By Dr. Mamuka Tsereteli

July 12, 2023

American Foreign Policy Council Insights

Last year, more than a million people left Russia, marking what is likely the largest yearly emigration in recorded history. By way of comparison, emigration from Russia between 1917 and 1922, following the Bolshevik Revolution and the country’s ensuing civil war, totaled 1.5 million over half-a-decade. Fear of conscription into the Kremlin’s “special military operation” against Ukraine was a principal driver for last year’s exodus. The result has been a major outflow of younger and well-educated people in high-value industries– with significant long-term implications for both Russia’s economy and its society.

THE SHAPE OF THE EXODUS

Since the start of Russia’s invasion of Ukraine in February 2022, there have been two major waves of emigration. The first took place mostly during March 2022, and included wider segments of Russian society: from those who disapproved of the war to those who had pragmatic reasons, like jobs related to Western companies which they did not want to lose, to a larger group that was afraid they would be called upon to serve in Ukraine. The second, which started after Russian President Vladimir Putin’s September 2022 announcement of a “partial mobilization” to beef up Russia’s military ranks, was more targeted in nature and made up predominantly of those seeking to avoid the draft. 

According to a recent study of the first wave of migrants, the average age was 32 – notably younger than the average age of the general Russian population (46). Among migrants, 86 percent held higher education degrees, as compared to a 27 percent average within the Russian population. Moreover, 27 percent of them could afford to buy car, compared to only 4 percent of ordinary Russians, suggesting that those migrants had better than average incomes while in Russia. Specifically, according to the Russian government, about 10 percent of the overall IT workforce (approximately 100,000) left the country in 2022, and have not returned.

Where have these immigrants headed? Russia's non-EU neighbor states have been the primary destinations. While the numbers are, by their nature, imprecise, the majority of those who have emigrated to date appear to have settled in Kazakhstan, Turkey, Georgia, and Armenia. Smaller numbers, meanwhile, have migrated to the EU, Israel, Kyrgyzstan and the U.S., as well as places like Serbia, Mongolia, and Argentina.

Notably, this trend has created a strong countercurrent. Finland, the Baltic states and Poland all enacted visa bans on Russian citizens in September 2022, while the EU as a whole has instituted restrictions on entry to Russians. 

RISKS AND REWARDS

The out-migration outlined above will have a lasting impact on the Russian economy for years to come. Even before the start of Putin’s war, the national economy was facing an acute labor shortage as a result of long-term demographic trends, as well as a “brain drain” of skilled workers which has plagued the country since the 1990s. Now, the war-driven migration of educated Russians is making matters much, much worse. 

This wave of migration will also have important and lasting impacts on the host countries where these Russians settle. On a positive note, they bring with them money and skills, thus contributing to local economies. But, since they tend to be wealthier than the majority of local populations, these migrants will invariably increase demand on local markets, thereby affecting prices. They have also caused serious pressure on real estate markets in host countries. Local labor trends are being affected, too; since not all of these migrants have jobs with Western companies, and they do not rank as the wealthiest Russians (those with unlimited financial resources), they gradually will need to find jobs in their host countries, increasing pressure on already uneasy labor markets in the process.

At the same time, these migrants bring with them both immediate and longer-term risks. First off, most of those who left Russia following the invasion of Ukraine did not do so because of their political convictions, or disagreements with the policies of President Putin. Rather, the great majority were escaping mobilization, and are merely draft dodgers. In other words, these Russians still rank as patriots, and so raise a real political concern. If allowed to integrate in the new host nations, these migrants will gradually gain electoral power, eventually impacting both domestic and international priorities, particularly in countries with small populations and narrow, contested elections, such as Armenia and Georgia.  

Secondly, some of these migrants can be expected to already have connections with Russian security agencies, or to become targets of Russian recruitment in the future. After all, most will interact with their fellow Russian migrants, and some are already building lives, businesses and communities in host countries. Russia’s security services will have great interest in penetrating those communities, both to monitor the state of the opposition to the current regime in Moscow, and in order to manipulate local opinion. These communities could also easily become cells for espionage operations or instruments for Russian soft power projection down the road.

These are real and tangible threats which require sustained attention from the national security apparats of countries that are hosting Russian migrants now or will do so in the future. Moreover, the size of this potential problem could grow precipitously, depending on what course the Ukraine war takes – and the methods the Putin regime resorts to – in the weeks and months ahead. 

Mamuka Tsereteli is Senior Fellow for Eurasia at the American Foreign Policy Council, and a Senior Fellow at AFPC’s Central Asia-Caucasus Institute.

Published in Staff Publications

Join the spring 2023 Rumsfeld Foundation's Central Asia, Mongolia, the Caucasus and Afghanistan (CAMCA) fellows for a presentation on the regional economic and political implications of Russia's war in Ukraine. Speakers will examine various strategies to better protect their sovereignty, independence and territorial integrity and improve conditions for further economic development. Register for this in-person event to discuss these issues and learn why the U.S. should support the CAMCA countries in this challenging international environment.

Moderator: S. Frederick Starr, Chairman, Central Asia-Caucasus Institute at theAmerican Foreign Policy Council

When: Tuesday April 25, 2023 - 3:00-4:30 PM EST

Where: American Foreign Policy Council, 509 C Street, NE, Washington, DC 20002

This email address is being protected from spambots. You need JavaScript enabled to view it.?subject=CAMCA%20Forum%20Registration">Register via email

 

Published in Forums & Events
Thursday, 30 March 2023 16:51

Promise and Peril in the Caucasus

By Svante Cornell

March 30, 2023

https://www.afpc.org/publications/articles/promise-and-peril-in-the-caucasus

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On January 27th, a gunman entered Azerbaijan’s embassy in Tehran, Iran, killed the embassy security officer and wounded two others. The episode received only fleeting coverage in the international media. In the wake of the incident, Azerbaijan’s President, Ilham Aliyev, openly accused “some of the branches of the Iranian establishment” of being responsible for the attack, and Baku promptly evacuated its embassy staff and dependents. It was a clear sign of the frictions between Azerbaijan and its not-so-friendly neighbor, Iran. 

To be sure, relations between the two countries had deteriorated sharply since the fall of 2020, when Azerbaijan, using mainly Turkish and Israeli weaponry, succeeded in taking back territories long occupied by regional rival Armenia. In that conflict, Iran had played a distinctly unhelpful role, seeking to stall Azerbaijan’s military advances and providing covert support for Armenia. But the incident itself, as well as its fallout, is indicative of a larger realignment of power politics now underway in Eurasia – one with immense implications for U.S. interests. 

Over the past two years, regional events have highlighted the importance of the Caucasus, the narrow isthmus between Iran and Russia that connects Europe to Central Asia through the Black and Caspian seas. America’s ill-conceived withdrawal from Afghanistan shut down hopes that landlocked Central Asian states would be able to open transport routes through that country, thereby connecting to the Indian subcontinent and the Indian ocean. Then, Russia’s invasion of Ukraine abruptly shut down the land transport corridor linking China to Europe through Kazakhstan, Russia and Belarus. Suddenly, the only land route linking China and Central Asia to Europe is the one that passes through the Caucasus.

But while America has paid increasing attention to Central Asia in recent years – Secretary of State Antony Blinken visited the region in February – it has all but ignored the three countries of the Caucasus. This, in spite of the region’s growing importance in relation to Central Asia, and to the countering of Iran.

Indeed, the Caucasus is a region where alignments don’t fit easily into preconceived notions. Iran has supported Christian Armenia against Muslim Azerbaijan, largely because up to a third of Iran’s own population consists of Turkic-speaking Azerbaijanis, whom Iran fears may seek to separate and join up with their northern brethren. Conversely, Israel has developed strong relations with Azerbaijan, capitalizing on the staunchly secular nature of Azerbaijani society and its government’s efforts to promote inter-religious harmony. Israeli drone technology, for instance, was critical to Azerbaijan’s victory in the 2020 war.

Turkey’s shift has been dramatic, too. A decade ago, Islamist impulses led the Turkish government of President Recep Tayyip Erdogan to pursue an accommodation with Iran while expanding the country’s stature in the Middle East. Turkey’s support for political Islam, in turn, led to the collapse of its relations with Israel, Egypt, Saudi Arabia and the United Arab Emirates. But the war in Syria put Turkey and Iran on a collision course, while changing domestic politics over the past half decade have led Istanbul to adopt a foreign and security policy heavily influenced by the nationalist (rather than Islamist) preferences.

As a result, Turkey has mended fences with Arab nations and with Israel – a process that has been facilitated by Azerbaijan, which managed to keep excellent relations with both Jerusalem and Ankara throughout. More important, from an American perspective, is the fact that Ankara has emerged as the strongest regional counterweight to Iran. Last December, the Turkish defense minister supervised joint military exercises along the Azerbaijani border with Iran, responding to drills that Tehran had organized only weeks prior in which Iranian forces practiced an invasion of Azerbaijan. Turkey and Azerbaijan now have a defense pact – something that has enabled Baku to speak up against Tehran in ways that were unthinkable a year ago.

Then there is Armenia. While Turkey and Azerbaijan are joining forces with Israel to counter Tehran, Yerevan finds itself stuck in an entente with both Tehran and Moscow dating back to the 1990s. Armenian Prime Minister Nikol Pashinyan has making noises about escaping Russia’s orbit of late, launching overtures to the U.S. and the European Union. But Russian influence in Armenia’s national security bureaucracy remains strong, as does Russian ownership of critical infrastructure in the country. More worrying is the fact that Armenia appears to have played a critical role in Iran’s transfer of drones and missiles to Russia for its war in Ukraine. 

In the middle of it all is Georgia, previously America’s closest partner in the region. But in recent years, Georgia’s government – now under the control of a shadowy tycoon who made his fortune in Russia in the 1990s – has become increasingly skeptical of the West.

America’s national security bureaucracy separates the Caucasus and the Middle East into different bureaus, with Central Asia in yet another office. This is part of the reason the U.S. has failed to respond to the ways in which the regional politics of these regions intertwine. In view of the challenges posed by Russia and Iran, however, Washington’s confusion is no longer tenable. It is in America’s interest to encourage Turkey’s emergence as a counterweight to Iran, and to nurture the growing alignment between Ankara, Baku and Jerusalem. The U.S. also needs to work to recover its influence in Georgia, as well as to reinforce the efforts it began in late 2022 to bring about a peace agreement between Armenia and Azerbaijan. All of the above, however, requires a much stronger American commitment to the security and stability of the countries of the Caucasus.

Svante E. Cornell is the Director of AFPC’s Central Asia-Caucasus Institute.

 

Click here to download publication PDF

Published in Staff Publications

CACI Webinar: The Growing Role of the S. Caucasus in European Energy Security

Join our experts for a webinar discussing growing energy collaboration between the South Caucasus and Europe. They will provide a status update on growing supply of natural gas from Azerbaijan to several EU member countries, as well as on the prospect for energy transit from Central Asia and the potential for green energy supply by submarine power line under the Black Sea connecting Azerbaijan, Georgia, Romania and Hungary. 

Panelists:

  • Prof. Brenda ShafferU.S. Naval Postgraduate School
  • Dr. Mamuka Tsereteli, Senior Fellow for Eurasia, Central Asia-Caucasus Institute at the American Foreign Policy Council 

Moderator:

Dr. Svante Cornell, Director, Central Asia-Caucasus Institute at the American Foreign Policy Council

WHEN: Monday, March 6, 2023, 10:00-11:00 AM EST 

 

Published in Forums & Events

By Mamuka Tsereteli

January 31, 2023

https://cepa.org/article/black-sea-cables-to-slake-europes-thirst-for-energy/

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The world’s longest and deepest undersea power and digital cable line is to be laid between the eastern and western shores of the Black Sea.

The commitment was made by the leaders of Azerbaijan, Georgia, Romania, and Hungary in Bucharest on December 17. The deal foresees the transmission of green energy from the South Caucasus to Europe, and forms part of the European Union’s (EU) wider plans for energy diversification; It was praised byCommission President Ursula von der Leyen as a project “full of possibilities.” 

Azerbaijan, a key producer of oil and natural gas, already plays a significant role in European energy security through recently agreed deals with the EU. In addition, both Azerbaijan and Georgia are important energy transit countries for Turkey, and Southern and South-eastern Europe. Key economic projects with geopolitical significance, like the Baku-Tbilisi-Ceyhan (running from Azerbaijan to Turkey) and Baku-Supsa oil pipelines, and the Southern Gas Corridor (again running east-west through Turkey) have elevated the importance of Azerbaijan as a major energy security player for Europe.  

The EU’s decision to support the undersea power line between Georgia and Romania represents a significant development. It will allow electricity produced in Azerbaijan, Georgia, and other countries to be delivered directly to the European market. It will also help clean energy-producing countries to attract more foreign direct investment in hydro, wind, and solar power generation. 

While Azerbaijan’s Caspian Sea wind farms may be the leading source of electricity for the power line,  a preliminary economic analysis has demonstrated that the participation of the other South Caucasus countries will be important for its ultimate commercial success. 

With the Russian invasion of Ukraine and the loss of Russian energy supplies, the EU’s need to diversify its energy sources, including both fossil fuels and renewables, is greater than ever. Naturally, this makes Azerbaijan increasingly important as a partner. The July 2022 visit to Baku of von der Leyen, and the subsequent signing of an energy agreement between the EU and Azerbaijan on increased natural gas supplies to Europe via the Southern Gas Corridor, have significantly elevated bilateral ties. That, in turn, has paved the way for a growing understanding of mutual dependence, as well as expanded collaboration on economic projects. 

While Russia is having enormous problems, it is also adapting and preparing for a protracted conflict. Despite multiple shortcomings, ranging from a lack of discipline and cumbersome logistics to sluggish command and control (C2) and inadequate intelligence, surveillance, and reconnaissance (ISR), Russian forces have stabilized a vast front, entrenched themselves, and increased the attrition for Ukrainian units, especially in the Donbas.  

This growing closeness serves as the backdrop for the most recent breakthrough by Georgia, Azerbaijan’s regional neighbor. The idea of the submarine power line between Georgia and Romania was born during the country’s partnership discussions with the EU back in 2018. The initial concept was based on Georgia’s interest in boosting its economic integration with the bloc, as well as the potential to export hydro energy to Europe. This led Georgia to request a pre-feasibility study from the World Bank, which was completed in 2020 (and is now publicly available.) The project, in turn, received a new boost with Azerbaijan’s interest in developing its vast wind power generation potential in the Caspian.  

Georgia is now moving forward to the feasibility study stage, funded by the World Bank, which should confirm the project’s commercial viability, optimal transmission capacity, and exact routing. It will also examine some of the technical challenges, including the difficult geography of the Black Sea, as well as the need to cross two undersea natural gas pipelines connecting Russia and Turkey. In addition, the feasibility study will assess a need for additional power infrastructure at the Georgian and Romanian ends in order to ensure the stable operation of their power grids. 

Initial costs estimates are around €2.5bn ($2.7bn), with one potential source of funding the EU’s funding European Economic and Investment Plan. Other finance may come from the European Bank for Reconstruction and Development (EBRD), the US International Development Finance Corporation (DFC), and others. Given the involvement of Romania and Hungary, both members of the Three Sea Initiative (3SI), it would be natural to have the 3SI Fund involved as well.   

There have been several past projects to transmit energy from the eastern to western shores of the Black Sea, but they have foundered because of an array of political, economic, and technical problems. These include the White Stream natural gas pipeline project to ship Turkmen gas to Europe via Azerbaijan and Georgia, as well as the Azerbaijan-Georgia-Romania liquefied natural gas (LNG) interconnector project.  

Yet this time there is a discernible political will to get the infrastructure built. The severance of Russian supplies was a serious shock for Europe and the urgent need to meet climate change objectives with greener energy are both providing significant momentum. The undersea power cable project has a realistic chance for implementation. That would blaze a trail for other projects to help boost connectivity in the Black Sea.   

Mamuka Tsereteli, Ph.D. is Senior Fellow for Eurasia, American Foreign Policy Council/Central-Asia Caucasus Institute.

Published in Staff Publications

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News

  • CACI Chairman S. Frederick Starr comments on "Preparing Now for a Post-Putin Russia"
    Friday, 03 November 2023 18:30

    Whether Russian President Vladimir Putin dies in office, is ousted in a palace coup, or relinquishes power for some unforeseen reason, the United States and its allies would face a radically different Russia with the Kremlin under new management. The geopolitical stakes mean that policymakers would be negligent not to plan for the consequences of a post-Putin Russia. On November 2, 2023, CACI Chairman S. Frederick Starr joined a panel organized by the Hudson Institute’s Center on Europe and Eurasia for a discussion on how US and allied policymakers can prepare for a Russia after Putin.

    Click here to watch on YouTube or scroll down to watch the full panel discussion.

  • Central Asia Diplomats Call for Closer Ties With US
    Monday, 26 June 2023 00:00

    REPRINTED with permission from Voice of America News
    By Navbahor Imamova

    WASHINGTON -- U.S.-based diplomats from Central Asia, a region long dominated by Russia and more recently China, say they are eager for more engagement with the United States.

    Many American foreign policy experts agree that a more robust relationship would be mutually beneficial, though U.S.-based nongovernmental organizations express deep concerns about human rights and authoritarian rule in the five countries: Uzbekistan, Kazakhstan, Kyrgyzstan, Tajikistan and Turkmenistan.

    Michael Delaney, a former U.S. trade official, argued in favor of greater engagement this week at a webinar organized by the American-Uzbekistan Chamber of Commerce.

    He noted that three of the five republics are World Trade Organization members and the other two are in the accession process — a goal actively encouraged by the U.S. government.

    "I've always believed that this is a geographically disadvantaged area. There are relatively small national economies," he said. But, he said, collectively the region represents a potentially more connected market, about 80 million people.

    Key issues

    In this virtual gathering, all five Central Asian ambassadors to Washington expressed eagerness to work on issues the U.S. has long pushed for, such as water and energy sustainability, security cooperation, environmental protection and climate, and connectivity.

    Kazakhstan's Ambassador Yerzhan Ashikbayev said that despite all factors, the United States does not want to leave the field to China, its global competitor, which actively invests in the region.

    "Recent visit by 20 companies to Kazakhstan as a part of certified U.S. trade mission, including technology giants like Apple, Microsoft, Google, but also other partners like Boeing, have shown a growing interest," Ashikbayev said.

    The Kazakh diplomat described a "synergy" of economies and diplomatic efforts. All Central Asian states are committed to dialogue, trade and multilateralism, he said. "As we are witnessing the return of the divisive bloc mentalities almost unseen for 30 years, it's in our best interest to prevent Central Asia from turning into another battleground of global powers."

    During his first tour of Central Asia earlier this year, Secretary of State Antony Blinken visited Kazakhstan and Uzbekistan, meeting separately with the foreign ministers of all five countries.

    That was deeply appreciated, said Meret Orazov, Turkmenistan's longtime ambassador, who also praised the regular bilateral consultations the U.S. holds with these countries.

    Uzbek Ambassador Furqat Sidiqov sees the U.S. as an important partner, with "long-standing friendship and cooperation which have only grown stronger over the years."

    "The U.S. has played a significant role in promoting dialogue and cooperation among the Central Asian nations through initiatives such as the C5+1," he said, referring to a diplomatic platform comprising Washington and the region's five governments.

    "This is where we address common concerns and enhance integration," said Sidiqov. "We encourage the U.S. to bolster this mechanism."

    Tashkent regards Afghanistan as key to Central Asia's development, potentially linking the landlocked region to the markets and seaports of South Asia. Sidiqov said his country counts on American assistance.

    'Possibility of positive change'

    Fred Starr, chairman of the Central Asia-Caucasus Institute in Washington, ardently advocates for the U.S. to adopt closer political, economic and people-to-people ties with the region.

    In a recent paper, he wrote that among dozens of officials, diplomats, entrepreneurs, experts, journalists and civil society leaders interviewed in Central Asia, "even those most critical of American positions saw the possibility of positive change and … all acknowledged that the need for change is on both sides, theirs as well as ours."

    This is the only region that doesn't have its own organization, said Starr, arguing that the U.S. could support this effort. "We have not done so, probably because we think that this is somehow going to interfere with their relations with their other big neighbors, the north and east, but it's not going to. It's not against anyone."

    "Easy to do, low cost, very big outcome," he added, also underscoring that "there is a feeling the U.S. should be much more attentive to security."

    "Japan, the European Union, Russia, China, their top leaders have visited. … No U.S. president has ever set foot in Central Asia," he said. He added that regional officials are left to wonder, "Are we so insignificant that they can't take the time to visit?"

    Starr urges U.S. President Joe Biden to convene the C5+1 in New York during the 78th session of the U.N. General Assembly in September. "This would not be a big drain on the president's time, but it would be symbolically extremely important," he said. "All of them want this to happen."

    Read at VOA News

  • Read CACI Chairman S. Frederick Starr's recent interview on the resurgence of Imperial Russia with The American Purpose
    Tuesday, 23 May 2023 00:00

    Why Russians Support the War: Jeffrey Gedmin interviews S. Frederick Starr on the resurgence of Imperial Russia.

    The American Purpose, May 23, 2023

    Jeffrey Gedmin: Do we have a Putin problem or a Russia problem today?

    S. Frederick Starr: We have a Putin problem because we have a Russia problem. Bluntly, the mass of Russians are passive and easily manipulated—down to the moment they aren’t. Two decades ago they made a deal with Vladimir Putin, as they have done with many of his predecessors: You give us a basic income, prospects for a better future, and a country we can take pride in, and we will give you a free hand. This is the same formula for autocracy that prevailed in Soviet times, and, before that, under the czars. The difference is that this time Russia’s leader—Putin—and his entourage have adopted a bizarre and dangerous ideology, “Eurasianism,” that empowers them to expand Russian power at will over the entire former territory of the USSR and even beyond. It is a grand and awful vision that puffs up ruler and ruled alike.

    What do most Russians think of this deal? It leaves them bereft of the normal rights of citizenship but free from its day-to-day responsibilities. So instead of debating, voting, and demonstrating, Russians store up their frustrations and then release them in elemental, often destructive, and usually futile acts of rebellion. This “Russia problem” leaves the prospect of change in Russia today in the hands of alienated members of Putin’s immediate entourage, many of whom share his vision of Russia’s destiny and are anyway subject to Putin’s ample levers for control. Thus, our “Putin problem” arises from our “Russia problem.”

    Click to continue reading...

  • CACI director Svante Cornell's interviewed on the 'John Batchelor Show' podcast regarding Turkey's 2023 presidential election
    Friday, 19 May 2023 00:00

    Listen to CACI director Svante Cornell's recent interview on the 'John Batchelor Show' podcast regarding Turkey's 2023 presidential election. Click here!

  • New Article Series on Changing Geopolitics of Central Asia and the Caucasus
    Wednesday, 24 November 2021 11:53

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