Czech Protesters Rail Against Inflation, Sanctions and the Ukraine Proxy War

Only a handful of European countries have refused to impose sanctions on the Russian Federation after the United States called for them once Moscow’s “special military operation” in Ukraine began on February 24. Serbia is one such outlier. As a result, the West is pressuring the Balkan nation to change its foreign-policy vector and pick a side in the Russo-Ukrainian conflict.

Ever since the war in Ukraine broke out, Serbia has been trying to preserve its neutral position. Belgrade condemned the Russian invasion, but did not join in on anti-Russia sanctions. That led Moscow to keep Serbia off its list of “unfriendly countries.” That means the Balkan nation—unlike European Union members—can continue purchasing Russian natural gas and oil in U.S. dollars, rather than opening ruble accounts at Gazprombank, a privately owned Russian bank. The problem, however, is the EU could indirectly punish Serbia for not imposing sanctions.

According to reports, transport of crude oil from Croatia for Serbian oil corporation Naftna Industrija Srbije (NIS) will cease May 15 due to the EU’s sanctions against Russian companies. Russia’s Gazprom Neft owns 56.15 percent of shares, while the Serbian state owns 29.87 percent. The fourth package of EU sanctions prohibits European companies from cooperating with a number of Russian companies, including Gazprom Neft and its subsidiaries, in which Russia has more than 50 percent ownership.

Getting Around Sanctions

What are Serbia’s options? According to Jelica Putnikovic, editor in chief of the Energija Balkana web portal, the alternative to oil supplies from Croatia is transporting crude oil by rail from the Adriatic ports of Durres in Albania and Bar in Montenegro, or by barge from the Greek port of Thessaloniki and the Black Sea port of Romania’s Constanța.

“It is, however, a longer and more expensive transport. The good thing is that Romania and Bulgaria still have not announced that they plan to impose similar sanctions on NIS, which opens the possibility for various oil deliveries to Serbia,” Putnikovic stressed in an interview with a Serbian publication. Her analyses show Serbia produces about 23 percent of its oil needs, while 45 percent of imports come from Iraq, 10 percent from Kazakhstan, 1 percent from Norway and about 16 percent from Russia. Russian gas is relatively cheap for Serbia. It costs $270 per 1,000 cubic meters, while gas prices broke all records at the end of February in Europe and reached $3,900 per cubic meters.

“For us, oil and gas supplies are the most important issues,” Vladimir Djukanovic, a Serbian lawmaker and the top official of the ruling Serbian Progressive Party (SNS) said in an interview with Toward Freedom. The SNS won the majority of parliamentary seats in elections held Sunday, and the party’s leader, Aleksandar Vucic has been re-elected for a second presidential term.

Djukanovic claims Serbia—despite strong pressure from the EU—does not intend to join anti-Russia sanctions.

“If the EU decides to impose energy sanctions on Russia, then we can think about joining sanctions,” Djukanovic added.

Despite sanctions, the EU continues to import Russian oil and gas, although it has radically cut economic ties with Moscow. Presently, the only European air corridor left open to Russia is via Serbia, which is now acting as a gateway. However, Air Serbia—the country’s national airline—has been facing anonymous bomb threats on an almost daily basis. “The author has expressed their dissatisfaction with Serbia’s diplomatic relations with Russia,” reported one news agency on an alleged threat.

“Serbia is politically very important to the West. The EU is not pressuring other European countries—namely Moldova, Georgia and Turkey—to impose sanctions on Russia, because those nations already pursue unfriendly and hostile policies toward Russia,” Djukanovic said. “We have good relations with Moscow, and they aim to portray us as an enemy of Russia.” He added Belgrade must preserve the military neutrality it declared in 2007 in response to the 1999 NATO bombing of Yugoslavia.

In spite of that, the Serbian Army cooperates with the United States’ Ohio National Guard. Moreover, according to Gabriel Escobar, the U.S. State Department’s deputy assistant secretary overseeing U.S. policy toward the countries of the so-called “Western Balkans,” Serbian Armed Forces have conducted far more military exercises with NATO members than with Russia.

Serbia’s Uncomfortable Position

But can Serbia really preserve its military neutrality? According to Serbian journalist and analyst Zeljko Pantelic, if Belgrade continues to insist on its “non-aligned” status, it risks cooling down relations with the EU.

“Brussels expects Serbia to harmonize its foreign policy with that of the EU,” Pantelic explained. “If Belgrade, however, attempts to destabilize the region at the expense of Russia, and agrees to be used as the Kremlin’s ‘useful idiot’, the consequences for Serbia will be serious.”

Serbian Parliament Speaker Ivica Dacic, on the other hand, insists imposing sanctions on Russia would be tantamount to “political suicide.”

“If we are ready to give up Kosovo, then we can impose sanctions on Russia,” Dacic said in an interview. “But if we are not ready, then we cannot.”

Indeed, Serbia relies on Russia’s veto power in the United Nations Security Council, as the only way to prevent the self-proclaimed Republic of Kosovo—which is the subject of a long-running political and territorial dispute between the Serbian government and ethnic Albanian Kosovo leaders based in the city of Pristina—from becoming a UN member state. Pantelic, however, believes Belgrade’s justification for not imposing sanctions on Russia because of Kosovo is ridiculous. “Only people acting in bad faith, or those who are total illiterates in geopolitics, can believe in it.”

For Serbia, energy cooperation with Russia plays a very important role—possibly even more important than the Kosovo issue—given the country, according to Vucic’s recent statement, depends 100 percent on Russian gas. Still, in Pantelic’s opinion, Serbia will have to carry out “de-russification” of the Kremlin-owned companies operating in the Balkan nation.

“Otherwise, Belgrade will de facto impose sanctions on itself, because Russian-owned companies in Serbia will not be allowed to do business with the EU,” Pantelic concluded.

One thing is for sure: If Belgrade joins anti-Russia sanctions, or decides to nationalize NIS, relatively cheap Russian gas will become a thing of the past.

Nikola Mikovic is a Serbia-based contributor to CGTN, Global Comment, Byline Times, Informed Comment, and World Geostrategic Insights, among other publications. He is a geopolitical analyst for KJ Reports and Enquire.

Editor’s Note: This article originally appeared in Peoples Dispatch.

The head of the Syrian Arab Red Crescent, Khaled Hboubati, demanded on Tuesday, February 7, that Western countries, specifically the United States and its allies, lift their siege and sanctions on Syria so that rescue and relief work can proceed unimpeded, after the country was devastated by a powerful earthquake on Monday.

“We need heavy equipment, ambulances and fire fighting vehicles to continue to rescue and remove the rubble, and this entails lifting sanctions on Syria as soon as possible,” Hboubati said at a press conference on Tuesday, as reported by the Syrian Arab News Agency (SANA).

A powerful earthquake registering a magnitude of 7.8 struck Turkey and Syria on Monday. Over 5,000 people have been reported dead so far. In Syria alone, the death toll was 1,602 on Monday. These numbers are only expected to rise as a large number of people are suspected to be still buried under the debris of houses that collapsed in the earthquake and its aftershocks.

Kahramanmaraş, a city in Turkey, was reported to be the epicenter of the earthquake, and the nearby city of Gaziantep—home to millions of Syrian refugees—was reportedly hit the hardest. Relief and rescue operations in Turkey have been affected by bad weather as several of the affected areas have received heavy rain and snowfall on Monday and Tuesday.

Syria’s northern provinces such as Idlib, Latakia, Hama, and Aleppo have also been badly affected by the earthquake. Some of the affected areas in Idlib and Aleppo are under rebel control and densely populated by refugees from other parts of the country.

Though several countries including the United States and its allies have extended their support to Turkey in its relief and rescue work, they have refused to extend similar assistance to Syria. The U.S. State Department made it clear on Monday that it was only willing to support some work carried out in Syria by NGOs, but that it would have no dealings with the Bashar al-Assad government. “It would be quite ironic—if not even counterproductive—for us to reach out to a government that has brutalized its people over the course of a dozen years now,” State Department spokesperson Ned Price said, as quoted by Al Jazeera.

On Monday, the Syrian government had issued an appeal to the international community asking for help. Syrian Foreign Minister Faisal Mekdad is quoted in Al-Mayadeen as having said that his government was willing “to provide all the required facilities to international organizations so they can give Syrians humanitarian aid.”

Sanctions Hamper Relief and Rescue Work

Claiming that “Current U.S. sanctions severely restrict aid assistance to millions of Syrians,” the American Arab anti-Discrimination Committee (ADC) asked the U.S. government on Monday to lift its sanctions. While it said that the NGOs working on the ground were doing a commendable job, it also said that the “lifting of the sanctions will open the doors for additional and supplemental aid that will provide immediate relief to those in need.”

The U.S. Congress had adopted the so-called Caesar Act in 2020, according to which any group or company doing business with the Syrian government faces sanctions. The act extends the scope of the previously existing sanctions on Syria, imposed by the U.S. and its European allies since the beginning of the war in the country in 2011.

The impact of sanctions on Syria’s health and other social sectors and its overall economic recovery have been criticized by the UN on several occasions in the past. The UN has also demanded that all unilateral punitive measures against Syria be lifted.

Meanwhile, countries such as China, Iran, Russia, Cuba, Algeria, and the UAE, among others, have expressed their willingness to provide necessary support to Syria, and have sent relief materials already.

Al-Mayadeen has however reported that the delivery of international aid, as well as the speed of relief and rescue work in Syria, continue to be impeded as the Damascus international airport is not fully operational at the moment. The airport was hit by an Israeli missile on January 2 and repair work is not yet complete.

While the Russian “special military operation” in Ukraine turns three weeks old today, energy-rich Azerbaijan is trying to preserve good ties with both Moscow and Kyiv.

Although the situation worries the Caucasus nation snuggled along the western shores of the Caspian Sea, the Azerbaijani government—based in the capital of Baku—tends toward preserving its neutrality and it potentially benefits from exporting additional gas to Europe.

Immediate Impact of War

Two days before the invasion, Azerbaijan signed an alliance agreement with Russia. The two countries are now de facto allies, although their parliaments still have not ratified the deal. According to the document, Moscow and Baku intend to deepen cooperation in the energy sector and strengthen military ties. It is worth noting Russia is already an ally of Azerbaijan’s arch-enemy, Armenia, and the agreement Russian President Vladimir Putin and his Azeri counterpart, Ilham Aliyev, signed in Moscow on February 22 is expected to reinforce Moscow’s positions in the South Caucasus.

Still, Russia’s isolation in the international arena could have an impact on its relations with Azerbaijan. Baku already has suspended all flights to the Russian Federation, and fears have emerged that remittances the approximately 650,000 Azeris working in Russia send home will significantly decline. Moreover, Russia is Azerbaijan’s top import partner. If Moscow eventually limits exports of various goods, including food, Baku likely will have to strengthen economic and political ties with another ally, Turkey.

Double-Edged Sword

It is not a secret Ankara supplied Baku with sophisticated Bayraktar drones prior to the 44-day war between Azerbaijan and Armenia over the Nagorno-Karabakh region. This landlocked mountainous terrain is internationally recognized as part of Azerbaijan, although it was under the control of Armenian forces for more than two decades. It is believed the Turkish-made weapons were a game changer in the war. As a result of the conflict, Baku restored its sovereignty over large portions of the mountainous territory, as well as surrounding areas, and some 2,000 Russian peacekeepers were deployed to the region. More importantly, Azerbaijan and Turkey became official allies, after Aliyev and Turkish President Recep Tayyip Erdoğan signed in June the Shusha Declaration.

Azerbaijan is now an ally of both Russia and Turkey, which could be a double-edged sword for Baku. Although the Caucasus nation supports Ukraine’s territorial integrity, it has avoided condemning Russia’s actions or imposing sanctions on the Russian Federation.

“We have never taken decisions on imposing sanctions on any country,” Azerbaijani Deputy Foreign Minister Elnur Mammadov told Toward Freedom in an interview. He pointed out he does not expect any pressure from the West for Azerbaijan to impose sanctions on Moscow.

Fueling Demand

The European Union expects Azerbaijan to increase gas supplies to the continent, especially if Moscow eventually decides to turn off the taps. Indeed, the EU will need Azerbaijan’s energy resources to cope with possible Russian gas disruptions. But the problem is the country now does not have much more gas to export.

“In 2021, we exported 8.2 billion cubic meters of natural gas to Europe,” said Orkhan Zeynalov, the head of the International Cooperation Department of Azerbaijan’s Ministry of Energy, in an interview with Toward Freedom. “This year, we’re planning to increase the export up to 9.1 billion cubic meters.”

Such a small amount will not meet European needs for energy. In the long term, however, Azerbaijan will be able to provide more gas to Europe if it manages to increase the share of renewable energy sources for electricity production. Baku aims to turn Nagorno-Karabakh into a “green energy zone,” where foreign corporations, such as United Kingdom-based BP and United Arab Emirates-based Masdar, plan to build solar power plants. In addition, Saudi Arabian utility company Acwa Power is expected to build a 240-megawatt wind turbine farm in Azerbaijan, which should reduce the amount of gas the country currently uses.

Nakhchivan Corridor

In 2021, Azerbaijan increased its gas exports by nearly 40 percent, but the country is unlikely to ever replace Russia as Europe’s major energy supplier. Still, the growing demand for Azerbaijan’s gas will almost certainly have a positive impact on the country’s budget. Baku is expected to invest money in the construction of the Nakhchivan corridor, also known as Zangezur corridor, which seems to be a top priority for the Caucasus nation.

“We are already building 110 kilometers (68 miles) of the railway, and 124 kilometers (77 miles) of the highway in the region,” Mammadov said. “Our plan is to finish the construction by the end of 2023.”

Why is this transportation network so important for Azerbaijan? The Nakhchivan corridor will allow the energy-rich nation a land connection with its exclave, the Nakhchivan Autonomous Republic. At the same time, it will connect Azerbaijan with its ally, Turkey. The challenge, however, is 45 kilometers (28 miles) of the road will have to go through Armenian territory. Yerevan, unlike Baku, does not seem to be in a hurry to finish construction of the corridor, even though the railroad portion will connect Armenia with its ally, Russia, through Azerbaijan’s mainland. Yerevan, however, seems to be more interested in the construction of the North-South road corridor that will connect Armenia with Russia, through Georgia.

Georgia did not impose sanctions on Russia, even though the two nations fought a brief war in 2008. That is why the Kremlin does not see the former Soviet republic as an “enemy country,” which leaves room for normalization of relations between Moscow and Tbilisi. In the long-term, such a development would be beneficial for Armenia, given it would secure a land connection with Russia.

Although Moscow reportedly supports the project, and is actively dealing with issues on unblocking transport links in the region, it is not very probable Yerevan will complete the construction of its section of the corridor any time soon, if it all. Quite aware of that, Azerbaijan reportedly decided to bypass Armenia and connect its main territory with Nakhchivan via Iran. On March 11, Baku and Tehran signed a Memorandum of Understanding on establishing communication links in the region. Indeed, such a move could create a new geopolitical reality in the Caucasus.

But as long as the Russia-Ukraine conflict goes on, the final implementation of all the deals in the region will likely remain on hold. For the time being, both Azerbaijan and Armenia are expected to preserve good relations with Moscow, hoping the war in Ukraine will not spill over into the South Caucasus, an area the Kremlin sees at its “near abroad.”

Nikola Mikovic is a Serbia-based contributor to CGTN, Global Comment, Byline Times, Informed Comment, and World Geostrategic Insights, among other publications. He is a geopolitical analyst for KJ Reports and Enquire.