Caspian Sea Convention Bans Military Presence of Non-Littoral States in Region
RT | August 12, 2018
Vladimir Putin attended the Caspian Sea summit in Kazakhstan which he said has “milestone” significance. There five littoral powers finally made a breakthrough on trade, security and environment following 20 years of talks.
This year’s meeting has been “an extraordinary, milestone event,” Russian President Vladimir Putin told his counterparts in Kazakhstan’s port city of Aktau, where the summit took place. Leaders of the Caspian Five came there to seal a convention on the legal status of the sea washing shores of Azerbaijan, Iran, Kazakhstan, Russia and Turkmenistan.
“It is crucial that the convention governs … maritime shipping and fishing, sets out military cooperation among [Caspian] nations and enshrines our states’ exclusive rights and responsibilities over the sea’s future,” Putin said. He added the landmark accord also limits military presence in the Caspian Sea to the five littoral countries.
From now on, no country from outside the region will be allowed to deploy troops or establish military bases on the Caspian shores. The five states themselves will also decide on how to deal with issues currently affecting the Caspian Sea region, such drugs and terrorism.
“Hotspots, including Middle East and Afghanistan, aren’t far away from the Caspian Sea,” the President stated. “Therefore, the very interests of our peoples require our close cooperation.”
The summit may give boost to digitalization of commerce, mutual trade and logistics, Putin suggested. “Transportation is one of key factors of sustainable growth and cooperation of our countries,” he argued. Additionally, the five states will establish the Caspian Economic Forum “to develop ties between our countries’ businesses,” Putin told.
The Caspian Sea is home to some 48 billion barrels of oil and 292 trillion cubic feet of natural gas in proven offshore reserves. A range of important pipelines are going through the Caspian Sea, connecting Central Asia and Caucasus with the Mediterranean.
New US Anti-Russia Sanctions Made to Head Off Senate-Proposed Sanctions – Expert
Sputnik – August 11, 2018
Russian Prime Minister Dmitry Medvedev said that the new sanctions the US plans to introduce might be treated as a declaration of economic war. Radio Sputnik discussed this in detail with independent political analyst Gilbert Doctorow.
Sputnik: What is your take on the statement made by the Russian prime minister? Can the sanctions lead to economic warfare between Moscow and Washington?
Gilbert Doctorow: There’s been a low-grade economic warfare going on for several years ever since the initial introduction of sanctions going back at least two years. The question is what is new here and we really don’t know. The markets reacted severely; the ruble fell drastically. Certain Russian shares like Aeroflot or Sberbank were beaten down five percent and more in the first reactions to the announcement of the United States. But the fact is that the real harm to the Russian economy is coming from the first sanctions. And for the greater sanctions scheduled three months after the introduction, after Russia has proven it is unable to take responsibility for the Skripal poisoning and face the consequences; we may assume that Russia will not admit to having taken part in something that it didn’t participate in. Both the initial sanctions and those that would come in place three months later have not been specified, so to speak about the severity of this particular action by the [US] administration is premature. Nonetheless, I do adhere to one interpretation of what is happening that makes some sense to me: namely, these new sanctions, with respect to the Skripal case, were introduced by the Trump administration to head off what had been described as draconian and genuinely nuclear button sanctions that members of the US Senate have intended to impose on Russia, from a bill introduced by (…) and those sanctions, which genuinely take you to very limits of economic warfare at the level of hostility that very often is jumping off point to armed conflicts, those sanctions would be prevented or sidelined by the more modest sanctions that are announced by the administration. This is the interpretation that I pass on; I think it makes a lot of sense. The level of US-Russian trade has never been very high and that is one of the reasons why it has always been a cheap and easy thing for the American Congress to do – to impose sanctions or otherwise limit Russia’s commercial and foreign policy possibilities in the world by unilateral US action. That always has been very cheap for the United States because the whole volume of bilateral trade has been minimal. The commercial interests of the US and Russia have never been matched in a way that Russia’s interests are matched with the EU and, more recently, with China. If these new sanctions fell on Russia absent any other trade developments or other foreign policy initiatives by the United States’ third parties then one could get very excited about it, but considering that Donald Trump has begun a very bitter trade war with China, with which it has at least $500 billion in trade, possibly to be held ransom to new tariffs up to 25 percent, these sanctions that the United States is considering imposing on Russia such as suspending Aeroflot flights, which only would put Aeroflot in the same status with Delta, since at the moment Aeroflot is the only surviving supervisor of direct air links, or somehow affecting the situation with Sberbank. When you consider the dollar value of these sanctions, they are incredibly small compared to what the United States is doing with China and is threatening to do with the EU in the tariff war. Therefore, you have to put the Russian situation in this broad context of US economic aggression against the rest of the world.
Sputnik: What’s your take on the situation generally?Gilbert Doctorow: It will very much depend on the November mid-term elections in the United States. What we are seeing now from the point of Mr. Trump’s enemies in the Senate, both enemies within his own party and enemies, most obviously, in the Democratic Party, is a scrambling for positions that these respective politicians will place before the electorate for the November elections. If Donald Trump loses control of both Houses of Congress then he will be impeached. If he loses control of one House then we will see a continuing fight between the executive and the legislative over policy towards Russia. Russia is really a political football in the US for the partisans who are playing out their antagonisms and reaching out the electorate to take or to retain control of Congress. The thing to watch is what happens in November. The Russian economy has been preparing for this type of activity for some time and I think that the Russian economy is quite resilient or will find its footing very quickly when the particulars are announced. The Russians have held back, they have been very restrained. I think the thing to look at is at what moment will Russia pull the plug on its delivery of rocket engines to the United States. That is, perhaps, the single most important countermeasure that Russia has to respond to draconian sanctions from the US. If in the current round of Russian countermeasures we don’t see any mention of these rocket engines then you can assume that whatever Mr. Medvedev is saying publically, the Russian government is not taking as a serious threat the America administration’s posturing.
Sanctioning Russia for false link to UK poisonings ‘unacceptable & unlawful’ – Kremlin
RT | August 9, 2018
Dmitry Peskov, the press secretary of Russian President Vladimir Putin, says the use of a Russian link to recent UK poisoning incidents to justify fresh US sanctions against the Kremlin is a violation of international law.
“In general, of course it’s necessary to say that we consider it categorically unacceptable that the new restrictions, that we continue to consider unlawful, are associated with the Salisbury case,” Peskov said in his Thursday interview with reporters.
“The association with these events is unacceptable for us. And we are convinced that such restrictions, together with the ones that the American side has imposed preemptively, are totally unlawful and contradict international law.”
“Russia does not have, and it has never had, anything to do with chemical weapons’ use, this is out of question. Moreover, we cannot confidently discuss what was used in Great Britain and how it was used because we have no information whatsoever. We have received no answers to our proposal to the British side to hold joint investigation into this incident that causes serious concern on our part,” the Kremlin official added.
Peskov told reporters that he considered any speculation about the effect of sanctions on the Russian financial system unwarranted, because this financial system was very stable. He noted that this stability had been proven in previous standoffs and that the Russian authorities had taken deliberate measures to make the country’s finances capable of withstanding the unpredictable behavior of “partners across the ocean.”
He stressed that it was difficult to reconcile the latest unfriendly actions by the US with the atmosphere established during the recent summit between US President Donald Trump and Putin in Helsinki.
When reporters asked Peskov about a possible Russian response to new US measures, he insisted it was too early to discuss the issue because the official US statement and quotes in the media from certain high-ranking sources did not make clear Washington’s official position.
Earlier, the US State Department announced the plans to impose new sanctions on Russia over its alleged role in the poisoning of double agent Sergei Skripal and his daughter Yulia in the UK in March. The first package of sanctions is scheduled to come into effect on or around August 22 and will reportedly include a ban on exports of sensitive national security goods to Russia.
The second round of sanctions, which includes downgrading diplomatic relations, banning the Russian airline Aeroflot from flying to the US and cutting off nearly all exports and imports, will reportedly be imposed three months after the first one, unless Russian authorities provide “reliable assurances” that they won’t use chemical weapons in the future and agree to “on-site inspections” by independent monitors.
Earlier today senior Russian lawmakers called the planned restrictions unfounded and likened Washington’s behavior to actions of a police investigator who attempts to extract evidence from an innocent suspect using torture and threats.
Read more:
The knife in Iran’s back: Trump opens door to chaos
By Vijay Prashad | Asia Times | August 9, 2018
On Tuesday night, Iranian President Hassan Rouhani went on television to talk about the reinstatement of sanctions by the United States against his country. He prepared the country for more privations as a result of the sanctions. Responding to US President Donald Trump’s offer of a meeting, Rouhani said pointedly, “If you stab someone with a knife and then say you want to talk, the first thing you have to do is to remove the knife.”
It is clear to everyone outside the US government that Iran has honored its side of the 2015 nuclear deal that it made with the governments of the five permanent members of the United Nations Security Council (the US, the UK, France, China and Russia) as well as the European Union. In fact, quite starkly, EU foreign-policy chief Federica Mogherini said, “We are encouraging small and medium enterprises in particular to increase business with and in Iran as part of something that for us is a security priority.”
In other words, Mogherini is asking companies to resist Trump’s policy direction. What she is saying, and what Rouhani said, is that it is the United States that has violated the nuclear deal, and so no one needs to honor the US sanctions that have been reinstated.
Mogherini pointed to “small and medium enterprises” because these would not be the kind of multinational corporations with interests in the United States. But it is more than small and medium-sized enterprises that are going to challenge the US sanctions. China, Russia and Turkey have already indicated that they will not buckle under US pressure.
China
“China’s lawful rights should be protected,” said the Chinese government. China has no incentive to follow the new US position.
First, China imports about US$15 billion worth of oil from Iran each year and expects to increase its purchases next year. State energy companies such as China National Petroleum Corporation (CNPC) and Sinopec have invested billions of dollars in Iran.
CNPC and Sinopec also have shares in Iran’s major oil and gas fields – CNPC has a 30% stake in the South Pars gas field and has investments in the North Azadegan oilfield, while Sinopec has invested $2 billion in the Yadavan oilfield.
China’s Export-Import Bank, meanwhile, has financed many large projects in Iran, including the electrification of the Tehran-Mashhad railway. Other Chinese investment projects include the Tehran metro and the Tehran-Isfahan train. These projects are worth tens of billions of dollars.
Second, China is in the midst of a nasty trade war with the United States. In late August, Trump’s government slapped 25% tariffs on $16 billion worth of Chinese imports into the United States. China responded with its own tariffs, with its Commerce Ministry saying that the US was “once again putting domestic law over international law,” which is a “very unreasonable practice.”
The “once again” is important. China is seized by the unfairness of the reinstatement of sanctions on Iran, not only for its own economic reasons but also because it sees this as a violation of international agreements and a threat to Iranian sovereignty – two principles that China takes very seriously.
Sinopec, knee-deep in Iran’s oil sector, has now said that it would delay buying US oil for September. Iran has now been drawn into the US “trade war” (on which, read more here).
The Chinese have been quite strong in their position. The Global Times, a Chinese government paper, wrote in an editorial, “China is prepared for protracted war. In the future, the US economy will depend more on the Chinese market than the other way around.” This fortitude is going to spill over into China’s defense of Iran’s economy.
Russia
Russia and Iran do not share the kind of economic linkages that Iran has with China. After the 2015 sanctions deal, Iran did not turn to Russian oil and gas companies for investment. It went to France’s Total – which signed a $5 billion deal. Russia and Iran did sign various massive energy deals ($20 billion in 2014), but these did not seem to go anywhere.
Russia’s Gazprom and Lukoil have toyed with entry to Iran. In May, Lukoil directly said that it would be hesitant to enter Iran because of the proposed US reinstatement of sanctions. Lukoil’s hesitancy came alongside that of European companies such as Peugeot, Siemens and even Total, which decided to hold off on expansion or cut ties with Iran. Daimler has now officially halted any work in Iran.
It was a surprise this year when the Iranian Dana Energy company signed a deal with the Russian Zarubezhneft company to develop the Aban and West Paydar oilfields. The contract is for $740 million, which in the oil and gas business is significant but not eye-opening.
In July, senior Iranian politician Ali Akbar Velayati met with Russian President Vladimir Putin in Moscow. He left the meeting saying, “Russia is ready to invest $50 billion Iran’s oil and gas sectors.” Velayati specifically mentioned Rosneft and Gazprom as potential investors – “up to $10 billion,” he said.
When Putin was in Tehran last November, Russian companies signed preliminary deals worth $30 billion. Whether these deals will go forward is not clear. But after Trump’s reinstatement of sanctions, Russia’s Foreign Ministry said it would “take appropriate measures on a national level to protect trade and economic cooperation with Iran.” In other words, it would see that trade ties were not broken.
Turkey
Both Iran and Turkey face great economic challenges. Neither can afford to break ties. Turkish Foreign Minister Mevlut Cavusoglu has said that his government will only honor international agreements, and that the US reinstatement of sanctions is not part of an international framework. Turkey, therefore, will continue to trade with Iran.
Iranian oil and gas are crucial for Turkey, whose refineries are calibrated to Iran’s oil and would not be able to adjust easily and cheaply to imports from Saudi Arabia. Almost half of Turkey’s oil comes from Iran.
Turkish-US relations are at a low. Conflict over the detention of an American pastor, Andrew Brunson, has led to the US sanctioning two Turkish cabinet ministers, Justice Minister Abdulhamit Gul and Minister of Interior Suleyman Soylu. Gul is a leader of the ruling Justice and Development Party (AKP), while Soylu came to the party at the personal invitation of President Recep Tayyip Erdoğan. These are not men to be intimidated by US pressure.
A US mission led by Marshall Billingslea, assistant secretary of the US Treasury, went to Turkey to persuade the government to join the US sanctions. Meanwhile, the US has begun to put pressure on Turkey’s Halkbank, one of whose senior officials was found guilty of violation of the US sanctions on Iran by a court in the United States this year. This kind of pressure is not sitting well with the Turkish government.
Inside Iran
Pressure is mounting inside Iran. Protests have begun across the country, a reflection of the distress felt by the population as the country’s currency, the rial, slides and as fears of inflation mount.
Last week, the Iranian government fired the head of the central bank, Valiollah Seif, and replaced him with Abdolnasser Hemati. It reversed the foreign-exchange rules, including the failed attempt to fix the value of the rial that was put in place in April.
Hemati had been the head of Iran’s state insurance firm and before that of Sina Bank and Bank Melli. He is highly trusted by the government, which had already appointed him as ambassador to China before hastily rescinding that offer and moving him to the central bank. Whether Hemati will be able to balance the stress inside the Iranian economy is yet to be seen. Faith in the currency will need to be strengthened.
As part of that, Iran’s government has cracked down harshly against financial fraud, particularly scandals over foreign exchange. The man who signed the 2015 nuclear deal, Deputy Foreign Minister Abbas Araghchi, had to watch as his nephew Ahmad Araghchi, the central bank’s vice-governor in charge of foreign exchange, was arrested along with five other people as part of an inquiry over fraud. The message: No one, not even the Araghchi family, is immune from the long arm of the law.
Trump’s belligerence, the refusal of key countries to abide by Trump’s sanctions (including the European Union, but mainly Russia and China), as well as the internal pressure in Iran could very likely create the conditions for a military clash in the waters around Iran. This is a very dangerous situation. Sober minds need to push against the reinstatement of these sanctions – which the Iranians see as economic warfare – as well as escalation into military war.
This article was produced by Globetrotter, a project of the Independent Media Institute.
Trump’s Art of the Deal and Iran sanctions
By M K Bhadrakumar | Indian Punchline | August 4, 2018
An amicable formula seems to be emerging between the Trump administration on the one hand and China and India on the other hand as regards the impending US sanctions on Iran’s oil exports. Below-the-radar consultations are going on between Washington and Beijing and New Delhi.
The Trump administration initially threatened collateral damage to countries such as China and India unless they fell in line with the US diktat to stop all oil imports from Iran to zero by November 4. Oil is at the core of Trump’s containment strategy against Iran, since oil exports are a major source for income for Tehran and the American game plan is all about hurting the Iranian economy until its leadership capitulates and begs him for a meeting.
It’s a hackneyed notion to bully Tehran to make it bend. It never worked in these 40 years – not even under Barack Obama who enjoyed vast political capital in the international community. But the good thing about Trump is that behind the fire and fury, he’s a realist. (By the way, Iranians know it, too, as this utterly fascinating tongue-in-cheek commentary yesterday implies.)
So, after some rounds of diplomacy in world capitals (to test the waters, basically) – Beijing, New Delhi, Ankara, in particular, which are big-time buyers of Iranian oil – Washington began signaling that sanctions can also provide for ‘waivers’ – that is, Trump administration will selectively exercise the great privilege of deciding not to punish countries that may still want to buy Iranian oil after the November 4 cutoff date.
Quite obviously, from the feedback received from American diplomats, Washington senses great reluctance to pay heed to the US demarche. In particular, China and India (which account for over half of Iranian oil exports) are heavily dependent on Iranian oil – and, for good reason too. At least in the case of India, Iran offers oil at a discounted price on deferred payment basis with substantial reduction in freight and insurance costs.
Now, the US cannot possibly sanction the oil industry in China or India because Big Oil is also hoping to do business with them. (For shale oil, Asian market is the preferred destination.) Some analysts predict that Russia, which like America is also an energy superpower, will be a net gainer. Russia can cash in on the needs of China and India for oil; Russia can buy Iranian oil and sell it through swap deals and so on (and make some money in the bargain); or, Russia may even move into the Iranian oil industry in a big way and make investments there. At any rate, it is foolhardy for the US to imagine that it can control the world energy market in terms of price elasticity of supply.
In view of the above factors, the Trump administration is finessing an understanding with China and India whereby the US sanctions policy against Iran does not become an acrimonious issue. The interests to be reconciled are: a) China and India have legitimate interests in sourcing Iranian oil and it is unrealistic and counterproductive to coerce them; and, b) the US too has an abiding interest not to sanction the oil companies of China and India, which are prospective buyers of US oil.
The Bloomberg report, here, says that China has point blank refused to cut Iranian oil imports but may agree to keep imports at the existing level as of November 4. Interestingly, the report cites US officials heaving a sigh of relief: “That would ease concerns that China would work to undermine U.S. efforts to isolate the Islamic Republic by purchasing excess oil.” Plainly put, Washington is relieved that Beijing will not take advantage of the US sanctions against Iran.
On the other hand, the Reuters report on India, here, assesses that Indian imports of Iranian crude oil are dramatically increasing in recent months. A 30% increase is reported in July with crude imports from Iran touching record level of 768,000 barrels per day. (This is a whopping 85% jump over the corresponding period in July 2017, which was 415,000 bpd)!
Of course, if the US can allow China to keep its import of Iranian oil at the existing level as of November 4, it cannot deny a similar formula to India. And, therefore, doesn’t it make eminent sense that India keeps ramping up its oil imports from Iran to the maximum level possible by November 4?
Evidently, this is Trump’s Art of the Deal at work. By the way, for Iran too, this would provide some ‘sanctions relief’. Which in turn may even ‘incentivize’ Tehran to talk to Trump. If there is anything like a workable “win-win” in politics, this is it, this is it.
US Navy Considered $1 Billion Plan for Breaking Down Old Nuclear-Powered Carrier
Sputnik – 03.08.2018
The US Navy has yet to choose a way forward for dismantling the USS Enterprise aircraft carrier. The delay has been motivated in part by the fact that disposing of the nuclear-powered craft could cost more than $1 billion ‒ a pill the Navy is loathe to swallow.
The Government Accountability Office published a report Thursday indicating that in 2013 “the Navy’s cost estimate for the shipyard” in Puget Sound, Washington, “to perform all [USS Enterprise] dismantlement and disposal activities increased — from a range of $500 million to $750 million — to well over $1 billion.”
As a result of this rather significant expense — about 25 percent of what it cost to build the ship in 1958 in inflation-adjusted terms — the Navy decided to ditch the plans. As the ship, built between 1958 and 1961, was the world’s first nuclear-powered aircraft carrier, the government wants to take special care in dismantling it and must comply with stringent guidelines set in place by nuclear regulation bodies separate from the Navy.
There is also a policy precedent to be set by how the carrier is deconstructed, in terms of “the processes, costs and oversight that may be used to dismantle and dispose of nuclear-powered aircraft carriers in the future.” Specifically, the manner in which the Enterprise is disposed of will set an example for how to do the same thing with the US Navy’s aging fleet of Nimitz-class carriers.
One of the thornier issues when it comes to disposal of the carrier is what to do with the nuclear waste produced by its propulsion generators. In 2016, the Navy thought it would have commercial contractors bid for contracts to break down the non-nuclear parts of the ship — everything except what’s referred to as the propulsion space section.
As GAO conducted its study, the Navy decided to ditch this plan. Instead, the Navy is now considering two options for the USS Enterprise, the watchdog noted. One route would be to do most of the deconstruction in Puget Sound, and then dump the nuclear waste at the US Department of Energy’s Hanford Site in southeastern Washington state. The other route is for commercial contractors to do all the dismantling. There is no estimate provided in GAO’s report for how much each of these routes would cost the US Navy, and by extension US taxpayers.
Under the 100 percent commercial dismantling route, the US Navy needs to coordinate with the Nuclear Regulatory Commission (NRC), which has regulatory jurisdiction over the private nuclear industry, the GAO said. The Pentagon agreed with this recommendation, Stars and Stripes reported Friday.
Why US’ sanctions “bill from hell” on Russia should worry India
By M K Bhadrakumar | Indian Punchline | August 3, 2018
A fortnight after the Helsinki summit on July 16, US-Russia relations are set to take a turn for the worse. In an unprecedented move, White House fielded a joint media briefing by America’s top national security team on Thursday to highlight that Russia is continuing to make pervasive attempts to interfere in the upcoming mid-term elections in the US in November.
One of the top security czars who gave the briefing, National Intelligence Agency director Dan Coats said starkly, “We acknowledge the threat, it is real, it is continuing, and we’re doing everything we can to have a legitimate election. It is pervasive, it is ongoing, with the intent to … drive a wedge and undermine our democratic values.” Importantly, Coats alleged that the Kremlin was involved in the meddling effort which reached into the Kremlin itself.
He said, “Russia has used numerous ways in which they want to influence, through media, social media, through bots, through actors that they hire, through proxies – all of the above, and potentially more. We also know the Russians tried to hack into and steal information from candidates and government officials alike.” (Transcript)
The briefing served three purposes: one, to reject the denials of meddling that Russian President Vladimir Putin maade to President Trump at Helsinki; two, to neutralize the public criticism in the US that Trump has not been unequivocal on the issue; and, three, to give warning to Moscow.
The briefing coincided with a ‘bipartisan’ legislation that was introduced into the US Congress on Thursday to impose stiff new sanctions on Russia and combat cyber crime. The bill includes restrictions on new Russian sovereign debt transactions, energy and oil projects and Russian uranium imports, and new sanctions on Russian political figures and oligarchs. Interestingly, the proposed legislation underscores strong support for the North Atlantic Treaty Organization and expressly forbids the Administration from taking the US out of the alliance without two-thirds of the US Senate voting in favor of any such effort.
The senators who tabled the legislation said in a statement that the proposed new sanctions would target “political figures, oligarchs, and family members and other persons that facilitate illicit and corrupt activities, directly or indirectly, on behalf of Vladimir Putin.” According to some reports, the bill would also require a report to be assembled on the personal net worth and assets of Putin. Quite obviously, Putin himself is in the crosshairs.
Putin’s spirited defence of Trump at their joint press conference in Helsinki on the Russia collusion inquiry has provoked this furious backlash from America’s political class. In such a backdrop, another summit between Trump and Putin in a near future seems highly improbable. A visit by Putin to the White House in the autumn is simply out of the question. The US-Russia ties will remain very tense, too.
On the other hand, in a deceptive show of flexibility that will be keenly noted in New Delhi, US Congress has approved a legislation empowering the president to waive penalties against countries that buy weapons from Russia – provided, of course, Washington is convinced that such countries are seeking closer ties with the US. The US Defence Secretary James Mattis had pleaded with the US Congress for such Russia-sanction-waiver authority that would help countries such as India, which had traditional defence relations with Russia but are now trying to “pull away from the Russian orbit,” (as he put it.)
Evidently, the legislation on waivers is a self-serving move, enabling US arms manufacturers to continue to expand business opportunities in the Indian market. Under the new legislation, the president must nonetheless certify that India is both reducing arms imports from Russia and is expanding defense cooperation with the US, thereby making itself eligible for the waiver from sanctions. In effect, it becomes a tool for Washington to insert itself into the India-Russia defence cooperation as an interested party and to incrementally leverage Indian decisions with a view to atrophy the longstanding cooperation.
Clearly, the US interference in the India-Russia relationship is poised to intensify in the period ahead. If the proposed new sanctions “bill from hell” (tabled on Thursday) gets passed by the US Congress, which is to be expected, energy cooperation between India and Russia will also come under the American scanner. There is a strong business dimension to these US moves insofar as arms exports and energy cooperation also happen to be two thrust areas of export to India. Simply put, Washington hopes to roll back India’s defence and energy cooperation with Russia and seize the resultant business opportunities to boost its own exports to the Indian market.
In strategic terms, the US intention is to undermine the so-called “special privileged strategic partnership” between Russia and India, which would in turn erode the latter’s strategic autonomy and incrementally draw India into the American orbit as an ally.
US Senators Introduce Sanctions Bill, Targeting Russia’s Sovereign Debt, Energy
Sputnik – 5 02.08.2018
New legislation introduced in the US Senate would require Secretary of State Mike Pompeo to determine whether Russia should be designated as a state sponsor of terrorism.
A bipartisan group of US senators on Thursday introduced a new package of punitive measures aimed at Russia. A proposed bill includes new sanctions against Russia’s political figures, restrictions on energy investments and limitations connected with uranium imports.
The harshest part of the new bill calls for the sanctioning of Russian sovereign debt.
Six US Senators said in a press release that the legislation “will increase economic, political, and diplomatic pressure on the Russian Federation in response to Russia’s continued interference in our elections, malign influence in Syria, aggression in Crimea, and other activities.”
According to Republican Senator Lindsey Graham, “the current sanctions regime has failed to deter Russia from meddling in the upcoming 2018 mid-term elections.”
“Our goal is to change the status quo and impose crushing sanctions and other measures against Putin’s Russia until he ceases and desists meddling in the US electoral process, halts cyberattacks on US infrastructure, removes Russia from Ukraine, and ceases efforts to create chaos in Syria,” he added.
Congress passed the Countering America’s Adversaries Through Sanctions Act (CAATSA) in July 2017 in response to allegations that Russia sought to influence the 2016 US presidential election. The Trump administration has been widely criticized for not doing enough in response to Moscow’s alleged activities in 2016; however, the White House claimed otherwise, saying that Trump has been tougher on Russia than any previous administration.
Relations between Russia and the United States rapidly deteriorated following the crisis in Ukraine in 2014. Washington introduced several rounds of anti-Russia sanctions after Crimea’s reunification with Russia and the latter’s alleged involvement in the ongoing Ukraine conflict. Russia has refuted all the accusations and issued retaliatory economic restrictions.
Trump Duped by Saudis on Iran Oil Sanctions – Tehran Official
Sputnik – 01.08.2018
President Trump’s offer of “no preconditions” talks with Iran’s comes as a surprise break from months of escalating rhetoric in the wake of his walkout from the landmark Iran nuclear deal.
US President Donald Trump has apparently been hoodwinked by Saudi Arabia into believing that the kingdom will be able to make up for a projected drop in Iranian oil exports after the US sanctions take effect in November, Iran’s Press TV reported citing the head of the country’s OPEC governor.
“It seems President Trump has been taken hostage by Saudi Arabia and a few producers when they claimed they can replace 2.5 million barrels per day of Iranian exports, encouraging him to take action against Iran,” Hossein Kazempour Ardebili said.
US Back and Forth on Iran Oil Trade
The White House said last month that Saudi Arabia’s King Salman had promised Trump to raise oil production and that the kingdom had two million barrels per day of spare capacity to boost output to offset a decline Iranian oil supplies.
Iran insists that President Trump’s hope that certain oil producers can fill the gap created as a result of cutting off Iranian oil supplies is based on a “miscalculation.”
Late last month, a senior US State Department official said that countries buying Iranian oil should bring their Iranian crude imports down to zero by the time Washington re-imposes sanctions against the Islamic Republic’s banking and petroleum sectors.
Washington later backed off a bit with Secretary of State Mike Pompeo saying in July that the United States might grant waivers to countries seeking relief from sanctions the US has threatened to impose.
Trump’s U-Turn on Iran
On Monday, President Trump said he would be willing to meet his Iranian counterpart, Hassan Rouhani without preconditions to discuss how to improve ties, but Tehran flatly turned down Trump’s offer dismissing it as worthless and “a humiliation” after he acted to re-impose sanctions on Tehran following the withdrawal from the 2015 landmark nuclear deal.
“Sanctions and pressures are the exact opposite of dialogue,” Iran’s Foreign Ministry spokesman Bahram Qassemi said on Tuesday.
Trump’s overture towards Iran came a week after he threatened the country with “consequences the likes of which few throughout history have ever suffered before,” in an all caps tweet.
On May 8, President Donald Trump said he was withdrawing the US from the 2015 nuclear agreement with Tehran and promised to impose the “highest level” of sanctions on the country’s energy, petrochemical and financial sectors despite objections from Europe as well as Russia and China — the other parties to the deal, known as the Joint Comprehensive Plan of Action (JCPOA).


