How did the EU get hooked on American gas?
Pressure from Washington and compliance from Brussels has left the bloc at the mercy of the US
RT | January 20, 2026
The EU fears its long-term dependence on American liquefied natural gas (LNG) imports. Promised “molecules of freedom” by Washington, Europe now finds itself in a prison largely of its own design.
The EU has embraced a “potentially high-risk new geopolitical dependency” on American LNG, a new report by the Ohio-based Institute for Energy Economics and Financial Analysis (IEEFA) warned last week.
With the US set to supply up to 80% of the bloc’s LNG imports by 2030, a European diplomat told Politico that some officials in Brussels now see themselves completely at the mercy of the US, which could shut off the supply if, for example, the Europeans opposed an American annexation of Greenland.
How did we get here?
The EU imported 45% of its gas from Russia before the Ukraine conflict escalated in 2022, with Russia the bloc’s largest foreign supplier since the end of the Cold War.
However, a revolution began in the US in 1998 that would end in the EU severing its decades-long energy links with Russia. Mitchell Energy, a Texas-based company, carried out the first successful natural gas extraction via slick-water fracturing. This milestone kicked off the US’ fracking boom, which turned the country into a net energy exporter.
US shale gas output soared from negligible volumes around the turn of the millennium to roughly 30 trillion cubic feet a year by the mid-2020s. Washington began to look abroad for new markets.
‘Molecules of freedom’ and the politics of coercion
The Bush, Obama, Trump, and Biden administrations have all lobbied Europe to switch from Russian gas to American LNG, with Donald Trump’s Department of Energy describing the American product as “molecules of freedom” in 2019. For two decades the Europeans were unreceptive: Russian gas, piped directly through Ukraine or via the Nord Stream 1 lines, was 30-50% cheaper than US LNG, which had to be converted to liquid, stored on container ships, and then regasified in special port facilities after crossing the Atlantic.
Barack Obama offered more favorable prices if the Europeans would make the switch, while Trump slapped sanctions on Nord Stream.
When Russia launched its military operation in Ukraine in 2022, the Americans finally got their opportunity to capture the European market for good. Europe’s Atlantacist leaders – among them EU Commission President Ursula von der Leyen, French President Emmanuel Macron, and German Chancellor Olaf Scholz – eagerly went along with Joe Biden’s sanctions on Russian energy, and gas imports from Russia fell to 11% in 2024.
What does Nord Stream have to do with it?
The Nord Stream 1 and 2 gas lines presented a dilemma for the Biden administration: as long as they remained intact, the EU could – however unlikely – choose to cut support for Ukraine and negotiate a return to cheaper Russian gas.
Biden promised in early 2022 to “bring an end” to Nord Stream. “I promise you,” he told reporters at a White House press conference, “we will be able to do it.” The Nord Stream 1 and 2 lines were sabotaged in a series of explosions that September, and while there is no concrete proof of US culpability, American journalist Seymour Hersh maintains that Biden ordered the CIA to carry out the sabotage operation.
According to Hersh, Biden ordered the operation specifically to deny Germany the chance to back out of the proxy war in Ukraine.
Is there any way back to cheap gas?
Russian gas still reaches the EU via the TurkStream pipeline, as well as by ships from the Yamal LNG facility in Siberia. However, EU leaders intend to fully cut off all Russian fossil fuel imports by 2027.
The EU is currently the world’s largest importer of LNG, and more than half of its LNG terminals have come online or entered the planning or construction phases since 2022. The US now supplies 57% of the bloc’s LNG imports and 37% of its total gas imports, up from 28% and 6%, respectively, in 2021.
Even if the political will to change this situation existed, the EU is legally bound to deepen its dependence on the US. Under a trade deal signed by von der Leyen and Trump last July, the EU is required to purchase $750 billion worth of US energy by 2028. Essentially, Brussels cannot refuse what Washington is offering.
Russia maintains that it is a reliable energy supplier, and that the EU chose “economic suicide” in abandoning Russian gas.
How will the US use this leverage against the EU?
European leaders were seemingly content to trade away their energy security during the Biden years and to further bind themselves to the US under the Trump-von der Leyen trade deal. The risks of this approach became apparent last weekend, when Trump announced 10% tariffs on eight European nations for opposing his planned acquisition of Greenland.
Trump has warned that the levy will rise to 25% by June 1 if Denmark refuses to cede the territory. While the EU has threatened retaliatory tariffs, it is completely defenseless if Trump decides to cut gas exports as a punitive measure.
“Hopefully we’ll not get there,” an EU diplomat told Politico. However, hope is the only tool the Europeans have at the moment.
Why EU ‘Has No Alternative’ But to Return to Russian Gas Imports Sooner Than Later
Sputnik – 20.01.2026
Fears are growing as Europe becomes increasingly dependent on American LNG—once viewed as a safe alternative to Russian gas, but now seen as uncertain amid strained transatlantic relations, according to a media report.
With EU–US tensions rising over Ukraine and Greenland, “it is virtually impossible for the bloc to stop buying American LNG without having to allow Russian gas imports to return,” says Dr. Mamdouh G. Salameh, international oil economist and global energy expert.
He notes that while the threat of halting US LNG imports “could act as a deterrent against Trump annexing Greenland,” the reality is that “the EU has no alternative but to return to Russian gas sooner than later.”
According to Salameh, the US sabotage of Russia’s Nord Stream pipeline network was intended to “forever sever Russian gas supplies to Europe and ensure that US LNG replaces Russian gas permanently.” Instead, he argues, “this turned out to be a real financial disaster for Europe’s economy.”
He points to 2025, when the EU economy grew by only about 1.4%, with many German and other European companies—including Volkswagen—relocating in search of cheaper energy. Looking ahead, Salameh warns that the EU’s plan to end all Russian energy imports by early 2027 “will mean anemic economic growth for Europe’s economy.”
As a result, he says, the bloc now faces “a big dilemma, namely letting its economy stagnate if not shrink or lifting sanctions on Russian gas.”
With Europe now “squeezed between a rock and a hard place,” Salameh concludes that it is Russian President Vladimir Putin who “will have the last laugh.”
He adds that Putin could choose to resume gas supplies to Europe—a move that, he argues, could reshape the future of NATO and Europe’s relationship with the US.
NATO without America: Europe’s trial run ends in a reality check
Steadfast Dart 2026 exposes how fragile European security looks once the US steps aside
By Andrei Medvedev | RT | January 20, 2026
NATO has launched major military exercises – Steadfast Dart 2026. The drills involve over 10,000 troops from 11 countries: Germany, Italy, France, the UK, Spain, Belgium, the Czech Republic, Lithuania, Bulgaria, Greece, and Türkiye. The primary goal is to assess the bloc’s readiness for the rapid deployment of substantial forces. The exercises will continue until mid-March.
At first glance, it might seem like just another NATO exercise. But here’s the catch: The US is not taking part. The initiative is purely European, and aims to achieve two main objectives. Firstly, it seeks to demonstrate that Europe is strong, unafraid of American influence, and capable of protecting its interests – not only by producing AI animations about heroic Vikings defending Greenland, but through real military strength.
The second goal is to find out whether Europe can operate independently, without US support. The answer is probably not. It’s no secret that 70% of NATO’s budget comes from US contributions. But beyond finances, NATO intelligence is primarily reliant on the US. Satellite communication, coordination, and command structures are also all built around a model in which the US acts as the ‘big brother’ to its European partners.
Russian journalists have witnessed this dynamic in Kosovo, Bosnia, and Afghanistan (NATO did not officially conduct an operation there, but in reality, it entered the country). Who owns the largest and safest bases? Who oversees all sector units? Who plans operations and sets combat tasks? The big brother – the US. In Kosovo, for instance, NATO allies couldn’t just enter Camp Bondsteel. The base was American, and the Europeans had to get a special pass to enter.
Until recently, Europe seemed perfectly content with its ‘junior partner’ status. What fueled the EU’s prosperity? Cheap Russian (initially Soviet) resources with stable supply lines and minimal security expenses. Security was outsourced to the Americans: US bases, air support, missile defense… Then Trump came along, and in typical businessman fashion, said if you want protection, you’ll have to pay for it.
Is there a NATO without the US? That’s the question European military leaders will grapple with during these exercises – though they likely already know the answer. Sure, NATO would exist, but it would be very costly for the EU; or perhaps it won’t exist at all, which means Europe must concede that the master will do as he pleases. And the ‘master’ – America – is well aware of this.
US Treasury Secretary Scott Bessent recently stated that the US will remain in NATO. But just look how he put it. Asked what’s more important to US security interests, NATO or Greenland, Bessent replied: “That’s a false choice. The European leaders will come around. And they will understand that they need to be under the US security umbrella.”
In the current climate, when Europe’s economy is struggling (for example, BMW and Mercedes are now using Chinese engines, and BASF is making only a third of what it used to), the idea of a European NATO seems far-fetched. Europe just doesn’t have the money for it.
Neither does it have the military equipment – most of it has been sent to Ukraine, and what’s left would last a month or so in a high-intensity conflict. Moreover, Euro-NATO doesn’t have that many armies with real combat experience outside of the bloc.
Sure, there is France, which has been engaged in prolonged operations in the Sahel. And Türkiye. However, even their combat experience is powerless in a situation in which there is no money. Fighting Bedouins in the Sahel or Kurds in Syria is worlds apart from facing an adversary like China or Russia – or, in the new reality, the US.
The fact that the US is not taking part in NATO’s latest military exercises (despite being able to easily deploy their troops from bases in Germany or Italy) is quite telling. America’s message to Europe is clear: Let’s see how you do without us and then come running back.
The lesson is humiliating. But after all, they got into this mess by themselves.
Russia Adds Almost 500Mln Tonnes in Commercial Oil Reserves in 2025
Sputnik – 11.01.2026
MOSCOW – The preliminary increase in commercial, or production-ready, oil reserves in 2025 was 490 million tonnes, while gas reserves will increase by 650 billion cubic meters, Oleg Kazanov, the head of Russia’s Federal Agency for Mineral Resources (Rosnedra), told Sputnik.
“It’s worth noting that some sites are still undergoing assessment, but according to preliminary data, we have seen an increase in oil reserves of approximately 666 million tonnes, of which 490 million tonnes are ABC1 commercial reserves, meaning they are ready for production. Gas reserves are 679 billion cubic meters, of which 650 billion cubic meters are commercial reserves,” he said.
Russian oil production in 2025 will be roughly the same as last year, at 516 million tonnes, Deputy Prime Minister Alexander Novak announced in late December. Gas production increased by 7.6% year-on-year in 2024, reaching approximately 685 billion cubic meters, he said earlier. Russian Energy Minister Sergei Tsivilev told reporters in mid-December that he expected this figure to be maintained in 2025.
Vitol tests Chinese demand with narrower discounts on Venezuelan crude
Al Mayadeen | January 19, 2026
Vitol Group has offered Venezuelan crude oil cargoes to Chinese buyers at discounts of around $5 per barrel to ICE Brent, signaling a bid to test Chinese firms’ demand for the Latin American country’s heavy, sour grades, Bloomberg reported, citing traders familiar with the matter.
If deals go through, the cargoes are expected to be delivered in the second half of April, traders said. The move underscores renewed efforts by major US-based trading houses to place Venezuelan barrels in Asia, with China remaining a key destination.
Venezuela’s Merey crude has historically been among the cheapest globally, with Asia, particularly China, absorbing large volumes. Before US President Donald Trump ordered the abduction of Venezuelan President Nicolas Maduro, discounts on delivered barrels to Brent were as wide as $15 per barrel. The narrower spread now being tested suggests a recalibration of pricing after the US allowed for larger sales of Venezuelan crude, revenues it seeks to exploit. In recent years, Vitol has operated under licenses issued by the US Treasury that allow the loading and sale of Venezuelan crude. Under this imposed framework, proceeds from oil sales are directed into US-controlled bank accounts, a mechanism Washington claims is intended to manage revenues of Venezuela’s oil industry.
Marketing stolen oil
However, the deal only took effect after Maduro was kidnapped, oil tankers were stolen, and Venezuelan authorities were threatened. Vitol also gained preferential treatment, securing a deal it could only dream of to sell Venezuelan crude. The granting of an 18-month license to Vitol to market stolen crude triggered sharp controversy in Congress and across the energy sector.
Concerns center on the speed of the approval and Vitol’s political connections, which include reports that senior Vitol trader John Addison had donated more than $5 million to Donald Trump’s 2024 re-election campaign and attended a high-profile White House meeting with oil executives days before the roughly $250 million deal was awarded. US Senator Tim Kaine said the arrangement was “smacking of corruption,” questioning why proceeds were routed to specific bank accounts and who ultimately stood to benefit from the administration’s plan to effectively “run” Venezuela’s oil sales. The fact that Vitol and Trafigura were the first firms to receive such licenses, while other traders remained barred under sanctions, fueled accusations of “transactional diplomacy”.
The Trump administration and industry analysts rejected the allegations, arguing that Vitol and Trafigura were selected for practical reasons. US officials cited the traders’ vast shipping fleets and global logistics networks as essential for rapidly moving large volumes of stranded crude.
Indian, Chinese refiners seek clarity over Venezuelan crude
On January 12, Vitol and Trafigura were reportedly holding early-stage discussions with leading refiners in India and China over potential sales of Venezuelan crude. Bloomberg, citing people familiar with the matter, reported that the two trading giants contacted large Asian buyers over the weekend, though talks remained exploratory and no formal offers were made. Both firms are also gauging interest among US refiners.
India’s Reliance Industries previously imported Venezuelan oil under a waiver before halting purchases last year following a decision by Trump to impose a 25% tariff on countries buying oil from Venezuela.
India’s state-owned Indian Oil Corp. (IOC) is among the companies awaiting confirmation from Washington that it has been cleared to resume purchases of Venezuelan oil, according to Bloomberg‘s sources. IOC declined to comment. Reliance Industries said last week it was seeking clarity on whether non-US buyers could access Venezuelan crude and stated it would consider purchases “in a compliant manner.”
It remains unclear how much oil Vitol and Trafigura would be able to sell, or whether transactions would be limited to the initial tranche referenced by Trump. Nevertheless, any sales would mark a significant development for trading houses with longstanding involvement in Venezuela’s oil sector.
Europe Economic Panic
By Lorenzo Maria Pacini | Strategic Culture Foundation | January 18, 2026
When a prime minister advises his staff to rest because the coming year will be much more difficult, it is neither black humor nor fatigue. It is a moment of sincerity, the kind that only emerges when internal projections no longer support the public narrative.
Giorgia Meloni was not addressing the electorate. She was addressing the machinery of the state itself, the administrative core charged with implementing decisions whose effects can no longer be hidden. Her observation was not about a normal increase in workload. She was talking about constraints, about limits being reached, about a Europe that has moved from crisis response to a phase of controlled contraction, fully aware that 2026 is the year when deferred costs will eventually converge.
What has leaked out is what European ruling circles have already understood: the Western strategy in Ukraine has run up against material limits. Not with Russian messages, not with disinformation, not with populist dissent, but with steel, ammunition, energy, manpower, and time. Once these realities assert themselves, political legitimacy begins to erode.
The EU cannot sustain this war economically. Europe can strike poses of readiness. It cannot manufacture war.
After years of high-intensity conflict, both the US and Europe are rediscovering a long-forgotten truth: wars of this nature cannot be sustained with speeches, sanctions, or the abandonment of diplomacy. They require bullets, missiles, trained personnel, maintenance cycles, and industrial production that consistently exceeds battlefield losses. None of this exists, not in sufficient quantities, and it is not feasible in the timeframe preached in Brussels.
Russia is producing artillery ammunition in quantities that Western officials now openly admit exceed NATO’s total production. Its industrial base has shifted to near-continuous wartime production, with centralized procurement, streamlined logistics, and state-led manufacturing, without even total mobilization. Estimates place Russian production at several million artillery shells per year, already delivered, not just projected.
Europe, meanwhile, spent 2025 congratulating itself on targets it is structurally incapable of achieving. The EU’s stated commitment of two million shells per year depends on facilities, contracts, and labor that will not be available by the decisive period of the war, if ever. Even if achieved, the figure would still be less than Russian production. The US, despite emergency expansion, expects about one million shells per year once full ramp-up is complete, and only if that happens. Even on paper, combined Western production struggles to match what Russia is already producing in practice. The imbalance is clear.
This is not just a deficit, but a misalignment of timing. Russia is producing now. Europe is planning for the future. And time is the only factor immune to sanctions.
Washington, in fact, cannot indefinitely compensate for Europe’s eroded capacity because it faces its own industrial difficulties. Patriot interceptor production remains in the order of a few hundred per year, while demand simultaneously concerns Ukraine, Israel, Taiwan, and the replenishment of US stocks: an imbalance that, as Pentagon officials admit, cannot be resolved quickly. Shipbuilding tells a similar story: submarines and surface ships are years behind schedule due to labor shortages, aging infrastructure, and skyrocketing costs, pushing significant expansion toward 2030. The assumption that America can indefinitely support Europe is no longer in line with reality. This is a systemic Western problem.
Unfounded war rhetoric
European leaders talk about a “state of war” as if it were a rhetorical position, but in reality, it is an industrial condition that Europe does not meet.
New artillery lines take years to reach stable production. Air defense interceptors are produced in long, batch-based cycles, not in sudden spikes. Even basic components such as explosives remain a critical issue, with plants that closed decades ago only now reopening and some not expected to reach full capacity until the late 2020s. This timeline is in itself an admission.
Europe’s weakness is not intellectual, but institutional: huge sums have been authorized, but procurement inertia, fragmented contracts, and a depleted supplier base have meant that deliveries are years behind schedule. France, often described as Europe’s most capable arms manufacturer, is capable of building advanced systems, but only in limited quantities, counted in dozens, while a war of attrition requires thousands. EU ammunition initiatives have expanded capacity on paper, while the front has exhausted ammunition in a matter of weeks.
These are not ideological shortcomings, but administrative and industrial failures, which are exacerbated in stressful situations. It is yet another example of the failure of European Community policy, so much so that the structural contrast is stark. Western industry has been optimized for shareholder returns and peacetime efficiency, while Russian industry has been reoriented to withstand pressure. NATO announces aid packages. Russia counts deliveries. You can already guess what the outcome of this situation will be, right?
This industrial reality explains why the debate on asset freezing was so important and why it failed. Europe did not pursue the seizure of Russian sovereign assets out of legal ingenuity or moral determination, but because it needed time: time to avoid admitting that the war was unsustainable in Western industrial terms, time to replace production with financial maneuvers.
When the effort to confiscate some €210 billion in Russian assets failed on December 20, blocked by legal risks, market repercussions, and opposition led by Belgium, with Italy, Malta, Slovakia, and Hungary opposing total confiscation, the Brussels technocracy settled for a reduced alternative: a €90 billion loan to Ukraine for 2026-27, with interest payments of around €3 billion per year. This further mortgages Europe’s future. This is not a strategy, but emergency triage. A collapsing political hospital. Pure panic.
Narrative, crisis, disaster
The deeper reality is that Ukraine is no longer primarily a military dilemma, it is a question of solvency. Washington recognizes this, because it cannot absorb the reputational discomfort, but they cannot take on unlimited responsibility forever. A way out is being explored, discreetly, inconsistently, and shrouded in rhetorical cover.
Europe cannot admit the same necessity, because it has ultimately adopted ‘Putin’s version’, i.e. it has framed the war as existential, civilising, moral – but do you remember when European politicians enjoyed calling Putin crazy for talking about a clash of civilisations?
Compromise has become appeasement, negotiation surrender. In doing so, Europe has eliminated its own escape routes. Well done, ladies and gentlemen!
On the narrative front, greetings to all. The aggressive enforcement of the EU’s Digital Services Act has less to do with security than with containment: building an information perimeter around a consensus that cannot survive open scrutiny. Translated: censorship as a solution. The truth of the matter must not be made known, and those who try to do so must be suppressed in an exemplary manner. This also explains why regulatory pressure now extends beyond European borders, generating transatlantic friction over freedom of expression and jurisdiction. Confident systems welcome debate. Fragile ones suppress it. In this case, censorship is not ideology, but a form of insurance.
The information crisis, rest assured, will very soon become… a social crisis ready to detonate into domestic conflict.
And the crisis is also one of resources and energy. We are witnessing the securitization of decline, whereby obligations are postponed while the productive base needed to sustain them continues to shrink. It’s a cat chasing its tail. Here too, you know how it will end, don’t you?
Europe has not only sanctioned Russia. It has sanctioned itself. European industry will continue to pay energy prices well above those of its competitors in the United States or Russia throughout 2026. Take a trip around Europe, read the headlines in local newspapers, look at people’s faces: the fabric of small and medium-sized enterprises, the true beating heart of entire EU countries, is quietly disappearing. And this is logically reflected in large companies too. This is why Europe cannot increase its production of ammunition and why rearmament remains an aspiration rather than a concrete operation.
Energy, we said. Low-cost energy was not a convenience, it was essential. If it is eliminated through self-inflicted damage, the entire structure is emptied. Even the most ambitious plans preached for years, such as the IMEC corridor, are still a mirage. There is a stampede towards Turkey, Azerbaijan, and Georgia to try to scrape together a few kilowatts. A ridiculous attempt to save what is now tragically unsalvageable.
China, observing all this, represents the other half of Europe’s strategic nightmare. It controls the world’s deepest manufacturing base without having entered into a position of war. Russia does not need China’s full capacity, only its strategic depth in reserve. Europe has neither.
A frightening 2026
2026 therefore looks set to be a terrible year, I’m sorry to say. The European elites find themselves losing control on three fronts at once. On finance, because the budget will be bitter and the money for the insane support to Kiev will no longer be the same. On narrative, because the question citizens will ask themselves will be ‘what was the point of all this?’. On the cohesion of the Alliance, both NATO and the EU, because Washington’s disengagement will force a review of the balance of power on the European continent to the point of no return and, perhaps, a break between the two sides divided by the ocean.
Panic, again. Not a sudden defeat, but the slow erosion of legitimacy as reality creeps in through gas that costs as much as gold, closed plants, empty stockpiles, obsolete rifles, and a future that is turning away.
This is not just a difficult situation for Europe, but a matter of civilization. A system incapable of producing, supplying, speaking honestly, or retreating without collapsing in credibility has reached its limit. When leaders begin to prepare their institutions for worse years, they are not anticipating inconveniences, but recognizing structural failure.
Empires proclaim victory loudly. Declining systems quietly lower expectations or, in this case, momentarily say the quiet part out loud. But the truth is that nothing is the same as before, and it is obvious.
For most Europeans, the reckoning will not come as an abstract debate about strategy or supply chains, but as a simple realization: this was never a war they consented to. It did not defend their homes, their prosperity, or their future. And so, again, how do you think it will end?
An ideological war has been fought in the name of imperial ambition and financed through declining living standards, industrial decline, and the prospects of their children. In the name of big pro-European capital, of the privileged few with robes, stars, and crowns.
For months, even years, it was said that “there was no alternative” and that this was the only course of action. And now?
Europeans are tired. They want peace, stability, and the quiet dignity of prosperity: affordable energy, a functioning industry, and a future unencumbered by conflicts they NEVER chose and, above all, they do not want the decline of millennia-old civilizations.
And when this awareness has taken hold, when the fear has faded and the spell has been broken, the question Europeans will ask themselves will not be technical or ideological. It will be existential. And all existential questions lead to radical choices, even terrible ones.
May this dramatic fear keep the mad leaders of this Europe awake at night.
Ukraine is defending itself with money Europe doesn’t have
By Ian Proud | Strategic Culture Foundation | January 17, 2026
The ugly truth is that an end of the Ukraine war may have as devastating economic and political consequences for Europe as its continuance.
Ukraine already faces a $63 billion U.S. dollar funding shortfall in 2026 and I would be surprised if this figure doesn’t increase if the war continues. Ukraine’s massive fiscal splurge is driven by two factors
- The enormous cost of maintaining a standing army of almost one million people;
- The vast expense of importing weapons from the west to fight the war.
Weapon purchases are not sources of productive investment as they are literally burned in the heat of battle. The same, of course, is true for Russia. Both countries saw reducing economic growth in 2025, with Ukraine’s at 2.1% and 1.5%. And, western pundits would point to this as evidence that Ukraine’s economy is performing better.
But the opposite is true. Russia’s economy is around twelve times larger than Ukraine’s nominally and just over ten times larger when you look at GDP using purchasing power parity.
You can see this in the defence spending numbers.
Russia spent a record $143 billion on defence in 2025 compared to around $60 billion for Ukraine, so around 2.3 times higher. Yet, Russian defence spending amounted to just 6.3% of its GDP whereas for Ukraine it was 31.7%. So, massive spending on defence is a much less pivotal issue for Russia in terms of its economic fortunes.
Defence spending represents a far smaller proportion of total economic activity than it does for Ukraine. And Russia can afford to pay for its defence needs with its own finances, while Ukraine is entirely dependent on money from western donors to keep the war going.
Despite the massive cost of war, Russia ran a fiscal deficit of just 1.7% of GDP in 2025. That is still well below the EU fiscal rule of 3% of GDP with some countries like France and Poland having deficits at or more than double that figure.
Ukraine’s fiscal deficit on the other hand was around 20% of GDP. That gap had to be filled by foreign funding as it has debt of 107% of GDP and is cut off from foreign lending.
So, hence the EU stepping up with a loan of 90 billion Euros, two thirds of which is earmarked for defence.
Russia on the other hand has debt of around 15% of GDP and doesn’t really need to borrow heavily to keep its war effort afloat. By the way, 15% of GDP is far lower than the U.S. or any European nation, many of which, like Ukraine, have debt levels of over 100% of GDP.
Ukraine is defending itself with money Europe doesn’t have.
Despite the shock of sanctions, Russia doesn’t have to break the bank nor boost its lending significantly.
This also means that when the war eventually ends, Russia will be able to make the economic transition back to peace in a less painful way. Russia will be under no pressure to impose massive cuts to defence spending to live within its means and can instead do so gradually.
Ukraine on the other hand faces a massive financial cliff edge when the war ends.
Ukrainian economic growth according to the OECD is set to fall further to 1.7% in 2027 if the war continues.
And that assumes continued large injections of capital from outside countries. In 2025, Ukrainian defence spending made up 31.1% of Ukrainian GDP, and two thirds of state budgetary expenditure. None of that spending goes into improving Ukraine’s weak economy.
With all of the support that it receives, Ukraine’s GDP in 2025 amounted to just under $210 billion according to the IMF.
Bear in mind here that Ukraine received $52.4 billion in external financing in 2025, or around one quarter of its GDP at the end of the year.
Take away foreign funding and Ukraine suddenly sees its economy shrink by over 20%.
Or, put it another way, take away the war and Ukraine sees its economy shrink by over 20%.
Russia simply does not face the same problem.
Rather, an end to the war may help Russia to get inflation – perhaps its biggest economic challenge – under control as economic activity returns to its normal rhythm.
But still the question arises, how come Ukraine has grown so little when it received so much foreign funding?
One big reason is that Ukraine recorded a trade deficit of $30 billion over the same period, a record according to the National Bank of Ukraine.
So, $52 billion in foreign money came into Ukraine during the year and $30 billion went straight back out again. Because Ukraine’s massive trade deficit is fuelled by two things.
First, a huge increase in the import of weapons from western suppliers which have doubled since 2022, not least as they are no longer being provided free of charge.
Second, Ukraine has increased its imports of natural resources, in particular a massive increase in gas imports, because domestic production has been hit hard by the war. Coal is another area, as Russia has swallowed up important coal mines in the Donbas.
Not all of that deficit in trade will be recoverable even after the war ends, even if Ukraine was able to reduce the overall size of its trade deficit.
By comparison, Russia’s surplus of trade in goods was already at over $100 billion by October 2025, although the overall trade picture is narrower, at around $36 billion because of a significant deficit in services trade, including from large numbers of Russians who have moved overseas since the war started.
An end to the war, if anything, may allow Russia’s trade surpluses to grow further. A future relaxation on the import of natural resources into Europe could mean that Russia benefits from already increased trade with Asia and renewed trade with Europe.
In any case, the consistent surpluses that Russia pulls in both help shore up economic growth and foreign exchange reserves, which in 2025 grew by over $135 billion to a whopping $734 billion.
And just to be clear, Russia put their reserve funds almost completely into gold which now stand at over $310 billion.
One big reason for Russia storing its reserves in gold is to keep them clear of the stealing hands of western bureaucrats, who froze around $300 billion in reserves at the start of the war.
This means that Russia has a surplus of $434 billion in foreign exchange reserves which is almost completely insulated from western expropriation. The $10 billion rise in foreign currency reserves in 2025 was undoubtedly caused by an accumulation of reserves in non-dollar, Euro and sterling currencies, suggesting the move to greater trade in Chinese Yuan and Indian rupees.
An end to the war may at some point lead to the unfreezing of immobilised Russian assets in the U.S., Europe and Japan.
Ukraine’s reserve position is also comparatively strong, at $57.3 billion at the start of 2026, a record figure. However, that rise is completely down to inflows of foreign capital to fund the war effort. An end to the war would likely shrink Ukraine’s reserves as its stubborn trade deficit was not being offset by foreign inflows of funds as they had been during war.
But it’s the sudden and shocking loss of foreign funding that accompanies an end to the war which will cause Ukraine’s economy to shrink dramatically.
But fear not, Europe is determined that Ukraine maintain an army of 800,000 personnel when the war ends. However, this seems more about economic survival than about security.
Ukraine would not be able to pay for such as large army with its own money, as it doesn’t have any money. So, once again, Europe will be forced to step in to meet Ukraine’s financing needs to pay the salaries of soldiers who are no longer in war fighting mode.
This will lead to debt and taxes rising in Europe, according to a recent Kiel Institute study. But it will also lead to a loss of business for European defence firms. Because peace time will inevitably mean a sharp drop in the munitions and military material being burned on a daily basis in the fog of war.
Two thirds of the EU’s recent 90 billion Euro loan to Ukraine will be spent on military support, including weaponry. That has sparked an argument between Germany and France over a proposed ‘buy European’ clause, with France wanting to prevent Ukrainian purchases of U.S. equipment. Perhaps with one eye on the future, the French in typical fashion, are trying to ensure that their firms get a decent share of what could amount to dwindling Ukrainian orders for weapons.
A bit like the French army, Europe is reversing itself inevitably into economic defeat when the war ends.
Obligated to keep an economically failed Ukraine on life support.
Having to increase its debt and taxes to support bad foreign policy decisions it has been taking since 2014.
Trying to boost its defence industrial complex but losing business with the end of war.
For the mainstream political parties in Europe, this adds to the trend of them heading towards electoral Armageddon when they start putting themselves to the polls from 2027 onward.
Until then, they are stuck, knowing that continuing the war will kill them electorally, and knowing that ending the war will too. To quote my old British soldier dad, they are like the mythical oozlum bird, continually going round in circles until they disappear up their own backsides.
The West vs. the Rest
How developing countries took control of climate negotiations and what that means for emission reduction.
By Robin Guenier | Climate Scepticism | December 8, 2025
The main reason why, despite countless scientific warnings about dangerous consequences, greenhouse gas (GHG) emissions continue to increase is rarely mentioned. Yet it’s been obvious for several years – at least to anyone willing to see it. It’s this: most countries outside Western Europe, North America and Australasia are either unconcerned about the impact of GHGs on the climate or don’t regard the issue as a priority, focusing instead for example on economic growth and energy security. Yet these countries, comprising about 84 percent of humanityi, are today the source of about 77 percent of emissions; 88 percent if the United States, which has now joined their ranks, is included.ii Therefore, unless they change their policies radically – and there’s no serious evidence of their so doing – there’s no realistic prospect of the implementation of the urgent and substantial cuts in GHG emissions called for by many Western scientists.
To understand how this has happened, I believe it’s useful to review the history of environmental negotiation by focusing in particular on six UN-sponsored conferences: Stockholm in 1972, Rio in 1992, Kyoto in 1997, Copenhagen in 2009, Paris in 2015 and Belém (Brazil) in 2025.
Stockholm 1972
In the 1940s, 1950s and 1960s many Western environmentalists were seriously concerned that technological development, economic growth and resource depletion risked irreversible damage to humanity and to the environment.iii Clearly a global problem, it was agreed that it had to be tackled by international, i.e. UN-sponsored, action.
The result was the UN Conference on the Human Environment held in Stockholm in 1972.iv From its outset it was recognised that, if the conference was to succeed, an immediate problem had to be solved: the perceived risk was almost exclusively a Western preoccupation, so how might poorer countries be persuaded to get involved?v
After all, technical and industrial development were essentially the basis of the West’s economic success and that was something the rest of the world was understandably anxious to emulate – not least to alleviate the desperate poverty of many hundreds of millions of people.vi The diplomatic manoeuvrings needed to resolve this seemingly irreconcilable conflict set the scene for what I will refer to as ‘the Stockholm Dilemma’ – i.e. the conflict between Western fears for the environment and poorer countries’ aspirations for economic growth. It was resolved, or more accurately deferred, at the time by the linguistic nightmare of the conference’s concluding Declaration which asserted that, although environmental damage was caused by Western economic growth, it was also caused by the poorer world’s lack of economic growth.vii
After 1972, Western environmental concerns were overshadowed by the struggle to deal with successive oil and economic crises.viii However two important European reports, the Brandt Report in 1980 and the Brundtland Report in 1987, dealt with the economic gulf between the West and the so-called Third World.ix In particular, Brundtland – echoing Stockholm – concluded that, because poverty causes environmental problems, the needs of the world’s poor should be given overriding priority; a principle to be enshrined in the climate agreement signed in Rio. The solution was the now familiar ‘sustainable development’.x
Rio 1992
Western environmental concerns were hugely re-energised in the late 1980s when the doctrine of dangerous (possibly catastrophic) global warming caused by mankind’s emissions of GHGs, especially carbon dioxide (CO2), burst onto the scene.xi As a result, the UN organised the landmark Conference on Environment and Development (UNCED) – the ‘Earth Summit’ held in Rio in 1992.xii It was the first of a long series of climate-related international conferences that led for example to the so-called ‘historic’ Paris Agreement in 2015.
A key outcome of the 1992 Earth Summit was the United Nations Framework Convention on Climate Change (UNFCCC). Adopted in 1992 and commonly known as ‘the Convention’, it’s an international treaty that came into force in 1994. It remains to this day the definitive legal authority regarding climate change.xiii Article 2 sets out its overall objective:
‘The ultimate objective of this Convention and any related legal instruments that the Conference of the Parties may adopt is to achieve … stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system.’
It’s an objective that’s failed. Far from being stabilised, after 1992 emissions accelerated and, by 2025, emissions had grown by over 65 per cent.xiv This is essentially because the Convention attempted to solve the Stockholm Dilemma by dividing the world into two blocs: Annex I countries (essentially the West and ex-Soviet Union countries – the ‘developed’ countries) and non-Annex I countries (the rest of the world – the ‘developing’ countries). This distinction has had huge and lasting consequences – arising in particular from the Convention’s Article 4.7:
‘The extent to which developing country Parties will effectively implement their commitments under the Convention … will take fully into account that economic and social development and poverty eradication are the first and overriding priorities of the developing country Parties.’xv [My emphasis]
In other words, developing countries were, in accordance with Brundtland’s conclusion, expressly authorised to give overriding priority to economic growth and poverty eradication – even if that meant increasing emissions. And that’s why the Annex I/non-Annex I bifurcation has plagued international climate negotiations ever since: for example, it’s the main reason for the Copenhagen debacle in 2009 and for the Paris failure in 2015 (see below).
Western countries had hoped – even expected – that the Rio bifurcation would in time be modified so that, in line with their development, major developing countries would eventually become members of the Annex I group.xvi But such hopes were dashed at the first post-Rio climate ‘Conference Of the Parties’ (COP) held in Berlin in 1995 (COP1) when it was agreed that there must be no new obligation imposed on any non-Annex I country.
This principle, ‘the Berlin Mandate’, meant that the bifurcation and its associated ‘common but differentiated responsibility’ principle were institutionalised as tenets of the Convention.xvii And, before the next climate conference in 1996 (COP2 in Geneva), G77+China made it clear that this should not be changed.xviii
Kyoto 1997
The impact of this was made harshly apparent at the next conference: COP3 in Kyoto in 1997. Kyoto was supposed to be critically important – the original hope had been that negotiations would result in all countries accepting commitments to reduce their GHG emissions. But, because the US decided that it wouldn’t accept obligations that didn’t apply to other major countriesxix and because of the Berlin Mandate, in the event the agreed Kyoto Protocol reduction obligations applied only to a few, largely Western, countries.xx As a result and because developing countries refused even to acknowledge that they might accept some future obligation, it was becoming obvious to some observers that the UN process was getting nowhere – somehow the developing countries had to be persuaded that emission reduction was in their best interests.
But how? The passage of 25 years hadn’t resolved the Stockholm Dilemma – difficult enough in 1972, the UNFCCC bifurcation and the Berlin Mandate had made it worse. Yet it was recognised that, without these, developing countries might simply refuse to be involved in climate negotiations, making the whole process meaningless – something the UN and Western countries were unwilling to contemplate. So, if Kyoto was a failure, it was arguably a necessary failure if there was to be any prospect of emission reduction in due course. And that was the story for the next twelve years: at successive COP conferences the major developing countries, ignoring increasingly dire climate warnings from Western scientists, refused to consider amending the UNFCCC bifurcation.
A result of that refusal was that many developing countries’ economies continued their spectacular growth, resulting in rising living standards and unprecedented poverty reduction.xxi But inevitably emissions also continued to grow: in just 12 years, from 1997 (Kyoto) to 2009 (Copenhagen) and despite 12 COPs, they increased by over 30%.xxii
Copenhagen 2009
In 2007 the UN’s Intergovernmental Panel on Climate Change (the IPCC), a body that reports every seven years on the current physical scientific understanding of climate change, published its fourth report (AR4) – a report that intensified the West’s insistence that urgent and substantial emission cuts were essential.xxiii
A result was an ‘Action Plan’ agreed at the 2007 climate conference (COP13) in Bali.xxiv It set out how it was hoped all countries would come together at Copenhagen in 2009 (COP15) to agree a comprehensive and binding deal to take the necessary global action. Many observers regarded this as hugely significant: Ban Ki-moon, then UN Secretary General, speaking at Copenhagen said, ‘We have a chance – a real chance, here and now – to change the course of our history’’.xxv And, as always, dire warnings were issued about the consequences of failure: UK Prime Minister Gordon Brown for example warned that, if the conference failed to achieve a deal, ‘it will be irretrievably too late’.xxvi
There was one seemingly encouraging development at Bali: developing countries accepted for the first time that emission reduction by non-Annex I countries might at least be discussed – although they insisted that developed countries were not doing enough to meet their Kyoto obligations.xxvii But the key question of how far the developing countries might go at Copenhagen remained obscure – for example was it at least possible that the larger ‘emerging economies’ such as China and India and major OPEC countries such as Iran and Saudi Arabia might cease to be classified as ‘developing’? The EU and US not unreasonably thought that should happen, especially as it was by then obvious that, unless all major emitting countries, including therefore big developing economies, were involved, an emission cutting agreement would be neither credible nor effective. Some Western negotiators hoped that the bifurcation issue might at last be settled at Copenhagen.
But it wasn’t. In the event, developing countries refused to budge, insisting for example that developed countries’ historic responsibility for emissions was what mattered. As a result, the West was humiliatingly defeated, with the EU not even involved in the final negotiations between the US and the so-called BASIC countries (Brazil, South Africa, India and China).xxviii
One commentator noted:
‘There was a clear victor. Equally clearly, there was a side that lost more comprehensively than at any international conference in modern history where the outcome had not been decided beforehand by force of arms.’ xxix
The Copenhagen failure was a major setback for the West.xxx It was now established that, if the developing countries (including now powerful economies such as China, India, South Korea, Brazil, South Africa, Saudi Arabia and Iran) rejected a suggestion that their economic development be subject to emission control, that position would prevail. Yet by 2010 these countries were responsible for about 60% of global CO2 emissions xxxi; without them, major global emission cuts were clearly impossible.
The years following Copenhagen, from Cancún (COP16) in 2010 to Lima (COP20) in 2014, reinforced the West’s concerns as developing countries continued to insist they would not accept binding commitments to reduce their emissions.xxxii
Paris 2015
It was becoming obvious that, if there was to be any prospect of emission reduction, there had to be some fresh thinking. So the UN proposed a new methodology for the summit scheduled for 2015 in Paris (COP21): instead of an overall global reduction requirement, a new approach should be implemented whereby countries would individually determine how they would reduce their emissions and that this would be coupled with a periodic review by which each country’s reduction plans would be steadily scaled up by a ‘ratcheting’ mechanism – a critically important development.
But, when countries’ plans (then described as ‘Intended Nationally Determined Contributions’ (INDCs)) were submitted to the UNFCCC secretariat prior to Paris, it was clear that little had been achieved: hardly any developing countries had indicated any intention of making absolute emission cuts. Instead their INDCs spoke merely for example of reducing CO2 emission intensity in relation to GDP or of reducing the percentage of emissions from business-as-usual projections.xxxiii
It had been hoped that NDCs (as they became known) would be the vehicle whereby major emerging (‘developing’) economies would at last make emission reduction commitments. Yet they turned out to be a problem that undermined the Paris Agreement – see below. And, in any case, other provisions of the Agreement in effect exempted developing countries from any obligation, moral, legal or political, to reduce their emissions.xxxiv For example, the Agreement was described in its preamble as being pursuant to ‘the objective of the Convention [and] guided by its principles’ and further described in Article 2.1 as ‘enhancing the implementation of the Convention’. In other words, the developed/developing bifurcation remained intact and developing countries could continue to give overriding priority to economic development and poverty eradication. Moreover, under Article 4.4 of the Agreement, developing countries, in contrast to developed countries, were merely ‘encouraged to move over time towards economy-wide emission reduction or limitation targets’. Hardly an obligation to reduce their emissions.
It was not an outcome many wanted. For example, when ex UN Secretary General Kofi Annan was asked in early 2015 what he would expect to come out of the Paris summit, he replied:
‘Governments have to conclude a fair, universal and binding climate agreement, by which every country commits to reducing emissions of greenhouse gases.‘ xxxv
Western negotiators had intended that Paris should have a very different outcome from that achieved. Hence this 2014 statement by Ed Davey, then UK Secretary of State responsible for climate negotiations: ‘Next year in Paris in December … the world will come together to forge a deal on climate change that should, for the first time ever, include binding commitments to reduce emissions from all countries.’ xxxvi
But it didn’t happen. Developing country negotiators, led by China and India, ignored the West’s (in the event, feeble) demands. And Western negotiators, determined to avoid another Copenhagen-like debacle, didn’t press the issue. Hence the Paris agreement’s failure to achieve the West’s most basic aim: that powerful ‘emerging’ economies should be obliged to share in emission reduction.
The Stockholm Dilemma was still unresolved.
Might that change in the near future? Events since 2015 indicate that that’s most unlikely:
A major post-Paris example was a climate ‘action summit’ convened by UN Secretary General António Guterres for September 2019, calling for national plans to go carbon neutral by 2050 and new coal plants to be banned from 2020.xxxvii But, just before the summit, the environment ministers of the so-called ‘BRICS’ countries (Brazil, Russia, India, China and South Africa) effectively undermined it by reaffirming their commitment to ‘the successful implementation of the United Nations Framework Convention on Climate Change (UNFCCC), its Kyoto Protocol and its Paris Agreement’. In other words, these five countries (the source of about 45 percent of emissions) were indicating that they continued to regard themselves, under the UNFCCC and Paris framework, as exempt from any binding reduction obligation.xxxviii As a result the summit was a failure.xxxix
So it was not surprising that COP25 (December 2019 in Madrid) made no real progress: it ended with no substantive agreement on emission reduction and was widely described as another failure.xl
Might that change – for example might major developing countries enhance their NDCs as required by the ‘ratchet’ provision of the Paris Agreement? The test would be the next UN conference (COP26) to be held in Glasgow in November 2021 – postponed from 2020 because of the COVID 19 crisis.xli
But COP26 failed that test. And that was despite it being rated by the Guardian in July 2021 as ‘one of the most important climate summits ever staged’, despite Alok Sharma (COP26’s president) stressing that leaving ‘Glasgow with a clear plan to limit global warming to 1.5C’ would ‘set the course of this decisive decade for our planet and future generations’ and despite Prince Charles (as he then was) giving another of his familiar warnings: ‘Quite literally, it is the last chance saloon. We must now translate fine words into still finer actions.’ xlii
That things were not looking good became apparent when several major emitters (e.g. Brazil, China, India, Russia, Saudi Arabia, Australia, Indonesia and Mexico) either failed to submit a new NDC in 2021 or submitted an updated NDC that was judged to lack any real increase in ambition, thereby failing to comply with the key Paris ‘ratchet’ requirement.xliii Yet the countries referred to above were in 2019 the source of over 40% of global emissions.xliv
COP26 itself got off to a bad start when China’s president Xi and Russia’s president Putin didn’t attend.xlv And the proceedings included various upsets – in particular a formal request made by a group of 22 nations known at the Like-Minded Developing Countries (LMDC), which included China, India and Saudi Arabia, made on 11 November 2021, that the entire section on the mitigation of climate change be removed from the draft COP26 text.xlvi It wasn’t wholly successful as COP26’s concluding text – the ‘Glasgow Climate Pact’ xlvii – did include an appeal for all countries to revisit and strengthen their 2030 emissions targets by the end of 2022. But that was essentially meaningless in practice as many major emitters had already failed to submit sufficiently strengthened NDCs (see above). In other words, COP26 ended with nothing of real importance being achieved.
All this confirmed yet again that developing countries, determined to grow their economies and improve the lives of their people, had no serous intention of cutting back on fossil fuels. But nonetheless the can was once again kicked down the road; this time to COP27 to be held in Sharm El-Sheikh, Egypt in 2022. And in the meantime events moved on much as before with most countries – even the US – increasing their reliance on fossil fuels (especially coal) and global CO2 emissions reaching their highest level ever.xlviii
And it was hardly a surprise therefore when COP27 turned out to be yet another conference that essentially achieved nothing, with one reviewer noting that key mitigation items — such as a 2025 global emissions peak or a phase-out of all fossil fuels — were dropped under pressure from ‘Saudi Arabia, Iran, Russia and other petro-states’.xlix Yet, far from giving up, the West now pinned its hopes on COP28 to be held in Dubai – the ‘first global stocktake’.
And the UN hoped that a ‘Climate Ambition Summit’ called by General Secretary António Guterres in September 2023 would boost the Conference’s prospects. But the absence of big emitters such as the US, China and India meant that the Summit turned out to be of little value.l
However the COP28 ‘stocktake’ – otherwise unremarkable – did include what many commentators thought was an important breakthrough.li In its paragraph 28, it said this:
‘The Conference of the Parties … calls on Parties to contribute to the following … Transitioning away from fossil fuels in energy systems, in a just, orderly and equitable manner, accelerating action in this critical decade, so as to achieve net zero by 2050 in keeping with the science.’
So, commentators said, there you have it: at long last we have an agreement (a ‘pledge’) to transition away from fossil fuels! But of course that wasn’t true. The reality was that Paragraph 28 also said that parties must ‘take account’ of the Paris Agreement and, as specifically confirmed further down in paragraph 38, the ‘stocktake’ reaffirmed Article 4.4 of that Agreement. In other words, developing countries, the source of 65% of global emissions, continued to be exempted from any obligation to cut their emissions.
Attention now moved to Baku, Azerbaijan – to COP29 held in November 2024. But this conference was concerned almost entirely with finance and made no serious progress on emission reduction. And in any case proceedings were overshadowed by Donald Trump’s re-election as US President – causing great uncertainty and concern about future global climate politics.
Such concern was justified: it was over 50 years since the 1972 UN Conference on the Human Environment and there was still no sign of a solution to the Stockholm Dilemma and now a resurgent Trump made one even less likely. Yet once again the circus moved on – this time to Belém in Brazil.
Belém 2025
In the months running up to COP30 its prospects already looked dismal, despite the conference being dubbed ‘the implementation COP’. This was because, despite the Paris Agreement requirement, hardly any significant countries submitted updated NDCs either by February 2025, or even by the extended date at the end of September.lii To make matters even worse, few leaders of major economies turned up for the scheduled pre-COP leaders’ meeting: for example no one came from the United States, China, India, Russia, Indonesia, Japan, Saudi Arabia, Australia, Canada, South Korea, Türkiye or South Korea. Nonetheless Brazil’s President Lula announced that ‘COP30 will be the COP of truth’.liii
However over 56,000 delegates did turn up at the conference – the third largest number at any COP. And Brazil’s environment minister Marina Silva urged countries to have the ‘courage’ to address a fossil-fuel phaseout, and to work towards a roadmap for ending dependence on fossil fuels.liv It was a requirement echoed by about 80 countries which insisted via a letter to the COP President signed by 29 countries (including the UK, France, Spain and various small countries) that, unless the Conference outcome included a legally binding agreement to a ‘roadmap’ for a global transition away from fossil fuels, they would block the planned deal.lv
Unsurprisingly however negotiators from the majority of countries – not just the Arab oil producers as some commentators suggested, but also major countries such as India, China, Indonesia and other developing countries whose economies and peoples’ welfare depend on fossil fuels – showed no interest in the idea and the COP President simply ignored it. Humiliatingly the objectors climbed down. And the words ‘fossil fuels’ were not even included in the finally agreed text.lvi
This astute comment on the failure of COP30 was made by Li Shuo of the Asia Society (described as ‘a long-time observer of climate politics’):
‘This partly reflects the power shift in the real world, the emerging power of the BASIC and BRICs countries, and the decline of the European Union’.lvii
So once again a COP made no progress at all towards meeting the UNFCCC’s 1992 call for the ‘stabilization of greenhouse gas concentrations in the atmosphere’. It’s therefore hardly surprising that many commentators have queried whether there’s really any reason at all for continuing to hold all these huge and essentially pointless conferences.lviii
And it’s not only the Belém debacle that illustrates this. Far from it: nothing that’s happening today justifies any realistic hope that fossil fuels are on their way out. For example, major developing countries, especially India, China and in Southeast Asia, are focusing on coal to bolster economic growth and upgrade national security.lix And overall global emissions are still increasing. The early 2020 emission reductions caused by Covid 19 lockdowns were short-lived: as countries emerged from the pandemic determined to strengthen their economies, emission increases have continued.lx
The harsh reality – confirmed time and time again – is that nothing has really changed since the West’s comprehensive defeat at COP15 in Copenhagen in 2009. The truth is that most countries do not share the West’s preoccupation with climate change. Nor is there any prospect of that view changing for the foreseeable future.
Conclusion
At the time of the Rio Earth Summit in 1992 the West’s emissions were 41 percent of the annual global total – today (without the US) they’re only 9 percent. Thus it’s clearly impossible for what’s left of the West to satisfy many scientists’ calls for an urgent and substantial (about 50%) global emission reduction. That can only happen if all the other major countries completely change their climate policies. And that’s obviously not going to happen.
Yet, despite that clear message from the past thirty or more years of climate negotiation history, it’s a key reality that’s still being overlooked by many in the West: in particular by net zero supporters; by the mainstream media; by many scientific publications; by all climate ‘activists’; by many respected academic and scientific organisations; by politicians, governmental and non-governmental organisations; and by celebrities and social media. And by the United Nations.
It’s quite remarkable that there are still so many Western observers who seem not to have noticed that, over the past fifty years, the nature of the climate debate has radically changed as a result of major global political and economic developments. What’s happened is that what was once the so-called Third World has for a long time been powerful enough to ignore the West and take charge of environmental negotiation – a process that started with the ‘Berlin Mandate’ at COP1 in 1994 (see above). And the increasingly meaningless distinction between the ‘developing’ world and the ‘developed’ world, introduced by the UN in 1992 as a way of persuading poorer countries to get involved in climate negotiation, has paradoxically become the reason why progress on GHG reduction has become virtually impossible.
It’s surely obvious by now that the Stockholm Dilemma will never be resolved. And that there’s nothing the West (or more accurately the EU, the UK, Australia and a few smaller countries) can do about it.
Notes and references
i See https://srv1.worldometers.info/world-population/population-by-region/?utm_source=chatgpt.com
ii See https://edgar.jrc.ec.europa.eu/report_2025?vis=ghgtot#emissions_table
iii See for example Fairfield Osborn’s book The Plundered Planet (1948), William Vogt’s Road to Survival (1948), Rachel Carson’s Silent Spring (1962), the dire predictions in the Club of Rome report, Limits to Growth (1968) and, in particular, Barbara Ward’s report, Only One Earth (1972). Several of today’s environmentalists share the view that economic growth causes environmental degradation. See for example Less is More: How Degrowth Will Save The World (2021) by Jason Hickel.
iv Maurice Strong, a Canadian businessman-turned-diplomat, organised the Conference and was its Secretary General, having first commissioned Limits to Growth (see Note 3) that established much of its intellectual groundwork. He is widely seen as a pioneer of international environmental concern and of institutionalising it within the United Nations.
v At the time these countries were commonly referred to as ‘underdeveloped’ or, preferably, as ‘developing’. The ‘Third World’ was a standard label used for countries outside the Western or Soviet blocs.
vi Franz Fanon’s book The Wretched of the Earth (1961) was very influential in intellectual circles in the West at this time. Indian PM Indira Gandhi’s keynote speech at the Conference sets out the dilemma clearly: http://tiny.cc/dl6lqz. The speech is epitomised by this comment: ‘The environment cannot be improved in conditions of poverty.’
vii See Part One, chapter I (especially ‘proclamation’ 4) of this UN report on the conference: http://un-documents.net/aconf48-14r1.pdf.
viii See for example: https://www.federalreservehistory.org/essays/oil-shock-of-1978-79.
ix For Brundtland, see Our Common Future: http://www.un-documents.net/our-common-future.pdf.
x ibid – see paragraphs 27, 28 and 29 which do little to clarify the meaning of this rather vague concept.
xi Heralded in particular by James Hansen’s address the US Congress in 1988: https://www.sealevel.info/1988_Hansen_Senate_Testimony.html?utm_source=chatgpt.com
xii Described as the largest environmental conference ever held, the Summit’s outcome is outlined here: https://www.sustainable-environment.org.uk/Action/Earth_Summit.php
xiii For the full text of the UNFCCC see: https://unfccc.int/resource/docs/convkp/conveng.pdf
xiv See Note 1 above.
xv The omitted words are concerned with a different, but arguably equally important, issue: finance and technology transfer from developed to developing countries.
xvi See Article 4.2 (f) of the UNFCCC, under which parties might review ‘available information with a view to taking decisions regarding such amendments to the lists in Annexes I and II as may be appropriate, with the approval of the Party concerned’.
xvii See Article 2 (b) here: https://unfccc.int/resource/docs/cop1/07a01.pdf?utm_source=chatgpt.com
xviii This report provides some interesting background re non-Annex I parties’ determination: https://unfccc.int/resource/docs/1996/agbm/05.pdf?utm_source=chatgpt.com
xix See the Byrd-Hagel resolution adopted unanimously by the US Senate in June 1997: https://www.congress.gov/bill/105th-congress/senate-resolution/98/text It stated that the US would not sign a protocol putting limits on Annex I countries unless it imposed specific, timetabled commitments on non-Annex I countries.
xx For the text of the Kyoto Protocol see: https://unfccc.int/resource/docs/convkp/kpeng.pdf. Note in particular how Article 10’s provision that it did not introduce ‘any new commitments for Parties not included in Annex I’ ensured that developing countries were not bound by the Protocol’s emission reduction obligations.
xxi Note for example how China was responsible for an astonishing reduction in poverty from the 1980s to the early 2000s: https://ourworldindata.org/data-insights/extreme-poverty-in-china-has-been-almost-eliminated-first-in-urban-then-in-rural-regions?utm_source=chatgpt.com
xxii See Note 1 above.
xxiii See for example: https://www.ipcc.ch/report/ar4/syr/
xxiv The Bali Action Plan can be seen here: https://www.preventionweb.net/files/8376_BaliE.pdf?startDownload=true
xxv See the UN Secretary-General’s extraordinary speech in Copenhagen just before COP15: https://unfccc.int/files/meetings/cop_15/statements/application/pdf/speech_opening_hls_cop15_ban_ki_moon.pdf
xxvi The full extract: ‘If we do not reach a deal at this time, let us be in no doubt: once the damage from unchecked emissions growth is done, no retrospective global agreement in some future period can undo that choice. By then it will be irretrievably too late.’ See https://www.theguardian.com/environment/2009/oct/19/gordon-brown-copenhagen-climate-talks
xxvii In particular those confirmed by section 1(b)(i) of the Bali Action Plan – see Note 24 above.
xxviii See this overall review of the outcome: http://news.bbc.co.uk/1/hi/8426835.stm.
xxix Rupert Darwall: The Age of Global Warming, 310
xxx The ‘Copenhagen Accord’ was an attempt by some countries to rescue something from this debacle: https://unfccc.int/resource/docs/2009/cop15/eng/l07.pdf. A non-binding document (the Conference only ‘took note’ of it) it stated for example that global temperature should not rise more than 2ºC above pre-industrial levels – although it didn’t specify a date for this.
xxxi See Note 1 above.
xxxii See for example this report on the 2014 conference in Lima: http://tiny.cc/w4zv001
xxxiii For example, China’s INDC said only that it planned to ‘achieve the peaking of carbon dioxide emissions around 2030’ (no mention of the level of such ‘peak’ or of what will happen thereafter) and to ‘lower carbon dioxide emissions per unit of GDP by 60% to 65% from the 2005 level’. And South Korea merely said that it ‘plans to reduce its greenhouse gas emissions by 37% from the business-as-usual (BAU,850.6 MtCO2eq) level by 2030 across all economic sectors’, i.e. emissions will continue to increase but not by as much as they might have done.
Note that ‘Intended Nationally Determined Contributions’ (INDCs) are referred to as ‘Nationally Determined Contributions’ (NDCs) in Articles 3 and 4 of in the Paris Agreement – see Note 34 below. All NDCs submitted to the UNFCCC secretariat can be found here: https://unfccc.int/NDCREG
xxxiv The full text of the Paris Agreement can be found here: https://unfccc.int/files/meetings/paris_nov_2015/application/pdf/paris_agreement_english_.pdf
xxxv From an interview with the Observer in May 2025. Annan’s other comments are also interesting: https://www.kofiannanfoundation.org/publication/we-must-challenge-climate-change-sceptics/
xxxvi See the Ministerial Forward here: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/360596/hmg_paris_2015.pdf
xxxvii https://climateaction.unfccc.int/Events/ClimateActionSummit
xxxviii My note was an extract from a press release by the PRC’s Ministry of Ecology and Environment: https://english.mee.gov.cn/News_service/news_release/201908/t20190829_730517.shtml?utm_source=chatgpt.com
xxxix https://populationmatters.org/news/2019/09/un-climate-action-summit-fails-to-deliver-climate-action/
xl http://tiny.cc/zg0w001 The official summary noted how countries such as China — speaking for the bloc including Brazil, India, South Africa — repeatedly called for developed countries to meet financial commitments: http://tiny.cc/3h0w001
xli https://www.reuters.com/article/us-health-coronavirus-climatechange-idUSKBN21J6QC/
xlii http://tiny.cc/js1w001, http://tiny.cc/dv1w001 and http://tiny.cc/zs1w001
xliii https://ca1-clm.edcdn.com/assets/brief_-_countries_with_no_or_insignificant_ndc_updates_2.pdf?utm_source=chatgpt.com
xliv See Note 1 above.
xlv http://tiny.cc/w22w001 and http://tiny.cc/w22w001
xlvi https://kyma.com/cnn-world/2021/11/11/china-and-india-among-22-nations-calling-for-key-section-on-emissions-be-ditched-from-cop26-agreement/?utm_source=chatgpt.com
xlvii The Glasgow Climate Pact can be found here: https://unfccc.int/sites/default/files/resource/cop26_auv_2f_cover_decision.pdf
xlviii See Note 1 above.
xlix See observations here: http://tiny.cc/q52w001
l The Guardian’s view: http://tiny.cc/872w001
li https://unfccc.int/sites/default/files/resource/cma2023_L17_adv.pdf
liii President Lula’s comment can be found here: http://tiny.cc/ja2w001 A prescient observation – although not perhaps in the way he intended.
lv This Guardian article notes how the 29 objectors’ demands were ignored: http://tiny.cc/ei2w001.
lvi https://unfccc.int/sites/default/files/resource/cma2025_L24_adv.pdf
lvii Under ‘EU had a bad COP’ here: https://www.bbc.co.uk/news/articles/cp84m16mdm1o
lviii For example the Guardian is unhappy: http://tiny.cc/ux2w001
lix See this https://www.cfact.org/2025/11/20/coal-is-still-a-fuel-of-choice-in-the-global-south/ and this https://www.instituteforenergyresearch.org/fossil-fuels/coal/coal-is-still-king-globally/
lx See Note 1 above.
Venezuela Has Right to Have Relations With China, Russia, Cuba, Iran – Acting President
Sputnik – 16.01.2026
Venezuela has the right to relations with all countries of the world, including China, Russia, Cuba, and Iran, and will exercise this right in compliance with international norms, Venezuelan Acting President Delcy Rodriguez said on Thursday.
Venezuela’s Acting President Delcy Rodríguez said the country’s energy dialogue with the United States is not new, but stressed that it is now taking place amid “aggression and a fierce threat.”
“Venezuela has the right to relations with China, with Russia, with Cuba, with Iran — with all the peoples of the world,” Rodríguez said while presenting the government’s 2025 annual report.
She said Caracas is shaping energy cooperation based on “decency, dignity and independence,” rejecting both internal and external constraints aimed at influencing Venezuela’s foreign policy.
Villains of Judea: Paul Singer’s Empire of Debt & Demographic Replacement
Paul Singer is the embodiment of Jewish plutocracy
José Niño Unfiltered | January 12, 2026
Paul Elliott Singer stands as one of the most influential figures in global finance. The Jewish billionaire hedge fund manager has amassed a fortune estimated at $6.2 billion to $6.7 billion by purchasing distressed sovereign debt and corporate bonds at deep discounts, then pursuing ruthless legal campaigns to extract full repayment plus interest.
Born August 22, 1944, in Teaneck, New Jersey, Singer transformed a $1.3 million startup in 1977 into Elliott Management, a hedge fund empire managing approximately $65.5 billion to $72 billion in assets.
Yet Singer does more than just make financial moves. He has emerged as a kingmaker in Republican politics, becoming the second-largest GOP donor in 2016, and a major force behind AIPAC, immigration reform, and LGBT rights advocacy. His business model has devastated entire communities from Sidney, Nebraska, to Buenos Aires, Argentina. His political activism spans seemingly contradictory causes, supporting both hawkish pro-Israel policies and same-sex marriage rights. His most recent venture, the $5.9 billion purchase of Venezuela’s Citgo assets, positions him to reap billions from the Trump administration’s military intervention in Venezuela.
Singer’s business model has earned him the moniker vulture capitalist. In the 1990s, Singer began leaving his mark after purchasing $20 million in Peruvian sovereign debt. Through aggressive litigation, he eventually secured a payout of $58 million, nearly triple his investment. A U.S. court revealed that Elliott’s purchase of Peruvian debt was made with the explicit intention of pursuing full repayment through lawsuits. Investigative journalist Greg Palast reported that Singer’s lawyer allegedly told him Singer allowed Peru’s President Alberto Fujimori, who fled the country ahead of murder charges, to escape in return for ordering Peru’s treasury to pay Singer $58 million.
Between 2002 and 2003, Singer earned over $100 million from a $30 million investment in Congo-Brazzaville debt. But his most audacious campaign targeted Argentina. After Argentina’s 2001 economic crisis, Singer purchased distressed bonds for approximately $117 million. He refused to participate in debt restructuring agreements that other creditors accepted, instead pursuing full repayment through international courts. The campaign culminated in a 2016 settlement that netted Elliott Management $2.4 billion, a staggering 1,270 percent return.
Singer’s tactics proved extraordinary even by hedge fund standards. In 2012, Elliott successfully convinced a Ghanaian court to detain the Argentine naval training vessel ARA Libertad with 220 crew members aboard, demanding $20 million for its release. Then-Argentine President Cristina Fernández de Kirchner refused to pay Singer’s fund, calling Elliott and similar firms “financial terrorists” and vulture funds. The Obama administration and Secretary of State Hillary Clinton demanded courts dismiss Singer’s attempt to bankrupt Argentina, but Singer’s legal campaign ultimately prevailed.
Pro-Israel Bankroller
Singer has emerged as one of the most significant donors to pro-Israel causes in the United States. Through The Paul E. Singer Foundation, he has donated approximately $300 million since 2010. Singer donated $2 million to AIPAC and contributed $3 million to AIPAC’s super PAC, United Democracy Project, since 2022, making him tied for AIPAC’s third-largest donor. He serves on the board of directors of the Republican Jewish Coalition and co-founded Start-Up Nation Central, an organization dedicated to connecting Israeli innovation with global markets.
Singer has also been a major funder of the Foundation for Defense of Democracies, a neoconservative think tank advocating hawkish policies aligned with Israeli interests. From 2008 to 2011, Singer contributed $3.6 million to FDD, making him the organization’s second-largest donor. The organization has been described by former Secretary of State Colin Powell’s chief of staff Lawrence Wilkerson as a fervent advocate for war against Iran. At the Jewish Funders Network in Jerusalem, Singer stated that “Israel may be the only insurance policy all Jews, everywhere, can rely upon for the safety and continuity of Judaism.”
Promoter of LGBT Degeneracy and Mass Migration
Like many Jewish plutocrats, Singer became a significant supporter of LGBT causes after his son Andrew came out as a homosexual. In 2012, Singer provided $1 million to start American Unity PAC, whose sole mission was to encourage Republican candidates to support same-sex marriage. From 2012 to 2015, he contributed over $5.5 million to this organization. In 2013, Singer donated $500,000 to the Human Rights Campaign. Since 2001, Singer has donated more than $11 million toward legalizing homosexual marriage and supporting LGBT causes.
Singer’s crusade to redefine marriage within Republican ranks was just one facet of his broader agenda; he soon pivoted to advocating mass immigration to transform America’s demographics. In 2013, Singer made a six-figure donation to the National Immigration Forum to support comprehensive immigration reform, better known as amnesty. As one of the first high-profile Republican megadonors to publicly back amnesty, Singer worked to marshal conservative support for an overhaul of federal laws. In 2014, Singer formed the American Opportunity Alliance, bringing together wealthy Republican donors who shared his support for LGBTQ rights, immigration reform, and Israel.
Singer’s Looting of Sidney, Nebraska
Singer’s domestic business dealings generated controversies as devastating as his international operations. In 2015, Elliott Management acquired an 11 percent stake in outdoor retailer Cabela’s and forced a merger with Bass Pro Shops that devastated Sidney, Nebraska, where Cabela’s was headquartered. The town experienced massive job losses, a significant housing value collapse, and economic depression. According to court filings, Elliott pressured Cabela’s board to sell the company until the board relented. The merger resulted in Elliott making nearly $100 million profit. Residents told Fox News producers that the hedge fund destroyed their town, with one saying, “If money is that big of a God to him, he is a pretty sick human being.”
Tucker Carlson’s Exposé
In December 2019, Fox News host Tucker Carlson devoted a major investigative segment to Paul Singer, focusing on the Cabela’s case. Carlson described Singer’s business model as “vulture capitalism” that involves “buying large stakes in American companies, firing workers, driving up short-term share prices, and in some cases, taking government bailouts.” He stated, “It bears no resemblance whatsoever to the capitalism we were promised in school. It creates nothing. It destroys entire cities. It couldn’t be uglier or more destructive.”
Carlson emphasized Singer’s political power, noting that “people like Paul Singer have tremendous influence over our political process.” He revealed that Singer was “the second largest donor to the Republican Party in 2016 and has given millions to a super PAC that supports Republican senators. Carlson noted, “You may never have heard of Paul Singer, which tells you a lot in itself, but in Washington he is rock star famous.”
As Carlson was producing the segment, he reported being warned repeatedly by people around Washington, “Don’t criticize Paul Singer, that’s not a good idea.” During the broadcast, Carlson received a text from a very well-known person in Washington saying, “Holy smokes, I can’t believe you’re doing this. I’m afraid of Paul Singer.”
Venezuela and Citgo
One of Singer’s most recent controversial business deals involves Venezuela’s Citgo Petroleum. In November 2025, Elliott Investment Management won a court-mandated auction to purchase Citgo for $5.9 billion. Citgo represents the crown jewel of Venezuela’s international oil assets, owning three major Gulf Coast refineries with capacity to process 800,000 barrels per day, 43 oil terminals, and over 4,000 gas stations.
Singer acquired Citgo at what multiple sources describe as a major discount. Court advisors estimated Citgo’s actual value at approximately $13 billion, while Venezuelan officials valued the assets at $18 billion to $20 billion. This means Singer paid roughly 45 percent of the estimated market value.
A highly controversial aspect of the sale involves Robert Pincus, the court-appointed special master who oversaw the auction and recommended Singer’s bid. Pincus sits on the national board of directors of AIPAC. Gold Reserve Inc., a competing bidder that offered $7.9 billion, filed motions to disqualify Pincus for conflicts of interest. Venezuela rejected the sale’s legitimacy, calling it a “fraudulent process” and the “theft of the century.”
Trump’s Venezuela Intervention is Singer’s Wet Dream
The timing of events raised serious questions about the relationship between Singer’s Citgo purchase and Trump administration actions. In 2024, Singer donated $5 million to Trump’s super PAC and contributed $37 million to support Republican congressional candidates. On January 3, 2026, U.S. armed forces conducted a military raid in Caracas, capturing Venezuelan President Nicolás Maduro.
The removal of Maduro positions Singer to reap enormous profits. Economist Paul Krugman noted, “If Trump lifts that embargo, Singer will receive a huge windfall.” Within days of Maduro’s capture, Trump announced that Venezuela would be turning over between 30 and 50 million barrels of oil to the United States.
Rep. Thomas Massie (R-KY), who is a staunch opponent of the intervention in Venezuela, also caught on to how Singer stands to benefit from military action against Venezuela. He tweeted on January 4, 2026, “According to Grok, Paul Singer, globalist Republican mega-donor who’s already spent $1,000,000 to defeat me in the next election, stands to make billions of dollars on his distressed CITGO investment, now that this administration has taken over Venezuela.”
As Massie noted, Singer has ponied up $1 million to MAGA KY, a super PAC seeking to unseat the Kentucky congressman. Singer and his fellow Zionist Jews view Massie as an obstacle to further consolidating Jewish supremacy in the halls of Congress.
All told, Singer is the embodiment of Jewish plutocracy. He bankrolls the West’s demise through his advocacy of LGBT degeneracy, mass migration, never-ending wars on behalf of world Jewry, and vulture finance. Americans must awaken to these existential threats, revoke their elite privileges, and halt the Great Replacement before it consigns our polities to historical oblivion.
Former Head of Israeli Military Intelligence Directorate: There’s a ‘very significant influence operation by the US’ in Iran
The Dissident | January 14, 2026
Recently, the Israeli newspaper Maariv interviewed the head of the Military Intelligence Directorat in Israel from 2018-2021, Tamir Hayman, who revealed that the United States currently has a “Significant Influence Operation” on the ground in Iran.
In the interview, Hayman said, “If the question is, is there zero operation right now? The answer is no, because there is already an operation. There is currently a very significant influence operation by the US” referring to the current unrest happening in Iran.
He added, “The sequence of news that is received from within Iran, rumors that are coming, videos that are coming, there are many things that are happening that have no explanation. It could be a coincidence, and it could be something else. Simply put, an influence effort is an effort that operates primarily in the cyber realm, and in the realm of local disruption and subversion, and there are some.”
Along with this, Tamir Hayman, acknowledged that U.S. sanctions were the cause of the economic issues that in Iran that sparked the initial protests in Iran which are apparently being exploited by American and Israeli intelligence, saying, “there is the attempt, as we heard tonight from Trump, that this is a path of negotiation with the Americans, that this is really the only thing that can save the Iranian economy, the lifting of sanctions”.
This comment comes at the same time that Tamir Morag, the Diplomatic Correspondent for the Netanyahu-linked Channel 14 in Israel, reported that “foreign actors are arming the protesters in Iran with live firearms, which is the reason for the hundreds of regime personnel killed.”
American and Israeli officials have been fairly open about the fact that Israeli intelligence is currently operating on the ground in Iran, with the former Secretary of State and CIA director, Mike Pompeo saying, “Happy New Year to every Iranian in the streets. Also, to every Mossad agent walking beside them” and the Israeli Heritage Minister, Amichai Eliyahu saying, “When we attacked in Iran during ‘Rising Lion’ we were on its soil and knew how to lay the groundwork for a strike. I can assure you that we have some of our people operating there right now”.
But now, Tamir Morag has revealed that there are “very significant influence operations by the US” in Iran, which include “operates primarily in the cyber realm, and in the realm of local disruption and subversion” and according to Tamir Morag, apparent operations to arm protestors in Iran to kill Iranian government officials.
Referring to the protests in Iran, the U.S. government connected private intelligence firm Stratfor, wrote, “the United States may also try to intervene, such as by covertly helping to organize the protesters”, something that is apparently already underway through American “influence operations”.
Eilat port faces worst crisis as Red Sea shipping collapses
Al Mayadeen | January 12, 2026
The southern port of Eilat in occupied Palestine is facing the most severe crisis in its history, with operations nearly paralyzed for more than two years amid disruptions to Red Sea shipping routes, attacks on vessels, and escalating regional tensions, according to Yedioth Ahronoth.
The newspaper reported that port workers arrive each morning to empty docks, prepared to work, but with no ships docking. Once generating around 240 million shekels annually, the port’s revenues have dropped to almost zero, while government assistance has amounted to just 15 million shekels.
According to the report, the General Federation of Labor, the Histadrut, pledged an additional 5 million shekels to prevent layoffs, but the funds have yet to be delivered due to a suspected conflict-of-interest scandal involving its head, Arnon Bar-David.
The crisis has been compounded by a recent decision by the finance and transport ministries not to extend the port’s operating concession, citing failure to meet required conditions. Port management is reportedly preparing to challenge the decision and demand that the government reverse its stance.
Yedioth Ahronoth noted that operations at the Port of Eilat came to a complete halt after Sanaa seized a vessel bound for the port in November 2023. This followed what had been a record year, with around 150,000 vehicles handled by October 2023 and expectations of another 15,000 arrivals.
Port finance vice president Batya Zafrani said that on the day of the incident, shipping companies NYK and ZIM suspended deliveries for several months. “We thought the government would intervene, but after three months we began worrying about the workers’ future,” she said, adding that the 15 million shekels in government aid would only cover two months of operations.
Avi Hormaro, chairman of the Eilat port and chief executive of the Nakash Group, criticized the government’s handling of the crisis, saying the Israeli occupation authorities had neglected the port. “The transport ministry is making efforts, but other ministries are not interested,” he said.
Hormaro added that just as Kiryat Shmona had been forgotten, the port was also being sidelined, arguing that “a group in Yemen is deciding for the Israeli occupation whether it has a southern port or not.” He stressed that responsibility for keeping Red Sea shipping lanes open lies with the government, not the port authority.
Eilat port shut down due to debt
The Israeli economic media outlet The Marker reported in July that the port of Eilat will completely cease operations starting next Sunday after the city municipality froze its bank accounts due to millions of shekels in accumulated debts.
This development comes as the port has faced near-total paralysis since November 2023, when Yemen imposed a naval blockade on ships heading to “Israel”, leading to a sharp decline in revenue and a collapse in commercial activity at the facility.
The Eilat Municipality announced that it had frozen the port’s bank accounts due to massive accumulated debts, and according to the Israeli economic outlet The Marker, all operations will come to a complete halt starting Sunday, signaling a total economic shutdown of the port.
The crisis at Eilat Port began when Yemeni forces imposed a naval blockade on ships heading to “Israel,” prompting international shipping companies to avoid the Red Sea route, which brought the port’s operations to a near standstill and caused a collapse in its revenue.

