Ditching the West to Join The Rest

By joining the Eurasian Economic Union, Ankara can greatly benefit as a result.

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Nine years ago I wrote a post in which I alluded to the possibility of Turkiye joining the Eurasian Economic Union: 

"As was the case between France and Germany, Turkey had been Russia's number one enemy for centuries, the two countries had fought a long series of wars with each other. Both empires - the Russian and the Turkish - disappeared, however the states that emerged from their ruins enjoy excellent economic and diplomatic relations today.

Pushing the analogy with the EU further, we find that the new Eurasian Economic union needs a nucleus formed by two strong states around which new members from Eurasia can be attracted in the future.

Thus, according to a statistic published by Geo magazine (French edition) in December 2011, between 2002 and 2011 Turkey attracted a number of 27,000 foreign companies, of which 15,000 came from Russia. This being the situation, we can consider that the integration of the two economies - Russian and Turkish - has already reached an advanced stage."

As most of us know, the Eurasian Economic Community (EEC) appeared after the dissolution of the USSR and - in a way - because of it. Although headquartered in Moscow, the union was actually the brainchild of Nursultan Nazarbayev, the former president of Kazakhstan. 

After 2000, Russia wished to use the EEC as the nucleus of a larger common market, hoping to enlist Ukraine as a member. That prospect greatly upset the American Secretary of State at the time Hilary Clinton, who by 2011 campaigned internationally against it. The matter was put to rest by the Maidan coup d'etat, after which Ukraine decided to join the European Union instead.

Since then, the membership of the EEC has only included states like Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia.

During the same period, Turkiye all but gave up on its bid to join the EU after more than 50 years of waiting for a decision from Brussels. Geographically considering the matter, Turkyie is an Eurasian country with a different religion and culture from the rest of the EU members.

Taking the analogy between France and Germany after World War II and present-day Turkiye/Russia further, it is obvious to me that both the Russians and the Turks would greatly benefit economically from joining forces within the EEC.

Furthermore, the EEC includes republics from Central Asia whose populations are of Turkic descent. Finally, both Russia and Turkyie are governed by populist authoritarian leaders who strongly support traditional family values and reject Western-style liberalism with its current corollary, the LGBTQ agenda.

But there is more. 

For such a momentous transition for Turkiye to be complete, the Erdogan government should seriously consider joining the Cooperative Security Treaty Organisation (CSTO). Over the past few years there have been quite a few calls within American policymaking circles, including The Atlantic Council, for Turkiye to be evicted from NATO.

Again, given the fact that the CSTO includes among its members some of the Turkic republics from Central Asia such as Kazakhstan, Kyrgyzstan and Tajikistan, Turkiye could play a vital role in helping stabilise those republics which periodically experience political turmoil. Thus, the 5th of January 2022 Russian intervention in Kazakhstan could very well have been undertaken by a Turkish contingent instead.

Another area where Turkiye would have made an essential contribution is that of the conflict between Armenia and Azerbaijan in Nagorno-Karabakh. Russia has obvious leverage in Yerevan, but very little influence in Baku where Turkiye has a big say. Clearly, with both Russia and Turkiye being part of the same security organisation, Central Asia and the rest of Eurasia could only stand to benefit as a result.

The SCO's Landmark Ufa Summit

 July 11, 2015

On the 9th and 10th of July 2015, the Shanghai Cooperation Organization (SCO) has held a landmark summit in Ufa (Russia), its 15th to date. Ufa has simultaneously hosted the BRICS summit, which was meant to further strengthen economic ties between its five emerging economic powers.

Founded in 2001 by Russia, China and four Central Asian republics, the SCO had until recently as its main objective fighting “the three evils: separatism, extremism and terrorism”. At Ufa, the six founding members have for the first time agreed to allow for the expansion of the organization by offering full membership to both India and Pakistan. Thus the US geopolitical push to see India included into a balance-of-power mechanism in Asia aimed at containing China has been thwarted. Accordingly, the United States will remain with a handful of allies in Asia, from the Philippines and possibly Vietnam to its old-time ally Japan.

The expanded SCO covers a huge geographical area which includes Eurasia, China and the entire Indian subcontinent, with a combined population in excess of 3 billion. Four of its members (Russia, China, India and Pakistan) are nuclear powers and have large, well-equipped military forces. During the summit the leaders of member-countries, new and old, have expressed their willingness to also enhance economic cooperation in strategically important sectors such as transport and energy production/distribution.

The State Department officials have reacted to the new developments in Asia by declaring that the United States do not consider Russia or China as “existential threats” to the Americans.

 

The Eurasian Union: Two Competing Geopolitical Visions

 March 21, 2012

The implosion of the Soviet Union has in many ways adversely affected the stability of the Central Asian republics like Kazakhstan, Kyrgyzstan, Turkmenistan or Uzbekistan. Since 1991, a loose alliance of 11 former Soviet republics, the Commonwealth of Independent States (CIS), was formed in order to preserve, at least in part, the Soviet-era heritage in regional economic integration.

The geopolitical competition for influence in Central Asia has ceased to be a Russia-only affair, however. China is rapidly becoming a big player in the energy sweepstakes, if its direct dealings with Turkmenistan and others are any guide. Closer to Europe, Turkey has also been willing to take the lead in promoting Eurasian integration. Thus, on the 5th of February 2010, Turkish foreign minister Ahmet Davutoglu has stated during a business conference that “there is a need to embark on a new vision in order to have the Eurasia region regain its historical importance”. Assembling the five “stans” into an Eurasian common structure would, in Davutoglu’s view, be useful to establish “a link between energy-supplying countries and energy-receiving countries”.

Turkey’s ability to foster Eurasian regional integration is based on common cultural and religious roots of the inhabitants of the Central Asian republics. To further its diplomatic aims, Turkey has founded TURKSOY in 1993 in Alma Aty (Kazakhstan), as an international organisation for the promotion of Turkish culture abroad.

As the Arab revolutions have forced Turkey’s diplomats to put the Eurasian project on the back-burner, the opportunity has astutely been seized by Vladimir Putin. In an article entitled “A New Integration Project for Eurasia: The Future in the Making” published by Izvestia on the 4th of October 2011, Vladimir Putin has outlined his vision for the creation of an Eurasian Union larger in size than the European Union. Putin argues that the objective is to build “a new, strong, supranational union that could become one of the poles of the modern world, and could play the role of an effective bridge between Europe and the dynamic Asia-Pacific region”.

His proposed union would be much more than a mere customs union and would include such common institutions as an Eurasian Commission, similar to the one in Brussels, an Eurasian parliament, as well as an Eurasian common currency. To foster regional integration, the Eurasian union “should be built on the inheritance of the Soviet Union: infrastructure, a developed system of regional production specialisation, and a common space of language, science and culture” (V.Putin).

Putin claims that the impetus for the regional integration plans was provided by the financial crisis – a reason invoked by the Chinese, as well, in plans to build their own trade bloc together with the ASEAN countries.

According to Mars Sariev, a Kyrgyz political scientist, Putin and the Russian foreign policy elite have had little choice but to come up with a blueprint for integrating the former Soviet republics into a regional bloc. The alternative, he claims, would be for Russia to become a mere supplier of raw materials for the EU and China. Recently, during an Eurasian Economic Community summit involving Belarus, Kazakhstan, Kyrgyzstan and Tajikistan, their leaders have decided to postpone the creation of the Eurasian Union until 2015. Curiously enough, the project’s most vocal opponent was Belarus’ president Lukashenko, although Ukraine’s president Yanukovich, whose country was present at the summit as an observer, also expressed serious reservations regarding Putin’s plans.

Professor Gerhard Simon of the University of Cologne assesses the chances of success for the proposed Eurasian Union project as “slim to none”. The president of Georgia, Mikhail Saakashvili, considers the project as being the blueprint for “a new Soviet Union”, a charge vehemently denied in his Izvestia article by Vladimir Putin.

The biggest misgivings concerning the Eurasian project come from countries like Azerbaijan and Georgia, which together with Turkey have already formed a geopolitical team that benefits from US assistance. Both countries experience ethnic turmoil, Azerbaijan in the Nagorno-Karabakh region and Georgia in South Ossetia. Azerbaijan would rather export its oil and gas directly to Europe, through the Baku-Tbilisi-Ceyhan pipeline. SOCAR, the Azeri state oil company has invested 1 billion US dollars in Georgia and controls 80 percent of the latter’s fuel stations. Georgia, meanwhile, is strongly courting NATO and EU membership and is complaining about Brussels’ foot-dragging regarding its accession hopes.

To be sure, the geopolitical competition between Turkey and Russia for the creation of an Eurasian union is heating up. Whilst it is hard to envisage an Eurasian union built around Russia, given its enormous size and colonial record, Turkey’s recent policy paralysis does not qualify it as a strong regional leadership contender, either. (sources: EurActiv, Voice of America News, Deutsche Welle, The Atlantic, Izvestia, Today’s Zaman, www.TurkishCentralNews.com)

China's Investment Strategy in Central Asia

 

October 5, 2010

Over the past few years, China has become a major player in Central Asia’s oil & gas and in Afghanistan’s mining sector. Its investments in the region are an important part of its worldwide FDI strategy.

To date, China’s biggest purchases of gas come from Turkmenistan. In 2009 the Chinese president inaugurated a gas pipeline that stretches for 4,000 miles from Turkmenistan via Kazakhstan and Uzbekistan to China. 30 billion cubic metres per year will be supplied by Turkmenistan, while 10 billion cubic metres will come from Kazakhstan’s gas fields. The vast amount of gas will supply some 50 percent of China’s gas needs, estimated at over 80 billion cubic metres per annum. The Chinese will pay USD 195/1,000 cubic metres over 30 years, thus bringing their country into competition with Russia, as well as the EU with its Nabucco pipeline project. To get to the Turkmen gas the Chinese paid around 3 billion USD necessary for the construction of the pipeline and the development of the fields.

In Kazakhstan, China National Petrol Corporation together with Kazmunay Gas inaugurated in 2006 a 2,200 km oil pipeline between Atyrau (Kazakhstan) and Xinjiang in China – the first such pipeline to connect China to the Central Asian oil & gas fields. In 2009 CNPC took a 50 percent stake in Kazakhstan’s largest oil & gas company, in exchange for a USD 5 billion loan to Kazakhstan.

This year Uzbekistan’s state company UzbekNeftegaz officially announced that it entered discussions with CNPC to supply China with 10 billion cubic metres of gas per annum, on top of the 40 billion cubic metres supplied jointly by Kazakhstan and Turkmenistan.

In Afghanistan, MCC of CHina has signed a 3,5 billion USD deal with the Afghan government to exploit Aynak’s estimated 240 million-ton copper deposits. To seal the deal, China has offered to build a railroad and provide the infrastructure needed, the project being the biggest FDI to date in Afghanistan. Chinese negotiators outfoxed their American and Indian competitors and worked – as they did elsewhere in Central Asia – closely with their Russian counterparts in order to finalise the deal. The Afghan government will also receive hundreds of millions of dollars every year in royalty fees after the mine becomes operational.

According to American, Australian and Canadian geologists, Afghanistan is the “Saudi Arabia of lithium” and also has significant deposits of gold, copper, cobalt and iron, which could not be exploited until now because of 50 years of continuous warfare that had ripped through the country. In the quest for Afghanistan’s mineral deposits, China is favoured to develop most of them, as it did not intervene militarily there and has Pakistan on its side. The latter in turn could help the Chinese to be shielded from attacks by the Taliban and even, if the political environment changes, to win their favour.

By contrast, the US – which spent a reported 940 billion USD over the past 8 years in Afghanistan – and their Indian ally are not likely to capitalise on the development of Afghanistan’s mining sector. (sources: Asian Times, Reuters, Xinhua, The Guardian, Far Eastern Economic Review, WSJ, Daily Finance, NYT)