russian gas exports. However, given doubts about Russia's ability to raise production and her use of energy as a political instrument, the EU clearly needs to diversify its sources of supply, to avoid deeper dependence on Russia, and to develop an efficient internal market.

  Finally, during this difficult period, the EU and NATO need to manage areas of disagreement with Russia in a way which protects Europe's legitimate interests but does not tip us into real confrontation. These issues include Kosovo, Georgia, Ukraine, Iran missile defence, and the future of the INF and CFE agreements. Handling that agenda will be no easy task.

25 October 2007


 
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