Industry Europe – Issue 25.1

Page 3

OPINION

VICTORIAHATTERSLEY

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No consensus on Russia As the Ukraine conflict carries on, Western powers seem unable to reach an agreement on how to deal with Vladimir Putin’s expansionist ambitions.

T

he announcement that the British Museum has loaned part of the Parthenon marbles to a Russian museum has caused consternation in some quarters. The headless statue of Greek river-god Ilissos is now on display at the State Hermitage Museum in St Petersburg. After all, relations between Russia and the West have been frosty to say the least in the wake of Russia’s invasion of eastern Ukraine earlier this year and the shooting down of Malaysia Airlines flight MH17 in July. Why then, argue some spoilsports, should the UK be seen in any way to endorse the Russian regime? Is the message that all of this is OK as long as we are sharing our headless artefacts? The British Museum’s rejoinder is that they “have always believed that such loans must continue between museums in spite of political disagreements between governments.” One thing is clear, at any rate – the Greeks can’t have them back. And here is one of the ironies: The marbles are only in their present home because Lord Elgin, the British ambassador to the Ottoman Empire, swiped them from the Parthenon in Athens in the 19th Century. Understandably, the Greek government would prefer it if they were returned. Historically, Russia is by no means alone in its snatch and grab approach – whether the target is priceless statues or entire countries. But then perhaps this is only fitting: the mixed messages inherent in this smaller issue seem merely to be a reflection of western Europe’s attitude towards the Russian problem in general. There appears to be no clear consensus on how to deal with president Vladimir Putin and his land-grabbing tendencies.

Differing approaches For example, German chancellor Angela Merkel recently offered a blistering criticism of Putin, accusing him of interfering in the domestic affairs of Balkan states looking to

form closer ties to the EU. He was, she said, “creating problems” in Moldova and Georgia. When asked by Die Welt am Sonntag newspaper about the possibility of war between Russia and the West over the Baltic states – in recent weeks we have seen ‘unprecedented’ Russian naval and air force activity in the Baltic Sea region – her reply was: “The question of war in the Baltic States does not arise.” Although she went on to add: “Nevertheless, Article 5 of the Nato Treaty, that is the obligation of mutual support, applies to all allies.” This no-nonsense attitude is in contrast to that of France, whose President Francois Hollande recently made an unannounced stop in Moscow for a two-hour meeting with Mr Putin to discuss the Ukraine crisis. (Curiously, Mr Hollande, as though to further emphasise the casual nature of the encounter, described it thusly: “I was just flying over Moscow when I decided to make a stop here.” As one does.) It is unclear what lurks behind this lack of agreement on how to deal with Mr Putin. Perhaps France is sheepish about the two warships it has so far failed to deliver to Moscow, having been under pressure from its western allies to cancel the contract (although it has yet to do so). After the meeting Mr Putin indicated that the bear’s fur would not be unduly ruffled if France refused to hand over the ships, as long as the money already paid was returned. And meanwhile the conflict in Ukraine rumbles on, where more than 4300 have died since last spring. There is also a question mark over how well its economy is likely to hold up. The International Monetary Fund has identified a $15bn shortfall in its bailout for the war-torn country and has warned western governments that the gap needs to be filled within weeks or it risks financial collapse. Muddying the waters still further is the fact that Wolfgang Schäuble, the German finance minister, said recently he had called on his Russian counterpart, Anton Siluanov, to

ask him to roll over a $3bn loan the Kremlin made to Kiev last year. UK finance minister George Osborne was probably not alone in expressing surprise at the EU asking for help from Russia whilst simultaneously sanctioning the Kremlin over the Ukraine. Look at this tangle of thorns, indeed.

Far-right links Just as disturbing is Russia’s move towards cultivating links with the far right in Europe. For example, the founder of France’s Front National (FN), Jean-Marie Le Pen, borrowed €2m from a Cyprus-based company, Veronisa Holdings, owned by one Yuri Kudimov. And who is Kudimov? A former KGB agent, now banker, with close links to the Kremlin – that’s who. More recently, the FN also confirmed it had taken a huge €9.4 million loan from the First Czech Russian bank in Moscow. Elsewhere, Putin continues to pitch his woo in eastern Europe. Since as far back as 2009, Russia has been establishing ties with Slovakia’s far-right People’s party, Bulgaria’s nationalist, anti-EU Attack movement and Hungary’s radical nationalist Jobbik party. It is perhaps convenient for Mr Putin that he is also able to take advantage of a rising wave of anti-immigration sentiment throughout western Europe. UK Prime Minister David Cameron’s talk of imposing ‘emergency brakes’ on the number of EU migrants moving to Britain and recent anti-Muslim protests across Germany may well have had the Russian premier rubbing his hands together with glee. Is it the case that Mr Putin is in fact stealing a more insidious march on Europe whilst its major powers look the other way? Yes, the Russian economy isn’t looking healthy just now what with falling oil prices and the effect of European sanctions, but it is by no means beaten. Time will tell. Europe hasn’t lost its marbles over Russia yet, but it may want to be careful as to whom it lends them out. n Industry Europe 3


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Articles inside

Innovative communications GN Netcom

5min
pages 176-181

Environmentally chilled EPTA Group

5min
pages 172-175

Gearing up for new markets TTN Veneta

5min
pages 168-171

Active even in critical times Makstil

5min
pages 164-167

Pioneering smarter ventilation systems SALDA

6min
pages 182-188

Completing the circle Corinth Pipeworks

4min
pages 160-163

Sheer performance CIDAN Machinery

5min
pages 157-159

Transparent success Sangalli Group

4min
pages 154-156

Glass technology SCHOTT

5min
pages 150-153

Renewable energy – it grows on trees Balcas

7min
pages 146-149

Quality cooking oil from Hungary Bunge

6min
pages 138-142

Tradition and innovation in Italian wines

3min
pages 143-145

End-to-end electrical solutions CG

8min
pages 133-137

Energy efficient power solutions Wärtsilä

12min
pages 122-132

The power of commitment

4min
pages 118-121

Out in front Gazelle

4min
pages 98-101

A sustainable future for P&G Procter & Gamble

15min
pages 102-110

Building a greener future Skanska

5min
pages 94-97

Step on the gas Hexagon

4min
pages 114-117

Heating Budapest city Főtáv

5min
pages 111-113

Fresh thinking and design KÉSZ Group

6min
pages 86-89

With a true team spirit GranitiFiandre

8min
pages 90-93

Steering a course for growth Musashi

5min
pages 74-76

Continued growth for chemical giant TVK

6min
pages 84-85

In full colour Ampacet

8min
pages 80-83

Top gear performer LuK Savaria Kuplunggyártó

4min
pages 77-79

Perfect fit Johnson Controls

6min
pages 70-73

Quality components for the automotive industry

11min
pages 64-69

Advanced fastening systems Agrati

4min
pages 60-63

The first choice for automation YASKAWA

4min
pages 56-59

Power players SPARKY GROUP

4min
pages 52-55

Mission accomplished JEB

6min
pages 48-51

Combining old and new Agrikon Kam

4min
pages 40-43

At the leading edge Asco

14min
pages 26-34

Focus on fertile growth Yara International

4min
pages 35-39

Pioneering steel industry solutions Danieli Automation

4min
pages 44-47

Focus on France Ian Sparks reports from Paris

4min
page 25

Technology spotlight Advances in technology

3min
page 22

Bill Jamieson Jean-Claude’s bulging billions

4min
pages 6-7

Working together to get medicines to market

4min
pages 14-15

Linking up Combining strengths

7min
pages 18-19

Opinion No consensus on Russia

8min
pages 3-5

Uneven growth Global pharma industry held up by Europe’s slow recovery

10min
pages 8-10

Moving on Relocations and expansions

4min
page 20

Winning business New orders and contracts

7min
pages 16-17
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