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Hungary Demands Explanations From Ukraine, Brussels Over Druzhba Pipeline

Sputnik – 21.05.2023

BUDAPEST – Hungary is waiting for explanations from Ukraine and European Commission President Ursula von der Leyen concerning reports on a possible stop of oil supplies from Russia to the European Union via the Druzhba pipeline, Hungarian Foreign Minister Peter Szijjarto said.

Last week, media reported that von der Leyen had offered Ukrainian President Volodymyr Zelensky to suspend the Druzhba pipeline, which transits Russian oil to Hungary among other EU countries, as part of the 11th package of sanctions against Moscow. A British business newspaper later reported that the EU was considering expanding Russian oil embargo by cutting transit through Druzhba, adding that the European Commission refused to provide any comments.

“We have received no explanations concerning this from Kiev. I think this is an issue of such importance that the European Commission’s president should personally present explanations as energy security is a question of sovereignty,” Szijjarto told a Hungarian radio station.

If someone attempts to make a secure energy supply impossible for a country, it can be considered an infringement on the country’s sovereignty, he explained.

International treaties guarantee Hungary transit oil supplies from Ukraine, the minister said, going on to accuse Ukraine and Croatia of taking advantage of conflict to raise the transit fee by five to six times.

May 22, 2023 Posted by | Economics | , , | Leave a comment

Railway of Resistance: A grand project to connect Iran, Iraq, Syria

By Mohamad Hasan Sweidan | The Cradle | May 19 2023

Sir Halford John Mackinder, one of Britain’s most prominent theorists in the field of geopolitics, discusses the significance of land connectivity between nations in his 1904 essay called The Geographical Pivot of History.

Besides introducing his notable Heartland Theory, Mackinder argued that advancements in transportation technology, such as the development of railways, have altered the balance of power in international politics by enabling a powerful state or group of states to expand its influence along transport routes.

The establishment of blocs, like the EU or BRICS, for instance, aims to enhance communication between member states. This objective has positive implications for the economy and helps reduce the risk of tensions among them.

The cost of such tensions has increased considerably, given the growing benefits and common interests achieved through strengthened ties between nations. Consequently, reinforcing connections within a specific region has a positive impact on the entire area.

Therefore, any infrastructure project between countries cannot be viewed solely from an economic standpoint; its geopolitical effects must also be highlighted.

West Asia connected by railway

In July 2018, Saeed Rasouli, head of the Islamic Republic of Iran Railways (RAI), announced the country’s intention to construct a railway line connecting the Persian Gulf to the Mediterranean Sea, the Iran-Iraq-Syria railway link. This ambitious project would run from Basra in southern Iraq to Albu Kamal on the Iraqi-Syrian border and then extend to Deir Ezzor in northeastern Syria.

Undoubtedly, this project strengthens communication between the countries of West Asia and increases the need for other powers to collaborate with this important region, which is strategically located in parts of Mackinder’s “Heartland” and Nicholas Spykman’s “Rimland” of Eurasia.

Moreover, in accordance with Mackinder’s proposition, it can be argued that this railway project holds geopolitical significance for the three involved countries – Iran, Iraq, and Syria – and for West Asia as a whole.

The concept of a railway link between Iran and Iraq emerged over a decade ago. In 2011, Iran completed the 17-kilometer Khorramshahr-Shalamjah railway, which aimed to connect Iran’s railways to the city of Basra. Subsequently, in 2014, a memorandum of understanding (MoU) was signed between Tehran and Baghdad to construct the Shalamjah-Basra line.

As per the agreement, Iran was responsible for designing and building a bridge over the Arvand River, while the Iraqi side pledged to construct a 32-kilometer railway line from the Shalamjah border to the Basra railway station within Iraqi territory.

Final destination: Syria

On 14 August, 2018, Iran announced its intention to further extend the railway from its territory to Syria, with Iraq’s participation. This move aimed to counter western sanctions and enhance economic cooperation.

The railway project would begin at the Imam Khomeini port on the Persian Gulf, located in Iran’s southwestern Khuzestan province, to the Shalamjah crossing on the Iraqi border. From there, the railway traverses through the Iraqi province of Basra, crossing Albu Kamal on the Syrian border and ending at the Mediterranean port of Latakia.

Iranian official sources stated that this railway would contribute to Syria’s reconstruction efforts, bolster the transport sector, and facilitate religious tourism between Iran, Iraq, and Syria. Iran would bear the costs of the project within its own territory, while Iraq would contribute its share up to the Syrian border.

During the visit of former Iranian President Hassan Rouhani to Iraq in March 2019, a memorandum of understanding on the project was signed between Tehran and Baghdad. However, despite the agreements, the Iraqi side has faced economic challenges and a lack of funds, resulting in a delay in the construction of the railway.

Proposed railway links between Iran, Iraq, and Syria

Three Sections

The railway project can be divided into three sections: The first section links the Imam Khomeini Port to the Shalamjah crossing on the Iraqi border. According to the Iranian Minister of Roads and Urban Development Mehrdad Bazrpash, the railway line in Iran has been completed and has reached the zero border point.

The second section will link the Shalamjah Crossing to Basra in southern Iraq, then extend to Baghdad, Anbar province, and finally, the Syrian border. The financing of this section, according to the agreement, falls under the responsibility of the Iraqi government. The commencement of this phase is expected soon.

The third section, within Syria, encompasses two routes: The northern route extends between Iraq’s al-Qaim and Syria’s Albu Kamal, then heads west towards the Syrian port of Latakia. The southern route runs from the al-Qaim crossing on the Iraqi-Syrian border to Damascus via Homs.

It should be noted that although the shortest route to Damascus is through al-Tanf, due to the presence of the illegal US occupation forces there, the longer Homs-Damascus corridor was adopted. This also ensures the passage of railways through a greater number of Syrian cities.

Economic significance

Although the rail line between Iran and Iraq will only span 32 km and cost approximately $120 million, divided equally, its significance extends far beyond its length. It will serve as the sole railway connection between the two countries and play a crucial role in improving communication throughout the wider region by linking China’s Belt and Road Initative (BRI) lines to Iraq via Iran.

Once completed, the project will enable Iraq to easily connect to Iran’s extensive railway network, which extends to Iran’s eastern border. This linkage will open pathways for Baghdad to connect with Afghanistan, Pakistan, China, the Caucasus, Central Asia, and the Far East.

Moreover, in the future, the project positions Iraq as a transit route for trade between the Arab countries of the Persian Gulf region and Central Asia, as well as Russia. Incidentally, Iran and Russia have just inked an agreement to establish a railway connecting the Iranian cities of Astara with Rasht, as part of the International North–South Transport Corridor (INSTC).

The railway line also contributes to the promotion of religious tourism among the three countries, which are home to several important Shia shrines. In September 2022, more than 21 million people from around the world, including 3 million Iranians, visited Iraq for the annual Arbaeen pilgrimage in the holy city of Karbala. This figure is likely to increase significantly with a rail link, leading to increased revenues for the Iraqi treasury.

Furthermore, the project serves as a means to bypass western sanctions and external pressures on the three countries, particularly Iran and Syria. It strengthens the independence of these nations and reduces the likelihood of foreign powers interfering in the economic relations of the project countries.

Obstacles to project implementation

Despite the signed agreements, the Tehran-Baghdad-Damascus railway project has faced mixed reactions in Iraq, leading to a lack of enthusiasm for moving forward with the rail link. Only last month, the Ministry of Transport issued a clarification regarding its rail link with Iran, stressing that the project is related to “passenger transportation only.”

Iraqi politicians have expressed concerns that the rail link with Iran could hinder their country’s Dry Canal project, which aims to connect the port of Faw in Basra province to the Turkish and Syrian borders.

They believe that the Grand Faw Port is strategically positioned as the closest point for sea cargo to Europe, potentially bringing economic benefits and employment opportunities. These concerns arise from the fear that the Imam Khomeini port in Iran could gain increased importance, diminishing the significance of the Faw Port.

But Iraqi concerns actually present an opportunity to link Iran to the Dry Canal, enhancing the strategic importance of both projects and bolstering Iraq’s position as a regional trading hub. In the near future, communication and cooperation between these neighbors will be crucial in thwarting external efforts to impede the economic interdependence of the three countries.

A promising journey

The tripartite railway link project holds immense significance as it connects these countries within a larger network, resembling the historical Silk Road that facilitated trade between the east and the west for centuries.

The railway project has the ability to initiate a major transformation in West Asia if it materializes and expands further afield to countries like Saudi Arabia, Jordan, and Lebanon.

Their participation would not only reduce tensions among regional states but also yield positive economic outcomes and bolster tourism, particularly religious tourism, and foster stronger inter-regional ties.

By connecting key players in a geopolitically strategic region, the Tehran-Baghdad-Damascus rail link has the potential to lay the foundation for a new West Asian paradigm that promotes connectivity, stability, and prosperity.

As seen by the recent Iran-Saudi and Syria-Saudi rapprochement agreements, the region is in a collaborative mood, actively seeking economic development instead of conflict. With China and Russia – two powers at the forefront of Eurasia’s biggest interconnectivity projects (BRI and INSTC) – brokering and impacting many of these diplomatic initiatives, expect railways, roads, and waterways to begin linking countries that have been at odds for decades.

May 19, 2023 Posted by | Economics | , , | Leave a comment

Second largest Swedish party wants Stockholm to prepare for ‘Swexit’

By Drago Bosnic | May 19, 2023

As if the European Union didn’t have enough major problems already, now the troubled bloc is faced with the nontrivial prospect of a “Swexit”. Namely, senior officials of the second largest political party in the Scandinavian country, the Sweden Democrats, are now openly saying that their country needs to be prepared to leave the EU. This includes the party leader himself, Per Jimmie Akesson, who stated that “only by making the necessary preparations for ‘Swexit’ can the government maximize its bargaining power in Brussels”. The right-wing Sweden Democrats have long been frustrated by the power that the unelected bureaucrats in Brussels wield over their country, so this is hardly a surprising development.

However, even Eurosceptic Swedish parties usually refrain from such open anti-EU declarations, meaning that the bloc is gradually losing its power, even in previously somewhat pro-EU member states. On May 15, Akesson authored an article along with his Sweden Democrats fellow member Charlie Weimers, who also represents his party and his country as a Member of the European Parliament (MEP). The op-ed was published by the Stockholm-based Svenska Dagbladet daily, in which the authors explicitly stated that their intention is to ensure Sweden “maximizes its influence” in the EU, specifying several legal measures the country’s government must take to accomplish the stated goals.

First, the Swedish government must insist on making constitutional changes that would make it possible to introduce what Akesson and Weimers called a “referendum lock”. According to the authors’ reasoning, this would enshrine into law the requirement of a nationwide referendum before any further national powers can be renounced by Sweden and transferred to the unelected EU bureaucrats. The goal is to ensure that any further erosion of the Scandinavian country’s sovereignty is prevented if the Swedish people choose not to comply with it. The authors cited the examples of the United Kingdom and Denmark as an inspiration, as both London and Copenhagen previously adopted similar legal mechanisms.

“Only the knowledge that every decision on the transfer of power must be submitted to the citizens would slow down the worst abuses from Brussels,” Akesson and Weimers wrote in the op-ed.

Second, the country’s government must make the necessary preparations to leave the EU, as the troubled bloc should not take Sweden’s national interests for granted. The authors insist that the government must ensure it’s ready in case such a decision is ever made by the Swedish people and to formally legitimize any threat to withdraw from the EU in future negotiations with the troubled bloc. They further added that to accomplish this, Sweden needs to remove the clause that it’s an EU member from its constitution, as well as study the example of the UK during Brexit, while also training civil servants to ensure the process runs without any major issues. As previously mentioned, Akesson and Weimers see this as instrumental for improving the country’s negotiating position.

“In order for preparedness to be credible, it’s necessary that we remove the writings in the constitution that state that Sweden is a member of the EU … In addition, we should train a cadre of civil servants with the expertise to negotiate trade agreements and other things that we have delegated to the EU and study how Brexit could have been implemented better. The better we are prepared to leave, the more we will gain in future negotiations,” the authors added.

Akesson and Weimers believe these are the bare minimum requirements that will provide a solid backstop against any possible power-grab attempts by Brussels. In addition, the leader of the Sweden Democrats also wants an investigation to be launched into how the negative aspects of the Scandinavian country’s membership in the EU can be alleviated. Among other things, this also includes the issue of immigration, a major problem that the Sweden Democrats see as crucial for the country’s future. The right-wing party is the largest member of the country’s governing bloc, providing virtually all of its confidence-and-supply votes in the Riksdag (Swedish Parliament), although the Sweden Democrats are not directly taking part in Prime Minister Ulf Kristersson’s administration.

As per the Tidö Agreement to which all coalition parties agreed, Stockholm is to adopt a more restrictive immigration policy in return for support of the Sweden Democrats, something the more liberal-leftist opposition, informally supported by Brussels, staunchly disagrees with. And while Euroscepticism is still not the view of the majority of the Swedish electorate, it has steadily been growing in recent years, particularly as the disastrous policies supported by the EU have drastically eroded the well-being of the Scandinavian country’s citizens. Although Akesson himself acknowledges the fact that the majority still doesn’t support Sweden’s withdrawal from the EU (which has been the long-standing policy of his party), he certainly wants to capitalize on the growing support it’s been getting.

Drago Bosnic is an independent geopolitical and military analyst.

May 19, 2023 Posted by | Civil Liberties, Economics | , | Leave a comment

The climate scaremongers: How to lose a lot of money – buy an electric car

By Paul Homewood | TCW Defending Freedom | May 19, 2023

New analysis shows that electric cars (EVs) are depreciating at twice the rate of petrol cars. According to the Express :

‘EVs on average will lose 51 per cent of their purchase value from 2020 to 2023, compared with just 37 per cent for petrol vehicles. This equates to a massive £15,220 loss for electric car owners, with petrol drivers seeing a decrease of £9,901.

‘The data, from ChooseMyCar.com, used a comparison of new car prices three years ago compared with their value now.

‘The higher the original purchase price of the car, the bigger the loss, with the Tesla Model S losing £25,000 in value in just three years – a 46 per cent drop. However, entry-level EVs like the Nissan Leaf are also losing a massive amount of value in such a short space of time. The Leaf’s value dropped by £13,000 – or 58 per cent – despite being one of the most popular small EVs on the market.’

There are three factors in play here. Firstly the battery life for an EV, typically around 100,000 miles, means that the car is virtually worthless once it gets to around 80,000 miles. Nobody is going to pay thousands for a car which will end up in the scrapyard a year or so later. This depreciation works its way up the chain. For instance, if you buy a petrol car with 50,000 miles on the clock, you expect to still get a reasonable trade-in three years later.

Secondly, whilst new EVs are attractive for companies and green virtue signallers thanks to government subsidies, there is very little demand for them amongst the public at large. People buy second-hand cars for a very good reason – they cannot afford new models. Consequently they cannot afford to pay a surcharge for a second-hand EV, even if they want one.

Thirdly, increasing numbers of EVs are appearing on the second-hand market, reflecting the surge in new sales in recent years. As demand has not increased, this is also forcing the price down.

The prospect of losing so much money in depreciation will inevitably make drivers think twice before buying a new one.

Meanwhile a US study has found that EVs may not reduce emissions of carbon dioxide as much as thought – indeed they may even increase emissions. According to the report:

‘the relevant and surprising emissions wildcard comes from the gargantuan, energy-hungry processes needed to make EV batteries. To match the energy stored in one pound of oil requires 15 pounds of lithium battery, which in turn entails digging up about 7,000 pounds of rock and dirt to get the minerals needed – lithium, graphite, copper, nickel, aluminum, zinc, neodymium, manganese and so on. Thus, fabricating a typical single half-ton EV battery requires mining and processing about 250 tons of materials.’

The fact that much of this mining and processing takes place in China, where energy is nearly all derived from fossil fuels, makes the carbon footprint even larger. Other studies have suggested that an EV will break even at about 60,000 miles as far as emissions are concerned. This new study implies that the situation is probably worse.

And as some of us have been warning for years, the UK and EU rush to phase out petrol/diesel cars is beginning to cause real harm to the European car industry. Whereas Europe has long had an unassailable technological lead over China in car manufacturing, EVs have introduced a level playing field which China is now exploiting through its lower energy and labour costs, along with its near–monopoly of the battery market.

As a consequence, Chinese EVs are flooding the German market. Official statistics have revealed that 28.2 per cent of the electric vehicles imported into the country during the January-March period originated from China. This figure demonstrates a substantial rise from the 7.8 per cent recorded over the same period in 2022, highlighting China’s expanding influence in the global adoption of EVs. If this was not bad enough, the data also reveals a decline of 23.9 per cent in German exports of new vehicles to China compared with the same quarter of the previous year.

Unsurprisingly, then, a major study by Allianz Trade, part of the European insurance giant, says that China’s growing share of the EV market in its home market and the EU will see the European car industry shrink by €24billion a year and associated supply chain industries shrink by an additional €21billion.

It is not only Chinese inroads into Europe which are in play here; another nail in the European motor car industry’s coffin is the fact that the enforced switch to EVs will force millions out of their cars completely, because they are simply not fit for purpose for many drivers.

Indeed it is becoming increasingly clear, with ULEZ zones, 15-minute cities and so on, that the real objective of European governments, including our own, is drastically to reduce the numbers of cars on the road, cut the mileage driven and force us all on to buses, bikes and Shanks’s pony.

They do not seem to care that they will destroy a major industry and millions of jobs as a direct consequence. – Full article

May 18, 2023 Posted by | Economics, Malthusian Ideology, Phony Scarcity | , , | Leave a comment

What If AI Is Only a Cost and Not a Profit Bonanza?

In the real-world, the costs are all we know for sure and profits remain elusive and contingent.

BY CHARLES HUGH SMITH | OF TWO MINDS | MAY 15, 2023

No one knows how the flood of AI products will play out, but we do know it’s unleashed a corporate frenzy to “get our own AI up and running.” Corporate fads are one of the least discussed but most obvious dynamics in the economy. Corporations follow fads as avidly as any other heedless consumer, rushing headlong into whatever everyone else is doing.

Globalization is a recent example. Back in the early 2000s, I sat next to corporate employees on flights to China and other Asian destinations who described the travails and costly disasters created by their employers’ mad rush to move production overseas: quality control cratered, proprietary technologies were stolen and quickly copied, costs soared rather than declined, and so on.

So let’s talk about costs of AI rather than just the benefits. Like many other heavily-hyped technologies, Large Language Model (LLM) AI is presented as stand-alone and “free.” But it’s actually not stand-alone or free: it requires an army of humans toiling away to make it functional: “We Are Grunt Workers”: The Lowly Humans Helping Run ChatGPT Make Just $15 Per Hour (Zero Hedge ).

“We are grunt workers, but there would be no AI language systems without it. You can design all the neural networks you want, you can get all the researchers involved you want, but without labelers, you have no ChatGPT. You have nothing.”

The tasks performed by this hidden army of human workers is euphemistically sanitized by corporate-speak as data enrichment work.

Then there’s the stupendous costs of all the extra computing power needed to deliver AI to the masses: For tech giants, AI like Bing and Bard poses billion-dollar search problem

What makes this form of AI pricier than conventional search is the computing power involved. Such AI depends on billions of dollars of chips, a cost that has to be spread out over their useful life of several years, analysts said. Electricity likewise adds costs and pressure to companies with carbon-footprint goals.

Corporations are counting on the magic of the Waste Is Growth / Landfill Economy to generate higher margins from whatever AI touches — don’t ask, it’s magic — but few ask how all this magic will work in a global recession where consumers will have less income and credit to buy, buy, buy.

LLM-AI is riddled with errors, and nobody can tell what’s semi-accurate, what’s misleading and what’s flat-out wrong. Despite wildly optimistic claims, locating the errors and semi-accuracies can’t be fully automated. Errors are inconsequential in an AI-generated book report, but when patients’ health is on the line, they become very consequential: I’m an ER doctor: Here’s what I found when I asked ChatGPT to diagnose my patients.

This raises fundamental questions about precisely how much work LLM-AI can perform without human oversight, and the all-too breezy claims that tens of millions of jobs will be lost as this iteration of AI automates vast swaths of human labor.

AI excels at echo-chamber reinforcement of risky or error-prone suppositions and policies: Spirals of Delusion: How AI Distorts Decision-Making and Makes Dictators More Dangerous. What’s the threshold for concern that the AI conclusions are riskier than presented? How do we calculate the possibilities that the AI conclusions are catastrophically misguided?

At what point will decision-makers realize that trusting AI is not worth the risk? If history is any guide, that realization will only arise from financial losses and bad decisions. For the rest of us, it might just be the novelty wears off as the inadequacies pile up: Noam Chomsky: The False Promise of ChatGPT.

Since all this LLM-AI is “free,” what AI-created goods and services will generate hundreds of billions of dollars in new revenues and tens of billions in new profits? The general answer is the profits will flow from firing millions of costly humans and replacing them with “nearly free” AI software.

But since all your competitors are rushing down the same frenzied path to AI, what competitive advantage will accrue to what is already a commodity (LLM-AI)? Nobody asks such questions because the euphoria of tech revolutions is so much fun.

The enthusiasm unleashed by new technologies is selectively euphoric: the benefits will prove immeasurable and the costs will soon be near-zero. But in the real-world, the costs are all we know for sure and profits remain elusive and contingent.

Exactly what gets wiped out by the meteor strike is not yet known.

May 18, 2023 Posted by | Economics | Leave a comment

‘Voter anger over Erdogan’s interference in Syria, war fallout, cost him dearly: Analyst

Press TV – May 17, 2023

A Lebanese political expert says incumbent Turkish President Recep Tayyip Erdogan failed to get the support of people in urban areas in the recent election mainly due to his interference in Syria and the fallout of his intervention in the war.

In an interview with the Press TV website, Nasser Qandil, editor-in-chief of Lebanon’s al-Binaa newspaper, noted that most of the youths in cities did not vote for Erdogan – who has been at the pinnacle of Turkish politics for more than two decades – with the slogan “20 years is enough.”

“The issue of Syrian refugees and Erdogan’s role in the Syrian war was among the reasons behind the decrease in his votes in cities,” he said.

“This is while his rival has promised to transfer refugees to their country within two years and deport them if necessary.”

Erdogan gained 49.5 percent of the vote in Sunday’s presidential race compared to 44.9 percent for his challenger, Kemal Kilicdaroglu.

As neither candidate reached the 50 percent threshold needed to win outright, a runoff vote will take place on May 28.

Erdogan took home fewer votes in 2023 than he did in the 2018 presidential contest.

Qandil said that in the second round of the election, Erdogan will face challenges such as heavy economic and social costs of Syrian refugees residing in Turkey, the growing unemployment rate, the rent surge, and the rising competition between Turkish and Syrian workers.

“With the support of Russia, Iran and Persian Gulf states, Erdogan can draw a two-year framework for the Turkish withdrawal from Syria, the return of refugees, and the dispersal of terrorists from Syria’s northeast and northwest,” he said.

“The second round may give better opportunities to Erdogan’s rival, unless he bravely plays his trump card and voices readiness to formulate a timetable for the return of Syrian refugees.”

For more than a decade, Turkey has backed militants fighting against the government of Syrian President Bashar al-Assad, and sent its own troops into the Arab country’s northern areas.

In recent months, however, the strategically-located US-led NATO member has taken steps to normalize relations with Syria.

Also in his interview, the Lebanese political analyst compared Erdogan with Kilicdaroglu, saying the incumbent president represents a political religion close to the West, while the latter acts for the Western-oriented and anti-religious secular movement.

Regarding international developments, he argued that Erdogan tends to pay attention to political and economic partnerships, but his rival wants Turkey to play a regional role without being drawn into war and expansionism.

Qandil further emphasized that Erdogan has managed to build a national economy while Kilicdaroglu, with a tendency towards the US, seeks to realize liberalism, eliminate the government’s role in the economy, and legalize homosexuality.

Unlike large cities, suburbs favored Erdogan as they supported an Islamic national identity aligned with the region and were unhappy with Europe’s racist approach towards Turkey’s EU accession bid, he said.

May 17, 2023 Posted by | Economics, Militarism | | Leave a comment

Ukraine aid — and US stockpiles — are running out. What’s next?

By Kelley Beaucar Vlahos | Responsible Statecraft | May 17, 2023

There might be a massive new Ukraine aid budget debate on the horizon, as Uncle Sam is depleting the last one at a record pace and Pentagon stockpiles are, by all accounts, running low.

According to a new report by Defense One, some $36.4 billion of the $48.9 billion allocated for Ukraine-related military aid since February 2022 has been delivered, contracted, or “otherwise committed.” There is only $11.3 billion left, and it will “run out in four months.”

The most recent allocation ($1.2 billion last week) came under the U.S. Security Assistance Initiative, which means the additional air defense systems, artillery rounds, and ammunition that have been promised will be farmed out to U.S. defense contractors and won’t be ready for shipment right away. Alternatively, aid has come via the Presidential Drawdown Authority, which sends Ukraine weapons directly from the Pentagon’s stockpiles. According to the Department of Defense, there have been 37 such drawdowns totaling over $21 billion in weapons and supplies since August 2021 when the U.S. first responded to Russian forces massing along the border with Ukraine.

But now reports indicate that American stockpiles of HIMARS, Javelins, Stinger missiles, and 155 mm artillery rounds have been shrinking since late last year, and arms manufacturers are now scrambling to keep up.

This has led the U.S. to go out on an ammo-raising spree, gathering pledges from allies and partners. Some, like South Korea, have resisted but found a way to comply. According to the Wall Street Journal, Washington has sent Ukraine more than one million rounds of 155 mm caliber ammunition, and allies and partners have contributed more on top of that. Moreover, NATO and European partners are being pressed to send whatever they have from their own stockpiles for Ukraine’s anticipated counteroffensive.

So where does this leave us? It would seem that defense contractors need additional money and capacity to backfill the stores. Without more, Ukraine with be under-supplied for both its counteroffensive and whatever follows it. Meanwhile, American stockpiles are waning, which hurts readiness.

One congressional aide “who closely tracks the issue” told POLITICO this week that the money to draw down existing U.S. stockpiles will expire in July. According to the report, which speculated when and how big the next aid package will be, “that would mean the flow of equipment could be disrupted if Kyiv has to wait an extended period for a new tranche of funding.” Would it be included in the appropriations process, or a supplemental? “I expect there will need to be a supplemental at some point,” Senator Susan Collins (R-Maine) told POLITICO. “It’s also clear that it’s taken far too long to get munitions and tanks delivered to the Ukrainians.”

But as Sam Skove points out in his Defense One report, there is the nagging issue of Republican members of Congress who have said they would not support another “blank check” to Ukraine and would expect not only greater oversight but also an articulation of a diplomatic strategy for ending the war before they would support another multi-billion-dollar package. Their position not only reflects a need for a full accounting for where the money is going, but also concern that the American economy right now cannot afford what has become the most expensive U.S.-war-that-is-not-a-U.S.-war in history.

In addition, Skove points out:

American public support for the war is also flagging. Both Democrat and Republican voters’ willingness to pay for the war has fallen, according to a recent poll by the Brookings Institution think tank. For example, the share of Democratic respondents willing to support Ukraine even if it meant higher energy prices at home dipped from 80% last October to 65% last month.

As the president ramps up for what should be a grueling 2024 re-election campaign, what happens on the battlefield in the next few months will no doubt signal how much more the U.S. will press on with such limitless assistance. There is certainly a constituency for continuing “for as long as it takes,” but it’s clear now that our stockpiles are not limitless, and neither is American patience, especially when their own economic security is at stake.

May 17, 2023 Posted by | Economics, Militarism | , | Leave a comment

West fueling Ukrainian financial woes – Moscow

RT | May 17, 2023

Western financial measures are leading Kiev into a sovereign debt crisis, with the burden expected to exceed Ukraine’s GDP by the end of the year, the Russian ambassador to the UN has warned.

“We will hear a lot today about the solidarity of the Western community with Ukraine, the readiness to support it ‘as long as it takes.’ However, it is necessary to understand that this support is taking Ukraine to the brink,” Vassily Nebenzia told the UN Security Council on Monday. “Its foreign debt surged to a record $132 billion, or 89% of GDP in 2022. It’s estimated that by the end of this year it will exceed 100%.”

The Russian envoy added that the “enormous funds allocated to Ukraine by the IMF, the EU, and the US are driving that country into a debt pit,” cautioning that “ordinary Ukrainians will have to repay the debts.”

Commenting on Kiev’s agreement with US financial company BlackRock to launch the Ukraine Development Fund, Nebenzia noted that the American firm will be in charge of managing the finances.

“What essentially is happening under the guise of attracting private investment for large-scale projects in key areas of the economy, is a transfer of state sovereignty to external corporate management of the world’s largest investment fund headquartered in New York,” the diplomat stated.

Ukrainian President Vladimir Zelensky has pushed Western leaders to provide more and more cash to sustain the economy and military. He previously told the World Bank and the International Monetary Fund that the country would need $55 billion in 2023 to cover the estimated budget deficit and rebuild critical infrastructure amid the conflict with Russia.

Ukraine has already deferred payments until 2024 on more than $20 billion of debt held by international investors. It is set for foreign debt restructuring next year, with G7 creditors claiming they would only extend their grace period for Ukrainian debt if private creditors agree. The nation’s budgetary shortfall is estimated to surpass $43 billion in 2023 alone.

May 17, 2023 Posted by | Economics | , , , | Leave a comment

Hungary outraged by leaked Ukrainian plans to blow up vital oil pipeline

Hungary’s energy security would take a major hit if Ukraine went through with a plan to destroy a key Russian pipeline

MANDINER | May 15, 2023

Hungarian media is abuzz with angry reactions after a leak obtained by The Washington Post revealed that Ukraine was planning to blow up the Druzhba oil pipeline that transports crude from Russia to Hungary.

According to the leaked documents, Ukrainian President Volodymyr Zelensky proposed at a February meeting with Deputy Prime Minister Yuliya Svyrydenko that Ukraine should blow up the pipeline in order to incapacitate the part of the Hungarian energy infrastructure reliant on Russian oil.

Government spokesman Zoltán Kovács reacted in a tweet with a short question: “How is it possible that Ukraine is plotting against a NATO country??”

Hungarian security analyst Péter Tarjányi said in a Facebook post that this would be a “very unfriendly, mistaken and stupid move.”

He added: “I understand that Ukraine does not like many Hungarian government actions and communications, but this does not justify such a plan or idea.”

Tarjányi then recalled that “on the one hand, Hungary has helped hundreds of thousands of Ukrainian refugees over the past 15 months, despite all the differences of opinion. We have to understand, our country sent aid, medicine AND!!! in the end voted for ALL sanctions against Russia.

He then pointed out that “in addition to this, and this is not a negligible FACT, Hungary is a NATO member, so such a plan makes no sense at all. This is a huge self-deception on the part of Ukraine, and Kyiv must explain itself very quickly. The main question is: Why did the Ukrainian president think that such a plan could be justified???? Why did he think he could risk NATO support by launching such an attack? I await further information on the matter.”

While the Russian invasion of Ukraine severely reduced Russian crude imports to the European Union, according to Eurostat data, last year Hungary imported 4.8 million tons of crude from Russia, 1.4 million more than in 2021.

The leak was part of a trove of military intelligence documents posted on a Discord server by 21-year-old Jack Teixeira, who served as an airman at a National Guard unit in Massachusetts. Teixeira was taken into custody over the leaks and faces substantial prison time if convicted.

May 16, 2023 Posted by | Economics, Militarism, War Crimes | , | Leave a comment

Ukraine war: The short view

BY M. K. BHADRAKUMAR | INDIAN PUNCHLINE | MAY 12, 2023 

Ukraine President Vladimir Zelensky has somewhat eased the suspense by his remark to the western media on Thursday that his army needs to wait and still needs “a bit more time” to launch the much-anticipated counter-offensive against Russian forces. 

He acknowledged that Ukraine’s combat brigades are “ready” but would reason that the army still needed “some things,” including armoured vehicles that were “arriving in batches” from NATO countries.

Zelensky proffered the explanation that “we can go forward, and, I think, be successful. But we’d lose a lot of people. I think that’s unacceptable. So we need to wait. We still need a bit more time.” 

However, Zelensky’s claim that Ukraine’s military still needed some equipment is at variance with the assertive statement by western officials. None other than NATO chief Jens Stoltenberg said a fortnight ago, one full week after returning from Kiev after talks with Zelensky and his top aides, that NATO deliveries constituted more than 98 percent of the combat vehicles promised to Ukraine. 

Stoltenberg added, “In total, we have trained and equipped more than nine new Ukrainian armoured brigades. This will put Ukraine in a strong position to continue to retake occupied territory.” 

Last Tuesday, US Secretary of State Antony Blinken broadly endorsed what Stoltenberg said, during a joint press conference with the visiting UK Foreign Secretary James Cleverly, while also taking care to add a caveat: 

“They (Ukrainian military) have in place … what they need to continue to be successful in regaining territory that was seized by force by Russia… It’s not only the weapons; it’s the training. It’s making sure that the Ukrainians can maintain the systems that we provide them, and it’s important, of course, that they have the right plans, again, to be successful.” 

Cleverly agreed with the drift of what Blinken said but gave a political perspective to it. That is perfectly acceptable, since this is a war that is more political than military. 

Cleverly said people shouldn’t expect a film-like counteroffensive from Kiev. He cautioned: “The real world doesn’t work like that. I hope and expect they will do very, very well, because whenever I’ve seen the Ukrainians, they have outperformed expectations… (but we) have to be realistic. This is the real world. This is not a Hollywood movie.” 

To be fair, Stoltenberg also had cautioned on a parallel track, saying that “we should never underestimate Russia.” He claimed that Russia was mobilising more ground forces and is “willing to send in thousands of troops with very high casualty rates.” 

Perhaps, the salience of what these three officials were harping on was that no matter the outcome of the planned Ukrainian offensive,  NATO countries “must stay the course and continue to provide Ukraine with what it needs to prevail” in the face of what appears to be a prolonged conflict. Indeed, both Blinken and Cleverly are in sync with what Stoltenberg said. 

In fact, even as the two foreign ministers spoke, on the same day, the US announced an additional $1.2 billion in aid to Ukraine intended to bolster air defences and keep up ammunition supplies. 

There is a lot of angst in recent weeks as to whether a Ukrainian counter-offensive is indeed in the pipeline. The answer is a categorical ‘yes’. As to its timing, it seems there could be a difference of opinion. 

Weather conditions are no longer an insurmountable factor and Zelensky’s western sponsors want him to get going with the offensive — the sooner the better. Their calculus is that the offensive has a reasonable chance of success, which would go a long way in placating the Western domestic opinion that such costly support for Ukraine was after all not going into a bottomless pit.

Second, the offensive is useful politically to shore up European opinion. In fact, the European Commission headed by its president (and an ardent Atlanticist), Ursula von der Leyen has just confirmed that the EU is preparing to take initial steps toward adopting methods of US sanctions and impose extraterritorial (collateral) punitive measures on enterprises of third countries including those in the United Arab Emirates and possibly in Turkey. 

It seems the EU will first focus on the resale of sanctioned EU goods to Russia. In future, enterprises will be punished even if they are not based within the EU and, therefore, are not subject to EU norms. 

Indeed, such extraterritorial implementation of one’s own system of norms will be in violation of international law — and the EU itself had officially held that position up until recently — but Von der Leyen is pushing for a revised “rules-based order” to add a new cutting edge to the western strategy to weaken Russia. 

The underlying assumption is that the sanctions will weaken the Russian economy and create social disaffection. It only goes to show that no matter the fate of Zelensky’s counter-offensive, there isn’t going to be any let-up in the proxy war against Russia. On the other hand, no one can blame President Biden for a Ukrainian defeat, either.

However, there is a catch: Zelensky also has his priorities — first and foremost, his own political survival. He knows that his narrative about an impending Russian defeat, et al, has unravelled and he may become the fall guy in any blame game in the aftermath of a crushing defeat in the crucial weeks or months ahead. 

Indeed, the Game of Thrones in Kiev is nearing a critical stage. Sensing danger, Zelensky is dithering. He is buying time. (General Valerii Fedorovych Zaluzhnyi, chief of Ukraine’s armed forces, skipped a NATO meeting!) But how long can Zelensky push back the mounting US and NATO pressure to launch the offensive? His exit strategy could have been to open a line to Moscow but that option no longer exists.

On its part, Russia is doing brilliantly well to keep its cards close to its chest. Russia has the capability to launch a “big arrow” offensive towards the Dnieper but Kremlin’s preference is to continue to grind down the Ukrainian military — a strategy that proved cost-effective in human and material terms, productive, and is sustainable. 

Depending on the trajectory of the Ukrainian offensive, therefore, Russia has the option to switch to a massive attack to pulverise the adversary. Presently, its heavy bombing campaign is intended to create shock and awe in Kiev and despondency in the European capitals, and to degrade Ukraine’s mobilisation. The West is kept guessing about the Russian intentions.   

May 13, 2023 Posted by | Economics, Militarism | , , , | Leave a comment

Historical anomaly of unipolarity has indisputably ended

By Andrew Korybko | Global Times | May 11, 2023

There’s a heated debate in the US nowadays about the future of global affairs. Some believe that what’s been described as their country’s unipolar moment is ending and giving way to multipolarity, while others believe that the US remains the world’s most comprehensively powerful country by far. Understanding the current state of international relations can provide policymakers with a clear and accurate picture of the world they are dealing with. This knowledge can help them make informed decisions and take appropriate actions. Americans first began worrying that their country’s predominant role was fading around the start of the Obama administration, which coincided with the 2008 financial crisis. For various reasons, some related to partisan opinions and others to compelling observations about the evolving world order, these concerns continued through the Trump administration and into the incumbent Biden one, but they were recently exacerbated by the start of conventional hostilities between Russia and Ukraine last year.

Several factors since then contributed to raising worldwide awareness of multipolarity, which simply refers to the system of international relations where there isn’t a hegemon like the US was after 1991 or aren’t two superpowers like there were from 1945 up until that year prior to the Soviet Union’s dissolution. Perhaps the most visible one concerns the documented fact that only a little more than three dozen countries joined the US in imposing sanctions against Russia and/or arming Ukraine.

The rest of the world remains neutral in practice despite most countries voting against Russia at the UN General Assembly, which in hindsight didn’t signal the change in policy toward Moscow that the US expected at the time. Some states might have been pressured to vote that way while others wanted to peacefully signal their disagreement with Russia for its military operations in Ukraine. Either way, the lack of any subsequently punitive consequences like those that the US demanded spoke volumes.

This observation is all the more impressive when remembering that many of these same neutral states are comparatively medium- and smaller-sized ones with economies that aren’t anywhere near as large as the US’. The importance in pointing this out is to show how surprising it is that the US couldn’t successfully pressure them into sanctioning Russia and/or arming Ukraine, which speaks to the very real limits of its influence nowadays.

China is already the top trade partner of practically every Global South country, which imbues them with the confidence to refuse the US’ political demands since their leaders believe that they could weather whatever sanctions it could threaten against them as punishment for their defiance. Meanwhile, India’s example of successfully resisting American pressure to sanction Russia and arm Ukraine despite its close ties with the US reassured other states that their own ties with it probably won’t suffer as a result either.

America has a track record of abusing developing countries in myriad ways, including through information warfare, political meddling, and strings-attached loans.

Many of these countries have become deeply resentful of the US after seeing how terribly it treated their beloved homeland, the sentiment of which their leaders sought to channel in strengthening their states’ strategic autonomy upon being given the chance to do so. The start of last year’s conventional Russia-Ukraine hostilities served as the perfect opportunity to do so in a way that would attract the rest of the world’s attention, inspired as they were by independent giants like China and India.

Besides,  the center of global economic gravity is shifting away from the Atlantic and toward the Asia-Pacific over the past few decades. This is directly due to the rise of those two aforementioned giants, but especially China, whose Belt and Road Initiative (BRI) investments helped the rest of the Global South rise as well in its wake. With economic strength comes political influence, and the BRICS countries of which China, India, and Russia are a part want to reform the world.

They rightly concluded that the US-led unipolar system only serves that hegemon’s interests. Such a system is dictatorial due to the US aggressively enforcing its so-called “rules” onto everyone else, unequal in the sense that the West’s economic rise is entirely due to exploiting the Global South, and unjust because international law is wantonly violated by the US. Accordingly, the BRICS are leveraging their economic strength to accelerate reforms aimed at making international relations more democratic, equal, and just.

All Global South states will benefit once the BRICS succeeds with this noble goal, though expectations should responsibly be tempered since it’ll still likely take a lot of time for them to institutionalize their envisaged changes. Nevertheless, the wide awareness of those countries’ selfless mission to humanity was another reason why all of the Global South defied the US at once since they wanted to signal their support for the emerging multipolar world order that’s rapidly replacing the unipolar one.

And finally, everyone apart from the most media-indoctrinated people in the West knows that the world was multipolar for ages, thus meaning that the prior unipolar period that began after 1991 with the Soviet Union’s dissolution is literally a historical anomaly. Never before was the whole world under the control of a single country, but this happened as a result of unique circumstances, not due to the US being “exceptional” like its leaders ridiculously claim.

With this in mind, the entire Global South has an interest in returning international relations to their normal multipolar model that was in place for centuries prior to three decades ago, which is but a very brief moment in terms of the historical spectrum. Their leaders saw that the opportunity to speed up the so-called “return of history” appeared last year with the start of conventional Russia-Ukraine hostilities, which unprecedentedly accelerated the global systemic transition back to multipolarity.

Returning back to the debate that was referenced in the introduction, those Americans who still believe that unipolarity exists therefore aren’t accounting for any of the factors shared in this analysis. Upon doing so, the honest ones among them will realize that this historical anomaly has indisputably ended and been replaced by multipolarity, thus restoring balance to international relations. The global systemic transition still continues, however, since the latest manifestation of multipolarity hasn’t yet fully formed.

The author is a Moscow-based American political analyst. This is the third piece of the “Quest for multipolarity” series. opinion@globaltimes.com.cn

May 13, 2023 Posted by | Economics | , , , | Leave a comment

Multipolarity is the future for the Arab world

By Ebrahim Hashem | Global Times | May 9, 2023

Until recently, some in the old world hoped that the Arab world would become hopeless and mired in forever chaos so that they could forever exploit it. However, considering the recent tectonic economic and geopolitical shifts, many are now starting to view the region differently.

While the Chinese, Indians, Russians, Africans, South Asians and many others already consider Arabs as a pole, some hegemonists in the West hubristically demand that the Arabs abandon their national interests and be subordinated to foreign powers. They are out of touch with reality; their mindset is still stuck in the 19th and 20th centuries. While the Arab leaders, supported by most Arab people, want to maintain strategic autonomy, and make the Arabs a pole in the current fluid world order, some in the West want to hijack Arab sovereignty and bring back their hegemony to the region.

Over the last 20 years, they have futilely tried to force the Arabs to give up their sovereignty and subordinate their strategic objectives to those of foreign powers. They misjudge Arabs’ pride in their identity and place in world history. They underestimate the strong desire and high aspirations of the Arabs to be an important player in the new world order. When dealing with the Arabs, they still use the outdated mental models of a bygone era.

Those who are covertly trying to subvert Arab societies and working against Arab unity and regional integration are not afraid of what the Arab world is today. They are terrified by the positive prospect of what the Arab world is becoming; they are intimidated by what the Arab world can become if the Arabs continue to successfully pursue and achieve their ambitious development plans. They narrow-mindedly think that a strong Arab world is bad for them and delusionally believe they can stop Arab progress.

Just as they consider China’s development and prosperity a problem for their position in the world, they consider the Arab world’s development and prosperity a problem for their regional and global position. This is something both the Arabs and Chinese recognize. However, the Chinese are more vocal than the Arabs in expressing their opposition to this myopic worldview. This is also one reason the Arabs and Chinese empathize with each other. They see the same forces, using different tactics and strategies, trying to disrupt their legitimate development.

It is too late now to stop the Arabs from developing and fulfilling their aspirations. The covert operations of the “Arab Spring” have failed miserably to achieve the Western agenda in the region. Instead, they have caused a sharp political reawakening among the Arabs. The Arabs’ rising agency and strengthening strategic independence in the current great power rivalry is proving that it is terribly hard for external factors to prevent the Arabs from achieving their rightful goals of development and prosperity.

The Arabs have what it takes to be an important player in the new emerging world. Their natural and human resources, geography, history, and civilization enable them to be an independent pole that can confidently deal with the rest of the world based on mutual respect and interest. With a population of more than 450 million – around 60 percent of whom are under the age of 25 – and a geographic area of over 13 million square kilometers, the Arabs would be ranked the 3rd and 2nd in the world, respectively. Most Arabs share the same religion, history, culture, and language.

The Arab world’s combined nominal GDP of around $3 trillion would make the Arabs among the top eight economies in the world. When measured in Purchasing Power Parity (PPP) terms, the combined economic output of the UAE, Saudi Arabia and Egypt alone would make them one of the top six global economies. The Arab world is in the center of global trade routes; it is the place where the three continents of Asia, Africa and Europe intersect. The Arabs administer some strategically important maritime trade chokepoints such as Bab Al-Mandab and Suez Canal, through which around 12 percent of global trade and approximately 30 percent of global container traffic pass.

Saudi Arabia is the world’s largest oil exporter and three other Arab countries, namely the UAE, Iraq and Kuwait, are constantly among the top oil producers in the world. The Arab region contains more than 40 percent of the world’s proven oil reserves and supplies more than 31 percent of importing countries’ oil needs. It has a quarter of the world’s proven reserves of gas and generates more than 15 percent of the world’s total gas production.

The world is already in a de facto multipolar state. While most nations accept this reality and try to make it work, some in the US, supported by a tiny group of peers in the West, still have the delusion of bringing back unipolarity and hegemony. This delusion is one reason why there are conflicts in the Middle East and the world today.

If the Arabs are serious about their intention to be a pole in the new multipolar world, they should never ever allow any power to have dominance in their region. Recent regional trends bode well for the Arabs. In addition to the traditional powers of the West, re-emerging and rising powers such as China, India and Russia are becoming important players in the region. Both China and Russia have confirmed their status as serious power brokers in the Middle East for their important contribution to Saudi-Iran reconciliation and Syria’s regional renormalization, respectively. Recently, the freeze on Syria’s Arab League membership has been lifted, adding impetus to the positive momentum that has been building up across the Arab world.

The Arabs have learnt some hard lessons over the last 20 years. To be a well-established pole in the increasingly multipolar world, the first step the Arabs should take is to diversify their sources of security – never ever rely on one partner or one bloc of partners for security. Moreover, drawing on the comparative advantages of various Arab countries, the Arabs must accelerate the process of building indigenous capabilities and expedite the implementation of regional integration initiatives. The new emerging world demands that Arabs join forces and rally behind this new vision. For the world order to be truly multipolar, the Arabs must coalesce and unite as one pole in it.

The author is former adviser to the chairman of the Abu Dhabi Executive Office, an authority responsible for Abu Dhabi’s long-term strategies, and former head of the strategy division of Abu Dhabi National Oil Company (ADNOC). He is a China-based strategist and Asia Global Fellow at the Asia Global Institute of the University of Hong Kong. This is the first piece of the “Quest for multipolarity” series. opinion@globaltimes.com.cn

May 12, 2023 Posted by | Economics, Timeless or most popular | , , | Leave a comment