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US Sanctions Russia’s Rosneft for Venezuela Dealings

By Ricardo Vaz | Venezuelanalysis | February 19, 2020

Caracas – The US Treasury Department imposed sanctions against Russian state energy giant Rosneft on Tuesday for “operating in the oil sector of the Venezuelan economy.”

The measure targeted Rosneft Trading SA, the Swiss-based subsidiary of the Russian multinational, and its chairman Didier Casimiro.

“Rosneft Trading S.A. and its president brokered the sale and transport of Venezuelan crude oil,” Treasury Secretary Steven T. Mnuchin said in a statement.

The statement listed several alleged Rosneft dealings with Venezuelan state oil company PDVSA, including 55 million barrels transported between September and December 2019.

As a result, all US assets in which Rosneft Trading and Casimiro hold a larger than 50 percent stake are blocked. The Treasury’s Office of Foreign Assets Control (OFAC) granted a 90-day period for companies to wind down their dealings with Rosneft Trading.

White House Special Envoy for Venezuela Elliott Abrams later gave a press conference, referring to the latest measures as a “significant step.”

“I think you will see companies all over the world in the oil sector now move away from dealing with Rosneft Trading,” Abrams told reporters.

Washington has imposed several rounds of punishing sanctions targeting Venezuela’s oil sector, traditionally the source of over 90 percent of the country’s foreign currency income. Financial sanctions against PDVSA were first introduced in August 2017, before an oil embargo was imposed in January 2019. Venezuela’s oil output plummeted from an average of 1.911 million barrels per day in 2017 to 793,000 in 2019.

Following measures against other sectors of the Venezuelan economy, the Trump administration imposed a blanket ban on all dealings with Venezuelan state entities in August 2019, while also authorizing secondary sanctions against third party actors. US officials had repeatedly threatened to levy secondary sanctions against foreign companies buying Venezuelan crude.

With the US embargo driving away buyers in recent months, Rosneft had reportedly been carrying over 60 percent of Venezuela’s crude output before rerouting to other destinations. The company had denied violating US sanctions.

Other multinationals, including Spain’s Repsol and India’s Reliance Industries, have also been warned to “tread cautiously” by the Trump administration. Both companies have stated that they have not violated US sanctions, allegedly by exchanging crude for fuel or diluents.

Rosneft has yet to comment on Washington’s decision, with the company’s shares falling by as much as 5.2 percent in Moscow’s stock exchange. The Russian Foreign Ministry published a statement criticizing the US for “raising international tensions,” while vowing that relations with Venezuela would not be affected.

Venezuelan authorities likewise blasted the latest move, with Foreign Minister Jorge Arreaza stating that Caracas “firmly rejects” the measures against Rosneft Trading.

“The measures against Rosneft Trading are aimed against our oil industry […]. They keep attacking the people of Venezuela, trying to generate suffering and difficulties,” Arreaza wrote on Twitter.

The foreign minister added that the Venezuelan government would add the latest measures to a criminal complaint submitted before the International Criminal Court (ICC). Arreaza delivered a 60-page document to the ICC at The Hague last week, arguing that US sanctions represent “crimes against humanity” and can be equated to “weapons of mass destruction.”

February 19, 2020 Posted by | Economics | , , , | Leave a comment

Hungarian PM Orban Attacks EU Economic Policies and George Soros

Sputnik – February 17, 2020

Hungarian Prime Minister Viktor Orban has never been a fan of George Soros, the Hungarian-American billionaire and founder of the Open Society Foundations, often attacking the renowned philanthropist for allegedly meddling in Hungary’s internal affairs, as well as for supporting increased migration to Europe.

Viktor Orban, the Hungarian prime minister, has taken some shots at the International Monetary Fund (IMF), the European Union’s leadership, and against his probably least favourite Hungary-born billionaire George Soros, during his annual state of the nation address.

During the speech, Orban asserted that the past decade has been “the most successful” for Hungary in the last century, but noted that his country was still threatened by so-called “sinister menaces” the European economy was facing. The prime minister thus praised Hungary’s decision to break away from IMF loans and not to succumb to demands for more austerity, which, he alleged, would have made Hungary dependent on Soros.

“If we’d followed their advice, then Hungary now would be lying in a hospital ward with IMF and Brussels debt tubes hanging from its every limb and the faucet of the debt would be in the hands of George Soros”, Orban said on Sunday, as quoted by AP.

The prime minister insisted that a slowdown in the EU’s growth had a strong influence on his country’s economy, as 85% of Hungary’s exports were meant for other countries on the European continent. However, he slammed the idea that Europe should simply be represented by Brussels alone.

“We are Europe and we do not need to meet the expectations of tired and disillusioned elites of Brussels. There were times when we believed that Europe is our future but now we know that we are the future of Europe”, Orban said as translated by Euronews.

Founder of the Open Society Foundations and a proponent of liberal activism and open borders George Soros, has often been criticised by Orban for allegedly interfering in Hungary’s internal politics. The Orban government has been carrying out a crusade against Soros-related organisations in the state since 2017, criticising the billionaire for promoting increased migration to the country and thus threatening Hungary’s security and national identity.

February 17, 2020 Posted by | Economics | , | Leave a comment

Are House Republicans Undermining President Trump’s Climate Policies?

By Eric Worrall | Watts Up With That? | February 16, 2020

Are some House Republicans going soft on climate policy? The house defied President Trump on cutting wasteful R&D spending on renewables, R&D which cannot possibly deliver value for money. What else is happening behind the scenes?

What a Republican Climate-Change Agenda Might Look Like

By ALEX TREMBATH
February 13, 2020 6:30 AM

Republican leaders in Congress have started to hash out policies to address the problem. Here’s what they should focus on.

For the first time in a long time, Republicans seem engaged on climate change. As concern over the issue surges among younger Republicans and sweeping Democratic proposals demand an answer from the right, GOP lawmakers have come forward with bills of their own to address the problem. The top Republican in the House, Kevin McCarthy, recently sat down with Axios’s Amy Harder to outline the biggest goals of a Republican climate-change agenda, namely:

• Carbon capture, with a focus on natural solutions such as more trees and improved soil-management (what President Trump called the “trillion trees initiative” in his State of the Union Address);
• Clean-energy innovation; and
• Conservation and recycling, with a focus on plastic waste.

Start with innovation: Republicans should demonstrate a commitment to it beyond “basic science,” backing carbon capture, nuclear energy, renewables, and other clean-energy technologies. And, by all accounts, they appear ready to do just that. They have reliably rejected President Trump’s proposals to slash clean-energy RD&D (research, design, and development) funding from the budgets of the Department of Energy and other federal agencies. In just the past two years, they have co-sponsored, introduced, and/or helped pass policies to accelerate demonstration and deployment of nuclear-energy and carbon-capture technologies, including the Nuclear Energy Leadership Act (NELA), the USE IT Act, and the Section 45Q tax credit for carbon removal.

An agenda resembling what I’ve laid out here would boost American investments in technology and enterprise, increase American exports, improve American energy independence, support the development of a domestic clean-energy industry that can compete globally, support the domestic agriculture sector, and eliminate one of the biggest and most widely hated of all subsidies. Add it all together and you have not only a credible package of climate policies but a credible Republican one.

Read more: https://www.nationalreview.com/2020/02/republican-climate-change-agenda-innovation-carbon-capture/

Obviously there is a lot of speculation in the article, so we can’t know for sure what is really happening in the heads of senior house republicans. But what a waste of resources the proposed policies would be.

  1. Carbon capture would make electricity far more expensive, and would potentially create terrifying new risks. Large concentrations of CO2 near inhabited areas are dangerous – a large natural CO2 release in Africa in 1986 killed most people and animals within 15 miles of the source, causing a loss of life comparable to the effects of a large nuclear explosion.

    A release of this magnitude near a densely populated US city would be an unimaginable disaster. The sheer volume of CO2 which would have to be managed by a serious carbon capture scheme would create a substantial risk of a major accident.

    Unbreathable concentrated CO2 is denser than air. After a large release the CO2 tends to hug the ground, displacing normal air and suffocating anyone unlucky enough to be caught in the cloud.

  2. Innovation won’t fix renewables, so innovation spending on renewables is a waste of money. Even 100% efficient renewables would not be a viable replacement for fossil fuel. They’re just too intermittent, require too much material to construct, and take up too much space. In 2014 a group of Google engineers discovered to their horror there is no viable path to 100% renewable energy.
  3. Conservation and recycling – why? I don’t think any of us have a problem with commercially viable recovery of material, funded by private companies. As a kid I used to make pocket money collecting soda cans, until the government messed up my pocket money business with taxpayer funded recycling bins. Money governments waste on taxpayer funded recycling schemes is money which cannot be spent on hospitals, police, roads or schools.

There is no route to pleasing everyone on this issue. If House Republicans openly make a break for bipartisan climate policies, their support in coal states and manufacturing centers will evaporate.

Worse, anything more than token climate action inevitably leads to economic hardship and job losses If there is one thing which will lose a politician votes, that thing is tanking the economy.

What about those young climate activist Republicans whose heads have been messed up by the education system? They exist, especially in universities. But the right thing to do is surely to try to help them get their heads straight, rather than promoting token climate policies in an effort to appease their global warming delusions.

February 16, 2020 Posted by | Economics, Science and Pseudo-Science | , | Leave a comment

Do ‘green’ buses pass the performance test?

Do they even pass basic energy, environmental, economic and human rights tests?

By Duggan Flanakin | Watts Up With That? | February 15, 2020

Should Americans follow China in a massive commitment to supposedly eco-friendly battery-electric buses (BEBs)? California has mandated a “carbon-free” bus system by 2040 and will buy only battery or fuel cell-powered buses after 2029. Other states and cities are following suit.

Vehicle decisions are typically based on cost and performance. Cost includes selling price plus maintenance, while performance now includes perceived environmental impacts – which for some is the only issue that matters. But that perception ignores some huge ecological (and human rights) issues.

China today has 420,000 BEBs on the road, with plans to reach 600,000 by 2025. The rest of the world has maybe 5,000 of these expensive, short-range buses. However, the Chinese still get 70% of their energy from coal, so are their BEBs really that green? Are they safe? And are they really ethical?

Battery costs are the main reason BEBs today are much more expensive than buses that run on diesel or compressed natural gas. But bus makers say electric buses require less maintenance, and climate activists say the lower net “carbon footprint” (carbon dioxide emissions) justifies paying a little more.

China gets around the up-front cost problem by establishing national mandates, heavily subsidizing bus (and battery) manufacturers, and rewarding cities that replace entire bus fleets at one time. This ensures that their factories benefit from economies of scale – and that the transition will be swift and complete.

Beijing simply dodges the environmental costs by ignoring the fossil fuels, horrific pollution and human illnesses involved in mining, ore processing and manufacturing processes associated with building the buses. California and other “renewable” energy advocates do likewise. In fact, those costs will skyrocket as China, and the world emphasize electric vehicle, wind, solar and battery technologies.

Meanwhile, the USA and EU nations focus on subsidizing passenger cars. Thus, there are far more zero-emission passenger cars on the road today in the U.S. and Europe than public transit vehicles. No wonder Westerners still view electric vehicles as subsidized luxuries for the “woke wealthy,” who boast about lowering their carbon footprint, despite also often needing fossil fuel electricity to charge batteries.

The huge costs for fast-charging stations across Europe, let alone the vast United States, pose more huge challenges for future expansion of the electric vehicle market. But transit vehicles, even school buses, run regular routes, and if the routes are short enough, the bus can be recharged overnight in the garages.

Tax credits, free HOV lane access, free charging stations and other subsidies for the rich are seen by most as terrible policies. Yet another, says University of California–Davis researcher Hanjiro Ambrose, is the Federal Transit Administration funding formulas that favor short-term cost-efficiency over long-term innovation. “Those funding mechanisms haven’t been aligned with trying to stimulate policy change,” Ambrose says. “The cheapest technology available isn’t usually the newest technology available.”

To work around high upfront battery costs, innovative capitalists are creating new financial products that allow fleet owners to finance battery purchases. Treating battery costs the same way as fuel costs – as ongoing expenses – meets federal guidelines. Matt Horton, chief commercial officer for U.S. BEB maker Proterra, says, “The importance of the private capital coming into this market cannot be understated.”

Green advocates admit the primary reason people choose EVs is their belief that electric cars and buses, even with electricity generated from fossil fuels, are good for the environment. The Union of Concerned Scientists claims BEBs are 2.5 times cleaner in terms of lifespan emissions than diesel buses. That is highly questionable. Moreover, BEBs with today’s strongest batteries can take a full load no more than 150 miles in good weather. That’s fine for airport shuttles, maybe even for short public transit routes.

However, electric battery life is shorter than the 12-year vehicle life that many transit and school bus systems rely upon in their budgets. Battery replacement for BEBs is very expensive and unpredictable.

And then there are the horror stories. Los Angeles Metro purchased BEBs from Chinese-owned BYD Ltd. but yanked the first five off the road within a few months. Agency staff called the buses “unsuitable,” poorly made, and unreliable for more than 100 miles. Albuquerque returned seven out of its 16 BYD buses, citing cracks, leaking fluid, axle problems and inability to hold charges.

French journalist Alon Levy reported that BEB sales teams in Vancouver admitted their buses could not run for an entire day without recharging during layovers. Worse, in Minneapolis, bus performance suffers tremendously in cold weather: at 20o F buses cannot last all day; on Super Bowl Sunday, at 5o F, a battery bus lasted only 40 minutes and traveled barely 16 miles. Imagine being in a BEB in a blizzard.

In largely rural Maine, lawmakers proposed converting all school buses to BEBs. But Maine Heritage Policy Center policy analyst Adam Crepeau found that BEBs can travel no more than 135 miles per charge (in good weather), while diesel buses go up to 400 miles and can be refilled quickly almost anywhere. “This,” he said, “will severely impact the ability of schools to use them for longer trips, for sporting events, field trips and other experiences for students.” Or in bitterly cold Maine winters.

The economic and practical bottom line is simple. Activists and sales teams are pressing American cities, school boards and other public entities to follow China and convert their fleets to BEBs, calling them “the wave of the future.” Even in California, where lengthy power outages have become routine, this climate and anti-fossil ideology dominates. Given the growing vulnerability of our electric grid, among other concerns, cost and performance may not be the only considerations in making such an irreversible choice.

The environmental and ethical bottom line is equally simple – but routinely gets shunted aside.

Electric vehicles require about three times more copper than internal combustion equivalents – plus lithium, cobalt and other metals for their batteries. Wind turbines need some 200 times more steel, copper, plastics, rare earths, concrete and other materials per megawatt than combined-cycle gas turbines. Photovoltaic solar panels have similar materials requirements. 100% “renewable, sustainable” Green New Deal electricity systems on US or Chinese scales would require millions of turbines, billions of solar panels and billions of half-ton Tesla-style battery packs for cars, buses and backup electricity storage.

Those technologies, on those scales, would require mining at levels unprecedented in world history! And the environmental and human rights record we’ve seen for those high-tech metals is terrifying.

Lithium comes mostly from Tibet and the Argentina-Bolivia-Chile “lithium triangle,” where contaminated lands and waters are poisoning fish, livestock, wildlife and people. Most cobalt is mined in the Democratic Republic of Congo, where 40,000 children and their parents slave in open pits and dark, narrow tunnels – and get exposed constantly to filthy, toxic, radioactive mud, dust, water and air. Broken bones, suffocation, blood and respiratory diseases, birth defects, cancer and paralysis are commonplace.

Nearly all the world’s rare earth elements come from Inner Mongolia. Mining the ores involves pumping acid into the ground and processing them with more acids and chemicals. Black sludge from the operations is piped to a huge foul-smelling “lake” that is surrounded by formerly productive farmlands that are now so toxic that nothing can grow on them, and people and wildlife have just moved away. Here too, severe skin and respiratory diseases, cancers and other terrible illnesses have become commonplace.

In many of these cases, the mining and processing operations are run by Chinese companies, under minimal to nonexistent pollution control, workplace safety, fair wage, child labor or other basic standards that American, Canadian, Australian and European companies are expected to follow.

And this is just for today’s “renewable, sustainable, ethical, Earth-friendly, green” technologies. Just imagine what we are likely to see if China, California, New York, Europe and countless other places start mandating a fossil-fuel-free future – and then shut down nuclear power, to boot. Where will we get all the raw materials? Where will we put all the wind turbines, solar panels, batteries and transmission lines?

The prospect is horrifying. And it’s all justified by exaggerated fears of a climate apocalypse. Crazy!

Duggan Flanakin is director of policy research for the Committee For A Constructive Tomorrow (CFACT).

February 16, 2020 Posted by | Economics, Environmentalism, Science and Pseudo-Science | , | Leave a comment

Syria: M5 highway secured, time for truce

Syrian forces took control of  M5 highway connecting economic hub of Aleppo to Damascus and other key population centres to Jordanian border, February 12, 2020.
By M. K. BHADRAKUMAR | Indian Punchline | February 13, 2020

The de-escalation talks between Moscow and Ankara over the Russian-backed offensive by the Syrian government forces in the northwestern province of Idlib didn’t help defuse tensions.

On the contrary, Turkish-Syrian tensions cascaded and an unraveling of the Russian-Turkish entente may ensue.

Another Turkish delegation is due to visit Moscow to discuss Idlib. This follows visits by two Russian delegations to Turkey last week and a phone conversation between President Vladimir Putin and President Recep Erdogan on Wednesday.

Turkey is hanging tough. Erdogan threatens to hit Syrian army and push it behind the 12 Turkish observation posts in Idlib by the end-February. He warns that unless Syrian forces retreat, Turkey will expand its offensive. He also signals that air strikes by Syrian and Russian planes in Idlib will be countered.

According to Erdogan, if the Syrian government establishes complete control over the country, it could threaten Turkey’s security and stability. He has backed his words by moving hundreds of tanks and heavy armour into Syria and significant troop deployments in Idlib.

Meanwhile, the Russian Defence Ministry announced earlier today in Moscow that “a vital transport corridor in Syria — the M5 highway linking the besieged northern capital Aleppo with Syria’s southern cities (Hama, Homs and Damascus) — has been liberated from terrorists.”

The Syrian news agency SANA further elaborated that in operations on Wednesday, Syrian forces gained control of the Aleppo countryside to the west of M5 highway, which are regions previously held by extremist groups — principally, the al-Qaeda group known as Jabhat al-Nusra,  supported by Turkey.

In sum, the Russian-Syrian operations in Idlib have reached a defining moment — control of the M5 highway. The Russian Defence Ministry highlighted that control over the M5 highway is a game changer.

Indeed, Turkey understands this fully well too. A commentary on Wednesday by TRT World, Turkish state media, described M5 highway as “the key to controlling Syria”. It explained,

“The M5 highway is also critical in linking Syria with the Jordanian border and in the recent past to Turkey’s southern city of Gaziantep, an industrial hub and a centre for imports and exports. … Functioning as the backbone of the national road network, the M5… has economic importance because it connects the city of Aleppo, which was the industrial capital, with Damascus and also continued to the southern border that was the main highway for transit trade.

“The M5 motorway has further critical extensions to the port of Tartus, home to Russia’s only naval base in the Mediterranean, and Latakia, the home of the Assad family clan and Russia’s largest electronic eavesdropping post outside its territory…

“The recent Assad regime offensive and capture of Saraqib, a town at the intersection between the M4 and M5 in Idlib province, was a strategic coup. Not only did the regime open up a critical part of the M5 motorway leading to North Aleppo but also west to the M4 highway leading to Jisr Al Shughur one of the largest cities in Idlib province and still under rebel control from there to Latakia. Beyond the strategic importance of the highway for anti-regime rebels, controlling the M5 would have meant the physical collapse of the authority of Syrian regime leader Bashar al Assad.”

In retrospect, notwithstanding the warnings and threats held out by Turkey, Moscow was determined for good reason that the operation must be carried froward to its logical conclusion, namely, liberation of M5 from the clutches of the al-Qaeda terrorist groups.

Turkey may not like that it has been checkmated. The entire Turkish strategy of using terrorist groups as proxies in the 9-year Syrian conflict is crumbling. The battle-hardened al-Qaeda fighters fleeing Idlib in their thousands may flock to Turkey, which could pose an ugly security situation.

Since 2016, Turkey resorted to a strategy of carving out Syria’s northern territories as its “sphere of influence”, but that strategy  is no longer sustainable.

On the other hand, the truce reached through the Astana and Sochi talks with Russia and Iran lies in tatters. Turkey’s best bet will be to improve its negotiating position and thereafter seek a new equilibrium with its Astana partners.

But how would Turkey navigate to that point? For Moscow and Damascus, control of M5 highway is non-negotiable. Erdogan claims Turkey would contest Damascus’ (and Russian) monopoly over air space. But Turkish air force stands much diminished after the huge purge of officers following the US-backed coup attempt in 2016.

Erdogan will think twice before confronting Russia militarily. The nice words of solidarity from US officials notwithstanding, he’d know that the US-Kurdish axis is pivotal to Washington’s Middle East strategy.

In fact, the US military is already fishing in troubled waters to regain control of border regions with Kurdish population in northeast Syria, which it vacated in a hurry last October following President Trump’s impetuous declaration on troop withdrawal from Syria (which he revoked subsequently.)

Turkey needs to reconcile with the inevitability of the Syrian leadership pressing ahead with plans to regain control of the entire country. That is to say, Russia and Syria may adopt a “salami tactic” and keep hunting down the residual al-Qaeda terrorists.

Turkey’s options have dried up. The way out is to cut losses, which is best done by reaching a renewed understanding with Russia and Iran. The priority should be that Turkey’s core interests are not in jeopardy, especially the Kurdish conundrum in northern Syria.

Clearly, Putin’s priority is to end the conflict and stabilise the Syrian situation. There shouldn’t be a conflict of interests with Turkey. The alternative is for Turkey to team up with the “spoilers” —  the cold warriors in Washington who do not want Russian presence in the Mediterranean and the Saudi regime with its antipathy toward Iran’s rise.

Therefore, a rebalancing of the Turkish-Russian entente is possible — and is to be expected. Moscow keeps good contacts with Kurds and Damascus has common interests with Ankara in regard of Kurdish problem.

Turkey’s border security is best addressed by fortifying the cardinal principle in inter-state relationships — non-interference in the internal affairs of neighbouring countries.

February 13, 2020 Posted by | Economics, Illegal Occupation | , , , | Leave a comment

Sudan to Compensate Families of USS Cole Victims

teleSUR | February 13, 2020

The new Sudanese government has agreed to compensate the families of sailors killed in an Al-Qaeda attack on the USS Cole warship 20 years ago, state news agency SUNA said on Thursday, part of government efforts to remove the country from a list of state sponsors of terrorism.

The report said the settlement had been signed on Feb. 7. It did not mention the amount paid in compensation, but a source with knowledge of the deal, speaking on condition of anonymity, said that Sudan had agreed to settle the case for $30 million.

The 17 sailors were killed, and dozens of others injured, in the attack on Oct. 12, 2000, when two men in a small boat detonated explosives alongside the Navy guided missile destroyer as it was refueling in the southern Yemeni port of Aden.

Khartoum agreed to settle “only for the purpose of fulfilling the condition set by the U.S. administration to remove Sudan from its list of state sponsors of terrorism”, SUNA said, citing the justice ministry.

Being designated as a state sponsor of terrorism makes Sudan ineligible for desperately needed debt relief and financing from lenders such as the International Monetary Fund and World Bank.

Removal from the list potentially opens the door for foreign investment.

“The government of Sudan would like to point out that the settlement agreement explicitly affirmed that the government was not responsible for this incident or any terrorist act,” the justice ministry said in its statement, cited by SUNA said.

The announcement comes two days after Khartoum and rebel groups agreed that all those wanted by the International Criminal Court for alleged war crimes and genocide in the Darfur region should appear before the tribunal. The list includes Sudan’s ousted president Omar al-Bashir.

The U.S. sailors’ relatives had sued Sudan under the 1976 Foreign Sovereign Immunities Act, which generally bars suits against foreign countries except those designated by the United States as a sponsor of terrorism, as Sudan has been since 1993.

Sudan did not defend against the claims in court. In 2014, a trial judge found that Sudan’s aid to al Qaeda “led to the murders” of the 17 Americans and awarded the families about $35 million, including $14 million in punitive damages.

Sudan then tried to void the judgment, arguing the lawsuit was not properly served on its foreign minister, violating notification requirements under U.S. and international law.

The U.S. Supreme Court turned down the bid by the families last year.

February 13, 2020 Posted by | Economics | , , , | Leave a comment

Audit Reveals The High Cost Of Toll Roads

TheNewspaper.com | February 7, 2020

Financial analysis of major toll road systems finds substantial diversion of revenue to third parties.

Of the billions of dollars collected at toll booths around the country, nearly half of the money goes to overhead costs, profit for the private companies involved and other uses that have nothing to do with the road itself. That is the finding of a financial audit released last week by the American Transportation Research Institute (ATRI), which conducted the analysis on behalf of the trucking industry. The report examined financial records for major toll road networks that together collected $14.7 billion in revenue in 2018.

“The findings indicate that the 21 major tolling systems analyzed collect revenue in excess of the actual direct costs of operations and interest expense, with nearly 50 percent of toll revenue diverted to other uses,” the report concluded. “This excess revenue is diverted in a number of ways based upon the individual agency or state that supervises the toll entity. The magnitude of diversion and the lack of standard practice with regard to revenue diversion speaks to the disjointed control under which toll entities operate.”

The roads covered in the report represent 82 percent of all tolls collected in the country. The full nationwide toll network generates an estimated $18 billion in revenue each year. Of that revenue, 15.8 cents on every dollar goes to the cost of collecting the toll itself. Another 26.8 percent goes to the cost of interest and 20.5 percent is diverted to non-road use such as transit, undermining the “user pays” argument used by tolling advocates.

The report found tolls tend to increase far in excess of the rate of inflation — up 72 percent over the last ten years, compared to the consumer price index the went up 16.9 percent in the same period. The data show the number of individual transactions at each toll road only went up 28 percent, while traffic volume increased 2.4 percent. Toll roads received $1.1 billion in taxpayer subsidies.

The report noted that by comparison the cost of collecting the federal fuels tax was just 0.2 percent of the revenue collected. While some have argued that gas tax revenue is no longer viable because this income source is on the decline, the latest federal statistics show Americans used 147 billion gallons of gas in 2018 — an all-time high. Preliminary data for 2019 show gas tax revenue rising for an eighth straight year.

Source: PDF File Financial Analysis of Toll System Revenue (American Transportation Research Institute, 1/31/2020)

February 11, 2020 Posted by | Corruption, Economics | | Leave a comment

Russian oil & gas firms plan to invest $20 BILLION in Iraq’s energy industry

RT | February 11, 2020

Russian oil and gas companies could triple their investments in Iraq in the near future, Yury Fyodorov, first deputy chairman of the Economic Policy Committee at the Russian Federation Council, has announced.

The companies may spend up to $20 billion on oil projects in Iraq, Fyodorov said at a meeting with Iraqi Ambassador to Russia Abdul-Rahman Al-Husseini, according to Russian media.

“Today, our leading oil and gas companies such as Lukoil, Bashneft, Gazprom Neft are actively working in your country. The total investment has exceeded $10 billion,” the official said on Monday. He added that other companies, such as Zarubezhneft, Tatneft, and Rosneftegaz are also interested in working in Iraq.

“We are exploring the possibility of diversifying the activities of Russian operators, in particular by connecting them to the gas sector. According to preliminary forecasts, this could triple our companies’ investment.”

Last year, Russia and Iraq resumed cooperation in energy infrastructure, and in the electricity sector in particular. Some Russian firms could help Baghdad with the restoration and development of electric power facilities, while negotiations are under way over the construction of thermal power plants using the assistance of Russian companies.

Iraq’s proven oil reserves stand at over 145 billion barrels, while gas reserves exceed 3.7 trillion cubic meters.

February 11, 2020 Posted by | Economics | , | Leave a comment

Irish election result is a victory for Nationalism

By Johanna Ross | February 11, 2020

Once upon a time Gerry Adams, the leader of Ireland’s nationalist party, Sinn Fein, could not be heard speaking on the BBC. He was branded a terrorist and his voice was dubbed. How times have changed. Now his party, led by Mary Lou McDonald, has stormed to victory in the Irish elections. Having won the largest percentage of the vote at 24%, Sinn Fein has ended the decades long domination of Fine Gael and Fianna Fail in what was effectively a two-party political system.

McDonald now seeks to form a government with other left-wing Irish parties and although she doesn’t expect to form a coalition with Fine Gael or Fianna Fail, she would still participate in talks with representatives of the parties: “I also have consistently said that I will talk to and listen to everybody, I think that is what grown-ups do and that is what democracy demands.”

Fianna Fail’s leader, Michael Martin, said however that there were ‘significant incompatibilities’ to working with Sinn Fein. His party, along with Fine Gael have cited Sinn Fein’s previous links to the Irish Republican Army (IRA) – the paramilitary group – as a reason for not working with them. However Mary Lou McDonald has said it is “not sustainable” for either party leader to rule out talks with Sinn Fein. Given the sizeable chunk of the Irish population that voted for her party, you can see she has a fair point.

The Taioseach, Leo Varadkar, has now been forced to admit that Ireland has a three-party system. It may be a marginal win, and one which will force Sinn Fein into a coalition, but it is nevertheless a highly significant turn of events. Although the party won due to its left-wing domestic agenda and promises to combat poverty and rising homelessness, it cannot be ignored that this win is part of a broader, Europe-wide trend. Nationalism is on the rise across Europe, call it populism if you will, but people are increasingly voting for parties which put the nation state first over further European integration. Centrist parties are failing to compete with those offering a nationalist, eurosceptic agenda.

People don’t like to be dictated to. The arguably authoritarian decision by state broadcaster RTE not to include Mary Lou Mcdonald in their leaders’ debate quite possibly only generated more support for her party. It was reported that prior to the election Sinn Fein sent the broadcaster a legal letter asking it to reverse its decision. The Irish establishment will now have to catch up with the reality that Sinn Fein is now an equal player in the political landscape, and a force to be reckoned with.

The nationalist vibe in the air has now awoken the idea of Irish unity. A poll conducted earlier in 2019 demonstrated that two thirds of Irish people are now supportive of Irish reunification. Of 3000 people questioned, 65% said they were in favour of northern and southern Ireland becoming one nation again. Brexit, which has brought with it a surge in English nationalism, along with a Westminster government increasingly detached from the reality of the everyday struggles of working people, has encouraged more people north and south of the Irish border to rethink their stance on a topic few dared to broach in the past due to the violent conflict between nationalists and unionists. Under the Good Friday Agreement, it is indeed possible for Northern Ireland to secede the United Kingdom if a referendum result were to decide this.

Sinn Fein’s stance on the EU is not entirely clear-cut, but the win could be interpreted as a victory for Euroscepticism. The party is against further European integration, campaigned for a ‘No’ vote in the Irish referendum on joining the European Economic Community in 1972 and criticised the proposal of a European Constitution in 2002. Although it did support Britain remaining in the EU in the run-up to the 2016 EU referendum, it has criticised the European Union in the past for its policies of neoliberalism. When it comes to post-Brexit trade talks with the UK, the new Irish government with Sinn Fein at the helm is likely to take a tougher stance.

In addition, it’s likely that under Mary Lou McDonald’s leadership, we will see a referendum on Irish unity. If the outcome is for unification, it will put more pressure on a UK government currently facing a real threat from growing Scottish nationalism. As Irish and Scottish nationalist movements gain popularity, the United Kingdom cannot be taken for granted any longer. As elections continue to demonstrate, the status quo is under threat and it’s becoming increasingly possible that we will see the dissolution of the United Kingdom within our lifetimes.

Johanna Ross is a journalist based in Edinburgh, Scotland.

February 11, 2020 Posted by | Economics | , , , | Leave a comment

China, Russia to Defy US Sanctions Over Support to Venezuela

teleSUR | February 10, 2020

The Russian government on Monday rejected the U.S. threats to impose new sanctions against several Russian companies for their cooperation with Venezuela in the oil sector.

Last week, the United States special representative for Venezuela, Elliott Abrams, warned Russia that its support for Venezuela will cost them economically as Washington is looking to sanction them.

“We classify this practice as harmful, we believe that many countries suffer because of this practice, we consider it contrary to international law,” Kremlin spokesman Dmitri Peskov told reporters Monday in regards to Washington’s plans.

“The United States, especially, and several other countries, unfortunately use these trade and other restrictions very frequently against third world countries, which are illegal under international law.”

Peskov added that “they use this practice more and more often in recent times to ensure their own interests in international commercial and economic affairs.”

Also, spokesman Peskov stressed that Russia categorically opposes this practice.

On the other hand, in Beijing, Foreign Ministry spokesman Geng Shuang, in a media briefing session offered online, said China is against any foreign interference in the internal affairs of Venezuela and against the application of unilateral sanctions.

The United States imposed sanctions on the airline Conviasa, the largest airline in Venezuela.

The Treasury Department published on its website that the Office of Foreign Assets Control (OFAC) included 40 aircraft of this airline in the list of specially designated nationals and blocked persons (SDN).

“China’s position on the problem of Venezuela is clear and remains unchanged. We stand against any foreign interference in the internal affairs of Venezuela and against unilateral sanctions,” said the diplomat.

Since 2019, the United States in particular, and some other countries due to pressure from Washington, began applying new sanctions to Caracas, which seriously affected its economy, people’s lives and Venezuela’s relations with other nations, Geng Shuang recalled.

“We urge other countries to take into account the humanitarian reality of Venezuela, stop imposing unilateral and extraterritorial sanctions, and work to create necessary conditions that will lead to the stability of their economic growth,” said Geng.

February 10, 2020 Posted by | Economics | , , , | Leave a comment