US-Russian arms competition will focus on India

I’ve fallen behind on reprinting my Oxford Analytica briefs. Here’s one from late January, on US-Russian competition in arms sales. This version is slightly different from the originally published version, in that I have restored some material cut due to space constraints.


SIGNIFICANCE: India is the world’s largest arms importer and its primary suppliers are Russia and the United States. Although the two suppliers largely sell their weapons to different customers globally, Russian efforts to expand to new markets to compensate for declining sales to traditional partners will lead to increased competition with the United States in many parts of the world.


  • The most likely new markets for Russian arms sales include South America, South-east Asia, Egypt and Pakistan.
  • Russian competition with the United States in arms sales will be limited to a small number of countries.
  • Defence firms offering technology transfers will have an edge in the Indian market.
  • For decades, Russia and the United States have been the largest arms exporters in the world. From 2009 to 2013, Russia accounted for 27% of total world arms sales, while the United States was just ahead with 29%.
  • Russian arms sales have been highly dependent on a few major customers, with India, China and Algeria accounting for over 60% of Russian purchases in the last five years.
  • US arms sales are far more diversified, with the top three customers (Australia, South Korea and the United Arab Emirates) accounting for under 30% of total sales.

Shifting markets for Russia

The main targets of Russian weapon sales have been shifting:


Sales to China have declined as Beijing pursues a programme of domestic manufacturing of advanced weaponry. Many Chinese designs appear to be based on reverse-engineered Russian imports, particularly in fighter aircraft.

Europe and the Middle East

Russia has already lost other markets in Europe where many former Warsaw Pact countries are shifting to NATO equipment. Conflicts in the Middle East and North Africa have halted major sales to Libya and Syria.


Russian military industry is also worried about potential declines in purchases by India, its leading customer. The Stockholm International Peace Research Institute (SIPRI) has reported that between 2009 and 2013 Russia supplied 75% of weapons imported by India. However, serious delays and cost overruns on major contracts, such as aircraft carrier Vikramaditya to India and Il-76 transport aircraft to China, have dented Russia’s reputation as a reliable partner for India.

As a result, Delhi has sought to diversify its arms purchases. India chose French Rafale fighters in its multi-billion dollar Medium Multi Role Combat Aircraft (MMRCA) fighter tender and purchased helicopters and transport aircraft, as well as ASW aircraft, from the United States. India chose the American C-130J Super Hercules transport aircraft over Russia’s Il-76 plane. Moreover, India is looking to be 75% self-reliant in defence production by 2020-25, which is likely to result in declines in foreign arms purchases from both Russia and the United States.

New markets

Russia is actively seeking to expand its arms sales in South-east Asia, particularly Indonesia and Vietnam. Both are looking towards naval expansion and have in recent years bought aircraft, combat ships and infantry fighting vehicles from Russia. It is also seeking to sell diesel submarines to Thailand and has signed a deal to supply transport helicopters to Pakistan.

Besides Asia, Russia has been actively looking for new customers for its arms in the Middle East. Russia has recently concluded significant contracts with Iraq for helicopters and air defence systems worth 4 billion dollars and Egypt for air defence systems worth 2 billion dollars. Negotiations are also under way for coastal defence systems, attack helicopters and MiG-35 fighter aircraft. Ten years after being forced out of the Iraq market by the US invasion, Russia has once again become a major supplier of air defence systems and helicopters to that country.

It has also signed an agreement expanding military cooperation with Iran, with officials discussing the possibility of restoring the agreement to sell S-300 air defence systems with a possible upgrade to the more advanced S-400 system. Such sales would not violate the existing international sanctions regime.

In Latin America, Russia has long had a reliable customer in Venezuela, which has in recent years bought missiles, tanks and armored vehicles from Russia. Russia is looking for new markets in the region and is hopeful of selling fighter aircraft to Brazil and Argentina. Russia has sold air defence systems to Brazil and hopes to develop a defence industrial partnership that might parallel its military cooperation with India.

Russian competition with the United States

Russia mostly seeks to sell arms to countries that are not able or interested in buying US weapons, either because the customer states are not partners of the United States or because the products are too expensive. Iran, Venezuela and China are not likely to become areas for competition in US-Russian arms sales. Egypt has turned to Russia in recent years because of a deterioration in relations with the United States in the aftermath of the 2013 military coup. Many African and South-east Asian countries choose Russian arms when they cannot afford US-made versions.

India, a large unaligned country with a high level of military expenditures, is an attractive target for defense companies from both countries. Russia is also hoping to make inroads into Brazil and Argentina, two countries that have traditionally bought the majority of their weapons from the United States and its NATO allies.

The sectors in which Russian weapons systems are considered equal or superior to Western equivalents include: air defence, fighter aircraft, helicopters, submarines and cruise missiles. These are the sectors in which Russia’s defence industry can compete with the most advanced Western suppliers, with weapons such as the S-300 air defence system, the Su-35 fighter jets and the Kilo class submarine being noteworthy. In other sectors, such as transport aircraft, drones, surface ships, tanks and armoured vehicles, the quality of Russian products is significantly inferior to that of the United States, and Russian exporters compete primarily on price.

US strategy.

International arms sales can offset reductions in US defence spending, helping to keep the US defence industrial base healthy. Arms sales also fit with the Obama administration’s goal of strengthening allies and partners so they can provide more security for themselves without relying on US support. The US government has revised its export control system and is trying to streamline the Arms Export Control Act to make arms transfers simpler.

The combination of high-level policymaker attention, steady reforms and a volatile international security environment has resulted in an increase in US arms sales, thereby accelerating the competition with Russia.

In fiscal year 2014, US arms sales worldwide totaled 34 billion dollars, up 4 billion dollars from the previous year and about three times greater than the pre-2006 average. By contrast, President Vladimir Putin yesterday announced that in 2014 Russia sold more than 15 billion dollars-worth of arms and that new signed orders stood at around 14 billion dollars.


The United States continues to dominate the defence trade with its traditional partners such as Saudi Arabia, the United Arab Emirates and Japan. Yet it remains committed to maintaining or expanding ties to countries that Russia is also courting, such as Brazil, Argentina, India, Indonesia, Egypt and Pakistan.

In 2014, the United States and India agreed to identify co-development and co-production opportunities as part of the US-India Defence Trade and Technology Initiative (DTTI). Industry sources report that surveillance UAVs may be the first batch of products sold.

Since these products would be of particular use to India, especially in patrolling disputed areas with Pakistan, the United States may expect to see greater competition with Israel, a major drone manufacturer, shifting the Indian market towards higher-end products, and perhaps leaving fewer areas in which the main competition is with Russia.

CONCLUSION: The Russian and US defence sectors will push for greater exports to offset constraints in the defence budgets of their own governments. India, with growing expenditures and skepticism about Russia’s reliability, appears to be opening further to the United States. Competition between the two manufacturers will also be seen in Latin America and South-east Asia, where the US ‘Asia pivot’ may help Washington win new customers.

Moscow Conference on International Security 2015 Part 3: Speeches by foreign defense ministers

This year, there were a lot of foreign defense ministers participating in the Moscow Conference on International Security. In fact, there were so many that the organizers had to take an unscheduled break as the conference running well over time, with Russian Defense Minister Sergei Shoigu notably absent after the panel resumed. In this post, I will summarize the most interesting of the presentations. Videos of all the plenary speeches are available on the Russian Defense Ministry website.

Not surprisingly, the first slot in this lineup was given to Chang Wanquan, the Minister of Defense of the People’s Republic of China. Minister Chang focused on the development of a multipolar world as the center of gravity in international affairs has moved in recent years. He noted that some countries (not mentioning the U.S. by name) have been trying to obtain absolute security, which has complicated the international situation. China has been promoting a comprehensive vision of global security, focused on the need for a fair international order, the idea that common development enables security, and the primacy of dialog and cooperation over threats and the use of force. He noted that the PLA has been focused on safeguarding national sovereignty and territorial integrity, as crises on China’s periphery have been causing insecurity for the country. He also mentioned the role of the PLA Navy in conducting evacuations from Yemen and Libya and conducting other humanitarian missions such as disaster assistance and providing medical help for the Ebola crisis in West Africa. He highlighted the need to commemorate the victory over Nazism in World War II and the steps that China has been taking to promote development through the AIIB Bank and various Silk Road initiatives. Minister Chang concluded with a discussion of new efforts to conduct military dialog and increase military cooperation between China and the United States as part of efforts to counter terrorist threats and violent extremism. The overall perception from the speech was of China performing a careful balancing act between supporting Russia as the conference host while telegraphing that it was not interested in getting involved in any kind of confrontation with the United States.

Panos Kammenos, the Greek Defense Minister, was the only senior military official from a NATO country to make a presentation. He began with a statement highlighting the strong ties between Greece and Russia based on spiritual and historical connections, as well as on the two countries’ joint fight against fascism. He mentioned the dangers posed by terrorism and by new asymmetrical and hybrid security threats. The financial crisis that has affected the European Union has led to an increase in instability. Traditional security problems have been joined by new threats, such as ethnic and religious conflict, mass migration, and the dissemination of arms to non-state actors. He argued that the greatest security threat is posed by terrorism and religious conflict in the Middle East and the role of Greece as the bastion of Europe in this area. In this context, he mentioned the significance of Greece’s Hellenic initiative to protect Christians in the Middle East. He concluded by noting that security cannot be divided into internal and external areas. The same terrorist groups are attacking both the U.S. and Russia, so there is no choice but to have both countries working together to resolve this crisis.

The Pakistani Defense Minister, Khawaja Muhammad Asif, highlighted the emergence of new security threats in the last years. He noted that the radicals of the Islamic State have created a transregional crisis that has heightened the danger of the fragmentation of the modern state order. Conflicts in Syria, Iraq, Libya, and Yemen can all be viewed as outcomes of failed regime change, the Arab spring and regional conflict. The old order in the Middle East is dying, while external powers are the only force preventing the emergence of a new order based on religious radicalism. Local extremists in Southeast Asia and Africa are losing foot soldiers to transnational groups such as the Islamic State and Daesh. The region needs a comprehensive social, economic, and political reform package that must be combined with ongoing military actions. 200 thousand Pakistani soldiers are currently fighting terrorists in northwest Pakistan. We need to compromise on principles to ensure that the conflict ends (referring to Charlie Hebdo and Muhammad cartoons).

The Iranian Defense Minister, Hossein Dehghan, started by describing ISIS as a global cancer that has support from foreign states. He blamed the United States and Israel for using these groups to change the strategic balance in the region. He made a very strong statement against Saudi aggression in Yemen, arguing that as a result in the future Saudi Arabia will face the same situation as Saddam Hussein did. He argued that Saudi Arabia has killed many civilians through its aerial bombing campaign and needs to stop supporting terrorism in the Middle East. The international community needs to stop foreign interference in Yemen. Iran, by contrast, is a factor for stability in the region. He then turned to U.S. cyber attacks on Iran and the role of the U.S. as a threat to international security. He proposed a multilateral cooperation initiative between Iran, Russia, China, and India against U.S. missile defense and other international threats. He highlighted that Iran is focused on the peaceful use of nuclear energy.

The North Korean Defense Minister, Hyon Yong Chol, did not pull any punches in his speech. He started by arguing that the U.S. is the greatest threat to world peace and has caused an increase in the risk of war on the Korean peninsula by its actions. He called the U.S. and South Korea a cancer, because they want to overthrow the DPRK and dominate northeast Asia in order to put added pressure on Russia and China. He called the 1953 armistice worthless and argued that North Korea has been threatened by a U.S. nuclear attack. Efforts to have dialog with the U.S. did not achieve any results as it became clear that the U.S. just wanted to eliminate North Korean nuclear weapons without creating a peace deal. “If we had peace, we would not need nuclear weapons.” If the U.S. were to suspend joint exercises with South Korea, North Korea would stop its nuclear program. Instead, the U.S. is trying to create an Asian NATO.

The Indian Defense Minister, Rao Inderjit Singh, highlighted that most nations have now given up some of their sovereignty to various transnational bodies, as the have recognized that traditional state instruments are not adequate to respond to modern threats. Non-state actors are becoming orchestrators of conflict. States can’t reign them in or are even tacitly encouraging them in some cases. Responses need to combine hard and soft power. Conventional wars have declined in recent years, as have civil wars. Now, multi-polarity is allowing old rivalries to reemerge.  In addition, there are new forms of threat from resource scarcity and climate change. Armed forces have to be prepared to fight both high end threats and irregular warfare. Space, cyberspace, and even underground warfare are now part of the war environment and have to be taken into account. Rapid technological innovation will help wealthy states and local entrepreneurs of violence, while potentially hurting the middle powers.

Russian arms sales

Another Oxford Analytica piece, this one from mid-December.


Russia is the second-largest arms exporter in the world, behind only the United States. In the period 2009-13, Russia accounted for 27% of total world arms sales.

However, Russian arms sales have been highly dependent on a few major customers, with India, China and Algeria accounting for over 60% of Russian purchases in the last five years. Another 15% of Russian exports went to other Asian countries, primarily Vietnam, Indonesia and former Soviet Union states.

Russia is particularly hopeful of expanding its sales to Indonesia and Vietnam — which are both looking towards naval expansion, which have to date included systems ranging from aircraft to combat ships to infantry fighting vehicles.

The main targets of Russian weapon sales are gradually shifting. Sales to China, have been in decline for years as Beijing has pursued a programme of shifting to domestic manufacturing of advanced weaponry.


India has replaced China as Moscow’s main foreign customer. The Stockholm International Peace Research Institute (SIPRI) reported that between 2009 and 2013 Russia supplied 75% of weapons imported by India. However, serious delays such as the transfer of the modernised aircraft carrier — the Vikramaditya — have dented Russia’s reputation as a reliable partner.

Therefore, Delhi seeks a diversity of supply from sources including the United States and several European countries. This is evidenced in India’s preference for French Rafale fighters in the multi-billion dollar Medium Multi Role Combat Aircraft (MMRCA) fighter tender.

India’s MMRCA tender is for procuring 126 fighters to replace squadrons of MiG-21s. The deal will see France supply a number of aircraft fully built and ready to fly — while the remainder will be built under a technology transfer agreement by Hindustan Aeronautics.

Moreover, India is looking to be 75% self-reliant in defence production by 2020-25. It will also seek to become a weapons exporter and probably promote partnerships with Russia. The BrahMos Aerospace programme has been a particular noteworthy area of close cooperation between Russia and India with the creation of the BrahMos Supersonic Cruise Missile.


Pakistan may also provide a new opening for Russia. On November 20, Russia and Pakistan signed a military cooperation agreement, reportedly involving a deal for Moscow to supply 20 Mi-35 transport helicopters to Islamabad.

Middle East

Besides Asia, Russia has been actively looking for new customers for its arms in the Middle East. Russia has recently concluded significant contracts with Iraq for helicopters and air defence systems worth 4 billion dollars and Egypt for air defence systems worth 2 billion dollars.

Latin America

In Latin America, Russia remains hopeful of selling fighter aircraft to Brazil and Argentina. Russia has sold air defence systems to Brazil and hopes to develop a defence industrial partnership that might parallel its military cooperation with India.

Competitive sectors

The sectors in which Russian weapons systems are considered equal or superior to Western equivalents include air defence, fighter aircraft, helicopters, submarines and cruise missiles. These are the sectors in which Russia’s defence industry can compete with the most advanced Western suppliers, with weapons such as the S-300 air defence system, the Su-35 fighter jets and the Kilo class submarine being noteworthy. Russia can also be competitive in sectors such as tanks, armored vehicles, small arms, artillery, and small combat ships. These are sectors where Russian weapons are not as good as Western equivalents, but are generally significantly cheaper. This price difference has allowed them to be competitive in many countries despite lower quality and/or inferior characteristics.

Ukraine delays

However, Russian arms sales have largely depended on selling late Soviet designs, with new designs proving more difficult to manufacture. The freeze on military cooperation with Ukraine may lead to further delays as many Russian weapon systems depend on Ukrainian components and the transition to Russian domestic substitutes is expected to take two to three years.

Energy concerns drive China-Central Asia defence ties

Here’s the latest of my Central Asia series of Oxford Analytica briefs. This one is from late February.


In shaping its relations with Central Asian states, Beijing has primarily focused on developing energy imports and forging economic ties in other areas. At the same time, China faces several security concerns emanating from the region, most importantly, Islamic radicalism and regional separatism. Beijing has been attempting to address these concerns via multilateral and bilateral cooperation with Central Asian states. The conflicts and tensions are likely to become more acute as NATO begins to withdraw from Afghanistan.


  • China’s desire to avoid alienating Russia has prompted it to de-emphasise military ties in favour of economic and trade relations.
  • Most Central Asian states prefer the focus on trade relations with China, although Uzbekistan has recently sought to increase military ties.
  • Chinese leaders favour multilateral initiatives, which countries in the region regard as less threatening than bilateral approaches.


Although China has long sought to increase its influence in Central Asia, it has sought to do so largely through economic and trade relations, rather than in the security sphere. As a result, China’s military ties with Central Asian states are relatively limited. This is due to a combination of factors:

  •  Beijing is keen to avoid alienating Moscow, which continues to see itself as the primary guarantor of Central Asian security.
  • Central Asian leaders are concerned that China is already enjoying a disproportionate degree of influence in the region. This has led them to be extremely cautious in extending military cooperation.
  • China is reluctant to become the region’s main security guarantor, due to a combination of its long-standing policy of non-interference abroad, and more significant security challenges elsewhere, especially in its maritime region.

Multilateral initiatives

The primary mode of interaction between China and the Central Asian states in the security sphere revolves around multilateral initiatives organised through the Shanghai Cooperation Organization (SCO). These are closely related to China’s desire to combat terrorism, separatism and extremism. As a result, most multilateral security activities in the region that involve China revolve around counter-terrorism.

Peace Mission exercises

The Peace Mission series of counter-terrorism exercises have been held since 2003. The most recent took place in Tajikistan in June 2012 and included participants from all of the SCO member states except Uzbekistan. This was the smallest of the eight exercises held to date, highlighting the lack of emphasis on the military component of regional cooperation within the SCO. Uzbekistan has consistently refused to participate in the SCO exercises. The Uzbek leadership’s fear of domination by external powers — Russia, in particular — has made it keen to avoid any possibility that potential conflicts among Central Asian states might be internationalised.


China has also established a regional organisation dedicated to fighting terrorism. The Regional Anti-Terrorism Structure (RATS) of the SCO is dedicated to coordinating the anti-terrorist activities of member states, with a particular focus on radical Islamist organisations. RATS was established in 2004 and is headquartered in Tashkent, capital of Uzbekistan. In recent years, it has expanded its activities to include counter-narcotics coordination.

Bilateral cooperation

Kazakhstan is the most significant partner in China’s bilateral security activities in Central Asia. The two countries have had regular military exchanges since 1993 and have engaged in numerous, though mostly small-scale, military exercises since 2002. As with the multi-lateral activities, China’s military engagement with Kazakhstan focuses on non-traditional threats such as terrorism and drug trafficking. China provides a significant amount of military assistance to Kazakhstan, but it is limited almost entirely to non-lethal equipment.


China’s security relations with Kyrgyzstan are more limited and opaque. They are focused primarily on countering Uighur separatist networks. Beijing has also provided equipment to the Kyrgyzstani security forces, but as with Kazakhstan, this has been limited to non-lethal goods such as vehicles and computers.

Turkmenistan and Tajikistan

Security relations with Turkmenistan and Tajikistan are not a priority for China. With Turkmenistan, the basis of the bilateral relationship is natural gas exports. Security assistance is provided by Beijing in order to ensure that pipelines and other energy infrastructure are protected. China’s interests in Tajikistan are also very limited due, in part, to the widespread hostility towards the Chinese in Tajikistan, which is largely driven by the success of a recent Chinese effort to renegotiate the border between the two countries.


Uzbekistan withdrew from the Russia-led Collective Security Treaty Organization (CSTO) in June 2012, not long after President Islam Karimov had signed a strategic partnership agreement with China on the sidelines of an SCO summit. These circumstances, in conjunction with a prior visit to Tashkent by the chief of the Chinese General Staff, have led to speculations that Karimov decided to strengthen the security partnership with China at the expense of the traditionally strong ties with Russia’s military and security establishment. So far, China has not given any indications that it is eager to make this relationship deeper than its security relations with the other four Central Asian states.

Afghanistan concerns

Beijing is concerned with the potential spread of Islamic radicalism and political instability in Central Asia in the aftermath of NATO’s planned withdrawal from Afghanistan. It is particularly worried that instability in Central Asia would negatively affect its ability to import energy. The potential for the instability to spread to Xinjiang is an important secondary concern. Both of these threats may be realised if Afghanistan returned to a state of civil war or if the Taliban came back to power and began to export its ideology and methods of governance to Central Asia.

China will continue to tread cautiously, since the political reservations that limited its military involvement in Central Asia are equally relevant for Afghanistan. It will seek to ensure that its security initiatives in the region remain largely multilateral.

What next

China will continue to emphasise economic relations with Central Asia while soft-pedalling military ties, which will largely focus on the security of Chinese energy imports and continued stability in Xinjiang. Despite increased security concerns in the aftermath of the NATO withdrawal from Afghanistan, China will not attempt to become a regional security guarantor. It will leave that role primarily to Russia and focus instead on establishing its economic dominance in Central Asia.

Great Powers vie for sway in Central Asia

Here’s an Oxford Analytica brief from early February on basing in Central Asia.


As NATO and the United States prepare to withdraw the bulk of their military forces from Afghanistan in 2014, both regional powers and local actors in Central Asia are preparing for the aftermath. NATO countries have already negotiated short-term access to new and existing military bases in the region to facilitate the step-by-step withdrawal of their troops. At the same time, the United States and Russia are working out deals with local players to maintain their military presence in an effort to preserve regional security, as well as guarantee their long-term influence in Central Asia.


  • The Russian military presence in Kyrgyzstan is becoming more entrenched due to the recent changes in the legal status of its facilities.
  • US influence in Central Asia will decline after NATO’s withdrawal from Afghanistan, as the region is not a US foreign policy priority.
  • Given its de facto economic dominance in Central Asia, China is cautious about stepping up its military involvement in regional affairs.

What next

The Western focus on Afghanistan will decline after the NATO operation is completed. The United States will seek to maintain a presence at the Manas base in Kyrgyzstan, but the number of personnel there will depend primarily on the supply needs of the US troops remaining in Afghanistan after 2014. Russia, on the other hand, will aim to solidify its position as the dominant regional security provider. Finally, China will continue to strengthen military ties with Central Asian states, though it will stop short of the potentially incendiary step of sending its forces to the region.


Over the past few months, discussions of post-2014 military bases in Central Asia have resurfaced. Although Moscow and Washington remain the key contenders in their efforts to ensure continued military access to the region, several other countries involved in NATO operations in Afghanistan have sought to secure access to the bases as they are beginning to plan troop withdrawals. For example:

  • Germany wants to maintain its lease on the base in Termez, Uzbekistan; and
  • France recently signed an agreement with Kazakhstan to develop a military transit hub in Shymkent.

Both countries are almost certainly going to pull out of these bases once the withdrawal of their troops is complete. Russia and the United States, on the other hand, will likely stay for the longer term.

US-Russian Manas rivalry

The Manas transit centre in Kyrgyzstan served as the key link in the US effort to bring equipment and troops to Afghanistan. It is poised to play a similar role during the US withdrawal from the region. At the same time, there is a great deal of competition for access to Manas after 2014.

United States

Kyrgyzstan’s President Almazbek Atambayev sees the base as a regional airport. The United States appears to support Atambayev’s plan and has already submitted a proposal to transform the facility into a civilian aviation hub. This may prove beneficial in future negotiations with Kyrgyzstan should Washington decide to retain some local military presence. The mid-January visit to Bishkek by the US Assistant Secretary for South and Central Asian Affairs Robert Blake was widely perceived as the first step toward bilateral discussions on the future of the Manas Transit Centre.


Moscow is also keen to provide assistance for Manas redevelopment as it seeks to ensure base access while, at the same time, hoping to prevent the United States from remaining in the country. A delegation of Russian state officials visited Bishkek in December 2012 for discussions about the possibility of establishing a joint Kyrgyzstani-Russian logistics centre at Manas.

Russia: Access to Kyrgyzstan facilities

In December 2012, Russia succeeded in convincing Kyrgyzstan’s government to allow it to consolidate into a unified military base its existing local facilities. These consist of:

  • a weapon test range in Karakol;
  • a signals centre in Kara-Balt;
  • a radio-seismic laboratory in Mayly-Suu; and
  • an airbase in Kant.

Until now, these facilities were governed by several agreements that made them more vulnerable to political pressure from the Kyrgyzstani side. To reduce the risk, Moscow had been looking to change their status for the last two years. The new agreement will last for at least 15 years.

The deal appears to have ended speculation that Russia was planning to build a second military base in southern Kyrgyzstan near Osh. Although Moscow was keen to build a base in that region for several years, the importance of this initiative diminished after the United States announced in the summer of 2010 that it will not proceed with its plans to establish a counter-terrorism training centre in the area.

Russia: Long-term presence in Tajikistan

In October 2012, Russia finalised with Tajikistan an arrangement to extend its lease on local military facilities for 30 years. Tajikistan agreed to forego significant rent payments in exchange for:

  • 200 million dollars toward the modernisation of its armed forces;
  • additional economic assistance, including Moscow’s help with the construction of hydroelectric power stations; and
  • fewer restrictions for Tajik migrant labourers in Russia.

Fuel supplies hurdles

Several obstacles have been delaying the ratification of the agreement in Tajikistan’s parliament. They include duty-free Russian fuel shipments. Moscow insisted on a clause that would prevent Dushanbe from re-exporting the fuel and, after initial reluctance, Tajikistan relented in late January 2013.

Migration issues

The two sides remain at odds over restrictions imposed on Tajik guest workers. The current migration agreement stipulates that Tajikistan nationals are allowed to stay in Russia for 15 days without registration and are eligible for a work permit of up to three years. Dushanbe is seeking to improve the terms of the agreement while, on its part, Moscow is requesting that Tajikistan control the flow of migrants by sending them through dedicated organisations. Migration law is a critical issue for Tajikistan; remittances from its migrant workers in Russia comprise almost half of the country’s GDP.

Despite delays in negotiations, both sides appear committed to completing the deal, which is likely to be ratified in Tajikistan’s parliament in the next 1-2 months.

China: Military reluctance

Although China has strengthened its military ties with Central Asian states through frequent multi-national exercises and occasional arms sales, it has not attempted to establish a permanent military presence in the region. The strategy is part of an effort to assuage the fears shared by Central Asian leaders of excessive Chinese dominance. It also addresses Russia’s concerns of being displaced by China as the security guarantor, having already been sidelined in the economic realm.

Russia and China vie for influence in Central Asia

I’m still swamped with various projects, so in the meantime, here’s another Oxford Analytica brief. This one is from mid-December…


Although China and the United States have focused greater attention on Central Asia in recent years, Russia remains the dominant power in the region. Its size and the cultural, political and economic connections that remain from the Soviet period are such that Central Asian countries are reluctant to take any actions that would antagonise Moscow. For Russian leaders, Central Asia serves as a buffer zone that protects Russia’s southern border from potential threats.


  • Increasing Chinese economic presence in Central Asia will curtail Russia’s efforts to limit China’s regional political influence.
  • After NATO’s exit from Afghanistan, Russia and Central Asian states will cooperate to prevent radical Islam from destabilising the region.
  • Shifting patterns of energy demand and supply will reduce Russia’s ability to use energy as a tool for political influence.


Russia’s various initiatives in Central Asia are shaped by three interest groups with widely divergent interests that often work at cross-purposes to each other:

  • The military and defence industry is focused on the role of great power competition in the region; it seeks to promote arms sales and to increase Russia’s military presence.
  • The energy industry focuses on securing exclusive rights to gas transit from Central Asia to Europe.
  • The security services concentrate on the transnational threats to Russia from radical Islam, terrorism and drug smuggling.

Maintaining monopoly

Throughout the last decade, Russia sought to maintain its energy-transit monopoly on the export of petroleum and natural gas from Central Asia. Until 2005, all major export pipelines from the region went through Russia giving it control over transit fees. Russia’s monopoly over natural gas transit to Europe also gave it political and economic leverage over downstream countries dependent on supplies of Russian natural gas for domestic consumption.

The construction of alternative pipelines over the last decade has eliminated Russia’s monopoly on hydrocarbon transit from Central Asia. Energy-producing states in the region can now sell their products to China and Iran. At the same time, changes in patterns of supply and demand for natural gas in Europe have decreased the political and economic significance of Russia’s remaining monopoly on natural gas supply to some European countries. The development of new methods of shale gas extraction in the United States has increased the supply of LNG to Europe at the same time as the 2008-09 global financial crisis has led to a sharp drop in demand for natural gas.

These factors decreased Russia’s ability to set prices and to use its control of energy supply for political ends, thus reducing the importance of future Caspian pipeline transit. Russia is now likely to focus on energy production in the Caspian Sea region and has already begun to develop several oil and gas fields that it controls jointly with Kazakhstan.

Keeping China at bay

China has sought to increase its economic and political influence in Central Asia without alienating Russia for a number of reasons. For example:

  • Central Asia has become one of China’s primary energy suppliers;
  • Central Asia serves as a security buffer zone between China and both Russia and the United States; and
  • China seeks to prevent Uighur separatists in Xinjiang from using Central Asia as a safe haven.

To further these goals, China made large investments into the Central Asian economies and, in particular, in energy infrastructure. The region provides raw materials to China in exchange for finished products such as machinery, food and consumer goods.

Russian leaders fear that their country’s position in Central Asia is gradually being displaced as China’s political influence and economic power grow. To maintain its sway in Central Asia, Russia has focused on ‘tying’ China into regional networks and institutions while retaining levers of influence through institutions in which China is not a member.

In the security realm, Russia has combined participation in the Shanghai Cooperation Organization (SCO) with its role in the Collective Security Treaty Organization (CSTO). While the SCO provides a neutral forum where Russia can discuss security and plan joint operations and exercises with China, the CSTO allows Russia to address Central Asian security issues without China’s participation. At the same time, Russia has sought to counter China’s economic influence in Central Asia by setting up the Customs Union, which, in 2014, is expected to include Kyrgyzstan and Tajikistan. Recent discussions concerning the establishment of the Eurasian Union in 2015 are also part of the effort to cement Central Asian economic ties to Russia.

Ensuring political stability

Although most of the regimes in the region have endured for over 20 years, Central Asia is now entering a period of potential political instability.

  • Uzbekistan, Tajikistan and Turkmenistan are all bracing for a potential resurgence of Islamist radicalism in the aftermath of the likely US withdrawal from Afghanistan in 2014.
  • Kazakhstan and Uzbekistan — both states ruled by authoritarian presidents in their mid-1970s — are highly vulnerable to succession risks.
  • Kyrgyzstan is still recovering from two episodes of violent regime collapse in the last decade.

The potential destabilising influence of radical Islamist groups and drug smuggling networks is a key concern for Russia. Moscow believes that the current Central Asian leadership has been able to contain the threat of radical Islam and is worried that a regime change, combined with the withdrawal of NATO troops, would facilitate the spread of radical Islam to Russia.

These concerns have led Russia to provide various forms of security assistance to the region’s more vulnerable states. In the last year alone Russia has:

  • extended leases on military bases in Kyrgyzstan and Tajikistan;
  • sold weapons to Kazakhstan and Turkmenistan;
  • sought to persuade Uzbekistan to re-engage with the CSTO; and
  • agreed to provide 1.3 billion dollars to Kyrgyzstan and Tajikistan to modernise their military forces and ensure their security after the departure of Western troops.

The extension of Russia’s military base agreements with Central Asian countries, together with Kyrgyzstan’s decision to ask the United States to vacate the Manas base after the NATO departure from Afghanistan, will leave Russia as the sole security provider to vulnerable states in the region.

CONCLUSION: Russia’s security relations with Central Asian states will strengthen as they face the consequences of NATO’s withdrawal from Afghanistan in 2014. At the same time, Moscow’s efforts to remain the dominant economic partner of the region’s key players will likely falter as China strengthens its position as the main recipient of Central Asian energy exports and a key supplier of imported consumer products.

Problems of Post-Communism, November 2012 Table of Contents

Volume 59 Number 6 / November-December 2012 of Problems of Post-Communism is now available on the ME Sharpe web site at

This issue contains:

The 2012 Political Reform in Russia: The Interplay of Liberalizing Concessions and Authoritarian Corrections  p. 3
Grigorii V. Golosov
Modernization and Historical Memory in Russia: Two Sides of the Same Coin  p. 15
Miguel Vázquez Liñán
Reforming Post-Communist Welfare States: Family Policy in Poland, Hungary, and Romania Since 2000  p. 27
Tomasz Inglot, Dorottya Szikra, Cristina Raţ
Civil Society with Chinese Characteristics?: An Examination of China’s Urban Homeowners’ Committees and Movements  p. 50
Ngeow Chow Bing
A Salute to Ronald Linden, Outgoing Associate Editor of Problems of Post-Communism and a Welcome to Sherrill Stroschein, Incoming Associate Editor of Problems of Post-Communism  p. 64
Dmitry Gorenburg, Editor