US ‘Concerned’ With ‘Abnormal’ Russian Satellite
Sputnik – August 16, 2018
The US is raising hue and cry about a Russian satellite exhibiting what it considers “abnormal” behavior, heavily implying it is a weapon of some sort. However, the US has repeatedly rejected out of hand attempts to prevent a space arms race via an international treaty and is developing its own hypersonic weapons capable of reaching space.
“We are concerned with what appears to be very abnormal behavior by a declared ‘space apparatus inspector,'” US Assistant Secretary of State for Arms Control, Verification and Compliance Yleem Poblete said Tuesday at a UN conference on disarmament in Geneva, Switzerland. “Its behavior on-orbit was inconsistent with anything seen before from on-orbit inspection or space situational awareness capabilities, including other Russian inspection satellite activities.”
The only certainty we have is that this system has been “placed in orbit,'” the diplomat noted, lamenting, “We don’t know for certain what it is, and there is no way to verify it.”
What’s bizarre is that the US, despite noting that “it is difficult to determine an object’s true purpose simply by observing it on orbit” and that “we have no means of differentiating many objects’ behaviors from that of a weapon,” derives from this lack of information the conclusion that the satellite must be some kind of threat.
Of course, Russia and China have been trying to convince the US and other UN member states to agree to a binding treaty that would head off the imminent space arms race. In 2014, the US rejected the draft Treaty on Prevention of the Placement of Weapons in Outer Space and of the Threat or Use of Force Against Outer Space Objects (PPWT).
“Based on the drafting of the treaty language by Russia, there is nothing in the proposed PPWT that would prohibit this sort of activity or the developing, testing or stockpiling of anti-satellite weapons capabilities, so long as it doesn’t damage another object in space,” Poblete noted.
That is why “responsible nations should be considering the practical implementation of voluntary transparency and confidence-building measures and developing norms of responsible behavior for outer space activities, rather than pursuing a protracted and contentious legally binding treaty,” she said.
However, the United States has not proposed any amendments to that draft treaty, noted Alexander Deyneko, a senior Russian diplomat in Geneva, Reuters reported Tuesday.
“We are seeing that the American side are raising their serious concerns about Russia, so you would think they ought to be the first to support the Russian initiative. They should be active in working to develop a treaty that would 100 percent satisfy the security interests of the American people,” he said.
“But they have not made this constructive contribution.”
So in other words, the Americans are angry that the Russians have an object in space they don’t know everything about, and the cause of their ignorance is their own lack of interest in reaching a workable treaty governing weapons in outer space, based on dubious claims about the impossibility of verification. Conclusion? Must be another scary Russian weapon!
Russia launched a “small space apparatus” from the Plesetsk Cosmodrome in June 2017 to be used for “examining the condition of a Russian satellite,” the Russian Ministry of Defense announced last August.
“In the longer term, a research experiment will be carried out to use the space apparatus for examining the outward appearance of that satellite,” the ministry said, noting that it will be “a space platform capable of carrying different payloads.”
The ministry clarified in October that the satellite had been coupled to a larger satellite, Kosmos-2519; it then conducted tests of “controlling the maneuvering defense satellite, ground, and orbital communication systems,” and “methods involving ballistic estimates and new software were employed,” before the smaller satellite returned to Kosmos-2519.
“The space forces proved their ability to ensure the satellite’s automatic undocking from the platform, the remote control of its flight, and the activation of the satellite payload, including surveillance hardware, data transfer to Earth and data processing,” the statement, published in Izvestiya, said.
Meanwhile, as the US raises the alarm over the Russian Defense Ministry “working on creating a mobile attack anti-satellite system” and “no less than six new major offensive weapon systems,” it ignores the fact that it has long since developed most of these capabilities on its own and recently authorized a defense spending bill that allocates nearly half a billion dollars toward a hypersonic missile.
As far back as 2008, the US successfully tested an SM-3 missile for use as a satellite interceptor, blasting a US satellite that was 133 miles up, Business Insider reported.
Further, the 2019 National Defense Authorization Act (NDAA), signed into law on Monday, gives defense contractor Lockheed Martin $480 million to develop a missile that can travel at mach 5 or faster, a contract that follows a previous one in April for $930 million to develop a different prototype, Sputnik reported.
Russian Armaments Completely Adhere to International Law – Kremlin
Sputnik – 14.08.2018
MOSCOW – All new Russian armaments are consistent with the letter and spirit of international agreements, Russia has never violated them, Kremlin spokesman Dmitry Peskov said on Tuesday.
“The president has said that all new armaments are fully consistent with the spirit and letter of relevant international documents. Russia has never violated its obligations under international law and remains committed to them,” Peskov told reporters.
The spokesman stressed that the positioning of Russia as a threat to the United States is groundless, as the US defense budget has always exceeded that of Russia’s.
On Monday, US President Donald Trump signed the 2019 National Defense Authorization Act into law. According to the bill, the United States will discuss with Russia if the latter’s new strategic weapon systems, including the Sarmat missile system, the air-launched nuclear-powered cruise missile X-101, the unmanned underwater vehicle the US government calls “Status 6,” and the long-distance guided flight hypersonic glide vehicle Avangard, are in compliance with the New START treaty.
‘Dismantling global security’: Russian lawmakers dismiss US claims of Open Skies violations
RT | August 14, 2018
High-ranking members of the Russian parliament have stated that Washington’s refusal to cooperate with Moscow on the Open Skies Treaty is based on unfounded charges as Russia has always stuck to its obligations.
“The United States’ accusations in our address are completely unfounded. Russia is acting strictly in accordance with the existing agreements and their terms – the same applies to the treaty on destruction of chemical weapons,” Senator Yevgeniy Serebrennikov said in comments to RIA Novosti.
The senator reacted to the recent news that the US National Defense Authorization Act (NDAA) for 2019, signed by President Donald Trump on Monday, contained a ban on using any funds appropriated by it “to modify any United States aircraft for purposes of implementing the Open Skies Treaty” in response to alleged previous violations of this treaty by Russia.
The head of the Russian Upper House Committee for International Relations, Senator Konstantin Kosachev, said that the US move to freeze its participation in the Open Skies Treaty must be scrutinized by the treaty’s consultative commission. He added that the treaty allowed any of its signatories to deny other participants a particular inspection and also to exit it completely, but had no provisions for a freeze of cooperation between any two of its members.
“Therefore, in my opinion, the US decision contradicts its obligations fixed in the treaty and this must be considered by the Consultative Commission,” Kosachev was quoted as saying by TASS.
Russia’s Deputy Foreign Minister Sergey Ryabkov said that Washington’s move to freeze cooperation with Russia on the Open Skies Treaty was an example of unilateral actions that were unacceptable for civilized dialogue between nations.
“Apart from the extremely high military budget, de-facto the record high $719 billion, the new act contains a number of provisions that boil down to an attempt to impose on other nations the decisions of some well-known problems in the sphere of arms control. They should be regulated by talks and a common search for an acceptable solution at the negotiations table,” the diplomat was quoted as saying by Interfax on Tuesday.
“We are constantly urging the US side to act like this, but unfortunately instead of some constructive replies we only witness new manifestations of the course aimed at dismantling the global security architecture and the existing system of agreements in the field of arms control,” he added.
The Open Skies Treaty was signed in 1992 and became one of the measures to build confidence in post-Cold War Europe. The parties to the treaty regularly conduct reconnaissance flights over each other’s territory to openly collect information on each other’s military forces and activities.
Previously, the United States has accused Russia of violating the terms of the Open Skies Treaty by placing restrictions on overflights of its westernmost exclave of Kaliningrad. Russia’s Foreign Ministry argued that Moscow had complied with all its obligations under all international agreements including the Open Skies Treaty.
Taliban Praises Recent Talks With Washington as ‘Very Helpful’
Sputnik – August 13, 2018
The Arch enemies entered into talks following the successful implementation of a three-day ceasefire in June for the Muslim holiday of ‘Eid al-Fitr.’
A Senior Taliban official has described peace talks held last month with the US as “very helpful” in envisaging a path out of Afghanistan’s seventeen year old war.
The leader, from an organisation within the Taliban called ‘Quetta Shura,’ has been quoted as saying that both sides intend to hold the next round of talks in September, and that these “will be more specific and focused on key issues.” He also added that, “once the breakthrough is started it will be stunning for all.”
The comments come on the heels of a string of reports since the end of July, which describe an unprecedented face-to-face meeting held in the Qatari capital, Doha, between a Taliban delegation and officials from the US State Department, led by senior diplomat Alice Wells. Representatives from the Islamist insurgency were quick to laud discussions at that time too, describing them as “very positive.”
While Washington officials with detailed knowledge of the negotiations remain tight-lipped, Taliban delegates who were in attendance let a few of the specifics loose: allegedly, a key US demand is for Washington to maintain a military presence in Afghanistan while peace talks are ongoing. While initially hostile to such a suggestion, reports suggest that the insurgency’s leadership council has since suggested that it could be open to the idea on the condition that the US plays an active political role in the peace process.
The Taliban has long refused to hold discussions with Ashraf Ghani’s government in Kabul until it is given the opportunity for direct talks with the US. However, leading talks for reconciliation between the central government in Kabul and the Taliban has long been anathema to Washington, which has maintained that it would not heavily involve itself in “Afghan-led, Afghan-owned” negotiations. Echoing that sentiment in early July, Secretary of State Mike Pompeo proclaimed that the Trump administration would “support, facilitate and participate in peace discussions, but peace must be decided by the Afghans and settled among them.”
Yet, as time has ticked by, reports suggest that President Donald Trump has grown impatient with the tactical stalemate on the ground and NATO’s inability to retake chunks of territory controlled by the Taliban. According to the Special Inspector General for Afghanistan Reconstruction, as of January 30 2018, approximately 56.3% of Afghanistan was under the Taliban’s sway. Frustration at such a reality may have culminated in the US president’s decision to dispatch envoys to Afghanistan in early July to open up channels for backdoor diplomacy.
The US’ sudden willingness to sit down with the Taliban has likely been bolstered by the group’s apparent commitment to extirpating foreign terrorist groups from Afghan territory — namely Daesh. This month, a Taliban onslaught reportedly caused 200 Daesh fighters to surrender in the North of the country. Additionally, the group are advancing on a Daesh stronghold in the eastern province of Nangarhar, where a large-scale battle is expected to take place.
Despite the optimism among the Taliban’s echelon, fighting with the Afghan Security Forces continues unabated. In the early hours of Friday, the group’s fighters launched an assault for control of the eastern city of Ghazni. According to the country’s 1TV television station, so far 100 people have been killed. In an effort to repel the advance, the US Air Force launched a series of air strikes on Taliban positions, raising questions as to how likely it is that these old foes are ready to sit down at the negotiating table.
Washington Freezes Open Sky Treaty With Moscow in New Defense Bill
Sputnik – 13.08.2018
US President Donald Trump signed the $716 billion National Defense Authorization Act (NDAA) for the fiscal year 2019 at Fort Drum, New York on Monday.
The bill funds the Department of Defense as well as funding to accelerate US efforts to field a conventional prompt strike capability before 2022, $6.3 billion for the European Deterrence Initiative (EDI), and will obligate Defense Secretary James Mattis to submit a plan to Congress that would stop Turkey from getting F-35 aircraft if it purchases the Russian S-400 air defense system.
“An assessment of the potential purchase by the Government of the Republic of Turkey of the S-400 air and missile defense system from the Russian Federation and the potential effects of such purchase on the United States-Turkey bilateral relationship, including an assessment of impacts on other United States weapon systems and platforms operated jointly with the Republic of Turkey,” the legislation said.
The measure also includes $250 million in lethal defensive items for Ukraine.
Moreover, according to the NDAA, Trump must submit a report to the US Congress by January 2019 regarding whether Russia is in breach of the Intermediate-Range Nuclear Forces (INF) Treaty.
“Not later than January 15, 2019, the President shall submit to the appropriate congressional committees a determination whether — (1) the Russian federation is in material breach of its obligations under the INF Treaty; and (2) the prohibitions set forth in Article VI of the INF Treaty remain binding on the United States as a matter of United States law,” the NDAA said.
In addition, the United States will discuss with Russia if the latter’s new strategic weapon systems are in compliance with the New Strategic Arms Reduction (START) Treaty.
“Not later than December 31, 2018, the President shall… submit to the appropriate congressional committees a report as to whether… the President has raised the issue of covered Russian systems in the appropriate fora with the Russian Federation under Article V of the New START Treaty or otherwise,” the legislation said.
The NDAA also notes that the Russian systems of concern include the heavy intercontinental missile system Sarmat, the air-launched nuclear-powered cruise missile X-101, the unmanned underwater vehicle the US government calls “Status 6,” and the long-distance guided flight hypersonic glide vehicle Avangard.
Trump must report if Russia will agree to declare the covered systems as strategic offensive arms or otherwise pursuant to the New START Treaty, the legislation said.
The White House will notify the appropriate congressional committees as to whether the position of Russia threatens the viability of the New START Treaty or requires appropriate US political, economic or military responses, the legislation also said.
Moreover, the 2019 US National Defense Authorization Act revealed that Trump must present to Congress within 90 days a report on persons involved in transactions with Russia’s intelligence or military sectors.
“Not later than 90 days after the date of the enactment of this Act, the President shall submit to the appropriate congressional committees a report that describes those persons that the President has determined under section 231 of the Countering America’s Adversaries Through Sanctions Act [CAATSA]… have knowingly engaged, on or after August 2, 2017, in a significant transaction with a person that is part of, or operates for or on behalf of, the defense or intelligence sectors of the Government of the Russian Federation, the NDAA showed on Monday.
The NDAA also requires the US President to update such a report every 90 days following the first submission for the next five years.
Meanwhile, the bill also reinforces US partnership with Israel and authorizes co-production of missile defense systems as well as enhances US support for European partners against Russia by funding the European Deterrence Initiative.
Particularly, the Department of Defense must submit a report to Congress by next March on the feasibility of permanent deployment of US troops in Poland.
“Not later than March 1, 2019, the Secretary of Defense, in coordination with the Secretary of State, shall submit to the congressional defense committees a report on the feasibility and advisability of permanently stationing United States forces in the Republic of Poland,” the document said.
“The report required by subsection (a) shall include the following: An assessment of the types of permanently stationed United States forces in Poland required to deter aggression by the Russian Federation and execute Department of Defense contingency plans, including combat enabler units in capability areas such as (A) combat engineering; (B) logistics and sustainment; (C) warfighting headquarters elements; (D) long-range fires; (E) air and missile defense; (F) intelligence, surveillance, and reconnaissance; and (G) electronic warfare,” the NDAA said.
The NDAA also explained that an assessment of the permanent deployment feasibility should include an evaluation whether a US permanent deployment would increase deterrence against Russian as well as an assessment of Russia’s possible response.
In addition, the report should consist of an “assessment of the international political considerations of permanently stationing such a brigade combat team in Poland, including within the North Atlantic Treaty Organization (NATO),” the NDAA said.
Notably, the United States will also accelerate its hypersonic missile defense program and provide a report within 90 days to congressional defense committees.
“Subject to the availability of appropriations, the Director of the Missile Defense Agency (MDA) shall accelerate the hypersonic missile defense program of the Missile Defense Agency,” the document said.
The NDAA requires head of the Missile Defense Agency to “deploy such program in conjunction with a persistent space-based missile defense sensor program.”
NDAA provides 90 days for Missile Defense Agency to submit a report on the hypersonic missile defense program to the US Senate and House of Representatives defense committees.
The report, which may include classified annex along with unclassified content, should provide an estimate of the cost, technical requirements and acquisition plan, the NDAA said.
Caspian Sea Convention Bans Military Presence of Non-Littoral States in Region
RT | August 12, 2018
Vladimir Putin attended the Caspian Sea summit in Kazakhstan which he said has “milestone” significance. There five littoral powers finally made a breakthrough on trade, security and environment following 20 years of talks.
This year’s meeting has been “an extraordinary, milestone event,” Russian President Vladimir Putin told his counterparts in Kazakhstan’s port city of Aktau, where the summit took place. Leaders of the Caspian Five came there to seal a convention on the legal status of the sea washing shores of Azerbaijan, Iran, Kazakhstan, Russia and Turkmenistan.
“It is crucial that the convention governs … maritime shipping and fishing, sets out military cooperation among [Caspian] nations and enshrines our states’ exclusive rights and responsibilities over the sea’s future,” Putin said. He added the landmark accord also limits military presence in the Caspian Sea to the five littoral countries.
From now on, no country from outside the region will be allowed to deploy troops or establish military bases on the Caspian shores. The five states themselves will also decide on how to deal with issues currently affecting the Caspian Sea region, such drugs and terrorism.
“Hotspots, including Middle East and Afghanistan, aren’t far away from the Caspian Sea,” the President stated. “Therefore, the very interests of our peoples require our close cooperation.”
The summit may give boost to digitalization of commerce, mutual trade and logistics, Putin suggested. “Transportation is one of key factors of sustainable growth and cooperation of our countries,” he argued. Additionally, the five states will establish the Caspian Economic Forum “to develop ties between our countries’ businesses,” Putin told.
The Caspian Sea is home to some 48 billion barrels of oil and 292 trillion cubic feet of natural gas in proven offshore reserves. A range of important pipelines are going through the Caspian Sea, connecting Central Asia and Caucasus with the Mediterranean.
Russia, China nearing alliance conditions
By M K Bhadrakumar | Indian Punchline | August 10, 2018
The Chinese Communist Party Politburo member Yang Jiechi is visiting Moscow on August 14-17 at the invitation of the secretary of the Russian national security council, Nikolai Patrushev to participate in the 14th round of Russian-Chinese consultations on strategic stability. The forthcoming event in Moscow will be closely watched since the two countries are fast nearing a situation of confronting a common ‘enemy’. This is a new experience for both since the halcyon days of the Sino-Soviet alliance in the 1950s.
The mainstream opinion has been that the Sino-Russian comprehensive partnership and cooperation is more the stuff of geopolitical signaling than a strategic alliance. The Western opinion has also been notably skeptical whether such partnership between Russia and China will be sustainable over time due to the growing asymmetry in the two countries’ comprehensive national power. Both premises may be getting outdated by the sheer force of developments.
Curiously, another body of opinion is steadily forming lately whether Russia and China could be actually on the verge of reaching alliance conditions in the rapidly changing global situation characterized by growing tensions in their respective relations with the United States. An essay in the Financial Times this week titled ‘China and Russia’s dangerous liaison’ authored by the daily’s Asia editor (who used to be the Beijing bureau chief previously), Jamil Anderlini, forcefully makes this point.
The writer argues that it is an intelligence blunder of historic proportions that the West is making by “dismissing the anti-western, anti-US alliance that is now forming between Moscow and Beijing.” Anderlini writes:
- This idea that Russia and China can never really be friends is just as wrong and dangerous as the cold war dogma that portrayed global communism as an unshakeable monolith… Their tightening embrace is as much about antipathy towards the US and the US-dominated global order as their rapidly growing common interests… Thanks to its continued rise and obvious ambition to supplant the US, China is a far bigger long-term challenge for America than Russia. No less a figure than Henry Kissinger – the architect of that reconciliation with China in 1972 – has reportedly counselled Donald Trump to pursue a “reverse Nixon-China strategy” by seeking to befriend Moscow and isolate Beijing.
However, the chances of a “reverse Nixon-China strategy” by the US are virtually zero. Even if President Trump is inclined in that direction, the ‘Deep State’ simply won’t allow him a free hand. It is after much effort that NATO has cast Russia in an ‘enemy’ image and anchored a whole new purposive agenda on that platform. Unshackling it can lead to the unraveling of the western alliance system itself. The New York Times today reported that the Washington establishment connived with the US’ NATO allies to present a fait accompli at the recent summit meeting of the alliance in Brussels.
In fact, the Trump administration has just announced plans to create a new Space Force as the sixth branch of its military to prepare for “the next battlefield” to counter Russia and China, which are “aggressively” working to develop anti-satellite capabilities. Announcing this at the Pentagon on August 9, US Vice-President Mike Pence said,
- China and Russia have been conducting highly sophisticated on-orbit activities that could enable them to maneuver their satellites into close proximity of ours, posing unprecedented new dangers to our space systems… We must have American dominance in space, and so we will.
President Trump promptly tweeted, “Space Force all the way!” And this comes soon after the announcement by Washington that it would impose extensive new sanctions against Moscow by August 22, including bans on a wide range of exports, by the end of the month as punishment for the alleged nerve agent attack on former Russian agent Sergei Skripal and his daughter Yulia in Britain in March. The State Department has further threatened another wave of sanctions in 3 months’ time, including a lowering of the diplomatic relations with Russia. Without doubt, within a month of the Helsinki summit, US-Russia relations are in free fall once again.
Moscow has strongly reacted. PM Dmitry Medvedev warned on Friday that tightening up of economic sanctions against Russia may be treated as a declaration of economic war, to which Russia will respond with all economic, political and other means possible.
Similarly, China and the US are embroiled in an escalating trade war. On Wednesday, Beijing unveiled a list of US$16 billion worth of American goods it plans to hit with tariffs. This is response to Washington’s announcement the previous day that it would impose 25 per cent tariffs on an equivalent value of Chinese exports. An editorial in the government-owned China Daily on Thursday flagged that “the possibility that the two countries are heading for a prolonged trade conflict has to be faced.”
Clearly, a closer coordination between Russia and China in a concerted strategy to push back at the US will be a key topic at the consultations in Moscow next week. The point is, the quasi-alliance between Russia and China cannot be belittled as ‘geopolitical signaling’ anymore. Just short of a formal military alliance, the two countries are intensifying their cooperation and coordination. In an unusual gesture, Moscow announced well in advance that President Vladimir Putin will be receiving Yang, signaling the high importance that the Kremlin attaches to the strategic consultations with China.
The bottom line is, despite the attempts by American analysts to create dissension in the Sino-Russian relations – by propagating that China poses demographic threat to the Russian Far East; that China is conspiring to militarily seize the Siberian Lebensraum; that China is overshadowing Russia in the Central Asian region, etc. –the attraction of China is only increasing in Moscow’s strategic calculus, thanks to China’s formidable economic firepower (with its nominal GDP set to overtake the Eurozone’s by the end of this year) and China’s rapidly developing technological sophistication.
Of course, Moscow realizes that no significant improvement in the Russian-American relations can be expected either so long as Trump remains in power. To be sure, new directions of Russia-China cooperation will be identified at the talks in Moscow. Read a commentary, here, by a leading Chinese pundit who envisions the Northern Sea Route (which is a key template of Moscow’s Arctic strategies) as an “important component” of China’s Belt and Road initiative, and could be considered as “part of an ambitious strategy to change China’s land and sea connections to Europe and the world.”
The knife in Iran’s back: Trump opens door to chaos
By Vijay Prashad | Asia Times | August 9, 2018
On Tuesday night, Iranian President Hassan Rouhani went on television to talk about the reinstatement of sanctions by the United States against his country. He prepared the country for more privations as a result of the sanctions. Responding to US President Donald Trump’s offer of a meeting, Rouhani said pointedly, “If you stab someone with a knife and then say you want to talk, the first thing you have to do is to remove the knife.”
It is clear to everyone outside the US government that Iran has honored its side of the 2015 nuclear deal that it made with the governments of the five permanent members of the United Nations Security Council (the US, the UK, France, China and Russia) as well as the European Union. In fact, quite starkly, EU foreign-policy chief Federica Mogherini said, “We are encouraging small and medium enterprises in particular to increase business with and in Iran as part of something that for us is a security priority.”
In other words, Mogherini is asking companies to resist Trump’s policy direction. What she is saying, and what Rouhani said, is that it is the United States that has violated the nuclear deal, and so no one needs to honor the US sanctions that have been reinstated.
Mogherini pointed to “small and medium enterprises” because these would not be the kind of multinational corporations with interests in the United States. But it is more than small and medium-sized enterprises that are going to challenge the US sanctions. China, Russia and Turkey have already indicated that they will not buckle under US pressure.
China
“China’s lawful rights should be protected,” said the Chinese government. China has no incentive to follow the new US position.
First, China imports about US$15 billion worth of oil from Iran each year and expects to increase its purchases next year. State energy companies such as China National Petroleum Corporation (CNPC) and Sinopec have invested billions of dollars in Iran.
CNPC and Sinopec also have shares in Iran’s major oil and gas fields – CNPC has a 30% stake in the South Pars gas field and has investments in the North Azadegan oilfield, while Sinopec has invested $2 billion in the Yadavan oilfield.
China’s Export-Import Bank, meanwhile, has financed many large projects in Iran, including the electrification of the Tehran-Mashhad railway. Other Chinese investment projects include the Tehran metro and the Tehran-Isfahan train. These projects are worth tens of billions of dollars.
Second, China is in the midst of a nasty trade war with the United States. In late August, Trump’s government slapped 25% tariffs on $16 billion worth of Chinese imports into the United States. China responded with its own tariffs, with its Commerce Ministry saying that the US was “once again putting domestic law over international law,” which is a “very unreasonable practice.”
The “once again” is important. China is seized by the unfairness of the reinstatement of sanctions on Iran, not only for its own economic reasons but also because it sees this as a violation of international agreements and a threat to Iranian sovereignty – two principles that China takes very seriously.
Sinopec, knee-deep in Iran’s oil sector, has now said that it would delay buying US oil for September. Iran has now been drawn into the US “trade war” (on which, read more here).
The Chinese have been quite strong in their position. The Global Times, a Chinese government paper, wrote in an editorial, “China is prepared for protracted war. In the future, the US economy will depend more on the Chinese market than the other way around.” This fortitude is going to spill over into China’s defense of Iran’s economy.
Russia
Russia and Iran do not share the kind of economic linkages that Iran has with China. After the 2015 sanctions deal, Iran did not turn to Russian oil and gas companies for investment. It went to France’s Total – which signed a $5 billion deal. Russia and Iran did sign various massive energy deals ($20 billion in 2014), but these did not seem to go anywhere.
Russia’s Gazprom and Lukoil have toyed with entry to Iran. In May, Lukoil directly said that it would be hesitant to enter Iran because of the proposed US reinstatement of sanctions. Lukoil’s hesitancy came alongside that of European companies such as Peugeot, Siemens and even Total, which decided to hold off on expansion or cut ties with Iran. Daimler has now officially halted any work in Iran.
It was a surprise this year when the Iranian Dana Energy company signed a deal with the Russian Zarubezhneft company to develop the Aban and West Paydar oilfields. The contract is for $740 million, which in the oil and gas business is significant but not eye-opening.
In July, senior Iranian politician Ali Akbar Velayati met with Russian President Vladimir Putin in Moscow. He left the meeting saying, “Russia is ready to invest $50 billion Iran’s oil and gas sectors.” Velayati specifically mentioned Rosneft and Gazprom as potential investors – “up to $10 billion,” he said.
When Putin was in Tehran last November, Russian companies signed preliminary deals worth $30 billion. Whether these deals will go forward is not clear. But after Trump’s reinstatement of sanctions, Russia’s Foreign Ministry said it would “take appropriate measures on a national level to protect trade and economic cooperation with Iran.” In other words, it would see that trade ties were not broken.
Turkey
Both Iran and Turkey face great economic challenges. Neither can afford to break ties. Turkish Foreign Minister Mevlut Cavusoglu has said that his government will only honor international agreements, and that the US reinstatement of sanctions is not part of an international framework. Turkey, therefore, will continue to trade with Iran.
Iranian oil and gas are crucial for Turkey, whose refineries are calibrated to Iran’s oil and would not be able to adjust easily and cheaply to imports from Saudi Arabia. Almost half of Turkey’s oil comes from Iran.
Turkish-US relations are at a low. Conflict over the detention of an American pastor, Andrew Brunson, has led to the US sanctioning two Turkish cabinet ministers, Justice Minister Abdulhamit Gul and Minister of Interior Suleyman Soylu. Gul is a leader of the ruling Justice and Development Party (AKP), while Soylu came to the party at the personal invitation of President Recep Tayyip Erdoğan. These are not men to be intimidated by US pressure.
A US mission led by Marshall Billingslea, assistant secretary of the US Treasury, went to Turkey to persuade the government to join the US sanctions. Meanwhile, the US has begun to put pressure on Turkey’s Halkbank, one of whose senior officials was found guilty of violation of the US sanctions on Iran by a court in the United States this year. This kind of pressure is not sitting well with the Turkish government.
Inside Iran
Pressure is mounting inside Iran. Protests have begun across the country, a reflection of the distress felt by the population as the country’s currency, the rial, slides and as fears of inflation mount.
Last week, the Iranian government fired the head of the central bank, Valiollah Seif, and replaced him with Abdolnasser Hemati. It reversed the foreign-exchange rules, including the failed attempt to fix the value of the rial that was put in place in April.
Hemati had been the head of Iran’s state insurance firm and before that of Sina Bank and Bank Melli. He is highly trusted by the government, which had already appointed him as ambassador to China before hastily rescinding that offer and moving him to the central bank. Whether Hemati will be able to balance the stress inside the Iranian economy is yet to be seen. Faith in the currency will need to be strengthened.
As part of that, Iran’s government has cracked down harshly against financial fraud, particularly scandals over foreign exchange. The man who signed the 2015 nuclear deal, Deputy Foreign Minister Abbas Araghchi, had to watch as his nephew Ahmad Araghchi, the central bank’s vice-governor in charge of foreign exchange, was arrested along with five other people as part of an inquiry over fraud. The message: No one, not even the Araghchi family, is immune from the long arm of the law.
Trump’s belligerence, the refusal of key countries to abide by Trump’s sanctions (including the European Union, but mainly Russia and China), as well as the internal pressure in Iran could very likely create the conditions for a military clash in the waters around Iran. This is a very dangerous situation. Sober minds need to push against the reinstatement of these sanctions – which the Iranians see as economic warfare – as well as escalation into military war.
This article was produced by Globetrotter, a project of the Independent Media Institute.
Peter Van Buren: Twitter Suspends Me Forever
By Peter Van Buren | We Meant Well | August 7, 2018
Some readers are aware I have been permanently suspended from Twitter as @wemeantwell.
This followed exchanges with several mainstream journalists over their support for America’s wars and unwillingness to challenge the lies of government. After two days of silence, Twitter sent me an auto-response saying what I wrote “harasses, intimidates, or uses fear to silence someone else’s voice.”
I don’t think I did any of that, and I wish you didn’t have to accept my word on it. I wish instead you could read what I wrote and decide for yourself. But Twitter won’t allow that. Twitter says you cannot read and make up your own mind. They have in fact eliminated all the things I have ever written there over seven years, disappeared me down the Memory Hole. That’s what censorship does; it takes the power to decide what is right and wrong away from you and gives it to someone else.
Hate what I write, hate me, block me, don’t buy my books, but please don’t celebrate handing over those choices to some company.
I lost my career at the State Department because I spoke out as a whistleblower against the Iraq War. I’ve now been silenced, again, for speaking, this time by a corporation. I am living in the America I always feared.
UPDATE: I’ve made a mistake. I was wrong to criticize the government, wrong to criticize journalists, wrong to oppose war. In fact, after much reflection, I have come to understand that I Love Big Brother.
