EU and Russia: sanctions and cooperation, the two sides of the coin

I have just finished my opinion piece of this week for Visão, a well-read general news magazine that is published every Thursday in Lisbon. This time the theme had to be about the relations between the EU and Russia, in the aftermath of the shooting down of the Malaysia Airlines plane.

My points are that we have to combine much tougher and better targetted economic sanctions against key Russian enterprises, including Rosneft, making sure they cannot access the European financial markets, with a continuous invitation for political dialogue between Europe and Russia. In the end, both blocs need each other. Russia, sooner or later, will require EU capital, technology and markets to develop its Far East. And Europe has a lot to gain by participating in the economic development of its big neighbour.

However the long term view cannot ignore the realities of today. And the key message here is that Russia has to fully implement the Helsinki Act of 1975 about peace and cooperation in Europe and non-interference in the internal affairs of other states. 

Diplomacy as part of a wider package

The agreement reached today in Geneva regarding Ukraine´s crisis is encouraging. We will see if it is implemented. But the fact that the parties, including Russia and the US, could agree on a way forward reminds us that we should keep talking, when there is a conflict, we should not cut off the bridges. That does not mean we should only try diplomacy. Actually diplomacy works better when it is combined with a full range of other measures, such as smart sanctions, military posture and deterrence, unity within the allies, and a clear political position. 

Cool down, gentlemen!

The analysis available this evening does recommend a cooling down of the rhetoric. The messages have been pretty well received in Moscow, they got the picture, which is of clear condemnation, and I think that should be enough for the time being. It is important to be perceived as firm, true. That´s now understood in the Kremlin. But it is also necessary to avoid an escalation of words. Many conflicts have started because the wrong words have been said and misunderstood. As we live in dangerous times, it is important to avoid too many words, too many inflammatory statements or declarations that might create anxiety, confusion and destabilisation of the economic setup, which is very fragile. 

The rule of the Kremlin

I am not sure the Kremlin realises the damaging impact of Mikhail Khodorkovsky's farcical trial on Western European views of present-day Russia. The fact of the matter is that there is little trust left on rule of law in Russia.

It is the rule of Putin that matters, this is how the European citizen sees the situation. And many think that investing in Russia is too hazardous, be it about investing money or political trust.

I have written in the recent past some optimistic pieces about Russia. I am one of those who believes in deepening the engagement. But today's incomprehensible court decision is a major hurdle.