‘Incorrect’ US account of Khan-Pompeo talks upsets Pakistan
Press TV – August 24, 2018
Pakistan has called on the US to immediately correct a newly released statement about a phone conversation between US Secretary of State Mike Pompeo and new Pakistani Prime Minister Imran Khan.
US State Department said in a statement on Thursday that Pompeo has called on Khan to take “decisive action” against “terrorists” during a phone call he made to wish him success after he was sworn into office.
Pompeo “raised the importance of Pakistan taking decisive action against all terrorists operating in Pakistan and its vital role in promoting the Afghan peace process,” said State Department spokeswoman Heather Nauert.
Pakistan’s Foreign Office, however, rejected the statement, saying there was no such mention of “terrorists operating in Pakistan,” during the conversation.
“Pakistan takes exception to the factually incorrect statement issued by US State Department on the phone call between Prime Minister Khan and Secretary Pompeo,” said foreign office spokesman Mohammad Faisal, calling on the states department to “immediately correct” the statement.
Nauert indicated there would be no correction in response to Pakistan’s complaint. “I can only say we stand by our readout,” Nauert told a news conference.
Washington has for years accused Islamabad of allowing militants and terrorist groups to operate relatively freely in Pakistan’s porous border regions to carry out operations in neighboring Afghanistan, an allegation Pakistan denies.
US President Donald Trump said in his first tweet of 2018 that Washington had “foolishly given Pakistan more than $33 billion in aid over the last 15 years.” He threatened to cut off foreign aid to Pakistan, once again accusing Islamabad of harboring violent extremists.
Pakistani officials have frequently said the US government is making Pakistan a scapegoat to cover Washington’s failure in Afghanistan.
Afghanistan has been gripped by insecurity since the United States and its allies invaded the country to topple Taliban as part of Washington’s so-called war on terror in 2001. Many parts of the country remain plagued by militancy despite the presence of foreign troops.
Saudis want Imran Khan to back ‘anti-terror alliance’
By Kunwar Khuldune Shahid | Asia Times | August 24, 2018
Riyadh wants Imran Khan to openly support the Saudi-led Islamic Military Counter-Terrorism Coalition, after formally taking over as Prime Minister of Pakistan last week. Well-placed diplomatic sources say the Saudi rulers conveyed their desire in recent communications with the new Pakistani leadership.
The latest among these came on Tuesday, when Saudi Crown Prince Mohammad bin Salman met Pakistan Chief of Army Staff General Qamar Javed Bajwa in Mina. The Inter-Services Public Relations chief Maj Gen Asif Ghafoor tweeted that Crown Prince Salman helped General Bajwa to perform the Hajj ritual, and expressed support for the new government in Islamabad.
Senior military officials confirmed that Pakistan’s cooperation with Saudi Arabia on multiple fronts was discussed, including the security of the kingdom. Among these was the Islamic Military Counter-Terrorism Coalition (IMCTC), headed by former Pakistan Army Chief General Raheel Sharif, as Riyadh would like the new Pakistani government to be more involved.
“The Saudi leadership wants Prime Minister Imran Khan to publicly back the coalition because they see the benefit of someone with his global reputation to provide more credence to the alliance, which has been accused of having a sectarian tinge,” a senior diplomat told Asia Times. “The Saudis want to maintain that the absence of Iran and Iraq from the Islamic military coalition is because of political differences rather than religious or ideological [factors], and they believe Pakistan’s vocal support would help in this regard, especially given recent diplomatic developments.”
Anti-terror alliance or anti-Iran?
Saudi Arabia announced the anti-terror alliance in December 2015, when it described the Islamic State as a disease tarnishing the Muslim faith. However, critics have said the alliance, which has about 40 members, appears to be aimed at Iran as much as terrorists.
Earlier this month, Saudi Arabia expelled the Canadian ambassador after the Government of Canada called for the release of human rights activists. That was followed by an immediate message of support by the government of Pakistan, which said it stood with Saudi Arabia over its row with Canada. The caretaker government issued that statement, but Riyadh is hoping for similar vocal support from the Imran Khan-led administration sworn in last week.
Prince Muhammad Bin Salman called Khan last week to congratulate him on winning the election, and invited him to Saudi Arabia, an offer which the Pakistani premier accepted. The trip is likely to take place early next month. Bilateral ties between Riyadh and Islamabad will be discussed in detail, along with Pakistan’s role in the IMCTC.
Khan has previously opposed Pakistan getting involved in the Saudi war on Yemen, which is aided by the kingdom’s ties with the Pakistani military. “After the meeting in September [Khan] will say that Pakistan is very supportive of Saudi Arabia and is willing to do everything to safeguard the holy places from any attacks, which is usually interpreted as an intent of maintaining neutrality, but is accepted by the Saudis as Pakistan being willing to provide all kinds of military cooperation,” a retired military officer said to Asia Times. “However, it’s Pakistan’s support for the military coalition that will determine how many billion dollars the Saudis give us,” he said.
Pakistan is eying a $4-billion loan from the Saudi-backed Islamic Development Bank to address its balance of payments crisis. Riyadh could provide further economic favors as well, depending on how much Islamabad toes the Saudi line, as was the case for Khan’s predecessors.
Sharif prioritized ties with Saudi royals
Nawaz Sharif felt indebted to the Saudi leaders due to their support for the former premier in exile when he was ousted in a coup by former Army Chief General Pervez Musharraf, and critics have long noted how Sharif prioritized Islamabad’s relations with Riyadh over others, which helped alienate Pakistan’s neighbors in Iran.
Sharif’s pro-Saudi stance and his party’s alliances with sectarian groups in Punjab meant that Khan’s PTI had wide backing from the country’s Shia population, which forms around a fifth of Pakistan’s Muslim population. “Unlike Nawaz Sharif, Imran Khan is much better placed to balance relations between Iran and Saudi Arabia, which has been a long-held – but perpetually unfulfilled – goal of Pakistani foreign policy,” says Shameem Akhtar, a veteran foreign policy analyst, columnist and former dean of International Relations at Karachi University.
“Imran Khan doesn’t feel personally obliged towards the Saudis, who have long bought Pakistan and considered it their satellite state. If there’s anything that could push his hand it’s the economic support provided by Riyadh, given Pakistan’s fiscal needs.”
The first indication of the new government’s position on the IMCTC will come if it provides a No Objection Certificate for General Raheel Sharif to continue to command the coalition, after the Supreme Court noted earlier this month that the previous federal cabinet had not done so.
In court proceedings, Defense Secretary Lieutenant General Zamirul Hassan (Retired) said the defense ministry had granted a No Objection notice to Gen Sharif, but the Chief Justice of Pakistan underscored that the law required approval from the cabinet.
Lieutenant General Talat Masood, a former secretary of Pakistan’s Ministry of Defense Production, said he expects a No Objection Certificate to be granted to Gen Sharif. He also confirmed that a lot of Pakistan’s current support to the IMCTC is tacit, but “getting vocal” would be problematic for the new PM.
“The Saudi demand for open backing of the Islamic military coalition puts Imran Khan in a difficult position. I don’t think he would like to openly back the coalition, even though we support it in many ways, but not quite as openly,” Masood told Asia Times.
However, the Lieutenant General maintained that Khan would not have much of a say in the matter given the military leadership’s control over foreign policy. “I don’t think there will be much difference between the policy that Nawaz Sharif was pursuing vis-a-vis Saudi Arabia to what Imran Khan will pursue. Because it all depends on what the military feels and the policy that it decides,” he said.
Hidden internal directive on Syria that got no UNSC approval DOES exist – Russian Foreign Ministry
RT | August 24, 2018
The UN has devised internal guidelines for limiting cooperation with Syria until a “political transition” takes place there, and it was drafted without any consent from the Security Council, the Russian Foreign Ministry has said.
The document in question is entitled ‘Parameters and Principles of UN Assistance in Syria,’ the ministry wrote in a statement to RT. It was issued by the UN Secretariat in October 2017 and provides guidelines for the UN agencies and programs in their work with the war-torn country.
The Secretariat issued the paper without requesting consent or even consulting the UN Security Council or the UN member states, at least on an official level, the ministry noted, adding that the “guidelines” document still “penetrates deeply” into the political situation in the Syrian Arab Republic, thus “going beyond the issue of simple coordination between the UN structures.”
One particular provision of the document explicitly states that the UN “would be ready to facilitate reconstruction” in Syria only “once there is a genuine and inclusive political transition negotiated by the parties.” The Russian ministry described it as an apparent attempt to prevent the international organization from contributing to Syria’s recovery under the current circumstances, while enforcing a “politicized approach of the countries advocating a regime change.”
The directive also implicitly restricts the UN agencies’ cooperation with Damascus, the ministry said, adding that the text of the document says that “UN assistance must not assist parties who have allegedly committed war crimes or crimes against humanity.” The US and its allies in the West have repeatedly accused the Syrian government of various violations of international law and particularly blamed them for chemical weapons incidents that took place on Syrian soil. No hard evidence has ever been presented to substantiate those claims, while the West ignored relevant data provided by the Russian military operating in Syria.
“If some influential [UN] donors believe that … it is time to toughen the sanctions regime against Syria, it does not necessarily mean that the UN agencies should be guided by the same irresponsible approach,” the Russian Foreign Ministry said in its statement, expressing its hope that the UN Secretariat will review its methods as Syria’s need for humanitarian assistance and reconstruction aid grows, not least due to an increasing number of refugees returning home.
The issue of an alleged “secret directive” having been distributed by the Secretariat throughout the UN system in October 2017 was first raised by Russian Foreign Minister Sergey Lavrov on Monday. He did not name the document but said that it “prohibited the agencies… from participating in any kind of projects aimed at restoring the Syrian economy” until a “political transition” there.
Lavrov also linked the release of the directive with the “absolutely deconstructive” stance of the US on the issue of Syria’s reconstruction. The next day, the office of the spokesperson for the UN secretary-general denied the existence of any such document by saying that neither its department of political affairs nor any other UN entity had issued a “secret directive” on Syria.
Meanwhile, the ‘not secret’ but rather hard-to-find document mentioned by the Russian Foreign Ministry apparently indeed exists: It was briefly mentioned on an official UN website in a temporary job description. However, the text of the document has never been officially made public by any UN agency.
However, a supposed copy of the text of the directive, entitled ‘Parameters and Principles of UN Assistance in Syria’ and dated October 2017, was included as an annex in another paper published by the Global Protection Cluster – a structure directly linked to such UN agencies as the UN Refugee Agency (UNHCR), the UN Population Fund (UNFPA) and the UN Children’s Fund (UNICEF). This document is still available online.
After declaring its commitment to the UN Charter and the Security Council resolutions, the document indeed states that any UN aid to the reconstruction efforts would be possible only following “political transition.” It also states the UN work should de-facto focus on basic humanitarian assistance only, while any “development and reconstruction activities that are outside this will need to be reflected in other frameworks that are by nature a longer negotiation with governments.”
The paper also openly states that the UN “will not promote the return of refugees.” Apart from prohibiting cooperation with “parties who have allegedly committed war crimes or crimes against humanity,” the guidelines also state that assistance must be “prioritized based on the needs of the population (rather than government-driven),” in what might be potentially considered an indirect attempt to limit the UN agencies’ cooperation with the Syrian government.
Read more:
Senate wants to know about Cohen’s ‘Trump evidence’ as his lawyer denies ‘mixed up’ Russia claims
RT | August 24, 2018
Senate Judiciary Chairman Chuck Grassley (R-Iowa) said his committee is interested in Michael Cohen’s alleged evidence on President Trump. However, recent comments by Cohen’s lawyer have cast doubt over such ‘evidence.’
Michael Cohen, Trump’s one-time ‘fixer’ and attorney was convicted on eight counts of campaign finance violations, tax fraud, and bank fraud in a plea deal with prosecutors reached earlier this week. One of these claims involves ‘hush money’ paid to porn star Stormy Daniels, who Trump allegedly had an affair with in 2006.
Cohen, who once said that he would take a bullet for Trump, has now flipped and claims that Trump directed him to “commit a crime” by ordering the payment. Trump denies ordering Cohen to break the law and says that the money came from his own fortune, not the campaign account. Trump accused Cohen of “making up stories” to get a better plea deal.
Regardless, Senator Grassley is interested in following Cohen’s claim up and has reached out to Cohen’s attorney, Lanny Davis. “We have reached out to Lanny Davis but we have not heard back,” the Iowa senator told Bloomberg.
Grassley’s committee had been trying to reach Cohen since May, which was canceled due to Cohen’s ongoing criminal proceedings. Senator Lindsey Graham – (R-South Carolina), another Judiciary Committee member – is still reluctant to investigate Cohen’s claims, as Cohen has yet to be sentenced.
“I’ve been very consistent about this, I don’t want to cross paths with ongoing criminal investigations,” Graham said.
Cohen also revealed through Davis on Wednesday that he has information that might be of interest to Special Counsel Robert Mueller, charged with investigating alleged collusion between the Trump campaign and Russia in the runup to the 2016 election.
However, a series of television appearances by Davis on Wednesday have raised doubts as to the reliability of any evidence Cohen might have. Speaking to CNN, Davis directly denied Cohen’s earlier claims to the network that Trump had advance notice of a meeting between his son, Donald Jr., and a Russian lawyer at Trump Tower in 2016.
“So Michael Cohen does not have information that President Trump knew about the Trump Tower meeting with the Russians beforehand or even after?” host Anderson Cooper asked Davis.
“No, he does not,” Davis replied, adding that the earlier CNN report had gotten “mixed up.”
When the CNN story broke late June, Trump rubbished it, and like this week, accused Cohen of “trying to make up stories,” again to get out of his own legal troubles, a tax evasion case involving a former business partner in the New York taxi business.
After denying Cohen’s Trump Tower ‘bombshell’, Davis threw water on another smoking gun touted by some Democrats as evidence of collusion: the Steele Dossier. Compiled by opposition research firm Fusion GPS at the behest of the Democratic National Committee, the dossier was a poorly sourced and unverified collection of allegations against Trump and his campaign team.
Among other things, the Dossier claimed that Trump hired two prostitutes to urinate on him in a Moscow hotel room, when then-businessman Trump visited the Russian capital in 2013. Davis told Bloomberg that in this dubious dossier, at least 13 allegations against Cohen alone were false, including one claim that Cohen traveled to Prague in 2016 to meet with Russians and facilitate a “clandestine” conspiracy between Trump and Russia.
“Thirteen references to Mr. Cohen are false in the dossier, but he has never been to Prague in his life,” Davis told Bloomberg.
One thing that Davis was equally certain about is that Cohen needs money. After teasing the possibility that Cohen might have some juicy details for Mueller, Davis asked viewers to reach into their pockets and help the disgraced fixer “continue to tell the truth” about Trump by contributing to a crowdfunding campaign. Of course, this money would also go towards helping Cohen “pay his legal fees.”
Read more:
Be Careful What You Ask For: Wasting Time with Manafort, Cohen, and Russiagate
By Jim Kavanagh | The Polemicist | August 23, 2018
So, Paul Manafort, described by the New York Times as “a longtime lobbyist and political consultant who worked for multiple Republican candidates and presidents,” was convicted of bank fraud, tax fraud and failure to report a foreign bank account. And Michael Cohen, Donald Trump’s former personal lawyer, pled guilty to tax evasion, bank fraud (making false statements to obtain loans), and breaking campaign finance laws by paying off two women who claimed to have had sexual affairs with Trump. Because Cohen says those payoffs were made at Trump’s direction, that is the one charge that directly implicates Trump.
On the basis of the these results, the NYT editorial board insists: “Only a complete fantasist … could continue to claim that this investigation of foreign subversion of an American election, which has already yielded dozens of other indictments and several guilty pleas, is a ‘hoax’ or ‘scam’ or ‘rigged witch hunt.’” Democrats concur, saying the results “put the lie to Mr. Trump’s argument that Mr. Mueller was engaged in a political investigation.”
But these crimes are tax fraud, money laundering, and credit app padding that have nothing to do with Donald Trump, and campaign-finance violations related to what a critic of Trump aptly describes as “a classic B-team type of bumbling screw-up of covering up mistresses.” I question the level of word play, if not fantasizing, necessary to claim that these crimes validate “this investigation of foreign subversion.” None of them has anything to do with that. The perils of this, that, these, and those.
Do these results disprove that the Mueller probe is “a political investigation”? I think they imply quite the opposite, and quite obviously so.
Why? Because these convictions would not have occurred if Hillary Clinton had been elected president. There would be no convictions because there would have been no investigation.
If Hillary had been elected, all the crimes of Manafort and Cohen—certainly those that took place over many years before the election, but even, I think, those having to do with campaign contributions and mistress cover-ups—would never have been investigated, because all would have been considered right with the political world.
The Manafort and Cohen crimes would have been ignored as the standard tactics of the elite financial grifting—as well as of parasitism on, and payoffs by, political campaigns—that they are. Indeed, there would have been no emergency, save-our-democracy-from-Russian-collaboration, Special Counsel investigation, from which these irrelevant charges were spun off, at all.
The kinds of antics Manafort and Cohen have been prosecuted for went unnoticed when Donald Trump was a donor to the Democratic and Republican parties, and if he had stayed in his Tower doling out campaign contributions, they still would be. It’s only because he foolishly won the Presidency against the wishes of the dominant sectors of the ruling class that those antics became the target of prosecutorial investigation. Lesson to Donald: Be careful what you wish for.
If Trump weren’t such an idiot, he probably would have realized that this is what happens when you run for president without prior authorization from the ruling classes, and win. #ManafortTrial #MichaelCohen #Trump pic.twitter.com/tyrpuLHRNT
— Consent Factory (@consent_factory) August 21, 2018
What the NYT calls “a culture of graft as well as corruption” that “suffused” the Trump campaign is part and parcel of a culture of politico-capitalist corruption that suffuses American electoral politics in general. Manafort, who has indeed been “a longtime lobbyist and political consultant,” is only one in a long, bipartisan line that “enrich [themselves] by working for some of the world’s most notorious thugs and autocrats.”
Have you heard of the Podestas? The Clinton Foundation? Besides, the economic purpose of American electoral politics is to funnel millions to consultants and the media. Campaign finance law violations? We’ll see how the lawsuit over $84 million worth of funds allegedly transferred illegally from state party contributions to the Clinton campaign works out. Does the media report, does anybody know or care, about it? Will anybody ever go to prison over it?
The Republicans and Democrats would just as soon leave this entire culture of graft and corruption undisturbed by the prosecutorial apparatus of the state. That kind of thing can get out of hand. Only because the election of Donald Trump was a mistake from the establishment point of view has that apparatus been sicced on him. The frantic search, anywhere and everywhere, for some legal charges that can stick to Trump is driven by a burning desire to get something on Donald Trump that will fatally wound him politically, and serve as “objective” grounds for impeachment or resignation.
So, it’s my contention that, without the political opposition to Donald Trump as president, none of this legal prosecution would be taking place. The convictions of Manafort and Cohen don’t put a lie to the idea that the Mueller investigation is political; they are an effect of the fact that it is.
At any rate, there can be no doubt that the Manafort and Cohen convictions have upped the political ante for everybody. Democratic Senator Richard Blumenthal (second wealthiest Senator; net worth ~ $80 million) has now invoked the dreaded word, from which it’s hard to retreat: “We’re in a Watergate moment.”
Yup, the anti-Trump establishment, led by the Democrats, has now succeeded, via a legal ground game, in moving the ball into the political red zone where impeachment talk is unavoidable. But going forward from here, the plays and paths available are very dangerous to the establishment and the Democrats themselves, and the whole game is getting to the point where it can—indeed, almost inevitably will—seriously disrupt the system they want to protect.
First of all, the Democrats will now face increasing demands for impeachment from the impassioned members of their base whom they have riled up to see Trump as the epitome of the Putin-Nazi evil that threatens “our democracy.” If the Democrats insist these convictions are not just matters of financial hijinx, irrelevant to Mueller’s “Russia collusion” investigation, and irrelevant in fact to anything of political substance; if they assert that the payoffs to Stormy and Karen (the only acts directly involving Trump) disqualify Trump for the presidency, then they will have no excuse but to call for Trump’s impeachment, and act to make it happen. Their base will demand that Democratic candidates run on that promise, and if the Democrats re-take the House, that they begin impeachment proceedings immediately.
So, if, after all the “only a complete fantasist” talk, the Democrats don’t act to impeach Trump, they will further alienate their base, and drive more liberals and progressives to withhold their votes, if not abandon the party altogether. And evil Putin-Nazi Trump will be strengthened.
If they try to impeach and fail (which is likely), well, then, as happened to the Republicans with Clinton, they will just look stupid, and will be punished for having wasted the nation’s political time and energy foolishly. And Trump will be strengthened.
If they were to impeach, convict, and remove Trump (even by forcing a resignation), a large swath of the population would conclude, correctly, that a ginned-up litigation had been used to overturn the result of the 2016 election, that the Democrats had gotten away with what the Republicans couldn’t in 1998-9. That swath of the population would likely withdraw completely from electoral politics, leaving all their problems and resentments intact—hidden for a while, but sure to erupt in some other ways. It would deeply undermine any notion that the political system holds the confidence of the people, and intensify division, disruption, and the sense of incipient civil war in the country more than any number of Russian Facebook posts.
Furthermore, if the Democrats were successful in removing Trump, their own base would be confronted with the terrible beauty of the Pence presidency to which they had given birth. After such a fight, Pence, who is a much more serious, organized, and ideologically-coherent religious proto-fascist than Trump, will benefit from the inevitable propensity of Democrats to calm things down and protect the stability of the system. Progressive Democrats will find, again, that the two-party system has produced no good result. In other words, the result of a successful impeachment effort might very well be more disaffection from “our democracy” by Democrats.
In short, through a process of litigation and prosecution, the Democrats are getting what they asked for: The field of political discourse and action will now increasingly center on the possibility of removing or impeaching the president. Given their construction of the Manafort-Cohen verdicts, they must move forward on that, or they will be perceived as weak and back-pedaling, and Trump will be strengthened. But if they do move forward, that will initiate a political battle that will tear the country apart and end up either with their defeat or the victory of Mike Pence.
Of course, the Democratic leadership knows all this. Which is why they have always said they do not want to push for impeachment or removal, and probably will not. They also know—and they know that Trump’s supporters know—that a campaign-law violation has no more political substance than Bill Clinton’s perjury. They know that they are not likely to win that fight in the Senate. They know the can of worms they are opening with charges that could be levied against most rich politicians. And, most importantly, they know the fight they will have to wage will be intensely divisive and will deeply undermine confidence in the political system, however it ends up.
The Democrats much prefer to have Trump in office to kick around politically. The most likely scenario is that they will make a cloakroom agreement with Republicans not to go too far, while they continue to whip up Trump-Putin “Russiagate” fever among their constituency. They will continue to stoke anticipation of a smoking “collusion” gun from Mueller, which will probably never come. The Democrats are not really after impeaching Trump; they are after stringing along their progressive voters.
In the meantime, the delightful Trump-effect—his constant embarrassment of American political self-righteousness and discomfiting of both political parties—will continue apace.
By the way, for those who think that Manafort’s conviction portends a smoking gun, based on his work for “pro-Kremlin Viktor Yanukovych,” as the NYT and other liberals persistently call him, I would suggest looking at this Twitter thread by Aaron Maté. It’s a brilliant shredding of Rachel Maddow’s (and, to a lesser extent, Chris Hayes’s) version of the deceptive implication—presented as an indisputable fact—that Manafort’s work for Yanukovych is proof that he (and by extension, Trump) was working for Putin. As Maté shows, that is actually indisputably false. Manafort was working hard to turn Yanukovych away from Russia to the EU and the West, and the evidence of that is abundant and easily available. It was given in the trial, though you’d never know that from reading the NYT or listening to MSNBC. As a former Ukraine Foreign Ministry spokesman said: “If it weren’t for Paul, Ukraine would have gone under Russia much earlier. He was the one dragging Yanukovich to the West.” And the Democrats know this.
And if you think Cohen is harboring secret knowledge of Trump-Russia collusion that he’s going to turn over to Mueller, take look at Maté’s thread on that.
We are now entering a new period of intense political maneuvering that’s the latest turning point in the bizarre and flimsy “Russiagate” narrative. I’ve been asked to comment on that a number of times over the past two years, and each time I or one of my fellow commentators would say, “Why are we still talking about this?” It was originally conjured up as a Clinton campaign attack on Trump, but, to my and many others’ surprise and chagrin, it somehow morphed into the central theme of political opposition to Trump’s presidency.
Donald Trump is a horrid political specimen. I witnessed his flourishing into apex narcissism and corruption over decades in New York City, as chronicled by the dogged reporter, Wayne Barrett, and I would be surprised if there weren’t financial crimes in his closet that any competent prosecutor could ferret out. Anyone who knows his history knows that this is the kind of dirt the Mueller investigation was most likely to find on Donald Trump; anyone who’s honest knows that this is the kind of dirt it was meant to find. Russiagate was a pretext to dig around everywhere in his closet. Trump was clueless about the trap he was setting for himself, and has been relentlessly foolish in dealing with it. It is a witch hunt, and he’s riding around on his broom, skywriting self-incriminating tweets.
There are a thousand reasons to criticize Donald Trump—his racism, his stupidity, his infantile narcissism, his full embrace of Zionist colonialism with its demand to attack Iran, his enactment of Republican social and economic policies that are destroying working-class lives, etc. That he is a Kremlin agent is not one of them. His election was a symptom of deep pathologies of American political culture that we must address, including the failure of the “liberal” party and of the two-party system itself. That Donald Trump is a Russian agent is not one of them. There are a number of very good justifications for seeking his impeachment, starting with the clear constitutional crime of launching a military attack on another country without congressional authorization. That he is a Kremlin agent is not one of them.
Unfortunately, the Democratic Party and its allied media do not want to center the fight on these substantive political issues. Instead, they are centering on this barrage of Russiagate litigation—none of which yet proves, or even charges, Russian “collusion”—which they are using as a substitute for politics. And, in place of opposition, they’re substituting uncritical loyalty to the heroes of the military-intelligence complex and “our democracy” that only a complete fantasist could stomach. I mean, when you get to the point that you’re suspecting John Bolton’s “ties to Russia”….
Now, with the Manafort and Cohen convictions, the Russiagate discourse is moving to a new stage, and it’s unlikely that we will ever stop talking about it, as long as Trump is president. Nothing good can come of it.
Our country is in, and on the verge of, multiple crises that threaten to destroy it. That Donald Trump is a Russian agent is not one of them. Political time is precious.
What a waste.
UNRWA head: ‘One cannot simply wish away 5m people’
MEMO | August 23, 2018
The head of the UN agency for Palestinian refugees has spoken out against efforts underway to see the organisation dismantled, stating: “One cannot simply wish away five million people”.
Pierre Krahenbuhl, Commissioner General for the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA), made the remarks in an interview with Foreign Policy.
Krahenbuhl also spoke to the impact US funding cuts have already had on URNWA’s operations, noting that in the Gaza Strip, the agency “had to announce cuts to some of our emergency services like community mental health, job creation” and “there was even a risk for our food distribution”.
According to the Swiss diplomat, the protests in response to job cuts led to UNRWA losing control of its compound in Gaza for “about 20 days”.
Asked by Foreign Policy about the claim made by Israel and the Trump administration that “Palestinians are the only people in the world who are allowed to pass their refugee status down through generations,” Krahenbuhl said this was “clearly a misrepresentation”.
“UNRWA, in ways that are no different from the UNHCR [United Nations High Commissioner for Refugees], considers children and descendants of refugees as refugees,” he said, before citing Afghanistan, Angola, Burma, Burundi and Sudan as cases of protracted refugee situations where “the children and grandchildren of the original refugee[s]” are also considered refugees.
“It rests on the notion that family unity, the principle of family unity, is keeping families united and together as one of the key parameters of managing refugee crises,” he added.
Pressed as to what life would be like for refugees were UNRWA to be dismantled – a key demand of many Israeli and US politicians – Krahenbuhl replied:
“If UNRWA didn’t exist tomorrow, and even if UNHCR didn’t exist, the world would still have to tackle the reality of protracted, long-term refugee situations that are impacting the well-being of people, but also the security and stability of states in many parts of the world. One cannot simply wish away five million people”.
Read also:
The plan to end UNRWA will not take away Palestinians’ right of return
UK Labour self-destructs under ‘anti-Semitism’ onslaught

Einstein’s famous quote, which most have never heard of. Now you know why.
By Stuart Littlewood | Veterans Today | August 22, 2018
The ‘anti-Semitism’ rumpus engulfing Jeremy Corbyn and tearing the Labour Party apart comes at the very moment when the country needs an alert and dynamic Opposition to May’s shambolic administration. The campaign, so obviously orchestrated by powerful pro-Israel interest groups to bring down Corbyn, threatens to derail all prospect of worthwhile change at the next election, which could be called anytime given the chaos over Brexit. This would be a calamity not just for Labour but the whole country.
The distraction is such a blot on the political landscape and so disruptive that Corbyn must neutralise it without giving ground. The question is how.
Clarity please – who are the Semites?
What is the argument about? It’s the S-word, ‘Semitism’. At least, that’s the cover-story. The real issue, as many realise, is something deeper. But let’s stick with ‘anti-Semitism’, which is the weapon. It is stupid to go to war without asking questions. So who exactly are the Semites? They may not be who they seem, or who we’re told they are. So let us first deal with the cover story, anti-Semitism, by setting up a learned panel to review the research by Shlomo Sand, Arthur Koestler, Johns Hopkins University and others, turn the S-word inside out, shake it all about, and establish (if that’s possible) who is, and who is not Semitic enough to be offended by certain remarks.
For example, DNA research by Johns Hopkins University School of Medicine and published by the Oxford University Press in 2012 on behalf of the Society of Molecular Biology and Evolution, found that the Khazarian Hypothesis is scientifically correct, meaning that most Jews are Khazars.
The Khazarians were never in ancient Israel. They converted to Talmudic Judaism in the 8th Century. Even if you believe the myth that God gave the land to the Israelites, He certainly didn’t give it to the Khazarians. Russian and East European Jews like the thug Lieberman, Israel’s defence minister, and countless others who flooded into the Holy Land intending to kick the Palestinians out, have no biblical or ancestral claim to the land.
Probably no more than 2% of Jews in Israel are actually Israelites, according to the findings. So most of those living today who claim to be Jews are not descended from the ancient Israelites at all. Palestinians, who are indigenous to the Holy Land, are the real Semites.
Of course, there’s no rush by Israelis or their admirers to acknowledge this.
Has the Johns Hopkins study been refuted? If they and others who came to the same conclusion have got it right, the whole anti-Semitism thing becomes an upside-down nonsense – a hoax – in which the anti-Semites are actually the racist Israeli regime and its Zionist stooges who stalk the corridors of power and have been oppressing the Palestinians for decades with impunity.
Until the topic is thoroughly aired and we have clarity, all anti-Semitism allegations ought to be withdrawn. And no organisation, let alone the Labour Party, should import any definition of anti-Semitism onto its rulebook without looking into the basics.
In the meantime, yes, Jeremy Corbyn needs to dislodge the anti-Jew morons and racist crackpots, of which there are many in all parties. He should also disband Labour Friends of Israel, an aggressive mouthpiece for a foreign terror regime that has no place in British politics.
Job done – Israel’s stooges now in control and doing the dirty work
Meanwhile the concerted fear-mongering by the Zionist Inquisition and browbeating by Jewish community leaders seems to have worked. As I write, Jeremy Corbyn is touring Scotland talking about important things like his ‘Build it in Britain’ plan to regenerate Scottish industry. But the media are gloating over a story involving a former Scottish Labour MP being suspended by his local constituency party and publicly shamed for alleged anti-Semitic remarks – on the strength of just one complaint apparently.
Furthermore the local party executive, in a statement, have already found him guilty. iNews and other media outlets report Renfrewshire North and West Constituency Labour Party Executive Committee as saying: “We fully condemn the anti-Semitic comments expressed by Jim Sheridan, and it is right that he is subject to a full investigation by the Labour Party…. The views expressed by Jim Sheridan in no way reflect the views of the members of the Labour Party in the Renfrewshire North and West constituency…. [His] comments are in direct conflict with the Labour Party’s values of anti-racism, equality and solidarity.”
That’s before he’s had a chance to defend himself.
Cllr Sheridan had tweeted: “For almost all my adult life I have had the utmost respect and empathy for the Jewish community and their historic suffering. No longer, due to what they and their Blairite plotters are doing to my party and the long suffering people of Britain who need a radical Labour government.”
Bearing in mind that the Jewish Leadership Council and the Board of Deputies claim to represent the Jewish community in the UK and have been instrumental in the damaging anti-Semitism campaign against Labour and Corbyn, it is difficult to see anything objectionable in Cllr Sheridan’s remark. But it amounts to a flogging offence, it seems, in the minds of some Labour officials.
Cllr Sheridan said he was restricted from making comment at this stage but told me, as a matter of fact: “I haven’t had a hearing yet or a date for that to happen. You may wish to know that I visited Auschwitz along with a group of schoolchildren and fellow MPs and saw at first hand the horrors and felt the pain and anguish the Jewish prisoners must have felt. Also, in all the years as an MP I signed the annual Holocaust remembrance book in the House of Commons.”
Does that sound like an ‘anti-Semite’ speaking?
In Renfrewshire they seem hell-bent on destroying the Labour Party’s credibility without any further help from the Israel lobby. It is a vivid example of self-harm by brainwashed twits from within. If the press story is to be believed, somebody makes an allegation, the accused is immediately suspended, publicly shamed and possibly has his reputation damaged irreparably without being heard and before the allegation is substantiated. The accused is gagged from making public comment while the local party executive committee feel free to pass judgement and prejudice the whole matter by declaring to the world that the accused is guilty and stating that nobody else in the local party shares his views. ‘Due process’ is conspicuously absent from the proceedings and party officials in Renfrewshire seem to think it’s OK to issue a statement condemning the accused when he hasn’t been told when his side of the story will be heard and by whom.
It’s medieval.
And last month another Scottish Labour councillor, Mary Bain Lockhart of West Fife, was suspended voicing suspicion that Israeli spies might be plotting to get rid of Jeremy Corbyn as Labour leader after three Jewish newspapers published a joint front page warning that a Corbyn-led government would pose an “existential threat to Jewish life in this country”.
She wrote on social media: “If the purpose is to generate opposition to anti-semitism, it has backfired spectacularly. If it is to get rid of Jeremy Corbyn as Labour Leader, it is unlikely to succeed, and is a shameless piece of cynical opportunism. And if it is a Mossad assisted campaign to prevent the election of a Labour Government pledged to recognise Palestine as a State, it is unacceptable interference in the democracy of Britain.”
She added: “Israel is a racist State. And since the Palestinians are also Semites, it is an anti-Semitic State.”
Those paying attention will remember, back in January 2017, revelations that a senior political officer at the Israeli embassy in London, Shai Masot, had been plotting with stooges among British MPs and other maggots in the political woodwork to “take down” senior government figures including Boris Johnson’s deputy at the Foreign Office, Sir Alan Duncan. It should have resulted in the ambassador himself, Mark Regev, a vile propagandist, a master of disinformation and a former personal spokesman for the Zionist regime’s prime minister Netanyahu, also being kicked out. But he was let off the hook. Regev is still here exercising his shifty talents and oiling his links to Mossad.
Masot’s hostile scheming was captured and revealed by an Al Jazeera undercover investigation and not, as one would have wished, by Britain’s own security services and press. “The UK has a strong relationship with Israel and we consider the matter closed,” said the British government. The Speaker of the House of Commons John Bercow, who is Jewish, also declined to investigate.
So Cllr Lockhart is entitled to be suspicious. Nevertheless a complaint about her remarks was lodged by former Labour MP Thomas Docherty. It was Docherty who wrote to the Culture Secretary in 2015 urging a debate to ban Hitler’s Mein Kampf, a best seller on Amazon, arguing that it was “too offensive to be made available”.
And Paul Masterton, the Tory MP for East Renfrewshire, complained that, given how “offensive” Cllr Lockhart’s comments were, the Scottish Labour leader Richard Leonard had been too slow to act and should have spoken out against her behaviour immediately. “Instead we have continued silence from him and a failure to prove to the Jewish community that he and his party are taking this issue seriously. It’s clear to the vast majority of people that Mary Lockhart is no longer fit to hold office, and Scottish Labour must understand that a suspension doesn’t go far enough.”
What the media didn’t tell us is that Mr Masterton is chairman of the All-Party Parliamentary Group on British Jews which is funded, supported and administered by The Board of Deputies of British Jews which, along with the Jewish Leadership Council and others is heavily implicated in picking a fight with Corbyn and trying to ram the IHRA definition of anti-Semitism, unedited, down Labour’s throat.
The IHRA definition, which has been allowed to consume Labour when the Party has better things to do, seems to be having its intended effect. It is obvious that many members still haven’t read the two caveats proposed by the Home Office Select Committee and the legal criticism by Hugh Tomlinson QC and Sir Stephen Sedley. Had they done so, more would insist on it being drastically modified or rejected altogether.
Russian hackers not found… again: DNC retracts claim voter database targeted by cyber-attack
RT | August 23, 2018
The latest alarming news on a sophisticated cyber-attack on the Democratic National Committee’s voter database may have cemented one’s worst fears over Russia hacking into the US elections… except it was really a “phishing test.”
Bob Lord, the committee’s chief security officer, raised the alarm on Wednesday after detecting a fake login page that mimicked the access page for Votebuilder, a program used by Democratic Party officials across that country that hosts the party’s voter database.
“This attempt is further proof that there are constant threats as we head into midterm elections and we must remain vigilant in order to prevent future attacks,” Lord said in a statement. However, within a few hours it became clear that blaming Moscow, no matter how tempting, would not be an option.
In a follow-up statement, Lord clarified that the fake login page was “built by a third party as part of a simulated phishing test.” He claimed that the security test was not authorized by the DNC.
“While we are extremely relieved that this wasn’t an attempted intrusion by a foreign adversary, this incident is further proof that we need to continue to be vigilant in light of potential attacks,” Lord’s anticlimactic clarification said.
It’s not uncommon for corporations or organizations to hire consultants to test for security weaknesses in their computer systems – although it’s unusual for it to be done without any knowledge of the organization, as Lord has insisted.
Still, even when reporting that the scary DNC hack was a false alarm, CNN made sure to remind its readers that Microsoft recently announced (citing no concrete evidence) that it had thwarted an attempt by hackers working for Russian military intelligence to target the US Senate and conservative think tanks that advocated for tougher policies against Moscow.
The Three Musketeers, Poison Gas, and Dead Schoolkids

By Michael Howard | American Herald Tribune | August 23, 2018
Winking and nodding to the “freedom fighters” hunkered down in the northwestern Syrian province of Idlib, the world’s schoolmarm (formally known as The West) has issued a stern warning to President Bashar al-Assad: don’t use chemical weapons “again,” or else. Said warning came via a joint statement from the US, UK and France (henceforth known as The Three Musketeers), as the Syrian government prepares its offensive to retake the country’s last remaining “rebel” stronghold. The three great and benevolent powers are “gravely concerned,” they said, about the upcoming military campaign, explaining:
We also underline our concern at the potential for further—and illegal—use of chemical weapons. We remain resolved to act if the Assad regime uses chemical weapons again. As we have demonstrated, we will respond appropriately to any further use of chemical weapons by the Syrian regime, which has had such devastating humanitarian consequences for the Syrian population.
Read it again, and take note of the crafty way in which the statement messes around with language to manipulate its target audience (us). The use of chemical weapons is accurately, and superfluously, described, and emphasized with em dashes, as “illegal,” as though there was a soul on this earth to whom this is news. Then, alluding to their coordinated missile strikes against Syria this past April, which were unleashed to much pomp and circumstance, The Three Musketeers pledge to “respond appropriately” to any such illegal action on the part of the Syrian government.
Since they insist on begging questions, we must insist on demanding answers. For instance, how “appropriate” was the aforesaid missile attack? Assuming that, in this context, a direct link exists between appropriate and legal (and only an outlaw could reject that assumption), there was certainly nothing “appropriate” about The Three Musketeers’ unilateral decision to use military force against a sovereign country last April. Quite the reverse.
The missile strike, like the one a year before, was carried out in flagrant violation of the law. There are a total of two circumstances in which the use of military force is legally justified: when greenlit by a UN Security Council resolution, or when done in self-defense, that is to say in response to a direct military attack. Neither condition was met when The Three Musketeers rocketed Syria. On the other hand, Syria is accorded the legal right under international law to strike back at its attackers, and moreover to form a coalition for that purpose. As Chapter VII Article 51 of the UN Charter states:
Nothing in the present Charter shall impair the inherent right of individual or collective self-defense if an armed attack occurs against a Member of the United Nations, until the Security Council has taken measures necessary to maintain international peace and security.
Mildly ironic, then—is it not?—that, in “appropriately” bombing the Syrian government, we granted it the legal right to bomb us back? It’s a crying shame: if only Assad and his allies were sufficiently nihilistic … we could’ve had another exhilarating World War on our hands—the third and last. To borrow a quote from of Trump’s favorite general: “Compared to war, all other forms of human endeavor shrink to insignificance. God help me, I do love it so.” On that note, I think it’s high time we substitute “War” for “God” in our Republic’s official motto. Who besides Rand Paul would vote against the proposal?
All of which is to say nothing of the fact that the alleged chemical attack in Douma, which served as the pretext for The Three Musketeers’ “appropriate” bombing raid, almost certainly didn’t happen. The first chink in the armor came in the form of Robert Fisk’s report, from the actual site of the alleged attack, that quotes a local doctor as saying:
There was a lot of shelling [by government forces] and aircraft were always over Douma at night—but on this night, there was wind and huge dust clouds began to come into the basements and cellars where people lived. People began to arrive here suffering from hypoxia, oxygen loss. Then someone at the door, a “White Helmet”, shouted “Gas!” and a panic began. People started throwing water over each other. Yes, the video was filmed here, it is genuine, but what you see are people suffering from hypoxia—not gas poisoning.
By his own count, Fisk interviewed more than twenty Douma residents; he was unable to find a single person “who showed the slightest interest in Douma’s role in bringing about the Western air attacks. Two actually told me they didn’t know about the connection.” Moreover, many of those he spoke with told him they “never believed in” the chemical weapons narratives promulgated by Western media.
Despite the fact that it squared with the Syrian Observatory For Human Rights’ (the West’s go-to authority on the Syrian conflict) assessment of the event, Fisk’s journalism was easy enough for Western ideologues to ignore or deride. He’s only one person, they countered, and he only spoke to a handful of residents and a single doctor, all of whom probably have a pro-Assad agenda. Therefore, his report is worthless and so is he.
This position grew a little less tenable when, a week after Fisk’s story was published, Russia presented to the Organization for the Prohibition of Chemical Weapons (OPCW), which was holding a conference in the Hague, seventeen eyewitnesses, a mix of residents and doctors, all of whom testified that there had been no chemical attack in Douma. As Jonathan Cook explained (yes, one had to visit his personal blog or some equally marginal source to read about this), “the US, UK and France boycotted the meeting, denouncing Russia for producing the witnesses and calling the event an ‘obscene masquerade’ and ‘theatre’”—not a very surprising reaction from a self-righteous party whose fabricated narrative is coming apart at the seams.
Then came the coup de grâce. On July 6, the OPCW published the conclusion of its fact-finding mission in Douma. Before quoting from it, I’ll jog your memory a bit. According to the Western version of events, Assad used both sarin and chlorine (or perhaps a physical mixture of the two, a nonsensical theory), in his attack on Douma—which, incidentally, had already effectively “fallen,” raising questions as to why Assad would feel compelled to use chemical weapons at all, apart from the sheer sadistic fun of it. Regardless, sarin and chlorine, said the West. Not so, said the OPCW:
OPCW designated labs conducted analysis of prioritized samples. The results show that no organophosphorous nerve agents or their degradation products were detected in the environmental samples or in the plasma samples taken from alleged casualties [my emphasis]. Along with explosive residues, various chlorinated organic chemicals were found in samples from two sites, for which there is full chain of custody. Work by the team to establish the significance of these results is on-going. The FFM team will continue its work to draw final conclusions.
Not a trace of sarin, in other words. Attempting to ascertain why “various chlorinated organic chemicals” were found at the site is a pointless exercise for someone, like myself, who knows nothing of chlorinated organic compounds. The most perfunctory research indicates that such chemicals are used for a variety of non-murderous applications, for example as solvents, and that they stick around for a long time after they’ve been introduced to an environment. The basic point, which hordes of media fixers promptly got to work obscuring, is that the Western narrative was false. The US government, in concert with its unctuous allies, lied. Go figure.
Of course, this isn’t the first time a supposed chemical attack in Syria has been called into question. Those curious about whether Assad used sarin to murder hundreds of civilians in the suburb of Ghouta in 2013, as was, and is, claimed by The West, would do well to read two essays by Seymour Hersh—“The Red Line and the Rat Line” and “Whose Sarin”—both published in the London Review of Books, both available online. Hersh also examined the chemical incident that took place in Khan Sheikhoun in April 2017—also used as a pretext for illegal US military action. This time, however, his reporting was too heretical even for the London Review of Books (not to mention the New Yorker), and so had to be published in Die Welt, which no one in the US has ever heard of, let alone read. That Hersh, the preeminent investigative journalist of his time, has been pushed into no man’s land speaks to how narrow the spectrum of permissible discourse has become in this, our great Republic. The schoolmarm is cracking her whip. At this rate Hersh will soon be relegated to the personal blog.
For other dissident views re: chemical weapons in Syria, do yourself a favor and consult the work of former UN weapons inspector Scott Ritter and MIT professor and munitions expert Theodore Postol, as well as the late journalist Robert Parry of Consortium News, all of whom have written extensively, and cogently, on the subject. Or you can keep reading the Washington Post. You’re free to decide.
But what exactly did The Three Musketeers have in mind when they broadcast their latest threat? It’s a fair question to ask. On its face, the statement appears to reflect a genuine aversion to poison gas, and a genuine hope that the Syrian government will refrain from using any in Idlib. Fair enough. Having said that, how averse could they really be, given that gas attacks provide for them the only remotely plausible excuse to lob more cruise missiles out of the Mediterranean—an activity from which they, and their media sidekicks, derive the utmost pleasure? They are, after all, incorrigible hawks. It must cut them to the bone to have to stand by and watch from the sidelines as a perfectly good war winds down, handcuffed, helpless to effect the desired outcome. How pitiable the plight of the poor impotent imperialist! Flaming warmongers need love too.
Anyway, call me schizophrenic, but when I read the words of The Three Musketeers, I couldn’t help but pick up the faint sound of a dog whistle—aimed straight at the “moderate rebels” holding down the fort in Idlib. Read between the lines, the statement is an assurance to one party dressed up as a warning to another. If there’s a “chemical incident,” we will attack: you have our word. That’s the message sent to, and received by, al-Qaeda (I don’t know what they’re calling themselves these days, and I care less) and its various affiliates. Make no mistake: The Three Musketeers have just invited, oh-so-subtly, bin-Laden’s foot soldiers to stage a chemical atrocity in Idlib (God knows how many “various chlorinated organic chemicals” they’ve got on hand there), the resulting pictures of which will duly splash across every television screen in America so as to whip up … well, you’ve heard this song before.
So here’s a new one: a bunch of kids walk onto a school bus in Yemen. As the bus steers through a crowded marketplace, Saudi Arabia drops a bomb on it, killing forty small children and injuring scores more. The bomb is later identified as a “laser-guided” precision missile (precision being the operative word), manufactured by our very own Lockheed Martin, while the mangled school bus is described by Col. Turki al-Maliki, spokesman for the Saudi-led coalition, as a “legitimate target.” Meanwhile, back in illustrious Washington, Pentagon bureaucrat Rebecca Rebarich is asked to comment on the “legitimate” massacre of forty schoolkids.
“The US has worked with the Saudi-led coalition to help them improve procedures and oversight mechanisms to reduce civilian casualties,” she says. “While we do not independently verify claims of civilian casualties in which we are not directly involved, we call on all sides to reduce such casualties, including those caused via ballistic missile attacks on civilian population centers in Saudi Arabia.”
Translated from vapid officialese: “I don’t really give a shit.”
On the bright side, we’re “gravely concerned” about the coming battle for Idlib, where the babies are beautiful and, most importantly, the bombs that kill them are un-American.
Kabul Confirms to Sputnik It Won’t Attend Moscow Conference on Afghanistan
By Ksenia Shakalova – Sputnik – 23.08.2018
MOSCOW – The conference in Moscow will be held amid a conditional ceasefire between the Taliban movement and the Afghan government, which was announced by Afghan President Ashraf Ghani on Sunday.
“We are not going to attend [the Moscow conference]… The peace process should be led by Afghanistan only, only by the Government of the Republic of Afghanistan,” Afghan Foreign Ministry spokesman Sibghatullah Ahmadi told Sputnik on Thursday.
Ahmadi added that it was an independent decision that had nothing to do with Washington.
The spokesman also said that the government already had its own peace council that was working on negotiations with the Taliban.
“Of course we will lead the peace process, but by the way, we have very close relations with Russia and Russia is a big country and a powerful country in the region and one of our friends. And we have very good relations with Russia,” Ahmadi concluded.
On Tuesday, Russia said it had invited officials from 12 countries, including the US, to attend the Moscow-format consultations on Afghanistan. Moscow also confirmed that the Taliban movement expected to participate in the upcoming conference.
A US Department of State official, commenting on the talks, stated that Washington would not take part in the meeting, doubting that the talks would help to establish peace in Afghanistan.
Goldman, JPMorgan object to Russian proposal to limit their ability to move money out of the country
RT | August 23, 2018
A total of 15 foreign lenders are protesting against a new plan proposed by the Russian central bank to reduce the amount of cash they can move abroad from their units located in Russia.
Russian subsidiaries of banking majors, including Goldman Sachs, Citigroup, Raiffeisen, JPMorgan, Deutsche Bank and HSBC Holdings, have voiced their objections to plans that would limit the Russian units to depositing just 20 percent of their capital abroad at their parent companies. Under the current regulations, there is no limit for banking operations of this kind.
The Central Bank of Russia proposed the rationing measures in response to fresh anti-Russia sanctions from the US and Europe that could allow foreign lenders to block access to the funds for its units based in Russia, two sources close to the issue told Bloomberg. The targeted lenders say they will have to reduce their loan services in Russia, according to unnamed people quoted by the agency.
If the new rules enter force, most of the local units run by foreign banks will inevitably be in violation of the mandated capital ratios. Some of the lenders, including Nordea Bank and Commerzbank, say the measure will create “unequal” conditions for local banks and foreign-owned subsidiaries.
Ahead of the US mid-term elections in November, the US Congress is actively discussing potential punitive measures against Russia over its alleged meddling in US elections. Among the penalties is a ban on using US dollars for some of Russia’s biggest banks. In August, local banking bonds brought investors a loss of 5.1 percent in dollar terms, the worst of any sector domestically, according to a Bloomberg Barclays index.
According to the Central Bank of Russia, the final version of the rule is still being discussed. The regulator didn’t elaborate on the goal of the restrictions or on the fate of the proposal.
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