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How Europe’s New Political Class Began Rejecting Reality

By Glenn Diesen | October 26, 2024

Russia considers NATO’s incursion into Ukraine to be an existential threat, and NATO has openly stated its intention to make Ukraine a member state after the war. Without a political settlement that restores Ukraine’s neutrality, Russia will therefore likely annex the strategic territories it cannot accept ending up under NATO control and then turn what remains of Ukraine into a dysfunctional rump state. As the war is being lost, the rational policy for the Europeans would therefore be to offer an agreement based on ending NATO’s eastward expansion to save Ukrainian lives, territory and the nation itself. Yet, no European leader has been able to even suggest such a solution publicly. Why?

Present the average European politician, journalist or academic with the following thought experiment: If you were an advisor to the Kremlin, what would be your advice to Russia if there are no negotiations to resolve the Ukraine War? Most would feel morally compelled to give ridiculous answers such as advising the Kremlin to capitulate and withdraw, even if Russia is on the cusp of victory. Any impulse to adhere to reason and address Russia’s security concerns would likely be deterred by the threat of being shamed for “legitimising” Russia’s invasion.

What explains the decline of strategic thinking, pragmatism and rationality in European politics?

Europe’s Reality as a Social Construction

The political class that emerged in Europe after the Cold War have become excessively ideological and committed to narratives to socially construct new realities. The Europeans embrace of postmodernism entails questioning the existence of objective reality as our understanding of reality is shaped by language, culture and unique historical perspectives. The postmodernists therefore often seek to change narratives and language as a source of political power. If reality is a social construction, then the grand narratives can be more important than facts. Indeed, ideological narratives must be defended from inconvenient facts.

The European project had the benign intentions of creating a common liberal democratic European identity that would transcend the divisive national rivalry and power politics of the past. The relevance of objective reality is contested, and narratives about reality are believed to reflect power structures that can be dismantled and reorganised.

The prevalence of constructivism and focus on “speech acts” in the EU has led to the belief that even using realist analysis and discussing competing national interests entail legitimising realpolitik and thus socially constructing a more dangerous reality. Speech acts refer to the use of language as a source of power by constructing political realities and influencing outcomes. By reducing the focus on security competition in the international system, it is assumed that power politics can be mitigated.

Is it possible to socially construct a new reality? Do we transcend security competition by not addressing it or do we neglect the responsible management of security competition. Can we transcend national rivalries by focusing on common values or does the neglect of national interests result in decline?

Socially Constructing a New Europe

The concept of the “rhetorical trap” explains how the EU reached a consensus to offer membership to Central and Eastern European states when it was not in the self-interest of all EU member states to do so. The rhetorical trap was set by first having member states accept the ideological premise that the legitimacy of the EU project was based on the integration of liberal democratic states. By appealing to the values and norms as the foundation of the EU, a rhetorical trap was set as the sense of moral obligation shamed EU member states from vetoing the enlargement process. The use of language and framing could thus influence European states to not act in their own interests as they were shamed into compliance.

Schimmelfennig, who introduced the concept of the rhetorical trap, argues that “politics is a struggle over legitimacy, and this struggle is fought out with rhetorical arguments”.[1] The rhetorical trap simplifies a complex issue into a binary choice of either supporting the enlargement process or betraying liberal democratic ideals. The moral framing shuts down important discussions about the potential downsides of accepting new members and how to address these challenges in the best way. Dissent could be crushed as framing the issue as a moral imperative meant that those who even questioned the moral framing could be accused of undermining the sacred values that uphold the legitimacy of the entire European project.

The concept of “Euro-speak” entails using emotional rhetoric to legitimise an EU-centric understanding of Europe that de-legitimises alternative concepts of Europe. Centralising decision-making and transferring power from elected parliaments to Brussels is typically referred to as “European integration”, “more Europe”, or “ever-closer Union”. Neighbouring non-member states that adhere to the EU’s external governance are making the “European choice”, confirming their “European perspective”, and embracing “shared values”. Dissent can be delegitimised as “populism”, “nationalism”, “Euro-phobia” and “anti-Europeanism”, which undermines the “common voice”, “solidarity” and the “European dream”.

The language has also changed in terms of how the West asserts power in the world. Torture is “enhanced interrogation techniques”, gunboat diplomacy is “freedom of navigation”, dominance is “negotiations from a position of strength”, subversion is “democracy promotion”, coup is “democratic revolution”, invasion is “humanitarian intervention”, secession is “self-determination”, propaganda is “public diplomacy”, censorship is “content moderation”, and the more recent example of China’s competitive advantage that is labelled “over-capacity”. George Orwell’s concept of Newspeak entailed constraining language to the point it became impossible to express dissent.

NATO and the EU: Redividing Europe or “European Integration”

Western leaders initially recognised that abandoning an inclusive pan-European security architecture by expanding NATO and the EU would likely provoke another Cold War. The predictable consequence of constructing a new Europe without Russia would be to redivide the continent and then fight over where the new dividing lines should be drawn.

President Bill Clinton cautioned in January 1994 that NATO expansion risked to “draw a new line between East and West that could create a self-fulfilling prophecy of future confrontation”.[2] Clinton’s Secretary of Defence, William Perry, even considered resigning in opposition to expanding NATO. Perry noted that most people in the administration knew the betrayal would create conflicts with Russia, yet they believed it did not matter as Russia was weak.[3] George Kennan, Jack Matlock and a multitude of American political leaders also framed it as a betrayal against Russia and warned against redividing Europe. These concerns were also shared by many European leaders.

What happened to the discourse and warnings about instigating another Cold War? The narrative of the EU and NATO as a “force for good” that advance liberal democratic values had to be defended against the “outdated” narrative of power politics. Russian criticism of reviving the zero-sum security architecture of bloc politics was presented as evidence of Russia’s “zero-sum mentality”. Russia’s inability to recognise that NATO and the EU were positive-sum actors that transcend power politics allegedly revealed Russia’s inability to overcome the dangerous mindset of realpolitik, which was caused by Russia’s enduring authoritarianism and great power ambitions. The EU was merely constructing a “ring of friends”, while Russia allegedly demanded “spheres of influence”.

Russia was presented with the dilemma of either embracing the role of an apprentice aiming to join the civilised world by accepting NATO’s dominant role as a force for good, or Russia could resist NATO’s expansionism and “out-of-area missions” but then be treated as a dangerous force to be contained. Either way, Russia would not have a seat at the table in Europe. Liberal democratic tropes justified why the largest state in Europe should eventually be the only state without representation.

The expansion of NATO and the EU as exclusive blocs also imposes an “us-or-them” dilemma on the deeply divided societies in Ukraine, Moldova and Georgia. Yet, rather than recognising the predictable destabilisation of divided societies in a divided Europe, it is presented as positive-sum “European integration” despite the implicit decoupling from Russia. Societies prioritising closer relations with Russia rather than NATO and the EU are delegitimised for rejecting democracy while their leaders are dismissed as authoritarian “Putinists” who deprive their people of their European dream.

The moral framing of the world convinced European leaders to support a coup to pull Ukraine into the NATO orbit. It was common knowledge that only a small minority of Ukrainians desired NATO membership and that it would likely trigger a war, yet liberal democratic rhetoric still convinced European leaders to ignore reality and support disastrous policies. Common sense could be shamed.

Western political leaders, journalists and academics seeking to mitigate the security competition by addressing Russia’s legitimate security concerns are similarly accused of carrying water for Putin, repeating Kremlin talking points, “legitimising” Russian policies, and undermining liberal democracy. With the binary moral framing of good versus evil, intellectual pluralism and dissent are castigated as immoral.

Besides being plagued by war, Europe is also undergoing economic decline. The Europeans are buying Russian energy through India as an intermediary as they are morally obliged to follow failed sanctions. The virtue-signalling contributes to European industries becoming less competitive. The de-industrialisation of Europe is also caused by the destruction of the Nord Stream pipelines, yet the event that is destroying decades of industrial development is memory-holed as the only two suspects are the US and Ukraine. Furthermore, the US offers subsidies to the subsequent uncompetitive European industries if they relocate across the Atlantic. In the absence of acceptable narratives, the Europeans simply keep silent and do not defend their national interests. The narrative of liberal democracies united by values rather than divided by competing interests must be defended from inconvenient facts.

Diplomacy, Neutrality & the Virtue of War

Diplomacy does not conform with the constructivist effort to socially construct a new reality. The point of departure in international security is the security competition in which efforts to increase the security of a state can decrease the security of another. Diplomacy entails enhancing mutual understanding and pursuing compromise to mitigate the security competition.

The social constructivists often consider diplomacy to be problematic as it “legitimises” the security competition that recognises NATO can undermine legitimate Russian security interests. Furthermore, it risks legitimising the opponent and creating a moral equivalency between Western states and Russia. The European elites believe that [they can] legitimise outdated and dangerous concepts of power politics by engaging in mutual understanding. The absurd conviction that negotiation is “appeasement” has become normalised in Europe.

Diplomacy therefore has been reimagined as a relationship between a subject and an object, between a teacher and a student. In this relationship, NATO and the EU consider their role as “socialising” other states. As a civilising teacher, the Enlightened West uses diplomacy as a pedagogic instrument in which states are “punished” or “rewarded” by their preparedness to accept unilateral concessions. While diplomacy historically has been imperative during times of crisis, the European elites believe they must instead punish “bad behaviour” by suspending diplomacy once a crisis breaks out. Meeting with opponents during crises runs the risk of legitimising them.

Neutrality was until recently considered a moral stance that mitigates security competition and enables a state to serve as a mediator rather than becoming entangled and escalating conflicts. In a struggle between good and evil, neutrality is also deemed to be immoral. The belt of neutral states that existed between NATO and the Warsaw Pact countries has now been dismantled and even war becomes a virtuous defence of moral principles.

How to Restore Rationality & Correct the Post-Cold War Mistakes?

The failure to establish a mutually acceptable post-Cold War settlement that would remove the dividing lines in Europe and enhance indivisible security has resulted in a predictable catastrophe. Yet, course correction requires nothing less than reconsidering the policies of the past 30 years and the concept of Europe at a moment when animosity is rampant on both sides. The European project was envisioned as the embodiment of Fukuyama’s “end of history” thesis and an entire political class has based their legitimacy on conforming to the idea that developing a Europe without Russia was a recipe for peace and stability.

Does Europe have the rationality, political imagination and courage to critically assess its own mistakes and contribution to the current crisis, or will all criticism continue to be denounced as a threat to liberal democracy?


[1] Schimmelfennig, Frank, 2003. The EU, NATO and the integration of Europe: Rules and rhetoric, Cambridge, Cambridge University Press, page 208.

[2] B. Clinton, ‘Remarks to Multinational Audience of Future Leaders of Europe’, US Diplomatic Mission to Germany, 9 January 1994.

[3] J. Borger, ‘Russian hostility ‘partly caused by west’, claims former US defence head’, The Guardian, 9 March 2016.

October 26, 2024 Posted by | Economics, Full Spectrum Dominance, Russophobia, Timeless or most popular | , | Leave a comment

Russia to seize income from frozen Western assets – finance minister

RT | October 24, 2024

Russia will respond in kind to the West’s use of the income generated by its frozen central-bank reserves, Finance Minister Anton Siluanov has said.

The US and its allies have blocked an estimated $300 billion in assets belonging to the Russian central bank since the escalation of the Ukraine conflict in February 2022. The bulk of the funds, around €197 billion ($213 billion), are being held at the Brussels-based clearinghouse Euroclear. On Wednesday, Washington announced a decision to use the proceeds from the frozen assets to repay a multibillion-dollar loan to Kiev.

“If Western countries have begun utilizing the income from the frozen Russian reserves, we will do exactly the same,” Siluanov told reporters on Thursday. “We have frozen money from ‘unfriendly’ companies and organizations. We keep this money in our accounts in the same way and will use the income from these assets similarly,” he elaborated.

The income from these funds will be allocated to “the needs of the economy, the needs of the constituent entities of the Russian Federation,” the minister added, noting that the corresponding decisions have already been made.

The US said on Wednesday that it will provide Kiev with a $20 billion loan as part of a broader $50 billion G7 package. The use of windfall profits from the blocked Russian assets will provide Ukraine assistance “without burdening taxpayers,” US President Joe Biden stated.

A day earlier, the European Parliament backed allocating a loan of up to €35 billion ($38 billion) for Kiev using the immobilized Russian assets as collateral for the repayments. According to Euroclear, the frozen funds had generated €3.4 billion ($3.6 billion) in interest as of mid-July.

Russia has repeatedly warned that seizing its assets would amount to “theft” and would violate international law and undermine reserve currencies, the global financial system, and the world economy.

The International Monetary Fund has also been raising concerns that such actions could undermine trust in the Western financial system. Siluanov earlier warned that global players are closely following the story involving the Russian assets and are drawing their own conclusions.

While the finance minister did not elaborate on the amount of Western assets currently held in Russia, previous calculations by RIA Novosti put the figure at roughly equal the size of the Russian funds frozen abroad. The news agency reported that total foreign direct investments in the Russian economy by the EU, G7, Australia, and Switzerland amounted to $288 billion as of the end of 2022.

October 25, 2024 Posted by | Economics | , , | Leave a comment

BRICS rejects ‘illegal’ Western sanctions

RT | October 23, 2024

BRICS countries strongly oppose and condemn the practice of unlawful politically motivated sanctions that undermine the development of other states, according to a joint declaration adopted at the 16th BRICS Summit in Kazan, Russia.

Entitled ‘Strengthening Multilateralism for Just Global Development and Security,’ the 43-page ‘Kazan Declaration’ was released on Wednesday following a range of multi-format meetings by the BRICS leaders.

“We are deeply concerned about the disruptive effect of unlawful unilateral coercive measures, including illegal sanctions, on the world economy, international trade, and the achievement of the sustainable development goals,” the declaration reads.

The joint statement pointed out that such measures are “inconsistent with rules” of the WTO, undermine the UN Charter and jeopardize the multilateral trading system.

The sanctions also “negatively impact economic growth, energy, health and food security exacerbating poverty and environmental challenges,” the document said.

The declaration underlined that the “unilateral coercive measures, inter-alia in the form of unilateral economic sanctions and secondary sanctions that are contrary to international law,” have far-reaching implications for the human rights, including the right to development, of the general population of targeted states, disproportionally affecting the poor and people in vulnerable situations.

“Therefore, we call for their elimination,” the BRICS statement stressed.

The group’s members have been deepening their economic ties and strengthening cooperation despite unprecedented Western sanctions against Russia and the threat of secondary sanctions. The US and its allies have introduced a record number of restrictions against Moscow, freezing an estimated $300 billion in assets belonging to the Russian state, as well as sanctioning individuals and entities, including those in the energy, metals and mining, and financial sectors.

Moscow has repeatedly condemned the curbs as illegal, responding with travel bans on Western officials and warning of other countermeasures.

Meanwhile, some high-ranking Western politicians and diplomats have acknowledged that the sanctions on Russia are ineffective, noting that the scope for further restrictions is narrowing.

October 23, 2024 Posted by | Economics, Solidarity and Activism | | Leave a comment

G7 Not Planning to Unfreeze Russian Assets After End of Ukraine Conflict – Reports

Sputnik – 22.10.2024

The Group of Seven nations will announce later this month that they will keep Russian assets frozen in their jurisdictions even after the end of hostilities in Ukraine, media reported on Tuesday, citing an Italy-led draft statement.

“We … reaffirm that Russia’s sovereign assets in our jurisdictions will remain immobilized until Russia ends its aggression and pays for the damage it has caused to Ukraine,” the draft of the leaders’ statement, quoted by Nikkei, read.

The G7 intends to guarantee a $50 billion loan for Ukraine, to be repaid by windfall profits from the frozen Russian assets, the news agency said, citing multiple G7 and EU sources.

Last month, European Commission President Ursula von der Leyen recommended EU member states to consider loaning Ukraine 35 billion euros ($38 billion) that will be repaid with windfall profits earned by Russia’s frozen assets. The proposal was endorsed by the European Parliament earlier on Tuesday. European Commissioner for Justice Didier Reynders said that the G7 would announce their contributions to Kiev’s $50 billion loan secured by Russian assets in Washington on October 25.

October 22, 2024 Posted by | Economics | , , | Leave a comment

EU to tap frozen Russian assets

RT | October 22, 2024

The European Parliament has approved a €35 billion ($38 billion) loan to Ukraine to be repaid with revenues from frozen Russian assets, according to an official statement on Tuesday. The financing fulfils the EU’s share of a $50 billion aid package for Kiev agreed by G7 countries in June.

MEPs approved the move with 518 votes in favor, 56 against and 61 abstentions, the parliament announced. The funds will be transferred through the end of next year, it added.

Future revenues from frozen Russian Central Bank assets will be made available to Ukraine to service the EU loan and loans from other G7 partners. The statement added that Kiev may also allocate the funds “as it sees fit.”

The proposal was endorsed earlier this month by EU governments. The European Council now plans to adopt it as a regulation, and it will enter into force after its publication in the Official Journal of the EU, the statement notes.

The EU froze approximately €210 billion ($227 billion) in Russian Central Bank assets following the start of the Ukraine conflict in February 2022. Russia has denounced the move as “theft.” The immobilized assets had generated €3.4 billion ($3.7 billion) in interest as of mid-July, according to Brussels-based central securities depository Euroclear, which holds most of Russia’s funds. In July, a transfer of €1.5 billion ($1.6 billion) of that money was approved by the European Commission to support Ukraine’s “military capabilities.”

The US is reportedly planning to contribute up to $20 billion to the G7 package, also on condition that the funds are repaid using proceeds generated by the immobilized Russian assets.

The US previously expressed concern that the EU policy of reviewing Russia sanctions every six months makes repayment of the loan uncertain as it could result in a lapse in restrictions. In response, Brussels proposed extending the renewal timeframe to three years. Hungary opposed the idea and said it would delay a decision until after the US presidential election on November 5.

Kiev’s Western backers have been trying to accelerate negotiations over the loan due to mounting concern that Washington’s aid to the country could be cut off if Donald Trump returns to the White House, Financial Times reported last week. The former US president has repeatedly threatened to scale back assistance if he is elected.

Moscow maintains that any seizure of its funds is illegal under international law and would further undermine global trust in the Western financial system.

October 22, 2024 Posted by | Economics, Militarism | , , , | Leave a comment

US-Russia trade expected to fall to lowest level since 1992 under Biden regime

Sputnik – 19.10.2024

MOSCOW – The trade between Russia and the United States is expected to decline to $3.7 billion by the end of this year, the lowest level since 1992, according to Sputnik’s calculations based on data of the US statistical service.

Russian exports to the US from January to August amounted to $2.26 billion, down from $3.4 billion the previous year. Based on current trends, annual shipments may reach approximately $3.12 billion, which would be a third lower than previous year’s volumes and the lowest level since 1993.

Meanwhile, US business sales to Russia fell by 16% over eight months, totaling $334 million. For the year, they are expected to reach a record low of $539.3 million, down by 10% compared to 2023, according to Sputnik’s calculations.

During Joe Biden’s presidency, trade between the two countries has decreased sixfold. In 2020, the last year of Donald Trump’s term, trade was at $21.8 billion. This figure was slightly lower in 2016 under Barack Obama, who initiated the first wave of sanctions against Russia, at $20.4 billion.

October 19, 2024 Posted by | Economics | , | Leave a comment

US to pay $20 billion into loan for Ukraine – FT

RT | October 19, 2024

The US is set to provide up to $20 billion to Ukraine as part of a G7 loan, which will then be repaid using proceeds generated by the Russian assets immobilized by the West as part of Ukraine-related sanctions, Financial Times has reported, citing sources.

Kiev’s backers have been trying to accelerate negotiations over the loan in an effort to secure funding to Ukraine before the end of the year, due to mounting concern that Washington’s aid to the country could be cut off if Donald Trump wins the upcoming US election, FT noted, in an article posted on Friday. The former US president has repeatedly threatened to scale back assistance to Kiev if he were elected.

The US and its allies have frozen an estimated $300 billion in assets belonging to the Russian state after the Ukraine conflict broke out in 2022. The bulk of the money, nearly €197 billion ($214 billion) is being held by Brussels-based clearinghouse Euroclear. The immobilized funds have generated €3.4 billion ($3.7 billion) in interest as of mid-July, according to the depository.

Moscow has denounced the freeze as “theft” and said that any seizure of its funds would be against the law and would further undermine global trust in the Western financial system.

In June, G7 members agreed to grant Kiev a $50 billion loan to be financed by interest from the frozen Russian assets. The US and the EU were initially expected to provide $20 billion each as Canada, Japan and the UK were set to jointly lend the rest of the massive loan.

Later, to reassure allies that the bloc’s sanctions regime on the funds is not lifted, Brussels proposed a three-year extension of the EU’s mandate to freeze Russian assets. EU lawmakers have been renewing their sanctions every six months by unanimous decision, meaning that each vote may bring about a break in restrictions. Hungary opposed the proposal, and announced plans to postpone the decision until the US presidential elections on November 5.

Last week, the EU approved its own contribution of up to €35 billion to the G7 loan, but the bloc would need to contribute less if Washington provided the full $20 billion, Reuters reported last week. The funds, which will be managed by the World Bank, will be used for several purposes, including defense or humanitarian needs.

US senior officials, however, told FT that Washington would provide the full agreed $20 billion, even if the EU failed to convince Hungary’s premier Viktor Orban to drop his veto on extending EU sanctions, which had previously been voiced among the US demands. According to two sources cited by the paper, G7 finance ministers will make a statement on the distribution and structure of the loan on the sidelines of the IMF and World Bank meetings on October 25.

October 19, 2024 Posted by | Economics, Militarism | , , , | Leave a comment

EU’s ‘arm-twisting’ making Serbia turn to BRICS – Kremlin

RT | October 16, 2024

BRICS is a more welcoming and member-oriented group than the European Union, Kremlin spokesman Dmitry Peskov has said, commenting on the possibility that Serbia could seek to join the economic bloc.

His comments came after Belgrade said that instead of EU membership, it would explore the option of joining BRICS, which is currently chaired by Russia.

“Serbia has been having its arm twisted. They [the EU] always lay down conditions for cooperation and demand certain actions,” Peskov told the Mayak radio station. “We are certain that Serbia will make decisions that are most beneficial to its people,” he added.

The Balkan country applied to join the EU in 2009 and has been a candidate for membership since 2012. In an interview on Sunday, Serbian Deputy Prime Minister Aleksandar Vulin accused Brussels of moving the goalposts for accession, most recently by linking Belgrade’s membership to severing relations with Moscow.

“BRICS does not impose any conditions on anyone. It’s based on mutual respect and the readiness to address concerns and interests of members. No one there says ‘either, or.’ That’s why [the group] is so attractive to a raft of countries,” Peskov stated.

Another long-time EU hopeful, Türkiye, officially applied to join BRICS in September, becoming the first NATO state to do so.

Azerbaijan, Algeria, Vietnam, Indonesia, Pakistan, Malaysia, Nigeria, Thailand, Venezuela, Kazakhstan, Palestine, DR Congo, Gabon, Bangladesh, Bahrain, Kuwait, Senegal, Cuba, Belarus, and Bolivia are among the other nations that have expressed their wish to join BRICS.

The Russian city of Kazan will host the annual BRICS Summit later this month. A Serbian delegation will attend, along with others from a raft of countries, including members Brazil, India, China, South Africa, Egypt, Iran, Ethiopia, and the United Arab Emirates.

Russian President Vladimir Putin said in September that the current BRICS states had agreed to discuss granting partner status to some aspiring members and to potentially approve some of the bids during the Kazan summit from October 22 to 24.

If agreed upon, partner status will become a new form of partial BRICS membership, intended to act as a gradual transition toward full integration into the group.

October 16, 2024 Posted by | Economics | , , | Leave a comment

Iran Halts Flights to Europe Over Sanctions Slapped on Iran Air – Association

Sputnik – 15.10.2024

TEHRAN – Iran has suspended all flights to Europe after the European Union imposed sanctions against the Iran Air national carrier, the Association of Iranian Airlines (AIRA) said on Tuesday.

“Iran Air was the only airline that operated flights to Europe in our country. After new EU sanctions were imposed on Iran Air, no Iranian aircraft will fly to Europe,” AIRA Secretary General Maqsoud Asadi Samani was quoted as saying by the Ilna news agency.

Brussels accused the persons and entities under the latest package of sanctions of being involved in ballistic missile supplies to Russia. Iran rejected the accusations.

On Monday, the Council of the EU adopted sanctions against seven Iranian individuals and seven organizations, including Iran Air, for alleged military cooperation with Russia.

October 15, 2024 Posted by | Economics | , , | Leave a comment

Druzhba: Oil Mega-Pipeline That Evaded US Sabotage to Power Eastern Europe’s Economic Boom

A section of the Druzhba pipeline being erected in Carpathia over a local waterway. September 1962. © Sputnik / I. Arons
By Ilya Tsukanov – Sputnik – 15.10.2024

Tuesday is the anniversary of the creation of Druzbha – the world’s longest oil pipeline, and one of the most technically sophisticated pieces of man-made engineering every created. Here’s what’s important to know about the project, why it was conceived, and why the US and its allies tried, but failed, to stop it.

October 15 marks the 60th anniversary of the inauguration of the Druzhba (‘Friendship’) oil pipeline. Conceived in 1958 at a meeting of the Council for Mutual Economic Assistance – the Soviet-led analogue to Western European integration, Druzhba helped forge closer economic links between the USSR and its Eastern European allies, and eventually, between Russia and the whole of Europe.

Drawn up to aid an economic boom being experienced by Eastern Europe, Druzhba was built to replace more costly and infrastructure-intensive rail-based oil deliveries.

Sourcing oil from the Volga-Ural oil and gas basin and starting off in Almetyevsk, modern-day Tatarstan, Druzhba runs west to Mozyr in Belarus, where it splits into two routes – one to eastern Germany via Poland, and another through Ukraine toward Bratislava in Slovakia, Prague in the Czech Republic and Budapest in Hungary.

Members of the Soviet-led economic alliance, namely Albania, Hungary, Poland, and Czechoslovakia, contributed equipment and know-how, with the USSR and Poland delivering 730,000 tons of 420-1,220 mm pipes, East Germany pumps for pumping stations, Hungary automation equipment and communications gear, and Czechoslovakia valves and fittings.

The US sought to sanction the project into submission, slapping restrictions on Western European sales of large-diameter pipes to the Eastern Bloc after the Cuban Missile Crisis of October 1962. Russian Chelyabinsk’s industrialists saved the day, creating pipes of the necessary diameter.

The success of the project led to the construction of a second line – known as Druzhba-2 and running along the same route, in 1974.

With Moscow selling oil to allies via long-term contracts, Eastern Europe was largely insulated from the oil shocks suffered by the West in the 1970s and early 1980s. Between 1971 and 1980, Hungary’s material national income rose by 62%, East Germany’s by 59%, Poland’s by 73%, Czechoslovakia’s by 57%, and capital construction in these countries grew 1.9, 1.7, 2.2, and 1.8 times, respectively.

This allowed the region to build tens of millions of new apartments, industrial goods and finished products ranging from cars and electronics to household goods.

After the USSR’s collapse, Germany’s reunification and the European Union’s expansion, Druzhba became a key source of fuel for Europe’s economic prosperity, helping Eastern Europe with its difficult transition to the market, and Germany in its effort to build on its status as an industrial powerhouse.

Accounting for expansions (including extensions to deliver oil to southern Germany and Austria), Druzhba holds the record as the longest oil pipeline network in the world, consisting of a whopping 8,900 km of pipe, 46 pumping stations, 38 intermediate pumping stations, and reservoirs that can hold up to 1.5 million cubic meters of oil.

Druzhba is also one of the most technically-sophisticated manmade engineering projects in history, crossing the Volga, Oka, Don, Dnepr, Dniestr, Vistula and Dunabe rivers and hundreds of smaller waterways, thousands of roads and railways, the Pinsk Marshes and the mountains of Carpathia.

The pipeline has an estimated capacity to pump up to 2 million barrels per day, or nearly a fifth of Russia’s total oil output. Until recently, it accounted for up to half of all Russian oil exports.

Killing Druzhba?

The US, the Eu and Ukraine have taken a series of steps to try and effectively kill the Druzhba-based energy partnership between Russia and Europe, with the EU banning deliveries of Russian oil through the northern portion of the pipeline in the summer of 2024, and Ukraine raising transit costs by more than 75%, and in July 2024 prohibiting supplies of Lukoil oil through the pipeline’s southern line to Hungary and Slovakia.

While Russia has proven able to replace its dependence on Druzhba by forging new energy ties with countries in the Global South, including India and China, Europe has been trapped by its own restrictions into buying more expensive and less dependable energy sourced in the US, leaving economic growth stagnant and industrial competitiveness in jeopardy.

October 15, 2024 Posted by | Economics, Timeless or most popular | , | Leave a comment

French MEP backs Medvedev’s attack on NATO

RT | October 14, 2024

Former Russian President Dmitry Medvedev was stating the “absolute truth” when he took aim at NATO countries and their support for Ukraine in a scathing recent social media post, French MEP Florian Philippot has said.

The European Parliament member was commenting on a post published by Medvedev on Sunday, in which he pointed to the problems that Ukraine’s Western backers are facing with their economies.

“The West has no money to clean up Florida after Hurricane Milton, no money for French farmers, no money to revive the German industry,” Medvedev, who now serves as deputy head of the Russian Security Council, wrote on Telegram.

These countries, however, still have funds to bankroll “a bunch of drunk and crazy” Ukrainians and to produce weapons “to exterminate the Slavs in the military conflict,” he added.

In a post on X, Philippot, who is leader of the Patriots party, wrote that Medvedev “just smashed the NATO countries by throwing absolute truths at them.” Philippot also took aim at French President Emmanuel Macron, saying he is “also taking a beating” for his recent pledge of a “new check for 3 billion to Zelensky.”

Philippot called on Macron to “stop these checks and these arms shipments,” arguing that Medvedev’s remarks are “factually terribly true!”

During a visit last week to a military camp in eastern France to inspect the training of Ukrainian troops, Macron pledged some €3 billion ($3.3 billion) worth of military aid for Kiev this year. Earlier in 2024, French farmers staged massive protests across the country, demanding that preferential trade rules granted to Kiev be lifted and calling for more government support.

In the US, former President Donald Trump last week accused the administration of President Joe Biden of neglecting the survivors of Hurricane Helene in the southeastern part of the country while sending billions of dollars in aid to Ukraine.

Meanwhile, Germany, which has emerged as one of Kiev’s top backers, is facing a new recession and its economy is set to contract for a second straight year due to shrinking industrial output, high energy prices, and weak foreign demand, according to reports.

October 14, 2024 Posted by | Economics, Militarism | , , , , | Leave a comment

EU Leaders Face Grim Reality: How Did Bloc Seal Status as Wilting Geopolitical Power?

By Ilya Tsukanov – Sputnik – 13.10.2024

Back in the spring of 2022, Russia’s president warned that the European Union’s “suicidal” and “absolutely political” decision to wean itself off of cheap and dependable Russian pipeline energy would culminate in the serious and “perhaps irreversible” loss of competitiveness against other world powers.

“The European project is approaching a tipping point” and threatens to fall into “apathy” and geopolitical irrelevance thanks to internal “political paralysis, external threats and economic malaise,” Bloomberg European Politics & Economics managing editor Ben Sills has suggested in a wistful ode to the EU’s unenviable political and economic prospects in the years to come.

“After decades of warnings and sub-par growth, the region’s leaders are suddenly confronting a barrage of evidence that decline is becoming unstoppable,” Sills’ piece, appearing on the NY-headquartered business news agency’s front page on Sunday, warned.

Pointing to a string of political and economic ‘bad news’ for Europe’s Europhile forces, from gains by the populist right in France to German carmaker giant Volkswagen’s threats to close factories, to Silicon Valley’s exit from European markets over stringent AI rules, the observer suggested that the developments demonstrate “the EU’s failure to act as a cohesive and dynamic economic bloc” against both adversaries and potentially, its allies across the Atlantic.

“If you wanted to be a geopolitical power, then economic might is the key ingredient,” Free University in Brussels professor Guntram Wolff told the outlet, stressing that in Europe, “productivity growth has just been a disaster,” and that while the region “is still rich… these differentials over 20 years have massive implications.”

“Something is changing very dramatically and very, very deeply in this world,” ex-Polish president Aleksander Kwasniewski said. “We can’t react correctly, because we are too slow,” he warned.

By comparison, while the US and China – Europe’s major competitors, face problems of their own, they at least have institutions for centralized decision-making, and the ability to “generate vast amounts of private or public capital for defense and investment in cutting-edge technology” – something that’s not the case in the EU’s case.

Sills pointed to surprisingly frank comments by Emmanuel Macron at a panel in Germany earlier this month, where the French president highlighted the “risk” the bloc faces of finding itself “out of the market” if it continues its classic strategies, and pointed to the loss of cheap Russian energy supplies after 2022, combined with the Biden administration’s moves to lure European industries out of the bloc via cheap energy and subsidies, as central to undermining the EU’s export-centered economies’ competitiveness.

“That adds to pre-existing challenges posed by the rise of China and its own vast manufacturing machine, and the global leap forward in technology innovation that has largely bypassed the region,” Sills suggested, warning that “the result threatens to cause damage that goes beyond simply lagging in investment and productivity,” causing EU leaders to ‘lose faith’ in the European project itself.

“It’s not just Eurosceptics like Hungary’s Victor Orban, a perennial thorn in the bloc’s side. Officials in core European countries are starting to view the EU as an obstacle they need to get around – rather than the source of prosperity and protection it has represented until now,” the observer stressed, pointing, for example, to Paris’s talk of integration with a smaller bloc of Western European economies, and divisions on issues like defense and Chinese investment inflows.

But the EU’s woes have been a longtime coming, Sills stressed, pointing out that the bloc has been in “relative decline” going as far back as the euro monetary union in the late 1990s, and citing a Bloomberg analysis estimating that the bloc would be €3 trillion richer “if it had kept pace with the US – enough to boost the income of the average worker by about €13,000 a year.”

Instead, after 2008 and particularly since 2022, many of the region’s traditional powerhouse economies, including Germany, have been teetering on the brink of and occasionally slipping into recession, and facing deindustrialization amid self-inflicted, unsustainably high energy prices, loss of markets and increasingly potent foreign competition.

“Today we see that for absolutely political reasons, due to their own ambitions and under pressure from their American overlords, European countries are imposing more and more sanctions on the oil and gas market,” President Putin said in May 2022 as Brussels announced plans to wean itself off of cheap and dependable pipeline-delivered Russian oil and gas.

“Rejection of Russian energy resources means Europe will systematically become the region with the highest energy costs in the world… This will seriously – and according to some experts irrevocably – undermine the competitiveness of a significant part of European industry, which is already losing the competition to companies in other regions of the world,” Putin said at the time. “One gets the impression that our Western colleagues, politicians and economists have simply forgotten the foundations of the elementary laws of economics, or, to their detriment, prefer to deliberately ignore them,” he added.

October 13, 2024 Posted by | Economics | , | Leave a comment