huffingtonpost.com
<http://www.huffingtonpost.com/samuel-ramani/why-russia-is-tightening-_b_921
8306.html>  


Why Serbia is Strengthening its Alliance with Russia


On January 11, 2016, Russia's Deputy Prime Minister, Dmitri Rogozin
announced Moscow's intention to arm Serbia with sophisticated weaponry,
including S-300 surface-to-air missiles
<http://bigstory.ap.org/article/888a93e9d94d46cc91725e1158d10ad0/russia-read
y-arm-balkan-ally-serbia> . Belgrade's decision to deepen military
cooperation with Russia caused controversy in Brussels, as Serbia in recent
months has taken tangible steps towards accession to the European Union. 

Serbian president Tomislav Nikolic has insisted that Serbia's strengthened
alliance with Russia will not compromise its EU membership aspirations
<http://www.worldaffairsjournal.org/content/serbian-president-nikoli%C4%87-s
ays-serbia-linked-its-fate-eu> . But difficulties in balancing relations
between the increasingly hostile European and Russian blocs, and
long-standing tensions over Kosovo's status are significant roadblocks to
eventual Serbian EU membership. 

Serbia's contradictory foreign policy strategy of simultaneously expanding
linkages with Russia and the EU can be explained by two main factors. First,
Serbia's views on state sovereignty align more closely with Russian
perspectives than the Western consensus. This normative synergy caused
Belgrade to implicitly support Russian conduct towards Ukraine and Turkey.
Second, Russia, to combat its international isolation and to partially
offset the breakdown of relations with Turkey, is offering Serbia the
opportunity to bolster its economic and military development, without the
conditions typically imposed by Western economic institutions. 

Serbia and Russia: Normative Partners on State Sovereignty 

Since the Yugoslav wars of the 1990s, Serbia has defied the Western
consensus on state sovereignty, by arguing that Kosovo is an
<http://ec.europa.eu/enlargement/pdf/key_documents/2007/nov/serbia_progress_
reports_en.pdf> "integral" part of its territory. This contrasts with the
23/28 EU member states and 24/28 NATO members who have recognized it as an
independent country. 

Russia has consistently supported Serbia's position on Kosovo. In 2008,
Vladimir Putin warned that the legitimization of Kosovo's declaration of
independence would destabilize the international system. Russian Foreign
Minister Sergey Lavrov described unrest in Tibet,
<http://sputniknews.com/russia/20080318/101564953.html>  and Albanian
autonomy demands in Macedonia as pernicious consequences of Kosovo's de
facto secession from Serbia. The Kremlin's view that the EU was violating
international law and Serbian sovereignty over Kosovo, and placing ethnic
Serbian enclaves
<http://www.abc.net.au/news/2008-03-24/russia-considering-humanitarian-aid-t
o-kosovo-serbs/1081700>  at risk of violence, consolidated the long-standing
Russia-Serbia partnership. 

The 2014 Russian annexation of Crimea gave Serbia an opportunity to reward
Russia for its resolute support for Belgrade's position on Kosovo.
Initially, however, Serbia's position appeared unclear. Immediately after
the annexation, Serbian Prime Minister Alexander Vucic emphasized his
country's support for the territorial integrity of Ukraine
<http://www.euractiv.com/sections/enlargement/serbias-careful-balancing-act-
ukraine-302018> . This solidarity built on the deep cultural, economic and
humanitarian partnership between Serbia and Ukraine, that was highlighted by
former Ukrainian president Viktor Yushchenko's 2009 statement
<http://for-ua.com/article/1016548> supporting Serbia's WTO membership
aspirations. Vucic's statement matched Viktor Yanukovych's 2010 opposition
to Kosovo's independence
<http://www.kyivpost.com/content/politics/yanukovych-recognition-of-independ
ence-of-abkhazia-68638.html> , to uphold international law and avoid an
Abkhazia-style frozen conflict in the Balkans. 

But Serbia's refusal to impose sanctions on Russia
<http://www.b92.net/eng/news/politics.php?yyyy=2015&mm=11&dd=11&nav_id=96016
>  and right-wing political leaders' open support for Crimea's
re-incorporation with Russia diluted the credibility of Vucic's commitment.
Belgrade has provided informal military assistance to pro-Russian
separatists in Donbas, with Serbian paramilitaries fighting openly in
Donetsk
<http://www.reuters.com/article/us-crimea-volunteers-idUSBREA2D0C020140314>
. Many European policymakers believe that Serbia regards Crimea's union with
Ukraine after 1991 to be an illegal action analogous to Kosovo's unilateral
secession. As Russia is a vital international partner supporting Serbia's
position on state sovereignty, Serbia pledged its unerring loyalty to Moscow
<http://www.balkaninsight.com/en/article/serbian-president-pledges-loyalty-t
o-russia>  to reaffirm its historic alliance, even though this pact could
greatly complicate its EU accession. 

More recently, Serbia expressed rhetorical solidarity with Russia after
Turkey's November 2015 shoot-down of a Russian Sukhoi Su-24 plane that was
allegedly flying over Turkish airspace. President Nikolic blamed the
incident on Turkey
<http://www.hurriyetdailynews.com/serbian-politicians-remark-unfortunate.asp
x?PageID=238&NID=93214&NewsCatID=351> , claiming that the Turkish military
had frequently violated the airspace of Greece and Syria with impunity, and
questioned the credibility of Turkey's commitment to counter-terrorism. 

Serbia subsequently sought to cool tensions with Turkey, by emphasizing the
two countries' economic partnership and by offering mediation assistance
<http://www.todayszaman.com/anasayfa_davutoglu-requested-serbian-mediation-i
n-russia-crisis-says-envoy_410164.html>  in the Turkey-Russia dispute. But
these diplomatic overtures obscure the shared suspicion of NATO military
activities between Belgrade and Moscow, which revealed itself in Nikolic's
condemnation of Turkish actions. The distrust engendered by NATO's bombing
of Serbian territory during the 1999 Kosovo War partially explains Nikolic's
unwillingness to accept NATO's argument that Turkey had a legitimate right
to self-defense against Russia, and has caused Serbia to view Russia as a
more trustworthy military partner. 

The Economic Foundations of Serbia's Partnership with Russia 

Since the imposition of Western sanctions against Russia in 2014, the
Kremlin has tightened its economic linkages with Serbia. Serbia remains
heavily dependent on Russian energy exports, as 80% of its gas imports
<https://www.stratfor.com/analysis/serbia-looks-west-weaken-russias-energy-d
ominance>  come from Russia. Russia has exploited this dependency by
charging Serbia $340 per thousand cubic meters of natural gas, a rate that
is considerably higher than what Moscow charges Hungary and Ukraine. While
Serbia has actively courted Western investment to improve its energy
infrastructure, its lack of alternative short-term energy partners has
forced it to accept Russia's pricier exports. 

To offset Serbian qualms over Russia's dominance of the Serbian gas market,
Russia has invested considerably in Serbia's economic diversification and
development. This assistance became particularly important after February
2012, when the IMF temporarily suspended its loan deals
<http://blogs.ft.com/beyond-brics/2015/02/26/serbias-imf-package-set-to-boos
t-privatisation/> with Serbia as retaliation for Belgrade's refusal to
comply with IMF targets. After Serbia's IMF dispute, Russia expanded
investment in Serbia's infrastructure
<http://www.economist.com/blogs/easternapproaches/2012/09/russia-and-serbia>
. Putin pledged the expansion of the South Stream pipeline in 2012 and
offered to lend Serbia $800 million for a railway track between Belgrade and
Pancevo. 

Russia's provision of credit to Serbia during a period of tension with the
Western economic establishment also extended to the heavy industry and
defense sectors. Russia established a humanitarian center in Southern Serbia
<http://www.euractiv.com/enlargement/russia-opens-humanitarian-base-s-news-5
08382>  to facilitate Serbia's purchase of Russian military equipment. The
Economist Intelligence Unit (EIU) regarded these deals as steps towards
making Serbia a Russian corner in Europe, akin to Cyprus.
<http://country.eiu.com/article.aspx?articleid=939550278&Country=Serbia&topi
c=Politics> 

The Serbian state media's coverage of investment flows has also benefited
Russia's image amongst the Serbian people. Substantially more attention
given to Russian development aid relative to EU funds in the years after
Slobodan Milosevic's demise in 2000, caused 47% of Serbians to regard Russia
as its main economic backe <https://dgap.org/en/article/getFullPDF/27416> r
compared to 28% for the EU in 2014. This statistic was misrepresentation of
reality, as the EU provided substantially more economic assistance to Serbia
than Russia after the devastating spring 2014 floods. 

The Serbian public's increased recognition of the value of the EU assistance
over the course of 2015 could explain Russia's recent expansion of ties with
Belgrade. As Moscow finds itself increasingly isolated internationally,
Putin wants to entrench the idea of a Russia-Serbia special relationship at
a time when an increasing proportion of Serbians believe that European
integration is the ideal way forward for their country. 

Russia's strained relations with Turkey following the shoot-down crisis
could also benefit the Serbian economy. The Russian state media fuelled
speculation in January 2016 that Russian automobile exports to Turkey could
be re-routed to Serbia
<http://www.todayszaman.com/anasayfa_russia-may-shift-auto-part-imports-from
-turkey-to-serbia_409430.html> . Russia could also expand trade with
Serbia's agriculture market
<http://sputniknews.com/europe/20160111/1032961377/serbia-russia-agriculture
.html> to gain access to produce that Turkey has been banned from selling to
Russian markets. As Serbia's economy is still undergoing a recovery from a
2013-2015 recession that reduced its productivity by 10% ,
<http://www.bloomberg.com/news/articles/2015-07-31/serb-economy-ends-recessi
on-after-shrinking-a-10th-since-2013>  short-term Russian investment is very
appealing for Serbian policymakers. 

In light of the economic benefits associated with Serbian trade with Russia
and the compatibility of the two countries on sovereignty norms, it is
unsurprising that Serbia is tightening its partnership with Russia
simultaneously with its pursuit of EU accession. The crises in Ukraine and
Turkey have tested the viability of Serbia's foreign policy balancing act,
and Belgrade's refusal to commit to one side during a period of hostile
EU-Russia relations leaves its economic prospects hanging in the balance.

 

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