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3951. Considerations for Taxing Myanmar’s Large-scale Mining Companies

Author:
David Manley, Sebastian Sahla, Ko Ko Lwin, and Khin Saw Htay
Publication Date:
09-2019
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
Despite geological potential, Myanmar's mining sector has attracted few large-scale companies to date and the sector generates little government revenue. The authors of this briefing present the challenges the Myanmar government has faced in designing an effective mining tax regime. They suggest three ways in which the government could attract greater investment and allow the people of Myanmar to maximize benefits from the potentially significant mineral wealth of their country. The briefing is informed by the Natural Resource Governance Institute’s engagement with Myanmar’s Ministry of Natural Resources and Environmental Conservation (MONREC), helping the ministry implement strategic reforms.
Topic:
Natural Resources, Tax Systems, Mining, Private Sector, and Revenue Management
Political Geography:
Southeast Asia and Myanmar

3952. Lessons for Generating Government Revenue for New and Prospective Liquefied Natural Gas Producers

Author:
Thomas Lassourd, Amir Shafaie, and Thomas Scurfield
Publication Date:
12-2019
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
The market for liquefied natural gas (LNG) is changing fast, with increasing demand, new sources of supply, and a growing spot market. Over the last decade (2008 to 2018), LNG prices in the three main markets of North America, Western Europe and East Asia have diverged significantly at times, creating arbitrage opportunities for sellers. This briefing presents two case studies of developing countries that have faced challenges in securing public revenue from their natural gas industries. Trinidad and Tobago and Peru offer two examples of developing countries that faced challenges in maximizing government revenue from LNG sales during that time. Although LNG markets are evolving, these examples offer lessons for new and prospective LNG producers, especially in sub-Saharan Africa. A key area (and the focus of this briefing) is the valuation of LNG sales and the corresponding impact on government revenues. Governments should pay close attention to LNG project structure and the long-term LNG sale and purchase agreements between LNG producers and offtakers, especially when they are related companies. Governments should push for these agreements to maximize the price flowing back to the LNG plant and the upstream producer and should favor project structures that facilitate this. In particular, the practice of diverting LNG cargos to more lucrative export markets than the ones initially designated in offtake agreements should be regulated and monitored by governments to balance the financial incentives to LNG sellers with the interests of LNG-exporting countries. This will become increasingly important as the market becomes more liquid and sellers have more options.
Topic:
Government, Gas, Tax Systems, Commodities, and Revenue Management
Political Geography:
South America, Caribbean, Peru, and Trinidad and Tobago

3953. Indonesia’s Oil and Gas Revenues: Using Payments to Governments Data for Accountability

Author:
Alexander Malden and Fikri Zaki Muhammadi
Publication Date:
12-2019
Content Type:
Special Report
Institution:
Natural Resource Governance Institute
Abstract:
Under mandatory disclosure laws in the European Union, Canada and Norway, companies listed or incorporated in these countries must disclose the payments they make to government entities for their extractive activities. Under these laws, seventeen international oil and gas companies have reported over $15 billion in payments to Indonesian government entities since 2014. This report explores some of the ways this timely source of payment data can be used as an accountability tool. Civil society organizations, media outlets, government officials, parties to Indonesia’s Extractive Industries Transparency Initiative (EITI) and oversight actors can use payment data in combination with other data sources to: Verify the size and recipient of oil and gas project signature bonuses Estimate and verify the revenue that local and regional government entities should receive from an oil and gas project that operates in their region Estimate and verify the government’s share of production from a project under the new gross split production-sharing contract (PSC) model
Topic:
Government, Oil, Gas, Accountability, and Data
Political Geography:
Indonesia and Southeast Asia

3954. Stepping on the Gas: Future-Proofing Estonia’s Energy Market and Security

Author:
Andrei V. Belyi
Publication Date:
05-2019
Content Type:
Special Report
Institution:
International Centre for Defence and Security - ICDS
Abstract:
The Baltic region is making a significant progress in developing functioning regional natural gas market, expanding and integrating the related infrastructure, and ensuring the security of supply. However, there are multiple factors—at the national, regional, European and even global levels—that prevent this from becoming an ideal market capable of delivering greater security at a reasonable cost. Liquidity of the market is low due to falling consumption; state aid and state participation in the energy enterprises discourage private investments and distort market conditions, while geopolitical tensions between the West and Russia add further complications. The report considers the trends in the overall natural gas sector—such as greater portion of trade being conducted in gas trading hubs; more reliance on spot pricing rather than long-term contracts; LNG glut in the global markets, introduction of “virtual pipelines” and flexible infrastructure, pressure to reduce CO2 emissions as well as the US entry into the global LNG market as a major player—and analyses their implications to Estonia. It puts forward a number of recommendations on how to create and sustain the conditions necessary for efficient natural gas market in the region as well as for improved energy security of Estonia.
Topic:
Security, Energy Policy, European Union, Economy, and Resilience
Political Geography:
Russia and United States of America

3955. Estonian-French Defence Cooperation – Where Estonian Pragmatism Meets French Vision

Author:
Kalev Stoicescu and Emile LeBrun
Publication Date:
08-2019
Content Type:
Special Report
Institution:
International Centre for Defence and Security - ICDS
Abstract:
ICDS Research Fellow Kalev Stoicescu and Non-Resident Fellow Maxime Lebrun made a thorough analysis of the defence cooperation and partnership between Estonia and France. They concluded that this successful relationship, which evolved in a short time literally starting from mutual neglect, is based both on pragmatism and political vision. It also serves as a very good example of fruitful cooperation between rather different European partners in terms of size, military capabilities, history and culture, geography etc. France contributes to NATO’s enhanced Forward Presence, a vital deterrence measure for the Baltic states and Poland, and Estonia participates actively in French, EU and UN operations in sub-Saharan Africa. In this context, France promotes the European Intervention Initiative (in which Estonia participates) and the concept of European Strategic Autonomy (Estonia, as well as other Allies, are not yet convinced of its aims and utility). The analysis offers a comprehensive overview on the matter for those who are interested in the defence policy of Estonia and France, and the development of the defence dimension of the European Union.
Topic:
Defense Policy and International Cooperation
Political Geography:
Europe, France, and Estonia

3956. Russians in Europe: Nobody’s Tool – The Examples of Finland, Germany and Estonia

Author:
Anna Tiido
Publication Date:
09-2019
Content Type:
Special Report
Institution:
International Centre for Defence and Security - ICDS
Abstract:
This analysis calls for European governments to pay greater attention to the resilience of their societies, starting with the integration of minorities. It is also important to continue work to increase awareness of Russian influence. The paper analyses the issue of Russian speakers in the EU based on the example of Finland, Germany and Estonia. Although the Kremlin’s “Russian World” policy sees all the people connected to Russia as a homogeneous group, the minority groups analysed are quite diverse. The media preferences and habits of Russian-speakers are connected to language, naturally, and these communities are one of the targets of Russia’s actions. At the same time, Russia also targets non-Russian audiences. It promotes propaganda that is tailor-made for specific countries, based on existing conditions. The grievances of Russian-speakers are one such tool, but they constitute one of many available—and not the main one.
Topic:
Security, Foreign Policy, International Affairs, Integration, Social Cohesion, and Resilience
Political Geography:
Russia, Finland, Germany, and Estonia

3957. European Strategic Autonomy: Operationalising a Buzzword

Author:
Pauli Järvenpää
Publication Date:
10-2019
Content Type:
Special Report
Institution:
International Centre for Defence and Security - ICDS
Abstract:
European Strategic Autonomy (ESA) is currently the subject of some debate and controversy. While this issue has been on the table since at least the 1990s, it was reinvigorated by the publication of the EU Global Strategy in 2016, itself a response to fundamental developments in European security. In this report, we consider the security and defence aspects of ESA, an area of particular difficulties and one in which in which Europe is presently weak. Even in this very practical area, the ESA concept is ill-defined and the term itself has become a buzzword. To move towards implementation, we discuss ESA in security and defence as the capacity to act in four dimensions: political, institutional, capabilities and industrial. Political autonomy, concerns questions such as to whom the ‘E’ in ESA refers, who is able to lead the development of ESA, and what is the level of ambition for this endeavour. Institutional autonomy refers to the availability of the governance structures required to prepare and administer these priorities, while capabilities autonomy refers to the availability of the military, civilian, financial, operational, and other capabilities to credibly implement priorities and decisions. Industrial autonomy refers to the availability of the industrial and technological base necessary to develop and deliver the required capabilities. In our report, we discuss how ESA might be attained in each of these dimensions and make policy recommendations.
Topic:
Defense Policy, NATO, European Union, Autonomy, and Strategic Stability
Political Geography:
Europe

3958. The Digital Counter-Revolution: Why the Kremlin Pursues a Sovereign Internet?

Author:
Antonin Plattner
Publication Date:
11-2019
Content Type:
Special Report
Institution:
International Centre for Defence and Security - ICDS
Abstract:
Russia’s attempts to control and regulate the flow of online information and communication within its territory reached a new stage on 1 November 2019 after its so-called “internet sovereignty” law came into force. Designed to increase state control over what Russia’s citizens can access and do online, the law has already sparked numerous protests across Russia. Although it remains to be seen how effective the law is likely to be, it is already clear that it fits perfectly well with the regime’s survival considerations and, more importantly, with the broader geopolitical strategy of the Kremlin towards the West. This paper analyses the reasons behind the failure of Moscow’s successive strategies to enforce the central state’s absolute sovereignty online. These reasons may include: The amount of data online, the web’s decentralised routing technology and the prospective satellite-based internet which together undermine Moscow’s strategies of control through physical infrastructures. The relative reluctance of international platforms to execute the authorities’ requests for censorship which limits the global success of Moscow’s strategy of control through ownership. The determination and inventiveness of the domestic digital resistance which prevents the total success of Moscow’s legal and social coercion strategies. Secondly, this paper proposes an original insight concerning Russia’s cyberstrategy. It argues that the Kremlin’s aspiration for neo-Westphalian “internet sovereignty” ultimately depends on a radical change of the internet governance format. Moscow’s call to replace the current multi-stakeholder model with a multilateral system should be understood as an absolute prerequisite for its control over domestic communications and information. From that perspective, this paper identifies Russia-based campaigns of cyber disruption as Moscow’s attempt to actively demonstrate the merit of “internet sovereignty”, by sowing international distrust in the principle of a free and international internet, as defended by the current multi-stakeholder model of governance.
Topic:
Science and Technology, Authoritarianism, Geopolitics, Internet, Protests, Counterrevolution, and digital culture
Political Geography:
Russia and Eurasia

3959. Russia’s Espionage in Estonia: A Quantitative Analysis of Convictions

Author:
Ivo Juurvee and Lavly Perling
Publication Date:
11-2019
Content Type:
Special Report
Institution:
International Centre for Defence and Security - ICDS
Abstract:
The activities of Russia’s Intelligence Services have recently received a lot of media attention. However, large-scale Russian intelligence blunders in US, UK and other NATO countries have resulted in very few convictions. On the other hand in Estonia, there are already 20 convictions of Russian spies since 2009. This paper, based only on publicly available sources, aims to give an overview of the results of the fight against Russia’s espionage by Estonian law enforcement authorities. It shows that effective countermeasures are possible, if there legislative basis, law enforcement agencies with knowhow and the will to implement them.
Topic:
NATO, Intelligence, Law Enforcement, and Espionage
Political Geography:
Russia, Eurasia, and Estonia

3960. The Talsinki Tunnel: Channelling Chinese Interests into the Baltic Sea

Author:
Frank Jüris
Publication Date:
12-2019
Content Type:
Special Report
Institution:
International Centre for Defence and Security - ICDS
Abstract:
China’s assertive foreign policy is best known for the Belt and Road Initiative (BRI). In Northern Europe, China is interested in developing the Polar Silk Road which, using the Northeast Passage route, could significantly cut down the transit time between Asia and Europe and provide alternative route to the target European market. The Tallinn–Helsinki connection should be seen as part of this route, which helps explain why the Chinese investor TouchStone Capital and state-owned construction companies have shown interest in building an undersea rail tunnel between Helsinki and Tallinn (the “Talsinki tunnel”). This paper analyses Chinese strategic interests through the BRI initiative in general and the Polar Silk Road in particular. With the focus on the motives of the host countries it tries to find out, how well they resonate with Chinese interests in the region. This analysis looks at the preparations made for the implementation of the project and describes the Chinese state actors involved in it. The final, largest section analyses the security risks involved in the implementation of the tunnel project and highlights the potential security risks that need to be taken into consideration by the host countries.
Topic:
Security, Foreign Policy, Infrastructure, Belt and Road Initiative (BRI), and Resilience
Political Geography:
China and Asia