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School of Marine Affairs > Research > Program on Ocean Governance (POG) > Seminar on US Ocean Governance > US Policy Toward Maritime Russia: Reflections and Recommendations

US Policy Toward Maritime Russia: Reflections and Recommendations

Vladimir M. Kaczynski
Associate Professor, School of Marine Affairs; Adjunct Associate Professor, Jackson School of International Studies
University of Washington

At the time of important political, social and economic changes in the World and dramatic evolution of the US global policies it might be of interest to reflect onsome global aspects of the marine component of this policy and stress the importance of the US international marine relations with other regions and countries. This could be helpful for the Ocean Policy Commission in its search for solutions and recommendations to the US Government.

From my perspective there are two US international policy areas that should be taken into account:

1. Maritime relations with Russia,
2. US marine policy toward the III World.

Initially we will concentrate on the US marine perspectivein regard to the Russian Federation.

At the present time we are witnessing significant change in the tone of political and strategic negotiations between the US, NATO and the Russian Federation. Generally, the political climate is improving and Russia declares its interest in joining the Western World in the struggle against terrorism, in building more secure Europe and improving relations with the United States.

This improved political environment is calling for more constructive US-Russian maritime relations particularly in the Pacific Ocean.

Immediate possibilities for the US private sector to take advantage of the changing political climate between two countries are rather slim. A short review of the current situation proves this point: Russians have mismanaged their marine living resources that are presently severely depleted. Their marine sectors (fisheries, shipping, shipbuilding, ports and ocean research capabilities) are undergoing continuing decapitalization, decline in employment, low productivity and absence of available capital for their reconstruction. Russian policy specialists are blaming free market system as a major reason of the crisis and request further subsidies or governmental financing of the state controlled enterprises. Corruption, torsions between federal and provincial governments and distorted private ownership relations in these sectors (particularly vessel ownership) are compounding the situation and make any reform programs ineffective.

The collapse of the Russian marine economy is affecting US interests as many US companies lose their earlier investments in the Far East particularly long-term ship leases, equipment delivered on credit basis, supplies for the Russian fishing fleet. Many US companies doing business in Russian Far East announced bankruptcy as exports of marine technology and services of the US shipyards for Russian ownerspractically stopped. The US, Japanese and Korean imports of seafood from Russia supports pirate fishing and illegal exports operations that result in the massive overexploitation of crab and other valuable resources and the flight of Russian capital to overseas banks. Foreign suppliers do not want to finance any development projects in Russia because of the lack of proper financial laws and insufficient protection of foreign capital in that country.

In these circumstances there is a need of a serious reevaluation of the US policies toward maritime Russia. What is needed are the high level decisions and agreements between the US and Russian Government that would lead to more energetic and comprehensive aid and marine collaboration program addressing these Russian maladies.

The USAID, Eurasia Foundation, the World Bank or UNDP/FAO - are not showing an interest to address these problems. For example,in 1998 for the battle against fishing piracy and illegal exports of Russian seafood and timber equal to approx. US$ 1.5 billion per year the World Bank has devoted US$ 2,500 only and engaged couple of foreign graduate students to address this issue. This Bank has also withdrawn from funding Fisheries Development Strategy Project in Russia in 1997 in which our School was involved. The net result of this move was the Fisheries Development Strategy prepared by Russian experts and called "Ryba" ( Fish) - 1998. This Strategy turned to be a complete failure and is today criticized by Russian strategists. The Eurasia Foundation (also supported by taxpayers money) has rejected our project to establish marine sector data and information center in Vladivostok,while the US technical assistance for Russian enterprises in the Far Eastwas based on services of retirees-volunteers engaged on behalf of the USAID by Winrock International - a non-profit agriculture development organization localized in Little Rock, Arkansas. The University of Washington and our School are struggling with insufficient funds to support unique in the US courses on marine and business environment in Russia and post-communist republics so our students will be better prepared to address post-Soviet and Russian marine affairs in their future careers.

All these examples indicate that the US marine policy - if any - toward Russia is simply not serious, ineffective,and missing main problems this country is facing today.

Without improving Russian handling of marine economy, resources and marine affairs there will be no trade with this rich in natural resources country, no investment opportunities for US companies, no jobsand no joint conservation measures that would assure sustainability of shared marine resources with the US.

The US (and the Asia-Pacific neighbors) has vital interest in prosperous, free market-orientedmaritime Russia and in conservation of the marine living resources in the Russian Far East seas. As international donors (that use substantial US funds) showed a lack of interest and proved to be ineffective in this area, it is now up to the US to take initiative and design strategies that would be negotiated directly between two countries. These efforts should consider vital US interests but also they must have in mind ahealthy Russian marine economy and well being of its citizens.

The new US marine policy toward Russia should, therefore, include this challenge as an important Commission's recommendation to the US Congress.

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