Saudi Arabia calls out US bluster
BY M. K. BHADRAKUMAR | INDIAN PUNCHLINE | OCTOBER 14, 2022
Saudi Arabia has politely but firmly rebutted the threats and calumnies levelled by the US political elites in the past week since the OPEC decided to cut oil production by 2 million barrels per day. On Thursday, a Foreign Ministry official in Riyadh forcefully pushed back the allegation that the OPEC decision was at Saudi initiative and was politically motivated against the US, and, worse still, to help Russia.
The Saudi official rejected the US allegations as baseless, especially the imputation that Saudi Arabia is “aligning” with Russia in the context of the Ukraine situation. The official made three substantive points:
- The OPEC+ decision constitutes the unanimous opinion of the member states and it is preposterous to attribute it to Saudi Arabia.
- Purely economic considerations lie behind the decision, which takes into account the imperatives of maintaining balance of supply and demand in the oil market and limiting the volatility.
- Saudi Arabia has taken a principled stance on the Ukraine issue, as its votes supporting two UN resolutions testify.
The Saudi official, inter alia, made a startling disclosure that the Biden Administration had actually tried to get Riyadh to postpone the OPEC+ decision by a month. Presumably, the rage in Washington today is not so much about the oil prices as the panic that the OPEC decision casts on the US diplomacy and foreign policy in general — and, especially, on President Biden personally — in a poor light as ineffectual and illogical, as the Republicans are highlighting.
Conceivably, the one-month delay that was sought was intended to overlap the forthcoming midterms in the US on November 8. Unsurprisingly, the Saudis didn’t oblige the White House and it now becomes an unforgivable slight on the US’ sense of entitlement and Biden’s vanity.
Suffice it to say, the Democrats and the Biden Administration have worked themselves into a frenzy because of their fear that the price of gas can become a combustible issue that may spell doom at the midterms. Some Democrats have gone to the absurd extent of suspecting that the Saudis are deliberately interfering in the US politics to help the Republicans’ electoral prospects.
The Saudi statement has pointedly rejected “any dictates, actions, or efforts to distort its (Saudi) noble objectives to protect the global economy from oil market volatility.” It is a mild warning that any anti-Saudi moves will meet with resistance and will have repercussions.
The Saudi statements came within hours of an interview by Biden with the CNN on Thursday, where he warned that “There’s going to be some consequences for what they’ve (Saudis) done, with Russia. I’m not going to get into what I’d consider and what I have in mind. But there will be — there will be consequences.”
Later, John Kirby, a White House National Security Council spokesman, said Biden believes “it’s time to take another look at this relationship and make sure that it’s serving our national security interests.”
Biden himself was speaking a day after the influential Democratic senator from New Jersey Bob Menendez threatened to block cooperation with Saudi Arabia. He excoriated Saudi Arabia, accusing it of helping “underwrite Putin’s war through the OPEC+ cartel.” Menendez ripped into the kingdom, and went on to say that the US must “immediately freeze all aspects of our cooperation with Saudi Arabia, including any arms sales and security cooperation beyond what is absolutely necessary to defend US personnel and interests.”
In good measure, Menendez added an ultimatum that he would not “green-light any cooperation with Riyadh until the Kingdom reassesses its position with respect to the war in Ukraine. Enough is enough.”
Quite obviously, the White House’s strategy is to obfuscate the matter by making the OPEC+ decision a geopolitical challenge to the US strategies concerning Ukraine and Russia rather than as a historic rebuff to Biden’s clumsy personal diplomacy — which it is — to try to get Saudi Arabia on board his fanciful project to bring down the oil prices so that Russia’s income from oil exports will be severely curtailed.
The fact of the matter is that the OPEC decision virtually derails the Biden Administration’s pet project to impose a price cap on Russia’s oil exports. Simply put, that hare-brained project, conceived by the US Treasury Secretary Janet Yellen, flounders if oil prices remain high.
Interestingly, the G7 statement last week on Ukraine and Russia did not make any references to the price cap project. On the other hand, high oil prices will further aggravate the economic crisis in Europe even as the EU is moving towards terminating all oil imports from Russia by December 5. Meanwhile, the Biden Administration is acutely conscious that the Europeans — Germany and France included —are increasingly murmuring their discontent that the Americans played them and are selling gas at vastly higher prices in the European energy market.
When an influential senator like Menendez throws down the gauntlet to Riyadh, it can be taken as signalling that some retaliatory action against Saudi Arabia is in the cards. Democratic Sen. Richard Blumenthal of Connecticut and Rep. Ro Khanna of California have introduced legislation that would immediately pause all US arms sales to Saudi Arabia for one year as well as halt sales of spare and repair parts, support services and logistical support.
But appearances can be deceptive. The vehemence of the rage and rave have a contrived look, a touch of bluster. Significantly, in his CNN interview, Biden stopped short of endorsing the Democratic lawmakers’ call to halt weapons. Biden merely said he would look to consult with Congress on the way forward.
Whereas, Menendez has promised to use his position as chairman of the Senate Foreign Relations Committee to block any future arms sales to the Saudis. Quite obviously, the anger with Saudi Arabia has become far more palpable on Capitol Hill, but will it translate into action?
The big question is how much of this bluster is with an eye on the mid-terms in November. The White House national security adviser, Jake Sullivan, told reporters that Biden was also looking at a possible halt in arms sales as part of a broader re-evaluation of the US relationship with Saudi Arabia, but that no move was imminent.
Indeed, any attempt to rebalance relations with Saudi Arabia will have ripple effects at a time when the contours of an emerging alliance between Saudi Arabia and Russia are becoming apparent, the Iran question remains unresolved and high oil prices upset the US consumer and deepen the crisis in Europe — and, of course, so long as the petrodollar remains a key pillar of the western banking system. Besides, as things stand, US influence in the West Asia is today a pale shadow of what it used to be, and alienating Saudi Arabia to a point of no return will be an exceedingly foolish thing to do.
Above all, will the military-industrial complex in the US countenance a US-Saudi break-up? Saudi Arabia is the proverbial goose that lays golden eggs. It is a terrific paymaster for the American arms industry. Geopolitical analysts often call it the US’ ATM. Equally, the bottom line is that the Democrats wouldn’t even be able to garner enough Republican support to pass legislation once Congress is back in session next month.
The Saudi statement concludes with a word of advice for American diplomacy in these extraordinary times of multipolarity: “Resolving economic challenges requires the establishment of a non-politicised constructive dialogue, and to wisely and rationally consider what serves the interests of all countries.” (Emphasis added.) It ended recalling that “the solid pillars upon which the Saudi-US relationship had stood over the past eight decades” include mutual respect and common interests, amongst other things.
French Trade Unions Announce Massive Strike on October 18
Samizdat – 13.10.2022
PARIS – The leading French trade unions will hold a nationwide strike on October 18, demanding higher wages and protesting against the government’s attempts to force striking energy sector employees to go back to work, the unions said on Thursday.
“We call on employees to demonstrate for higher wages and protection of the right to organize strikes,” the unions said in a statement, aired by the Franceinfo broadcaster.
According to the statement, the planned strike is a response to government interference in the social movement of oil sector employees and encroachment on the right to strike.
The strike will be held at the call of the General Confederation of Labor, Force Ouvriere, the Federation Syndicale Unitaire and the Solidaires labor union. French transport unions, including national rail operator SNCF and youth organizations will also join.
The industrial action by energy sector employees has been ongoing in France since September 21, when ExxonMobil employees went on strike. They were joined on September 27 by workers of French energy company TotalEnergies. Last Tuesday, trade unions announced a three-day protest demanding a 10% pay increase as well as the indexation of 2022 wages to match the current record-breaking inflation. The strike led to a shortage of fuel at every third gas station in the country. The government forcibly returned the personnel of oil storage facilities to work in the city of Dunkirk and in a commune of Port-Jerome-sur-Seine in northern France.
Saskatchewan drafting legislation to protect economic autonomy
By Jorgen Soby | The Counter Signal | October 12, 2022
Saskatchewan Premier Scott Moe has begun drafting Alberta-style Sovereignty Act legislation.
Moe says it’s time to defend and assert Saskatchewan’s economic autonomy by “drawing the line.” He wants to take several steps, including introducing provincial legislation to clarify and protect Saskatchewan’s constitutional rights.
The proposal would give the province exclusive use over their resources like electricity and any emissions associated with fertilizer, oil and gas.
Like all provinces, Saskatchewan has exclusive areas of jurisdiction under the Constitution, but Moe’s government is accusing the Trudeau Liberals of infringement.
“Saskatchewan is taking action to unlock our economic potential and defend Saskatchewan’s economy, families and jobs from federal intrusion that could cost our province as much as $111 billion by 2035,” Moe wrote on Twitter.
According to the Saskatchewan government, new climate change policies could cost the province over $110 billion within the next thirteen years.
The Alberta government called proposed federal environmental laws a “Trojan Horse.”
Chief of Justice Catherine Fraser, who spent 30 years serving as the Chief of Justice for Alberta, described the proposal as an unconstitutional legislative scheme. Fraser retired shortly after providing her statement.
Saskatchewan’s SaskPower says the Canadian federal government proposed Clean Electricity Standard is not achievable.
While the Canadian government has debated additional energy costs, many EU countries face an ongoing energy sector supply crisis. Some people in Scotland have been burning their energy bills to protest aggressive energy price increases. Law enforcement in France has been refusing gas station access to some citizens.
Two potentates meet up at St. Petersburg

A 19th century painting of Konstantinovksy Palace, St. Petersburg
BY M. K. BHADRAKUMAR | INDIAN PUNCHLINE | OCTOBER 12, 2022
There was something profoundly meaningful that the President of the United Arab Emirates Sheikh Mohammed bin Zayed Al Nahyan undertook a visit to Russia amidst the gathering storms in Ukraine. Conscious of the symbolism, Russian President Vladimir Putin received Sheikh Mohammed on Tuesday in a grand setting befitting a monarch — at the gorgeous Konstantinovksy Palace in St. Petersburg whose heritage dates back to Peter the Great, a symbol of the revival of Russia and its cultural heritage.
The meeting of the two potentates couldn’t have been more timely. Sheikh Mohammed and his Saudi kinsperson, Crown Prince and Prime Minister Mohammed bin Salman Al Saud had just handed down a strategic defeat to a superpower in the geopolitics of oil, as the world community witnessed disbelievingly and understood that the sun has set on the American Century in international politics.
Putin too stands at the threshold of a historic victory over the combined might of the North Atlantic Treaty Organisation, which is poised to redraw the contours of the new world order. Putin told Sheikh Mohammed that the relations between Russia and the UAE are “an important factor of regional and overall global stability.”
Putin said, “I know that you are concerned about the entire situation that is developing, and I know about your desire to make a contribution to resolving all contentious issues, including the ongoing crisis in Ukraine. I would like to note that, indeed, this substantial factor makes it possible to use your influence to help gradually resolve the situation.”
The words were carefully chosen. Putin noted the UAE’s desire “to help gradually resolve the situation” in Ukraine, underscoring that a denouement is not in the cards in a near term. [Emphasis added.] However, the centrepiece of Putin’s remarks was something else — OPEC Plus where Saudi Arabia, UAE and Russia are virtually navigating the global energy markets.
Putin signalled that Moscow is not at all viewing the OPEC+ decision in zero sum terms. Rather, its aim is “to stabilise global energy markets, so that consumers of energy resources and those supplying them to global markets would feel calm, stable and confident, and so that supply and demand would be balanced.” Of course, embedded within this polite submission is a tough message to the G7 that any further attempt on their part to extend their weaponisation of sanctions to the global energy market is unacceptable and will be resisted and defeated.
These were Putin’s first remarks on the collective decision announced by the OPEC+ at its meeting in Vienna last Thursday to cut oil production by 2 million barrels per day. Putin concluded firmly that Russia will “respond to market requirements all the time, and we try to do this in line with current developments.”
Sheikh Mohammed unmistakably signalled that his visit focused on boosting its bilateral relations with Russia, especially in the economic sphere. As the western sanctions atrophy Russia’s flourishing economic ties with Europe, Moscow is turning to the non-Western world for partnerships, and reorienting its regional strategies. Putin has repeatedly stated that Russia will gladly engage with any country that stands up to western bullying.
The UAE has been quick to grasp that Russia prioritises the Emirates as a favoured destination to conduct business. The uniqueness of the UAE for Moscow lies in its dynamic environment for doing business as well as for opening a window for Russian industry to the Western world. Moscow has been receiving strong feelers from European partners about resuming business ties albeit indirectly. After all, the Russian market is synonymous with high business returns.
A crucial template here is Moscow’s appreciation of the growing emphasis by the UAE on preserving its strategic autonomy. The Russian elites admire Sheikh Mohammad for rapidly transforming the Emirates from an economy once reliant on fishing and pearls, to becoming a financial powerhouse and diverse economy, and providing a stable political system, strong capital flow, favourable taxation environment and liberal trade regimes.
Indeed, the UAE is now an attractive investment hub with a ‘2021 Vision’ of becoming the economic, touristic and commercial capital for over two billion people. As the Russians see it, these ambitious goals will continue to facilitate a hospitable, well-regulated and secure business ecosystem in the UAE. The World Bank’s Logistics Performance Index ranks the UAE among the top dozen out of 160 countries in terms of trade logistics.
Equally, Moscow does not envisage that it could be “business as usual” with the Europeans anytime soon — if ever. The the resuscitation of the West’s Nazi heritage to spite Russia and the destruction of the Nord Stream gas pipelines to punish Russia are only the culmination of an excessively obnoxious behaviour by the US and its allies to humiliate Russia over the decades — pouring scorn over its cultural heritages of language, literature, music, etc. out of sheer envy — in an appalling zest to “erase” Russia as a powerhouse. This has created deep wounds in the Russian psyche.
With 4,000 Russian companies operating out of the UAE, there is a rapidly growing Russian community in the Gulf region and Sheikh Mohammed noted that the Emirates will provide a friendly ambience for the Russian expatriates by approving the opening of the first Russian school in the Emirates. Conceivably, this must be the first such Russian school in that part of the world.
The Russian business community visualises the UAE as a prime launch-pad to access markets around the world. Its geographical location and amicable time zone (GMT +4), give businesses wishing to access markets in Africa, Asia and Europe a regional and business-centric hub from which to operate. Russia has set its sights high for expanding its relations with African countries, where it enjoys tremendous “soft power” dating back to the Soviet era.
In geopolitical terms, Sheikh Mohammed’s decision to travel to Russia to meet with Putin comes in the backdrop of the temper tantrums of the American political elites threatening to “punish” Saudi Arabia and the UAE. The Democrats have brashly called for the withdrawal of US troops in the UAE and Saudi Arabia and cutback on arms supplies.
These Neanderthal men ought to have become museum pieces by now. They do not comprehend that the West Asian elites have a cosmopolitan mindset and know these hollow men well enough, having interacted with them in their pristine years and watched stoically more recently as they began ageing, showing signs of exhaustion and senility.
By this visit to St. Petersburg, Sheikh Mohammed may have in his own astute way shown that such crude American threats will only be counter-productive. Earlier once, the Biden Administration had bullied him to sever the UAE’s relations with China to qualify for F-35 jets, whereupon, in disgust, he turned to France’s Rafale.
Russia, Saudi Arabia and the UAE have the potential to form a troika where each of the members augmented the political power of the other two members and at the same time collectively impacted the actual distribution of power in a multipolar world. The OPEC Plus has shown the way. Sheikh Mohammed’s meeting with Putin comes within the week of the OPEC Plus meeting in Vienna.
Lebanon and Israel finalize historic maritime border deal
The Cradle | October 11, 2022
Lebanon and Israel have agreed to a US-mediated maritime deal to demarcate the gas-rich blocks in the Mediterranean sea, seemingly putting an end to the prospect of an armed conflict.
In two separate statements by Lebanese and Israeli authorities, Beirut and Tel Aviv announced they have concluded all negotiations and will meet soon in Naqoura to sign the agreement.
“This is a historic achievement that will strengthen Israel’s security, inject billions into Israel’s economy, and ensure the stability of our northern border,” Israeli interim Prime Minister Yair Lapid said in a statement on Twitter.
A statement released by the office of outgoing Lebanese President Michel Aoun claims the deal “is satisfactory to Lebanon and meets its demands,” adding that it “preserves [the nation’s] rights to its natural wealth.”
In details revealed by Lebanese daily newspaper Al-Akhbar, all obstacles that led to a recent spike in tensions have been resolved, as both countries compromised with regards to the legal language used in the final draft.
The newspaper reveals that both sides agreed that Israel will be paid royalties from the Qana prospect field. However, the money will be paid from the revenue generated from the French oil company Total, not Lebanon’s share of the revenue.

Map of the disputed maritime border between Lebanon and Israel. (Photo Credit: The Cradle)
As for the most pressing concern for both sides, Lebanon and Israel compromised in the legal language regarding the buoys deployed at sea to demarcate the various economic blocks.
According to the leaks, Lebanon insisted on adopting Line 20 while refusing to acknowledge that the line demarcates the maritime borders, but simply the blocks at sea.
Whereas Israel insisted on Line 31 which is going to be on the final draft between both countries.
Nonetheless, Lebanon will not acknowledge its effects on the land border demarcation, leaving the issue for indirect land-border negotiations.
In light of these developments, Lebanese caretaker Prime Minister Najib Mikati met on 11 October with the Lebanese Minister of Energy, Walid Fayyad, and a delegation from Total.
The delegation included the Director of Oil Exploration and Production Laurent Vivier, who was informed about the results of the negotiations and received a request to start operations.
Total informed the Lebanese side that the logistics of exploration need time, promising to start “as soon as possible.”
Similarly, Israeli National Security Council Chairman Eyal Hulta announced that all of Israel’s demands have been met.
“Israel’s security interests have been preserved. We are on our way to signing a historic agreement,” Hulta said.
According to Israeli Minister of Defense Benny Gantz, the current state of alert at the norther border with Lebanon came as a result of credible intelligence information about Hezbollah’s plans to launch an attack had Israel started to extract gas from the Karish gas field before a deal was concluded with Lebanon.
Similar assessments were made by the foreign intelligence services of several western countries.
This attack would have fulfilled the promise made by the Secretary General of Hezbollah, Hassan Nasrallah, who reiterated on several occasion that only mutual access to the gas reserves will be permitted.
“Israel, the US, and EU all know we are not bluffing. They have enough proof of that,” the resistance leader said during a televised speech in September.
Russia to nationalize assets of Japanese carmaker – trade ministry
Samizdat | October 11, 2022
Japanese carmaker Nissan will sell all its Russian assets to state-owned research and development firm NAMI, the trade ministry has said.
The deal, worth a symbolic sum of €1, was approved by the Japanese corporation and includes a plant in St. Petersburg and sales and marketing facilities in Moscow.
“We have managed to reach a formant where the enterprise remains operational. Key competencies, the production cycle and jobs are preserved,” Russia’s Trade Minister Denis Manturov said in a statement on Tuesday.
Nissan has some 2,000 employees in Russia and after the transfer is completed NAMI will be able to attract other companies as production partners to create joint ventures.
According to the minister, Russian carmaker AVTOVAZ will carry out maintenance services for Nissan vehicles, as well as supply spare parts. The deal will give Nissan the right to buy back the business within six years, the trade ministry said.
The scheme is almost identical to the withdrawal of Renault, a member of an alliance with Nissan. In May, the French carmaker’s 68% stake went to NAMI and its factory in Moscow, which produced cars under the Renault and Nissan brands, was transferred to the city government.
Meanwhile, Nissan reported on Tuesday an estimated loss of $686.2 million from leaving the Russian market.
In 2009 the manufacturer started producing SUV models such as the X-Trail and the Qashqai at its plant in St. Petersburg. The Japanese carmaker suspended production there in March due to supply-chain disruptions, following the conflict in Ukraine.
Moscow aims to ensure balanced global energy market

Samizdat | October 11, 2022
Russia’s actions regarding energy resources are aimed at ensuring market stability, and not creating obstacles for anyone, President Vladimir Putin said on Tuesday while meeting with his UAE counterpart, Mohammed bin Zayed Al Nahyan, in St. Petersburg.
The leader of the UAE is on an official visit to Russia to discuss cooperation between the two countries, as well as regional and international issues.
“We are actively working within the framework of OPEC+. I know your position, our actions, our decisions are not directed against anyone … They are aimed at stability in the world energy markets, so that both consumers of energy resources and those involved in their production, as well as suppliers feel calm, stable and confident. So that the supply and demand will be balanced,” Putin said.
Last week, the Organization of the Petroleum Exporting Countries and allies (OPEC+) agreed to an oil production cut of 2 million barrels per day starting in November. The reduction, which is the largest output cut since early 2020, was approved despite US pressure to pump more. It is expected to stem the latest slide in global oil prices.
US President Joe Biden expressed disappointment with the decision, and Treasury Secretary Janet Yellen called the move “unhelpful and unwise.”
Russian Deputy Prime Minister Aleksandr Novak, who attended the OPEC+ meeting, said that the output cut is necessary to balance the market before the seasonal decline in demand.
According to Kremlin spokesman Dmitry Peskov, Washington seeks to force through its decisions regarding the oil market and manipulate prices, even at the cost of destabilizing the global energy market.
Analysts interviewed by Bloomberg warn that the output cut may lead to a jump in oil prices above $100 a barrel and force the US to tap its strategic reserves. They also believe that Russia may introduce even larger output cuts than those announced by OPEC+ in response to the introduction of an oil price cap by the EU last week. Given the rise in oil prices, Russia’s oil export profits are unlikely to suffer even with production cuts, they say.
Qatari and US gas won’t save Europe
By Vladimir Danilov – New Eastern Outlook – 11.10.2022
Experts estimate that in order to avoid a catastrophic fall in GDP and the risk of a prolonged economic depression, the total public spending by European countries to mitigate the energy collapse unleashed by Washington will have to exceed €1 trillion! A crisis of this magnitude would result in more bankruptcies and a domino effect in the finance sector, the scaling back of investment programs by businesses and a drop in consumer demand. The main negative effect will be that a number of the most energy-intensive industries will become uncompetitive due to gas shortages and rising energy costs. Depending on what scenario will unfold, such industries would be forced to reduce production by up to 60% compared to 2021. In turn, the shutdown would result in job cuts that could affect upwards of 1.5 million people.
Under these circumstances, objective No. 1 for Europe is to make its way out of the energy crisis as quickly as possible along with finding gas suppliers to the EU market that are not affected by the anti-Russian sanctions imposed by the Europeans themselves.
Under pressure from Washington, Europe has ditched cheap and guaranteed pipeline gas supplied via Nord Streams 1 and 2. It even acquiesced to the terrorist attack by the US and its accomplices to undermine the two pipelines in the Baltic Sea. Under these circumstances, the EU has been forced to turn its attention to global LNG suppliers in the hope of improving its disastrous energy supply situation by increasing cooperation with them.
Qatar is famously the world’s leading LNG market now, accounting for 26.5% of all shipments. Australia is in second place with 26%, while the US (14.7%) and Russia (10%) are in third and fourth place, respectively.
However, the US, despite its pompous declaration when initiating the gas war with Russia that it would provide Europe with gas, after the Europeans did expel Russia from their market, has already declared that it in fact cannot provide the EU with gas. US shale investors have admitted that the amount of production they have so far is all they can hope for. Therefore, as The Financial Times reported, US shale oil and gas producers have already warned that they will not be able to increase production to help Europe deal with the energy crisis this winter.
As for Qatar, this small state in the Middle East prefers to trade gas with Asia rather than with Europe for a number of reasons. First, because there is a smaller shipment distance. And second, the Qatari leadership is highly sensitive to political demands from the EU regarding energy exporters. In addition, it is also important that China, the main consumer of Qatari gas, pays a premium for every 1,000 cubic meters of LNG.
Against this background, as well as the imposition of sanctions against Russia and a significant reduction in Russian fuel supplies, the cost of gas in Europe continues to rise at a galloping rate. To do something about the rise, the EU has made the utopian decision of reducing gas consumption by 15% from August 1, 2022 to the end of March 2023, even though many Europeans refuse to do so. In addition, the European Commission head Ursula von der Leyen, who is far removed, among other things, from the economic laws in force in the world, has announced that the EU will consider introducing a ceiling price for imported Russian gas amid the energy crisis. However, as might be expected, so far the EU member states have not been able to agree on this measure, which runs counter to any supplier of goods, and indeed to WTO rules.
Under these circumstances, European leaders doubled down on their attempts to, at least on the individual country level, reach an agreement with Qatar on additional gas supplies. For this reason, a number of European politicians of various ranks have already paid repeated visits to Qatar over the past six months.
The US has become involved in persuading Qatar to supply more gas to Europe, including at the expense of its commitments to provide gas to Asia. According to “Washington’s strategists,” it is not difficult for the US to put pressure on Qatar, considering that the largest US military base in the entire Middle East is stationed in that country. This means there is no need to smuggle in, similar to the terrorist attacks against North Streams 1 and 2, appropriate “saboteurs,” explosives, organize the operation, etc. Furthermore, it was with the aim of fully tying Qatar to the US that, during the visit of the Emir of Qatar Tamim bin Hamad Al Thani to the White House in early February this year, US President Joe Biden called Qatar a “major non-NATO ally” and the Emir a “good friend and a reliable and capable partner.” In addition, the US leader promised that Qatar would soon be assigned a “major non-NATO ally” status.
Right now Qatar sells about 5-10 million tons of LNG to Europe. Over the next 5 to 10 years, as Saad al-Kaabi, Qatari Minister of Energy, promised at the Energy intelligence forum conference in London, 12-15 million tons of Qatari natural gas will flow steadily into Europe if the situation remains as it is and if European countries continue to struggle with other sources of energy. For its part, however, Qatar is demanding that the EU sign a long-term contract for LNG supplies, which Doha was encouraged to do by a recent 15-year agreement Germany signed on LNG supplies from the US. Doha is also being persuaded by Europe’s plans to find an alternative to gas from Russia, in which Qatar, with its plans to invest tens of billions of dollars in boosting production over the next five years, could be a key part of the solution. At the same time, Qatar imposes rather stringent conditions, giving buyers little scope to divert supplies, unlike contracts with the US. However, EU leaders have been demanding shorter contracts, demagogically explaining their position by the desire to reduce pollution, which has already brought negotiations on import deadlines to a standstill since March. And as for the EU’s “drive to reduce pollution,” this demagogy by European leaders is nothing short of hilarious, given that more and more EU countries are actively switching to coal.
In a bid to reach a gas deal with Europe, the Emir of Qatar, Sheikh Tamim bin Hamad Al Thani, came to the Czech Republic on October 5 at an official invitation from President Miloš Zeman. This meeting with the Emir of Qatar was important for the Czech and European authorities at large, as the EU hoped that, if the negotiations turned out to be successful, they could establish alternative routes for gas supplies amid the energy crisis. Alternative to Russia, that is. In this regard, the Qatari leader was also scheduled to speak at an informal meeting with EU member state leaders on October 7, and the visit itself was to last several days. However, the meeting turned into a major scandal: on October 5 the sheikh only had time to meet with Miloš Zeman immediately after his arrival in the country and Prime Minister Petr Fialla, before his plane left Prague. As Czech diplomatic sources explained, “the Qatari side has put forward demands that the Czech side cannot meet.”
To further clarify the situation, it should be recalled that Qatar’s geographical location gives it leeway in terms of gas supply channels. Today, up to 68% of Qatar’s LNG production is destined for Asia and 27% for Europe. Europe consumes about 450 billion cubic meters of gas a year, and Russia used to supply about half that volume. Therefore, the US proposal of 15 billion cubic meters of LNG (at higher prices than pipeline Russian gas) as an alternative to Russian gas, made back when starting the gas war in the European market, can only be regarded as a mockery and as a clear non-competitive struggle for the European gas market. Thus, it was already back then clear to everyone, except for some EU leaders like Ursula von der Leyen, Charles Michel and Josep Borrell who are explicitly subsidized by the US, that the US was firmly putting the EU on the line by forcing it to give up Russian gas altogether.
It is also no secret that Russia has been supplying LNG by tankers to the very Klaipeda, Lithuania, which claims it is receiving Qatari gas. In reality, however, Russia and Qatar have a very simple agreement – Russia supplies LNG from Yamal to Lithuania and it is considered Qatari, while Qatar supplies its LNG to China and it is considered Russian. The scheme benefits Qatar because it saves on transport costs and, in these circumstances, Doha will not abandon it for the “noble idea” of saving Europe.
Furthermore, it should not be forgotten that the average volume of standard gas carriers used to transport liquefied gas over long distances is 145,000 cubic meters. From this volume of LNG, 90 million cubic meters of gas are produced after regasification. Each shipping voyage lasts up to 14 days. However, one gas carrier can only make one voyage per month, and the transport itself costs several hundred thousand dollars, which includes fuel, crew salaries and the ship’s rent.
The US does not have that many specialized tankers in principle to at least compensate the EU for Nord Stream 2. Therefore, the people of Europe need to seriously investigate this shady deal by the US to initiate an energy crisis in Europe, namely who was the executor of these blatantly anti-European plans of Washington and how much personal profit have they made from the poverty and misery of ordinary Europeans.
Ukraine halts electricity exports to EU
Samizdat | October 11, 2022
Damage to energy infrastructure caused by Moscow’s air strikes has forced Ukraine’s government to cut off electricity exports to the European Union, taking away a supply source that Kiev claims helped its partners reduce their reliance on power generated with Russian natural gas.
“Today’s missile strikes, which hit the thermal generation and electrical substations, forced Ukraine to suspend electricity exports from October 11, 2022, to stabilize its own energy system,” the Ukrainian energy ministry said on Monday in a statement.
The ministry noted that even after losing control of the Zaporozhye nuclear power plant to Russian forces in March, Kiev had been able to meet its export commitments to European partners, but Monday’s attacks were the largest of the entire conflict. “The cynicism is that the entire supply chain has been hit,” Energy Minister German Galushchenko said. “It’s both electricity distribution systems and generation. The enemy’s goal is to make it difficult to reconnect electricity supplies from other sources.”
Russian President Vladimir Putin said Monday’s air strikes on Kiev and other major Ukrainian cities – targeting military, energy and communications infrastructure – came in response to Ukraine’s attack on the strategic Crimean Bridge on Saturday.
“If there are further attempts to conduct terrorist attacks on our soil, Russia will respond firmly and on a scale corresponding to the threats created against Russia,” Putin announced.
Galushchenko, however, accused Moscow of waging “energy terror” in retaliation for Kiev helping other countries reduce their dependence on Russia. After joining European energy system ENTSO-E back in June, Kiev said it expected to earn some €1.5 billion from electricity exports to the EU by the end of the year.
“That is why Russia is destroying our energy system, killing the very possibility of exporting electricity from Ukraine,” the energy minister claimed.
Ukrenergo, the national power grid operator, claimed its specialists have been “engaging backup supply schemes” and repaired some of the damage by Monday night.
In the meantime the ministry urged “all citizens of Ukraine to unite” and minimize their energy use during the peak demand hours, arguing that not only Ukraine is implementing measures to reduce power consumption, but the “whole of Europe is doing this now.”
Kenya, Tanzania to Fast-Track Dar es Salaam-Mombasa Gas Pipeline in Bid to Cut Fuel Costs
By Fantine Gardinier – Samizdat – 10.10.2022
During a visit to the Tanzanian port city of Dar es Salaam on Monday, Kenyan President William Ruto and Tanzanian President Samia Suluhu agreed to fast-track construction of a new gas pipeline connecting the city to Mombasa, Kenya’s main port.
“We will now expedite the gas pipeline from Dar es Salaam to Mombasa and eventually to Nairobi so that we can use the resources that we have in our region to lower energy tariffs, both for industry, commercial and domestic purposes,” Ruto said, according to Kenyan online news portal Tuko.
“In the shortest time possible, we can access the gas resources that you have in your country to drive industrialization in our country. I am confident that as the ministers get down to work, they will provide a brief to you and me to fast-track the project,” he told Suluhu.
She and Ruto’s predecessor, Uhuru Kenyatta, signed a memorandum of understanding on the long-awaited pipeline last year, which would extend 373 miles and cost $1.1 billion.
Just days after Ruto took office last month, he was forced to slash fuel subsidies, thanks to an International Monetary Fund (IMF) bailout that included such neoliberal stipulations in its contract. By mid-October, the prices of several types of fuel are expected to increase sharply in Kenya, putting a dent in Ruto’s plans to improve the country’s economic life for millions of Kenyans.
Ruto’s visit, his fourth foreign trip since taking office but his first focused on bilateral deals, is aimed at further bolstering Kenya’s burgeoning trade with Tanzania, its southern neighbor and fellow former British colony.
“We want to double trade, which is doable,” he said. Kenya-Tanzania bilateral trade amounted to nearly $1 billion last year, according to The East African. Years ago, their rivalry led to mountains of trade barriers being imposed, but both countries have labored in recent years to slash them as competition has turned toward cooperation.
“In total, our experts identified 68 barriers which were reviewed and 54 non-tariff barriers were removed and now we want our cabinet secretaries to deal with the remaining 14 so as to ensure there is freewill to trade,” Suluhu said on Monday.
Last month, Suluhu also penned a deal with Mozambican President Felipe Nyusi to expand trade ties as well as defense cooperation, with both nations desiring to quell a cross-border insurgency and re-establish and expand trade.
Last year, Uganda, Tanzania, French-owned oil giant Total, and China National Offshore Oil Corporation (CNOOC) signed a series of deals to build a massive 900-mile-long gas pipeline from western Uganda’s oil fields to the Tanzanian port of Tanga. The East African Crude Oil Pipeline (EACOP) will pass along the southern edge of Lake Victoria, circumventing Kenya before crossing northern Tanzania. It is expected to begin pumping oil in 2025 and cost $10 billion.
In March, Tanzania also announced a massive new liquefied natural gas (LNG) project expected to draw $10 billion in investment. Rising energy costs thanks to a global inflation problem and Western sanctions on Russia, the world’s largest energy exporter, have created problems for nations like Kenya, that import much of their energy, but opportunities for nations like Tanzania, which export it or have untapped reserves.
UAE President to visit Russia for bilateral talks
The Cradle | October 10, 2022
The President of the United Arab Emirates, Sheikh Mohamed bin Zayed al-Nahyan, will visit Russia on 11 October to discuss a series of national and international topics with his Russian counterpart Vladimir Putin.
The bilateral talks were announced by the Russian Presidential Spokesman Dimitry Peskov on 10 October.
The visit comes less than a week after OPEC+ member and nonmember states decided to cut oil production output by 2 million barrels per day, defying the hopes and expectations of the Biden administration to curb rising energy prices.
White House Press Secretary Karine Jean-Pierre accused OPEC+ on 5 October of “aligning with Russia,” and claimed their decision “is shortsighted while the global economy is dealing with the continued negative impact of [Russia’s] invasion of Ukraine,” in reference to the crisis caused by western sanctions imposed on Russia’s energy sector and attacks on Russian energy infrastructure.
Jean-Pierre added that President Joe Biden is consulting with congress “on additional tools and authorities to reduce OPEC’s control over energy prices.”
In May of this year, the US Senate approved the No Oil Producing and Exporting Cartels (NOPEC) Act, which could open OPEC member states and their partners to antitrust lawsuits for “orchestrating supply cuts that raise global crude prices.”
The bipartisan legislation would modify US antitrust law to revoke the sovereign immunity that protects sovereign states from lawsuits. This, in turn, would give the US attorney general the ability to sue OPEC+ members like Saudi Arabia, the UAE, or Russia in federal court.
According to the New York Times, analysts have argued that Saudi Arabia is determined to bring the price back above the $90 benchmark.
However, the chief of Saudi Aramco’s operations, Amin Nasser, said that the move to lower output was a decision made based on the international energy markets and fears over a looming recession.
“Even if we decide we are going to increase investment, it is going to be difficult; it will take a number of years,” Nasser said as he warned that the world could experience a serious supply crisis in the energy sectors.

