US imposes fresh sanctions on North Korea despite Treasury warning
Press TV – June 15, 2023
The United States has imposed fresh punitive measures on North Korea, targeting the country’s missile program despite a recent warning from the Treasury that sanctions are pushing many countries to seek alternatives to the dollar for settlements.
The US Treasury Department issued the punitive action on Thursday after South Korea earlier said its neighbor fired two short-range missiles, Reuters reported.
The South Korean military said North Korea fired two short-range missiles off its east coast on Thursday after Pyongyang warned of an “inevitable” response to the military drills staged by several thousand South Korean and US troops on the Korean Peninsula.
The Treasury in a statement said it imposed sanctions on two North Korean nationals, accusing them of being involved in the procurement of equipment and materials for the country’s ballistic missile program.
“The United States is committed to targeting the regime’s illicit procurement networks that feed its weapons programs,” said the Treasury’s Under Secretary for Terrorism and Financial Intelligence, Brian Nelson.
The sanctions also targeted a Beijing-based representative for the Second Academy of Natural Sciences, which the US claimed is responsible for research and development for North Korea’s advanced weapons systems. His wife was hit with sanctions as well.
The Treasury in the statement said North Korea continues to use a network of representatives abroad to import components necessary for its nuclear and ballistic missile programs.
Earlier in the day, South Korean and US troops held joint live-fire exercises in the region. A total of 2,500 troops took part in the maneuvers in Pocheon, northeast of Seoul.
President Yoon Suk Yeol of South Korea personally watched the live-fire exercises. He said the drills were the largest of their kind ever held with the United States.
North Korea released a statement on Thursday, with a defense ministry spokesperson saying the exercises were “targeting the DPRK (North Korea) by massively mobilizing various types of offensive weapons and equipment.”
“Our response to this is inevitable,” said the statement, carried by the official Korean Central News Agency.
It said the drills were “escalating the military tension in the region.”
North Korea has been under harsh sanctions by the United States and the United Nations Security Council for years over its nuclear and ballistic-missile programs.
US Treasury Secretary Janet Yellen admitted during her annual appearance on Tuesday before the House Financial Services Committee that US sanctions were pushing many countries to seek alternatives to the dollar for settlements.
Asked about the risk of de-dollarization, Yellen acknowledged that the use of the dollar in the global economy is diminishing.
“It’s not surprising that countries that are fearing they can be affected by our sanctions are looking for alternatives to the dollar. It’s something that we simply have to expect,” she stated.
Green Party Headquarters’ Heat Pump Debacle: 5 Million Euros Cost, Still No Heat!
By P Gosselin | No Tricks Zone | June 13, 2023
The energy follies of Germany’s current Socialist/Green government continue to compound unabated. It turns out the coalition partner Greens cannot even get renewable energy to work at their own party headquarters in Berlin.
How can the Greens demand everyone else convert to a heat pump when they can’t even get their own to work?
While the Greens of the Socialist-Green coalition government are pushing to ban fossil fuel furnaces from every home and building in Germany and forcing them to install heat pumps in their place, it has emerged that the Greens themselves cannot even manage to get their own heat pump up and running at their Berlin party headquarters! Oh, the irony.
According to media outlets, the Green Party headquarter in Berlin-Mitte has been a big messy heat pump construction jobsite “for years” – since 2019. Costs have run into the millions!
And still no heat after 5 million euros in costs
“Here at the Green Party headquarters in Berlin, construction has been going on for years. The heat pump is still not running,” reports RTL.
“The Greens are experiencing first-hand how complicated it is to heat an old building with a heat pump,” RTL continues. “The renovation costs a total of five million euros. The heat pump is there, but does not heat.”
Refuse to learn from their own debacle
Der Spiegel reports on the heat pump debacle and how “heating the old building in a renewable way is not that easy”.
Apparently the work is far more complicated than the Greens previously thought as the project entails major renovation works, excavation, permits, expert personnel and special equipment. And now after having endured the construction, installation and cost woes for years, it remains a mystery today why the Green Party would want the rest of the country to experience the same nightmare.
Dragging on for years, costing millions
“In 2019, the Greens, chaired by Annalena Baerbock and Robert Habeck, decided to rebuild their party headquarters in Berlin and modernize it in terms of energy, reports RND news. “The gas boiler in the party’s old building was to make way for a modern heat pump, among other things. However, the measures were not carried out quickly, and have been dragging on for three and a half years, as the news magazine Spiegel reported. So this is not exactly a showcase example for quick and unbureaucratic energy-efficient renovation. Doesn’t the transition to renewable energies and heating demanded by the Greens even work within the party headquarters’ own four walls?”
The Greens have become the country’s number one laughing stock. Little wonder they’ve lost almost half of their supporters over the recent months.
Washington Trying to Blackmail Armenians in Karabakh Into US-Brokered Talks: Here’s Why
By Ilya Tsukanov – Sputnik – 14.06.2023
The dispute between Armenians and Azerbaijanis over the landlocked mountainous region of Nagorno-Karabakh has been a source of severe tensions between the Caucasus nations, with several conflicts fought over the territory over the past 35 years. Moscow has worked tirelessly to mediate the crisis.
Washington is reportedly making a concerted, behind-the-scenes push to interfere directly in negotiations between Azerbaijan and the ethnic Armenian-led unrecognized Republic of Nagorno-Karabakh, including by blackmailing the Armenian side with the threat of a fresh round of violence in the region.
Informed sources cited by Russian media indicated that US officials – which until recently had limited their “mediation” efforts to talks between Azerbaijan and Armenia proper, are now trying to force their way into the sensitive negotiations between Baku and Stepanakert (Nagorno-Karabakh’s self-proclaimed capital).
“In the form of an ultimatum, Washington is forcing Nagorno-Karabakh representatives to agree to a meeting with the Azeri side in the near future in a third country under the supervision of American curators. Moreover, the Karabakh leadership has been told that if they refuse, they will be threatened with something close to an Azerbaijani ‘counter-terrorist operation’ in the region,’” the sources indicated.
The “ultimatum” has reportedly been received negatively in Stepanakert overall, but got support from Sergey Ghazaryan, the self-proclaimed republic’s foreign minister.
The past few weeks have seen a flurry of US and EU diplomatic activity in the Southern Caucasus, with Armenia and Azerbaijan’s foreign ministers meeting in Washington with Secretary of State Antony Blinken in early May, and Armenian Prime Minister Nikol Pashinyan and Azerbaijani President Ilham Aliyev holding talks in Brussels mediated by European Council chief Charles Michel the same month. In late May, Pashinyan, Aliyev, and Russian President Vladimir Putin held trilateral talks in Moscow. Pashinyan and Aliyev got into an argument much reported on in Western media about transport corridors during the Eurasian Economic Union Summit, with Putin intervening to quell the dispute.
US and EU mediators spoke of “significant progress” in the Armenian-Azeri talks, but few details were made public. However, on May 22, Pashinyan made the bombshell announcement that Yerevan would be ready to recognize Nagorno-Karabakh as part of Azerbaijan if the security of its ethnic Armenian population was guaranteed. This move was sharply criticized by some observers as a de-facto concession by Yerevan to leave the Karabakh issue “practically to the mercy of Western sponsors,” with autonomy guarantees for the region left off the table.
Moscow deployed a 2,000 troop-strong peacekeeping contingent to Nagorno-Karabakh three years ago after the September-November 2020 war, with these forces patrolling the Lachin corridor connecting Armenia proper to Nagorno-Karabakh. Russia’s strategy has revolved around seeking to maintain the status quo, ensuring the safety and security of the local civilian population, and preventing any further hostilities from breaking out.
Concerted Push to Eject Russia From Region
Retired Russian Foreign Ministry senior advisor Alexander Ananiev fears US and its allies and sympathetic actors in Yerevan and Baku have decided to try to remove Russia from its mediation role, and to eliminate Russia’s presence in the Southern Caucasus generally (including through the removal of the Russian military base in Armenia proper, and Yerevan’s withdrawal from Russian-led integration processes and defense agreements).
“Yerevan, with a geopolitical turn away from Russia, wants to receive the support of the West, but, in accordance with the ‘post-Soviet traditions’, not to lose anything from Russia in economics terms. For Baku, it’s important to distance itself from Moscow due to sanctions and the desire to gain a foothold as an important energy supplier to the European Union,” Ananiev wrote in a recent article in a major Russian international affairs journal.
‘Perfect’ Timing
Stanislav Tarasov, a veteran Russian political scientist specializing in Caucasus affairs, points out that the timing of the reported US “mediation effort” in Nagorno-Karabakh lines up perfectly with the signing of a major railway construction agreement by Russian and Iranian officials last month to bring the ambitious North South Transport Corridor one step closer to reality.
“The West offers nothing, have no solution of their own. They play on contradictions between Yerevan and Baku which Moscow is trying to neutralize or eliminate,” Tarasov told Sputnik.
“America’s interests are very simple. First, they would potentially like to use the South Caucasus as a springboard for ‘containing Iran.’ So far, this has not been achieved, although they did manage to carry out an operation to complicate ties between Azerbaijan and Iran. Second, they have managed to preserve a hotbed of regional tension via the Karabakh conflict. Third, the implementation of the North-South Corridor’s transit routes requires huge investments –investments which do not flow to an area facing the potential threat of war. This means Russia will seek to resolve this situation… while the West will try to destabilize it, so that Russia can’t break through the Southern Caucasus and unblock its communications,” the observer explained.

North South Transport Corridor (NSTC)
For Russia, the opening of new trade and transit routes is particularly vital today, Tarasov said, owing to the breakdown in economic relations with the West after the escalation of the Ukraine crisis, which deprived Moscow of key routes for global trade.
Consequently, “in order to block Russia in this region, the West began to put spokes in the wheels, including relating to the peace processes formed which emerged after the Second Karabakh War, but which, unfortunately, could not be fully resolved at the time,” he said.
German FM slammed by Brazilian internet users for comments on Ukraine
By Ahmed Adel | June 14, 2023
German Foreign Minister Annalena Baerbock was severely criticised on Brazilian social media for saying during her official visit to Brazil that poor mothers in the Latin American country do not care about international conflicts because they focus “on the price of rice and beans in the supermarket.”
During her speech at the Getúlio Vargas Foundation in São Paulhhfo, Baerbock suggested that low-income Brazilians would not be concerned about international events as they were focused on guaranteeing their subsistence.
“I would like to say clearly: I fully understand that you here in Latin America perceive the threat of this war differently than we do in Europe, but also question, ‘Where is Ukraine again?’ I fully understand that a mother from Itaquera or Campinas says: ‘For me, the price of rice and beans in the supermarket this week is more important than what happens in a country 11,000 kilometres away’,” said Baerbock.
The reaction was immediate on social media and YouTube channels, with Brazilians applauding the mothers of Itaquera and Campinas for focusing on maintaining life and not sending weapons to sow death.
An article in Folha de São Paulo, in turn, questioned the European commitment to Latin America: “Funny that Europe remembers that Latin America exists only when they are roasting from global warming or are at war. Apart from that, we know very well how they see us.”
Robinson Farinazzo, a Reserve officer of the Brazilian Navy, joined the outrage on his Arte da Guerra channel. He criticised the German minister’s attempt to commit Brazil to the European conflict.
“The West invested $124 billion and gathered a coalition of 28 countries against Russia, sending all kinds of weapons, mercenaries, satellites and, even so, they do not solve the problem. And now they are trying to push the problem to Brazil? Have pity,” said Farinazzo.
“Europe’s problems are not the world’s problems. These stuck-up people, with their noses in the air, have to understand that,” he added.
The reserve officer also noted that Baerbock “left Brazil empty-handed” since she was not even received by Brazilian President Luiz Inácio Lula da Silva or Foreign Minister Mauro Vieira, who was on an official trip to France.
Baerbock fulfilled her agenda in São Paulo and Brasília by meeting with the Secretary General of the Itamaraty (Brazilian Foreign Ministry), Maria Laura da Rocha. The Itamaraty published a joint communiqué expressing commitment to bilateral cooperation and the fight against climate change, demonstrating that Baerbock could not win any concessions from Brazil regarding Ukraine.
During the trip, the German foreign minister called on Brazil to align with Western countries on geopolitical matters, particularly the Ukraine war and China. In return, a closer relationship with Europe was offered. However, this blackmailing is useless since China, and not Germany, is Brazil’s leading trade partner.
“Security and development are not opposites. They depend on each other,” Baerbock said at the Digital Democracy Festival in São Paulo, pointing to the global impact of rising food prices due to the war.
“Let’s reach out and shape a future together that all of us can benefit from,” she added.
The EU-Mercosur trade deal has not been ratified despite being in the works since 1999. Baerbock said at the festival that the main keys to the rapprochement of “like-minded democratic states” would “make it clear that democracies when they work together, can solve global challenges.”
A summit of European, Latin American, and Caribbean leaders on July 17 could invigorate the fruition of the EU-Mercosur trade deal, and it is clear that Baerbock is attempting to leverage this against Brazil so it capitulates and provides aid to Ukraine. However, Brazil is unlikely to be pressured into changing its foreign policy course.
The EU- Mercosur agreement is expected to be signed by the end of this year, whether Baerbock attempts to add unofficial clauses or not. This was effectively confirmed by European Commission President Ursula von der Leyen in her meeting with Lula in Brasília on June 12.
During this meeting, Lula drew attention to the fact that Europe has adopted unilateral laws and rules to impose sanctions on international trade without considering previously established strategic partnerships, as in the case of Brazil. Von der Leyen sidestepped this point and praised Lula, saying he “brought Brazil back to where it belongs – a major global player, a leader in the democratic world.”
In any case, Lula and Brazil do not need platitudes from Germany and the EU. Brazil will instead steer its course without being beholden to any power. This will frustrate the West, but as Latin America’s biggest power, Brazil is responsible for leading by serving its interests first and not the West’s. For this reason, Brasília’s relations with Moscow and Beijing will remain strong despite constant Western pressure.
Ahmed Adel is a Cairo-based geopolitics and political economy researcher.
Surging New England Energy Prices: No Surprise
By Steve Goreham | Master Resource | May 30, 2023
“New England home heating and electricity prices are on the rise with no end in sight. Consumers paid record high energy bills last winter, even though the winter was not unusually cold. Shortages of natural gas and green energy policies will drive New England prices higher and raise the chance of electricity blackouts.”
Residential energy bills in New England this year were the highest in history. The combination of electricity and natural gas heating bills exceeded $1,000 per month for an average-sized house in Massachusetts, even though winter temperatures in New England were warmer than average.
Eighty percent of homes in New England, which includes Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont, heat with fuels from oil and gas. The hydrocarbon fuel share of home heating is natural gas (39%), fuel oil and kerosene (33%), and propane or liquid petroleum gas (8%). Homes also use electricity (16%) and other sources (4%) for heat.
Natural gas is also the leading fuel for generation of electricity. New England power comes from natural gas (43%), nuclear (21%), imports (17%), hydroelectric (6%), renewables (12%), and other generators (1%). But New England residents now pay higher prices for natural gas than the rest of the nation and gas prices are rapidly rising.
For the last decade, the State of New York blocked the construction of natural gas pipelines as part of efforts to decarbonize. For example, the Constitution Pipeline project was cancelled in 2019 after an eight-year battle. Plans called for the pipeline to connect natural gas fields in Pennsylvania to the gas network in Schoharie County, just west of Albany, New York. Because New York is blocking pipeline delivery, New England is forced to import liquified natural gas (LNG) for home and electrical power generation.
New Englanders now pay more than twice the price for natural gas than most other US residents pay, and that gap is growing. During peak periods, the Citigate Massachusetts price for gas now rises to more than $10 per million BTU, much higher than the US average Henry Hub typical price of $3-4 per million BTU. Because pipeline capacity is low, New England must import up to 30 percent of its gas by LNG tanker and pay high world market prices. During the recent global energy crisis, Massachusetts was paying $40-$50 per million BTU for imported LNG.

New England electricity prices are also among the highest in the nation. In 2022, power prices for all six of the New England states were over 20 cents per kilowatt-hour, and all in the top ten for state electricity prices. Massachusetts residential customers paid 26.1 cents per kW-hr, surpassed only by prices in Hawaii and California.

The risk of electricity blackouts in New England is rising. The Interstate Natural Gas Association of America sent a letter to President Joe Biden last November, warning that the region “does not have sufficient pipeline infrastructure” and is “at risk of an energy shortfall.” ISO New England, the non-profit organization responsible for reliable electricity in New England, wrote a similar warning letter to Energy Secretary Jennifer Granholm last summer, stating, “during the coldest days of the year, New England does not have sufficient infrastructure to meet the region’s demand for natural gas for both home heating and power generation.” But government leaders and environmental groups oppose further expansion of natural gas infrastructure.
The Federal Energy Regulatory Commission and ISO New England have proposed a shift in LNG pricing to allow purchase and stockpiling of natural gas in New England to prevent a winter fuel shortage. This price shift would raise consumer prices and is opposed by New England states and environmental groups. The pipeline capacity shortage and inadequate gas stockpiles have set the stage for electricity blackouts in the region during the next severe winter.
New England state governments remain committed to construction of offshore wind turbines and providing incentives for electric heat pumps as part of a misguided effort to fight climate change. But these programs, if completed, will not make the grid more reliable and will further boost energy costs.
New England homeowners, better get yourself a backup electric generator and prepare for further rises in home heating and electricity prices.
Is a new conflict brewing near Ukraine? Clampdown on anti-NATO opposition figures has raised tensions

Yevgenia Gutsul of Moldova’s opposition Sor Party, elected head of the autonomous Gagauzia region, at a rally in Comrat, Autonomous Territory of Gagauzia, Moldova. © Sputnik / Rodion Proca
By George Trenin | RT | June 12, 2023
In Moldova, a conflict has broken out between the state authorities and the autonomous region of Gagauzia, where elections were held last month. Disturbed by the fact that two candidates seen as favorable to Moscow competed in the runoff, the Moldovan authorities initiated eight processes on suspicion of illegal financing of the candidates and investigated the activities of the Gagauz Election Commission. Allegations of election violations and threats that the election results would not be recognized by Moldova have caused the authorities of the autonomous region to retaliate. At the end of May, Gagauz politicians delivered an ultimatum to the central authorities and some even expressed readiness to hold an independence referendum.
What caused the conflict between Moldova’s central and regional authorities? And can Ukraine’s neighbor, Gagauzia, really break away from Moldova?
Who are the Gagauz people and what is Gagauzia?
The Gagauz are a relatively small ethnic group (numbering about 250,000 people), most of whom live in Moldova. Historians don’t have a single opinion concerning their origin, but what is known for sure is that the Gagauz people came to their current lands from the Balkans, fleeing from the many wars that shook the peninsula in the 19th century. The Gagauz are Orthodox Christians but their language belongs to the Turkic family. Ethnically, the Gagauz are closer to Bulgarians than to Moldovans and Romanians who make up most of Moldova’s population.
This difference spurred the Gagauz people – who never had an independent republic or autonomous region, even at the time of the Soviet Union – to establish their own state. When Soviet Moldova embarked on a course towards independence and unification with Romania in 1989, the Gagauz people declared their autonomy.
In 1990, together with the better-known Transnistria, the Gagauz did not accept Moldova’s pro-Western and pro-Romanian course. Plans to unite Moldova and Romania sparked a conflict, and the two regions decided to break off and become independent.
While Transnistria engaged in a prolonged armed conflict to defend its independence (and consequently became an unrecognized state), Gagauzia, following a five-year-long political crisis, agreed to be an autonomous region within Moldova. Russia and Turkey helped in this process and acted as intermediaries.
However, such diplomacy and compliance eventually turned against Gagauzia. Some 30 years after the agreements with Moldova were signed, the autonomous region’s authorities became alarmed that Chisinau no longer wished to comply with the pact and intended to terminate it.
Autonomy under siege
“We see that Gagauzia’s authority is being consistently weakened and can no longer just sit and watch this happening,” said the Chairman of the Gagauz Parliament Dmitry Konstantinov on May 24. At the same time, he requested legal confirmation of the region’s autonomous status from Moldova.
The situation was sparked by the harsh reaction of the Moldovan authorities to the elections in Gagauzia, which took place in May. The two top candidates who competed in the runoff both criticized Chisinau’s current political course and proposed strengthening ties with Russia.
The first candidate was Grigory Uzun – a member of the Party of Socialists of the Republic of Moldova (PSRM), who was backed by the party’s leader, Moldova’s ex-president Igor Dodon. Uzun said, “Gagauzia has always gravitated towards expanding ties with its eastern neighbors, but the current Moldovan authorities aim exclusively at partnering with the West, without other options. But this is the wrong approach.” In a pre-election interview, Uzun also added that Moldova and Russia have “a common history, religion, and culture” and the two countries “simply must be friends.”
In the runoff, Uzun’s opponent, 34-year-old Evghenia Gutul, outpolled him by 4% of the vote and won the election. The elected leader was also quite clear about her position regarding Russia. She plainly stated that her party, Sor, is a “pro-Russian party,” promised to open a representative office of the Gagauz Autonomy in Moscow, and to unblock exports of agricultural products to Russia.
For Moldova’s current leaders who actively support a pro-Romanian and pro-Western course, such views held by the head of one of its regions are absolutely unacceptable. Moldova didn’t hesitate to make this known during the election campaign.
On the eve of the elections for the post of bashkan (governor of Gagauz, the highest political position in the region), law enforcement agencies repeatedly raided the offices of the candidates and members of the Sor opposition party. After Gutul’s victory was announced, members of the National Anti-Corruption Center (NAC) raided the building of the Central Election Commission (CEC), located in the capital Comrat. According to reports, during the searches on May 16 the NAC looked for materials confirming the “bribery of voters.”
Immediately after the elections in Gagauzia, Moldovan Prime Minister Dorin Recean said they should not be recognized as legitimate. Moreover, deputies from the ruling Party of Action and Solidarity (PAS) said the elected Bashkan Evghenia Gutul would not become a member of the Moldovan government since they didn’t need her there.
A couple of days later, the Moldovan presidential administration nevertheless stated that President Maia Sandu would sign a decree making the elected bashkan of Gagauzia part of the Moldovan government in compliance with all legal procedures. However, this did not lessen the negativity sparked by the previous statements and actions of the Moldovan authorities.
A nationwide issue
The conflict escalated further. On May 21, representatives of the Sor party and local activists held several rallies in Comrat in defense of the election results. They demanded that authorities stop pressuring the opposition, the media, and all those who criticize and disagree with the central party and President Maia Sandu, and called for the preservation of Moldova’s neutrality and the cessation of its process of withdrawal from the CIS. On the same day, the party’s leader Ilan Shor announced rallies in three cities – Balti, Comrat, and Orhei – where a “referendum on the country’s external vector” would be proposed.
The deep involvement of the Sor party in the regional issue isn’t just tied to the fact that its candidate won the election in Gagauzia. It also has a lot to do with the unprecedented pressure that the Sor party has been dealing with lately.
Just four days before the elections, the court started proceedings on verifying the constitutionality of the Sor party. The decision of the Constitutional Court is supposed to seal the fate of the opposition party and determine whether it should be shut down for the first time in the country’s 30-year history.
At first, the court said it would hear the case on May 17. But since then, the verification has been postponed several times. Eventually, the judges announced that they were going to postpone the hearing until June 12.
In fact, the Moldovan government appealed to the court to consider the constitutionality of the Sor party last year, but the legal proceedings began only a few days before the runoff election. According to the opposition leaders, this was because the Sor party supported and led the protests against rising food and fuel prices. The opposition criticized the ruling coalition for not wanting to negotiate more favorable prices for raw materials with Russia.
However, despite increasing pressure on the opposition in Gagauzia and Moldova, the ruling Party of Action and Solidarity didn’t put forward any candidate of its own to run for the post of governor in Gagauzia.
“Gagauzia is a region that traditionally supports strong ties with Russia and is largely indifferent to the European integration course declared by Chisinau. So it is obvious that the candidate from the Party of Action and Solidarity would have received the minimum number of votes, at best 100 or 200,” Sergei Manastyrli, head of Chisinau’s Balkan Center for Analysis, Research and Forecasting, told RBC.
The European Union is also attempting to exert pressure on Moldovan parties that favor practical relations with Russia. Recently, the EU began forming a “blacklist” of Moldovan oppositionists and oligarchs. Five Moldovan citizens are about to be sanctioned and their assets will be frozen. All of them are accused of supporting the Russian Federation. The list is topped by the chairman of the Sor party Ilan Shor, its deputy chairman Marina Tauber, and the former leader of the Democratic Party of Moldova, oligarch Vladimir Plahotniuc.
The ‘fifth column’
Pro-Russian sentiments in Gagauzia and Moldova in general are largely driven by economic factors – and it’s not just a matter of discounted energy resource prices, which Moscow traditionally offers to friendly states.
Russia has always been the main market for the autonomous region’s exports, mainly for products of the wine industry. While there are restrictions in place on the import of products from Moldova, products from Gagauzia have easier access to the Russian market. Moldova’s ruling party, however, opposes any joint projects with Russia and tries to limit contacts between the autonomous region and Russia. Apparently, Chisinau has totally different views about Gagauzia’s pro-Moscow sympathies.
In light of the recent scandals, the head of the Gagauz Community of the Republic of Moldova, Nikolai Terzi, also had a say in the conflict. He has accused Moldovan President Maia Sandu of considering all Gagauz residents a “fifth column.”
“I attempted to make a number of proposals on bringing the central government and the Gagauzia ATU closer together to work on the development and strengthening of the state of Moldova, and on finding ways to strengthen the central government’s positions in the region. But I was interrupted by the president, who said that Gagauzia is someone’s ‘fifth column.’ In response to my question whether this is true for the whole of Gagauzia, I received an affirmative answer,” said Terzi.
The head of the People’s Assembly of Gagauzia, Dmitry Konstantinov, said he once asked President Maia Sandu why she was in no hurry to visit Gagauzia. According to Konstantinov, her answer was, “We know that you are waiting for the Russians to come.”
Former leader of Gagauzia Mihail Formuzal is skeptical about Evghenia Gutul’s ability to exert considerable influence on the current situation, due to limited authority.
“Even though this position makes her a part of the Moldovan government, she will be a purely decorative element there. She can speak and object, but she has only one vote, while there are 21 people in the government,” he notes. Formuzal adds that “Gagauzia has no real autonomy,” since “Chisinau can control any ministry.” Gagauzia can only speak out about problems within its authority.
He also mentioned that Chisinau could threaten the authorities in Comrat by cutting the funding for road construction.
“Chisinau uses such methods regardless of the government in power. This also happened when I was the bashkan. Some prime ministers did not provide Comrat with money for road construction at all,” Formuzal said.
So far, instead of economic measures, Moldovan authorities prefer to deal with the mounting dissatisfaction in Gagauzia by funding numerous pro-Western NGOs and mass media. According to Formuzal, unprecedented amounts of money are being allocated for these purposes.
“These media resources receive millions of lei in funding. Chisinau is throwing crazy money at this! They harshly criticize the pro-Russian views held by the majority of the Gagauz people, propose joining the European Union and push forward European values. They are very goal-oriented and systematic in their work, which is carried out in both the Russian and Gagauz languages. The staff is selected from among the locals. Generally, they are very successful. I predict that in another eight to ten years of such intensive work, we may have a pro-Western bashkan,” he says.
Despite this, he believes that, presently, the people of Gagauzia are not interested in the ruling party’s pro-European agenda since the standard of living is on the decline.
“Gagauz residents remember how a cubic meter of gas used to cost six lei when the leaders in Chisinau could find a way to get along with Russia. But now we have to pay 30 lei per cubic meter. In such circumstances, how can you explain to people the benefits of liberal democratic reforms? Will they improve your quality of life? Absolutely not!” says Formuzal. He also notes that “people do not see anything positive coming from Chisinau and so treat it with extreme negativity.”
What’s next?
On May 27, a large congress of Gagauz public representatives was held in Comrat. It was attended by local parliamentary deputies of the current and previous convocations, mayors, local councilors, public figures, and the head of the autonomous region.
The congress accused the central authorities, headed by President Maia Sandu, of escalating the situation, violating the rights of Gagauz residents, provoking conflicts, and creating a split in society.
Even the current governor of Gagauzia, Irina Vlah, who is often accused of excessive sympathy towards the central authorities, spoke out in a rather tough manner:
“For the first time in all the years of Gagauzia’s existence, the central government is consistently escalating the situation, provoking conflicts, and setting the Moldovan people against the residents of the [Gagauz] autonomy. The PAS party and President Sandu, set on developing her cult of personality, have split our Moldovan society with their policy. The desire to limit the authority of the autonomous region will lead to an escalated conflict between the central and regional authorities. Starting a fire is easy, putting it out is a lot harder.”
Following the congress, a resolution was adopted that outlined precise requirements for the central authorities. The elected representatives of the Gagauz people demanded several things from Moldova: to give the Law on the Special Legal Status of Gagauzia constitutional status; to align Gagauzia’s autonomous status with the legislation of the Republic of Moldova; to stop illegally blocking the region’s right to exercise authority, as per the Law on the Special Legal Status of Gagauzia; and to stop revoking Gagauz laws in Moldovan courts.
Moreover, the congress wanted Moldova to restore the customs service, the tax inspectorate and other abolished regional structures, to reinstate the prosecutor of Gagauzia as a member of the Supreme Council of Prosecutors, and provide Gagauzia with a quota in the parliament – all within three months.
The most radical demand was to ban the activities of political parties that propose the cessation of Moldova’s status as an independent state. This is a clear hint at the ruling party and President Maia Sandu, who have repeatedly supported the idea of forming a single state out of Moldova and Romania.
The resolution ends with a warning: “We declare that if the central authorities of the Republic of Moldova continue to ignore the legitimate requirement of respecting the competency and authority of Gagauzia and fail to ensure the political and legal status of the Autonomy in the Constitution, the central authorities of the Republic of Moldova will be held fully responsible.”
The resolution did not mention the specific measures that the Gagauz authorities would take, but speaking at the congress, Deputy Nicolai Dudoglo outlined the possible outcome of this conflict:
“Now that all the politicians of Gagauzia are united, Chisinau cannot use them [in its interests]. If Chisinau continues its rhetoric and does not begin a dialogue with Comrat, we should hold a referendum on the independence of Gagauzia. It’s time for a man-to-man conversation.”
Germany squandering billions on Israel’s Arrow-3 missile defence system
MEMO | June 10, 2023
Germany squandering almost 4 billion euros ($4.30 billion) on Israel’s Arrow-3 missile defense system is a prime example of financial mismanagement. Astonishingly, the government plans to request advance payments of up to 560 million euros from lawmakers, revealing a complete disregard for responsible spending. The Arrow-3 system, supposedly designed to intercept ballistic missiles outside the earth’s atmosphere, is nothing more than an overpriced addition to Israel’s already extensive missile defense arsenal.
Despite its lofty claims, the Arrow-3 merely serves as the extravagant crown jewel of Israel’s defense array, spanning from the unnecessary short-range rocket interception capabilities of Iron Dome to the extravagant long-range missile destruction capabilities of Arrow-3. Germany’s acquisition of this system showcases a distorted sense of priorities and a blatant waste of taxpayers’ hard-earned money.
The government aims to finalize a government-to-government deal with Israel by the end of the year, leaving little room for rational decision-making or exploring alternative, more sensible options. Astonishingly, the procurement documents prepared for parliament reveal that Germany will forfeit part or all of its advance payments if the deal falls through, essentially guaranteeing compensation to Israel for costs they may incur. This reckless arrangement further burdens German taxpayers and highlights the government’s lack of fiscal prudence.
Even more concerning is the fact that Germany’s air force is expected to take delivery of the Arrow-3 system, now costing a staggering one billion euros more than initially planned, by the fourth quarter of 2025. Such an inflated expenditure raises serious questions about the government’s judgment and its ability to allocate funds responsibly.
It is worth noting that Germany’s justification for this extravagant purchase, using Russia’s conflict in Ukraine to argue for a shortage of ground-based air defense systems, is nothing more than a flimsy pretext. While medium-layer defense systems like Raytheon’s Patriot units or the more recent IRIS-T system provide sufficient coverage, Germany’s decision to acquire the Arrow-3 demonstrates a foolish preoccupation with unnecessary high-layer defense.
By indulging in such a costly acquisition, Germany jeopardizes the allocation of funds for crucial areas such as infrastructure, social programs, and economic development. The government’s skewed priorities raise serious concerns about its commitment to the well-being of its citizens and the prudent management of public resources.
China’s criticism of America’s ‘piecemeal crisis management’ in Palestine is based on international law
By Ramzy Baroud | MEMO | June 6, 2023
Remarks on 24 May by China’s Ambassador to the UN on the situation in Occupied Palestine were impeccable in terms of their consistency with international law. Compared with the position of the US, which perceives the UN and the Security Council in particular as a vehicle to defend Israeli interests, the Chinese political discourse reflects a legal stance based on a deep understanding of the realities on the ground.
Articulating Beijing’s thinking during a Security Council “Briefing on the Situation in the Middle East, including the Palestine Question”, Ambassador Geng Shuang did not mince his words. He spoke forcefully about the “irreplaceable” need for a “comprehensive and just solution” that is based on ending Israel’s “provocations” in Jerusalem and respect for the right of “Muslim worshippers” as well as the “custodianship of Jordan” in the occupied city’s holy sites.
Widening the context of the reasons behind the latest violence in Palestine, and the 9 May Israeli attack on Gaza, Geng went on to state a position that both Tel Aviv and Washington find totally objectionable. He condemned unapologetically the “illegal expansion of [Israeli Jewish] settlements” in Occupied Palestine and Israel’s “unilateral action”, urging Tel Aviv to “immediately halt” all of its illegal activities. The Chinese ambassador then proceeded to discuss issues that have been relatively ignored, including “the plight of the Palestinian refugees”.
In doing so, Geng has enunciated his country’s political vision regarding a just solution in Palestine, one that is predicated on ending the Israeli occupation, halting Tel Aviv’s expansionist policies, and respecting the rights of the Palestinian people.
Is this a new position, though?
While it is true that China’s policies on Palestine and Israel have historically been consistent with international law, in recent years it has attempted to tailor a more “balanced” position, one that does not impede growing trade with Israel, particularly in the area of advanced microchip technology.
However, Chinese-Israeli affinity was motivated by more than trade. Since its official launch, China’s Belt and Road Initiative (BRI) has served as the cornerstone of Beijing’s global outlook. The massive project involves nearly 150 countries and aims to connect Asia with Europe and Africa via land and maritime networks. Due to its location on the Mediterranean Sea, Israel’s strategic importance to China which, for years, has been keen on gaining access to Israeli ports, has thus doubled. Predictably, such ambitions have been of great concern to Washington, whose naval vessels often dock in the port city of Haifa.
Washington has repeatedly cautioned Tel Aviv against its growing close relationship with Beijing. The then US Secretary of State Mike Pompeo went as far as warning Israel in March 2019 that, until Tel Aviv re-evaluates its cooperation with China, America could reduce “intelligence sharing and co-location of security facilities.”
Appreciating fully China’s current and potential global power, Israel has laboured to find a balance that would allow it to maintain its “special relationship” with the US, while financially and strategically benefiting from its closeness to Beijing. Israel’s balancing act has encouraged China to translate its growing economic relationship with the Middle East into a political and diplomatic investment as well.
For example, in 2017, China put into motion a peace plan — formulated initially in 2013 — called the Four-Point Proposal. The plan offered Chinese mediation as a substitute for US bias and, ultimately, the failed “peace process”. The Palestinian leadership welcomed China’s involvement, while Israel refused to engage, causing embarrassment to a government that insists on respect and recognition of its rising importance in every arena.
If balancing acts in geopolitics were possible back then, the Russia-Ukraine war has brought it all to a sudden end. The new geopolitical reality can be expressed in the words of former Italian diplomat Stefano Stefanini. The former ambassador to NATO wrote in an article in La Stampa that the “international balancing act is over” and “there are no safety nets.” Ironically, Stefanini made this point in reference to Italy’s need to choose between the West and China. The same logic can also be applied to Israel and China.
Soon after China succeeded in brokering a landmark deal between Saudi Arabia and Iran on 6 April, it again floated the idea of mediating between Palestine and Israel. China’s new Foreign Minister, Qin Gang, reportedly consulted with both sides on “steps to resume peace talks”. Yet again, the Palestinians accepted while Israel ignored the subject.
This partly explains China’s frustration with Israel, and also with the US. As China’s former ambassador to Washington (2021-23), Qin must be familiar with the inherent US bias towards Israel. This was expressed succinctly by Chinese Foreign Ministry spokesman Hua Chunying during the latest Israeli war on Gaza: “The United States should realise that the lives of Palestinian Muslims are equally precious,” he said on 14 May.
A simple analysis of China’s language regarding the situation in Palestine clarifies that Beijing sees a direct link between the US and the continued conflict; or at the very least the failure to find a just solution. This assertion can also be gleaned from Ambassador Geng’s most recent Security Council remarks, where he criticised “piecemeal crisis management”, a direct reference to US diplomacy in the Middle East, while offering a Chinese alternative based on a “comprehensive and just solution”.
Equally important is that the Chinese position seems to be linked intrinsically to that of Arab countries. The more that Palestine takes centre stage in Arab political discourse, the greater emphasis the issue receives in China’s foreign policy agenda.
In the recent Arab Summit held in Jeddah, Arab governments agreed to prioritise Palestine as the central Arab cause. Allies with great and growing economic interests in the region, such as China, took notice immediately.
All of this must not suggest that China will be severing its ties with Israel. However, it certainly indicates that Beijing remains committed to its principled stance on Palestine, as it has been over the decades.
The relationship between China and Israel will soon face the litmus test of US pressure and ultimatums. Considering Washington’s unparalleled importance to Israel on the one hand, and the Arab-Muslim world’s significance to China on the other, the future is easy to foresee. Nevertheless, judging by China’s political discourse on Palestine — situated solidly within international and humanitarian law — it seems that Beijing has already decided what to do.
Saudi Arabia set to join BRICS’ New Development Bank
By Ahmed Adel | May 31, 2023
The strengthening of ties between the BRICS bank and Saudi Arabia, the world’s second-largest oil producer, is undesirable for the West as it again signals another advancement in the de-dollarisation of the global economy. In the last week of May, Saudi Arabia held talks to join BRICS’ New Development Bank as its ninth member, a decision that is not only economic but also with political motive.
Saudi Arabia’s benefit from joining the NDB is clear, given the potential for increased trade, especially Saudi exports. The Kingdom of Saudi Arabia is one of the world’s largest oil suppliers, and BRICS countries produce many different goods. Therefore, such cooperation can be considered mutually beneficial. Saudi membership in the NDB will expand the internal market of the BRICS countries, which means opening new opportunities for economic development in these countries.
As Bloomberg reported on May 30: “The New Development Bank, the lender created by the BRICS group of nations, will widen its membership as it seeks to boost its capital and counter the influence of Western-dominated multilateral banks.”
Saudi Arabia is the biggest economy in the region, and its neighbour, the United Arab Emirates (UAE), is already a member of the NDB. At the same time, Saudi Arabia has also expressed interest in joining BRICS. The BRICS summit in South Africa in August will discuss expanding the grouping, which could open the path for the Arab country to join.
“In the Middle East, we attach great importance to the Kingdom of Saudi Arabia and are currently engaged in a qualified dialogue with them,” the NDB told the Financial Times in a statement.
Talks with Saudi Arabia come as the NDB prepares to formally evaluate its funding options, which were questioned after the West imposed sanctions on Russia following the launch of its special military operation in Ukraine.
Membership will likely be granted as it would strengthen Saudi Arabia’s bonds with BRICS countries, especially when the country is pursuing closer relations with all powers, particularly China. Chinese President Xi Jinping hailed a “new era” in the countries’ ties when he visited Saudi Arabia in 2022. Most importantly, Beijing in March brokered a historic agreement between Saudi Arabia and Iran to resume diplomatic relations, something which irked Washington.
The NDB has lent $33 billion to more than 96 projects in the five founding members — Brazil, Russia, India, China, and South Africa — but the bank has expanded its membership to include the United Arab Emirates, Egypt, and Bangladesh. Although Egypt and Bangladesh represent major emerging markets and economies, Saudi Arabia, like the UAE, would represent another rich shareholder in the NDB.
“[Fundraising options are] the most important thing at the moment,” said Ashwani Muthoo, director-general of the NDB’s independent evaluation office, which was established last year.
Muthoo declined to comment on the Saudi accession talks but said the board wanted to examine alternative instruments and currencies to bring in resources, something that Saudi Arabia can offer.
It is recalled that Mikhail Mishustin said on a visit to China in May that Moscow saw “one of the bank’s main goals” as defending the bloc from “illegitimate sanctions from the collective West”. This fact interests Saudi Arabia as it breaks from servitude to the US to become a sovereign Middle/Regional power instead.
It is recalled that China’s Foreign Ministry Spokesperson Wang Wenbin said in October 2022 that BRICS leaders agreed on expanding the bloc and expressed support for the discussion on the standards and procedures of expansion. Wang also noted that China would work with other BRICS members to jointly advance the expansion process so that more partners will join the BRICS family.
By being first accepted into the NDB, Saudi Arabia’s path to joining BRICS would be opened. As said, Saudi Arabia will likely join the NDB as the banks have a strong will to expand their membership, which will signal the Arab country’s eventual accession into the bloc.
Dilma Rousseff, the bank’s president, said at the NDB’s annual meeting in Shanghai on May 30, “The world is going through a transformation process and it’s not about one currency against any another one. NDB will continue seeking funds in the dollar market but also in the Asian market.”
The fact that the NDB is comprised of the most powerful and richest countries outside of the Western bloc has Washington concerned as it poses the greatest challenge to dollar hegemony. With the current level of the NDB project funding in local currencies at 22%, the bank is well on course to meet its goal of 30% by 2026. This percentage will only continue to grow as the years pass, and the addition of Saudi Arabia will contribute to this effort. Thus, the Middle Eastern country will actively participate in de-dollarisation.
Ahmed Adel is a Cairo-based geopolitics and political economy researcher.
