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A year that shook the global system

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It has been a year since February 24th. The long history of the Russian-Ukrainian tensions has been marked by a year of hot conflict. While the parties did not give up on their strategic goals, the door of a long period of uncertainty was opened in which the global system skidded and shook.

On February 24, 2022, Russian leader Vladimir Putin announced the launch of a “special operation” and led the Russian army into Ukraine. Thus, the long-standing Russia-Ukraine tensions, in other words, the mistrust between the West and Russia, has moved to another level.

The security mechanisms established with Europe and NATO after the Cold War and the Minsk I and Minsk II agreements, which are the address of the search for a solution to the crisis in Ukraine, have lost their historical meaning. It remains unclear how this new page will be closed and how the European security order will take shape in the aftermath of this war.

“This is a European war,” said Prof. Dr. Vişne Korkmaz, “There are vehicles of various sizes on this military and political battlefield. We are on a crowded floor. We are not in the same situation as we were in 1945.”

“The fight started on a crowded field,” Korkmaz said, noting that arm wrestling over the global system could continue for a long time in line with the parties’ own agendas.

What was Russia’s goal?

The Russo-Ukrainian war, or “special military operation” as Moscow calls it, began as a result of a failure to meet the security guarantees demanded by Russia from the United States and NATO, and in total from the Atlantic world. The Western system, led by the United States, responded to Moscow’s intensified insistence in the last quarter of 2021 on “security guarantees”, the story of which dates back to the end of the Cold War, by further arming Ukraine.

For decision-makers in the Kremlin, this meant ignoring Russia as a great power. Dialogue mechanisms and protocols aimed at softening the conflicts and finding a solution were now “a diversionary tactic used by the West to further arm Ukraine” for Moscow.

Nisantasi University Faculty Member Prof. Dr. Vişne Korkmaz sees the historic decision on February 24th as a “mistake” for Moscow and adds “this conflict is also about shaping European security.”

Evaluating the one-year war process to Harici, Korkmaz said, “Russia had two goals. Converting the post-Cold War European Security architecture to a point where it would be more advantageous. They failed to accomplish this without war. The West did not give Russia what it wanted in this sense. Russia became a party to the conventional European war. Secondly, we were aware of the conventional power of Russia. Russia was a great power, but not quite. Russia wanted to become a great power. Status is a position granted by the parties to you. Russia could not come close to achieving these two goals, but I do not see a war that Russia has lost yet. The facts of the field do not show a complete loss.”

How to disrupt the pat situation on the field?

“We are not evaluating the fronts of a war that ended like the Second World War. We are currently following an open conflict between two asymmetrical forces: this is a European war!” Korkmaz emphasized the lively, dynamic and variable aspect of the process.

Korkmaz assessed that the reality on the field could change if Ukraine sweeps the Russian forces from its territory or if Russia changes its strategic objectives, and said that she does not see such a possibility for the time being.

“It is a strange war, a war that can be continued. It will probably take longer. There are unknowns,” Korkmaz said, adding that both Russia and the West have made miscalculations.

“There is a deadlock for Russia that it has not given up on. I do not think it will revise its strategic goals. It has not even revised its tactical goals. It has not given up on its demands regarding the security future of the EU,” Korkmaz summarized Moscow’s current situation and added “The West also made a mistake, thinking that Russia could be isolated very easily. Russia has to continue in a way that brings it closer to its strategic goals. Moscow could not be pushed out of the system globally. It is not easy to keep a great power out of the system.”

What is the situation on the Western Front?

Referring to the “different voices” that emerge from time to time in the West, Korkmaz said, “Everyone has a different purpose. Each purpose has its own unique schedule. We are talking about a long struggle with different stages.”

Stating that it was a “struggle over the global system unlike the Cold War”, Korkmaz said, “Europe was caught unprepared and followed the US. It could not create its own stance and means.”

For the state of Europe, Korkmaz noted, “There seems to be only one West. Different voices have died out. Europe had to adapt itself to the NATO and EU agenda because it was not prepared. That is why Europe did not speak out.”

Where and how will the war end?

While the Istanbul process and the People’s Republic of China’s 12-point plan stand out as concrete efforts to resolve the crisis, there has yet to be a strong will to bring the parties to the negotiating table. The West is currently busy arming Ukraine, and Russia is reportedly preparing for a frontal offensive.

“I do not think Russia will test ‘NATO’ deterrence. There is a real risk that the war will spread to areas outside the NATO umbrella, such as Moldova,” Korkmaz said.

According to Prof. Dr. Korkmaz the United States has begun to move more towards the Asian front regarding its global goals. At this point, “The United States has been targeting China in particular recently. The message given through Ukraine is directed at China. The United States have more time for China,” she said and commented “The West has succeeded in limiting Russia to the Ukraine war.”

Korkmaz thinks that “the peace plans do not offer much either,” adding, “We are still in a deep stalemate. Russia has not lost totally.” Stating that although the “Ukrainian resistance” has been successful so far, Kiev is also far from winning, Korkmaz argued that a long-term struggle is a reality.

For now, it seems impossible to predict where the gods of war will stop. What is certain is that the world has become too large to fit into its old mold and seems ready to establish a new security framework. It is necessary to see that peace can only be established around new concepts and with a new understanding.

A quote by the famous Italian Marxist Antonio Gramcsi summarizes the situation: “The old world is dying, and the new world struggles to be born: now is the time of monsters.”

RUSSIA

Russia will not give Israel guarantees on Hezbollah

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In an interview with RIA Novosti, Alexander Lavrentiev, the Russian President’s special envoy to Syria, stated that Moscow could not provide Israel with guarantees to prevent “arms smuggling” from Syria to Lebanon.

Earlier reports from the Israeli press indicated that Israel would like to see Russia as a mediator in the Middle East peace settlement. Lavrentiev confirmed that Israel had requested guarantees from Russia to prevent Shiite groups from moving military equipment through Syria to Lebanon. However, he clarified that this demand could not be met.

“This would require the establishment of new checkpoints along the border, a task that does not fall within the competence of the Russian military in Syria,” Lavrentiev explained.

When asked about Israel’s expectation of a security guarantee, Lavrentiev responded, “First of all, we cannot give such a guarantee.”

Reports have previously indicated that Israel has been in contact with Moscow regarding the regional settlement process. It was even suggested that Strategic Planning Minister Ron Dermer, one of Prime Minister Benjamin Netanyahu’s closest advisors, was planning a confidential visit to Moscow.

Meanwhile, Itamar Eichner, a columnist for Yedioth Ahronoth, noted in his column yesterday that Israel understands Russia’s influence over Hezbollah, Syria, and Iran. “This is why Tel Aviv seeks guarantees from Moscow to prevent arms smuggling and to stop the Lebanese terrorist organization from recovering from the war,” Eichner wrote.

Commenting on Israel’s desire to secure the Syrian-Lebanese border, Lavrentiev highlighted a recent attack near Khmeimim Air Base in Syria. Although this incident took place about a month ago and did not directly impact Russian troops, Lavrentiev felt compelled to address it.

“Israel carried out an airstrike near Khmeimim. They did not target the air base directly, as they know this would have serious consequences for Israel. Reports suggest that the strike targeted warehouses and buildings in the vicinity,” Lavrentiev stated.

He also mentioned that the Russian Defense Ministry had “sent a representative to Israel” for further discussions.

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Russia’s federal dudget in deficit again

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Russia’s federal budget has returned to a deficit in 2024 due to increased spending, with the deficit reaching 389 billion roubles in October.

The Russian Finance Ministry announced that the federal budget returned to deficit in the first ten months of 2024, with expenditures exceeding revenues by 220 billion roubles—or 0.1% of gross domestic product (GDP).

According to preliminary data from the ministry, the budget showed a surplus of 169 billion roubles from January to September. Thus, the October budget deficit may have reached 389 billion roubles.

Despite the current deficit, this year’s budget deficit remains lower than in the same period last year, when it reached 1.05 trillion roubles (0.6% of GDP) due to a decline in Russia’s energy revenues following Western sanctions imposed in response to Moscow’s military intervention in Ukraine.

Last month, budget revenues rose by around 4% compared with September, reaching levels similar to October 2023. Ten-month revenues increased 28.4% year-on-year, totaling 29.67 trillion roubles.

Non-oil and gas revenues grew 26.6% year-on-year to 20.13 trillion roubles, while oil and gas revenues climbed 32.3% year-on-year to 9.54 trillion roubles.

The monthly expenditure also continued its upward trend. According to the Ministry of Finance, spending in October increased 23.3% month-on-month and 26.8% year-on-year.

From January to October, the Finance Ministry spent 29.89 trillion roubles, a 23.7% rise from 24.16 trillion roubles spent in the same period last year.

This autumn, authorities approved an increase in spending above the planned 2024 budget rule from 1.3 trillion roubles to 1.5 trillion roubles.

Consequently, the Finance Ministry now forecasts total budget spending for 2024 to reach 39.41 trillion roubles—7.5% higher than initially planned and 21.8% more than last year.

If this forecast holds, an additional 9.52 trillion roubles will be spent in the remaining two months of the year, comprising nearly a quarter of the annual target.

Following this extra spending, the Russian budget is projected to close 2024 with a deficit of 3 trillion roubles or 2% of GDP, marking the third consecutive year in deficit.

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RUSSIA

10 billion dollar plan: How Russia’s ‘shadow fleet’ circumvents sanctions?

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Russia has built a shadow fleet at an estimated cost of around $10 billion, now transporting approximately 70% of its oil and oil products on these tankers. This fleet allows Russia to largely evade restrictions associated with the $60-per-barrel price ceiling. Western sanctions targeting individual tankers and their owners have proven largely ineffective in curbing Russian exports.

According to a report by the Kyiv School of Economics (KSE), cited by the Financial Times, the shadow fleet nearly doubled its capacity to 4.1 million barrels per day in June this year, up from 2.4 million barrels during the same period last year. This represents an increase of almost 71%. Crude oil is now carried almost entirely (89%) by older tankers, with an average vessel age of 18 years, while 38% of oil products are transported by these aging ships.

Some of these tankers are insured against oil spills by Russian companies, though most are reportedly uninsured. The KSE recommends the creation of “shadow zones” in European waters, restricting access to tankers that cannot prove adequate insurance coverage. However, the report warns that under current conditions, “a major environmental disaster is only a matter of time.”

The Financial Times also notes that four tankers in the shadow fleet have experienced engine failures over the past two years at critical points, such as the Danish Straits and the Dardanelles. So far, these incidents have not resulted in oil spills.

Western countries have begun imposing sanctions on individual tankers, as well as on their owners and operators. Benjamin Hilgenstock, one of the authors of the KSE report, stated that these sanctions have been effective in deterring some ships from continuing their operations. However, he emphasized that the overall impact on weakening Russia’s shadow fleet has been limited.

In contrast, Craig Kennedy, an expert on Russian oil operations at Harvard University, noted that Russian oil companies often prefer foreign ownership and operators to conceal their connections to shadow fleet vessels. This practice complicates efforts to sanction the entities involved. Kennedy estimates that Russian companies have spent over $10 billion acquiring old tankers since 2022, primarily financed through Russian banks.

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