Exxon lobbies US government on Iran sanctions
Press TV – May 22, 2015
Exxon Mobil is reported to have stationed lobbyists to push the envelope on Iran sanctions with the US government as Western companies are jostling for access to the Middle East country’s massive oil and gas fields.
According to Bloomberg, the Texas-based oil company has hired a lobbying firm founded by former Republican Senator Don Nickles to press the US government on lifting sanctions against Tehran.
Western companies are eager to work on Iranian fields because they are among the largest and cheapest to develop, it quoted on economist as saying.
“Given sanctions and the dilapidation of oilfields over time, it looks like it’d be a lot of work” for foreign companies, Allen Good, a Chicago-based analyst at Morningstar Inc. told Bloomberg.
“But unlike Iraq, you’d don’t have a civil war going on so it’d be an easier path to growing production. You could get a pretty good bump pretty quickly,” he said.
Western companies are holding their breath as nuclear negotiations between Iran and the US and other members of the P5+1 group are heading to the decisive round.
Political factors
Expectations of a final agreement and consequent removal of sanctions have put energy entities on the watch but those hopes are being sapped by reports that the West was hunkering down for “excessive demands”.
The US government reasserted its obdurate position on Thursday by announcing sanctions on two Arab airlines for selling nine used commercial aircraft to Iran.
While the direction of the talks remains unclear, foreign companies are vying to forge initial links with Iran.
On Thursday, CEO of Italy’s Eni SpA Claudio Descalzi said he traveled to Tehran two weeks ago. Speaking to La Repubblica, Descalzi said Iran could “start attracting investment” from foreign companies again if a nuclear deal was sealed.
Eni and other major European energy giants left Iran after the US intensified sanctions on the country.
American companies are banned from any business with Iran under a US law which has effectively been in place since the 1979 Islamic Revolution.
On Tuesday, President Barack Obama renewed unilateral US restrictions on purchases of oil and oil products from Iran.
Exxon business in Iran goes back to the period before the revolution when the shah was a close ally of the United States.
No problem
Earlier this week, an Iranian oil ministry official said the country’s oil and gas is open to American investment but US companies have to tie up with Iranian companies under certain terms.
“From the government’s standpoint, there is no limitation for oil investment by the Americans in Iran,” deputy Minister of Petroleum Amir Hossein Zamaninia said.
The official said European and American companies are showing strong interest for investment in Iran’s oil and gas industries.
“Over the past couple of months, not one or two companies but several American entities have announced readiness to invest and participate in Iran’s oil industry projects if sanctions are annulled.”
Zamaninia said most US companies have proposed to partner with other companies for investments as he spelled out Iran’s conditions.
“The pattern for partnership and investment of American companies in Iran’s oil and gas industry has to be based on the trade package which has been earmarked to the Iranian private sector,” he said.
US & Israel inequality champions of developed world – OECD
RT | May 22, 2015
Inequality in the developed world is the sharpest in 30 years, a recent OECD research reveals. Yet even in this context, two countries stand out in the disparity between rich and poor: the USA and Israel.
“In most countries, the gap between rich and poor is at its highest level since 30 years. Today, in OECD countries, the richest 10 percent of the population earn 9.6 times the income of the poorest 10 percent,” said the Organization for Economic Cooperation and Development (OECD) in a report released Thursday. “In the 1980s this ratio stood at 7:1 rising to 8:1 in the 1990s and 9:1 in the 2000s.”
Compare the average 9.6 index with the US, where the richest 10 percent of the population earn 16.5 times as much as the poorest 10 percent. The poorest citizens of Israel scrape by on one-fifteenth of the earnings of the richest 10 percent.
The US also has the widest gap between the income of the richest and the average households. The top 5 percent of US households own practically 91 times the wealth of the average.
The OECD report, covering the situation in 18 member nations, says half of total wealth resides in the hands of just 10 percent of population, while the next 50 percent hold almost all of the second half, leaving the remaining 40 percent with the scraps – just over 3 percent of the wealth.
The record level of inequality is explained partly by a wider gap in education between the richest and poorest social groups, leading to lower quality and productivity in the workforce.
Another factor that OECD considers responsible for growing inequality is the growth in what it calls non-standard work, which includes temporary contracts and self-employment.
Since the mid-’90s more than half of all new jobs created in OECD countries fell into this category, according to the report. Families that rely on this type of employment are much more likely to be poor, exacerbating overall inequality.
OECD experts warn that the rising level of inequality is hampering world economic growth.
“High and often growing inequality raises major economic concerns, not just for the low earners themselves, but for the wider health and sustainability of our economies,” the report says. “Put simply: rising inequality is bad for long-term growth.”
The report also cites increasingly less progressive tax systems and social benefits losing ground to inflation as reasons why income redistribution schemes have become less effective as of late. Instead, the study advocates a more direct system of taxation and transfer.
“Redistribution via taxes and transfers is a powerful instrument to contribute to more equality and more growth,” the report says.
It also mentions the increasing number of working women as one of the factors contributing to the growth in inequality. Women earn 15 per cent less than men, according to the report, which says ensuring equal pay for men and women could be one way to reduce the wealth gap.
Latin America is one of the few regions where inequality hasn’t been growing in the last 30 years, despite the social gap there being initially higher, the OECD said.
Obama renews ban on Iran oil trade
Press TV – May 20, 2015
In a decree, issued by his office, the US president said that “global economic conditions, increased oil production by certain countries, and the level of (oil) spare capacity” had allowed him to take the decision.
Saudi Arabia, a key US ally in the Middle East, has ramped up production leading to a crash in crude prices.
“I determine … that there is a sufficient supply of petroleum and petroleum products from countries other than Iran to permit a significant reduction in the volume of petroleum and petroleum products purchased from Iran by or through foreign financial institutions,” Obama said in his statement.
The statement also referred to a US measure which forbids transactions with Iran.
Under the measure, foreign companies are cut off from the US financial system and face sanctions if they engage in transactions with Iran’s financial institutions.
However, a preliminary agreement reached in Nov. 2013 allows Iran to sell around 1 million barrels per day of crude oil.
The US restrictions fly in the face of that agreement under which no new sanctions should be imposed on the Islamic Republic.
Washington contends the agreement does not include renewal of the previous restrictions.
The US and five other countries are currently discussing a possible final agreement with Iran by the end of June.
Iran says any deal should envisage immediate removal of all sanctions, with the US saying they should be lifted gradually.
Los Angeles to raise minimum wage to $15 by 2020
RT | May 20, 2015
The Los Angeles City Council agreed to raise the city’s minimum wage by more than a dollar per hour each year until the amount reaches $15 an hour by 2020, city officials said on Tuesday. The measure would affect the finances of 800,000 people.
Based on a 40-hour workweek, the raise would amount to an additional $48 a week or approximately $2,000 a year before taxes for the next five years. Los Angeles is now the largest city to adopt major a minimum-wage increase, joining three others that have passed similar legislation: Chicago, San Francisco and Seattle. The move also puts pressure on other large urban centers, such as New York, to do the same.
“Make no mistake,” said Councilman Paul Krekorian, the measure’s sponsor, according to the Los Angeles Times. “Today the city of Los Angeles, the second-biggest city in the nation, is leading the nation.”
The measure also ties yearly wage increases to the consumer price index starting in 2022. In Krekorian’s original measure, an amendment was included that would have required employers to grant workers 12 paid days off each year. There was a huge outcry from the business community, however, and the amendment was dropped before Tuesday’s vote. It will be considered again as separate legislation.
The wage increase measure will now go to the city attorney’s office to be drafted as an ordinance, and then back to the City Council for approval later this year, before finally being signed into law by the Mayor. The first increase to go into effect will push the minimum wage from $9 per hour up to $10.50 in July 2016.
The City Council’s 14-1 vote on the measure did not come without inducement. Corporate employers have been reluctant to increase hourly pay rates despite record profits, and have left it largely up to politicians to try to solve the problem of stagnating wages, as the cost of living continues to increase.
The much-publicized efforts of the Service Employees International Union to support fast food workers in their quest for a $15 wage have been effective in raising the bar for wages. As part of the campaign, it publicized how corporations have been relying on state subsidies, such as food stamps and housing support, to supplement their employees’ wages.
Critics, many of them business leaders, say the increase will turn the city into a“wage island,” pushing businesses away into places outside the city limits where they can pay employees less.
“They are asking businesses to foot the bill on a social experiment that they would never do on their own employees,” Stuart Waldman, president of the Valley Industry and Commerce Association trade group, told the New York Times.
“A lot of businesses aren’t going to make it. It’s great that this is an increase for some employees, but the sad truth is that a lot of employees are going to lose their jobs.”
Monsanto’s Worst Fear May Be Coming True
By Jonathan Latham, PhD | Independent Science News | May 18, 2015
The decision of the Chipotle restaurant chain to make its product lines GMO-free is not most people’s idea of a world-historic event. Especially since Chipotle, by US standards, is not a huge operation. A clear sign that the move is significant, however, is that Chipotle’s decision was met with a tidal-wave of establishment media abuse. Chipotle has been called irresponsible, anti-science, irrational, and much more by the Washington Post, Time Magazine, the Chicago Tribune, the LA Times, and many others. A business deciding to give consumers what they want was surely never so contentious.
The media lynching of Chipotle has an explanation that is important to the future of GMOs. The cause of it is that there has long been an incipient crack in the solid public front that the food industry has presented on the GMO issue. The crack originates from the fact that while agribusiness sees GMOs as central to their business future, the brand-oriented and customer-sensitive ends of the food supply chain do not.
The brands who sell to the public, such as Nestle, Coca-Cola, Kraft, etc., are therefore much less committed to GMOs. They have gone along with their use, probably because they wish to maintain good relations with agribusiness, who are their allies and their suppliers. Possibly also they see a potential for novel products in a GMO future.
However, over the last five years, as the reputation of GMOs has come under increasing pressure in the US, the cost to food brands of ignoring the growing consumer demand for GMO-free products has increased. They might not say so in public, but the sellers of top brands have little incentive to take the flack for selling GMOs.
From this perspective, the significance of the Chipotle move becomes clear. If Chipotle can gain market share and prestige, or charge higher prices, from selling non-GMO products and give (especially young) consumers what they want, it puts traditional vendors of fast and processed food products in an invidious position. Kraft and MacDonalds, and their traditional rivals can hardly be left on the sidelines selling outmoded products to a shrinking market. They will not last long.
MacDonald’s already appears to be in trouble, and it too sees the solution as moving to more up-market and healthier products. For these much bigger players, a race to match Chipotle and get GMOs out of their product lines, is a strong possibility. That may not be so easy, in the short term, but for agribusiness titans who have backed GMOs, like Monsanto, Dupont, Bayer and Syngenta; a race to be GMO-free is the ultimate nightmare scenario.
Until Chipotle’s announcement, such considerations were all behind the scenes. But all of a sudden this split has spilled out into the food media. On May 8th, Hain Celestial told The Food Navigator that:
“We sell organic products… gluten-free products and… natural products. [But] where the big, big demand is, is GMO-free.”
According to the article, unlike Heinz, Kraft, and many others, Hain Celestial is actively seeking to meet this demand. Within the food industry, important decisions, for and against GMOs, are taking place.
Why the pressure to remove GMOs will grow
The other factor in all this turmoil is that the GMO technology wheel has not stopped turning. New GMO products are coming on stream that will likely make crop biotechnology even less popular than it is now. This will further ramp up the pressure on brands and stores to go GMO-free. There are several contributory factors.
The first issue follows from the recent US approvals of GMO crops resistant to the herbicides 2,4-D and Dicamba. These traits are billed as replacements for Roundup-resistant traits whose effectiveness has declined due to the spread of weeds resistant to Roundup (Glyphosate).
The causes of the problem, however, lie in the technology itself. The introduction of Roundup-resistant traits in corn and soybeans led to increasing Roundup use by farmers (Benbrook 2012). Increasing Roundup use led to weed resistance, which led to further Roundup use, as farmers increased applications and dosages. This translated into escalated ecological damage and increasing residue levels in food. Roundup is now found in GMO soybeans intended for food use at levels that even Monsanto used to call “extreme” (Bøhn et al. 2014).
The two new herbicide-resistance traits are set to recapitulate this same story of increasing agrochemical use. But they will also amplify it significantly,
The specifics are worth considering. First, the spraying of 2,4-D and Dicamba on the newer herbicide-resistant crops will not eliminate the need for Roundup, whose use will not decline (see Figure).
Predicted herbicide use to 2025 (Mortensen et al 2012)
That is because, unlike Roundup, neither 2,4-D nor Dicamba are broad-spectrum herbicides. They will have to be sprayed together with Roundup, or with each other (or all of them together) to kill all weeds. This vital fact has not been widely appreciated.
Confirmation comes from the companies themselves. Monsanto is stacking (i.e. combining) Dicamba resistance with Roundup resistance in its Xtend crops and Dow is stacking 2,4-D resistance with Roundup resistance in its Enlist range. (Notably, resistance to other herbicides, such as glufosinate, are being stacked in all these GMO crops too.)
The second issue is that the combined spraying of 2,4-D and Dicamba and Roundup, will only temporarily ease the weed resistance issues faced by farmers. In the medium and longer terms, they will compound the problems. That is because new herbicide-resistant weeds will surely evolve. In fact, Dicamba-resistant and 2,4-D-resistant weeds already exist. Their spread, and the evolution of new ones, can be guaranteed (Mortensen et al 2012). This will bring greater profits for herbicide manufacturers, but it will also bring greater PR problems for GMOs and the food industry. GMO soybeans and corn will likely soon have “extreme levels” of at least three different herbicides, all of them with dubious safety records (Schinasi and Leon 2014).
The first time round, Monsanto and Syngenta’s PR snow-jobs successfully obscured this, not just from the general public, but even within agronomy. But it is unlikely they will be able to do so a second time. 2,4-D and Dicamba-resistant GMOs are thus a PR disaster waiting to happen.
A pipeline full of problems: risk and perception
The longer term problem for GMOs is that, despite extravagant claims, their product pipeline is not bulging with promising ideas. Mostly, it is more of the same: herbicide resistance and insect resistance.
The most revolutionary and innovative part of that pipeline is a technology and not a trait. Many products in the GMO pipeline are made using RNA interference technologies that rely on double-stranded RNAs (dsRNAs). dsRNA is a technology with two problems. One is that products made with it (such as the “Arctic” Apple, the “Innate” Potato, and Monsanto’s “Vistive Gold” Soybeans) are unproven in the field. Like its vanguard, a Brazilian virus-resistant bean, they may never work under actual farming conditions.
But if they do work, there is a clear problem with their safety which is explained in detail here (pdf).
In outline, the problem is this: the long dsRNA molecules needed for RNA interference were rejected long ago as being too hazardous for routine medical use (Anonymous, 1969). The scientific literature even calls them “toxins”, as in this paper title from 1969:
Absher M., and Stinebring W. (1969) Toxic properties of a synthetic double-stranded RNA. Nature 223: 715-717. (not online)
As further evidence of this, long dsRNAs are now used in medicine to cause autoimmune disorders in mice, in order to study these disorders (Okada et al 2005).
The Absher and Stinebring paper comes from a body of research built up many years ago, but its essential findings have been confirmed and extended by more modern research. We now know why dsRNAs cause harm. They trigger destructive anti-viral defence pathways in mammals and other vertebrates and there is a field of specialist research devoted to showing precisely how this damages individual cells, whole tissues, and results in auto-immune disease in mice (Karpala et al. 2005).
The conclusion therefore, is that dsRNAs that are apparently indistinguishable from those produced in, for example, the Arctic apple and Monsanto’s Vistive Gold Soybean, have strong negative effects on vertebrate animals (but not plants). These vertebrate effects are found even at low doses. Consumers are vertebrate animals. They may not appreciate the thought that their healthy fats and forever apples also contain proven toxins. And on a business front, consumer brands will not relish defending dsRNA technology once they understand the reality. They may not wish to find themselves defending the indefensible.
The bottom line is this. Either dsRNAs will sicken or kill people, or, they will give opponents of biotechnology plenty of ammunition. The scientific evidence, as it currently stands, suggests they will do both. dsRNAs, therefore, are a potentially huge liability.
The last pipeline problem stems from the first two. The agbiotech industry has long held out the prospect of “consumer benefits” from GMOs. Consumer benefits (in the case of food) are most likely to be health benefits (improved nutrition, altered fat composition, etc.). The problem is that the demographic of health-conscious consumers no doubt overlaps significantly with the demographic of those most wary of GMOs. Show a consumer a “healthy GMO” and they are likely to show you an oxymoron. The likely health market in the US for customers willing to pay more for a GMO has probably evaporated in the last few years as GMOs have become a hot public issue.
The end-game for GMOs?
The traditional chemical industry approach to such a problem is a familiar repertoire of intimidation and public relations. Fifty years ago, the chemical industry outwitted and outmanoeuvered environmentalists after the death of Rachel Carson (see the books Toxic Sludge is Good for You and Trust Us We’re Experts). But that was before email, open access scientific publication, and the internet. Monsanto and its allies have steadily lost ground in a world of peer-to-peer communication. GMOs have become a liability, despite their best efforts.
The historic situation is this: in any country, public acceptance of GMOs has always been based on lack of awareness of their existence. Once that ignorance evaporates and the scientific and social realities start to be discussed, ignorance cannot be reinstated. From then on the situation moves into a different, and much more difficult phase for the defenders of GMOs.
Nevertheless, in the US, those defenders have not yet given up. Anyone who keeps up with GMOs in the media knows that the public is being subjected to an unrelenting and concerted global blitzkrieg.
Pro-GMO advocates and paid-for journalists, presumably financed by the life-science industry, sometimes fronted by non-profits such as the Bill and Melinda Gates Foundation, are being given acres of prominent space to make their case. Liberal media outlets such as the New York Times, the National Geographic, The New Yorker, Grist magazine, the Observer newspaper, and any others who will have them (which is most) have been deployed to spread its memes. Cornell University has meanwhile received a $5.6 million grant by the Gates Foundation to “depolarize” negative GMO publicity.
But so far there is little sign that the growth of anti-GMO sentiment in Monsanto’s home (US) market can be halted. The decision by Chipotle is certainly not an indication of faith that it can.
For Monsanto and GMOs the situation suddenly looks ominous. Chipotle may well represent the beginnings of a market swing of historic proportions. GMOs may be relegated to cattle-feed status, or even oblivion, in the USA. And if GMOs fail in the US, they are likely to fail elsewhere.
GMO roll-outs in other countries have relied on three things: the deep pockets of agribusinesses based in the United States, their political connections, and the notion that GMOs represent “progress”. If those three disappear in the United States, the power to force open foreign markets will disappear too. The GMO era might suddenly be over.
Endnote: The report by Jonathan Latham and Allison Wilson on RNA interference and dsRNAs in GMO crops is downloadable from here. Accompanying Tables are here.
References
Anonymous (1969) Interferon inducers with side effects. Nature 223: 666-667.
Bøhn, T., Cuhra, M., Traavik, T., Sanden, M., Fagan, J. and Primicerio, R. 2014. Compositional differences in soybeans on the market: Glyphosate accumulates in Roundup Ready GM soybeans. Food Chemistry 153: 207-215.
Okada C., Akbar S.M.F., Horiike N., and Onji M. (2005) Early development of primary biliary cirrhosis in female C57BL/6 mice because of poly I:C administration. Liver International 25: 595-603.
Karpala A.J., Doran T.J., and Bean A.G.D. (2005) Immune responses to dsRNA: Implications for gene silencing technologies. Immunology and cell biology 83: 211–216.
Mortensen, David A., J. Franklin Egan, Bruce D. Maxwell, Matthew R. Ryan and Richard G. Smith (2012) Navigating a Critical Juncture for Sustainable Weed Management. BioScience 62: 75-84.
Schinasi L and Maria E. Leon ME (2014) Non-Hodgkin Lymphoma and Occupational Exposure to Agricultural Pesticide Chemical Groups and Active Ingredients: A Systematic Review and Meta-Analysis. Int. J. Environ. Res. Public Health 11: 4449-4527.
IRNA: Israel ordered to pay Iran $1.1 billion
Press TV – May 20, 2015
An Israeli oil company has been ordered by a Swiss court to pay $1.1 billion to Iran in compensation in a long-standing legal battle related to a joint venture before the Islamic Revolution, the IRNA news agency says.
Citing an “informed source” at Iran’s Presidential Center for Legal Affairs, IRNA said the ruling relates to the Israeli company’s sale of Iranian oil and withholding the money.
Iran has been conducting three arbitration suits against Israel at French and Swiss courts in a legal tussle estimated worth several billion dollars.
The case relates to a joint venture established in 1968 under the defunct shah of Iran to ship the country’s oil to the Israeli port of Eilat in the Mediterranean for export to Europe.
Iran cancelled the contract after the Islamic Revolution of 1979 because the country doesn’t recognize Israel.
Tel Aviv, instead, expropriated Iran’s assets and launched its own litigation offensive against the Islamic Republic, which has been dismissed at international courts.
According to IRNA, the latest ruling pertains to a case related to the National Iranian Oil Company (NIOC)’s delivery of 14.75 million cubic meters of crude oil worth $450 million to Israel’s Trans-Asiatic Oil Ltd. or TAO.
In 1989, the Swiss court initially ordered TAO to pay $500 million to Fimarco Anstalt, a company registered before the revolution in Lichtenstein by NIOC.
The court put off proceedings for interest claims then, issuing a final ruling only this month, which ordered TAO to pay $1.1 billion in addition to $7 million in legal fees, IRNA quoted the source as saying.
The source said Iran has also launched a case against TAO in Panama’s courts for implementation of the ruling and original claims against the Israeli firm.
Switzerland’s Federal Supreme Court has reportedly allowed Iranian clients to file an arbitration claim for $7 billion against Israel.
The original claim is related to Iran’s shares in the Eilat-Ashkelon Pipeline Co. (EAPC), as well as two oil ports and storage facilities, and a fleet of tankers which have been expropriated by Israel.
The Tel Aviv regime has issued a secrecy order under which any information about the company’s operations and news of arbitration is subject to military censorship.
The EAPC, part of TAO, is one of the most secretive companies in Israel, operating under a special legal force since 1968.
The company enjoys immunity from public control and regime supervision including its comptroller as well as the Knesset and the media.
The Eilat-Ashkelon Pipeline Co. was built in the aftermath of the Sinai operation of 1956 against Arab armies.
During the years that Israel controlled Sinai, Israel stole pumps and pipes from Italian and Belgian firms operating oil fields in the peninsula and built the pipeline from Eilat.
Who Owns Agricultural Land in Ukraine?
By Elizabeth Fraser | Oakland Institute | May 8, 2015
The fate of Ukraine’s agricultural sector is on shaky ground. Last year, the Oakland Institute reported that over 1.6 million hectares (ha) of land in Ukraine are now under the control of foreign-based corporations. Further research has allowed for the identification of additional foreign investments. Some estimates now bring the total of Ukrainian farmland controlled by foreign companies to over 2.2 million ha;1 however, research has also identified important grey areas around land tenure in the country, and who actually controls land in Ukraine today is difficult to ascertain.
The companies and shareholders behind foreign land acquisitions in Ukraine span many different parts of the world. The Danish “Trigon Agri,” for example, holds over 52,000 ha. Trigon was established in 2006 using start-up capital from Finnish “high net worth individuals.” The company is traded in Stockholm (NASDAQ), and its largest shareholders include: JPM Chase (UK, 9.5 percent); Swedbank (Sweden, 9.4 percent); UB Securities (Finland, 7.9 percent); Euroclear Bank (Belgium, 6.6 percent); and JP Morgan Clearing Corp (USA, 6.2 percent).
The United Farmers Holding Company, which is owned by a group of Saudi Arabian investors, controls some 33,000 ha of Ukrainian farmland through Continental Farmers Group PLC.
AgroGeneration, which holds 120,000 ha of Ukrainian farmland, is incorporated in France, with over 62 percent of its shares managed by SigmaBleyzer, a Texas-based investment company.
US pension fund NCH Capital holds 450,000 ha. The company began in 1993 and boasts being some of the earliest western investors in Ukraine after the break-up of the Soviet Union. Over the past decade, the company has systematically leased out small parcels of agricultural land (around two to six hectares in size) across Ukraine, aggregating these into large-scale farms that now operate industrially. According to NCH Capital’s General Partner, George Rohr, the leases give the company the right to buy the currently-leased farmland once the moratorium on the sale of land in Ukraine is lifted.
Another subset of companies have Ukrainian leadership, often a mix of domestic and foreign investment, and may be incorporated in tax havens like Cyprus, Austria, and Luxembourg. Some of them are also led by Ukrainian oligarchs. For instance, UkrLandFarming controls the country’s largest land-bank, totalling 654,000 ha of land. 95 percent of the shares of UkrLandFarming are owned by multi-millionaire Oleg Bakhmatyuk with the remaining five percent having been recently sold to Cargill. Similarly, Yuriy Kosiuk, Ukraine’s fifth richest man, is the CEO of MHP, one of the country’s largest agricultural companies, which holds over 360,000 ha of farmland.
With the onset of the political crisis, several of these mostly Ukrainian-based companies have descended into crisis themselves. One example is Cyprus-incorporated Mriya Agro Holding, which holds a land-bank of close to 300,000 ha. In 2014, the company’s website (which is no longer available online) indicated that 80 percent of the shares of Mriya Agro Holding are/were owned by the Guta family (Ukrainian), who hold primary leadership positions in the company. The remaining 20 percent are/were listed on the Frankfurt Stock Exchange.
According to news sources, in summer 2014 the company defaulted on its payments for two large Eurobonds, putting its future into question. The company first enlisted the support of US-based Blackstone Group and Ukrainian-based Dragon Capital, both of whom withdrew support after only one month; and later, the international auditing and financial service firm, Deloitte. An international bondholder committee was struck, comprised of several US and UK-based investment groups (including CarVal Investors – Cargill’s investment arm), which together own over 50 percent of the debt owed on Mriya’s 2018 Eurobonds and 15 percent of the 2016 Eurobonds. The future of this firm is unclear with some sources suggesting a risk of bankruptcy.
Other Ukrainian-owned companies incorporated in tax havens are also experiencing difficulties. Sintal Agriculture Public Ltd (based in Cyprus, traded on the Frankfurt Stock Exchange as of 2008, and holding almost 150,000 ha of land) ceased trading in shares on January 29, 2014 “until further notice” after bankruptcy proceedings were initiated against the company. In 2013, its website (now also defunct) indicated that 36.3 percent of the company was free floating shares.
The potential bankruptcy of these corporations, and the involvement of Western investors in the crisis management, raises questions about the fate of the agricultural land they hold. At this time, it is not clear how control over the agricultural lands in question will be addressed and what the role of foreign companies and funds who have invested in these companies will be. However, if things progress in a similar way to neighboring Romania, foreign control of this land could transpire.
Romania has a similar story of dissolving collectivized farms, giving land titles to collective farm workers, and imposing a moratorium on the sale of agricultural land. Loopholes in the country’s national legislation have created opportunities for foreign control of land via bankruptcy proceedings. As documented by Judith Bouniol, the bankruptcy of national agribusinesses has provided a gateway for foreign control of Romania’s farmland.
It is far from clear if the same scenario could take place in Ukraine. However, this lesson from Romania emphasizes the importance of keeping close watch on these agricultural land deals. In addition, the murky situation around land ownership in Ukraine raises many questions. Perhaps the most important is whether the growing concentration of Ukrainian land in the hands of a few oligarchs and foreign corporations can benefit the country, its people, and its economy.
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1 Two land investment databases were accessed over the past year: the Land Matrix accessed in July 2014 and April 2015, and GRAIN’s 2012 data set on land investments worldwide. Taken individually, these databases suggest foreign land acquisitions of between 997,000 ha to 1.7M ha. When consolidated, individual deals reported by these databases represent over 2.2M ha of land in Ukraine.
Russia invites Greece to join BRICS bank
RT | May 12, 2015
Greece has been invited by Russia to become the sixth member of the BRICS New Development Bank (NDB). The $100 billion NDB is expected to compete with Western dominance and become one of the key lending institutions.
The invitation was made by Russian Deputy Finance Minister Sergey Storchak on Monday during a phone conversation with Greek Prime Minister Alexis Tsipras, according to a statement on Greece’s Syriza party website. Tsipras thanked Storchak, who’s currently a representative of the BRICS Bank for the invitation, and said Greece was interested in the offer.
“The Prime Minister thanked Storchak and said he was pleasantly surprised by the invitation for Greece to be the sixth member of the BRICS Development Bank. Tsipras said Greece is interested in the offer, and promised to thoroughly examine it. He will have a chance to discuss the invitation with the other BRICS leaders during the 2015 International Economic Forum in St. Petersburg,” the statement said.
During the 6th BRICS summit in Fortaleza in June 2014 the members agreed to forge ahead with the $100 billion NDB, as well as a reserve currency pool worth over another $100 billion. In March this year, Russian President Vladimir Putin ratified the NDB.
The new bank is expected to challenge the two major Western-led institutions, the World Bank and the International Monetary Fund. It will finance infrastructure projects in the BRICS countries and across other developing countries and is expected to start functioning by the end of 2015, with the headquarters in Shanghai.
Strengthening ties
Russia and Greece have been strengthening economic cooperation, as both countries have their own issues. While Russia is stuck in a so-called ‘sanctions war’ with the EU and the US, Greece is struggling to repay its multibillion euro debt to the troika of international lenders – the IMF, the ECB and the European Commission.
Greece is trying to find a compromise with its international creditors to have a further €7.2 billion bailout unlocked. So far Athens has been settling its IMF repayments on time. The country started repaying €750 million in debt interest Monday, but Finance Minister Yanis Varoufakis warned Greece’s finances are “a terribly urgent issue,” and the country could default by next month if no proper measures are taken.
Greece’s government has agreed a number of strategic deals with Russia during Prime Minister Alexis Tsipras’ visit to Moscow in April, including participation in the Turkish Stream project that’ll deliver Russian gas to Europe via Greece.
It was rumored Russia was ready to help Athens, but President Putin said Greece hasn’t formally asked Moscow for help. Instead of direct financial assistance Russia could help out by buying Greek state assets in privatization sales, or in other investment projects, the President said in April.
EU bloc demands abolition of partnership agreements with Israel
MEMO | May 9, 2015
The European United Left group of MEPs has demanded the abolition of partnership agreements with Israel due to its indiscriminate aggression against the Palestinians, Arabs48.com reported on Friday. The demand was made in the wake of the acknowledgement by dozens of Israeli soldiers who took part in the last summer’s Israeli offensive in Gaza that they targeted civilians intentionally; some claimed that they targeted Palestinians “for fun“.
In a statement issued on Friday, a spokesperson for the EU group, Angel Vaina, demanded that Europe’s Foreign Policy Chief Federica Mogherini answer several questions regarding the Israeli human rights abuses. Beside the witness statements of the Israeli soldiers, he noted, there is a UN report which proves that Israel killed 44 civilians and wounded 227 others in UN shelters during the Israeli war against Palestinian civilians.
Vaina said that the Geneva Conventions ban aggression against the offices of humanitarian organisations. “As such, we demand an end to economic preferences and dealing with this aggressive state.”
He pointed out that Israel signed an agreement in 2000 that guarantees human rights, but violates it repetitively. As an example, he cited Israeli violations in respect of 26 foreign activists on 3 May, when police cracked down on a peaceful demonstration in Tel Aviv against institutional violence and racial discrimination targeting Ethiopian Jews.
On a Fast Track to National Ruin
By Pat Buchanan • Unz Review • May 8, 2015
In the first quarter of 2015, in the sixth year of the historic Obama recovery, the U.S. economy grew by two-tenths of 1 percent.
And that probably sugarcoats it.
For trade deficits subtract from the growth of GDP, and the U.S. trade deficit that just came in was a monster.
As the AP’s Martin Crutsinger writes, “The U.S. trade deficit in March swelled to the highest level in more than six years, propelled by a flood of imports that may have sapped the U.S. economy of any growth in the first quarter.”
The March deficit was $51.2 billion, largest of any month since 2008. In goods alone, the trade deficit hit $64 billion.
As Crutsinger writes, a surge in imports to $239 billion in March, “reflected greater shipments of foreign-made industrial machinery, autos, mobile phones, clothing and furniture.”
What does this flood of imports of things we once made here mean for a city like, say, Baltimore? Writes columnist Allan Brownfeld:
“Baltimore was once a city where tens of thousands of blue collar employees earned a good living in industries building cars, airplanes and making steel. … In 1970, about a third of the labor force in Baltimore was employed in manufacturing. By 2000, only 7 percent of city residents had manufacturing jobs.”
Put down blue-collar Baltimore alongside Motor City, Detroit, as another fatality of free-trade fanaticism.
For as imports substitute for U.S. production and kill U.S. jobs, trade deficits reduce a nation’s GDP. And since Bill Clinton took office, the U.S. trade deficits have totaled $11.2 trillion.
An astronomical figure.
It translates not only into millions of manufacturing jobs lost and tens of thousands of factories closed, but also millions of manufacturing jobs that were never created, and tens of thousands of factories that did not open here, but did open in Mexico, China and other Asian countries.
In importing all those trillions in foreign-made goods, we exported the future of America’s young. Our political and corporate elites sold out working- and middle-class America — to enrich the monied class.
And they sure succeeded.
Yet, remarkably, Republicans who wail over Obama’s budget deficits ignore the more ruinous trade deficits that leech away the industrial base upon which America’s self-reliance and military might have always depended.
Last month, the U.S. trade deficit with the People’s Republic of China reached $31.2 billion, the largest in history between two nations.
Over 25 years, China has amassed $4 trillion in trade surpluses at our expense. And where are the Republicans?
Talking tough about building new fleets of planes and ships and carriers to defend Asia from the rising threat of China, which those same Republicans did more than anyone else to create.
Now this GOP Congress is preparing to vote for “fast track” and surrender its right to amend any Trans-Pacific Partnership trade deal that Obama brings home.
But consider that TPP. While the propaganda is all about a deal to cover 40 percent of world trade, what are we really talking about?
First, TPP will cover 37 percent of world trade. But 80 percent of that is trade between the U.S. and nations with which we already have trade deals. As for the last 20 percent, our new partners will be New Zealand, Malaysia, Vietnam, Brunei and Japan.
Query: Who benefits more if we get access to Vietnam’s market, which is 1 percent of ours, while Hanoi gets access to a U.S. market that is 100 times the size of theirs?
The core of the TPP is the deal with Japan.
But do decades of Japanese trade surpluses at our expense, achieved through the manipulation of Japan’s currency and hidden restrictions on U.S. imports, justify a Congressional surrender to Barack Obama of all rights to amend any Japan deal he produces?
Columnist Robert Samuelson writes that a TPP failure “could produce a historic watershed. … rejection could mean the end of an era. … So, when opponents criticize the Trans-Pacific Partnership, they need to answer a simple question: Compared to what?”
Valid points, and a fair question.
And yes, an era is ending, a post-Cold War era where the United States threw open her markets to nations all over the world, as they sheltered their own. The end of an era where America volunteered to defend nations and fight wars having nothing to do with her own vital interests or national security.
The bankruptcy of a U.S. trade and foreign policy, which has led to the transparent decline of the United States and the astonishing rise of China, is apparent now virtually everywhere.
And America is not immune to the rising tide of nationalism.
Though, like the alcoholic who does not realize his condition until he is lying face down in the gutter, it may be a while before we get out of the empire business and start looking out again, as our fathers did, for the American republic first.
But that day is coming.
Copyright 2015 Creators.com.
Hillary Clinton’s Dirty Money
By ROBERT FANTINA | CounterPunch | May 8, 2015
As she bulldozes her way to the Democratic presidential nomination, former First Lady, New York Senator and Secretary of State Hillary Clinton is leaving no gold nugget unturned as she finances her campaign. Having amassed a wide variety of very wealthy friends throughout the global community, she is in an excellent position to call in favors and promise new ones in return for their financial assistance, as she purchases a four-year lease on the most exclusive real estate in the world.
One recent donation, not directly to her campaign, that has raised some eyebrows, although not in Democratic circles, where Mrs. Clinton, who has done little right can do nothing wrong, is money the Clinton Foundation accepted from a company owned by the government of Morocco. One might ask what the problem with such a donation might be. Cannot a foreign government donate funds to a charitable organization based in the United States?
Unfortunately, it isn’t quite as simple as that. This is not the American Red Cross we are talking about, but an organization operated by one of the most politically active and connected families in U.S. history. As late as 2011, when Mrs. Clinton was Secretary of State, the State Department accused the government of Morocco of ‘arbitrary arrests and corruption in all branches of government’. Now, we could discuss the concept of the kettle calling the pot black in terms of government corruption, but we’ll leave that for a later essay. Let’s look at some detail from the State Department report:
“The most significant, continuing human rights problems were the lack of citizens’ right to change the constitutional provisions establishing the country’s monarchical form of government, arbitrary arrests, and corruption in all branches of government.
“Other human rights problems reported during the year included police use of excessive force to quell peaceful protests, resulting in dozens of injuries and at least four deaths; torture and other abuses by the security forces; incommunicado detention; poor prison and detention conditions; political prisoners and detainees; infringement of freedom of the press; lack of freedom of assembly; lack of independence of the judiciary; discrimination against women and girls; trafficking in persons; and child labor, particularly in the informal sector.”
Following the announcement of the $1 million donation from the government-owned Office Cherifien des Phosphates (OCP), Mrs. Clinton announced that the money would be used to sponsor a conference for the Clinton Foundation in Marrakech. She called Morocco “a vital hub for economic and cultural exchange”, eliminating any mention of political prisoners, police violence or human trafficking. Might that sum of money have been sufficient to blind the former Secretary of State to facts she was aware of when she had that job?
The donation was made, and the conference announced, prior to Mrs. Clinton’s long-expected declaration of candidacy for president. But still one wonders what possible benefit there could be for the OCP in making this donation? Is this anything more than a sincere desire to help those who might benefit from the Clinton Foundation largesse?
Well, yes, there may be another beneficiary. The OCP is involved in the extraction of mineral resources from the Western Sahara, disputed territory often referred to as the ‘last colony in Africa’, that Morocco controls. It is illegal under international law for an occupying or controlling power to extract for profit the natural resources of the country in dispute. The OCP is owned by the Moroccan government. The U.S. has a long history of allowing occupying powers to exploit, in violation of international law, the natural resources of their victims: note Israel’s extraction of resources from the Dead Sea. The money that the American Israel Political Affairs Committee (AIPAC) funnels to U.S. politicians is sufficient to cause the U.S. to look the other way; there is no equivalent lobby group representing Morocco, so perhaps this donation will suffice.
Money talks in U.S. governance. The same State Department report that detailed Moroccan abuses also commented on Israel. The influence of AIPAC is clear in these so-called ‘findings’:
* “The law prohibits arbitrary arrest and detention, and the government generally observed these prohibitions for all citizens.” This, despite the almost constant arrests without charge and detention of countless Palestinian men, women and children, both in Palestine and those living in Israel.
* “Criminal suspects are apprehended with warrants based on sufficient evidence and issued by an authorized official. Authorities generally informed such persons promptly of charges against them.” See above.
* “Defendants enjoy the right to presumption of innocence and the right to consult with an attorney, or if indigent, to have one provided at public expense.” This, of course, does not apply to Palestinians.
* “Arbitrary Interference with Privacy, Family, Home, or Correspondence. The law prohibits such actions, and the government generally respected those prohibitions in practice.” Israel Defense Forces (IDF; read: Terrorists) break into Palestinian homes at any time of the day or night, search the homes, steal valuables and generally terrorize the residents. Palestinian homes are arbitrarily bulldozed to make room for illegal and internationally-condemned settlements.
The list goes on, but this should suffice to indicate the degree to which money runs roughshod over human rights in U.S. governance. One thinks that the executives of the OCP can now sleep peacefully, confident that there will be no U.S. interference in their rape of the Western Sahara.
What other foreign governments may see benefit to themselves in a future Hillary Clinton presidency? Since the U.S. is always ready to invade a nation that displeases it, often by some perceived threat to U.S. economic dominance, one would think that most nations will be running to Mrs. Clinton with checkbook in hand, wanting to please the fairy queen and appease the economic gods so worshiped by the U.S. Additionally, such homage would enable them to ignore human rights and exploit the poor for the benefit of the rich, without the U.S. complaining about such abuses. And who will the presumptive Democratic nominee turn away? Anyone? After all, with an alleged target of $2 billion dollars for her campaign, there really are no human rights abuses that can’t be overlooked. Perhaps Syria will make a substantial donation, and thus end U.S. aggression against it.
But are there not built-in protections against this sort of thing, government ‘watchdogs’, if you will, to assure that no such collusion exists? In an article published in The New York Times on May 3, Federal Election Commission (FEC) chairwoman Ann M. Ravel said that “…her organization is powerless to safeguard against misconduct in 2016 presidential campaign fundraising and spending”, mainly due to partisan gridlock. So no, there is nothing to stop Mrs. Clinton, and any and all other candidates, from taking donations from whomever and wherever those donations are offered. And it is unlikely that any of those proffering untold amounts of money have the best interest of the common U.S. citizen at heart. No, they will be foreign governments who wish to begin or continue the exploitation of oppressed people without interference from the U.S., or domestic corporations seeking to continue the vast profits their shareholders earn from war, or from manufacturing products with limited safety or environmental restrictions.
As each presidential election approaches, pundits from the right and left proclaim that this is the most important in the history of the U.S., and that the very survival of the country depends on the outcome. Yet following each election, the nation does not implode in a ball of flames, but continues on, mainly with business as usual. That business is war, disregard for human rights at home and abroad and the worship of the almighty dollar. Mrs. Clinton will usher in no change; her every action speaks volumes to that fact.
Robert Fantina’s latest book is Empire, Racism and Genocide: a History of US Foreign Policy (Red Pill Press).
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Iran UN ambassador calls for destruction of all nuclear weapons
Iran’s ambassador to the UN Gholamali Khoshroo
Press TV – March 29, 2017
Iran’s ambassador to the UN Gholamali Khoshroo has called for the total eradication of nuclear weapons.
Khoshroo reiterated Iran’s call during a UN conference aimed at creating a nuclear weapons ban treaty in New York on Tuesday.
“Iran, as a victim of chemical weapons, strongly feels the danger posed by the existence of weapons of mass destruction and is determined to engage actively in international diplomatic efforts to save humanity from the menace of nuclear weapons,” he said.
Khoshroo stressed that Iran is committed to its Non-Proliferation Treaty (NPT) obligations, which include negotiations based on effective nuclear disarmament measures.
He added that several countries continue to ignore international calls and treaties for nuclear disarmament and even continue to increase their nuclear stockpiles. “They do not have political determination to abandon doctrines of nuclear deterrence and nuclear terror,” he went on to say.
Iran’s UN ambassador noted that boycotting the talks by many countries, including the US, shows that the world’s nuclear powers are by no means committed to the eradication of nuclear arms. Britain and France were also among the some 40 countries that did not join the talks.
“We note that prohibition of nuclear weapons must be accompanied by the elimination of such weapons. There can be no doubt that without complete abolition of nuclear weapons, there will be no absolute guarantee against the danger of nuclear war and the use of such weapons,” Khoshroo added.
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