EU economies are down on their knees

BY M. K. BHADRAKUMAR | INDIAN PUNCHLINE | JULY 5, 2022
On July 1 at the White House, US President Joe Biden made a startling disclosure that “the idea we’re going to be able to click a switch, bring down the cost of gasoline, is not likely in the near term.”
American gas exporters have positioned themselves accordingly to fill the gap as Europe turns away from Russian imports. FT reported recently that “US liquefied natural gas producers have announced a string of deals to boost exports as the industry capitalises on shortages that have left Europe with a mounting energy crisis.”
The deals are so lucrative that Cheniere, America’s leading gas exporter, has taken an investment decision to push ahead with a project that will boost its capacity more than 20 per cent by late 2025, anticipating long-term supply deals and locked in purchases of US gas over the coming decades. The US producers of gas are reportedly running plants flat-out to increase supplies to the EU.
The US has overtaken Russia for the first time as Europe’s top gas supplier. Although LNG from the US is sold to Europe at much higher costs than pipeline gas from Russia, EU countries have no choice.
With Russian supply via Nord Stream at just 40% of capacity, and deliveries to be halted completely for annual maintenance on July 11-21, the outlook for near-term Russian gas supply to Europe appears bleak.
Germany has warned of the risk that Nord Stream gas may not return at all following the maintenance. At any rate, Russian supply to Europe is at record lows and is “set to remain constrained through the third quarter,” per S&P Global.
Germany is heading for a major economic crisis. The head of the German Federation of Trade Unions has been quoted as saying in the weekend, “Entire industries are in danger of collapsing forever because of the gas bottlenecks — especially, chemicals, glass-making, and aluminium industries, which are major suppliers to key automotive sector.” Massive unemployment is likely. When Germany sneezes, of course, Europe catches cold — not only the Eurozone but even post-Brexit Britain.
Welcome to the European Union’s “sanctions from hell.” The US literally hustled the Europeans into the Ukraine crisis. How many times did Secretary of State Antony Blinken travel to Europe in those critical months in the run-up to the Russian invasion of Ukraine to ensure that the door to any meaningful talks with the Kremlin remained shut! And American energy companies are today making windfall profits selling gas to Europeans. Won’t Europeans have the common intelligence to realise they have been had?
Now, Biden has washed his hands of the gas crisis. He brusquely stated at a press conference in Madrid on June 30 that such premium on oil prices will continue “as long as it takes, so Russia cannot, in fact, defeat Ukraine and move beyond Ukraine. This is a critical, critical position for the world. Here we are. Why do we have NATO?”
Biden’s counterfactual narrative is that the sanctions against Russia are going to work eventually and a long war in Ukraine would be Russia’s undoing. The US narrative is that if you look under the hood of the Russian economy, it may not be flexible and resourceful enough to develop an entrepreneurial bunker spirit and adopt new business models to neutralise the sanctions. Biden is convinced that the Russian economy is in the grip of industrial mafias that are not very innovative and, therefore, there aren’t many options for Russia under the western sanctions.
Biden said in Madrid: “Look at the impact that the war on Ukraine has had on Russia… They’ve (Russians) lost 15 years of the gains they made in terms of their economy… They can’t even — you know, they’re having — they’re going to have trouble maintaining oil production because they don’t have the technology to do it. They need American technology. And they’re also in a simi- — similar situation in terms of their weapons systems and some of their military systems. So they’re paying a very, very heavy price for this.”
But even if that’s the case, how does all that help the Europeans? On the other hand, President Putin’s strategic calculations with respect to the war remain very much on track. Russian forces made indisputable progress in establishing full control over Luhansk. On Monday, Putin gave the green signal to a proposal from the army commanders to launch “offensive operations.” Five months into the war, Ukrainians are staring at defeat and Russian army generals know it.
Russia didn’t wander into Ukraine unprepared, either. Evidently, it took precautionary steps both before and since the war to shield its economy. And this enables the Russian economy to settle down to a “new normal”. Washington’s options are quite limited under the circumstances. Fundamentally, western sanctions do not address the causes of the Russian behaviour, and therefore, they are doomed to fail to solve the problem at hand.
To be sure, Putin has some nasty surprises in store for Biden closer to the November mid-term elections. Biden blithely assumes that he controls all the variables in the situation. Schadenfreude is never a rational basis for statecraft.
Yesterday, the strategically important Kherson region bordering Crimea formed a new government with the First Deputy Prime Minister of Russia’s Kaliningrad region heading the cabinet and Russian nationals among his deputies. Now that HIMARS multiple launch rocket system, contrary to Biden’s promise, is blasting Russian cities, expect some major Russian retaliation.
The pathway of Russia’s offensive operations is being relaid to include Kharkov and Odessa as well, apart from Donbass. The influential Kremlin politician and chairman of Duma Vyacheslav Volodin said on Tuesday.
“Some people are asking what our goal is and when all this will end. It will end when our peaceful cities and towns no longer come under shelling attacks. What they are doing is forcing our troops not to stop on the borders of the Lugansk and Donetsk republics (Donbass) because strikes (on Russian regions) are coming from the Kharkov regions and other regions of Ukraine.”
How long does Biden think the Europeans will want to be involved in a protracted proxy war with Russia? Bild reported on Sunday that 75% of German respondents see recent price hikes as a heavy burden, while 50% said they feel their economic conditions are worsening; every second German fears a lack of heating this coming winter due to reduced Russian gas supplies and rising inflation in the European Union.
Yet, Biden says war will go on “for as long as it takes” and fuel shortage will continue “for as long as it takes.” The European economy is expected to start contracting over the course of the second half of 2022 and the recession may continue until the summer of 2023 at least.
Analysts at JP Morgan Chase, the US investment bank, said last week that Russia could also cause “stratospheric” oil price increases if it used output cuts to retaliate. It said, “The tightness of the global oil market is on Russia’s side.” Analysts wrote that prices could more than triple to $380 a barrel if Russia cut production by 5m barrels a day.
Putin’s decree last week is ominous — the Kremlin taking full control of the Sakhalin-2 oil and gas project in Russia’s Far East. State-owned Gazprom held a 50% plus one share stake in the project and its foreign partners included Shell (27.5%), Mitsui (12.5%), and Mitsubishi (10%). The decree stipulates that Gazprom will keep its majority stake, but foreign investors must ask the Russian government for a stake in the newly created firm within one month or be dispossessed. The government will decide whether to approve any request.
This will unsettle energy markets further and put more strain on the LNG market, and can be seen as a move to put more pressure on the West by concurrently restricting gas supplies to Europe and creating more demand for LNG in Asia that will draw off supplies currently going to Europe. Sakhalin-2 supplies circa 4% of the global LNG market!
The only part of the US agenda that is going well seems to be the unspoken part of it: the very same Anglo-American objectives that Lord Ismay once predicted as the rationale behind the NATO’s existence —”to keep the Russians out, the Americans in, and the Germans down.”
Foreign Policy Fail: Biden’s Sanctions are a Windfall For Russia!
By Ron Paul | July 4, 2022
It’s easy to see why, according to a new Harris poll, 71 percent of Americans said they do not want Joe Biden to run for re-election. As Americans face record gas prices and the highest inflation in 40 years, President Biden admits he could not care less. His Administration is committed to fight a proxy war with Russia through Ukraine and Americans just need to suck it up.
Last week a New York Times reporter asked Biden how long he expects Americans to pay record gasoline prices over his Administration’s Ukraine policy. “As long as it takes,” replied the president without hesitation.
“Russia cannot defeat Ukraine,” added Biden as justification for his Administration’s pro-pain policy toward Americans. The president has repeatedly tried to deflect blame for the growing economic crisis by claiming Russia is solely behind recent inflation. “The reason why gas prices are up is because of Russia. Russia, Russia, Russia,” he said in the same press conference.
But Biden has a big problem: Americans do not believe him. According to a Rasmussen poll earlier this month, only eleven percent of Americans believe Biden’s claim that Russian president Vladimir Putin is to blame for high prices.
When it comes to disdain for the average American hurt by higher prices, there is more than enough in the Biden Administration to go around.
Brian Deese, Director of President Biden’s National Economic Council, was asked in a recent CNN interview, “What do you say to those families that say, listen, we can’t afford to pay $4.85 a gallon for months, if not years?”
His answer? “This is about the future of the Liberal World Order and we have to stand firm.”
Has there ever been an Administration more out of touch with the American people? If you asked working Americans whether they’d be happy to suffer poverty for the “liberal world order,” how many would say “that sounds like a great idea”?
President Biden’s attempts to bring down gasoline prices are bound to fail because he does not understand the problem. He can beg the Saudis to pump more oil, he can even threaten the US oil companies as he did in a Tweet yesterday. He can buy and sell from the Strategic Petroleum Reserve in an attempt to give the impression that prices are lowering. None of it will work.
The strangest part of this idea that Americans must suffer to hurt the Russians is that these policies aren’t even hurting Russia! On the contrary: Russia has seen record profits from its oil and gas exports since the beginning of the Ukraine war.
According to a recent New York Times article, increasing global oil and gas prices have enabled Russia to finance its war on Ukraine. US sanctions did not bring the Russian economy to its knees, as Biden promised. They actually brought the American economy to its knees while Russian profits soared.
As Newsweek noted last week, Russian television pundits are joking that with the financial windfall Russia has seen since sanctions were imposed, “Biden is of course our agent.”
Washington’s bi-partisan foreign policy of wasting trillions on endless wars overseas has finally come home. Biden is clearly out of touch, but there is plenty of blame to go around. The only question is whether we will see an extended recession… or worse.
Copyright © 2022 by RonPaul Institute.
Moscow responds to Japan’s threat to cap Russian oil prices
Samizdat | July 5, 2022
Tokyo’s proposal to place a cap on Russian oil prices would lead to significantly less oil on the market and could drastically push oil prices higher, former Russian president Dmitry Medvedev warned on Tuesday.
Responding to the idea put forward by Japanese Prime Minister Fumio Kishida on Sunday, Medvedev wrote on his Telegram channel that Japan “would have neither oil nor gas from Russia, as well as no participation in the Sakhalin-2 LNG project” if Tokyo decided to go through with the proposal.
“Japanese PM Kishida recently blurted out that the price ceiling for Russian oil would be set at half its current price. Plus, a mechanism will be created that will not allow the purchase of our oil at a price higher than the established one,” the former president wrote.
He went on to explain what this would mean when “translated from Japanese into Russian,” writing that such a move would severely limit the amount of oil available on the market, causing its price to be “much higher.”
“In fact, it will be even higher than the predicted astronomical price of $300-400 a barrel. Compare this with the dynamic of gas prices,” Medvedev said.
During last week’s G7 summit, the leaders of Germany, France, Canada, the US, the UK, Japan, and Italy agreed to explore the feasibility of introducing temporary import price caps on Russian fossil fuels, including oil, citing the ongoing military conflict between Moscow and Kiev.
However, as the Kremlin has pointed out, implementing a measure such as the one proposed by Japan would first require the approval of other countries. Kremlin spokesperson Dmitry Peskov stated on Monday that Kishida’s idea was merely “a single statement only, without any decisions taken.”
Western plan to severely isolate Russia fails
By Lucas Leiroz | July 5, 2022
The Western world has tried to “isolate” and “cancel” Russia, but apparently this plan has failed and Moscow remains absolutely integrated with its major trading and strategic partners. China and India remain willing to cooperate with Russia widely, increasing current levels of bilateral trade. This demonstrates how the current situation in Eastern Europe cannot be resolved by coercive means.
The Chinese Ministry of Foreign Affairs pledged April 19 that it will strengthen cooperation with Russia, no matter what happens in the international scenario. The message comes in an official statement from the foreign ministry following a meeting held the day before between Chinese deputy MOFA Le Yucheng and Russian ambassador to Beijing Andrey Denisov. The document says:
“No matter how the international situation changes, China will, as always, strengthen strategic coordination with Russia to achieve win-win cooperation, jointly safeguard the common interests of both sides, and promote the building of a new type of international relations and a community with a shared future for mankind (…) In the first quarter of this year, the bilateral trade volume between China and Russia reached 38.2 billion US dollars, an increase of nearly 30%, [which] fully demonstrates the great resilience… of cooperation between the two countries”.
Later, commenting on the statement, Ambassador Denisov stated:
“Russia always regards developing relations with China as its diplomatic priority and is ready to further deepen bilateral comprehensive strategic coordination and all-round practical cooperation in the direction set by the two heads of state (…) [Further efforts to strengthen Russia-China ties] will continuously benefit the two peoples.”
Although it is a well-known fact that bilateral relations between Moscow and Beijing have improved substantially in recent years, forming an important axis of economic and diplomatic cooperation, the current message is of enormous importance, as it works as a response to recent US pressure against China. Last month, US President Joe Biden called his Chinese counterpart Xi Jinping and during an hour-long conversation “warned” about the possible “consequences” that would be suffered by Beijing if there was not an immediate end to its economic support for Russia.
Naturally, Xi ignored Biden’s threats and the Chinese foreign ministry maintained its stance of absolute neutrality on the ongoing conflict in Ukraine. Not mixing political and economic issues is a key point of the Chinese foreign policy tradition and this is exactly what is being applied now. Beijing refuses to maintain positions on any political event outside its strategic environment, which is why it keeps the Russian military operation off the agenda in Beijing-Moscow bilateral relations, continuing to have projects to improve cooperation, independently of such extra-economic issues.
However, it is not only the Chinese who show interest in cooperating with the Russians, ignoring the Western attempts of “cancellation”. Apparently, India is about to announce its highest ever level of trade cooperation with Russia in oil. According to reliable sources quoted by the Economic Times on April 19, state-owned companies in New Delhi are planning to buy as much Russian oil as possible in the short term, considering the expected availability and low prices of the commodity.
The Indian attitude sounds absolutely pragmatic and not ideological: faced with the conflict scenario, Indians seek to benefit from the availability of Russian oil, which arises as a consequence of the sanctions applied by the West to prevent the oil from entering the European market. With large quantities available and prices dropping, it is in India’s interest to acquire as many Russian barrels as possible and this is what is about to be done.
Obviously, this was not what the West expected from the Indians. The US has always tried to make its military partnership with India – focused on creating an “anti-China axis” – a kind of hierarchical relationship, in which Indians would automatically obey and align themselves with every decision taken by the Americans. However, despite the pressure in this direction and the constant US threats to cut ties with New Delhi, India remains convinced of defending its interests above all, making it clear that it will continue to cooperate with Russia in terms of both military trade and energy partnership.
It is impossible to look at such news and continue to believe the Western media narrative that “Russia is isolated”. Moscow has lost a part of world trade and even then, not completely, as Western countries have not yet managed to fully break off relations with Russia. On the other hand, it has not only preserved most of the global consumer market in emerging nations but has also boosted its ties with China and India, which indicates great economic support and, even more, the emergence of new intra-BRICS cooperation opportunities.
What all this means is simple to understand: the special military operation in Ukraine will not end through economic pressures, coercive measures and attempts at “cancellation”, but through the Ukrainian willingness to accept the peace terms, which are (as Russia insists) political and military neutrality and recognition of the sovereign republics of Donbass and Russian Crimea. As long as the Ukrainian government is unwilling to do so, Russia seems to continue the operation and have sufficient economic strength to maintain it.
Lucas Leiroz is a researcher in Social Sciences at the Rural Federal University of Rio de Janeiro; geopolitical consultant.
Russia makes massive oil discovery in the Arctic
Samizdat | July 4, 2022
Russian energy major Rosneft has announced the discovery of a huge oil deposit in the Pechora Sea containing an estimated 82 million tons of oil.
The field was discovered thanks to a drilling campaign in the Medynsko-Varandeysky area. “During the tests, a free flow of oil was obtained with a maximum flow rate of 220 cubic meters a day,” the company’s statement read on Wednesday, noting that the “oil is light, low-sulfur, low viscosity.”
Rosneft noted that the exploration works in the waters of the Pechora Sea proved the “significant oil potential of the Timan-Pechora province on the shelf and became the basis for continuing the study and development of the region.”
The company reportedly controls a total of 28 offshore licenses in the Arctic, eight of them in the Pechora Sea.
US Military Aid to Ukraine Will Only End With ‘Real Political Revolution’ in America, Analyst Warns
Samizdat – 03.07.2022
Since the start of the Russian special military operation in Ukraine, the US has supplied Kiev with unprecedented amounts of aid, chief among them being military. Moscow has repeatedly stated that this will only prolong and aggravate the conflict, which, however, has not affected the ever-increasing scale of support for Ukrainian authorities.
This Friday, Washington unveiled yet another $820 million package of security support for Ukraine, which includes two cutting-edge surface-to-air missile systems and four additional counter-artillery radars.
The Biden administration indicated the new package included extra ammo for High Mobility Artillery Rocket Systems (HIMARS) that were already given to Ukraine, noting US authorities almost weekly coordinate more and more new deliveries of arms and finances to Kiev counterparts amid pledges to give even more.
All this takes place against the backdrop of unprecedented in recent decades domestic inflation and an economic crisis that threatens to plounge the US into a recession comparable to the “Great Recession” of 2008.
Despite all that, US President Joe Biden said earlier this week that Washington plans to support Ukraine for as long as necessary, thus refuting allegations that some day the time would come when the well will dry up.
‘No Escape’ While Situation ‘Going to Get Worse’
US investigative journalist Daniel Lazare told Sputnik that in the current global situation the biggest problem for Washington is that it “is colliding head-on with reality.”
“The Ukraine war is not going well, Russia is advancing steadily, and few more arms shipments are not going to make much of a difference,” he explained. “The economy is in serious trouble, the sanctions that were supposed to bring Russia to its knees are backfiring spectacularly, while [US Treasury Secretary] Janet Yellen’s scheme for putting a cap on Russian oil prices is being met with worldwide derision.”
According to the pundit, the whole foreign policy of the US “seems to be heading for another crisis,” which prompted the journalist to ponder whether that really is “par for the course.”
“If confidence is plummeting, it’s because no one thinks the Biden administration is the least bit competent,” he said of the Biden administration’s recent poll numbers. “Yet all the alternatives are so much worse. Pretty grim, isn’t it?”
Per Lazare, there is “no escape” out of the situation the US is currently in, and all Biden can do is smile uneasily while UK Prime Minister Boris Johnson jokes about showing off his pecs.
“Things are only going to get worse,” he asserted.
‘This Will Only End When There Is Real Political Revolution in US’
Meanwhile, American geopolitical analyst Tom Luongo remarked that the ongoing conflict in the eastern European nation is nothing more than a “war between civilizations,” in US neoconservatives’ efforts to “forestall Russia taking control of Ukraine.”
Touching on Washington officials’ motives behind the ever-increasing aid to Kiev, Luongo told Sputnik that the American president, “as a proxy for the oligarchs in Davos, is acting on their behalf to ultimately weaken the US by sending weapons overseas and destroying US leadership and credibility.”
“This will only end when there is a real political revolution in the US,” he argued.
Asked about why the Biden administration is concentrated so much on the crisis abroad rather than resolving issues at home, the analyst asserted that the president was “put in charge to destroy the US.”
“Biden and his administration are vandals,” he claimed. “They are not acting in the US’s best interests but have subordinated our public policy to the wishes of foreign powers.”
According to Luongo, “too many conservatives want to align the DNC with China, but it’s clear that while China is helping erode the political cohesiveness of the US it is Davos and their Climate Change/technocracy agenda that is pulling all the strings.”
The expert offered that the incumbent administration is not interested in mitigating, for instance, the ongoing energy sector crisis, because it “is being run by traitors.”
More to that, Luongo believes the US economy cannot afford to sponsor Washington’s ambitions for a long period of time. The analyst argued there is sincere and well-organized pushback coming from “the most unlikely place,” which is some of the US biggest banks and the Federal Reserve, which is “aggressively tightening monetary policy to drain the world of dollars and break both the offshore euro, dollar markets and put China’s financial partners, namely Hong Kong, under sincere pressure.”
“If the Fed doesn’t do this now, the odds of a political disintegration of the US by the end of the decade rise dramatically,” the expert suggested.
Speculating about where the United States has again found huge funds to aid Ukraine this week, and how the budget is going to cover the next multi-million spending, he said that for 2022, the money used had already been allocated. However, according to Luongo, Congress eventually will have to sell debt into the market, either for domestic or foreign purchase, or for monetization by the Fed.
“The Fed is raising rates to stop the money spigot in DC by forcing Congress to act more responsibly,” Luongo explained. “Think of these spending allocations and pledges, like the $600 billion for global infrastructure to thwart China’s Belt and Road Initiative as attempts at blackmailing a reluctant Fed to monetize debt the world no longer wants to buy.”
The analyst also weighed in on the recent statement by the Federal Reserve Bank of Atlanta, which forecasted that the second quarter would see a 1% decline in the US GDP, a move that would in turn mark the beginning of recession.
Asked what were the chances of a “large-scale economic collapse” in this course of action, Luongo noted there is a significant difference between the recession and the latter. He emphasized the Fed should continue its current effort in order to compel resolution to numerous unresolved geopolitical challenges and imbalances.
“If it’s going to ‘act globally’ this is how it should do so, by taking away the punchbowl of offshore USD-based credit, Eurodollars, and regain control over its own monetary policy,” he pointed out.
According to Luongo, to balance the books from the last inflationary boom, one must pay a price that may include a severe recession and economic disruption in the US economy for “a year or two.”
“I think the worst of those effects on the US economy will be blunted by the complete collapse of the European economy and sovereign debt markets,” the expert concluded.
“However, it won’t last forever, two maybe three years, but it will be enough time to effect real political change. We’ll know at this year’s midterm elections what the American people really think about these things.”
Let Drivers Pay Price for World Domination, Says Biden
Meanwhile, just this Thursday, Biden told reporters that those behind the wheel in the US will be compelled to pay current record fuel prices for “as long as necessary.”
“As long as it takes so Russia cannot in fact defeat Ukraine and go beyond Ukraine,” Biden said. “This is a critical position for the world.”
A CNN report this week detailed that the US Department of Defense is considering 1,300 ideas from 800 companies to create new weaponry and commercial capabilities they might be able to produce to aid Ukraine in the near future.
The suggestions reportedly address several of the crucial needs that Ukraine has highlighted, including air defense, anti-armor, anti-tank, anti-personnel, coastal defense, drones, secure communications and counter battery.
Additionally, should the ongoing crisis last a long period, the US reportedly plans to increase the capability of its industrial base to serve Ukraine’s demands.
Ever since the conflict began in late February, the US has provided Kiev with over $54 billion in financial and military aid, including $40 billion package for aid to Ukraine that was passed by Congress in May.
According to the estimates, with the newest $820 million tranche, the US has provided Ukraine with $7.6 billion in military aid since the Biden administration took office in January 2021.
Following a request for assistance from the republics of Donetsk and Lugansk to protect themselves against Ukrainian forces’ escalating onslaught, Russia began a special military operation in Ukraine on February 24. According to the Russian Ministry of Defense statements, the civilian populace is not in risk because the operation is only focused on Ukrainian military facilities.
India, BRICS in cold war conditions
BY M. K. BHADRAKUMAR | INDIAN PUNCHLINE | JULY 2, 2022
The phone conversation on Friday between Prime Minister Modi and Russian President Putin conveyed a big signal, coming on the morrow of the release of the new Strategic Concept by NATO which called Russia the alliance’s “most significant and direct threat.” The readouts from Moscow and New Delhi both highlighted the two leaderships’ determination to carry forward the momentum of economic cooperation despite the western sanctions against Russia. (here and here)
Ironically, the West’s “sanctions from hell” have given a big stimulus to India-Russia bilateral trade, giving it a dynamism that one never suspected would be recaptured in the post-Soviet era.
Friday’s call was agreed upon in the sidelines of the BRICS summit (June 23-24). Curiously, it has come at a time when the Western powers have stepped up their efforts to create discord among the BRICS member countries, and brainwash India, in particular, to join their bandwagon in the new Cold War conditions. India is of course cherrypicking.
But that is understandable at a time when the economy is in “stagflation.” India’s relationship with Russia was the leitmotif of Modi’s visit to Japan in April and three visits to Europe in May as well as his two meetings with US President Biden during this period. In the West’s calculus, China and India are giving what analysts would call “strategic depth” to Russia, which nullifies its frantic efforts to “erase” Russia. Interestingly, the western attempts to create paranoia in the Indian mind about the close ties between Russia and China are no longer having the desired effect of Delhi becoming wary of Russia’s intentions. India sees, on the contrary, great opportunities to tap into Russia’s tilt to Asia-Pacific region for economic partnerships.
Without doubt, India is “balancing” between Washington and Moscow and BRICS summit was a great occasion to monitor that trapeze act. An unabashedly pro-western internet paper from Delhi had predicted that Modi would act as a vigilante for US President Biden, blocking any BRICS statement critical of the US. Whether that was true or not, Modi made a rather anodyne speech at the BRICS summit.
On the other hand, Putin had stated in his speech at the summit that “Considering the complexity of the challenges and threats the international community is facing, and the fact that they transcend borders, we need to come up with collective solutions. BRICS can make a meaningful contribution to these efforts.”
Putin added, “We are confident that today, as never before, the world needs the BRICS countries’ leadership in defining a unifying and positive course for forming a truly multipolar system of interstate relations… we can count on support from many states in Asia, Africa and Latin America, which are seeking to pursue an independent policy.”
In his speech, Chinese President Xi Jinping made an even more direct appeal to the BRICS partners: “Our world today is overshadowed by the dark clouds of Cold War mentality and power politics and beset by constantly emerging traditional and non-traditional security threats. Some countries attempt to expand military alliances to seek absolute security, stoke bloc-based confrontation by coercing other countries into picking sides and pursue unilateral dominance at the expense of others’ rights and interests. If such dangerous trends are allowed to continue, the world will witness even more turbulence and insecurity.
“It is important that BRICS countries support each other on issues concerning core interests, practice true multilateralism, safeguard justice, fairness and solidarity and reject hegemony, bullying and division.”
Frankly, no matter the impressive-looking XIV BRICS Summit Beijing Declaration, the fact remains that the grouping is performing far below its actual potential and one principal reason for this is India’s zero-sum mindset regarding China, which makes it difficult for it to work with China collectively in any regional forum.
However, any apprehension in the Indian mind that China would “dominate” BRICS is unwarranted. Russia undoubtedly occupies a special place in the structure of the BRICS. In fact, BRICS was Moscow’s brainchild and Russia was responsible for launching the format. The first ministerial meeting (in the BRIC format) took place at the suggestion of Putin in September 2006, on the sidelines of the UN General Assembly session in New York. Thus, the idea of creating BRICS matured in Russia.
Second, BRICS is a “de-ideologised” format. It shows no animus against America although it challenges western hegemony of the international political and economic order. The very fact that the Manmohan Singh government welcomed Putin’s BRIC initiative at a most sensitive juncture when India’s negotiations for a nuclear deal with the US (with eye on Washington’s embargo on technology transfer) speaks for itself.
Moscow conceived the BRICS concept for the strengthening of the formation of a multipolar system of international relations and the growth of economic cooperation — and it has indeed contributed to the birth of a new economic system, based on the equal access of countries to financing and sales markets, a combination of state planning and market economy.
India has a problem to appreciate that the BRICS paradigm does not lie in expanding the capabilities or ambitions of the group’s member countries, but in fostering a qualitative change in the economic development model of the Global South. India’s dog-in-the-manger attitude — sulking and politicising the forum with extraneous issues (primarily to embarrass China) — doesn’t make sense.
Unlike India, China takes BRICS seriously. The Chinese initiative to create a BRICS Vaccine Centre has been under development and the implementation of this project amid the current conditions can be a significant achievement that will bolster the entire format of the association. Ideally, India should cooperate with the project instead of teaming up with its QUAD partners which has turned out to be a wild goose chase.
Again, industrial innovation is slated to be a priority for China’s BRICS Presidency in 2022. Expectations are high that during its presidency, China will come up with a number of breakthrough initiatives. Clearly, now that the construction of the BRICS’ New Development Bank headquarters in Shanghai has finished, new proposals are expected from China on the development of its operations, including possibly an expansion of the number of shareholders of the bank.
Of course, China will promote its own projects, including Belt and Road initiative. But then, China is also putting into the projects the most financial resources. It is high time for India to have a serious reassessment of values within the BRICS framework, and the changing internal balance of power in the grouping in the new Cold War conditions.
BRICS is at the crossroads and this realisation has propelled the concept of a “BRICS+” format to the centerstage of discussions. China’s BRICS chairmanship 2022 witnessed the launch of the extended BRICS+ meeting at the level of Ministers of Foreign Affairs. Participants included Egypt, Nigeria, Senegal, Argentina, Indonesia, Kazakhstan, Saudi Arabia, UAE and Thailand.
During the ministerial, China also announced plans to open up the possibility of developing countries joining the core BRICS grouping. Argentina and Iran have been mentioned as candidates for BRICS expansion. Be that as it may, “BRICS+” is certain to be on the agenda of global governance in times to come.
Sanctions can be perceived as casus belli – Medvedev
Samizdat – June 30, 2022
Unilateral sanctions can be perceived as an “act of international aggression” and invoke Russia’s right to self-defense, former Russian President Dmitry Medvedev has warned.
Speaking at the 10th International legal forum in Saint Petersburg, Medvedev blasted the “cynical practice of unilateral restrictive measures against Russia, the illegality of which has been repeatedly emphasized at all levels.”
This practice is “somewhat akin to a declaration of economic war, as our opponents themselves say,” he added.
“Under certain circumstances, such hostile steps can be perceived as an act of international aggression. And even as a casus belli. In response to them, the state has the right to individual and collective self-defense.”
However, Moscow still holds “weak hope” that the West will abandon its “vicious practices” and “repent of its own stupidity,” Medvedev stated. “It is our hope that our former Western partners will have the courage to admit their strategic miscalculations, which, according to the UN itself, have affected more than 1.5 billion people and provoked a surge in global inflation, food shortages, and the growth of poverty,” he said.
Should such hopes not materialize, Russia “will live” on its own without the West, the ex-president explained. “Today’s world is not at all limited to the borders of Western countries,” he said.
Over the past few years, Russia has repeatedly been subjected to assorted sanctions by the US and its allies. The sanctions pressure began to grow exponentially after Moscow launched its large-scale military operation in neighboring Ukraine in late February. Since then, Russia has been hit by several waves of restrictions, ultimately becoming the most-sanctioned country in the world.
Russia sent troops into Ukraine on February 24, citing Kiev’s failure to implement the Minsk agreements, designed to give the regions of Donetsk and Lugansk special status within the Ukrainian state. The protocols, brokered by Germany and France, were first signed in 2014. Former Ukrainian President Petro Poroshenko has since admitted that Kiev’s main goal was to use the ceasefire to buy time and “create powerful armed forces.”
Biden: Americans will endure higher fuel prices
Samizdat | June 30, 2022
The US will bear high gasoline prices for as long as needed, President Joe Biden said on Thursday during a news conference at the NATO summit in Madrid.
When asked how long American motorists should expect to deal with high fuel prices, Biden told reporters “As long as it takes, so Russia cannot in fact defeat Ukraine and move beyond Ukraine.” He stressed that “this is a critical, critical position for the world.”
US gasoline prices, a key driver of the highest inflation seen in the country in 40 years, hit a record $5-a-gallon this month. The prices have been on the rise since the start of the year, reflecting significant consumer demand outstripping the supply of oil, as well as the ongoing turmoil in energy markets. Biden had earlier reassured the public that the US government was doing everything it can “to reduce this pain at the pump.”
The White House has repeatedly blamed Russian President Vladimir Putin for causing inflation in the US, with Biden describing it as “Putin’s price hike.”
However, the US Federal Reserve has recently rejected the assertion that soaring inflation in the country was mostly being driven by the crisis in Ukraine, pointing out that prices had been rising well before that.
US Supreme Court Limits Use of Clean Air Act in Major Blow to WH’s Climate Change Policy
Samizdat – 30.06.2022
The reduction of emissions, decrease in the use of fossil fuels and development of effective green energy sources are among the top priorities of Biden’s declared Build Back Better agenda. The latter already suffered a major blow last year when part of the legislation that was supposed to fund climate policies failed to pass Congress.
The US Supreme Court has ruled that the Environmental Protection Agency interpreted the Clean Air Act – the country’s main anti-air pollution law that allows the regulation of greenhouse gas emissions – too broadly, and ordered to limit its use. Six justices deemed “conservative” supported the decision, while three “liberal” justices opposed it.
The court specifically ruled that the EPA does not have the authority to limit emissions from power plants using the Clean Air Act.
The decision comes as a response to an appeal by 19 states, coal companies and power plants to prevent the EPA from abusing broad authority to regulate emissions. They asked the US Supreme Court to allow them greater flexibility in phasing out emissions-intensive plants, namely coal ones so that they could provide services reliably.
The ruling might undermine Joe Biden’s planned efforts to propose mandatory emission reductions at power plants in the US by the end of the year. It is supposed to be the first step in the POTUS’ broader plan to have the country’s power generation emissions-free in 13 years.
The idea of regulating power plant emissions dates back to the Obama administration and its plans to pass the Clean Power Plan that would have explicitly given the government the tools to retire emissions-intensive coal plans. The act was effectively blocked by a 5-4 US Supreme Court decision in 2016 and shelved for good under the Donald Trump administration.
Regardless of the Democrats’ efforts, the US power plant emissions have actually already sunk below the levels that should have been achieved only by 2030 under Obama’s original plan. They were achieved thanks to closures of the very same coal plants driven by market mechanisms [fracked gas].
Ukraine War: 120 Days
A no-nonsense analysis of the ongoing Ukraine war and its global impact

Military situation in Ukraine on June 28 (SouthFront)
Swiss Policy Research | July 2022
Military Situation
The initial Russian offensive (“phase 1”) consisted in a direct advance from Belarus to the northern gates of Kiev and the simultaneous opening of multiple fronts in the north-east, east, and south of Ukraine. There have been various theories as to what the initial Russian strategy was (e.g. conquering Kiev or ‘binding Ukrainian forces’), but most likely, Russia tried to force a collapse or capitulation of the Ukrainian government, in which case Russia would have won the war without really fighting it.
Indeed, just one day after the beginning of the invasion, Russian President Putin proposed a kind of “military coup” in Ukraine to make it easier to “reach an agreement”. There were also several rounds of negotiations between Moscow and Kiev in Belarus and Turkey.
Yet this initial, political-military plan failed and was halted in late March, about one month after the beginning of the invasion.
Nevertheless, already by early March Russia had conquered extensive territories in southern Ukraine connecting the Donbas and Crimea and had been able to restore water supply to the Crimean Peninsula (which had been cut off by Ukraine since 2014; see map above).
By late April, Russia had essentially conquered the important southern Ukrainian port city of Mariupol (500k pre-war inhabitants), and by late May, the remaining Ukrainian forces in the Azovstal steel plant of Mariupol had surrendered. In addition, Russia conquered the southern Ukrainian cities of Melitopol (150k inhabitants) and Kherson (300k) without meeting much resistance.
After the failure of the initial political-military strategy, Russia in early April withdrew all of its troops from the north of Kiev and redeployed them to the east in an attempt to encircle and defeat the main positions of the Ukrainian military and conquer the entire Donbas region.
However, the Russian advance in eastern Ukraine was much slower than expected by many observers, and Russian forces advanced only about 25 kilometers in about two months.
Many Western analysts got the impression that the Russian military was weaker than previously assumed, while many Russian and pro-Russian analysts have argued that the Russian military was advancing slow “on purpose”, allegedly to “minimize losses”.
Yet neither of these explanations were convincing. Instead, there are several substantial reasons that explain the steady, but rather slow advance of the Russian forces in eastern Ukraine.
First, in terms of the number of soldiers and tanks, the Ukrainian military is the largest military in Europe, second only to the Russian military (not counting the Turkish military).
Second, while Ukraine has already mobilized large parts of its men of fighting age, Russia has not yet mobilized at all, i.e. Russia is using only active soldiers, no reservists or conscripts. In fact, Russia has essentially deployed its peace-time army, which has resulted in a notable lack of manpower and infantry. A likely explanation for this decision is that the Russian government wants to keep up the impression, at least domestically, that it is just conducting a “special military operation”, not a full-scale war, and that it wants to avoid the political repercussions of having to conscript additional men (i.e. civilians). This is consistent with the fact that Russia has offered high-paid short-term military contracts to volunteers, again avoiding conscription.
Third, Eastern Ukraine is probably the most strongly fortified region in Europe today, having been prepared against a potential Russian invasion for several years. Although some Ukrainian units have surrendered due to a lack of supply or guidance, the overall Ukrainian resistance against Russian forces remains at a very high level.
Fourth, the Ukrainian military has received large amounts of weapons from the US and NATO countries, including powerful artillery and modern anti-tank weapons. Without these supplies, the Ukrainian front would likely have collapsed rather quickly.
Fifth, the Ukrainian military has greatly enhanced the effectiveness of its artillery by using reconnaissance data from its own drones as well as from US satellites. Indeed, the use of commercial and simple military drones appears to have fundamentally transformed modern warfare at the tactical level.
Sixth, and contrary to claims by Western media, the Russian military is still trying to minimize civilian casualties and damage to civilian infrastructure, likely because it views Eastern Ukraine as Russian territory anyway. For instance, it has been noted that the Russian military delivered fewer airstrikes and fewer missiles during the entire first month than the United States did during the Iraq war in just one day. However, as the Ukrainian military has been fiercely defending most cities and villages, the end result is still large-scale destruction of urban infrastructure.
Although Russia has had the upper hand in Eastern Ukraine, it remains uncertain if the current Russian military strategy will be viable in the longer run, especially if Russia intends to conquer some of the larger Ukrainian cities, such as Kharkiv, Odessa or Dnipro (1M-1.5M) or even Kiev (3M). If the Ukrainian government or military do not surrender or agree to a negotiated solution, the Russian military may have to call up reservists and conscripts and/or switch to an (even) more destructive mode of warfare against the cities it intends to “liberate”.
Currently, the main Russian military advantage consists in relative (but not absolute) air superiority, more powerful artillery, and cruise missiles that can destroy strategic targets anywhere in Ukraine. Nevertheless, the Ukraine war is currently not an “asymmetric war”.
In terms of military strength, it is estimated that Russia deployed about 160,000 soldiers, the pro-Russian Donbas republics about 40,000 soldiers, and Ukraine about 300,000 military and paramilitary forces, of which about 50,000 in Eastern Ukraine. In terms of military losses, it is estimated that by late June, Ukraine may have lost close to 20,000 soldiers, Russia close to 5,000 soldiers, and the Donbas republics about 10,000 soldiers.
Future Developments
Russia will certainly try to fully conquer (or liberate) the Donbas republics, including the cities of Sloviansk and Kramatorsk (100k-150k pre-war inhabitants). Russia may also try to conquer Mykolaiv (500k) and Odessa (1M) in the south of Ukraine in order to establish a corridor to Moldova/Transnistria, which would cut off Ukraine from the Black Sea and turn the country into a landlocked rump state. After conquering the Donbas republics, Russia may further try to conquer or encircle Kharkov (1.5M) and advance to the Dnipr river.
Cities or districts conquered by Russia will likely hold referendums on becoming part of Russia. These referendums will likely turn out in favor of Russia, as a majority of the people in the east and south-east of Ukraine do indeed identify as Russians (or are leaning towards Russia), and Russia may then annex or absorb these territories. However, such a strategy will not work in Kiev, nor in northern and western Ukraine (see map below).
In terms of potential escalations, a Russian advance towards Moldova may trigger a preemptive Romanian invasion (“by invitation”) of Moldova. A further destabilization of Ukraine may trigger a Polish invasion (“peace mission”) of western Ukraine, which in turn could trigger a war between Poland and Belarus in western Ukraine.
Moreover, NATO countries could decide to deliver more powerful weapons to Ukraine or to establish a “safe zone” in western Ukraine (similar to the situation in eastern Syria). In general, the US will likely try to prolong the Ukraine war as much as possible in order to weaken Russia financially and politically (similar to the Afghanistan war in the 1980s.)
Outside of Ukraine, the situation in the Baltics (Lithuania/Kaliningrad), the Balkans (Bosnia-Serbia-Kosovo) and in the Caucasus (Georgia, Armenia-Azerbaijan) could further deteriorate. The situation in Syria, where the US, Israel, Turkey, Iran and Russia are already involved, could also further escalate. In Asia, China could decide to invade and annex Taiwan.
The global economic situation will also likely continue to deteriorate, especially in the fields of energy and food supply, price inflation and financial market stability. This deterioration is driven not just by the war itself, but also by Western sanctions against Russia as well as by two years of misguided pandemic lockdown policies, which have caused serious global supply chain disruptions.
The possibility of a nuclear escalation will be discussed further below.
War Crimes
In terms of war crimes, the current situation is in stark contrast to claims by Western media and Western governments, as most war crimes have been committed not by the Russian side, but by the Ukrainian side. This includes many major war crimes blamed on the Russian side, such as the infamous Bucha massacre, the Mariupol theater bombing, or the Kramatorsk railway station bombing. Other supposed Russian war crimes were simply made up by Ukrainian officials, such as allegations of systematic rape and mass looting.
Yet other events were taken out of context, such as the alleged Russian bombing of Ukrainian schools and hospitals or shopping centers, which in almost all cases had been turned into Ukrainian military bases or ammunition depots. In other cases, civilian buildings supposedly destroyed by Russian missiles were in fact destroyed by Ukrainian air-defense missiles (e.g. in Kiev) or Ukrainian artillery missiles (e.g. in Borodyanka).
In yet other cases, Ukrainian forces, poorly disguised as Russian forces, executed Ukrainian civilians that welcomed the false “Russian liberators”; Western media then presented the execution as a Russian war crime. In even other cases, the Ukrainian bombing of Donbas cities was presented as the Russian bombing of Ukrainian cities.
In the case of Bucha, the bodies seen in the streets were victims of Ukrainian shelling of residential areas during the Russian occupation and retreat, and of subsequent Ukrainian executions of “collaborators” (hence the white armbands, a sign of friendly status during Russian occupation). The bodies were then presented as victims of a supposed “Russian massacre”.
Ironically, the Ukrainian commander who oversaw the Bucha massacre previously was a Russian intelligence asset who had built up “neonazi groups” in Russia and Belarus. The international “marketing” of the Bucha massacre as a supposed Russian war crime may have been coordinated by British intelligence, similar to numerous chemical false-flag attacks in Syria.
In the case of the Mariupol maternity clinic, Western media claimed it was a Russian airstrike, but they could not provide any evidence for this hypothesis, and witnesses at the clinic said there was no airstrike. Yet the incident remains unresolved, and both a Russian attack (possibly targeting a nearby Ukrainian base) or a Ukrainian operation remain possible.
In the case of the recent Kremenchuk shopping center incident, the Ukrainian government claimed a Russian missile hit the shopping center with 1,000 people inside; in reality, the Russian missiles hit an adjacent military plant and the shopping center was either closed (non-operational) or almost empty. However, one of the Russian missiles did hit very close to the shopping center, which then caught fire and burnt down.
Documented, confirmed or potential Russian war crimes currently consist mainly in the shooting and killing of civilians that approached Russian checkpoints or military columns, on foot or by car, although the context of these events is sometimes unclear (e.g. if there were any warning shots). There are also allegations of several other crimes against individual Russian soldiers that are currently difficult to verify independently.
On the Ukrainian side, documented war crimes encompass mass torture and mass executions, both against prisoners of war and their own people (if deemed pro-Russian collaborators or sympathizers), including several cases of decapitation; the military use of civilian infrastructure (including schools) and “human shields”; and large-scale shelling of residential areas behind front lines, especially against the city of Donetsk (in one case even hitting a maternity clinic).
Moreover, several Western journalists, whose death was blamed on the Russian side, were in fact killed by the Ukrainian side (in friendly fire incidents).
False claims of major Russian war crimes (i.e. atrocity propaganda) have been used by Western governments to justify weapons supplies to Ukraine and sanctions against Russia. The heavy use of such atrocity propaganda is not a new phenomenon, of course. Important recent examples include the US/NATO wars against Yugoslavia and against Syria.
The topic of war crimes will be covered in a separate, detailed event-by-event analysis.
Propaganda and Censorship
On the Russian side, propaganda efforts depict the Ukraine war as a kind of continuation of the Second World War or Great Patriotic War against National Socialist Germany, focusing on the supposed “denazification” of Ukraine. At the same time, Russian President Putin has criticized Soviet leaders for having made Ukraine a quasi-independent political entity in the first place. Thus, Russian propaganda combines elements of both the former Soviet Union and the earlier Russian Tsarist empire.
Overall, the “Nazi narrative” appears to be quite effective, both in Russia and in the West, in part because many key aspects of the Second World War and NS Germany still cannot be questioned, neither in Russia nor in the sphere of Anglo-American countries, which during the Second World War were allied with Stalin’s Soviet Union against Hitler’s Germany.
On the NATO side, propaganda efforts mainly focus on Russian aggression, supposed Russian war crimes and supposed Ukrainian successes. NATO propaganda is produced by multiple PR agencies, coordinated by intelligence services, and distributed to Western media outlets by the three global news agencies AP (American), AFP (French) and Reuters (British-Canadian). The total number of NATO propaganda messages in Western media is likely approaching about one thousand.
In addition, both sides have introduced significant media censorship. In NATO countries, this includes the removal of Russian and pro-Russian media outlets from major Internet search engines Google, Microsoft Bing and even DuckDuckGo. Furthermore, British security state operatives were caught trying to suppress independent media coverage of the Ukraine war.
Nevertheless, independent media outlets and uncensored Telegram channels have continued to provide important real-time footage and analysis of the situation in Ukraine.
NATO Expansion or Russian Expansion?
Is the Ukraine war about NATO expansion or rather about Russian expansion? In truth, it is likely about both NATO and Russian expansion, although one may argue that the Russian expansion is a response to NATO expansion. It is clear that the current Russian government sees large parts of Ukraine as “historically Russian territory”, or indeed Ukraine as part of Russia. Only by seeking a neutral status and by accepting the loss of Crimea and the autonomy of the Donbas republics might Ukraine have avoided a Russian invasion.
It has been argued that NATO expansion into Ukraine wouldn’t be a threat to nuclear Russia, but this is hardly true. NATO expansion into Ukraine would pose a geostrategic threat (control over pipelines, ports etc.), a direct military threat (planned recapture of Crimea and the Donbas republics), and a strategic military threat (NATO military infrastructure and missile bases). For similar reasons, the US did not and would not accept Russian bases in Cuba, Mexico or Venezuela.
It has been noted that Russia is unlikely to invade Finland or Sweden, despite their intention to join NATO (in response to the Russian invasion of Ukraine). In fact, Russia already has a (small) land border with NATO founding member Norway and with Baltic states. Yet Finland and Sweden do not currently threaten Russian territory or Russian interests. Otherwise, a Russian military response may in fact be conceivable (see below).
Is the Russian military operation in Ukraine legal or illegal? From a Western perspective, the Russian operation is clearly illegal, not unlike previous US invasions (e.g. of Grenada, Panama and Iraq) and most US/NATO wars (e.g. against Serbia, Afghanistan, Libya and Syria). From a Russian perspective, the military operation is a legitimate intervention into an ongoing, illegal eight-year war against the Donbas republics. Russia will likely annex large parts of Ukraine, but it will try to “legitimize” these annexations by prior referendums.
Energy War: By Whom?
It has also been argued that Russia is waging an energy war by restricting oil and gas exports in order to destabilize NATO countries and especially Europe. Yet upon closer inspection, it is clear that the energy war is in fact waged via sanctions by NATO countries in order to financially destabilize Russia, although so far this seems to have failed and indeed backfired, with energy security in Europe becoming rather uncertain.
For instance, a reduction in gas flow through the Nord Stream pipeline from Russia to Germany was (and is) due to a broken turbine sent by Germany to Canada for repair, but then retained by Canada due to sanctions against Russia. Similarly, the Russian decision to accept energy payments only after conversion into rubles was simply in response to the prior freezing of billions of Russian Euro and dollar reserves by Western countries.
Indeed, neither during nor after the Cold War has Russia (or the USSR) ever used the “energy weapon” against (Western) Europe, as Russia is very much interested in both being seen as a reliable supplier and in foreign currency export revenue.
However, one can argue that Russia is relying on a kind of “indirect energy weapon”: by being a reliable energy supplier, Russia may hope that Europe and NATO will not turn hostile, regardless of Russian military actions. Moreover, if relations should further deteriorate, Russia could of course use the “energy weapon” and stop energy exports to Europe altogether.
The Russian government likes to emphasize that the impact of Western sanctions is rather minor and that the Russian ruble has remained strong. But Russia had to impose capital controls (i.e. the ruble is no longer free floating), and the economic impact is substantial, with tens of thousands of IT specialists having already left the country, for instance.
Nuclear War?
How likely is a nuclear war as a potential escalation of the Ukraine war?
A direct nuclear war targeting the mainland of nuclear states remains very unlikely, as this would lead to the destruction of all states involved. However, from a purely military and geostrategic perspective, there are two rational offensive uses of nuclear weapons, in addition to their defensive use as a deterrent: against hostile non-nuclear states and against overseas military infrastructure of nuclear states.
In this regard, there is a major geostrategic asymmetry between Russia and China on the one hand and the US on the other hand: whereas the US has several hundred overseas military bases and several dozen non-nuclear allies or client states (both in Europe and in Asia), Russia and China have almost no overseas military bases and very few non-nuclear allies.
Thus, Russia and China could consider coordinated nuclear strikes against all US overseas military bases in Eurasia (i.e. in Europe, the Middle East, Central Asia and East Asia). In addition, Russia and China could consider nuclear strikes against hostile non-nuclear countries, both in Europe and in Asia, targeting military/industrial centers or even population centers.
Theoretically, such a coordinated nuclear operation might remove the US military from the Eurasian continent (and by extension from Africa), limiting US military influence to North and South America. Thereafter, a new geo-economic Cold War between Eurasia/Africa, led by China and Russia, and the Americas would likely ensue.
Nuclear allies of the US in Eurasia, most notably Britain, France and Israel, would have to ensure robust sea- and air-based second strike capability even against modern hypersonic missiles with multiple nuclear warheads, in order to avoid being targeted themselves.
A nuclear attack against non-nuclear NATO states would be seen as an attack against NATO, and a nuclear attack against US overseas military bases would be seen as an attack against the United States, but because of the above-mentioned asymmetry, the US could not respond in a meaningful way without forcing its own destruction.
While such a scenario seems militarily conceivable and even rational (given the breakdown of the post-WWII security architecture), both China and Russia currently seem to follow a different economic, diplomatic and military strategy, using novel alliances such as BRICS, RCEP, the Eurasian Economic Union, and the Shanghai Cooperation Organization (SCO).
In contrast, the US may attempt to contain Russia and China via economic and political sanctions and to ultimately overturn regimes in both countries, thus paving the way for global US predominance, which was almost achieved after the end of the Cold War.
Figures
1) Results of 2010 Ukrainian presidential election.
Janukovych was the pro-Russian candidate, Tymoshenko was the pro-Western candidate.

Results of 2010 Ukrainian presidential election (Wikimedia)
2) Mariupol: Before and after Russian conquest

Mariupol: Before and after Russian conquest (Telegram)
3) Western propaganda vs. Russian propaganda


