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March 2015 9/2015

Sinikukka Saari Senior Research Fellow The Finnish Institute of International Affairs

The New Alliance and Integration Treaty between and South > When does integration turn into annexation?

Crimea is not Russia’s only land grab in the post-Soviet neighbourhood. Russia has just signed an integration treaty effectively abolishing the border between Russia and , a separatist enclave of . In practice, it is hard to see much difference between integration à la South Ossetia and annexation.

Last Wednesday, March 18, was a treaty with South Ossetia, and the It has been estimated that 90 per very good day for Russian President one with – the Alliance and cent of the “state” budget comes Vladimir Putin. Only two days after Strategic Partnership Treaty, which directly from the Russian Federation. his re-appearance in the public eye, was signed and ratified in January Relatively speaking, Russia sub­ he stole the spotlight big time. First, 2015 – change very little in practice. sidises South Ossetia more heavily in the morning, he signed a Treaty After Russia’s official recognition of than its own republics of of Alliance and Integration with these separatist enclaves of Georgia or – or Crimea for that Leonid Tibilov, the de facto leader as independent states in August matter. The currency in use in South of the Georgian breakaway republic 2008, their dependence on Russia Ossetia is the Russian rouble – and of South Ossetia. In the evening, has only deepened by the year, both hence it is already integrated into Putin took the stage just outside the economically and politically. Indeed, the Russian financial system. Kremlin in a huge rally organised to it is hard to detect almost any signs Thirdly, Russia has a military base celebrate the first anniversary of the of sovereignty in today’s South and some 3,500 Russian soldiers annexation of Crimea. Ossetia. permanently stationed in South The timing was no coincidence, of First of all, an estimated 90 Ossetia. Furthermore, the so-called course. The day vividly underlined per cent of South Ossetia’s (again, border between South Ossetia and the expansion of Russia’s control estimated) 30–40,000 inhabitants Georgia has been almost completely in its post-Soviet neighbourhood. are, in fact, Russian citizens, mean- sealed off and is guarded by a 1,500 While the Crimean annexation was ing that they have Russian passports. strong Russian FSB border guard. carried out quickly and officially, Russia started this systematic “pass­ The permanent presence of 5,000 the annexation of South Ossetia has portisation” policy back in the early armed in a region with been implemented gradually and 2000s, after Putin had been elected perhaps only 30,000 inhabitants is unofficially. Both Crimea and South president. Critics, such as the a significant number – one in seven Ossetia are nevertheless part and Georgian leadership in Tbilisi, claim residents of South Ossetia are armed parcel of the same trend in Russian that this was part of the preparation personnel from Russia. The de facto foreign policy that is gaining ground for a Russian takeover of the region: government of South Ossetia also year by year: the disregard of the the aim of the passportisation policy always includes Russian ministers. sovereignty of other post-Soviet was to create “compatriots” that So does the new Alliance and states when defending Russia’s Russia could then claim to defend Integration Treaty really change national interests in the region. militarily ( are an ethnically anything on the ground? The de facto leadership of South and linguistically unique minority True, the new treaty partly codi- Ossetia has greeted the new treaty residing partly in Russia, partly in fies – and thus cements – the already as a first step towards becoming Georgia). existing reality. However, the part of Russia, their officially stated Secondly, in practice, the South biggest change involves the border goal. However, some observers have Ossetian de facto state has no between South Ossetia and Russia claimed that the new integration income apart from Russian funding. – which is officially still the border 2

Finnish Institute of of Georgia and Russia. In practice, guard the border between South International Affairs this border has now been abolished: Ossetia and Georgia, isn’t South Kruunuvuorenkatu 4 border formalities and customs Ossetia effectively part of Russia? POB 400 barriers are vanishing and Russia 00161 Helsinki and South Ossetia form a “single space” (Articles 3 and 5). This is also Telephone a clever way to get around the fact +358 (0)9 432 7000 that South Ossetia cannot formally join the Eurasian Economic Union as Fax other members , Belarus +358 (0)9 432 7799 and have not recognised its independence. www.f iia.f i In the treaty, Russia pledges that it will also hand Russian passports to the remaining residents (estimated 10 per cent) of South Ossetia and grant Russian social and health insurance to all Russian passport holders of South Ossetia. Russia will also make sure that South Ossetian officials receive the average pay of Russian citizens in the North Federal District of Russia. The same goes for pensions: Russia promises to increase pensions to the average level of the Federal District of Russia. And finally, The Finnish Institute of International Affairs is an after the treaty, schools at all levels independent research institute that produces high-level research to support political decision-making and in South Ossetia are obliged to follow public debate both nationally and internationally. the Russian curriculum. So, if all the residents of South All manuscripts are reviewed by at least two other Ossetia are Russian citizens, all the experts in the field to ensure the high quality standards and benefits are Russian, of the publications. In addition, publications undergo professional language checking all the money comes from Russia, and editing. The responsibility for the views there is no border between South expressed ultimately rests with the authors. Ossetia and Russia, and Russians