Heiko Pleines

Foreign Investment and National Interests in the Russian Oil and Gas Industry

This article examines the political economy of foreign direct investment in the Russian oil and gas industry in order to explain the limited role of foreign capital in this sector. There are three forms of foreign direct investment in the Russian oil and gas industry: (1) joint ventures, (2) investment within the framework of a production sharing agreement (PSA) and (3) foreign equity investment. The development of these three forms of foreign direct investment is analysed with special reference to the interests of the parties involved, before a conclusion on the political factors determining the conditions for foreign investment is made.

Weakness as Precondition of Smooth Integration? Representation Strategies of Functional Interest Groups from New Member States at the EU Level

Abstract Based on an empirical study of business associations, trade unions and value-based NGOs from new EU member states this contribution argues that interest groups from the new Central and East European member states could smoothly be integrated into the EU system of interest representation with the help of European umbrella organisations. European umbrella organisations offer immediate access to the EU level, provide a role model of engagement at the EU level and also increase information flows from the EU level to national interest groups and with that into national debates and national policy-making processes. Accordingly, theories of horizontal integration should not only look at the limited impact of interest groups on the implementation of the EU acquis communautaire, but also at the effects the smooth integration of new interest groups at the EU level has on the Europeanization of new and prospective member states.

Manipulating Politics: Domestic Investors in Ukrainian Privatisation Auctions 2000–2004

Abstract This article focuses on political aspects of Ukrainian privatisation auctions during the presidency of Leonid Kuchma. It contributes to a discussion of the role of big national investors, or so-called oligarchs, in the context of a regime of competitive authoritarianism in Ukraine. A quantitative evaluation is made by means of an assessment of the values of the winning bids in the privatisation auctions under Kuchma and this is linked to a characterisation of the successful bidders in terms of their links to oligarchical networks. As a result distinct strategies of the Yushchenko and the Yanukovych governments towards auctions and towards oligarchs in general can be identified.

Banks and Illegal Activities

Russian Banking considers the rise of commercial market-oriented banks in Russia, their links with government and non-financial companies and their role as intermediaries in the provision of finance for investment. The contributors explore the legacy of the Soviet past and current functions of the Russian banking system, contrasting these with those in other post-communist societies and describing peculiarities such as informal networks and corruption.

Representing Workers or Presenting EU Prescriptions? Trade Unions from Post-Socialist Member States in EU Multi-Level Governance

From both the historical and legal perspectives, trade unions belong to the non-state actors with the highest degree of involvement in political representation in European societies. From a historical perspective, trade unions were one of the first collective actors with a mass following to emerge in the wake of industrialization and, therefore, received special attention from policy-makers. As a result, their prerogatives, over other interest groups, together with those of employers’ associations, were codified in most European countries through special legislation on wage bargaining and social dialogues. Through the European Social Dialogue they also have — at least de jure — a privileged position in EU level policy-making.

The International–Domestic Nexus in Anti-corruption Policy Making: The Case of Caspian Oil and Gas States

Abstract This article looks at the application, in the anti-corruption realm, of the analytical framework developed for transnational human rights advocacy by Risse, Ropp, and Sikkink. Focusing on Azerbaijan, Kazakhstan, and Turkmenistan, this article shows that the level of integration with Western actors on the state and corporate levels determined the degree to which the transnational anti-corruption regime has been accepted in the Caspian region. As the transnational regime does ultimately lack coercive powers, the tension between transnational demands and national political elites does not translate into serious conflict, as a broader formal acceptance of the transnational anti-corruption regime offers national actors only limited opportunities to genuinely promote the issue.

Factors Influencing Corporate Governance in post-Socialist Companies: an Analytical Framework

In explaining the corporate governance performance of post-socialist companies, this article identifies four factors of influence: (1) pressure from majority shareholders, (2) pressure from outside minority shareholders, (3) pressure resulting from internationalization/ globalization and (4) pressure exerted by the state in the form of legal regulation. If all four factors have an impact on corporate governance performance, their interaction has to be explained. On the basis of research conducted thus far, this article suggests an analytical framework for the examination of corporate governance performance of postsocialist companies. Case studies of oil and gas firms from Central and Eastern Europe illustrate how the above factors influence a company???s corporate governance performance.

Russian Business Interests and the Enlarged European Union

The European Union is Russias most important partner in foreign economic activities. With its eastward enlargement in 2004 the European Union has—not only in geographical terms—moved even closer to Russia. It should be expected that strong economic ties cause Russian business interests to influence related matters of foreign policy. This study therefore starts by identifying Russian business interests vis-a-vis the EU. Apart from those businesses already heavily involved in transactions with the EU, businesses with ambitious plans for future engagement and businesses which face heavy competition from EU companies are also included. In a second step these business interests are then analysed in detail. The specific interests of Russian companies are depicted to establish the points of conflict with EU positions. The article then describes how Russian companies lobby their government in order to gain support and how the Russian government reacts. The result is a more detailed assessment of the role of Russian business in Russias policy towards the EU.

Demokratische Transformationen im Europa des 20. Jahrhunderts

Die Geschichte politischer Regime im Europa des 20. Jahrhunderts ist gepragt durch den Wechsel zwischen Demokratie und Diktatur. Dieser Wechsel beeinflusste aufgrund seiner gewaltsamen Verwerfungen nicht nur einen grosen Teil der Weltgeschichte, er ist gleichzeitig sowohl Ursache als auch Hemmnis fur den europaischen Einigungsprozess, der die Existenz von Demokratien zur Voraussetzung hat. Um den europaischen Einigungsprozess zu verstehen, ist es deshalb wichtig, die Entwicklungen der ersten Halfte des 20. Jahrhunderts mit in den Blick zu nehmen. In einer globalen Perspektive hat der amerikanische Politikwissenschaftler Samuel Huntington (1991) diesen Regimewechsel im pragnanten Bild der drei demokratischen Wellen und der autoritaren Gegenwellen zusammengefasst. Dieses Bild ist pragnant und wird daher oft zitiert. Es ist jedoch rein beschreibend und liefert keine Erklarungen. Eine Analyse des konkreten historischen und regionalen Kontextes ist deshalb unverzichtbar, um die Transformation politischer Regime in einzelnen Staaten zu verstehen. Dieser Beitrag stellt einen analytischen Rahmen dar, der einerseits gemeinsame Entwicklungsmuster erfasst und andererseits Platz fur die Spezifika jeweils unterschiedlicher politischer Entwicklungen lasst. Er endet mit einem Ausblick auf die sich Anfang des 21. Jahrhunderts abzeichnenden neuen demokratischen Herausforderungen.

Introduction: The political economy of the Caspian oil and gas states

The Caspian oil and gas states have considered the oil boom, which started in the late 1990s, as a great opportunity to achieve economic growth, political stability and geopolitical relevance. However, in the social sciences, the impact of resource booms is viewed rather negatively. In politics, resource booms are said to strengthen authoritarian regimes and to cause bad governance and corruption. This special section examines the major intersections between politics and the energy sector to analyse the political economy of the oil boom in Azerbaijan, Kazakhstan, and Turkmenistan. Thereby, the authors consider the interplay between considerable oil resources and politics, which has given rise to challenges and tensions in these countries. The first two contributions cover the international setting. Although the oil and gas reserves of the Caspian Sea Basin are relatively small globally, they are considered of major geopolitical importance by external powers because they are controlled neither by the Organization of Petroleum Exporting Countries (OPEC) nor by the Russian Federation. Therefore, they offer the United States (US) and the European Union (EU), as well as China, the opportunity to diversify their energy supplies. This opportunity resulted