Politics
Analysis: Moscow exploiting the Kosovo context to take over Serbia’s energy sector
Reading Time: 3 minutesThe European Union looks like a bystander to Russia’s step-by-step capture of energy markets and infrastructure in EU territory. This time, Moscow is using an opening through Serbia, a country that Ru
Author: Vladimir Socor, Eurasia Daily Monitor
The European Union looks like a bystander to Russia’s step-by-step capture of energy markets and infrastructure in EU territory. This time, Moscow is using an opening through Serbia, a country that Russia has tempted into isolation from the West by encouraging Serbian past-oriented nationalism over Kosovo. If the Kremlin has its way again, President Vladimir Putin will meet with Serbia’s president and prime minister, Boris Tadic and Vojislav Kostunica, on January 18 in Bulgaria for the signing of a multilateral agreement on the South Stream gas pipeline project that also involves Greece and Italy.
Moscow plans to use Serbia’s territory as a gateway to break into Central Europe with Gazprom’s South Stream pipeline. Russia is exploiting a political context currently defined by the Kosovo issue. On December 27, Serbia’s parliament overwhelmingly adopted a resolution threatening to abandon negotiations for a cooperation agreement with the EU, and to give up European integration altogether, because of the EU’s stance on Kosovo. The resolution also rejects the EU’s intention to send a mission to Kosovo without United Nations Security Council approval — a position championed by Russia, which can use its veto power to prevent the sending of the EU’s mission (Interfax, December 27-28, 2007).
Thus, Moscow must calculate that Belgrade is currently in no mood to listen to the EU, even if the EU wanted to intercede and offer Serbia some option other than South Stream. Whether Brussels intended such intercession seems far from certain however, in light of the EU’s passivity when its own member countries Bulgaria, Greece, and Italy joined Gazprom’s South Stream project.
Apart from the current political context, Gazprom is also exploiting Serbia’s chronic gas shortage. Its negotiating position implies that building an arm of South Stream through Serbia would be a quasi-favor to that country. It hints that it might choose other transit options that would bypass Serbia. It demands 51% control over joint companies to be formed with Serbia Gas as part of the package. And, as part of a South Stream deal with that country, Gazprom insists on taking over a 51% stake in Serbia’s Petroleum Industry (NIS, the state monopoly for oil refining and product marketing).
Gazprom only offers $400 million in cash and $500 million in subsequent investments in NIS. Along with this it demands a monopoly on refining and product marketing for at least five years. And it wants to be exempted from EU environmental standards for a similar period.
Serbs across party lines deem Gazprom’s price offer for NIS unacceptably undervalued. Belgrade was planning an international competitive tender for NIS, but Gazprom wants the tender to be canceled. The Russian government all but openly supports these demands, as could be seen when the Russian ambassador — rather than Gazprom officials — handed over the terms to the Serbian government. The Russian government is thus signaling that the NIS issue forms a part of Moscow-Belgrade political relations, implicitly linked to the Kosovo issue.
A novel trend in Gazprom’s acquisitions policy is emerging with its demand for oil assets in return for “guaranteeing” gas supplies. Gazprom had until now demanded shares in gas transport and storage infrastructure in various countries, as part of gas supply agreements. Recently, Gazprom also displayed an interest in electricity-generating plants in Europe as part of package deals for gas supplies. Now, however, Gazprom is hunting also in the oil sector. This incipient policy is a corollary to the continuing expansion of Gazprom’s oil subsidiary, Gazpromneft. At the end of 2007, Gazpromneft formed a joint company with Lukoil, under Gazpromneft’s 51% control, for all types of operations in the oil sector, including crude refining and product marketing. Gazprom’s attempt to take over NIS is an early test of this acquisition policy in the oil sector.
The Serbian government is currently negotiating based of a “Platform” that it adopted on December 29 by consensus among the coalition’s parties. A working group of ministers is in charge of the negotiations. However, Economics Minister Mladan Dinkic has resigned from the working group in protest against the platform’s unilateral concessions to Russia. Ultimately, the government could set a price for NIS depending on the volume of South Stream gas that would transit Serbia, the level of transit fees, or the capacity of the gas storage site that Gazprom promises to develop in Serbia.
Kostunica and his Serbian Democratic Party seem more willing than other parties in the governing coalition to sell NIS to Gazprom at a low price, although not as cheap as Gazprom’s offer. Other parties, as well as Tadic, would prefer to hold out for a significantly better price. But Kostunica and other hardliners seem eager to come to terms before the January 18 deadline, in time for the meeting with Putin in Bulgaria and signing the agreement there. The Kremlin undoubtedly wishes to conclude the agreement for South Stream’s Bulgarian and Serbian sections at one stroke during Putin’s visit to Sofia.
(Borbam Blic, Sutra, Tanjug, January 3-9; see EDM, January 9)
A new football club has earned a leading place in the UEFA Champions League groups and starred in the headlines of worldwide football news yesterday. The Football Club Sheriff Tiraspol claimed a win with the score 2-1 against Real Madrid on the Santiago Bernabeu Stadium in Madrid. That made Sheriff Tiraspol the leader in Group D of the Champions League, including the football club in the groups of the most important European interclub competition for the first time ever.
International media outlets called it a miracle, a shock and a historic event, while strongly emphasizing the origin of the team and the existing political conflict between the two banks of the Dniester. “Football club from a pro-Russian separatist enclave in Moldova pulls off one of the greatest upsets in Champions League history,” claimed the news portals. “Sheriff crushed Real!” they said.
Moldovans made a big fuss out of it on social media, splitting into two groups: those who praised the team and the Republic of Moldova for making history and those who declared that the football club and their merits belong to Transnistria – a problematic breakaway region that claims to be a separate country.
Both groups are right and not right at the same time, as there is a bunch of ethical, political, social and practical matters that need to be considered.
Is it Moldova?
First of all, every Moldovan either from the right or left bank of Dniester (Transnistria) is free to identify himself with this achievement or not to do so, said Vitalie Spranceana, a sociologist, blogger, journalist and urban activist. According to him, boycotting the football club for being a separatist team is wrong.
At the same time, “it’s an illusion to think that territory matters when it comes to football clubs,” Spranceana claimed. “Big teams, the ones included in the Champions League, have long lost their connection both with the countries in which they operate, and with the cities in which they appeared and to which they linked their history. […] In the age of globalized commercial football, teams, including the so-called local ones, are nothing more than global traveling commercial circuses, incidentally linked to cities, but more closely linked to all sorts of dirty, semi-dirty and cleaner cash flows.”
What is more important in this case is the consistency, not so much of citizens, as of politicians from the government who have “no right to celebrate the success of separatism,” as they represent “the national interests, not the personal or collective pleasures of certain segments of the population,” believes the political expert Dionis Cenusa. The victory of FC Sheriff encourages Transnistrian separatism, which receives validation now, he also stated.
“I don’t know how it happens that the “proud Moldovans who chose democracy”, in their enthusiasm for Sheriff Tiraspol’s victory over Real Madrid, forget the need for total and unconditional withdrawal of Russian troops from Transnistria!” declared the journalist Vitalie Ciobanu.
Nowadays, FC Sheriff Tiraspol has no other choice than to represent Moldova internationally. For many years, the team used the Moldovan Football Federation in order to be able to participate in championships, including international ones. That is because the region remains unrecognised by the international community. However, the club’s victory is presented as that of Transnistria within the region, without any reference to the Republic of Moldova, its separatist character being applied in this case especially.
Is it a victory?
In fact, FC Sheriff Tiraspol joining the Champions League is a huge image breakthrough for the Transnistrian region, as the journalist Madalin Necsutu claimed. It is the success of the Tiraspol Club oligarchic patrons. From the practical point of view, FC Sheriff Tiraspol is a sports entity that serves its own interests and the interests of its owners, being dependent on the money invested by Tiraspol (but not only) oligarchs.
Here comes the real dilemma: the Transnistrian team, which is generously funded by money received from corruption schemes and money laundering, is waging an unequal fight with the rest of the Moldovan football clubs, the journalist also declared. The Tiraspol team is about to raise 15.6 million euro for reaching the Champions League groups and the amounts increase depending on their future performance. According to Necsutu, these money will go directly on the account of the club, not to the Moldovan Football Federation, creating an even bigger gab between FC Sheriff and other football clubs from Moldova who have much more modest financial possibilities.
“I do not see anything useful for Moldovan football, not a single Moldovan player is part of FC Sheriff Tiraspol. I do not see anything beneficial for the Moldovan Football Federation or any national team.”
Is it only about football?
FC Sheriff Tiraspol, with a total estimated value of 12.8 million euros, is controlled by Victor Gusan and Ilya Kazmala, being part of Sheriff Holding – a company that controls the trade of wholesale, retail food, fuels and medicine by having monopolies on these markets in Transnistria. The holding carries out car trading activities, but also operates in the field of construction and real estate. Gusan’s people also hold all of the main leadership offices in the breakaway region, from Parliament to the Prime Minister’s seat or the Presidency.
The football club is supported by a holding alleged of smuggling, corruption, money laundering and organised crime. Moldovan media outlets published investigations about the signals regarding the Sheriff’s holding involvement in the vote mobilization and remuneration of citizens on the left bank of the Dniester who participated in the snap parliamentary elections this summer and who were eager to vote for the pro-Russian socialist-communist bloc.
Considering the above, there is a great probability that the Republic of Moldova will still be represented by a football club that is not identified as being Moldovan, being funded from obscure money, growing in power and promoting the Transnistrian conflict in the future as well.
Photo: unknown
Prime Minister of the Republic of Moldova, Natalia Gavrilita, together with Deputy Prime Minister and Minister of Foreign Affairs, Nicu Popescu, pay an official visit to Brussels, between September 27-28, being invited by High Representative of the European Union for Foreign Affairs and Security Policy, Josep Borrell Fontelles.
Today, Prime Minister had a meeting with Charles Michel, President of the European Council. The Moldovan PM thanked the senior European official for the support of the institution in strengthening democratic processes, reforming the judiciary and state institutions, economic recovery and job creation, as well as increasing citizens’ welfare. Natalia Gavrilita expressed her confidence that the current visit laid the foundations for boosting relations between the Republic of Moldova and the European Union, so that, in the next period, it would be possible to advance high-level dialogues on security, justice and energy. Officials also exchanged views on priorities for the Eastern Partnership Summit, to be held in December.
“The EU is open to continue to support the Republic of Moldova and the ambitious reform agenda it proposes. Moldova is an important and priority partner for us,” said Charles Michel.
Prime Minister Natalia Gavrilita also met with Paolo Gentiloni, European Commissioner for Economy, expressing her gratitude for the support received through the OMNIBUS macro-financial assistance program. The two officials discussed the need to advance the recovery of money from bank fraud, to strengthen sustainable mechanisms for supporting small and medium-sized enterprises in Moldova, and to standardize the customs and taxes as one of the main conditions for deepening cooperation with the EU in this field.
Additionally, Prime Minister spoke about the importance of the Eastern Partnership and the Deep Free Trade Agreement, noting that the Government’s policies are aimed at developing an economic model aligned with the European economic model, focused on digitalization, energy efficiency and the green economy.
A common press release of the Moldovan Prime Minister with High Representative of the European Union for Foreign Affairs and Security Policy/Vice-President of the Commission, Josep Borrell Fontelles, took place today, where the agenda of Moldova’s reforms and the main priorities to focus on in the coming months were presented: judiciary reform; fighting COVID-19 pandemic; promoting economic recovery and conditions for growth and job creation; strengthening state institutions and resilience of the country.
“I am here to relaunch the dialogue between my country and the European Union. Our partnership is strong, but I believe there is room for even deeper cooperation and stronger political, economic and sectoral ties. I am convinced that this partnership is the key to the prosperity of our country and I hope that we will continue to strengthen cooperation.”
The Moldovan delegation met Didier Reynders, European Commissioner for Justice. Tomorrow, there are scheduled common meetings with Oliver Varhelyi, European Commissioner for Neighborhood and Enlargement, Adina Valean, European Commissioner for Transport and Kadri Simson, European Commissioner for Energy.
Prime Minister will also attend a public event, along with Katarina Mathernova, Deputy Director-General for Neighbourhood Policy and Enlargement Negotiations.
Photo: gov.md
Politics
Promo-LEX about Maia Sandu’s UN speech: The president must insist on appointing a rapporteur to monitor the situation of human rights in Transnistria
The President of the Republic of Moldova, Maia Sandu, pays an official visit to New York, USA, between September 21-22. There, she participates in the work of the United Nations General Assembly. According to a press release of the President’s Office, the official will deliver a speech at the tribune of the United Nations.
In this context, the Promo-LEX Association suggested the president to request the appointment of a special rapporteur in order to monitor the situation of human rights in the Transnistrian region. According to Promo-LEX, the responsibility for human rights violations in the Transnistrian region arises as a result of the Russian Federation’s military, economic and political control over the Tiraspol regime.
“We consider it imperative to insist on the observance of the international commitments assumed by the Russian Federation regarding the withdrawal of the armed forces and ammunition from the territory of the country,” the representatives of Promo-LEX stated. They consider the speech before the UN an opportunity “to demand the observance of the Universal Declaration of Human Rights by the Russian Federation with reference to this territory which is in its full control.”
“It is important to remember about the numerous cases of murder, torture, ill-treatment, forced enlistment in illegal military structures, the application of pseudo-justice in the Transnistrian region, all carried out under the tacit agreement of the Russian Federation. These findings stem from dozens of rulings and decisions issued by the European Court of Human Rights, which found that Russia is responsible for human rights violations in the region.”
The association representatives expressed their hope that the president of the country would give priority to issues related to the human rights situation in the Transnistrian region and would call on relevant international actors to contribute to guaranteeing fundamental human rights and freedoms throughout Moldova.
They asked Maia Sandu to insist on the observance of the obligation to evacuate the ammunition and the military units of the Russian Federation from the territory of the Republic of Moldova, to publicly support the need for the Russian Federation to implement the ECtHR rulings on human rights violations in the Transnistrian region, and to request the appointment of an UN Human Rights Council special rapporteur to monitor the human rights situation in the Transnistrian region of the Republic of Moldova.
**
The Promo-LEX Association concluded that 14 out of 25 actions planned within the National Action Plan for the years 2018–2022 concerning respecting human rights in Transnistria were not carried out by the responsible authorities.
The association expressed its concern and mentioned that there are a large number of delays in the planned results. “There is a lack of communication and coordination between the designated institutions, which do not yet have a common vision of interaction for the implementation of the plan.”
Promo-LEX requested the Government of the Republic of Moldova to re-assess the reported activities and to take urgent measures, “which would exclude superficial implementation of future activities and increase the level of accountability of the authorities.”
Photo: peacekeeping.un.org
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