International Relations in the Baltic Sea Region Leonid Karabeshkin, PhD Spring Semester 2011/2012.

International International Relations in the Relations in the Baltic Sea RegionBaltic Sea RegionLeonid Karabeshkin, PhDLeonid Karabeshkin, PhD

Spring Semester 2011/2012Spring Semester 2011/2012

US Policy in the BSRUS Policy in the BSR The “Romantic period” -1991-1994: support of The “Romantic period” -1991-1994: support of

democratic reforms in Russia, no enlargements, democratic reforms in Russia, no enlargements, but support to Baltic statehood, encouraging but support to Baltic statehood, encouraging withdrawing troopswithdrawing troops

1994 – 2000 – worsening US-Russia relations, 1994 – 2000 – worsening US-Russia relations, the Lake Doctrine (widening democracy) – the Lake Doctrine (widening democracy) – consolidation of new democracies and market consolidation of new democracies and market economy through NATO enlargement, initiation of economy through NATO enlargement, initiation of the the North-European InitiativeNorth-European Initiative of the US of the US (assistance to integration of the Baltic States to (assistance to integration of the Baltic States to Euro-Atlantic structures and widening US Euro-Atlantic structures and widening US economic presence in the region. economic presence in the region.

US Policy in the BSR: 1994 – 2000US Policy in the BSR: 1994 – 2000 Worsening US-Russia relations;Worsening US-Russia relations; The Lake Doctrine (widening democracy) – consolidation The Lake Doctrine (widening democracy) – consolidation

of new democracies and market economy;of new democracies and market economy; NATO enlargement; NATO enlargement; ““Low profileLow profile” ” policy failure – the attempts to charge policy failure – the attempts to charge

Nordic Countries (Sweden first) to supervise Baltic security Nordic Countries (Sweden first) to supervise Baltic security and Euro-Atlantic integration of the Baltic States. and Euro-Atlantic integration of the Baltic States.

North-European InitiativeNorth-European Initiative - assistance to integration of - assistance to integration of the Baltic States to Euro-Atlantic structures and widening the Baltic States to Euro-Atlantic structures and widening US economic presence in the regionUS economic presence in the region

Strengthening economic presence in the Region: MN, Strengthening economic presence in the Region: MN, Estonian Raiways, Eesti Energia – beyond the Baltic Estonian Raiways, Eesti Energia – beyond the Baltic States active investment in the Leningrad Oblast;States active investment in the Leningrad Oblast;

Political elites – new “American” presidents in Latvia and Political elites – new “American” presidents in Latvia and Lithuania, further in Estonia (2006). Lithuania, further in Estonia (2006).

US Policy in the BSR: 2000-2004US Policy in the BSR: 2000-2004 PeripheryzationPeripheryzation of the Baltic issue on US of the Baltic issue on US

Policy agenda: 9/11, Iraq, Afghanistan; stability Policy agenda: 9/11, Iraq, Afghanistan; stability in the Baltic Sea Region; improving relations in the Baltic Sea Region; improving relations with Russia under the “first” Putin;with Russia under the “first” Putin;

Accession of the Baltic States to NATO and EU Accession of the Baltic States to NATO and EU – the policy of engagement to Russia from the – the policy of engagement to Russia from the Baltic States and establishing Russia-NATO Baltic States and establishing Russia-NATO Council;Council;

Weakening policy of defending investments – Weakening policy of defending investments – withdrawing from MN, Eesti Raudtee, etc.withdrawing from MN, Eesti Raudtee, etc.

Weakening interest to domestic policy – Weakening interest to domestic policy – Rolandas Paksas in Lithuania, Arnold RRolandas Paksas in Lithuania, Arnold Rüüüütel in tel in Estonia bacame presidents.Estonia bacame presidents.

US Policy in the BSR: 2004-2008US Policy in the BSR: 2004-2008 Relative growth of US interest to the Baltic States, and Relative growth of US interest to the Baltic States, and

Eurasia in general;Eurasia in general; E-PINE initiative aimed at widening multilateral E-PINE initiative aimed at widening multilateral

cooperation in fighting terrorism, active involvement into cooperation in fighting terrorism, active involvement into coalitions of the willing, “democracy export” to the post-coalitions of the willing, “democracy export” to the post-Soviet space (incl. Russia).Soviet space (incl. Russia).

Tensions in relations with Russia: colour revolutions, Tensions in relations with Russia: colour revolutions, YUKOS, Iraq, Beslan etc. YUKOS, Iraq, Beslan etc.

Strengthening voice in European affairs through new Strengthening voice in European affairs through new NATO and EU members which pursue pro-American NATO and EU members which pursue pro-American stance; limiting potential Russian-European stance; limiting potential Russian-European rapprochement. rapprochement.

Worsening Russian-Baltic relationsWorsening Russian-Baltic relations Impeachment to Paksas in Lithuania, election of Ilves in Impeachment to Paksas in Lithuania, election of Ilves in

Estonia.Estonia. Trenin on US policy in the BSR: “restricted peripheral Trenin on US policy in the BSR: “restricted peripheral

confrontation”. confrontation”.

US Policy in the BSR: 2008-2012US Policy in the BSR: 2008-2012

““Reload” in Russian-American relations;Reload” in Russian-American relations; Decreasing US Activism in the BSRDecreasing US Activism in the BSR Decreasing US activism on the post-Soviet Decreasing US activism on the post-Soviet

space, disappointment of the Baltic States with space, disappointment of the Baltic States with the results of their policies in Georgia, Ukraine the results of their policies in Georgia, Ukraine and other states of the former USSR;and other states of the former USSR;

Energy recourses diversification policy – Energy recourses diversification policy – support of the Baltic States policies in energy support of the Baltic States policies in energy security, against of Nord Stream;security, against of Nord Stream;

NATO presence in the region, defence action NATO presence in the region, defence action plan for the Baltic States;plan for the Baltic States;

EU Approaches to Baltic EU Approaches to Baltic PolicyPolicy

1996 – “Baltic Sea Region Initiative”1996 – “Baltic Sea Region Initiative” “To strengthen political stability and economic

development in the Baltic Sea region” “The CBSS has a unique role in the region as a vehicle

for political dialogue and coordination of measures favouring democracy and stability.

“The recommendations of the initiative are closely linked to the preparation by the Swedish Presidency of the CBSS of the "Visby Charter" with a view to promoting action programmes for contacts, economi cooperation and environmental cooperation.”

Enhancing Democracy and StabilityCommission will further support:• direct contacts between public and private institutions, including public administration reform, for instance through secondment of staff, and local initiatives at municipal and subregional levels;• projects in the area of civil society and human rights under the PHARE and TACIS Democracy programme;• better coordination of regional networking of non-governmental organizations within the framework of the CBSS;• more comprehensive activities for the rights of national minorities through improved legislation andadministrative procedures as well as facilitation of their economic and social integration by means of language training and other supporting measures;• activities of the CBSS Commissioner on Democratic Institutions and Human Rights, including the rights of persons belonging to minorities;• measures under the Stability Pact to strengthen democracy and human rights.

Promoting economic development• to support the establishment, in accordance with WTO rules, of the Baltic Free Trade Area betweenEstonia, Latvia and Lithuania, including a customs union by 1998, and free trade between these countriesand Poland in the framework of CEFTA (Central European Free Trade Agreement), which will furthercomplement the Europe Agreements; • to assist in speeding up the approximation of regulatory frameworks; • to consider cofinancing integrated trade networks, combining infrastructure projects with advice on tradefacilitation; • cofinance the Via Baltica (Helsinki-Tallinn-Riga-Kaunas-Warsaw) • promote the Via Hanseatica (Riga-Sovietsk-Kaliningrad-Gdansk-Szczecin-Bremen) • finance technical assistance on the Helsinki-St.Petersburg-Moscow corridor, • cofinance the development of ports,

EnergyEnergy

Energy efficiency and the interconnection of electricity and gas networks will improve security of energysupplies, contribute to economic development and protect the environment. The Russia-Belarus-Poland-Germany gas pipeline is a EU-priority project. The crude-oil pipeline from Russia to Finland, together with the linking of electricity and gas supply networks in the Union with those of partner countries, e.g. the Baltic Electricity Ring, should be developed;

contribute further to the improvement of the safety of nuclear reactors in the region (Ignalina, St.Petersburg, Kola) and to enable the total dismantling of the nuclear reactor in Paldiski, Estonia;

Northern DimensionNorthern Dimension The initiative was announced by Finish Prime-Minister The initiative was announced by Finish Prime-Minister

Paavo LipponenPaavo Lipponen Was aimed at overcoming geographical and politically Was aimed at overcoming geographical and politically

peripheral status of Finland in the EU (accessed in 1996);peripheral status of Finland in the EU (accessed in 1996); Had to attract attention of the EU to the Baltic Sea region Had to attract attention of the EU to the Baltic Sea region

and relations with Russia where Finland possessed the and relations with Russia where Finland possessed the only immediate border-line between the EU and Russia;only immediate border-line between the EU and Russia;

Was critically met by Sweden, Baltic States and Poland, Was critically met by Sweden, Baltic States and Poland, as well as by Russia;as well as by Russia;

Was cautiously met by the EU, which claimed that Was cautiously met by the EU, which claimed that Northern Dimension is not a new regional initiative but just Northern Dimension is not a new regional initiative but just a “concept which can provide for an added value”. The a “concept which can provide for an added value”. The initiative did not receive separate budget line, but served initiative did not receive separate budget line, but served as a coordination mechanism of existing programmes.as a coordination mechanism of existing programmes.

Northern DimensionNorthern Dimension EU Commission Communication “Northern Dimension for EU Commission Communication “Northern Dimension for

the Policies of the Union” – 1998.the Policies of the Union” – 1998. 6 priority areas were enumerated: energy, environmental 6 priority areas were enumerated: energy, environmental

and nuclear safety, cross-border cooperation, trade, and nuclear safety, cross-border cooperation, trade, transport, telecommunications and health care. transport, telecommunications and health care.

Northern Dimension became a policy of the EUNorthern Dimension became a policy of the EU Avoiding EU foreign policy implementation by one country Avoiding EU foreign policy implementation by one country

only (Finland)only (Finland) Coordination of different financial aid instruments for Coordination of different financial aid instruments for

Finland and Sweden (Structural funds), Baltic states and Finland and Sweden (Structural funds), Baltic states and Poland (PHARE), as well as Russia (TACIS).Poland (PHARE), as well as Russia (TACIS).

Relatively low priority status of the initiative, dependent on Relatively low priority status of the initiative, dependent on the position of the EU Presidency – Finland and Sweden the position of the EU Presidency – Finland and Sweden as the main lobbyists.as the main lobbyists.

Northern DimensionNorthern Dimension Preparation of the 1Preparation of the 1stst Action plan (2000-2003) – decision made under Action plan (2000-2003) – decision made under

Finnish presidency in the EU (1999).Finnish presidency in the EU (1999). Included the list of challenges and operational actions in the following Included the list of challenges and operational actions in the following

areas:areas: - Infrastructure (Energy – - Infrastructure (Energy – ““Access to the west European market for gas

from the region is important for European security of supply”; Transport – Trans-European networks and border bottlenecks; Telecommunication and Information Society) .

- Environment and Natural Resources (the main priority – used water - Environment and Natural Resources (the main priority – used water treatment improvement);treatment improvement);

- Nuclear Safety – NPP and Russian submarines - Nuclear Safety – NPP and Russian submarines (“(“EU policy aims at the earliest practicable closure of all nuclear reactors at the nuclear power plants in the region, namely Ignalina, Leningrad and Kola (1-2) that cannot be upgraded to internationally accepted levels of safety at a reasonable cost”).

- - Public Health; Trade and Business; Cross-border Cooperation (incl. Public Health; Trade and Business; Cross-border Cooperation (incl. Kaliningrad)Kaliningrad)

Approved on the EU Summit in 2000 (Feira, Portugal) – the list of top Approved on the EU Summit in 2000 (Feira, Portugal) – the list of top priorities narrowed to: environment, nuclear safety, trans-border priorities narrowed to: environment, nuclear safety, trans-border crime and Kaliningrad.crime and Kaliningrad.

Northern Dimension: Northern Dimension: problemsproblems

Narrowing agenda was caused by a number of reasons:Narrowing agenda was caused by a number of reasons: - Limited recourses – both financial and institutional;- Limited recourses – both financial and institutional; - Russia did not welcome the energy cooperation in EU - Russia did not welcome the energy cooperation in EU

interpretation, perceiving it as unattractive; energy dialogue was interpretation, perceiving it as unattractive; energy dialogue was viewed as a separate part of Russia-EU relations, beyond the viewed as a separate part of Russia-EU relations, beyond the Baltic agenda;Baltic agenda;

- Russia was concerned about widening external relations of its - Russia was concerned about widening external relations of its regions – Putin started centralizing state governance, including regions – Putin started centralizing state governance, including foreign affairs;foreign affairs;

- EU had ambiguous goals: on the one hand, enlargement and - EU had ambiguous goals: on the one hand, enlargement and eliminating internal barriers; on the other hand, development of eliminating internal barriers; on the other hand, development of cross-border cooperation with Russia. The priority was granted to cross-border cooperation with Russia. The priority was granted to the first area, which stipulated fastening external border perimeter;the first area, which stipulated fastening external border perimeter;

- Economic disparity of the regions across borders; differences in - Economic disparity of the regions across borders; differences in organizing regional and municipal governance – Russian regions organizing regional and municipal governance – Russian regions and especially municipalities could serve only as recipients of and especially municipalities could serve only as recipients of foreign aid;foreign aid;

Northern DimensionNorthern Dimension

22ndnd Action Plan 2004-2006 Action Plan 2004-2006Priorities – more or less repeated from the 1Priorities – more or less repeated from the 1stst Action Plan: Action Plan: economy, business and infrastructure; human resources, education, culture, scientific research

and health; the environment, nuclear safety and natural resources; cross-border cooperation and regional development; justice and home affairs. Kaliningrad Arctic Area

22ndnd ND Action Plans: ND Action Plans: ComparisonComparison

In comparison with its predecessor it is less In comparison with its predecessor it is less political and strategic, representing rather a list political and strategic, representing rather a list of the projects to be implemented. of the projects to be implemented.

The list of environmental projects here is The list of environmental projects here is longer than in any other field of activitieslonger than in any other field of activities

Establishment of Partnerships – Social and Establishment of Partnerships – Social and EnvironmentalEnvironmental

2004 – Baltic States and Poland became EU 2004 – Baltic States and Poland became EU members. “Externalization” of ND – growing members. “Externalization” of ND – growing role of Russiarole of Russia

ND and EUSBSRND and EUSBSR

2007 – ND was transformed into quadrilateral 2007 – ND was transformed into quadrilateral program of Russia, Norway, Iceland and the program of Russia, Norway, Iceland and the European UnionEuropean Union

Widening number of Partnerships:Widening number of Partnerships: - Transport and Logistics- Transport and Logistics - Culture- Culture Initiation of the EU Strategy for the Baltic Sea Initiation of the EU Strategy for the Baltic Sea

Region as a projection of the EU regional Region as a projection of the EU regional policy.policy.

Partnerships: Transporn Partnerships: Transporn and Logisticsand Logistics

““The NDPTL's goal is to improve, in compliance The NDPTL's goal is to improve, in compliance with the ecological needs of the region, the with the ecological needs of the region, the major transport connections and logistics in the major transport connections and logistics in the Northern Dimension region to stimulate Northern Dimension region to stimulate sustainable economic growth at the local, sustainable economic growth at the local, regional and global levels by focusing on a regional and global levels by focusing on a limited number of priorities that reflect both limited number of priorities that reflect both regional and national priorities in a balanced regional and national priorities in a balanced way.”way.” (NDPTL Director Interview) (NDPTL Director Interview)

NDPTL Priority: NDPTL Priority: The Barents LinkThe Barents Link

The Barents Link: Way to Asia The Barents Link: Way to Asia 800 km decrease in distance800 km decrease in distance

Northern Dimension Environmental Northern Dimension Environmental Partnership: Projects 2011Partnership: Projects 2011

NDEP: financingNDEP: financing

EU Strategy for the Baltic EU Strategy for the Baltic Sea Region 2009Sea Region 2009

What for? “The Baltic Sea Region is a highly heterogeneous area

in economic, environmental and cultural terms, yet the countries concerned share many common resources and demonstrate considerable interdependence. This means that actions in one area can very quickly have consequences for other parts, or the whole, of the region. In these circumstances, the area could be a model of regional co-operation where new ideas and approaches can be tested and developed over time as best practice examples” (European Commission Communication, 2009).

EU Strategy for the Baltic EU Strategy for the Baltic Sea Region 2009Sea Region 2009

European Parliament published a report in late 2006 calling for a strategy for the Baltic Sea Region.

On 14 December 2007, the European Council in its Presidency Conclusions invited the Commission to present a European Union strategy for the Baltic Sea region no later than June 2009.

EU Commission Communication 10 June 2009

EUSBSR ChallengesEUSBSR Challenges

To enable a sustainable environment To enhance the region’s prosperity To increase accessibility and

attractiveness To ensure safety and security in the

region.

EUSBSR: Priority AreasEUSBSR: Priority Areas 1. Nutrient inputs to the sea1. Nutrient inputs to the sea 2.Natural zones and biodiversity 2.Natural zones and biodiversity 3. Hazardous substances3. Hazardous substances 4. Model region for clean shipping4. Model region for clean shipping 5. Climate change5. Climate change 6.Internal market and cooperation in the customs and tax areas6.Internal market and cooperation in the customs and tax areas 7. Research and innovation7. Research and innovation 8. Entrepreneurship, SMEs and human resources8. Entrepreneurship, SMEs and human resources 9. Agriculture, forestry and fisheries9. Agriculture, forestry and fisheries 10. Energy markets10. Energy markets 11. Transport links11. Transport links 12. Education and youth, tourism, culture and health12. Education and youth, tourism, culture and health 13. Maritime safety and security13. Maritime safety and security 14. Maritime accident response capacity 14. Maritime accident response capacity 15. Cross border crime15. Cross border crime

ENVIRONMENTALLY DOMINATED AGENDAENVIRONMENTALLY DOMINATED AGENDA

Baltic Dimension of EU Baltic Dimension of EU Policies: Environmental AxisPolicies: Environmental Axis

ExternallyExternally:: - fighting climate change- fighting climate change - ensuring environmental leadership and- ensuring environmental leadership andprojecting environmental regimes worldwideprojecting environmental regimes worldwide - exporting “environmentalism” / related- exporting “environmentalism” / relatedtechnologies technologies InternallyInternally: : - prioritizing environment as an element of- prioritizing environment as an element ofsustainable development sustainable development - integrating environmental goals into- integrating environmental goals intoimplementation of other EU policiesimplementation of other EU policies

Lisbon TreatyLisbon Treaty

EnvironmentEnvironment – shared competence with – shared competence with member statesmember states

Conservation of biological marine resourcesConservation of biological marine resources (a (a special part of fishery policy) – exclusive special part of fishery policy) – exclusive competence of the EUcompetence of the EU

Integration (harmonisation) – priority on Integration (harmonisation) – priority on internal market/energyinternal market/energy

““The polluter should pay” (Article 191 EUFT)The polluter should pay” (Article 191 EUFT)

EU 2020 StrategyEU 2020 Strategy

Climate change / energyClimate change / energy greenhouse gas emissions reduction greenhouse gas emissions reduction

20%20% (or even (or even 30%30%, if the conditions are , if the conditions are right) right) lower than 1990lower than 1990

20% of energy to be received from 20% of energy to be received from renewable sourcesrenewable sources

20% increase in energy efficiency20% increase in energy efficiency

EU 2020 Strategy: EU 2020 Strategy: Sustainable GrowthSustainable Growth

more competitive low-carbon economy more competitive low-carbon economy protecting the environment, reducing emissions protecting the environment, reducing emissions

and preventing biodiversity loss and preventing biodiversity loss capitalizing on Europe's leadership in capitalizing on Europe's leadership in

developing new green technologies and developing new green technologies and production methods production methods

OutcomesOutcomes: energy security, climate change, : energy security, climate change, preserving natural resources as well as social preserving natural resources as well as social and economic benefits (boosting GDP growth, and economic benefits (boosting GDP growth, new jobs, global competitiveness)new jobs, global competitiveness)

EU 2020 strategy: EU 2020 strategy: Estonian national targetsEstonian national targets

Renewable energy – 25%Renewable energy – 25% COCO22 Emission +11% (in relation to 1990) Emission +11% (in relation to 1990) Energy consumption – 0.71 Mtoe (0.3% Energy consumption – 0.71 Mtoe (0.3%

of EU)of EU)

Environmental targets Environmental targets integration: transport policyintegration: transport policyEU TRANSPORT: 60% of oil consumption, target of EU TRANSPORT: 60% of oil consumption, target of

decreasing GHG emission 60% by 2050.decreasing GHG emission 60% by 2050.

WhiteWhite (strategy) (strategy) Paper on TransportPaper on Transport (2011): (2011): fuels, intermodality, operational measuresfuels, intermodality, operational measures

• -50% “conventional” fuel in urban transport by 2030 (full -50% “conventional” fuel in urban transport by 2030 (full elimination by 2050);elimination by 2050);

• 40-50% decrease of emissions in aviation and maritime 40-50% decrease of emissions in aviation and maritime transporttransport

• 30% of long-distance road traffic to be switched to 30% of long-distance road traffic to be switched to maritime and railways by 2030maritime and railways by 2030

• Medium-distance passenger traffic to rail by 2050Medium-distance passenger traffic to rail by 2050• Air, maritime and road management systemsAir, maritime and road management systems

Environmental targets Environmental targets integration: maritime policyintegration: maritime policy

Integrated Maritime Policy (2007)Integrated Maritime Policy (2007) “ “to face challenges of globalization to face challenges of globalization

and competitiveness, climate and competitiveness, climate change, degradation of the marine change, degradation of the marine environment, maritime safety and environment, maritime safety and security, energy security and security, energy security and sustainability”sustainability”

Maritime Transport Strategy (2009)Maritime Transport Strategy (2009) TargetTarget: zero-waste, zero-emission : zero-waste, zero-emission

maritime transportmaritime transport Support of IMO MARPOL sulphurSupport of IMO MARPOL sulphur limitations for ship fuel:limitations for ship fuel: 0

0,5

1

1,5

2

2,5

3

3,5

4

4,5

ECA Globally

2000

2010

2015

The EU’s Baltic Sea Strategy The EU’s Baltic Sea Strategy (2009): (2009): a macroregional dimension of EU a macroregional dimension of EU PoliciesPolicies 4 priorities: 4 priorities: environmental sustainabilityenvironmental sustainability, prosperity , prosperity

(economy), accessibility and attractiveness (energy and (economy), accessibility and attractiveness (energy and transport), safety and security. transport), safety and security.

Challenges and proposed responsesChallenges and proposed responses -- eutrophication eutrophication – reducing nutrient inflows (priority – – reducing nutrient inflows (priority –

removing phosphates from detergents);removing phosphates from detergents); - - biodiversitybiodiversity – reducing negative effects of fishing – reducing negative effects of fishing - - hazardous substanceshazardous substances – reduction of use – reduction of use - - pollution from shipspollution from ships – reducing water discharge, air – reducing water discharge, air

pollution, noise is getting a problempollution, noise is getting a problem - - climate changeclimate change – regional adaptation (vs. global fighting) – regional adaptation (vs. global fighting)

EU Baltic Sea Strategy:EU Baltic Sea Strategy:transport and transport and environmentenvironment

Support of railways: Nordic Triangle, Rail Support of railways: Nordic Triangle, Rail Baltica (TEN-T Priority Projects)Baltica (TEN-T Priority Projects)

EU Baltic Sea Strategy:EU Baltic Sea Strategy:transport and transport and environmentenvironment

Motorways of the Sea: providing Motorways of the Sea: providing transport transport intermodalityintermodality - strengthening - strengthening north-south ferry links: Karlskrona to north-south ferry links: Karlskrona to Klaipeda and Gdynia, Trelleborg to Klaipeda and Gdynia, Trelleborg to Sassnitz.Sassnitz.

Gdyna - KarlskronaGdyna - Karlskrona

MoS Klaipeda-Karlshamn: MoS Klaipeda-Karlshamn: to increase share from 18% to increase share from 18% to 71 % by 2025to 71 % by 2025

Green Transport Green Transport Corridors Corridors “ “To facilitate more traffic on existing corridors between major hubs, To facilitate more traffic on existing corridors between major hubs,

while encouraging environmental sustainability and energy efficiency” while encouraging environmental sustainability and energy efficiency”

Low impact for natural environmentLow impact for natural environment Energy EfficiencyEnergy Efficiency Complementarity of modesComplementarity of modes Infrastructure and facilities (ports, Infrastructure and facilities (ports,

terminals)terminals) Supply points (bio-fuels and hydrogen)Supply points (bio-fuels and hydrogen) Innovative management technologiesInnovative management technologies Harmonized rules and equal accessHarmonized rules and equal access

Green corridors: basic Green corridors: basic conceptsconcepts Co-modalityCo-modality Support of environmentally friendly modes (sea Support of environmentally friendly modes (sea

and rail)and rail) Intellectual Transport SystemsIntellectual Transport Systems Spatial developmentSpatial development Internalisation of external costsInternalisation of external costs Concentration of cargo on long-distance legsConcentration of cargo on long-distance legs Eco-labellingEco-labelling Incorporating Russia, Belarus and UkraineIncorporating Russia, Belarus and Ukraine

EU: Energy and EU: Energy and EnvironmentEnvironment

Emission Trade System since 2005.Emission Trade System since 2005. Covering energy-intensive enterprisesCovering energy-intensive enterprises Multiannual national plans (2008-2012)Multiannual national plans (2008-2012) The main limitations are imposed on energy The main limitations are imposed on energy

installations (in Estonia – 42 of total 50, 64 % installations (in Estonia – 42 of total 50, 64 % of total energy-related 86% of GHG emissions)of total energy-related 86% of GHG emissions)

Kyoto Commitment – 8% reduction by 2020Kyoto Commitment – 8% reduction by 2020 National Program Commitment – 21% by 2010 National Program Commitment – 21% by 2010

to 1999to 1999

ChallengesChallenges

Auctioning emission allowances since 2013Auctioning emission allowances since 2013 Decreasing emission allowances 1.74 % Decreasing emission allowances 1.74 %

annually in 2013-2020annually in 2013-2020 Accession treaty obligation on Narva Electric Accession treaty obligation on Narva Electric

Power Plants Power Plants Russia is not participating in ETS yetRussia is not participating in ETS yet Transport issue – aviation covered since 2013Transport issue – aviation covered since 2013

Emissions trading effectiveness in Emissions trading effectiveness in Estonia: Conclusions of State Audit Estonia: Conclusions of State Audit OfficeOffice EU Emissions Trading has not brought about reduction in GHG

emissions due to the following: –The MoE drafted the two national allocation plans based on

economic interests of companies and failed to take into account the need to reduce GHG emissions;

–The money obtained from the sales of allowances was not used for investments into environmental technologies:

- During the 2005-2007 trading period the state energy monopoly sold allowances for approximately128 mln euros. The government decided to use these revenues for general state budget purposes.

NB: In April 2011Commission rejected Estonia's revised National Allocation Plan, NAP for 2008-2012 concerning carbon dioxide (CO2) emission allowances. The plan was rejected on several grounds but in particular because the average total quantity of allowances Estonia proposed to allocate to its installations over the period was too high.

HELCOM HELCOM (Baltic Marine Environment Protection (Baltic Marine Environment Protection Commission)Commission)

PrioritiesPriorities:: - Environmental monitoring and assessment- Environmental monitoring and assessment - Combating eutrophication caused by excessive - Combating eutrophication caused by excessive

nutrient loads from municipal wastewater and nutrient loads from municipal wastewater and agricultureagriculture

- Preventing pollution by hazardous substances- Preventing pollution by hazardous substances - Improving navigational safety and accident - Improving navigational safety and accident

response capacityresponse capacity - Protecting and conserving marine and coastal - Protecting and conserving marine and coastal

biodiversitybiodiversity MembersMembers: 9 Baltic States + European Union: 9 Baltic States + European Union

HELCOM: Legal BaseHELCOM: Legal Base Convention 1974 (fully ratified by 1984)Convention 1974 (fully ratified by 1984) - political role in relations between USSR and the West;- political role in relations between USSR and the West; - research and technical support;- research and technical support; - national concerns vs. regional approach as a driver of environmental - national concerns vs. regional approach as a driver of environmental

cooperationcooperation Convention 1992Convention 1992 - changed political realities: the end of the Cold War and active - changed political realities: the end of the Cold War and active

environmental movements;environmental movements; - accumulated scientific knowledge;- accumulated scientific knowledge; - inland water included (sovereignty issue);- inland water included (sovereignty issue); - more active collaboration with various stakeholders (vs. previous - more active collaboration with various stakeholders (vs. previous

approach of attracting professional environmentalists from narrow approach of attracting professional environmentalists from narrow group of international organizations);group of international organizations);

- precautionary principle- precautionary principle - use of best environmental practices and best environmenetal - use of best environmental practices and best environmenetal

technologies technologies - “polluter should pay” principle- “polluter should pay” principle

HELCOM: Baltic Sea Action PlanHELCOM: Baltic Sea Action Plan

Priority 1. Fighting EutrophicationPriority 1. Fighting Eutrophication Goals: Good environmental status Goals: Good environmental status - decrease of inputs of phosphorus to 21,000 - decrease of inputs of phosphorus to 21,000

(from 36,000) tonnes and nitrogens 600,000 (from 36,000) tonnes and nitrogens 600,000 (from 737,000) tonnes;(from 737,000) tonnes;

- - improve the treatment of wastewater, including improve the treatment of wastewater, including increasing phosphorous removal from 80% to increasing phosphorous removal from 80% to 90%;90%;

- - substituting phosphorous in detergents.substituting phosphorous in detergents.

CountryCountry Phosphorus (tonnes) Nitrogen (tonnes)

Denmark 16 17,210

Estonia 220 900

Finland 150 1,200

Germany 240 5,620

Latvia 300 2,560

Lithuania 880 11,750

Poland 8,760 62,400

Russia 2,500 6,970

Sweden 290 20,780

Transboundary 1,660 3,780

Russian Baltic Policy: Russian Baltic Policy: foreign policy tools foreign policy tools disposeddisposed

- Coercion- Coercion

- Engagement and Reassurance- Engagement and Reassurance

- Differentiation- Differentiation

- Marginalization- Marginalization

- Pragmatization/economization- Pragmatization/economization

- Peripherization/negligence- Peripherization/negligence

The main problemsThe main problems

Withdrawing Russian troops (1993-1994);Withdrawing Russian troops (1993-1994); NATO and EU enlargement NATO and EU enlargement Border agreementsBorder agreements Status of Russian-speaking minorities (Latvia Status of Russian-speaking minorities (Latvia

and Estonia)and Estonia) Kaliningrad (Lithuania)Kaliningrad (Lithuania) Investment into strategic areas: energy and Investment into strategic areas: energy and

transittransit Energy securityEnergy security

The most problematic The most problematic relationsrelations

Latvia – before 2007Latvia – before 2007 Estonia – 2007-2011Estonia – 2007-2011 Lithuania – 2011…Lithuania – 2011…

Evolution and stagesEvolution and stages

Tactical alliance – 1990-1991Tactical alliance – 1990-1991.. - Common efforts in fighting Soviet Center- Common efforts in fighting Soviet Center - Democratic movement in Russia and its - Democratic movement in Russia and its

support of Baltic autonomiessupport of Baltic autonomies - Personal links of Baltic leaders with Yeltsin, his - Personal links of Baltic leaders with Yeltsin, his

meeting with 3 Presidents meeting with 3 Presidents - Mutual recognition – the Treaties on - Mutual recognition – the Treaties on

Establishing Interstate Relations (1991)Establishing Interstate Relations (1991) - Undermining Soviet economic blockade- Undermining Soviet economic blockade

Evolution and stagesEvolution and stages

Accepting independenceAccepting independence (1992-1996) (1992-1996) - Withdrawing Russian troops;- Withdrawing Russian troops; - Elements of differentiation (Lithuania received - Elements of differentiation (Lithuania received

advanced withdrawing);advanced withdrawing); - Importance of transit – Russia lost its transit - Importance of transit – Russia lost its transit

facilities;facilities; - Attempts of coercion to get concessions (winter - Attempts of coercion to get concessions (winter

1992-1993, energy sanctions);1992-1993, energy sanctions); - Dissatisfaction with minority policies;- Dissatisfaction with minority policies; - Rejection of territorial claims (Kaliningrad, - Rejection of territorial claims (Kaliningrad,

Petseri, Abrene).Petseri, Abrene).

Evolution and stagesEvolution and stages Differentiation 1996-1998Differentiation 1996-1998 - “Long-term Russia’s Foreign Policy Line towards the Baltic - “Long-term Russia’s Foreign Policy Line towards the Baltic

States”, 1996States”, 1996 - conditioned development of economic cooperation and

border settlement from resolution of political problems, first of all, status of Russian-speaking minority rights in Latvia and Estonia and respect of Russian interests by Governments of the Balts (NATO membership);

- 1997 - elements of engagement and reassurance in security – Russia’s proposals on multilateral security guarantees

- 1997 – Russian-Lithuanian Border Agreement signedLITHUANIA as an example of good relations with Russia

Evolution and stagesEvolution and stages

Peripherization 1998-2000Peripherization 1998-2000 - Economic crisis in Russia (Default August - Economic crisis in Russia (Default August

1998)1998) - Political instability – 5 governments in Russia - Political instability – 5 governments in Russia

changedchanged - Inability to coordinate foreign policy with the - Inability to coordinate foreign policy with the

interests of large companiesinterests of large companies - 1999 - passive reaction to deal on “Mazeikiu - 1999 - passive reaction to deal on “Mazeikiu

nafta” refinery in Lithuanianafta” refinery in Lithuania - 2000 – the Law on Compensation of Soviet - 2000 – the Law on Compensation of Soviet

Damage (Lithuania)Damage (Lithuania)

Evolution and stagesEvolution and stages

Economization and “pragmatization”Economization and “pragmatization” 2000-2004 2000-2004 - Putin-I attempts of improving relations with the West- Putin-I attempts of improving relations with the West - Moderate political forces in power in the Baltic States- Moderate political forces in power in the Baltic States - Controversial consequences of NATO/EU enlargement: - Controversial consequences of NATO/EU enlargement:

rhetoric “red lines” and rhetoric “red lines” and de factode facto recognition recognition - Purchase of “Mazeiku nafta” by YUKOS- Purchase of “Mazeiku nafta” by YUKOS - Kaliningrad Transit and ratification of Border Treaty with - Kaliningrad Transit and ratification of Border Treaty with

LithuaniaLithuania - Russia actively develops its oil transit facilities- Russia actively develops its oil transit facilities - 2002-2003 Closed oil pipeline to Ventspils- 2002-2003 Closed oil pipeline to Ventspils

Evolution and stagesEvolution and stages

MarginalizationMarginalization 2005-2007 2005-2007 Worsening relations of Russia and the WestWorsening relations of Russia and the West EU and NATO enlargement: the Baltic States serve a role of EU and NATO enlargement: the Baltic States serve a role of

permanent critics of Russia, as well as try to “export democracy” permanent critics of Russia, as well as try to “export democracy” to the Post-Soviet Spaceto the Post-Soviet Space

Sell of Mazaiku nafta to Polish PKN Orlen and closing “Druzhba” Sell of Mazaiku nafta to Polish PKN Orlen and closing “Druzhba” pipelinepipeline

2005 – Only Latvian President visited 502005 – Only Latvian President visited 50thth Anniversary of Great Anniversary of Great Victory Ceremony in MoscowVictory Ceremony in Moscow

The Attempts of Estonian and Latvian Parliaments to stop border The Attempts of Estonian and Latvian Parliaments to stop border treaty ratificationtreaty ratification

Growing importance of historical debate (different interpretations Growing importance of historical debate (different interpretations and “historical policy” in bilateral relationsand “historical policy” in bilateral relations

Bronze Soldier (April 2007)Bronze Soldier (April 2007)

Evolution and stagesEvolution and stages

Selective engagementSelective engagement – 2007…. – 2007…. - Decreasing interdependence in transit – Russia received transit - Decreasing interdependence in transit – Russia received transit

facilities for oil, developing Ust-Luga and other ports;facilities for oil, developing Ust-Luga and other ports; - The issue of Russian-speaking population was separated from the - The issue of Russian-speaking population was separated from the

general agenda of bilateral relations;general agenda of bilateral relations; - Border agreement with Latvia signed (2007), visit of Latvian PM - Border agreement with Latvia signed (2007), visit of Latvian PM

A.Kalvitis to Moscow and launch of normalization in bilateral relations;A.Kalvitis to Moscow and launch of normalization in bilateral relations; - Continuing deterioration in relations with Estonia;- Continuing deterioration in relations with Estonia; - Stagnation in relations with Lithuania, failed efforts of the New - Stagnation in relations with Lithuania, failed efforts of the New

Lithuanian President Dalia Grybauskaite to improve them;Lithuanian President Dalia Grybauskaite to improve them; - Energy security in bilateral agenda – 3- Energy security in bilateral agenda – 3rdrd EU Gas Package, Integration EU Gas Package, Integration

of electricity markets;of electricity markets; - Hard security issues – growing accusations in authoritarianism and - Hard security issues – growing accusations in authoritarianism and

unpredictability towards Russia. At the same time, Latvia and unpredictability towards Russia. At the same time, Latvia and Lithuania abrogated compulsory military service – orientation on Lithuania abrogated compulsory military service – orientation on NATO collective defence and overseas operations.NATO collective defence and overseas operations.