In Geopolitics Today - Monday, May 16th
Finland and Sweden Prepare to Join NATO, EU Issues New Guidance on Russian Natural Gas Payments, US Aid Efforts Bypass Foreign Governments
Finland and Sweden Prepare to Join NATO
The governments of Finland and Sweden have announced their intentions to submit a formal request to join the North Atlantic Treaty Organization (NATO). In doing so, the two Nordic countries confirmed officially that they will be ending decades of military non-alignment. Though expected to be supported by a majority of NATO's member states, the announcement has already faced some resistance from Turkey. A period of bargaining may follow as Ankara expresses reservations about Sweden failing to extradite what Turkey considers “terrorists”.
While Sweden and Finland’s prospective NATO accession is politically big news, militarily it is less so. Both countries have worked with NATO in order to develop a considerable degree of interoperability in recent years. After years of cohabitation and joint drills with the alliance, these two Nordic countries are now formally confirming this growing cooperation at a time of increased military tensions. Military non-alignment has been a central tenet of Swedish national identity for two centuries, and the security policies of both Finland and Sweden have been coordinated for decades. However, one roadblock to this joint bid could come from veto-wielding Turkey, which has signalled it may object to this enlargement of NATO.
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EU Issues New Guidance on Russian Natural Gas Payments
The European Union has prevented a short-term disruption to natural gas supplies for its member states by softening its stance on the import of Russian supplies. The European Commission sent its revised guidelines to member states in which Brussels said energy companies can keep buying gas without breaching sanctions on the condition they make their obligations are fulfilled following payment in euros or dollars.
The European Commission has chosen to give some member states a way to avoid breaking EU law and continue to import natural gas from Russia. The Commission has clarified that European companies can pay for Russian natural gas using the Russian-sponsored payment mechanism at Gazprombank without being in violation of EU sanctions. In the updated guidance, the European Commission said companies can now set up an account at Gazprombank and deposit currency in the accounts to pay for Russian gas, but noted that they must do so in the original currency stipulated in their gas contracts, and must consider the transaction complete when the currency is deposited.
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US Aid Efforts Bypass Foreign Governments
A large portion of all the dollars spent by the United States on foreign aid goes toward US-based agencies, contractors, and nongovernmental organizations, largely bypassing recipient countries' governments. By most accounts, the United States is the world’s largest donor of international aid, yet a large portion of this spending provides next to no finance to directly influence or support the activities of foreign governments. This, some commentators argue, has contributed to a rise in cooperation between many governments and Beijing which is detrimental to US interests.
The US pays its military to provide emergency relief services; subsidizes private firms for infrastructure projects; funds NGOs to deliver aid in the health, education, and humanitarian sectors; and pays billions of dollars to private consulting firms. Yet governments are responsible for the majority of infrastructure investment, and still provide the vast bulk of health and education services across the world. One side-effect of choosing to side-line foreign governments in aid distribution efforts is that Washington left a vacuum which has been exploited by China. Increased direct financial support for dozens of foreign governments has strengthened Beijing's international standing, and has. Thus far, the response from the United States has not included an alternative source of infrastructure investments for many who have signed up to the Belt and Road Initiative.
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