EU pledges to spend billions on trade route bypassing Russia
RT | January 30, 2024
The EU plans to raise up to €10 billion ($10.8 billion) in investment to create a transport corridor to Central Asia through the South Caucasus and Türkiye that bypasses Russia, the European Commission announced on Monday at a forum devoted to developing the route.
According a statement released by the European Commission, Brussels is currently ready to allocate €2.97 billion for the purpose.
For additional funding, the European Investment Bank has reportedly signed memorandums of understanding totaling €1.47 billion with the governments of Kazakhstan, Kyrgyzstan and Uzbekistan, as well as the Development Bank of Kazakhstan.
Meanwhile, the European Bank for Reconstruction and Development is expected to sign a memorandum of understanding with Kazakhstan regarding an investment pipeline worth €1.5 billion for projects already being prepared to develop transport connectivity in Central Asia.
The two-day Investors Forum for EU-Central Asia Transport Connectivity, which began in Brussels on Monday, is expected to address the investment that will be necessary to transform the Trans-Caspian transport corridor into “a cutting-edge, multimodal, and efficient route, connecting Europe and Central Asia.”
According to the statement, the bloc is urgently trying to find alternative trade routes between Europe and Asia that could bypass Russia.
EU Uses Lure of Infrastructure Investments to Entice Central Asian States to Turn on Russia
Sputnik – 29.01.2024
The European Union’s offer to help improve infrastructure in Central Asia ultimately serves a “political purpose,” EU’s High Representative for Foreign Affairs and Security Policy Josep Borrell declared.
EU foreign policy chief Josep Borrell has admitted that the EU efforts to invest in the transport infrastructure of the Central Asian states are aimed at enforcing anti-Russian sanctions.
In his speech at the Investors Forum for EU-Central Asia Transport Connectivity, Borrell noted that the European Union needs “full cooperation” from its partners in order for the sanctions imposed on Russia to be effective.
“We are following closely the trade between us, between Central Asia countries, with them and Russia. We try to analyze which are the mechanisms that make sanctions being circumvented. We have to increase our cooperation on that,” he stated.
“Yes, we have to build infrastructures. Yes, we have to increase the connectivity of our space,” he added. “But all that is at the service of a political purpose, which is [to] increase our partnership and to share a better future by increasing economic ties and also defending the same values.”
Meanwhile, the European Commission Executive Vice President Valdis Dombrovskis has announced the intent of European and international institutions who attended the forum to commit some €10 billion “in support and investments towards sustainable transport connectivity in Central Asia,” according to a statement shared via the EC website.
Chinese energy firms top buyers of Iraqi oil
The Cradle | January 29, 2024
Iraq’s State Organization for Marketing of Oil (SOMO) announced on 29 January that Chinese energy firms were the biggest buyers of Iraqi oil last month.
“Chinese companies were the largest in number among other international companies in purchasing Iraqi oil, with 12 companies out of 44 companies purchasing oil during the month of last December,” SOMO said.
“Indian companies came second with seven companies, South Korean companies came third with four companies, Turkish companies came third with three companies, and American, Italian, Japanese, UAE and Greek companies came fourth with two companies each.
“The rest were Spanish, Dutch, British, Jordanian, Kuwaiti, Russian, Malaysian, Azeri, and French companies,” the statement added.
China was also the largest buyer of Iraqi oil the previous month. Chinese and Indian firms were the top purchasers of Iraqi oil in December 2022.
Ties between Baghdad and Beijing have improved significantly recently, and Chinese firms have increased their presence in Iraq.
In 2019, Iraq signed a 20-year contract, agreeing to supply Chinese firms with 100,000 barrels per day (bpd) of crude oil, with the revenue earmarked for funding various development projects in Iraq undertaken by Chinese firms.
Following the deal, Chinese firms built 1,000 schools, developed the Nasiriya city airport, erected power plants, and completed several other infrastructure projects.
China has accelerated its investment in Iraq and other West Asian nations as part of its Belt and Road Initiative (BRI), announced in 2013.
Last month, Iraq began work on 30,000 housing units near Baghdad as part of a $2 billion project in partnership with Chinese firms to build five new cities across Iraq.
Beijing is fully committed to “friendly” ties with Baghdad and “actively participates” in Iraq’s reconstruction, a Chinese official told Kurdish news outlet Rudaw on 3 January.
The recent surge in Chinese-Iraqi cooperation comes as Iraq continues to fall under attack by the US army.
In October, Iraqi resistance factions banded together under a single coalition to confront US bases in Iraq and Syria. The attacks – which have been ongoing – are a show of solidarity with the resistance in Gaza and a rejection of US support for Israel’s assault on the strip.
Red Sea Crisis Is Opportunity for U.S. to Weaken Europe & China
By Finian Cunningham | Strategic Culture Foundation | January 28, 2024
The Red Sea conflict is intensifying as is the impact on commercial shipping and the global economy, according to shipping news reports.
One might think that common sense would prevail here to solve the conflict diplomatically and quickly. If a ceasefire was called in Gaza to stop the horrendous slaughter of Palestinian civilians by Israel then that would end the restrictions imposed on shipping by Yemen.
Yemeni leaders have unequivocally said so. End the genocide and we will end the interdiction on shipping.
The moral imperative to immediately end the appalling suffering in Gaza is therefore a straightforward – not to say absolutely necessary – way to restore normal navigation through the Red Sea and for wider peace in the region. It’s not a dilemma. It’s not a conundrum. And it’s inexcusable to prevaricate.
The United States has the power to end the Israeli genocide. But the Biden administration has refused to exert its control over the Netanyahu regime.
Washington has opted to escalate the military aggression in the Red Sea by launching at least eight waves of air strikes since January 11 on Yemen – the poorest nation in the Arab region, having already suffered a genocidal war at the hands of the U.S. and Britain supporting Saudi Arabia’s aggression between 2015 and 2022.
The Yemenis have in turn defiantly warned that their operations to interdict shipping will continue until the genocidal siege on Gaza has ended.
Biden even admits that the military action to deter the Yemenis is limited in achieving its supposed objectives.
So, why continue to aggravate the situation and escalate potential conflict across the region? Not only will bombing Yemen not work, but it is also inflaming violence across the Middle East and risking a head-on confrontation with Iran which is allied with the Yemenis.
As Iranian Professor Mohammad Marandi points out in our interview this week a big incentive for the U.S. and its Israeli ally is to blow up the region as a reckless and nefarious way to conceal how disastrous the defeat in Gaza is for the Americans and their Israeli client regime.
But there may be more to it. Another incentive for taking a militarized response to the Red Sea crisis is the strategic gain that this gives the United States with regard to Europe and China.
The Red Sea shipping restrictions are hitting the European and Chinese trade most acutely. American economic interests are relatively unaffected.
It is estimated that about 60 percent of China’s exports to Europe are shipped through the Red Sea, according to the Washington DC-based Middle East Institute.
Put another way, Eurostat figures indicate that 20 percent of all EU imports come from Asia via the Red Sea.
Inevitably, the longer the insecurity and hostilities persist in the Red Sea, the worse will be the damage to Europe-China trade and their economies.
Reuters reports that China is urging Iran to rein in the actions of the Ansar Allah and Yemeni armed forces in the Red Sea. That indicates how severe the impasse is impacting Chinese trade with Europe.
The Europeans meanwhile seem oblivious to the damage that the United States’ policy is inflicting on their economies. The Europeans have meekly gone along with Washington’s militarized aggression against Yemen.
It is a long-term and deeply coveted goal for Washington to cleave European trade and political relations with China. China has become the European Union’s top trading partner, surpassing the United States in that historic role.
During recent Democrat and Republican administrations, Washington has vigorously sought to undermine European-Chinese relations. The Americans have reacted testily to any trade and investment pacts signed between the two.
The Red Sea crisis is thus a handy opportunity for the United States to kill two birds with one stone.
By ramping up the shipping problems through militarizing the conditions, the U.S. can weaken the economies of Europe and China while also sticking a very big wedge between the two.
In short-term American imperial calculation that is a tantalizing gain. The U.S. consolidates its hegemonic control over the weaker European allies while damaging China’s economic power.
This short-term zero-sum thinking by the American imperial planners is of course self-defeating in the long term from the far-reaching deterioration in the global economy and international peace and security. But long-term thinking about the common global good is not a priority for U.S. capitalist imperialism. One might even say they are fundamentally in opposition.
There is a close analogy here to the Ukraine crisis. Washington has pursued hostilities with Russia as a way to undermine European-Russian trade and their wider cultural and political relations. Washington calculates that such antagonism will bolster its hegemonic ambitions. The ideologically slavish European leaders have gone along with that policy even though it has resulted in an economic and security disaster for Europe.
The European leaders are either too stupid or too brainwashed to assess what is going on and how they are being manipulated by Washington for its selfish strategic interests.
If the European regimes had any independence or integrity they would not have gone down the path of conflict with Russia in Ukraine. But as it is, they have been had by Uncle Sam – big time. What’s more, they don’t seem to realize or even care.
Likewise, the same fate of shooting themselves in the foot is occurring over the Middle East crisis. The Europeans are backing a genocide in Gaza in deference to U.S. imperialist interests and the Israeli regime. That has rebounded with the Red Sea crisis that is set to hammer EU-China trade. Rather than seeking to resolve the conflict diplomatically, the Europeans are making it worse and in the process damaging their own international standing and strategic interests.
No wonder the Americans ultimately treat their European vassals with contempt. Because they are utterly spineless and clueless.
US promised to seize Russian assets – Kiev
RT | January 27, 2024
The US assured Kiev that the Russian assets that remain frozen in the West are going to be seized and used to rebuild Ukraine after the conflict, Ukrainian Prime Minister Denis Shmygal has said.
The US, EU, and their allies blocked some $300 billion of Russian central bank assets as part of sanctions in response to Moscow’s military operation in Ukraine. Around $200 billion of that money is held in the EU.
Politico reported on Thursday that it asked Shmygal if he was concerned that US funding for the Kiev government would come to a complete stop if Donald Trump won the presidential election in November and returned to the White House for his second term.
”We have all the assurances from the US about long-term support for Ukraine – for example, the seizure of Russian assets to fund the Ukrainian recovery,” he claimed.
On Wednesday, a US Senate committee approved the “Rebuilding Economic Prosperity and Opportunity (REPO) for Ukrainians Act,” which should help pave the way for such a move by Washington. If it passes both houses and is signed into law by President Joe Biden, Washington could seize the Russian central bank assets, using such a measure against a country that it’s not directly at war with for the first time in history.
Reuters reported this week, citing a senior official in Brussels, that the EU will be unlikely to join the US in confiscating the Russian funds as there’s no agreement on such a step between the bloc’s member-states.
Earlier in January, Russian Deputy Foreign Minister Sergey Ryabkov warned that Moscow would respond to a possible seizure of its assets by the West, inducing tit-for-tat measures.
Previously, Kremlin spokesperson Dmitry Peskov said that the confiscation of Russian funds would amount to “outright theft” by the West. He told reporters that it would undermine the trust in the US and EU financial systems around the globe.
Shmygal also stated that Kiev is “working hard with the administration of President Biden and with Congress to have support for 2024.” As for the continuation of the aid in 2025, “we’ll see how conditions develop,” he stressed.
”I believe that any president of the US will support our fight for civilized values, our mutual values,” the Ukrainian PM said.
The US has provided Ukraine with around $111 billion in economic and military support amid the conflict with Russia. But the flow of funds subsided dramatically in recent months as Republican lawmakers continue to resist attempts by the White House to push through another $60 billion in assistance for Kiev.
US Attempts to Sideline Russia Under Black Sea Security Strategy Won’t Work – Military Expert
By Ekaterina Blinova – Sputnik – 26.01.2024
Washington is developing a new Black Sea strategy envisaging bolstering the US and NATO role in the region, as Assistant Secretary of State for European and Eurasian Affairs Jim O’Brien announced at a German Marshall Fund meeting on January 25.
Assistant Secretary of State O’Brien, who oversees US relations with Europe and Eurasia, visited the German Marshall Fund on Thursday to discuss 2024 US priorities in Europe, including backing Ukraine and “widening European integration.”
During his speech, O’Brien placed special emphasis on the strategic importance of the Black Sea to the US and NATO, stressing that the development of a grand design to ensure security in the region is underway. He pointed out that meetings had been held with Turkiye and other littoral states.
“[The US] want[s] to establish dominance over the Black Sea,” Vasily Dandykin, a captain 1st rank reserve and military expert, told Sputnik. “This is an old idea. One of the goals is to bring Ukraine into NATO. Because they believe that whoever dominates the Black Sea and owns Crimea receives all the bonuses. This is the underbelly of Russia in the south. And that’s why there was such irritation when the Crimean Spring happened in 2014 [Crimean people voted to reunify with Russia in March 2014 – Sputnik ]. As far as I remember the Americans had agreed with Kiev to establish a base for the US fleet in Sevastopol by that time.”
What’s Behind US Plans to Create Strategic Dominance in the Black Sea?
It was not the first time that O’Brien has pushed the idea of beefing up US/NATO presence in the region. On October 25, 2023, the US official testified before the US Senate’s Subcommittee on Europe and Regional Security Cooperation. He claimed that the Ukraine conflict is “a very good bargain” for the US as it gives Washington a unique opportunity to increase NATO’s military presence in the Black Sea, including the region’s lands, airspace, and waters, while “Ukrainians are paying the bulk of the cost” by fighting with Russians.
NATO’s dominance in the region could create conditions for pulling Ukraine and other Black Sea countries away from Russia and integrating them into the Western sphere of influence, O’Brien added. That would also help the West build oil and gas pipelines that lead from Central Asia via Armenia, Azerbaijan, Georgia, and Turkiye to Europe thus completely axing Russia’s energy commodities from the Old Continent’s market. In particular, O’Brien hinted that Washington was very interested in the Ukrainian conflict going on to allow the US to accomplish its geopolitical goals in the Black Sea region.
The Biden administration is considering the idea of redrawing the energy map of the Black Sea region altogether, as Edward Hunt, a PhD in American Studies from the College of William & Mary, has written in his op-ed for Foreign Policy in Focus. Hunt noted that the idea of the “Southern Gas Corridor” through the Black Sea was recently touted by State Department official Geoffrey Pyatt, who served as a US ambassador to Ukraine at the time of the 2014 coup d’etat in Kiev and who now leads US energy diplomacy. Per Pyatt, “the redrawing of the energy map around the Black Sea that’s taking place” envisages “new pipeline infrastructure”, in particular, “the Southern Gas Corridor to bring gas from Central Asia to European consumers.”
‘NATO’s Expanding in All Directions’
Meanwhile, Dandykin pointed out that Washington’s expansionist plans are not limited to the Black Sea:
“The fact is that the strengthening of the United States and NATO – first of all, the United States – in all directions has become the general concept,” the military expert stressed, adding that the US has recently expanded its continental shelf (including in the Arctic region) to about one million square kilometers – an area twice the size of California.
“They established their bases in Finland, and the Finns gave the go-ahead, for airfields, etc. In the Baltic, near our borders, maneuvers will now take place for two months, with a total of 90,000 [NATO] military personnel. This is a concept of the expansion in all directions, including in the south. They seek to encircle and bleed the Russian Federation white,” the expert said.
Dandykin emphasized that Washington appears to have benefitted the most from the Ukrainian conflict and sanctions spree. The US forced Europe to decouple from Russia and at least partially filled the latter’s shoes. The American military-industrial complex is now working “at full capacity” to replenish the allies’ depleted weapons stockpiles, as their obsolete weapons have been burned down in Ukraine.
“More and more [Western] countries are placing orders for weapons. There is a military schizophrenia in Germany, they want to rearm. The Americans have always been the beneficiaries in all these messes. Therefore, they will, in particular, try to pour more gasoline on the fire this year to create difficulties for Russia,” Dandykin said.
How Will Russia React to US Black Sea Strategy?
The US and their NATO allies have been trying to enhance their operations in the Black Sea, the military expert noted, referring in particular to Western surveillance drones flying in close proximity to Crimea.
Russia has repeatedly warned the US against meddling in the Ukraine conflict. On the morning of 14 March 2023, a Russian Su-27 fighter jet was scrambled to intercept an American MQ-9 Reaper drone. The latter eventually crashed into the Black Sea after conducting a botched maneuver.
Dandykin pointed out that no matter how brazen the US and its NATO allies may behave, they are fully aware that they are risking nothing short of a nuclear war with Russia.
Washington’s Black Sea strategy obviously won’t go unnoticed by the Russian Foreign Ministry, the expert continued, adding that Russia is ready for all potential scenarios. He noted that a lot depends on how Black Sea littoral states, especially Turkiye, will react to Team Biden’s Black Sea initiatives. Ankara has so far demonstrated its firm position by closing off the Bosphorus and Dardanelles straits to warships from any country, whether or not they border the Black Sea, after the beginning of the Russian special military operation in Ukraine. Besides, a new conflict in the Middle East over Israel’s Gaza war may also influence the balance of power in the region. So, Russia is likely to take a wait-and-see approach and it won’t add fuel to the fire as its American counterparts are presently doing overseas, Dandykin noted.
What’s more, the US security doctrine for the Black Sea could hardly be accomplished as it excludes Russia, a littoral state with considerable strategic strength and influence in the region, Dandykin stressed. “No, it’s obviously impossible” the expert emphasized when asked whether it’s possible to implement this or any other security strategy in the Black Sea region without the participation of the Russian Federation.
Biden halts new LNG exports
The fuel is seen as a vital lifeline for Western Europe, which has cut itself off from cheaper Russian gas imports
RT | January 26, 2024
US President Joe Biden has ordered a pause on liquefied natural gas (LNG) exports from new projects in the country, citing their potential contribution to climate change. Energy costs in Western Europe have skyrocketed since nations such as Germany switched from Russian gas to American LNG, but Biden insists the continent doesn’t currently need additional supplies.
The pause will allow the US Department of Energy (DOE) to update the economic and environmental guidelines it uses when approving new export licenses, and will last for several months.
“During this period, we will take a hard look at the impacts of LNG exports on energy costs, America’s energy security, and our environment,” Biden said in a statement on Friday. The president added that the pause “sees the climate crisis for what it is: the existential threat of our time.”
According to the White House, roughly half of American LNG exports went to Western Europe last year, and the US has exceeded its annual delivery targets to the EU for each of the last two years. “Today’s announcement will not impact our ability to continue supplying LNG to our allies in the near-term,” Biden claimed in his statement.
Europe remains mired in an energy crisis. The continent’s former industrial powerhouse, Germany, is “in a particularly difficult situation” after abandoning Russian gas supplies, Economy Minister Robert Habeck told lawmakers last week. Prior to the imposition of sanctions on Moscow over the Ukraine conflict, Germany received 40% of its gas imports from Russia. Replacing this fuel with LNG from the US, as well as energy from Norway and the Netherlands, has come at a cost, with the German government forced to roll out massive subsidy packages to prevent its largest industrial firms from leaving the country.
German industrial output fell by 2% last year, while the entire economy shrank by 0.3% in the same time period, the country’s Federal Statistical Office reported last week. The office blamed the decline on high inflation, soaring energy prices, and weak foreign demand.
LNG is transported on large tanker ships to regasification plants, where it is heated to return it to a gaseous state. Germany has rushed to bring three such offshore plants online since early 2022, and plans to open three more over the coming months. The US has also built out its LNG export infrastructure to cope with the demand, including the Calcasieu Pass 2 project in Louisiana, which once certified will be the nation’s largest export terminal.
The Calcasieu Pass 2 facility will likely come before the DOE for approval in the coming weeks, where it will be stalled indefinitely by Biden’s pause. With half of the terminal’s output set to go to Germany, a spokesman for the project’s developer, Venture Global, told Reuters last week that the pause would send a “devastating signal to our allies that they can no longer rely on the United States.”
Saudi, Chinese vessels undeterred by Yemen Red Sea ops
The Cradle | January 26, 2024
Saudi Aramco, the world’s largest oil company, is continuing to send oil and fuel tankers through the Red Sea, despite US and UK bombing of Yemen and attacks by Yemen’s armed forces on Israeli, US, and UK-linked ships passing through the Bab al-Mandeb Strait.
“We’re moving in the Red Sea with our oil and products cargoes,” Mohammed al-Qahtani, head of Aramco’s refining and oil trading and marketing businesses, told Bloomberg on 26 January.
The risks of continuing to use the Red Sea route to Europe amid the violence are “manageable,” he said.
In November, Yemen’s de-facto government, led by the Ansarallah resistance movement, began targeting ships with Israeli links and ships traveling to Israel via the Red Sea and Suez Canal.
Ansarallah took the decision in response to Israel’s bombing and ground campaign against Gaza, which many view as a genocide.
Rather than press Israel to end attacks on Gaza, the US and UK began bombing targets in Yemen, endangering not only Israeli-linked ships but ships from other nations as well.
In response, many of the world’s largest shipping companies began redirecting ships around the Horn of Africa, adding two weeks to the journey from Asia to Europe.
But in January, Aramco increased crude shipments through the Red Sea toward Europe, according to vessel tracking data compiled by Bloomberg.
“That is also giving us huge access and optionality,” Qahtani said. “We are assessing that almost on a daily basis.”
He said that the cost of these shipments has increased, as few shipping companies are willing to travel the route, and insurance costs have risen. “But overall it’s is very manageable.”
Most Saudi crude is exported east to Asia, but the kingdom has been able to continue using the Red Sea route for western shipments due to its continued ties with the Yemeni government.
Saudi Arabia and Ansarallah continue to negotiate a formal end to the war they fought between 2015 and 2022.
As western shipping companies have rerouted their ships, Chinese firms have stepped in to fill the void, as China also enjoys good relations with Ansarallah and does not fear its ships being attacked in the Red Sea.
Chinese firms have been serving ports such as Doraleh in Djibouti, Hodeidah in Yemen, and Jeddah in Saudi Arabia, which all saw major drops in port traffic following the attacks.
Cichen Shen, the China expert at Lloyd’s List Intelligence, told the Financial Times that the “easiest explanation” for the rush of Chinese operators into the region was that they seek to exploit their relative invulnerability to attack to win business.
“You have commercial interest and you see this capacity gap and you see the demand,” Shen said of the lines’ motivation for moving ships to the region. “I think the commercial interest is probably the biggest reason.”
Russian Foreign Ministry Ties Red Sea Blockade to Gaza Blockade, Backs Houthis in Moscow Meeting
By John Helmer | Dances with Bears | January 25, 2024
For the time being, there are no official photographs of the meeting in Moscow on Thursday evening at the Russian Foreign Ministry between Mikhail Bogdanov, the deputy foreign minister and chief Russian negotiator in the Middle East and Africa, and Mohammed (Mukhameddov) Abdelsalam leading a delegation of the Ansarallah government of Yemen, known as the Houthi movement.
Bogdanov’s communiqué said “special attention was paid to the development of tragic events in the Palestinian-Israeli conflict zone, as well as the aggravation of the situation in the Red Sea in this regard. In this context, the missile and bomb attacks on Yemen undertaken by the United States and Great Britain, which are capable of destabilizing the situation on a regional scale, were strongly condemned.”
This is the plainest signal to date of Russian backing for the southern front of the Arab war against Israel, and the link which the Houthis have made between the Israeli blockade of Gaza, the genocide of the Palestinians, and the Red Sea blockade which the Houthis have imposed on vessels owned or directed by Israeli shipowners, US naval fleet, and American-flagged and other vessels carrying military and civil cargoes to Israel or reload ammunition for future attacks on Yemen.
At the same time across Moscow, unusually large delegations of officials of the Russian Security Council, led by Nikolai Patrushev, and Ali-Akbar Ahmadian, special presidential representative and Secretary of Iran’s National Security Council, have been meeting to discuss a detailed agenda which Patrushev’s communiqué calls a “wide range of Russian-Iranian security cooperation” and “the practical implementation of the agreements reached at the highest level.”
In an open statement for reporters, Ahmadian told Patrushev: “”America’s grandeur has shattered, and today, it cannot even rally its traditional allies. A country that considers itself a superpower is engaged in war against resistance groups and the people of the region.”
The display of Russian support for the Axis of Resistance against Israel and the US is unprecedented. The Foreign Ministry and Security Council meetings confirm there is now a new definition of “terrorism” in Russian warfighting strategy, in which there is both public and secret support for Hamas, the Houthis, and other groups in Lebanon and Iraq fighting for national liberation against Israel and the US. (On the differentiation between national liberation which Russia supports, and terrorism which it condemns, click to read this.)
Bogdanov’s meeting with Abdelsalam was not the first high-level Russian contact with the Houthis, nor their first negotiation. The two officials had met in Moscow on July 24, 2019, when they discussed terms for ending the civil war in Yemen; Bogdanov was also meeting at the time with other Yemeni political factions. Abdelsalam said then: “The meeting discussed the most important issues related to the Yemeni policy and the steps of the national delegation [the Houthi delegation] in the Stockholm Agreement in addition to the regional crisis, in addition to the importance of the Russian role at the regional level, and its reflection on the situation in Yemen to calm the escalation and prevent further tension as Yemen represents a key point towards regional calm that will be positively reflected in the tense regional situation.”
Bogdanov met Abdelsalam again in Oman on August 30, 2019.
So long as the agenda was limited to the Yemen civil war and the intervention of Saudi Arabia, the United Arab Emirates and Qatar, the Israelis were not exercised. But they are now, as the Russian Foreign Ministry announcement of Thursday evening’s negotiations caught Israeli intelligence agents and government officials by surprise. The first Israeli press reports over Thursday night cribbed from Reuters which had followed Tass in reading the Foreign Ministry communiqué; no Israeli officials were available to comment to their reporters.
The Russian-Houthi negotiations took place in parallel with the talks between the Russian Security Council and their Iranian counterparts headed by Ali-Akbar Ahmadian, head of Iran’s Security Council. Tass reported that Nikolai Patrushev had invited Ahmadian to the talks. Ahmadian issued a statement through the Iranian Embassy in Moscow to say “the Supreme National Security Council secretary hailed Iran-Russia cooperation in the fight against terrorism, particularly in Syria, saying that cooperation must continue.” By terrorism Ahmadian meant Israeli attacks on Iranian military advisers in Syria, as well as the bombing of civilians at the Kerman cemetery on January 3.
Here is the full text of the Bogdanov-Abdelsalam communiqué:
On the meeting of the Special Representative of the President of the Russian Federation for the Middle East and Africa, Deputy Minister of Foreign Affairs of Russia Mikhail Bogdanov with a delegation of the Yemeni Ansar Allah movement
On January 25, the Special Representative of the President of the Russian Federation for the Middle East and Africa, Deputy Minister of Foreign Affairs of Russia Mikhail Bogdanov received a delegation of the Yemeni Ansar Allah movement headed by Mohammed Abdelsalam.
During the in-depth conversation, an in-depth discussion took place on the issues of a comprehensive settlement of the military-political crisis in Yemen, which has been going on for almost nine years. At the same time, the importance of increasing international efforts to create the necessary conditions for establishing a full-scale inter-Yemeni national dialogue under the auspices of the United Nations was emphasized.
Special attention was paid to the development of tragic events in the Palestinian-Israeli conflict zone, as well as the aggravation of the situation in the Red Sea in this regard. In this context, the missile and bomb attacks on Yemen undertaken by the United States and Great Britain, which are capable of destabilizing the situation on a regional scale, were strongly condemned.
Here is the Russian Security Council communiqué following the plenary session between Patrushev, Ahmadian and their delegations, before they broke up into working-group meetings:
In Moscow Russian Security Council Secretary Nikolai Patrushev held talks with the Secretary of the Supreme National Security Council of Iran Ali Ahmadian
A wide range of Russian-Iranian security cooperation was discussed. The focus is on the interaction of the security councils, law enforcement agencies and special services of the two countries. Special attention is paid to the fight against terrorism, information security issues, problems of ensuring the economic security of Russia and Iran in the face of sanctions pressure from Western countries, as well as countering attempts to interfere in the internal affairs of sovereign states. The development of a new bilateral comprehensive long-term agreement was touched upon. It was emphasized that the conclusion of this fundamental document will give a powerful impetus to the further development of mutually beneficial cooperation in all spheres.
In addition, the conversation discussed global and regional trends, as well as the upcoming bilateral and multilateral contacts between the Security Councils of Russia and Iran in 2024. The schedule of activities of the working groups of the Security Councils of the two countries on issues of mutual interest has been agreed.
The parties noted that relations between Russia and Iran continue to strengthen and reach a qualitatively new level across the entire spectrum of areas. The focus on the practical implementation of the agreements reached at the highest level was confirmed.
Hours after this meeting in Moscow, but before the Houthis arrived at Bogdanov’s office in Moscow, Russian Foreign Minister Sergei Lavrov held a press conference at the United Nations in New York. Lavrov did not mention the Houthis explicitly nor did he condemn their blockade of Israeli ports, shipping and deliveries, but he did attack the Anglo-American bombings of Yemeni territory.
“Regarding the Red Sea,” Lavrov said, “there is a direct and illegal aggression there in violation of all international norms. Those taking part in it and who are behind this aggression are lying when they claim that this is an act of self-defence in accordance with the UN Charter. Our mission in New York has circulated a real document that reviews all the arguments put forward by the UK and the US and exposes their actions as outright robbery rather than self-defence.”
Asked about Russia’s relationship with India and the plan for an eastern maritime corridor for shipping between the two countries, Lavrov replied by emphasizing Russia’s strategic priority is to defend against US and NATO attacks, including economic warfare against its oil exports.
A question of this kind calls for a lengthy answer. To put it briefly, just like most countries on the Eurasian continent, Russia needs new corridors as a way of cutting logistics costs and ensuring faster deliveries compared to using the Suez Canal or sending ships around Africa. Everyone is interested in creating these transport and logistics chains and ensuring that they are independent from the West and those who regularly abuse their standing in global trade and along the shipping routes.
There is the North-South corridor that ensures quick, effective and reliable shipments from the Baltic Sea to the Persian Gulf. There are plans to link Russian ports in the Far East with India. There is also an initiative called Europe–Middle East–India, backed by western Europeans. For us, the North-South corridor remains a priority and India stands to directly benefit from it. This route will cross Russia, Azerbaijan, Iran and go all the way to India. Pakistan is also interested.
There has been much talk about this lately. India is looking at the Northern Sea Route with a lot of interest. The same goes for China. Considering global warming and the fact that it is expected to become operational year-around, the Northern Sea Route can directly compete against all other routes since it cuts shipping time by a third compared to the Suez Canal, to give you one example. We have been discussing it with our Indian colleagues but, of course, not at the Foreign Ministry level. The ministers of economy, finance, transport and our prime ministers are working on this matter. This is one of the most promising tasks in terms of our regional development.
Source: https://splash247.com
Moscow sources say the official communiqués indicate the multi-track approach Russian strategy is adopting, and speak for themselves, requiring no comment at this stage
Vzglyad, the semi-official Moscow website for security analysis, which has followed a pro-Israel, anti-Hamas line since October 7, reported on January 24 that their sources are confident that Russian oil shipments to India and China, through the Suez Canal and Red Sea, remain secure from attack by the Houthis, and also that there will be no behind-the-scenes interference from Saudi Arabia. Without saying as much, the Vzglyad reporter conceded this is only possible because there have been direct Russian agreements with the Houthis and Iran.
“Russia has not changed logistics at all,” Vzglyad reported a source, Igor Yushkov, an analyst of the National Energy Security Fund. “Ships with our oil are still sailing through the Red Sea past Yemen, and we will most likely be the last to leave the Suez Canal. Russia will [sic] obviously try to negotiate with Iran to coordinate the passage of Russian tankers through the Suez Canal and the Red Sea.”
“In general, Russia, of course, benefits if all the other oil producers are forced to send their ships around Africa via the Cape of Good Hope, while Russia itself retains the shorter, previous route through the Suez Canal and the Red Sea… Because the logistics will become more expensive for all other companies, these costs will be included in the cost of oil, and so that will grow. Whereas Russia’s transportation costs will remain the same, and it will then be possible to sell Russia’s oil more expensively. As for Saudi Arabia, Russia has many more points of common interest with it than differences. Therefore, the West’s bet on a contest between the two countries over the entire situation with navigation in the Red Sea is premature.”
Premature is official Russian-speak for wishful thinking.
Boris Rozhin, chief of the Colonel Cassad internet platform and one of the leading military analysts in Moscow, noted on the evening of January 25: “Since the Yemeni Ansar Allah movement began its operations against shipping related to Israel, the volume of cargo traffic through the Suez Canal has decreased by about 85%. Navigation on the Suez Canal has almost completely stopped after the attacks in the Red Sea. This has a serious impact on the Israeli economy.” Rozhin, who has been writing on the Yemen conflict for several years, has not yet commented on the Houthi visit to Moscow.
According to Vzglyad’s source, “I don’t see any serious reduction in Russian oil supplies to India and China. Moreover, by itself Russia is now reducing production and exports; these are included in the new commitments under the agreement with OPEC+. At the same time, Russia is still the largest supplier for both India and China. Therefore, it is not worth saying that we have left these markets or someone has pushed us out… There are no problems with the sale of Russian oil, and it is unclear why Saudi Arabia would squeeze Russia out of the Asian market. In the previous two years, we have swapped markets — the Saudis got the European market after Russia left. At the same time, Saudi Arabia is still represented in Asia, where Russia has now become a strong player. It makes no economic sense to compete and knock the ground out from under each other’s feet… In order to displace Russian oil from the Asian markets, the Saudis would have to offer the same price as Russia offers. However, it is more profitable for Saudi Arabia to send oil to Europe, even around Africa, than to give the same discount of $10 per barrel which Russia gives to India and China.”
CURRENT PRICE QUOTES IN THE CRUDE OIL MARKET (BEFORE DISCOUNTING)
Source: https://oilprice.com/
Vzglyad concludes: “Even if Saudi Arabia gives this discount, Russia will still have nowhere to go, because we cannot supply this oil to Europe. This means that we would have to give an even bigger discount to Asian customers. Why should Saudi Arabia compete with us in the amount of this discount in order to supply oil to China and India, if they have the European market… One more point: if Saudi Arabia and Russia supply oil to Asia, who will supply oil to Europe? Then there will be a shortage of oil in Europe, the price will rise, and the Europeans will lure non–Russian oil at a high price.”
Moscow sources note that since this is the consensus calculation of the Russian oil exporters, the political and military calculation follows that agreement on terms with the Houthis and Iran is a must. “There is no place left for Israel in this calculation of Russia’s national interest”, one of the sources adds.
Insurance underwriters insert ‘no connection to Israel’ clause for shipping
MEMO | January 25, 2024
Insurance underwriters are requiring some clients to sign contracts guaranteeing that they have no connection to Israel or the US in order to obtain cover for cargo ships passing through the Suez Canal, the New York Times has reported. The demand comes as Houthi attacks in the Red Sea have pushed up insurance premiums for merchant vessels.
According to the NYT, the attacks at this critical choke point handling 12 per cent of global trade have more than doubled the average worldwide shipping costs. Some ships are opting to avoid the Suez Canal and instead take the longer route around the Cape of Good Hope in South Africa, adding weeks to delivery times.
Passing through the Red Sea still necessitates expensive speciality war risk insurance offered by London brokers to cover potential Houthi strikes. Rates have jumped as much as 50 times more than before the Yemen conflict, and now cost up to one per cent of a ship’s value despite relatively minimal damage to ships so far. For a ship carrying goods worth $100 million, that could mean an extra $1m to be insured.
Insurers blame the increased risk on Israel’s military offensive against the Palestinians in Gaza. By forcing clients to guarantee that they have no ties with Israel and its Western allies, underwriters aim to shield themselves from inadvertently covering any vessels associated with the current geopolitical tensions underlying the attacks.
Analysts say that the ripple effects on global trade and consumer prices are still unfolding. They warn that if Red Sea transit remains high-risk, inflation could return.
The demand by underwriters follows previous preventative measures taken by vessels to avoid Houthi attacks. Earlier this month, cargo ships passing into the Red Sea began to declare that they have no links to Israel, according to data from the navigation safety feature known as the Automatic Identification System (AIS), which transmits the identity, location and destination of larger vessels.
Israel’s Western allies appear to be running out of options in their attempt to contain the Houthis. Yesterday, the Financial Times revealed that the US has urged China to help curb Houthi attacks around the crucial Bab Al-Mandab Strait. Chinese ships are not being targeted by the Yemeni group and nor are vessels of countries that are not supporting Israel’s genocidal campaign in Gaza. Nevertheless, China is reported to have expressed “concern” about the attacks, and called for “restraint”.
French fury: Farmers sowing seeds of revolution against elites in Paris
By Rachel Marsden | RT | January 25, 2024
The French government is scrambling to get a whole lot of tractors off the nation’s major highways. Good luck with that when 89% of French citizens back the protesting farmers, according to a new Odoxa poll.
France is joining a movement that now encompasses nearly 20% of the EU, with farmers in five of the bloc’s 27 countries convoying and blockading major roads. Farmers from Poland, Romania, Germany, and the Netherlands have now been joined by their counterparts from the country virtually synonymous with revolution. And one particular incident here in France has just shifted the nascent movement into overdrive.
Alexandra Sonac, a 35-year-old cattle and corn farmer from the south of France, and three of her four family members were struck by a car in the dark early morning hours at a farmers’ highway blockade near Toulouse. Sonac and her 12-year-old daughter were killed, while her husband is in intensive care. The incident is still under investigation, but to add insult to injury, the three Armenian occupants of the vehicle that struck the family were reportedly under an expulsion order.
The symbolism here is glaring. A productive farmer resisting government economic oppression was killed by someone who has enjoyed the benefits of government laxity. Just 12% of expulsion orders were carried out by France between 2015 and 2021, one of the lowest rates in Europe, according to recent statistics.
French farmers’ complaints converge with those of their counterparts across the EU. They’re angry with their own governments, but only because these elected officials have insisted on sliding into the fitted straitjacket imposed on them by the unelected technocratic tyrants in Brussels and their top-down, ideologically driven policies. There’s a good reason why French farmers this week have ripped up and burned the same EU flag that President Emmanuel Macron insists on placing alongside the French tricolor in his various appearances.
Farmers all across the bloc have similar demands. They want a fair price for energy while the EU not only has imposed costly climate policies that treat fossil fuels like the plague, but has also decided, “for Ukraine,” to destroy its own supply of cheap Russian gas that drove Europe’s economy. Then, again for Ukraine, they decided to lift import duties on goods and services from Ukraine, allowing the EU to be flooded with truckers who undercut local providers and with equally undercutting farm products that don’t even meet the EU standards with which European farmers are forced to comply at their own expense. Farmers don’t want handouts, but they want governments to lay off the increasingly heavy taxation as their solution to filling state coffers emptied as a result of their constantly misplaced priorities. They also want their national governments to defend their interests against Brussels’ attempts to replace them with cheap foreign imports through endless free trade deals with countries whose farmers don’t operate under the same regulatory diktats, all while Brussels pushes member states (notably the Netherlands) to buy out farms whose cattle waste doesn’t serve its climate change policies.
It’s no surprise that the average person sympathizes, since they’re equally fed up with their incompetent heavy-handed government serving as a white glove for Brussels’ iron fist. They see that their gas and electricity costs are endlessly climbing, and their buying power is circling the drain, all while the French defense minister, for example, talks about how the Ukraine conflict, that has served as a convenient pretext for Europe’s transfer of wealth from the people to the elites, is such a wonderful opportunity for the military industrial complex. And when the French National Assembly approved themselves a €300 ($327) a month increase in their own allowances this week, just to offset the inflation that’s crushing the average citizen, it serves as yet another example of their total tone-deafness.
On the afternoon of January 24, a massive row of tires and manure was set ablaze by angry French farmers right in front of the prefecture of Agen, in southwest France. Some farmers present denounced the move, others voiced their support, but all agreed to being fed up. More tellingly, police and firefighters on the scene dragged their feet in reacting as the smoke extended almost to the height of the adjacent building, considered a symbol of the French state. Apparently, even frontline workers who serve the state’s institutions are getting fed up with the establishment elites. And not just in Europe, but elsewhere in the West.
Canadian Freedom Convoy truckers and their supporters were vindicated in Canadian Federal Court this week when a judge ruled that Prime Minister Justin Trudeau’s government constitutionally violated fundamental rights and freedoms when it evoked the Emergency Act against protesting opponents to the government’s Covid mandates, which they considered a violation of basic rights and freedoms. The fact that the government ordered bank accounts blocked as a deterrent against protesting should have been the first big hint of growing authoritarianism, but apparently it took a federal judge to spell it out.
German farmers and truckers who began convoying across the country earlier this month told me in Berlin that they were inspired by the Freedom Convoy as they railed against the German government’s imposition of more taxes on the diesel that fuels their farm vehicles, already pricy as a result of the government’s misguided energy policies driven by ideological, knee-jerk opposition to fossil fuels and to cheap gas from Russia. In both the Freedom Convoy and farmer cases, grotesque attempts by government officials to portray protesters as some kind of right-wing radicals, to absolve elites from responsibility, have fallen flat among the general population.
Truckers, bakers, students, firefighters, and police are already showing signs of solidarity with the farmers, backed by an overwhelming and quantified silent majority. And these national movements are finding common cause with each other around Europe and the Western world. Attempts to foster division by pitting big farms against small ones or right against left fall flat.
French Prime Minister Gabriel Attal, who only started in the job on January 9 and probably still hasn’t found all the washrooms at his new office, trudged down to the rural southern Rhone region last weekend. Attal said that “our farmers are not bandits, polluters, people who torture animals, as we sometimes hear.” Where does he hear that? In Brussels? His seduction skills could use some work. It’s like showing up for a date and saying, “Hey, you’re not as psycho as I heard you were.” What a charmer. Can’t wait to see how this diplomatic savant is going to resolve this whole mess.
A meeting last Monday between Attal and farming reps included a delegate for the Young French Farmers Union. I spoke with several of their counterparts in Berlin at that protest earlier this month — young entrepreneurs, so well-spoken and educated. These young farmers say they work 80-hour weeks and feel there is so much red tape or prohibitions from the EU that it’s paralyzing. And yet France is desperate to encourage young people to adopt farming as a profession at a time when it’s a dying business. Gee, big mystery why that might be, geniuses.
The tragic deaths of Alexandra Sonac and her daughter this week will forever stand as a symbol of struggle against the oppression of the working class by an authoritarian global governance that’s fomenting chaos as it caters to special interests increasingly divorced from those of the average citizen. No amount of tinkering by the offending governments will quell the growing unrest. Only a deep and fundamental rethinking of their relationship with their citizens, whose interests they’re supposed to serve exclusively, would have any hope of resolving this deepening crisis.
Brussels’ diktat on climate change and support for Ukraine is seen as more important than the people who actually feed the country
Rachel Marsden is a columnist, political strategist, and host of independently produced talk-shows in French and English.
German steel production plunges to 15-year low
The home of the largest steel industry in Europe, Germany is facing a continuous crisis over sky-high electricity prices
By John Cody | Remix News | January 24, 2024
Steel production in Germany is cratering, reaching a low point last seen during the 2008 global economic crisis. Steel production dropped to 35.4 million tons in 2022, a decrease of 3.9 percent from 2021.
The hardest hit segment of steelworks was the electrical steel industry, which saw its production sink by almost 9 percent to 9.8 million tons, a figure even lower than the 2009 low. Overall, all segments of the steelworks industry in Germany saw declines.
Since the beginning of the Russian-Ukrainian war, there has seen a continuous downward trend in the German steel sector, in large part due to soaring electricity prices.
Kerstin Maria Rippel, managing director of the German Steel Federation, cited “weak demand” and “intentionally uncompetitive” electricity prices as being factors behind the crisis.
“The annual balance of steel production in Germany clearly shows that the situation for the steel industry (…) is very serious,” she added.
In what appears to be a shot at the ruling left-liberal government, Rippel says that her association notes an “urgent need for political action” regarding transmission grid fees, which have doubled since the beginning of 2023.
She is calling for state subsidies from the “Climate Transformation Fund” to help the sector finance a turnaround.
“We need a clear political concept on how the path to climate neutrality is to be sustainably financed,” said Rippel.
Soaring energy and material costs have hit German industry particularly hard, and the role of the Christian Democrats (CDU) in pushing for the phasing out of nuclear power — a move also supported by the Greens — has also played a role.
The Alternative for Germany party has pointed to the current left-liberal government, along with the previous CDU-led government, as being behind the long-term decline in Germany’s industrial sectors. However, the situation has grown especially dire under Chancellor Olaf Scholz.
“Only on Monday, the pharmaceutical and chemical giant Bayer announced a ‘significant workforce reduction’ by the end of 2025. The tire manufacturer Continental is terminating the 40-hour contracts of thousands of employees, and the gear factory Friedrichshafen (ZF) apparently wants to cut 12,000 jobs. However, the traffic light government doesn’t care about any of this,” wrote the AfD in a statement.
The AfD says it will reverse the green “energy transition” and repair the Nord Stream pipelines in order to return cheap Russian energy to German industry. The party also promises to reduce the tax burden and bureaucracy to jumpstart the German economy.



