Tuesday, September 27, 2011

The Qatar of Central Europe? Shale Gas Prospects In Poland and the Region


By Matthew Czekaj

As the parliamentary election season heats up in Poland, the country’s Prime Minister, Donald Tusk, is crisscrossing the country in his “Tuskobus” [link in Polish], highlighting the successes of his government and making campaign promises on behalf of his ruling party, Civic Platform. Over the long term, however, perhaps the most important strategic game-changer achieved by the Tusk government has been to bring the shale gas extraction industry to Poland.

On September 18, Tusk visited [link in Polish] Lubocino in northern Poland where Polskie Górnictwo Naftowe i Gazownictwo SA (Polish Oil and Gas Company – PGNiG) had just torched a flare on one of its gas rigs. This is the second successful production of “unconventional” natural gas – that is, gas trapped in shale rock deposits – in the country; however it is the first well with a real chance of profitability. With a smile on his face, Prime Minister Tusk told reporters that he was “modestly optimistic” that commercial shale gas production in Poland may begin by 2014.

According to a US Department of Energy study, Poland is estimated to possess 5.3 trillion cubic meters of natural gas locked up in its shale deposits – enough to supply the Central European state for 300 years. Warsaw is championing shale gas as the key to breaking the country’s dependence on coal power for electricity generation and on imports from Gazprom, which fills 40 percent of Poland’s natural gas needs. According to Tusk, with success in unconventional gas extraction, Poland would be “gas secure” by 2035 (AFP, September 18). In addition, the Polish government has promised that shale gas would contribute to overall lower natural gas prices in the national market.

Nor would the shale gas boon be for domestic consumption only. With smart investment in north-south pipeline connections, Poland may want to export north to the Baltic States and south to the Czech Republic (Hospodarske Noviny, September 16), for example. According to a study by the Kościuszko Institute, Polish gas may also go to Belarus, Ukraine, Denmark, and even Holland and the United Kingdom. Germany would also be an attractive target, especially after Angela Merkel’s government promised to phase out the German nuclear power industry. However, having to compete with the large volumes of Russian gas coming through the North Stream pipeline might preclude this in the end.

The positive news out of Lubocino is helping to drown out Poland’s other mega-scale energy security project: nuclear power. As PGNiG Strategic Planning Bureau director Marcin Lewenstein [link in Polish] told Wprost24 recently, though atomic power remains full of potential, PGNIG will focus its financial resources on shale gas extraction.

With the success of its first gas-producing well, PGNiG now plans to attempt to drill sideways into the shale. The process of extracting shale gas, known as hydraulic fracturing or “fracking,” has raised the ire of many environmentalists (and Gazprom) and has even been banned in some places – most notably in France. However, the Polish government considers the potential danger to underground sources of drinking water fully possible to mitigate with the right amount of regulation. Consequently, Poland is the second country in the world after the United States to attract international energy companies with a serious intention to drill for shale gas.

Tusk boldly predicted that thanks to shale gas, Poland had the possibility to become energy secure within his lifetime. Yet, mindful of the dangers of a “resource curse,” the Prime Minister announced that government proceeds from shale gas would go into a Norwegian-style national investment fund, which would be used to pay pensions, back environmental projects, and help subsidize counties and districts where fracking is to take place.

Regional enthusiasm for unconventional natural gas extraction is not limited just to Poland. Geological surveys suggest that the massive 405 mile belt of gas fields, which stretches from the Polish coast diagonally to the southeast, likely also extends substantially into Ukraine. Moreover, with advances in fracking technology in recent years, Hungary is also looking to tap what are believed to be large shale gas deposits buried deep in the southeastern corner of the country. Hungary, which uses a disproportionately high amount of natural gas in its energy mix and is almost exclusively reliant on Russian gas for its imports, predicts a breakthrough in shale production by 2015 – not coincidentally the same year its long-term gas contract with Gazprom is scheduled to expire. The Central European country additionally intends to set up a region-wide gas exchange market.

As the US example illustrates, unconventional natural gas extraction has the potential to completely change global energy markets. Within a few short years, fracking doubled US estimated natural gas reserves, turning the country from a net importer to an exporter of gas. Yet, to replicate America’s success in Central Europe, Poland will need to invest many billions of dollars into wells and exploration. Moreover, it will need to avoid any major environmental accidents, which can quickly turn public opinion against hydraulic fracturing. True energy security in the region is still many years away, but at least a piece of it may finally be within grasp.

Friday, September 16, 2011

Poland and Lithuania Scramble to Mend Broken Ties



By Matthew Czekaj

Polish-Lithuanian relations may not have been this bad since the 1920s and ‘30s. At the heart of the current dispute is an issue Warsaw and Vilnius has been struggling with off and on diplomatically since the collapse of the Soviet Bloc – namely, the status and treatment of the Polish minority within Lithuania.

In spring of this year, the Lithuanian government passed its latest language law, forbidding the use of any language other than Lithuanian to be spoken in school during geography, Lithuanian history and world history classes. Furthermore, all Lithuanian language High School matriculation examinations – heavier on Lithuanian literature than at independent minority-language schools – will now be standardized nation-wide by 2013. This law, which came into effect on September 1, has infuriated the ethnic Polish minority living in Lithuania. Teachers from the ethnic Polish schools in Lithuania walked out en masse in protest of the language law at the start of the month. It took an emergency visit from Polish Prime Minister Donald Tusk to talk them down. However, the teachers threaten to return on strike in the middle of September if the Lithuanian government does not repeal the law (Gazeta Wyborcza, September 12).

Ethnic poles number 230,000 in Lithuania, comprising around seven percent of the country’s population. Yet, they have continually been a spoiler in close Warsaw-Vilnius ties. The Polish minority has been allowed certain concessions in Lithuania, including running its own Polish-language schools. At the same time, the ethnic Polish community feels under siege by language laws designed to defend the primacy of Lithuanian in public life. In addition to the education-centric law that came into force in September, citizens of Lithuania are not allowed to spell their names on official documents like passports using letters not found in the Lithuanian alphabet. Warsaw feels [link in Polish] that the Lithuanians are breaking the Polish-Lithuanian Treaty of 1994 and are in breach of the Council of Europe Convention on National Minorities. Vilnius, on the other hand, is very sensitive to questions of its sovereignty and defense of Lithuanian culture.

Due to the education language law, relations have been on a downward spiral for more than a year, but the rhetoric and pressure has really been turned up on both sides in the past several weeks. On September 6, Lech Wałęsa, the famed Solidarity leader and first democratically elected president of modern Poland, turned down [link in Polish] the Lithuanian Presidential Order of Vytautas the Great, which he was awarded this year, noting his “deep concern” over the current situation of ethnic Poles living in Lithuania. Also citing the issue of name spellings, Wałęsa promised to accept the award if Vilnius reconsidered its language laws. The Lithuanian Prime Minister, Andrius Kubilius, countered in a radio interview he gave later, saying that, “Polish authorities do not assess the situation of the Polish minority in Lithuania according to objective criteria,” and are being misled by Polish diaspora organizations living in his country. Lithuanian President Dalia Grybauskaite was much more forceful in her pronouncement on Lithuanian Radio, asserting that the Polish minority is lacking in loyalty [link in Polish] to the state, which enraged members and representatives of the ethnic Polish community. Perhaps most troublingly, the brewing Polish-Lithuanian conflict has been raising nationalistic sentiments. In August, street signs and a monument in Puńsk (Punskas), a majority Lithuanian borough in northeast Poland, were vandalized and covered in graffiti, which included radical Polish nationalist symbols.

Yet, the growing diplomatic crisis seems to have finally woken both sides to the immediate need to smooth over relations between the two Central East European states. President Bronisław Komorowski [link in Polish], whose family derives its roots in Lithuania, spoke of the need to resolve the thorny issues dividing Poles and Lithuanians because of the many shared interests between the two countries. Furthermore, out of Tusk’s visit to Lithuania, the two states formed a joint bi-national committee [link in Polish] to work out the issue over language use in Lithuanian schools. The committee is to include representatives from both countries’ educational ministries as well as members of the Polish minority organizations.

This is a positive and much needed sign for Polish-Lithuanian relations. Indeed, the two countries share a border, but also a number of vital interests. Poland and Lithuania are both very exposed to energy disruptions coming from Russia and Belarus, and need to collaborate closely to secure themselves via oil and gas pipeline connections, joint work on nuclear power and so on. A recent setback in beginning construction of the Poland-Lithuania gas interconnector, in fact, underscores the need for political agreement and cooperation between Warsaw and Vilnius to ensure the project does not slip permanently off the agenda (BNS, September 1). The difficult case of Belarus, a country of intimate concern to both Poland and Lithuania, would also benefit greatly from Warsaw and Vilnius’ ability to coordinate their policies at the highest levels. A final area where the two nations could achieve more together than alone is European strategy toward Moldova. This year, Lithuania chairs the Organization for Security and Cooperation in Europe (OSCE), while Poland holds the rotating presidency of the EU Council of Ministers between July and December of 2011. Since both the EU and OSCE are active in the Moldova-Transnistria peace process as well as encouraging and supporting Moldova’s path toward European integration, more tangible Polish-Lithuanian agenda coordination would be invaluable. Yet, with both giving up their European leadership positions on December 31, the window for joint action is closing. Polish and Lithuanian diplomats will need to hurry.

Monday, September 12, 2011

Moscow’s Financing of Sochi Olympics 2014 Construction Triples Since 2009



By Valery Dzutsev
On September 8, Russian news agency RIA-Novosti reported that the Russian government is increasing its material contribution to the Olimpstroy state corporation from $4.8bn to $10.1bn. Olympstroy oversees construction of facilities for the Olympics and the development of Sochi as a ski resort for 2008-2014. The government’s resolution was posted on the website of federal regulations and administrative acts on September 8 (http://www.itar-tasskuban.ru/news/article?type=city2014&i=14562). In 2009, the government’s material contribution to Olympstroy for the same period of 2008-2014 was estimated at less than $3bn (http://www.rosbalt.ru/main/2009/07/31/659713.html).  
According to the latest government documents, a significant increase in the funding will start this year and will exceed $1.5 billion, instead of the previously planned $0.3 billion. In 2012, over $3 billion will be allocated, instead of $0.7 billion, and in 2013 over $2 billion instead of $0.5 billion. In 2014, the allocation will remain as planned, at $0.1 billion.

The material contribution of the Russian government to Olympstroy is only part of the costs associated with putting on the Sochi Olympic Games in 2014. The overall costs of the Olympics in Sochi are estimated at nearly $30 billion (http://www.bbc.co.uk/russian/russia/2010/06/100607_sochi_budget_inflates.shtml). Current oil prices still allow the Russian government to finance its liabilities in Sochi, but it may become a serious burden if the energy prices fall significantly. As the price of the Winter Games in Sochi rapidly climbs, the government may find it increasingly more difficult to foot the bill over the next three years.

Friday, September 9, 2011

Khloponin Admits Ramzan Kadyrov Fails to Live Up to Russia’s Standards On Personal Freedom



By Valery Dzutsev

On September 8, Alexander Khloponin, Moscow’s envoy to the North Caucasus, for the first time publicly rebuked the ruler of Chechnya, Ramzan Kadyrov. The Chechen youth want more freedom than Kadyrov allows, Khloponin asserted, adding, “The youth in Chechnya lack freedom. They want to be more dynamic. We have some problems with that, it is obvious. I cannot fully agree with many of his [Kadyrov’s] principles. However, we are having a serious dialogue”. At the same time Khloponin dismissed claims that Kadyrov was involved in the killings of his opponents in Russia and abroad (http://gazeta.ru/news/lenta/2011/09/08/n_2001257.shtml).  

Khloponin made these remarks at a meeting with foreign journalists, where he had to show off his fastidiousness about Ramzan Kadyrov’s management methods. It is very common for the Russian leadership to appear more liberal to a foreign audience, than to the domestic one. But at least this can be seen as a sign that Kadyrov with his methods no longer constitute a reason for Moscow to be resolutely proud of him.

The level of power personification in Chechnya has apparently reached the point, where some criminals mimic Kadyrov’s voice to get ahead. On September 8, Gazeta.ru quoted an Interfax news agency report about three Chechens who were sentenced to five year prison terms for extorting money from businesses and bureaucrats by imitating Kadyrov’s voice over telephone (http://www.gazeta.ru/news/lenta/2011/09/08/n_2001049.shtml).

Moscow may dislike Kadyrov for variety of reasons, including his unprecedented level of autonomy from the central Russian government. However, Kadyrov’s critics in Moscow may be particularly emboldened by the Chechen ruler’s inability to prevent brazen attacks in the republic. The latest double suicide attack that took place in Grozny on August 30 is but one example. These attacks may signify that Kadyrov and Russia have reached the limit of their ability to stabilize this republic. Chechnya’s shaky level of stability is unlikely to be surpassed under the present leadership, or as long as their current set of policies continues.

Thursday, September 1, 2011

Hungary’s MiGs Up for Sale



By Matthew Czekaj

Those in the market for a used, fourth-generation, Soviet, air-superiority jet fighter need look no further than Hungary. The Central European country is putting up eight of its 24 remaining MiG-29 Fulcrums for tender. The Hungarian government has declared a minimum bid for the package of fighters at no less than 3.46 billion forints ($18.3 million). All bids must be in by September 15, and the deal has to be wrapped up by October.

The announced sale is the final chapter in Hungary’s experience with the MiG-29. The Hungarian air force flew a MiG-29 on air patrol for the last time [link in Polish] in December 2010 and in same month made announcements of plans to seek bids to sell the phased out fighters by spring 2011. Yet, talk of replacing the Fulcrums was raised long before then. In 2007, for instance, Hungary wanted to trade them for Russian Mi-8, Mi-17 and Mi-24 military helicopters (Itar-Tass, October 29, 2007). Hungary initially received 28 MiG-29s, then valued at $800 million, from Russia in 1993, in a deal to pay off Soviet debt to Budapest. Hungary subsequently maintained and modernized them over the next decade despite early pressure to purchase second-hand F-15s from Belgium or F-16s from the US (Rossiyskaya Gazeta, December 6, 2001).

In terms of capabilities and mission profile, the MiG-29 is often compared with US-built F-15s and F-16s. It boasts superior maneuverability at low speeds, is slightly faster than the F-16 and its handling made it a favorite among Hungarian fighter pilots. However, the MiG-29’s performance comes at a cost. Its engines are extremely inefficient and fuel-thirsty. The plane also has a short mechanical lifespan, and spare parts are difficult to come by. The Hungarian air force was often forced to cannibalize some of its MiGs to keep the rest flying. The plane’s acquisition and costly upkeep coincided with steep government cuts to Hungary’s armed forces. Moreover, Hungary’s drive toward NATO membership necessitated military hardware that was more compatible with Western allies. Hence, Budapest ended up purchasing Swedish JAS-39 Gripen fighters to replace its aging MiG-29s.

The Fulcrum can be found throughout the former Soviet Union, Eastern Bloc, the Balkans and in countries that enjoyed close political and economic ties with the USSR during the Cold War. However, the MiG-29 is fast becoming a rarity in Hungary’s immediate neighborhood. A prominent exception to this trend has been Poland, which has continued to purchase and receive [link in Polish] more MiG-29s from its neighbors since the 1990s. Warsaw is now in the midst of modernizing a portion of its own Fulcrums with up-to-date electronics, tracking, navigation and computer hardware – upgrades that will cost 126 million PLN ($43.4 million) until 2014 – despite having invested heavily in second-hand F-16s from the US in recent years. As a result of Poland’s continued dedication to the MiGs, there are increasing rumors that Warsaw may be considering buying the Hungarian planes now up for sale.

A Polish purchase of the Hungarian jets could be good news for the Baltic States. The Balts have no air forces of their own; they rely on NATO overflight patrols, which include Polish MiG-29s. An attack in Baltic airspace would also result in part in an automatic response [link in Polish] from Poland’s Fulcrums. Lithuania, Latvia and Estonia thus have robust Polish air power in their own best interest.

Whether or not Hungary’s ultimately ends up selling MiG-29s to its Visegrad neighbor, it is clear that operation of this legacy Soviet fighter in Central Europe and the NATO alliance will continue for the foreseeable future.

Friday, August 19, 2011

Russia: The “New Look” Faces North (Part Five)

By Jacob W. Kipp

The following is Part Five of a five part series on the Russian efforts to stake a strategic claim on the Arctic region.

Read Part One here.
Read Part Two here.
Read Part Three here.
Read Part Four here.

Further proof that the Arctic was emerging as an area of economic and military competition appeared just days ago. On July 5, the Russian atomic icebreaker Rossiia and the research vessel, Akademik Fedorov, sailed from Murmansk to undertake a second year of seismic prospecting to establish Russia’s claim to the Lomonosov and Medvedev Ridges (“Arctic shelf prospecting in view of global warming,” The Voice of Russia, 21 July 2011). On July 11, the giant Russian mineral and chemical company EuroChem announced that two bulk ore carriers, the Mikhail Kutuzov and Dmitri Pozharskii, were leaving Murmansk under the escort of a Russian atomic icebreaker, and would sail the Northern Sea Route to deliver 40,000 tons of iron ore concentrate to the North China port of Xingang with an estimated sailing time of 25-28 days. EuroChem expects to expand iron ore experts to China to millions of tons over the next few years (“EvroKhim otpravil dva sudna s produktsiei v Kitai po Severnomu morskomu puty,” FK Novosti, 20 July 2011). On the same day, the press reported that Russia’s United Shipbuilding Corporation would embark on the construction of six new icebreakers – three atomic-powered and three diesel-electric powered. The vessels will be built in Russia and Finland, with hulls constructed at the Admiralty Yards in St. Petersburg – the final work done at the Arctech Shipyard in Helsinki, a Joint venture of Russia's United Shipbuilding Corporation and the South Korean Shipbuilding Giant STX (Aleskei Mikhailov, “Nov ledokol na dorog,” Rossiiskaia gazeta, 20 July 2011).

The collaboration of United Shipbuilding Corporation (USC) and STX has, of course, another connection: the joint Franco-Russian project to build fur Mistral-class amphibious assault ships, two in France and two in Russia, with the USC and STX being involved. USC President Roman Trotsenko has recently said that Russia could build an atomic-powered aircraft carrier and have it operational by 2023, a claim, which Minister of Defense Serdiukov denied, saying Russia had no intention of building such ships. Trotsenko’s statement set off an immediate response in China, where PLA naval officers spoke of the great utility of aircraft carriers to strengthen Russian influence there. Il’ia Kramnik, military correspondent for RIA Novosti, suggested that the Chinese enthusiasm reflected an attempt at strategic misdirection. The Chinese understand that aircraft carriers remain a major card in command of the sea. Like Kaiser Wilhelm II, who encouraged Russian naval development in the Pacific to complicate British plans to deal with his “Atlantic Fleet,” Beijing wants nothing more than to ensure US Carrier task forces are deployed across the globe, thus reducing the prospect of a major concentration in the Asian-Pacific Region to challenge Chinese interests. Along this line of thinking, Russian carriers in the Arctic will demand an American response, representing one more area for US-Russian tensions, drawing Russia closer to China and at the same time reducing US naval presence in the Western Pacific. Strengthening Russia in the Arctic is needed by China to achieve the two goals that Germany had at the beginning of the 20th Century. First, this will provoke a rapid response from the global leader (the US), which will find it necessary to strengthen its own forces there. Second, the neighbor (Russia) will be deflected from the key region and shift its efforts further, untying Beijing’s hands just as it was suppose to do for Berlin a century ago. While Russia should protect its interests in the Arctic, the author argues that it should not fall prey to “dangerous illusions” and provoke an armed confrontation with the US and NATO (Il’ia Kramnik, “Mirovoi balanc i novye avianostsy,” Voenno-promyshlennyi kur’er, 20 July 2011).

All these developments point to Russia’s Arctic engagement as an expected part of emerging competition for resources and economic advantage. The deployment of two brigades would enhance credible military presence to back geo-political claims. But there is no reason at this stage to respond with an arms race in the Far North, which would mean another area of US-NATO and Russian conflict and might serve the interests of another power with a different geo-strategic focus and long-range strategy. While Arctic warming has been seen as a blessing in terms of development opportunities, it is important to keep in mind that there will also be negative impacts on existing settlements and facilities as sea levels rise and the permafrost becomes more unstable. Recent reports from the Ministry of Extraordinary Situations have placed the possible loss of permafrost by 2050 at 15-30 percent. Andrei Bolov, the head of the Ministry’s Department for Monitoring Disasters, stated: “The negative impact of permafrost degradation on all above-ground transportation infrastructure is clear” (“Russia May Lose 30% of Its Permafrost by 2050,” RIA Novosti, 28 July 2011). Indeed, available evidence suggests that climactic changes in the Arctic are moving very fast, with the northern sea route now much more open to navigation. Russia’s Federal Hydro-Meteorological and Environmental Monitoring Service announced that ice fields this year are down by 56 percent, in some areas making navigation possible through September this year. Global warning seems to be having even more impact in the Arctic than in other regions of the globe (Maria Kolesnikova, “Arctic Ice Melt at Near Record Clears Shipping Route to Asia, Russia Says,” Bloomberg, 3 August 2011).

Recent press reports claim that the Federal Security Service (FSB) will have a leading role in the defense of the Arctic, which is supposed to become the “leading strategic resource base of the Russian Federation by 2016.” Denis Terent’ev, reporting for Argumenty nedeli, says that this force will include a regiment of naval infantry in Murmansk and the motorized rifle brigade in Pechenga, with a combined strength of 10-12,000 men, who will join the recently expanded FSB border guard units of 6-7,000 men. These units will enjoy the support of the North Fleet, which has a strength of 45-50,000 men and is the largest naval force of the Russian Federation. Nikolai Patrushev, former head of the FSB and now Secretary of the Security Council, says that the force will be led by a joint command and will be equipped with weapons and technology for operations in the Arctic, including new icebreakers. There are as yet no estimates on the costs of these efforts, but the resource base in the far north, which includes an estimated 7 percent of the world’s oil reserves and two thirds of its reserves of natural gas, will fully justify these expenditures as competition for the Arctic increases. All of the powers contending for dominion in the north are building icebreakers. China, South Korea, and Great Britain are training their special forces for “the struggle with terrorists in the Arctic,” and the US is increasing its naval presence in the region. Terent’ev says that while war in the Arctic appears unlikely, there is good reason for the FSB to expand its presence to support Russian interests and influence where private firms invest in the development of the Arctic Shelf (Denis Terent’ev, “Snezhnye voiny FSB,” Argumenty nedeli, 10 August 2011).

Wednesday, August 17, 2011

Russia: The “New Look” Faces North (Part Four)


By Jacob W. Kipp

The following is Part Four of a five part series on the Russian efforts to stake a strategic claim on the Arctic region.

Read Part One here.
Read Part Two here.
Read Part Three here.

Russian MOD Moves to Create Two “New Look” Brigades for the Arctic

In late May, Colonel-General Aleksandr Postnikov, Commander of Ground Forces, left Moscow for a three-day trip to northwest Russia with visits to St. Petersburg and Murmansk. During the trip, Iurii Gavrilov reported that the chief task would be resolving questions connected with the formation in the north of Russia of the so-called “Arctic brigades.” Gavrilov noted that in the past, when Russian media mentioned the formation of Arctic units, they were met by denials. “Why the military up to now had sought to conceal its interest in this time one can only speculate.” The Ministry of Defense described Postnikov’s trip as a sort of reconnaissance in support of a final decision to locate the brigade at Pechinga, about 100 km northwest of Murmansk. But according to other sources Postnikov was not just looking over a base site but also addressing the unit’s structure and composition. These sources stressed the need for a truly air-mobile formation to conduct combat operations in the Arctic. The unit would need special equipment to operate in super-cold conditions and require specialized training, which might draw upon “the experience of our Finnish and Norwegian neighbors.” The initial brigade would have a strength of 3,000 to 5,000 men (Iurii Gavrilov, “General moroz i ego riadovye,” Rossiiskaia gazeta, 18 May 2011). On the same day that Gavrilov reported on Postnikov’s inspection trip, Viktor Khudoleev wrote in Krasnaia zezda about what the new Arctic brigades would look like. He confirmed Gavrilov’s details on the brigade’s composition, equipment and training. Referring to the “Foundations of State Policy…on the Arctic,” he noted that “it required the creation in the next few years in the region a group of forces to ensure the military security under various military-political circumstances” (Viktor Khudoleev. “Oblik ‘arkticheskikh brigad,” Krasnaia zvezda, 18 May 2011).

That same day, Regnum Information Agency, as part of its on-going series “struggle for the Arctic,” reprinted an article by Aleskandr Khramchikhin from Arkitika i Sever, which addressed the military-political situation in the Arctic and scenarios of possible conflicts and gave an endorsement to enhancing Russia’s military presence. Khramchikhin pointed out that even during the Cold War, the militarization of the Arctic had remained largely a theoretical problem. Moreover, with the Cold War’s end, there had been a general reduction of forces in the Arctic region. However, recent events connected with the thawing of the Arctic ice pack and the discovery of major hydrocarbon reserves beneath the Arctic shelf had made militarization an immediate prospect. In the absence of well-defined borders, Arctic powers were free to make their own claims to territories and to back such claims with military forces. Geography and political alliances have placed Russia in direct competition with several NATO members: the US, Canada, Denmark and Norway. Iceland, which lacks military forces, has not put forward any claims and Sweden and Finland lack direct access to the Arctic.

Khramchikhin examined the efforts of the NATO members to improve their air, naval and ground presence in the Arctic. He noted that US military power in the Arctic is primarily deployed in Alaska and could effectively threaten the Chukotka across the Bering Straits, which Russia would be hard pressed to defend, but which would have almost no effect on vital Russian interests. Russia’s Arctic forces are deployed on the Kola Peninsula and there is almost nothing to the east of that. He reviewed a range of possible scenarios from local conflicts to strategic nuclear attacks based on events in the Arctic, but concluded that none of them made much military-political sense. Indeed, heightened tensions in the Arctic were sure to reduce the interests of private energy firms in what are already technologically difficult projects. Khramchikhin does, however, add one other player to the Arctic game. China will have both the interests and the forces to play there in the future and has announced it intension to join the game. He concludes that the various scenarios, which he considered, are not likely:

“Thus, although changes in climatic conditions and economic interests of Arctic countries have created the theoretical possibility for the militarization of the Arctic and the outbreak here of various military conflicts in the foreseeable future, the probability that any of the scenarios of conflicts considered here will take place is quite low. At the same time one should note that one of the most important factors in preventing such conflicts in more distant future is the strengthening of Russia's military potential in all its components in the Arctic and in general” (Aleksandr Khramchikhin, “Voenno-politicheskaia situtsiia v Arktike i stsenarii vozmozhnykh konfliktov,” Regnum Informatsionnoe Agenstvo, 18 May 2011).

While the Ground Forces seemed to be moving forward to create at least one Arctic Brigade at Pechinga, the Russian Airborne forces announced that they would also have a joint role in Arctic defense. General-Lieutenant Vladimir Shamanov, Commander of Airborne Forces reported that the General Staff had recommended to begin work on devising a plan to use airborne forces as part of a joint forces unit composed of naval, ground and airborne forces. He mentioned that the week before the commanders of three naval infantry brigades and three air assault brigades had met at the Airborne School in Riazan to study creating of such a joint Arctic command. Shamanov denied that Russian airborne forces would have an independent role in Arctic operations and said that they would not deploy to the Kuril Islands. Airborne forces were, however, going to create two helicopter regiments, and he was looking at deploying them at Pskov and Ulianovsk (“Desantniki budut zashchat arkticheskii shel’f Rossii,” Tikhookeanskaia vakhta, 28 May 2011).

In early July, as Serdiukov was announcing the creation of Russia’s Arctic brigades, the Russian military press noted Canada’s increased efforts in the north. On July 5, it was announced that the Canadian Armed Forces would be conducting its largest Arctic exercise in many years. Canadian Minister of National Defense Peter MacKay was quoted as stating that “Operation Nanook 2011” would take place throughout August and would involve actions over several stages across the Canadian Arctic, in which air, naval and ground forces would take part, including Canadian rangers and Inuit territorial troops. MacKay started that “the goal of the maneuvers is to expand the presence of Canada in the North. The government of the country has every intention of providing the means to these objectives.” These means have included the development of a major military base on Baffin Island (“Innostrannaia voennaia khronika,” Krasnaia zvezda, 5 July 2011).

On Jul 11 Ogonek drew attention to the Arctic by publishing a cover remembering the Soviet polar expedition of 1938 and then devoting two articles to Arctic defense issues. Oleg Anisimov, head of a section at the State Hydrological Institute and a member of the Inter-governmental group of experts on climate change, dismissed the decision to create Arctic forces as a purely political one disconnected from north political and military realities. No one has any immediate intention of attacking Russia in the North. Discussions about future conflicts over resources would not be answered by the deployment of a brigade of ground forces in the Arctic. “Our military often thinks in terms of scenarios from the last century. They don’t fight like that today: there are UAVs, missiles. And the threats now are different, including first of all terrorism. But terrorism and the Arctic do not compute. There are territorial disputes in the Arctic.” But Anisimov sees this as an issue more affected by climate changes, which are causing major erosion on Arctic islands and coast line, than by conflicting state claims to energy development rights. Arctic development, especially the northern sea route, holds out more promise than investments in troops (Oleg Anisimov, “Kholodnyi raschet,” Ogonek, 11 July 2011).

The second article reviewed the decisions leading up to the creation of the two brigades. Kirill Zhurenkov then asked just what the Russian military would be defending and stressed competition for Arctic resources in a region with poorly defined borders and greater possibilities for maritime trade through the area. He noted the contradiction in the actions of the Security Council concerning Arctic security and the declarations of Ambassador Vasil’ev in the fall of 2010 that Russia had no intention of creating any special forces formations for the Arctic. Consulting various specialists on defense issues, Zhurenkov judged the creation of the brigade to make sense, but wondered whether the necessary resources to sustain the effort would be forthcoming. In addition to the two brigades announced by the Minister of Defense, Russia has also been developing its own “arctic spetsnaz” (Northern Sea Lions), trained not only in rescue techniques but also as observers of deep-water communications with the capacity to thwart those intent on disrupting such communications. He concluded that Russia does have interests in the Arctic to defend and can only protect such interests by military means if other powers are intent upon militarizing the region. The article concludes with an assessment of each Arctic state’s interests and their willingness to abide by a solution to conflicting border claims from the UN (Kirill Zhurenkov, “Beloe dvizhenie,” Ogonek, 11 July 2011).

On July 16, the provincial press from Belgorod published two articles on Arctic developments by foreign authors. The first was a Canadian piece from Toronto’s Globe and Mail on Canada’s summer Arctic exercise, “Operation Nanook 2011,” which Jeremy Torobin described as a show of force. The article quotes Minister of Defense MacKay as saying: “Our goal is to strengthen our role and presence in the North” (Jeremy Torobin, “Glob end mail [Kanada],” Belgorodskia pravda, 16 July 2011). The second article came from the Wall Street Journal by its Moscow correspondent Alan Cullison, and was a recap of Russian news on the decision to create two Arctic brigades. However, while the original title of the piece addressed that topic directly – “Russia to Deploy Troops to Defend Interests in Arctic,” the Belgorod paper changed the title to reflect a larger theme of the Arctic’s place “during a general warming of chilly relations.” It emphasized the conclusion of the article, which addressed the rationale for such military presence in terms of the competition for control of the northern sea route, fishing grounds and energy resources (Alan Cullison, “Arktika: Pri obshchem poteplenii prokhladnei otnosheniia?” Belgorodskaia pravda, 16 July 2011).