A Great Article from The New Republic

A recent article in The New Republic (tragically for subscribers only) discusses the re-Russification of Czech Republic, particularly Russia's focus on monopolizing the Czech natural gas market and the energy market generally.

The piece opens by discussing the prickly reputation of President Klaus, and moves on to point out some of the more "pro-Russian" moves he has made over the course of his presidency. It is a piece which carries the tone of "maybe alarm bells aren't ringing yet, but the yellow indicator lamps are starting to warm up." It chronicles particularly the Czech President's reticence to condemn the attack on Georgia and his decision to attend a summit in Moscow at a time that he was legally obligated to sign the Lisbon Treaty. The piece moves on to discuss Russian designs on energy markets in Czech Republic specifically and Central and Eastern Europe generally, and notes that the Russian state uses energy as a very, very, big hammer in its foreign policy toolkit, particularly with regard to Europe. Additionally, it notes the continued presence of Russian firms and managers in Prague, and the expensive villas in which they dwell. (Somehow the piece overlooks the resort city of Karlovy Vary, which is even more dominated by these things. Including the villas.)

Chief among these companies are Lukoil and Gazprom, and the piece then moves on to discuss the problems of endemic Czech corruption (not just by Russian firms, for better or for worse) and  the recent investment moves by Russian companies to develop and refurbish gas lines and the nuclear power plant in Temelín, in South Bohemia. It chronicles the semi-Czech-state-owned power company of ČEZ and its lavish use of political contributions to the major political parties, and sums up the situation with quotes from the charismatic Foreign Minister Karel Schwarzenberg, the former head of the quickly-dying Green Party Martin Bursík, and of course, the Old Man himself, Václav Havel. Overall, it is a picture that reveals President Klaus as a considerably more accommodating president than Havel, an American administration that seems rather indifferent, and a Czech population that remains skeptical of Russia and politicians alike.

The piece is written very much as a warning for the US and its interests, and rightly so. However, it is perhaps hard to blame President Klaus entirely for his calculated orientation to Russian engagement. While it is true that Klaus is hardly a one-man engine of European integration, his reasons for this have little to do with his "warm" relationship with Russia and much more to do with his perceptions of the EU as a social-democratic monolith. Additionally, initial attempts by Czechs and other Central European nations to diversify their gas supply have been frequently stymied by other European nations, notably Germany, which values Russia as a long-term strategic partner. Finally, the corruption and influence of Russian state-run companies is something that cannot be cleaned up by Klaus alone, and while ending this problem could have the greatest effect on the independence (energy-wise, politics-wise, and business-wise) of the Czech Republic, it is the most difficult to tackle as well. And purging Prague of the STB would require a Batman-like effort. Unfortunately, every party would likely be rocked by scandal, and that may perhaps dissuade politicians from investigating.

On the EU level, the case for Russian engagement is strong. Member states on the Union's eastern flank are not the only ones reliant on cheap Russian gas, and while Norway pumps a lot of gas to Europe, it cannot solely supply the continent, and it can hardly be said that business interests in Düsseldorf and Essen have the security issues of Sofia and Kiev at heart, to say nothing of Parisian defense firms. Moreover, the EU needs Russian cooperation on other geopolitical topics, such as sanctions on Iran and working in the Quartet. Finally, western European nations frequently underestimate the influence Russia -- both as a modern state and as an ancient idea -- has on the security of their more eastern EU brethren. Particularly because EU actors are loath to see the world through the lens of power politics, they misjudge the intentions of their largest neighbor. President Prime Minister Putin is happy to oblige them.