Category Eastern Europe

Twitter exchange on Ukraine

There was a brief exchange on twitter concerning the previous article, which I was not involved in. The initial response to my previous post was: “40,000 professional troops w/combat experience could go through go through 200,000 conscripts like a hot knife through butter.” The discussion continued with more agreement than disagreement. But it does bring up the issue of the relative capability of both armies.

We do not how good and capable each army is. Just a few observations

  1. The Russian Army is a mixed professional and conscript army. They have been using conscripts in the fighting in Ukraine (as the mothers of deceased Russian soldiers continue to remind us).
  2. The Ukrainian Army is a mixed professional and conscript army.
  3. Both armies had the same roots, traditions, training and leadership up through 1991. After the break-up of the Soviet Union, both armies were very similar for several years after that and both were in decline.
  4. After a period of serious decay in the 1990s, the Russian Army began to rebuild itself, including revising its doctrine.
  5. At the same time the Ukrainian Army began to rebuild itself, revising itself to some extent based upon U.S. doctrine. It joined NATO’s partnership-for-peace program in 1994.
  6. The Ukrainian Army suspended its active participation in the NATO partnership-for-peace program after President Yanukovich was elected in February 2010. The army was reduced and conscription ended.
  7. Since Yanukovich has left office in February 2014 (for the second time), the Ukrainian Army has reintroduced conscription and have begun the process of rebuilding themselves.
  8. Both armies have shown gaps in discipline and professionalism at times. For example, both armed forces have managed to each shoot down a civilian airliner.

My gut reaction is that the Russian Army may be more professional at this moment in time, but certainly not to a degree that would allow 40,000 to conquer a country protected by 200,000. A ratio of 1-to-5 for conducting a major invasion is rarely seen in history. It was certainly not the case when the Germans invaded the Soviet Union in 1941.

Two more points:

  1. There is invasion and there is occupation. For example, in 2003 the U.S. invaded Iraq, a country of 24 million, with 75,000 troops. The occupation over the next couple of years did not go well, as an insurgency blossomed in that poor security environment. The population of Ukraine is around 42 million.
  2. The best time to invade a country is at the start of the summer (like Germany did with France in 1940 and the Soviet Union in 1941). Waiting until August does not make a lot of sense. Fall operations have been done (World War I started in August 1914 and Poland was invaded in September 1939), but in general, you want the longest period of good campaign weather.

My conclusion is that there is almost no chance of a full-scale Russian invasion at this stage. They would need a couple of hundred thousand troops to do so. They have not massed those forces yet and almost certainly will not this year.

On the other hand, they do have enough force to do something more limited, like take Mariupol, or cause problems around Kharkiv/Kharkov. Kharkiv is the second largest city in Ukraine (population 1.4 million) and has a large Russian-speaking population. It was the failure of the pro-Yanukovich/pro-Russian forces to obtain a foothold there in 2014 that severely limited the effects of the revolt in eastern Ukraine. I suspect that now doing anything significant against Kharkiv would be difficult.

Mariupol seems to the “prize” that everyone is focusing on. Even then, it is only another city (population: around 460,000). While it is the major port for the Donetsk province, it does not connect the Russians overland to Crimea. There is another 250 of so miles to make a land bridge all the way to Crimea. This is a lot of territory to take and a lot of territory to then have to protect.

My tentative conclusion as this this conflict for now is effectively stalemated, with perhaps only Mariupol in the balance. This does not mean it will remain peaceful, as there is regularly violence there, and this does mean that there will not be significant increases in violence, but other than the threat to Mariupol, I do not see any other major territorial shifts occurring between now and next spring (2017).

There is a lot you can do with 40,000 troops…

There is a lot you can do with 40,000 troops, but conquering Ukraine is not one of them.

This article does not state that, but it does lay out an overly frightful scenario: 40000 Russian Troops are Preparing for War in Crimea

The scenario they lay out towards the end of the article is “…a full-scale Russian military offensive likely would aim to seize key military-industrial area such as tank plant at Kharkiv, the missile factory at Dnepropetrovsk, the shipyard at Mykolyev, and the port of Odessa. Russian forces also could drive into Ukraine from the northeast to the outskirts of Kiev and place the capital within artillery range in a bid to force a change of government.”

As the article notes: “Still, Russia does not appear to have all the forces in place for a major military operation…”

So how big is the Ukrainian Army? Well, according to Wikipedia they had 250,000 active armed forces personnel in March 2016. Their source was a Reuters article: Reuters

According to Wikipedia the ground forces were 204,000 in 2009 (Air Force was 36,300 in 2009 and Navy was 6,500 in August 2015).  In October 2013 President Yanukovich ended conscription (both the Ukrainian and Russian armies rely heavily on conscripts), but it was reinstated in 2014 after Russia intervened in Ukraine. As Wikipedia notes in a dated posting: “Due to the reintroduction of conscription, and partial mobilization, Ukraine’s armed forces is expected to nearly double from approximately 130,000 personnel in December 2014 to approximately 250,000 personnel in 2015.”

Anyhow, not the best and most current data, but safe to say that the Ukrainians probably have 200,000 or more ground troops available. Numbers do matter, and while 40,000 Russian troops are certainly a threat to Ukrainian security and stability, it is not a force that ready to march to the outskirts of Kiev or take Odessa. It would require a very serious mobilization effort on the part of Russia to do that.

The Great Russian Recession

The Russian Recession has dragged on for 18 months now: Russian Recession

A few significant points:

  1. Economy shrunk 3.7% in 2015
  2. Expected to shrinking 1.2% this year.
  3. Expected to start growing again in 2017.
  4. Russian parliamentary elections are next month. Probably not going to be very earthshaking.
  5. Just for comparison, the “Great Recession” in the U.S. lasted 18 months, started in December 2007 and ended in June 2009.
    1. Or is that 12-months, from Q3 2008 to Q2 2009?
    2. In 2008 it was a 0.3% drop in GDP
    3. In 2009 it was a 2.8% drop in GDP.
    4. In 2010 GDP grew 2.5%
    5. Date source: Annual Growth Data

Not much more to say on this, just kind of waiting to see what happens.

Four Battalions

NATO is planning on deploying four battalions of 1,000 troops each to Eastern Europe. This is:

  1. A British led battalion in Estonia
  2. A Canadian led battalion in Latvia
  3. A German led battalion in Lithuania
  4. A U.S. led battalion in Poland.

These are all multinational battalions. So, for example, the Canadian led battalion will have 450 Canadian troops in it. The rest will be from other NATO members (which has 28 members…and does not include Ukraine). Estonia, Latvia, Lithuania and Poland are all NATO members. The three Baltic states were a part of the Soviet Union from 1940-1991. Estonia is “ethnically” still 25% Russian, as is Latvia. Lithuania is 5% Russian and in Poland we were refused service in a restaurant in 1996 because we spoke Russian to them.

I gather they are going to be there for a while.

 

Forbes on Russia’s Oil Reserves

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Below is a Forbes article on Russia’s Oil Reserves

Russia’s Oil Production Won’t Falter

Not sure I am sold on their argument:

  1. Russia’s proven oil reserves have gone from 50 billion barrels in 2000, to 60 billion in 2008 to 80 billion now.
  2. Since 2000 they have pumped 56 billion barrels of oil (that is a staggering figure)!
  3. They are pumping around 11 million barrels a day (4 billion a year)
  4. Internal consumption is 3.5 million barrels a day (1.3 billion a year)

A little back of the envelope calculation says they have 20 years of oil left (based upon proven reserves). Of course, the point of the article is that proven reserves have expanded…but…the point not made is that they cannot expand forever. It is still a finite resource. Dinosaurs are not dying fast enough to replace current usage.

Russia is struggling to cover its bills with oil at $50 a barrel. One wonders how it would do in 20 years if they ran out of oil.

Russia Today tends to be as much of a propaganda organ as it is a news service. The original Russia Today article states: “Russia will run out of oil by 2044, according to the Ministry of Natural Resources and Environment, with production beginning to decline in 2020.”

https://www.rt.com/business/335967-russia-oil-reserves-depletion-2044/

Anyhow, this is not my area of expertise, so would certainly appreciate some feedback as to the long-term problems Russia is facing here. At this point, I am finding myself having more faith in the Russia Today article than the Forbes article (which is really kind of sad).

Tenth Largest Economy II

This article just appeared this morning in the Boston Globe. It starts: “Russia is not the country you think it is. Its economy is smaller than South Korea’s.” That sounds like a familiar stat.

Putin’s Russia is a poor, drunk soccer hooligan

Overly negative, but the data mentioned in the article are correct. It was written by a Canadian (and Canada’s economy is larger than Russia’s):

https://en.wikipedia.org/wiki/Scott_Gilmore

Of course, his father was a professional hockey player.

Tenth Largest Economy?

Just an update on the Russian economy:

  1. Drop in 2015: -3.7%
  2. Estimated drop in 2016: -1.8%
  3. Budget deficit:
    1. 2.6% of GDP in 2015
    2. 3% of GDP in 2016 if oil prices remain at $40 a barrel (now hovering around $50).
  4. Ruble to dollars exchange rate: 64-to-1 (used to be less than 30-to-1)
  5. Elections for Duma this year (no surprises are expected)

A few interesting articles

  1. Nice summary: Why Russia’s economy may be on hold before elections
  2. A more positive article: Russia is coming back strong from the oil collapse
  3. An article addressing the behind the scenes dynamics on economic policy: Rival Kremlin camps prepare for battle over economy
  4. Article on budget from Forbes: Russia needs a budget miracle

The claim in the first article that Russia is the world’s tenth largest economy is probably no longer correct. In 2014, according to World Bank and the United Nations, it was the tenth largest economy with a GDP of 1,860,598 or 1,849,940 million U.S. dollars (two different sets of figures). This put it behind India and ahead of Canada ($1,785,387 in both sets of figures). In 2015 the IMF figures put the Russian economy at $1,324,734, which put it twelfth on the list, behind Canada (1,552,386) and South Korea (1,376,868). Hard to say if these figures factored in all the drama of 2015 (ruble dropping by more than half and the economy shrinking by 3.7%). Pretty certain Russia is no longer among the ten largest economies in 2016. Just for comparison, according to the IMF the United States economy was $17,947,000 in 2015.

The Meaning of Military Expenditures II

In response to my last blog post I basically threw out a menu of possible conclusions. I received a very nicely thought out response to that post from Mike Johnson, which I felt was deserving its own blog post. His response is below (with his permission, of course):

With regard to the 20 April 2016 blog entry about military expenditures, I appreciated the list of possible conclusions and thought I would throw discussion points.

The comparison between US and other country defense spending is interesting, including the often mentioned statement that the US spends as much on defense as the next 10 countries combined.  I remember, from when I was in OPNAV N80 a couple of decades ago, that our NATO allies had twice as many active duty personnel and twice as many reservists as all the US Services combined. Yet, their combined defense budgets were less than what we were spending on our people in our military personnel and reserve personnel appropriations. Of course, back then Germany and France and many others still had conscription and less is usually spent on conscripts. But, it still leads to some serious questions about how to compare defense budgets when our allies could have twice the personnel and their total budgets were less than what we spent just on our personnel.  Several factors come into play. First, we have retirees being paid starting around age 40 or even earlier.  I don’t know of any other country that pays retirees before the mid-50s if not the 60s. Second, the retirement and a lot of the heath care are paid by other departments in most other governments, but in the US DoD pays into these programs.  Base pay for British military, by comparable grade, is actually more than in the US military; but we then add BAH and BAS on top (tax free); in the UK, the MOD subsidizes housing, but the serviceman has to pay a part. It isn’t clear whether the UK or the US serviceman of comparable grade has more “take home pay” so I don’t think the difference is that we pay our servicemen significantly more than other countries.

When it comes to Russia and China, in particular, conversions using market rates understate what is spent for most of the defense spending.  I had a colleague over the years–an expert on the Soviets–who would argue that Russian Federation soldiers had to be underfed, and suffering from malnutrition, because of the amount they were paid and given for meals.  I pointed out that meals certainly should use PPP and not market rates to convert and at the time the ratio between the two was about 7 (PPP converted into about 7 times as many US dollars compared with what market rates; it is less dramatic today but still to be of consideration). Anything internal to the Russian or Chinese economies should, in my opinion, use PPP for the exchange (which compares the cost of comparable items in each system).  This is particularly true of personnel pay, messing, accommodations, and most of logistics.  I am not sure about weapon systems. These are paid for internally, but they do have a connection to the outside world.

The way we count is different.  For example, funding is appropriated to the Services and to agencies in OSD as a top line that can be obligated.  How that is paid for may come from many sources including revenue collected by the Service.  In European budgets, we routinely see factors like total resource and then they subtract from that number expected receipts amounting to several percent of the budget.  In other words, they spend more because they can spend their revenues (such as payments made by service members for their housing) for whatever they want, but they are deducted from the top line used for comparison.

The US military does spend a lot more than any other country, despite the above factors.  Part of that is what it takes to maintain 6 regional combatant commands. Part of it is maintaining a constant level of forces around the world.  A war with most of our enemies is much more likely to be in their front yard and not ours.  We spend a lot on R&D and a lot on keeping equipment modern. And we spend a lot on training personnel.

PPP is purchasing power parity, which is a comparison between the currencies of two countries at which each currency when exchanged for the other will purchase the same quantity of goods as it purchases at home. So, for example, when the ruble dropped from 30 to 60 to a dollar, the Soviet defense budget suddenly did not really drop in half. So a direct comparison of exchange rates between countries often de-values the defense expenditures of less developed countries, where good and services are relatively cheap. Comparing countries based upon PPP tries to adjust for that.

The Meaning of Military Expenditures

My last post was a data dump without a conclusion. I probably need to add one, although I usually avoid providing opinions. There is no shortage of opinions in the American blogosphere and political landscape. I think a little less opinion and a little more data has value. If you want opinions, there are plenty of services out there who specialize in that, and from any perspective and viewpoint that you like.

From the previous Military Expenditures posting one could draw a number of conclusions:

  1. That the American allies in NATO and Asia are not carrying their weight…or…
  2. The threat from Russia and China is grossly overstated
    1. Russia’s defense expenditures are $51.6 billion while NATO (not including the U.S.) is around $300 billion.
    2. China’s defense expenditures are $145.8 billion (or is it $215 billion) while Japan, South Korea and Taiwan’s combined are $85 billion.
    3. The U.S. is spending $597.5 billion.
    4. …or….
  3. The U.S. is spending too much on defense.
    1. Beware of the “military-industrial complex?”
    2. …or….
  4. This is the cost of being the world leader (3.3% of GDP on defense)….or…
  5. The higher U.S. defense expenditures are certainly justified because:
    1. We are covering against Russia ($51.6 billion)
    2. We are covering against China ($145.8 billion)
    3. Then there is ISIL….and….
    4. Iraq, Afghanistan and Somalia
    5. We have other missions, like nuclear deterrence, that adds to our cost.
    6. We need to continue to develop and maintain our technological edge, and that costs money.
    7. …or….
  6. The U.S. is spending too much on the wrong things…or….
  7. Maybe defense budget is not really a good measurement of military power….or…
  8. Maybe Russia and China are getting more “bang for the buck” then the U.S. and its western allies….or…
  9. Whatever else I forgot to mention….or….
  10. Some or all of the above.

Anyhow, one could interpret the figures in my previous post a number of different ways depending on their own political leanings and biases.

And…..I still didn’t really add a conclusion.