Saturday, 26 March 2022

Mr Biden is in Europe

Joe Biden’s urgent travel to Europe

Victor Ângelo

 

The American President is in Europe on an exceptional and urgent basis, which shows the gravity of the current crisis caused by the backward, criminal and imperialistic politics of Vladimir Putin. Regardless of the results of the meetings in which Joe Biden took part, at NATO, at the G7 and at the European Council, I see three central objectives in his trip, which seek to respond to the continuous worsening of the situation in Europe.

First, to send a crystal-clear message about the US commitment to the defence of its European allies. This warning is particularly relevant at a time when hostile rhetoric against Poland is beginning to be heard in Moscow. Dmitry Medvedev this week published a frontal attack against the political leadership of that country - and these things do not happen by chance. They are usually part of a plan of confrontation, which at an early stage seeks to create unrest within the targeted population, undermine the authority of its political class, and simultaneously format Russian public opinion itself. Thus, Biden's trip to Warsaw, after Brussels, is part of the American message. To think that Putin excludes the possibility of entering into an armed conflict against an EU or even NATO country would be a mixture of naivety and thoughtlessness. We are, unfortunately, in a spiral where anything can happen. The American umbrella needs to be recalled in an obvious way. Biden's visit serves that purpose.

A second purpose is surely related to deepening sanctions against Russia, while at the same time trying to avoid dissension among European leaders. The subject, namely regarding gas and oil, is very sensitive. Several European countries have expressed strong reservations, not to say opposition, to a possible suspension of energy imports. A few days ago, the German Chancellor again stated that such a measure would cause a deep recession throughout Europe. But now, with Putin deciding that these imports will have to be paid for in roubles, at whatever exchange rate he wants to set, the embargo becomes a pressing issue. There can only be one acceleration in that direction.

Thirty days after the start of military aggression and escalating acts of war, the approval of a new far-reaching sanctions package cannot be brushed aside. Europeans must accept that the risk coming from the Kremlin is very high and does not only concern Ukraine. It is essential to weaken as much as possible the economy that feeds the Russian war machine. This will naturally entail costs for us. But the biggest cost, growing and permanent, is keeping Putin in power. At the point where things have reached, it is becoming increasingly difficult to imagine a peaceful future in Europe with the current Russian regime. Our peaceful coexistence depends on the democratization of Russia, something that is up to its citizens to resolve.

A third objective relates to the need to speed up material aid to the Ukrainian defence effort. The US has just approved $1 billion in defensive equipment and weaponry. This assistance needs facilitation from the Europeans so that it can reach its destination as quickly as possible. Moreover, it must be accompanied by additional means from European countries. On the eve of the Brussels meetings, the EU announced an additional military contribution of 500 billion euros. The provision of all this is extremely urgent. Resistance to invaders, which is an act of legitimate defence, is done with courage and sophisticated means. 

It pains me to have to write a text like this. But let's be clear: there is, I repeat, a risk of armed confrontation in our part of Europe. To avoid it, we must provide unreserved support for Ukraine, be strategic, and firm in our economic, financial, and political responses against Putin, and be ready to accept sacrifices. In short, the moment demands vision, realism, determination, subtlety, truth, and the availability of means.   

(Automatic translation of the opinion piece I published in the Diário de Notícias, the old and prestigious Lisbon newspaper. Edition dated 25 March 2022)

 

 

Saturday, 19 March 2022

Russia and the rest

Five theses around the crisis with Russia

Victor Angelo

 

1. It is not acceptable to make political gains based on violating international law. Vladimir Putin and the Russian regime have attacked the sovereignty and territorial integrity of Ukraine by starting a war, in flagrant violation of the United Nations Charter. Therefore, they have no authority to impose conditions on the country that is the victim of this violence. In today's world, force cannot be a source of rights. Therefore, following the condemnation by the United Nations General Assembly on 2 March, the immediate withdrawal of invading troops from all Ukrainian territory must be demanded. And to insist on this, even when recognising the reality on the ground and the need to negotiate with the invaders. I should add, given the seriousness of the aggression and the possibility of future threats, that the best solution for guaranteeing peace, now and in the future, involves the political defeat of Putin. Here, sanctions count for a lot. They must be as focused on political impact as possible. The EU cannot continue to transfer nearly 700 million euros to Russia every day in payment for gas and oil imports. European leaders must be able to explain to their fellow citizens that tomorrow's peace and tranquillity require sacrifices in the present.  

2. The protection of civilian populations in a situation of armed conflict is an absolute priority. International humanitarian and human rights rules, generally referred to as the Geneva Conventions and their Additional Protocols, are clear: all parties have an unconditional duty to safeguard the integrity of civilian populations and property. This includes hospitals, humanitarian convoys, cultural assets, and residential areas. The first guarantor of this duty is the UN Security Council. In the specific case of Ukraine, a draft resolution on this matter, proposed by a member other than Russia, should be put to a vote in the Council. It is obvious that Russia would use its veto. But the draft would also have the merit of putting pressure on China.

3. No-fly zone: the imposition of a no-fly zone contributes effectively to the protection of civilians. Under normal conditions, a decision of this kind should be taken by the Security Council, as part of the motion on the security of populations. If it is decided by a coalition of states alone, outside the Council, it will always be seen as a declaration of war by the country targeted by the ban. Thus, if the decision were to come from NATO, we would immediately enter into a direct conflict between our side and the Russian side. That is why NATO decided to respond with a categorical no to this request, made insistently by President Zelensky and repeated daily by some European political personalities, who seem to ignore the consequences of the issue. It is true that a small group of countries could declare, without going through NATO, the exclusion from Ukrainian airspace. But this is not a viable option. 

4. China must get out of its ambiguity and false neutrality and translate its grand declarations of principles into action. Communication with the Chinese leadership must be maintained. The US National Security Advisor, Jake Sullivan, had a long meeting in Rome with the Chinese top foreign affairs official, Yang Jiechi. There was much disagreement, but both sides recognised the importance of keeping the lines of contact open. Europe's leaders should do likewise and be in continuous liaison with President Xi Jinping. The alliance between Xi and Putin must be weakened. This is possible. It is essential to strike a very sensitive chord in China, that of territorial integrity and respect for the sovereignty of each State. And to insist on the defence of multilateral institutions, an area where China wants to be a champion, at a time when the Kremlin is undermining the credibility of the UN. But, above all, it would be a question of combating the idea that prevails today in Beijing and which believes that the defeat of Putin would weaken Xi's power, in the year in which the 20th congress of the Chinese Communist Party is being prepared. Rather, it must be shown that Putin's continuation damages the international image of his main ally and adversely affects the economic prosperity of all. China holds one of the keys to solving the Russian crisis.

5. The geostrategic paradigm has changed. It is no longer relevant to look at international relations on the basis of the framework of analysis constructed in the last thirty years, in the period following the Cold War. Geostrategy now has a strong human dimension. It is no longer just about defending the state, the regime and securing zones of influence. People, their individual and collective security, their physical and spiritual integrity, have become part of the equation. Alliances between states must be based on ethical principles and values that respect citizens and allow them to be free and to live in peace, without fear or blackmail of war, and without hypocrisy.

(Automatic translation of the opinion piece I published in the Diário de Notícias, the old and prestigious Lisbon newspaper. Edition dated 18 March 2022)

 

Saturday, 12 March 2022

China, European Union, Ukraine and Vladimir Putin

Where is China's leadership?

Victor Angelo

It took 12 days of aggression against Ukraine for Xi Jinping to come down to earth and discuss his reading of the crisis with Emmanuel Macron and Olaf Scholz. The day before, his foreign minister, Wang Yi, had organised a long press conference focused on the same subject.

Analysing these two speeches, I get the impression that Beijing wants to please Greeks and Trojans, i.e., the Europeans of the EU and the regime of Vladimir Putin, and to escalate the rhetoric against the US. Xi sought to encourage dialogue between the Europeans and the Kremlin, as well as to create a fault line between the European and American positions. This is how the Chinese initiative can be summed up.

Above all, Xi's aim is to project an image of composure and serenity, in defence of the multilateral system and of peace. He wants to appear as the great apologist for international principles, while the Americans should be seen as the instigators of conflicts, including the one now being suffered in Ukraine. China would be mainly concerned with the promotion of international cooperation - the word cooperation was mentioned more than 80 times in Wang's speech - development and the prevention of large-scale humanitarian crises.

All this is an exercise in style in the realms of propaganda and ambiguity. China needs to maintain a very close relationship with Russia. They are two big neighbours, with various complementarities, beyond the immense geographical continuity. Beijing imports raw materials extracted in Russia – oil represents about 60% of total imports coming from Russia – and provides an outlet for its neighbour's economy. Most important of all, it sees the US as a common enemy. Geography brings the two countries together and geopolitics unites them. It is, however, a fragile union: it is fundamentally based on the wills of Xi and Putin. It has no solid popular expression, because each people have their own cultural framework, without shared roots or references.

And China knows how to calculate too: in one year, trade with the EU exceeds USD 800 billion, while with Russia it is much lower, at USD 105 billion. This figure roughly equals the annual trade between China and the Netherlands. Politically and economically, Xi Jinping depends on an open and friendly European market. For the Chinese leader, international trade is essential to maintain the pace of growth in living standards for his citizens. This has to do with his continuity in power. It is the key argument to justify his legitimacy and absolute authority.  

The fact is that the Chinese leadership does not support the military assault that Putin has ordered against Ukraine. For what I write above, and for three other reasons. First, because it flouts two of the fundamental principles of Chinese foreign policy, that of the inviolability of national borders and non-interference in the internal affairs of other states. Secondly, it destabilises European economies and puts them at risk of a deep crisis. Third, it reinforces the role of the USA in NATO and its influence in Europe.

However, Xi Jinping does not think it prudent to criticise, or even talk to Putin now. He prefers to go through Macron and Scholz and advise them on a dialogue with the Kremlin, pretending not to see that this path is currently blocked. Putin does not listen to the European leaders.

Faced with the Ukrainian resistance against the invaders, Putin is determined to repeat what other dictators have done throughout history: expand the use of armed force, including the bombing of civilians - a war crime - and the siege of cities, in the old medieval style. Xi Jinping knows the costs of this kind of criminal folly. It is what prompted him to contact Europe's leaders. He should show that his words about the value of multilateralism and diplomatic negotiations make sense and move with clarity in the UN Security Council and with his partner Putin. Only then can he be taken seriously. 

(Automatic translation of the opinion piece I published in the Diário de Notícias, the old and prestigious Lisbon newspaper. Edition dated 11 March 2022)

 

 

Monday, 7 March 2022

Talking of mediation: who could it be?

Vladimir Putin's Pandora's box

Victor Angelo

 

The last two years have been exceptional times of great concern at the global level. The truth is that we were not prepared to face challenges of this magnitude and that were added to the very complex - and vital - problem of climate change.

First was the pandemic, which remains a huge challenge, especially for countries with fewer resources and extremely fragile public health systems.

With this backdrop still part of our horizon, a second factor of enormous instability has now emerged and which, like Covid-19, should contribute to reconfiguring the future of our societies and international relations. This factor has its point of origin in Vladimir Putin's inexplicable, anachronistic, and illegal decision to declare war on the people of Ukraine.

The Russian dictator has opened a Pandora's box. One must be aware of this. And now even hope seems to have come out of the box and to be drifting. Russia's own foreign minister, Sergei Lavrov, who is now visibly behaving like a lackey of his master, has himself added fuel to the collective sense of anxiety. On Wednesday, speaking of the sanctions that have been imposed on his country, the minister said that the response could be a third world war. And he stressed that it would be "a devastating nuclear war".

Many will think that this is just talk, to raise the stakes, that is, to get Ukraine destroyed and guard the rubble, put pressure on the West, gain strategic weight and avoid a new wave of sanctions.

I for one am one of those who take these bravadoes very seriously. The measures taken against Putin and the circles that support his power are extraordinarily far-reaching, close to a declaration of hostilities. The impact in the areas of the economy, finance and domestic policy will be enormous. In the face of this, the Kremlin's response may be economic, beyond bans on the use of airspace, the transit of goods from China, visas, etc. But I fear that Putin does not consider such retaliation sufficient. He may want to show that Russia is not playing softly, that it is neither Iran nor Venezuela.

As I have written here before, we have reached a very dangerous turning point.

The only reasonable solution would be a diplomatic effort of good offices - understanding that a solution needs to be found that guarantees Ukraine's independence, but also accepting that there is much more at stake than that. The UN and its Secretary-General should be the key players in this initiative. It is part of their remit, and they should dare. But I don't see a chance, Putin would not accept such mediation. For him, the UN is just a secretariat, a structure at the service of the states, but without equal status and below them. And Guterres is now presented in Moscow as an agent of the Americans. 

Mediation would have to be undertaken by a state accepted by all the parties. If the issue were only between Russia and Ukraine, I think the possibility that China could play that role should not be ruled out. Even taking into account that the Chinese anti-American rhetoric has escalated in the last two or three days. Today, given the complexity of the crisis, it would be preferable for mediation to be done by a tandem, or even a triumvirate, of countries. For example, China, France and another country that has the confidence of Europeans and Americans but is independent from NATO and outside the European arena. What might that be?

Having said this, I would like to make it clear that I do not have much faith in the possibility of mediation. I would prefer a palace coup. That might be the solution. But officially we must insist on the diplomatic route. The crossroads we are at is very clear: either there is diplomacy or there is a strong possibility of large-scale confrontation, suffering and chaos. It is up to each one to take responsibility for their choice and, in the end, to pay the bill, starting with Vladimir Putin.

(Automatic translation of the opinion piece I published in the Diário de Notícias, the old and prestigious Lisbon newspaper. Edition dated 5 March 2022)

 

 

 

Thursday, 3 March 2022

Russia and Ukraine: a fast worsening tragedy

Putin and us: from bad to worse, danger!

Victor Angelo

 

We are now in a new, much more dangerous stage of the crisis started by Vladimir Putin about a week ago. The sanctions adopted by the EU countries and their allies, the placing on alert of the Russian nuclear deterrent forces, the entry of Belarus into the confrontation by abolishing its nuclear neutrality, and above all the large-scale expansion of military aggression against Ukraine, including the attack on civilian targets, all lead to a worsening of the tension between Putin and our part of the world.

The moment demands maximum prudence. Military aid to Ukraine, for example, should be provided without grandiloquent declarations. We must help, but without adding fuel to the fire of rhetoric, without giving the enemy the opportunity to use our words to justify themselves to their public opinion and to escalate further. This is my message to Ursula von der Leyen and the other European leaders.  

The time also demands absolute firmness in applying the economic and financial sanctions that were decided this weekend. 

The SWIFT issue is particularly important. Even without including Russian gas and oil. The lessons I draw from recent past cases - North Korea, Venezuela, and Iran - reveal that a large part of the sanctioned country's foreign trade is suspended. The impact on GDP and the day-to-day running of the economy is enormous. The international payment system ceases to function, and alternatives are few and far between. Trade, which today sustains the standard of living of citizens, is drastically reduced.  

This is how it will happen now. Russia recently set up a system independent from SWIFT, but the number of banks involved is no more than a couple of dozen. And those banks, when faced with the exclusionary measures now decided upon, will certainly hesitate about transactions with Russia, for fear of the associated penalties and restrictions. The safest thing, in business terms, is to stop having banking relations with the Russian system.

Even more important is the decision to block many of the operations of the Central Bank of Russia. Putin was counting on the $630 billion that this bank has as reserves in foreign currency and gold bullion. The problem is that a good part of these reserves - at least 50% of the total - is deposited in other central banks, in countries that have now adopted the sanctions regime. In Japan, Germany, France, the US, the UK, Austria. Access to these deposits is frozen. 

In addition to these reserves, the Central Bank of Russia holds gold bars in its vaults to the tune of 3300 tonnes. It may try to sell a good part of them. But with the sanctions in place, the buyers, even if they are Chinese, will face a great risk when they later try to market this gold. So they will only buy the bars if Russia offers a discount from the current market value, a discount that could be around 30% or more. Thus, what would be worth around 190 billion US dollars under present conditions could, at most, raise 130 billion US dollars. 

These sanctions will lead to a continued devaluation of the national currency, the rouble, which has already lost about 30% against the dollar. They will also destabilise the operation of the country's commercial banks. We are entering into what I would call the "Venezuelisation" of the Russian financial system. Now, this has huge political costs. The European narrative must be able to explain to the Russian population what is behind all this: Vladimir Putin's irresponsible and criminal policy. 

The sanctions are already contributing to the country's international isolation. Dictators don't like to be pushed to the wall and don't like dead ends. This explains the new level of brutality in the offensive against Ukraine. Putin needs a military victory without further delay, even at the cost of war crimes. He thinks that from then on, he will be able to negotiate more forcefully with the Europeans and the Americans. We must tell him that he is utterly mistaken. 

(Automatic translation of the opinion piece I published in the Diário de Notícias, the old and prestigious Lisbon newspaper. Edition dated 2 March 2022)