Ukraine and Russia agree on $385 gas price for 5 months
RT | October 20, 2014
Moscow and Kiev have confirmed the price of Russian gas to Ukraine until the end of March at $385 per 1,000 cubic meters, according to both Ukrainian President Petro Poroshenko and Russian Foreign Minister Sergey Lavrov.
“We have agreed on a price for the next 5 months, and Ukraine will be able to buy as much gas as it needs, and Gazprom is ready to be flexible on the terms,” Lavrov said Monday at a public lecture.
Russia’s foreign minister dispelled rumors of two separate prices, one for winter and one for summer.
“At the Europe-Asia summit in Milan, there was no talk of summer or winter gas prices, but just about the next 5 months,” the foreign minister said.
Included in the $385 price is a $100 discount by Russia. Ukraine is still insisting on a further discount, asking for $325 for ‘summer prices’ after the 5-month winter period.
“We talked about how there should be two prices, like how the European spot market has two prices, a winter price when demand is high, and summer when demand is low. Our joint proposal with the EU was the following: $325 per thousand cubic meters in the summer and $385 per thousand cubic meters in the winter,“ Poroshenko said in an interview on Ukrainian television Saturday.
President Poroshenko and Russian President Vladimir Putin reached a preliminary agreement in Milan on Friday for the winter period, but Russia won’t deliver any gas to its neighbor without prepayment.
Gas talks are expected to continue Tuesday in Berlin between the energy ministers of Russia, Ukraine, and the EU. On September 26, the three energy ministers agreed to provide 5 billion cubic meters to Ukraine on a “take-or-pay” contract, to help the country survive the winter months.
The so-called winter plan is contingent on Ukraine starting to repay at least $3.1 billion worth of debt to Gazprom.
Ukraine is still looking for funding to pay for the gas supplies as well as its $4.5 billion arrears to Russia’s state-owned gas company. Moscow reduced the debt from $5.5 billion to $4.5 billion, calculating in the discount of gas, Putin said on Friday.
Moscow believes the European Commission or the International Monetary Fund should provide loans for this purpose.
Russia turned off the gas to Europe via Ukraine in 2006 and in 2009, over similar pricing disputes with Kiev. This poses a risk to Europe, which receives 15 percent of its gas through Ukraine.
New Seeds, Old Pesticides: A Farmer on 2,4-D and Next Gen GMOs
By Jim Goodman | Civil Eats | October 15, 2014
I doubt very many people have ever heard or seen a “tank mix.” Simply put, it is a mix of several crop chemicals used together to control a variety of weeds. I have not looked into a swirling mix of chemicals in a crop spray rig for probably 20 years–that’s about how long it has been since we have used any herbicides on our farm.
It may look different now, new chemicals, perhaps new colors and new toxic smells. I remember it as a sulfurous yellow mix of rising spreading plumes of chemicals, circulating and mixing together in the tank. The smell was literally breathtaking and the toxicity likewise. (That’s why it’s recommended that the applicator wear breathing protection and a Hazmat suit.)
When people ask me why we switched to organic farming, that swirling yellow tank mix always reappears in my mind. How did I ever rationalize putting that stuff on my fields?
When genetically modified (GM) crops were introduced commercially in 1996, farmers were told that Monsanto’s “Roundup Ready”(RR) technology would make crop production easier, safer, and “one spray was all they’d ever need.”
Roundup would be a safer, more effective replacement for all those chemicals farmers were currently using their tank mixes, they told us. With Roundup as the cornerstone of GM crop technology, the promise was safety. We’d have no more worries about weeds, and it would be eternally effective, so there would be no more need for tank mixes.
While I really don’t consider any pesticide safe (after all–they are poisons), Roundup was probably less toxic, perhaps less carcinogenic, and perhaps less of an endocrine disruptor than some of the chemicals it replaced. Perhaps.
I specifically remember 2,4-D (one of the components of the Vietnam-era defoliant Agent Orange) being singled out as a “more dangerous” herbicide that would no longer be needed. Who wouldn’t like that–a dangerous herbicide replaced by an easier to use, safer, permanently more effective one? There was sliced bread and then there was RR.
Of course, it didn’t work out that way. In 1996, Monsanto was fined by the State of New York for false advertising in its promotion of Roundup as “safe.” According to a 2013 Associated Press article, Monsanto acknowledged that U.S. Environmental Protection Agency (EPA) approval “is not an assurance or finding of safety” because U.S. regulations are based on a cost-benefit analysis, which balances the potential of “any unreasonable risk to man or the environment” against the “the economic, social, and environmental costs and benefits of the use of any pesticide.”
Isn’t that something? EPA approval is not an assurance of safety.
Consider the fact that EPA-approval was based on specific recommended quantities, and then, as these products became less effective, the tendency would be to “add a just little more.” But, even with “just a little more,” nature found a way to survive, and weeds developed resistance to Roundup to the point that even a thorough sousing would no longer kill them. Once again the tank mix became the only hope in killing these new, pesticide-resistant “superweeds.”
To help fight resistant weeds, farmers have also been encouraged to develop integrated weed management strategies. Mark Jeschke, Agronomy Research Manager at DuPont Pioneer, notes that “mechanical weed control and crop rotation are examples of two such tactics available to growers.” (These are tactics organic farmers have always used). But for heaven’s sake, the industry says, don’t stop spraying.
The “new generation” of GM crops are on the way and the first out of the pipeline are corn and soybeans that Dow AgroSciences developed to be used in conjunction with 2,4-D. In September, The U.S. Department of Agriculture approved the new seeds, as part of a branded “Enlist Weed Control System” that could be going into the ground as early as spring 2015.
Now remember that in 1996 Roundup was touted as the safe alternative to 2,4-D, a dangerous pesticide. Has 2,4-D become safer than it used to be? No.
My guess is that Dow decided it would be cheaper and easier to engineer seeds to resist the old herbicides rather than develop new herbicides that might be less toxic. And, as Tom Philpott at Mother Jones notes, Dow and Monsanto know that planting seeds that withstand both 2,4-D and Roundup would lead to an increase in herbicide use.
In fact, Dow and Monsanto stand to cash in on 2,4-D and Roundup cross-licensing. We are talking big profit potential. Never mind the fact that an Ohio study pointed out that 2,4-D is potentially potent enough to cause a “17 to 77 percent reduction of the marketable fruit and vegetables” on farms close to those where it is sprayed.
The University of Maryland recommends leaving a 350-foot buffer zone (PDF) between fields sprayed with 2,4-D and grapevines, which–along with tomatoes, potatoes, eggplants, peppers, melons, sweet potatoes, beans, and other vegetables–are highly susceptible to 2,4-D drift.
It would be one thing if the farmer doing the spraying was responsible for leaving a buffer strip between their crops and the neighbors’ vegetables. But the guy with the chemicals can spray right up to the property line. Over the last 20 years I have had to leave many acres of my land in buffer strips. Most farmers try to be good neighbors, but they can’t control the wind.
Weeds resistant to 2,4-D were documented as early as 1957, and still, farmers are hoping that 2,4-D resistant corn and soybeans, especially a 2,4-D/Roundup resistant combination, will be “the one” solution to their problems. And if weed resistance shows up they can “just add a little more”–at least until this system fails and the next GM crop is introduced.
Civil Eats editor’s note: The U.S. Environmental Protection Agency (EPA) today approved Dow Chemical’s Enlist Duo herbicide, a new blend of 2,4-D and Roundup (glyphosate) developed for use on new varieties of genetically engineered (GE) corn, soybeans, and cotton.
Lavrov: West’s ‘colonial-style’ sanctions on Russia have little to do with Ukraine
RT | October 19, 2014
Making Russia change its stance by way of sanctions is outdated thinking in an age when diversity of opinion is supposed to be appreciated, Foreign Minister Lavrov believes. He says Russia is already “doing more than anybody else” to help Ukraine.
Moscow can hardly be accused of non-facilitating the peace-process in Ukraine, as it is exerting all of the authority it can on the anti-government forces in eastern Ukraine to make sure they comply with the September Minsk peace agreements, Sergey Lavrov said in his Sunday interview to the Russian NTV channel. It’s the West, according to him, who could actually do more to resolve the Ukrainian crisis.
“Our Western partners… aren’t really using their influence on Kiev to persuade them that there’s no alternative to the agreements they’ve already reached with the self-defense,” the minister said.
The West is meanwhile ever ready to put additional pressure on Moscow in the form of sanctions, which in Lavrov’s point of view have little to do with the situation in Ukraine.
“You can essentially feel in their statements and actions the true goal of restrictions – to alter Russia, to change its position on key issues, the most fundamental for us, and make us accept the vision of the West. That is last-century, past-epoch, colonialist thinking.”
Whatever economic difficulties the sanctions entail, they are unlikely to divert Russia from its current stance, Lavrov believes.
Lavrov acknowledged current Russia-US relations are “difficult” and has accused Washington of only thinking of American interests when offering solutions to political problems. The Russian foreign minister would like to see more balance in proposals coming from the US.
“This is a common thing for the US – a consumerist approach to international relations. They believe that they have the right to punish the countries that act contrary to Washington’s vision, while demanding cooperation in other issues vital for the US and its allies.”
Balance on the international arena could have come from the EU, if it was more independent from Washington in its decision making, according to Lavrov.
“The EU with all of its current Washington leaning has the potential to act independently. This, however, remains almost totally unused. That’s sad, because the EU’s own voice could have added balance to international discussions and efforts to solve various problems.”
Friday’s talks between Russia and Ukraine in Milan which were mediated by the EU, proved “difficult and full of disagreements,” according to the Kremlin.
The German Chancellor Angela Merkel said “no breakthrough” was achieved.
One of the most essential issues the parties disagree on is gas supply. Kiev owes billions of dollars to Gazprom. There have been fears that the crisis-struck country won’t be able to pay, which could possibly lead to disruptions of gas supplies, including those to Europe via Ukraine.
The Milan negotiations have resulted in some progress on the issue – an agreement for winter supplies was reached, according to the Russian president. A new round of talks has been scheduled for October 21 and the EU will once again mediate the process.
Ukraine might meanwhile soon find itself forced to conduct similar negotiations with Poland. On Thursday, the country’s Deputy Prime Minister Janusz Pehochinsky expressed disappointment that Ukraine hasn’t yet paid for 100,000 tons of Polish coal.
No breakthrough in Milan talks on Ukraine crisis
‘Difficult, full of disagreements’
RT | October 17, 2014
German Chancellor Angela Merkel said a breakthrough was not reached in Friday morning’s talks on Ukraine, Reuters reports.
“I cannot see a breakthrough here at all so far,” Merkel said after top EU leaders met with Putin and Ukrainian President Petro Poroshenko on the sidelines of an EU-Asia summit.
“We will continue to talk. There was progress on some details, but the main issue is continued violations of the territorial integrity of Ukraine,” she added.
A political solution to the conflict in Ukraine has not yet been found, President of the European Council Herman Van Rompuy commented after the meeting, according to RIA Novosti.
Rompuy said the participants have all agreed on the need to follow through on the peace agreement reached in Minsk, Belarus at the beginning of September.
“What we agreed was the protocol of Minsk on the ceasefire, and the peace plan is of crucial importance,” Rompuy said.
“We have to implement this. This would guarantee again a future for Ukraine. So implementation, implementation, implementation — those are the key words.”
Earlier Vladimir Putin described his meeting with the Ukrainian president on Friday as “positive.” The Russian president’s spokesman however noted some of the meeting participants were reluctant to understand the true situation in eastern Ukraine.
“It was good, it was positive,” a smiling Putin told reporters after the discussions at the margins of a summit of Asian and European leaders in Italy according to Reuters.
Putin’s spokesman, Dmitry Peskov, meanwhile acknowledged the negotiations were “difficult” ones due to a number of differences and misunderstandings among the participants.
“The negotiations are really difficult, full of disagreements, full of misunderstandings,” Peskov said. “Nevertheless they are still taking place. There’s an exchange of opinions.”
“The participants have discussed in detail the implementation of the Minsk agreements effectively enough,” Peskov said.
“Unfortunately, some of the breakfast participants demonstrated their complete reluctance to understand the real situation in the southeast of Ukraine.”
The presidents of Russia and Ukraine met on Friday morning in Milan. They were joined by German Chancellor Angela Merkel, French President Francois Hollande, British Prime Minister David Cameron and European Commission President Jose Manuel Barroso.
The meeting was hosted by the Italian Prime Minister Matteo Renzi, who said that while some progress had been made, “a lot of differences” still remain on the Ukrainian crisis.
There’s a possibility Putin and Poroshenko will hold a bilateral meeting at the summit, Peskov said, adding that Russia would like journalists to participate.
“[Journalist participation] will depend upon our Ukrainian partners. We are open – we hope they are too.”
Putin drew gas figures for Merkel
Russian gas supplies to Ukraine are expected to be one of the most difficult issues on the summit agenda. Kiev is due to pay out $3.1 billion debt to Gazprom until the New Year, according to the latest Russia-Ukraine agreement. There are fears, though, that the crisis-struck country will not be able to make the payment, possibly leading to disruptions of gas supplies, including those to Europe via Ukraine.
The gas issue was among things the Russian president discussed with the German chancellor during their meeting on Thursday.
“Yesterday Putin informed Merkel in detail about the gas issues,” Putin’s spokesman said. “He literally took a pen and drew figures on a piece of paper to explain the situation.”
More gas discussions are to follow, as Russian Energy Minister Aleksandr Novak and head of Gazprom Aleksey Miller are part of the Russian delegation in Italy.
According to Peskov, Thursday’s reports from Poland have shed much light on the gas conflict between Russia and Ukraine.
“Our Polish partners have reacted in such a lively way to news of Ukraine wanting to get Polish coal almost free of charge,” Peskov said. “This is the best illustration of what’s going on in the gas sphere. The Poles were greatly impressed and did not conceal their shock. But still they can fully understand the desire to have gas free of charge.”
Privatized Ebola
By Margaret Kimberley | Black Agenda Report | October 15, 2014
Sierra Leone has waved the white flag in the face of Ebola Virus Disease (EVD). Its meager infrastructure has buckled under the onslaught of a disease which could have been curtailed. The announcement that infected patients will be treated at home because there is no longer the capacity to treat them in hospitals is a surrender which did not have to happen. Not only did Europe and the United States turn a blind eye to sick and dying Africans but they did so with the help of an unlikely perpetrator.
The World Health Organization is “the directing and coordinating authority for health within the United Nations system.” Its very name implies that it takes direction from and serves the needs of people all over the world but the truth is quite different. The largest contributor to the WHO budget is not a government. It is the Bill and Melinda Gates Foundation which provides more funding than either the United States or the United Kingdom. WHO actions and priorities are no longer the result of the consensus of the world’s people but top down decision making from wealthy philanthropists.
The Bill and Melinda Gates Foundation may appear to be a savior when it provides $300 million to the WHO budget, but those dollars come with strings attached. WHO director general Dr. Margaret Chan admitted as much when she said, “My budget [is] highly earmarked, so it is driven by what I call donor interests.” Instead of being on the front line when a communicable disease crisis appears, it spends its time administering what Gates and his team have determined is best.
The Ebola horror continues as it has for the last ten months in Guinea, Liberia and Sierra Leone. The cruelty of the world’s lack of concern for Africa and all Africans in the diaspora was evident by the inaction of nations and organizations that are supposed to respond in times of emergencies. While African governments and aid organizations sounded the alarm the WHO did little because its donor driven process militates against it. The world of private dollars played a role in consigning thousands of people to death.
Critics of the Gates Foundation appeared long before this current Ebola outbreak. In 2008 the WHO’s malaria chief, Dr. Arata Kochi, complained about the conflicts of interest created by the foundation. In an internal memo leaked to the New York Times he complained that the world’s top malaria researchers were “locked up in a ‘cartel’ with their own research funding being linked to those of others within the group.” In other words, the standards of independent peer reviewed research were cast aside in order to please the funder.
Private philanthropy is inherently undemocratic. It is a top down driven process in which the wealthy individual tells the recipient what they will and will not do. This is a problematic system for charities of all kinds and is disastrous where the health of world’s people is concerned. Health care should be a human right, not a charity, and the world’s governments should determine how funds to protect that right are spent. One critic put it very pointedly. “…the Gates Foundation, Bill & Melinda Gates, do not believe in the public sector, they do not believe in a democratic, publically owned, publically accountable system.”
There is little wonder why the Ebola outbreak caught the WHO so flat footed as they spent months making mealy mouthed statements but never coordinating an effective response. The Gates foundation is the WHO boss, not governments, and if they weren’t demanding action, then the desperate people affected by Ebola weren’t going to get any.
Privatization of public resources is a worldwide scourge. Education, pensions, water, and transportation are being taken out of the hands of the public and given to rich people and corporations. The Ebola crisis is symptomatic of so many others which go unaddressed or improperly addressed because no one wants to bite the hands that do the feeding.
The Bill and Melinda Gates Foundation has pledged an additional $50 million to fight the current Ebola epidemic but that too is problematic, as Director General Chan describes. “When there’s an event, we have money. Then after that, the money stops coming in, then all the staff you recruited to do the response, you have to terminate their contracts.” The WHO should not be lurching from crisis to crisis, SARS, MERS, or H1N1 influenza based on the whims of philanthropy. The principles of public health should be carried out by knowledgeable medical professionals who are not dependent upon rich people for their jobs.
The Gates are not alone in using their deep pockets to confound what should be publicly held responsibilities. Facebook founder Mark Zuckerberg announced that he was contributing $25 million to fight Ebola. His donation will go to the Centers for Disease Control Foundation. Most Americans are probably unaware that such a foundation even exists. Yet there it is, run by a mostly corporate board which will inevitably interfere with the public good. The WHO and its inability to coordinate the fight against Ebola tells us that public health is just that, public. If the CDC response to Ebola in the United States fails it may be because it falls prey to the false siren song of giving private interests control of the people’s resources and responsibilities.
Margaret Kimberley can be reached via e-Mail at Margaret.Kimberley(at)BlackAgendaReport.com.
Russia orders limit on foreign ownership of mass media
RT | October 15, 2014
The Russian president has signed into law a bill, which sets the maximum foreign stake in Russian mass media companies at 20 percent.
The law will come into force on January 1, 2016, and media companies must submit reports on their stockholders before February 15, 2016.
The bill was drafted by opposition MPs in September and passed by parliament very quickly. Apart from lowering the maximum share in Russian mass media companies allowed for foreign citizens and firms from the current 50 percent to 20 percent, the draft bans foreigners from being founders of Russian mass media companies. The same restrictions apply to residents without citizenship and Russians who have citizenship of other nations.
There are exceptions for media derived from state-level international treaties, like Mir television, which was founded jointly by several CIS nations.
The sponsors of the motion said the main reason behind it was the desire to provide maximum information security. They also noted that the 20 percent limit was chosen because a 25 percent share would enable a powerful veto possibility, allowing its owners to exert serious influence on the information policy of any media outlet.
“Those who own information own the world. It is obvious that when foreigners enter the mass media market of any country they practically gain access to people’s minds, to forming public opinion. And we must draw a clear line here – what are the reasons behind such purchases? Do they want simply to do business or do they want to enforce their policies and to change the situation inside the country?” asked MP Vadim Dengin of the nationalist LDPR caucus.
Other lawmakers claimed that the need for restrictions became obvious after the recent crisis in Ukraine demonstrated that some sectors of the Russian press can be biased in their coverage of important topics.
The new Russian law is in line with international practice as many countries in the world have already protected their informational space from excessive foreign influence. For example, Australia has set a 30 percent limit of foreign ownership in national mass media and Canada has a law limiting foreign ownership in electronic mass media by 46 percent. The United States allows foreigners to control not more than 25 percent of American TV and radio stations, while Japan has set this limit at 20 percent. France will not allow non-EU citizens and companies to possess more than 20 percent of its mass media. In the UK, the shares of foreign stockholders in mass media corporations cannot exceed those owned by British investors.
Current foreign ownership in Russian mass media is fairly high, especially in the magazine and newspaper business where 60 percent of companies have significant foreign shareholders. Some print media companies are owned by businessmen, who hold dual citizenship, and these individuals will, under the new law, become ineligible to continue as owners.
Street Demonstrations In 21 European Countries Held To Protest Against TAFTA/TTIP; Another ACTA Revolt Brewing?
By Glyn Moody | Techdirt | October 15, 2014
Last month, the European Commission refused to accept a request to allow an official EU-wide petition called a European Citizens’ Initiative (ECI) to take place. This was a curiously maladroit move by the Commission: it would have been easy to allow the petition against TAFTA/TTIP and CETA to proceed, thank the organizers once it was completed, file it away somewhere and then ignore it. Instead, by refusing to allow it to take place, the European Commission has highlighted in a dramatic manner the deeply undemocratic way in which so-called trade agreements are conducted.
Moreover, those making the request have simply gone ahead anyway, launching what they call the “Self-organised European Citizens’ initiative Against TTIP and CETA“. Even though this was only launched last week, it has already collected over 600,000 signatures from European citizens at the time of writing, and there is every indication that it will go well past the nominal one million signatures that the ECI would have required. The European Commission’s refusal to allow the official petition was doubly stupid, since it came shortly before a Europe-wide day of action against TAFTA/TTIP that took place last Saturday, and doubtless encouraged people to take to the streets in order to make their views felt:
On October 11, 2014, tens of thousands of people and hundreds of organisations in 21 countries are organising actions to reclaim democracy, and stop the negotiations on three far-reaching trade agreements: the EU-US deal (TTIP), the EU-Canada deal (CETA) and the trade in services deal (TiSA).
This decentralised European Day of Action — consisting of over 300 actions, marches, meetings and flash mobs — is being organised by an unprecedented alliance of civil society groups and individuals, social movements, trade unions, rights defenders, farmers and grassroots activist groups.
Reporting on the event, Euractiv.com wrote:
Some 400 activist groups marched all over Europe on Saturday (11 October) in protest against the Transatlantic Trade and Investment Partnership (TTIP), as the EU-US trade deal crystallises opposition to a wide variety of issues — from shale gas to corporate finance.
That last point is important. Euractiv.com goes on to explain:
The opposition to TTIP has many faces however, and seems to embody a wide variety of concerns. In France, many small demonstrations focused on opposition to shale gas, especially in the South of France, while in Berlin protesters were worried that TTIP would weaken the powers of the German regions, or Länders.
Potentially, that could make the European opposition to TAFTA/TTIP even broader-based than it was to ACTA, where people were largely concerned about a single issue — digital rights. And just as the ACTA demonstrations started off small scale, but grew to hundreds of thousands of people before ACTA was rejected by the European Parliament, so the anti-TTIP movement in Europe could easily swell larger still. Especially if the European Commission continues to conduct the negotiations in secret and without any input from its citizens.
Follow me @glynmoody on Twitter or identi.ca, and +glynmoody on Google+
US sanctions against Russia is economic terrorism – Morales to RT
RT | October 14, 2014
US sanctions against Russia can be considered as economic terrorism, said acting Bolivian President Evo Morales in an interview to RT. He also revealed his secret job aspiration.
“This [US sanctions against Russia] is genuine economic terrorism. The country that thinks it can dominate the world is making a mistake,” says Morales.
“I think that US President Barack Obama doesn’t’ know what is going on in other countries and continents.”
According to Morales, a single country “cannot rule in this multipolar world,” as all the issues should be “settled in cooperation among the states; that’s what the UN is for.”
“Thus I condemn and reject these kind of actions [US sanctions against Russia],” said the president, adding that Bolivia shares “the struggle of the Russian people.”
“I express my solidarity with Russian people and their President [Vladimir Putin],” he added.
Morales recently coasted to victory in the country’s presidential elections. He won the third term, securing 60.5 percent of the vote according to a count released by local TV channel ATB.
“This win is a triumph for anti-imperialists and anti-colonialists,” Morales announced from the balcony of his palace to thousands of supporters. He dedicated his victory to Cuba’s ex-President Fidel Castro and the late Venezuelan president, Hugo Chavez.
Morales took office in 2006, and after the latest victory will remain the state leader until January 2020.
Under Morales’ term the number of Bolivians living in extreme poverty reduced and he delivered economic growth of more than 5 percent a year.
In an interview with RT, he noted that one of the main political purposes for Bolivia will be fighting poverty.
“I hope that nobody will have the childhood I had: without electricity, telecommunications, drinking water,” said Morales, adding that he often drank water from a pond when he was a child.
According to the Bolivian president, the country has achieved in just nine years what it hitherto couldn’t achieve in 180.
“I want to speak of my experience. How important it was to start from the bottom: poverty. That’s why I always say that my nation is my family. Homeland is my soul. Bolivia is my life.” … Full article
Venezuela Declares Victory over Transnational in Response to Exxon-Mobil Settlement Ruling
By Cory Fischer-Hoffman | Venezuelanalysis | October 10, 2014
Caracas – On Thursday, The International Center for Settlement of Investment Disputes (ICSID) stated that Venezuela’s compensation payment to Exxon Mobil Corp for the 2007 nationalization of the oil company’s holdings in the country should only be 13% of the amount that the transnational company claimed that it was owed. Venezuelan officials have described the ruling as a victory and a testament to the country’s sovereignty.
In 2007, PDVSA, Venezuela’s state oil company, renegotiated their contract with Exxon Mobil so that less of the profits from oil extraction would leave the country. Following ten years of very profitable oil exploitation by the foreign corporation in Venezuela’s Orinoco region, Exxon Mobil resisted the partial nationalization measures. When two of its refineries were then expropriated, the company brought the case to arbitration, demanding a compensation of USD $20 billion, which they later reduced to $12 billion.
The ICSID ruling on Thursday stated that Venezuela’s payment to Exxon Mobil would be $1.6 billion, an amount far lower than what the company had claimed. Venezuela’s foreign minister, Rafael Ramirez said that this ruling “confirmed that the level of compensation sought had been exorbitant and completely unjustified.”
An Exxon spokesperson said the nationalization was “clearly not a desirable outcome” and he went on to claim that Venezuela “failed to provide fair compensation for expropriated assets.” According to the Wall Street Journal, Exxon Mobil’s sales last year of USD $438 billion are roughly equivalent to Venezuela’s gross domestic product.
While Exxon Mobil has admitted defeat, the Venezuelan government, still owing the oil giant $1.6 billion, has claimed a victory. Ramirez noted in his official statement, “Once again the Bolivarian Republic of Venezuela, its government, institutions and workers have confronted and [have] been able to defeat the aggressions of powerful transnational interests.”
Venezuela still faces pending rulings for other expropriated industries and the much anticipated ruling in the ConocoPhillips expropriation case is expected within the next few months. Ramirez insisted that the government sees these arbitrations as an affront to the country’s sovereignty and that they will continue to fight compensation claims from multinationals.
“We reiterate that Venezuela must be respected, we are committed to defending our independence and sovereignty in all scenarios” Ramirez concluded as he read the government statement following Thursday’s ruling.
Ukraine will need extra funding to stay afloat – IMF head
RT | October 10, 2014
The Ukrainian economy, weakened by war, needs additional funding from sources beyond the International Monetary Fund (IMF) to stay afloat, the fund’s head Christine Lagarde has said.
The IMF’s December estimate of the cash needed has turned out to be insufficient following the continued conflict in the country.
“Additional funding will have to come” after the IMF reviews the current bailout strategy, Lagarde said at a Bretton Woods Committee event on the sidelines of the annual IMF and World Bank meetings of finance ministers and central bankers.
“To assume that the additional funding will have to come from the IMF, I think is rather far-fetched,” she said. “If the economy has to be restored and stability maintained, money will have to come from multiple sources.”
Initially it was planned that $30 billion in aid, of which the IMF pledged to allocate $17 billion, would be enough to restore the economy. The April bailout was predicated on the expectation that the conflict in eastern Ukraine would end in the early autumn.
The IMF’s review updated last month, showed that the country’s financing needs could rise by $19 billion if the civil war continues.
Despite the World Bank’s forecast that country will likely be in a deep recession until at least 2016, the IMF projects the economy expanding next year.
