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The Death of the ‘Lisbon to Vladivostok’ Project?

The Death of the ‘Lisbon to Vladivostok’ Project?

On February 14, 2019, Posted by , In Analysis Reports,Europe,Information Reports, With Comments Off on The Death of the ‘Lisbon to Vladivostok’ Project?
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By Guest Author, Emil Avdaliani, PhD – Professor of  International Relations and History at Tbilisi State University

Russian relations with Europe are part of a complicated story rooted in military, economic and often ideological realms. Both entities have for centuries tried to find a modus vivendi, but have so far failed. One compromise suggested for Europe and Russia was an economic space stretching from Lisbon to Vladivostok – the space characterized by a unified economy, political understanding and even deep military cooperation.

Russia’s President Vladimir Putin for years advocated the idea, making speeches about the case. To be clear, Putin was not the first to propound it, but was merely reflecting on similar ideological arguments of the past. A transcontinental union spanning the Atlantic to the Pacific is a geopolitical concept that pops back up from time to time and is linked to neo-Eurasianism, before which the geopolitical space was made up by the triangle of Nazi Germany, Soviet Russia and Imperial Japan.

One space from Lisbon to Vladivostok, which one might also call “Greater Eurasia”, would make Russia pivot to the West. This was an attractive idea for the European and Russians. Indeed, even German Chancellor Angela Merkel once said that she hopes “Russia would increasingly develop ties with the European economic area, finally resulting in a common economic area from Lisbon to Vladivostok”.

How would such cooperation look? Perhaps it would imply at least a free trade agreement (FTA), whose core features might involve the cutting of tariffs and non-tariff barriers. Business interests in the EU as well as Russia are likely to be supportive of such a proposition. Putin stated that “in future, we could even consider a free trade zone or even more advanced forms of economic integration. The result would be a unified continental market with a capacity worth trillions of Euros”.

Surely when we talk about Russia in this context, we need to understand this space as including neighboring post-Soviet states. Russia launched its Eurasian Economic Union (EEU) project back in 2015.

One would think that for the EU, an FTA with the EAEU would be an advantageous proposition from an economic standpoint, since it would give preferential access to an important market. But one would expect the pre-conditions posed by the EU for the opening of negotiations to be many and quite stringent.

For Moscow, this positioning might be more economically advantageous, as the EEU could be a bridge for China’s Belt and Road Initiative (BRI) to connect with the European market. On the map, all appears logical and attractive, but in reality, China’s BRI, although not against being cooperative with other blocks, still aims at pulling major Eurasian resources towards itself. Russia’s EEU, weaker in dimension than the BRI, will inevitably be drawn to Beijing with growing grievances on the Russian side.

Back to the unified Russia-Europe economic space, there remains the fundamental question as to whether or not Russia would consider an FTA with the EU to be in its interests. Is the ‘Lisbon to Vladivostok’ idea serious? In Russia, many would fear that an FTA with the EU would be too imbalanced, or asymmetric in favor of the EU. Indeed, most Russian exports to the EU, such as oil and gas, are already being traded without tariffs. Also, the challenge for any petro-economy to sustain a substantial and competitive industrial sector would be a tough task to pull off.

So far, we have given a pretty rosy picture of the two stood regarding the project just several years ago, in the period before the Ukraine crisis.

When discussing Russian geopolitical moves, one needs to remember how important Ukraine is and how the latter has been a driving factor in Russia’s calculus. Ukraine has always been the main point of any of Russia’s grand projects of the past and present. The modern EEU, an ambitious project that goes well beyond the simple removal of borders between the five ex-Soviet countries (Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia), is weak economically and geographically without Ukraine. Many believe that even before the Ukraine crisis, Russia-Europe relations were strained and a crisis was inevitable, but it should not be forgotten that it is still Ukraine which made the differences insurmountable. It could even be argued that the Ukraine crisis put an end to any grand strategic view between Russia and Europe. The “Lisbon-Vladivostok” vision, it could be argued, is now dead.

Beyond the Ukrainian issue are also other important issues which are likely to stop any furtherance of the Greater Eurasia project. Europe and Russia are not just two competing economic blocs, but two blocs with opposing values and political systems. A compromise between the two has not been seen in the history of the past several centuries, except for short periods of time when Russian military power was needed in settling inter-European problems.

Moreover, put in the longer-term perspective, we see that the abandoning of the grand Lisbon-Vladivostok vision follows what is taking place across the entire Eurasian continent, where pragmatism and a reliance on real state interests and capabilities are back in fashion following the hopeful post-Cold War years.

Over the past several years, Russia has also leant towards the East. And while it is often put to question just how deep the Russian pivot to the East is, certain geopolitical tendencies lead us to support the idea as fact. Moscow portrays this policy as its own choosing, but the reality is that from three grand avenues (Eastern Europe, South Caucasus, and Central Asia) of projection of Russian geopolitical influence, it is only in Central Asia that Moscow does not meet important pushback from any Western power, while Chinese influence is only seen in economics. This simple vector of projection of Russian power is quite telling at a time when Moscow is more drawn to the East rather than the West, spelling a death note to once grand plans of an economic space from Lisbon to Vladivostok.

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