Russia and the European Union: dialogue is one of three key dimensions

Russia Must Listen to the European Union
Victor Ângelo

Today, 21 November, was meant to be the day when American sanctions against Rosneft and Lukoil, two giant Russian conglomerates in the oil and gas sectors, would come into effect. This decision by President Donald Trump, taken a month ago, was recently amended with respect to Lukoil. The company now has until 13 December to sell its foreign assets and until April next year to cease all activities in Bulgaria. Several firms are interested in purchasing the assets in question, but transactions can only be finalised once approved by the Trump administration.

Lukoil, a privately owned company listed on stock exchanges, is a global colossus. Most of its operations take place outside Russia. The profits and dividends it generates weigh heavily on the Russian economy. The decision taken by Washington puts Lukoil’s survival in jeopardy.

For its part, Rosneft, a company controlled by the Kremlin, is the largest contributor to the budget of the Russian Federation. Should the sanctions become effective, they will have a significant impact on the country’s public finances.

The question that remains unanswered, for now, is clear: will the loss of revenue and the resulting budgetary imbalances be enough to convince the Kremlin that there is an urgent need for peace negotiations? That is Trump’s intention. My experience tells me that such an outcome is unlikely. Sanctions, by themselves, tend to have a slow impact on the policies they aim to change.

Nevertheless, I support the application of sanctions against regimes that act outside international law. In this particular case, it is about significantly reducing the financial base and other means that enable Russia to continue its unacceptable aggression against Ukraine. It is also about sending a strong political message of absolute condemnation.

There are no conditions for the United Nations Security Council to approve any package of sanctions targeting Russia. That would, in principle, be the appropriate process. Since it is not possible, each State must decide on the restrictions and pressure it is prepared to exert. However, it must respect humanitarian principles – sanctions must not endanger the lives of citizens in the targeted country – and the sovereignty of third States. They should also aim to contribute to resolving the crisis or conflict, and in this case, to stopping the unjustifiable war for which Russia is responsible.

In my view, neither a ceasefire nor peace are part of Vladimir Putin’s immediate plans. On the contrary, it seems we will continue to witness the intensification of destruction and death in Ukraine, sanctioned by Russia. The Kremlin is betting on war and is convinced it will eventually subjugate Ukraine. The information coming from Moscow indicates that Putin listens less and less to diplomats, including Sergey Lavrov. His main advisers come from the political police apparatus and the economic sphere. Consider who will represent him at the G20 summit this weekend in South Africa: not the Foreign Minister, Lavrov, but the Deputy Chief of the Presidential Executive Office, Maxim Oreshkin. He is an apparatchik with a background entirely linked to the management of the national economy. Concern for economic stability is a priority for Putin. This confirms the importance of sanctions in the economic and financial sectors.

Putin dreams of a victory that will see his name included in the history books of “great and holy” Russia, as he likes to say. His statements, endlessly repeated by the group that controls power and the media in Moscow, reveal a leader who only accepts negotiations with the great powers of the world – Donald Trump and Xi Jinping. The others are seen as minor players, of no value in the international geopolitical chess game. Putin does not wish to waste time in dialogue with European leaders.

The EU must respond on three fronts: maintain aid to Ukraine, rigorously apply the sanctions already approved, and show readiness to begin a serious process of talks with Russian leaders.

With regard to negotiations, my suggestion is simple: António Costa, as President of the European Council, must receive a mandate from the Member States granting the necessary authority to make contact with Putin. His office would then seek to establish lines of communication with the Kremlin, in order to convince the Russians that a cycle of talks between Putin and Costa could be beneficial for both parties and vital for the internal interests of the Russian Federation, as well as for peace in Europe.

There is urgency in moving forward on this front, before the US and Russia reach an agreement over the heads and interests of Europeans. Some will say this scenario is increasingly plausible.

All this must be done without illusions and with great perseverance on the European side. The messages coming from the Kremlin show that Putin sees any possible negotiation as an exercise in asserting his views and ambitions. For him, flexibility, concessions, the search for balance – all these are seen as weakness and admission of mistakes, whether his own or others’. This attitude must not discourage the European side. The EU must put on its boots and enter the geopolitical game, in the only arena that is truly its own, the championship of the great powers. Here lies both an opportunity and a historic obligation.