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Hungary to Ask Europe to Stop Escalation of Ukrainian Crisis, Foreign Minister Says

Samizdat – 30.08.2022

BUDAPEST – Hungarian Foreign Minister Peter Szijjarto stated on Tuesday that he will ask Europe to stop any actions that escalate the crisis in Ukraine.

“A the meeting of the EU foreign ministers today I will ask that we finally reject the proposals that entail the threat of further escalation… and that we focus on establishing peace in Europe,” Szijjarto said ahead of the informal ministerial meeting in Prague.

According to the minister, if there is no peace in Ukraine in the near future, the consequences of this conflict will be even more tragic, with more people becoming refugees, and Europe facing an unprecedented crisis. The question of Europe’s energy supply will become even more serious, Szijjarto said.

Earlier, Russia sent a note to NATO countries over arms supplies to Ukraine. Russian Foreign Minister Sergei Lavrov stressed that any cargo that contains weapons for Ukraine will become a legitimate target for Russia. The Russian Foreign Ministry said that NATO countries were “playing with fire” by supplying weapons to Ukraine. Russian presidential spokesman Dmitry Peskov noted that pumping Ukraine with weapons from the West does not contribute to the success of Russian-Ukrainian negotiations and will only have a negative effect.

August 30, 2022 Posted by | Militarism, Russophobia | , , | Leave a comment

A Death in Moscow

Was the car bomb intended to send a message or to escalate the conflict?

BY PHILIP GIRALDI • UNZ REVIEW • AUGUST 30, 2022

The horrific car bombing in Moscow that killed twenty-nine year old Darya Dugina last week raises many questions about the motives of the Ukrainian regime and its supporters that sent an assassin to murder a prominent Russian civilian who has no overt role in the government of Prime Minister Vladimir Putin. It should be assumed that the target of the attack was Darya’s father, the philosopher and sociologist Aleksandr Dugin, who has been predictably denigrated by western media outlets like the Washington Post, which refers to Dugin as “Putin’s brain” or “Putin’s Rasputin” while the New York Times lamely calls him a “Russian ultranationalist.”

Dugin, to be sure, is a powerful media figure well known in Europe who is a strong supporter of the Kremlin’s military initiative against Ukraine which is currently playing out. It appears that he has never even met Putin, which means that I have met Putin more than he has, let alone advised him, and he is generally viewed as a marginal figure in his own country. To be sure, he is known for his fiery rhetoric and hawkish anti-Western and anti-American stance, envisioning as he does Russia serving “as a serious bulwark against the ubiquitous spread of the Western liberal model on the planet.” President Vladimir Putin’s August 16th speech to foreign dignitaries at the Moscow Conference on International Security would seem to confirm that the Russian leader generally at least shares Dugin’s perspective. Putin said that “The situation in the world is changing dynamically and the outlines of a multipolar world order are taking shape. An increasing number of countries and peoples are choosing a path of free and sovereign development based on their own distinct identity, traditions and values.”

Dugin, like Putin, is a genuine conservative in cultural terms and would reasonably be described as a Russian nationalist, believing as he does that Russia and its traditional values should be cherished rather that cast away in pursuit of the currently fashionable globalism. He, also like Putin, is protective of the Russian Orthodox Church, which makes him an anachronism or worse from the viewpoint of the cancel culture currently rampaging in the west.

I had the privilege of participating in a conference in 2018 in the Iranian city of Mashhad with Dugin and got to know him somewhat. He is a distinguished intellectual, a prolific writer and speaker, and a true son of Holy Russia. That he looks backwards at Russian history to select the cultural trends and tendencies to inspire him should be a positive example of a possible course to pursue for the many conservatives worldwide who have been appalled at what is being done to western civilization at the hands of the wreckers who are now in control of so many nations.

The Russian Federal Security Service (FSB) has used surveillance camera footage and other resources to reconstruct what likely took place in the car bombing. First of all, the Dugins had no special security. Aleksandr Dugin led a life in the open, as did his daughter. They would both go to cultural and folk events and speak, often freely meeting with supporters, which is what they were doing on the day of the bombing as honored guests at a “Tradition” festival near Moscow. Aleksandr had no reason to believe that some government might seriously want to assassinate him, even though it is known that he was on the Ukrainian government’s notorious Myrotvorets Enemies of Ukraine “hit list” for alleged supporters of the Russian intervention, which even includes prominent antiwar “Pink Floyd” musician Roger Waters. The names on the list are blocked on the actual group website, but there are reportedly more than 200,000 entries on it, including many prominent Americans. Curiously, the Myrotvorets site has on the home page upper right-hand corner the addresses of the originators of the site, which are Langley Virginia, home of the CIA, and Warsaw Poland. Dugin was clearly wrong if he assumed the list was all just a bit of political theater.

According to the Russian police, a 42-year-old woman named Natalya Vovk, who also uses the surname Shaban, reportedly a member of the Ukrainian National Guard’s Azov Battalion, departed Ukraine on July 23rd in a vehicle with false Donbas plates, the region currently under Russian control. She drove into Russia together with her 12 year-old daughter Sophia Shaban as cover, changed the plates to those of Kremlin ally Kazakhstan, and then proceeded to rent an apartment in the building in Moscow where Darya lived. According to one report, Darya would often drive her father to meetings as he did not like to drive, but in this case, he switched to another car. Vovk, who may have had an accomplice who helped her obtain a fake Kazakh passport and may have aided in constructing the bomb, planted the device under the Dugin car and detonated it by remote control before fleeing to Estonia after again changing her car license plates to Ukrainian. It is to be presumed that Vovk was on a mission planned and authorized by Ukrainian intelligence (SBU).

No western government has denounced the assassination. The Ukrainian government has denied being behind the attack, though there have been reported celebrations in Kiev and elsewhere. Dugina was reportedly declared “liquidated” on the Myrotvorets site. The Washington Post has predictably editorialized its view that no one should believe anything that the Russians are reporting about the assassination, though one might more reasonably trust the Kremlin than the US Capital’s leading source of media disinformation. Likewise, the British media quickly jumped into the fray, suggesting that it was the Russians themselves, either a dissident group or agents sent by Putin, who did the foul deed. Even the Pope was on the receiving end after he described Darya Dugina as an “innocent victim.” Andrii Yurash, Ukraine’s ambassador to the Holy See, tweeted that the Pope’s words were “disappointing…how (is it) possible to mention one of ideologists of (Russian) imperialism as innocent victim? She was killed by Russians.” But, to be sure, unless additional information appears, there is nothing in the Russian government reconstruction of events that appears to be a fabrication as it is largely supported by surveillance camera video clips and photos of those involved.

There remain, however, two major questions that have not been answered or even addressed at this point. The first is motive and the second relates to which other countries might have been involved in the planning and execution of the bombing. And there is a back story that might contribute to a better understanding of what exactly took place and why. Dugin, for all his brilliant academic credentials and lack of any Russian government position, is regarded as actively hostile to the interests of the United States, possibly because of his support of the attack on Ukraine, and has been both sanctioned and become a person of interest for American law enforcement and intelligence agencies. Darya was also sanctioned.

By “person of interest” I mean that the national security agencies have applied their information collection resources to monitor where Dugin goes, whom he is in contact with, and to learn what are the various groups that he is involved with. That information would all by itself be suggestive in terms of the apparent plan to assassinate Dugin by car bomb, but it also fits in neatly with several other connections. First of all, the actual capabilities of the Ukrainian intelligence services are not clearly understood, but it is well known within the US intelligence community that the CIA, MI-6 and Mossad are all in Ukraine actively engaged in training and advising their local counterparts. The bombing in Moscow required considerable sophistication as it used prior intelligence, multiple license plates and presumably also identity documents when borders were crossed, something the Ukrainians acting alone might not have been able to accomplish.

So did the United States, Britain, and/or the Israelis know what their Ukrainian counterparts were planning? More than that, did they collude in the operation or provide intelligence that made it possible? NATO member Estonia’s apparent cooperation in aiding the exfiltration of Vovk rather suggests a broadly based intelligence operation. The Israelis in particular are adept at that type of cross border targeted assassination operation, having used similar tactics to kill Iranian scientists and technicians. And they might have also had a secondary motive in targeting Dugin over his criticisms of the Jewish role in the terror that followed the Bolshevik revolution as well as its enormous overrepresentation both in the current Russian oligarchy as well as in the new American and globalist elite. Interestingly, Putin has also angered the Israeli government by his criticism of the recent lethal attacks on the Palestinians and by his closure of the Jewish Agency for Israel which arranges the emigration of Jews from Russia to the Jewish state.

If foreign intelligence services were involved, that also would imply that the respective governments might have approved of the assassination attempt, which could suggest a motive beyond just warning Russia that its apologists could be killed even in Moscow at any time. Ukrainian President Volodymyr Zelensky has pressured his “allies” to get more involved in the fighting in his country, beyond the provision of billions of dollars and weapons. The killing of Dugin might have been seen as a possible provocative move to encourage Moscow to over-react in response, leading to still more western involvement, perhaps to include NATO and other allied troops appearing on the battlefields to confront Putin directly. To be sure, one is not encouraged by statements coming out of the mouths of western leaders and NATO revealing that the real objective of the fighting is to weaken Russia and possibly bring about regime change, which increases the likelihood that Moscow will take a hard line in its reaction. Nor was it exactly encouraging to hear a befuddled President Joe Biden’s calling Putin a “war criminal” and Moscow’s intervention a “genocide” while also committing the US to endure whatever it takes for as long as it takes to make sure that Ukraine “wins” the war, which is a virtual promise to escalate the conflict.

It is also ironic that the US Congress is toying with the idea of declaring Russia a “state sponsor of terrorism” when it is Washington-ally Ukraine that is in fact using terror. It might seem inconceivable that anyone would plot to assassinate a prominent Russian in order to further escalate a conflict that is already edging perilously close to a nuclear exchange, but there you have it. If Zelensky and his neocon advisers set the trap to deepen the involvement of Washington in their war, Biden should have recognized the folly and backed completely out of the conflict. But there is little chance of that, unfortunately. When it comes to Russia, the hawks are both bipartisan and firmly in control.

Philip M. Giraldi, Ph.D., is Executive Director of the Council for the National Interest, a 501(c)3 tax deductible educational foundation (Federal ID Number #52-1739023) that seeks a more interests-based U.S. foreign policy in the Middle East. Website is councilforthenationalinterest.org, address is P.O. Box 2157, Purcellville VA 20134 and its email is inform@cnionline.org.

August 30, 2022 Posted by | Mainstream Media, Warmongering, Russophobia, War Crimes | , | Leave a comment

Europeans Paying for Brussels’ ‘Irrational and Absurd’ Energy Policy While US Profits: Kremlin

By Ilya Tsukanov – Samizdat– 30.08.2022

The European Union and individual bloc members have taken a series of measures in recent months to reduce reliance on Russian oil, gas and coal. These efforts sent energy prices skyrocketing, and are threatening to plunge the bloc into a cold winter. Russian President Vladimir Putin has characterized European policymakers’ actions as “suicidal.”

Ordinary Europeans are being made to pay for their leaders’ “irrational” policies in relation to Russia, while Brussels’ American allies get rich from an energy bonanza, presidential spokesman Dmitry Peskov has said.

“Step by step, unfortunately, both Brussels and individual European countries are demonstrating their absolute lack of reason,” Peskov told reporters on Tuesday.

“This is demonstrated in such anti-Russian impulses, outbursts of hatred for our country, through absolutely irrational and even absurd actions in the the energy field, for which the publics of European countries – the EU, Britain and so on, have to pay, but which make it possible for American companies to turn a profit, for example,” Peskov said.

Asked to comment on Brussels’ potential discussions of banning tourist visas for Russians, the Kremlin spokesman suggested that the possibility of even discussing such ideas at the EU level demonstrates the “set of irrational bordering on insanity” prevalent among the bloc’s political elites.

The United States and the European Union dramatically reduced purchases of Russian coal, oil and gas in the spring after Moscow launched a special operation to “demilitarize” Ukraine amid fears of an imminent push by Kiev to crush the fledgling Donbass republics. The measures have since been complemented by additional restrictions, including sanctions targeting equipment used by the Nord Stream 1 pipeline, and the closing down of overland pipelines running through Poland and Ukraine delivering energy to Europe. The Nord Stream 2 pipeline, which was completed late last year and prepared for operation, remains dormant.

The deficit in Russian energy has resulted in a dramatic spike in prices, with European consumers forced to pay through the nose for utilities, while countries scramble to find alternative sources to fill up underground gas reserves to prepare for winter.

President Putin has characterized Brussels’ policies as “suicidal,” saying the self-imposed energy crisis will undermine the EU’s competitiveness vis-a-vis the United States and China.

August 30, 2022 Posted by | Economics, Russophobia | , , | Leave a comment

Germany and France want Tiktokers deployed against Russia – Bloomberg

Samizdat – August 30, 2022

TikTokers and YouTubers could help the EU drive a wedge between the Russian government and the people, Germany and France have reportedly told other members of the bloc.

Ideas on how its members could influence Russian citizens were formulated in a document circulated ahead of this week’s high-level EU meeting in Prague, Bloomberg reported on Monday. The plan is meant for discussion behind closed doors, but the news agency said it had studied the document.

Berlin and Paris suggested enrolling popular video bloggers on platforms including YouTube, Facebook, TikTok, Telegram, and VK to help disseminate EU-funded teaching courses on “media literacy,” according to Bloomberg. The courses will supposedly explain to Russians why they should dismiss “Russian propaganda” and trust “independent information” that counters what the Russian government says.

The EU should also target Russian-speaking minorities in other nations with content that serves the same goal, the report says. There is also a proposal for an “Internet Censorship Circumvention Hub” for Russians.

After Russia attacked Ukraine in late February, the EU significantly ramped up its efforts to silence Russian media within the bloc. Government-funded outlets RT and Sputnik were banned from broadcasting, while US-based tech giants such as Facebook stopped showing content from the news organizations on their platforms to EU residents. Brussels justified the censorship by the need to counter ‘Russian propaganda’.

Moscow also imposed restrictions on media, blacklisting some Western outlets in retaliation and introduced punishment for slander against Russia’s armed forces.

August 30, 2022 Posted by | Full Spectrum Dominance, Russophobia | , , , , , | Leave a comment

Johnson Predicts Harsh Months for UK Due to ‘Eye-Watering’ Energy Bills

Samizdat – 28.08.2022

Outgoing UK Prime Minister Boris Johnson said in an op-ed that a few coming months will be tough for the British due to high energy prices.

“The months ahead are going to be tough, perhaps very tough,” Johnson wrote in an article, published by Daily Mail newspaper on Saturday. “Our energy bills are going to be eye-watering,” he said, adding “for many of us, the cost of heating our homes is already frightening.”

According to Johnson, the beginning of Russia’s special operation in Ukraine significantly affected the energy markets. However, he claims that the UK will emerge from the crisis stronger and more prosperous.

The UK prime minister said, referring to the confrontation with Russia, that “in this brutal arm-wrestle, the Ukrainian people can and will win. And so will Britain.”

The outgoing prime minister promised that whoever will be his successor, they will announce new measures of financial support for fellow citizens to tackle surging electricity prices.

On Friday, the UK energy regulator Ofgem announced an 80% increase in the energy price cap to 3,549 pounds ($4,194) per year starting October 1 due to rising global energy prices. Since its last revision in April, the energy price cap has stood at 1,971 pounds. In October 2021, the price cap was 1,277 pounds.

Ofgem chief executive Jonathan Brearley warned that energy prices are likely to continue to rise, and called on the country’s future prime minister to take new measures to tackle the problem.

August 28, 2022 Posted by | Economics, Malthusian Ideology, Phony Scarcity, Russophobia | | Leave a comment

Hungary Says There Are EU Countries That Silently Oppose Anti-Russian Sanctions

Samizdat – 28.08.2022

Hungarian Minister of Foreign Affairs and Trade Peter Szijjarto has stated that Budapest is not alone in its reluctance to slap sanctions on Russian energy exporters, but that other countries, who are under the influence of the “liberal mainstream,” don’t dare to pursue policies based on their own interests.

Speaking at the TRANZIT public forum in Tihany, Hungary on Saturday, Szijjarto said that he would like to clarify that his country is “not even willing to negotiate any further sanctions” pertaining to the oil and gas sector.

“And I want to say that we are not alone in this,” the top Hungarian diplomat stressed, recalling an episode during a recent EU ministerial meeting, which focused on “the issue of limiting oil from Russia.”

According to Szijjarto, during the gathering, “several colleagues” approached him and said, “Peter, you are against it [sanctions on Russian oil exports], right? We are with you.”

“Those who tell the truth are under such amazing pressure from the liberal mainstream that if there is no political stability of a certain level and, as a result, political courage in the country, they simply do not dare to act in their own interests,” the Hungarian foreign minister pointed out.

During the speech, Szijjarto also gave his thoughts on how long Europe will hinge on Russian oil and gas. He argued that “as long as gas cannot be transported by train or in a backpack, Europe will not be able to get rid of dependence on Russian energy resources.”

Last month, Hungarian Prime Minister Viktor Orban insisted that while the sanctions had failed to destabilize Moscow, “Europe is in trouble, economically and politically, and four governments have become victims: UK, Bulgarian, Italian and Estonian.”

“People will face a sharp increase in prices. And the better part of the world deliberately did not support us as well — China, India, Brazil, South Africa, the Arab world, Africa — everybody is aloof from this [Ukraine] conflict, they are interested in their own affairs,” Orban added.

Also in July, Russian President Vladimir Putin admitted that sanctions damage the country’s economy and many risks still remain, but that these restrictive measures inflict more damage on those who imposed them.

Sanctions against Russia were slapped by the US and its allies in late February, shortly after Moscow launched its special operation to demilitarize and de-Nazify Ukraine. In the wake of the West’s anti-Russian restrictive measures, inflation skyrocketed in many Western countries, driving energy prices there to record numbers.

August 28, 2022 Posted by | Economics, Malthusian Ideology, Phony Scarcity, Russophobia | , , | Leave a comment

US wants India to imitate Europe’s self-sabotaging energy policy

India continues long and fruitful relationship with Russia despite Western pressure

By Ahmed Adel | August 26, 2022

Indian Foreign Minister S Jaishankar confidently boasted recently that the world has accepted India’s energy policy and bilateral relations with Russia. Jaishankar’s statement prompted US State Department spokesperson Ned Price to say that it is going to be a long-term proposition for New Delhi to reorient foreign policy away from Moscow – but despite the QUAD alliance, India is unlikely to abandon its relations with Russia.

When asked about India increasing its imports of Russian oil and fertilisers and potentially buying the Russian S-400 air defence systems, Price said on August 24: “It is not for me to speak about another country’s foreign policy. But what I can do is point out what we have heard from India. We have seen countries around the world speak clearly, including with their votes in the UN General Assembly against Russia’s aggression in Ukraine.”

“But we also recognise, as I was saying just a moment ago, that this is not flipping a light switch. This is something that, especially for countries that have historical relationships with Russia. Relationships that, as is the case with India, extend back decades, it is going to be a long-term proposition to re-orient foreign policy away from Russia,” he added.

Although the US and European Union have imposed heavy sanctions on Russia since the military operation in Ukraine began on February 24, India took the opportunity to instead raise oil imports from Russia, ignoring criticism from the West and refusing to go down the path of European self-sabotage.

Berlin recently approved a set of energy-saving measures for the winter which will limit the use of lighting and heating. Germany’s Economy Minister Robert Habeck told reporters that his country wanted to free itself “as quickly as possible from the grip of Russian energy imports.” Instead, Germany finds itself in a position of needing to lower energy use instead of behaving as the EU’s leading country.

Starting from September, public buildings, apart from hospitals and the like, will have heating at a maximum of 19C; public monuments and buildings will also not be lit up for aesthetic reasons; businesses could be banned from keeping their shops illuminated at night; private swimming pool heating could also be banned; and, coal and oil cargo will be given priority over passenger travel on railways.

“We have a shortage situation on the rails right now,” German Transport Minister Volker Wissing said. “That means that if additional fuel transports are temporarily necessary, we would have to prioritize them.”

This European self-sabotage, all for the sake of pretending to defend liberalism in the form of Kiev’s authoritarian regime and on instructions from Washington, is a situation that India wants to completely avoid as it continues to progress and develop into a major power.

In May, Russia overtook Saudi Arabia to become India’s second-biggest supplier of oil, behind Iraq, as refiners snapped up Russian crude available at major discounts. Indian refiners bought about 25 million barrels of Russian oil in May, ignoring all condemnation from the West and refusing to abandon its decades-old relationship with Moscow, especially as Indians do not forget the West’s endless support and backing of Pakistan.

Jaishankar stressed on August 23 that India had not been defensive about its purchases of Russian oil but made the US and others realize instead that the government had the “moral duty” to ensure that the people got the “best deal” – something that European governments do not concern themselves with.

Rather than capitulating to the endless pressures from the West, India has unapologetically steamed ahead with its bilateral relations with Russia. Cards based on Russia’s Mir payment system will soon be accepted at ATMs and Point-of-Sale terminals in India as discussions to construct a new financial system independent of the West, that can bypass sanctions on Russia, continue. 

Russia also announced its intentions to build the next generation armoured vehicles and submarines in joint collaboration with India. This comes as the delivery of the second regiment of the S-400 missile defence system is already underway.

With India pushing ahead in strengthening relations with Russia in the energy, financial and military sector, the West is forced to exaggerate minor events as if it were a major shift in New Delhi’s foreign policy. Western media exaggerated the significance of India voting for the first time against Russia during a “procedural vote” at the United Nations Security Council on Ukraine. The 15-member UN body invited Ukrainian President Volodymyr Zelensky to address a meeting through a video tele-conference on August 24, something that was only opposed by Moscow and abstained by Beijing.

So far, New Delhi has abstained at the UNSC on Ukraine, with the recent vote being the only exception. This has annoyed the Western powers, led by the US, but this has not stopped them from making a big deal out of India voting to allow Zelensky to speak at the UNSC meeting. This of course does not reflect or signify any Indian foreign policy shift, but is rather a desperate attempt to portray non-existent cracks in New Delhi-Moscow ties. Instead, New Delhi will continue its decades-long cooperation with Moscow, one that has been long and fruitful. 

It is recalled that Jaishankar said in June that “Europe has to grow out of the mindset that Europe’s problems are the world’s problems, but the world’s problems are not Europe’s problems.” Soon Europe will realize, especially Germany, that its energy and financial crisis, spurred on by an ill-thought out Russophobic policy, will certainly not be India’s problem, especially with winter just around the corner.

Ahmed Adel is a Cairo-based geopolitics and political economy researcher.

August 26, 2022 Posted by | Economics, Malthusian Ideology, Phony Scarcity, Russophobia | | Leave a comment

Siemens Energy Has Trouble Selling Off Turbine Business in Russia

Samizdat – 26.08.2022

MOSCOW – Siemens Energy might not be able to sell its turbine business to Russian company Inter RAO as its local subsidiaries, Siemens Gas Turbine Technologies (SGTT) and Siemens Energetika, fall under a recent law banning sale of shares to investors from unfriendly countries, newspaper Kommersant reported Friday, citing sources.

Siemens Energy’s two subsidiaries in Russia were put on the ban list tentatively, according to the report.

Negotiations between Siemens and Inter RAO were conducted even before the publication of the decree, and the parties were planning to sign an agreement in the coming weeks, according to the newspaper. Although Inter RAO has already submitted a request to the government to exclude SGTT from the list of companies subject to the ban, there is a possibility that the deal will be frozen.

Siemens Energy announced in its third quarter financial report on August 8 that it had started the restructuring of its business activities in Russia, which are expected to be completed by the end of 2022. In the third quarter, Siemens’ losses from the gas and electricity segment amounted to 200 million euros ($199.5 million).

Russian President Vladimir Putin signed a decree on August 5 that specifically bans the sale of foreign shares in strategic Russian companies, primarily in the energy sector, unless authorized by the Russian government.

SGTT is a joint venture between Siemens AG which owns 65% and Russian energy equipment manufacturer Power Machines that owns 35%. SGTT produces, sells and does maintenance service of gas turbines with a capacity above 60 megawatt for the Russian and CIS markets. According to the company, the localization level of the 2000E gas turbine, one of the most popular in the Russian market, reaches 52%.

August 26, 2022 Posted by | Economics, Russophobia | | Leave a comment

Sanctions against Russia damage Western business

By Lucas Leiroz | August 26, 2022

The West itself appears to be the party most harmed by the sanctions it has chosen to impose against Russia. As well known, the US, UK and EU are facing a wave of inflation with all-time highs. And in the same sense, the business world is collapsing in Western countries. The business losses with the end of participation of some Western companies in the Russian market are extremely significant and are causing serious problems for the economy of many countries, with losses accumulating exorbitant amounts.

It is estimated that American, European, British, and Japanese companies have already lost more than 70 billion dollars since February. The losses are a consequence of the packages of sanctions imposed by Western countries on Moscow in response to the start of the special military operation in Ukraine. Many corporations withdrew from Russia or had their activities frozen, losing insertion in the powerful market of consumption, work and raw materials offered by Russia.

As expected, the most affected sector is the energy one, whose losses are estimated at almost 55 billion dollars, generating a series of problems for Western societies. Relations between Russia and Western Europe in the energy sector have always been a central strategic point in the international economic balance and now seem more threatened than ever. However, other sectors are also in similar situations. 

Agricultural commodity, food and tobacco markets achieved losses of almost 8 billion dollars. In the same sense, in the technology and IT sector, 5 billion dollars of losses have already been accumulated. And there is also the vital banking sector, whose side effects of anti-Russian financial coercive measures have already led to a loss of 3,7 billion dollars – most of this amount belonging to Société Générale, the only banking group to have left Russia completely so far.

With regard specifically to the energy sector, the European and British companies most affected were BP, Linde, Uniper and Total Energies, whose billions of dollars in assets were harmed as a result of the suspension of the Nord Stream 2 gas pipeline and other Russian-European projects of cooperation. The process of disintegration of the Russian and European energy markets will not be so easily completed, as it is necessary to reverse a scenario of decades of cooperation, which will undoubtedly take time. 

For example, BP, which announced its unconditional withdrawal from the Russian market in February, still remains one of Rosneft’s main partners, owning 19.75% of its shares. However, the process of disintegration has progressively advanced. BP itself revealed a loss of more than 25 billion dollars due to the freezing of its activities in Russia, pointing to a scenario that indicates a path towards the end of the cooperation in the near future.

American and Japanese energy companies are heading in the same direction. ExxonMobil, Mitsui & Co and Mitsubishi Corporation were some of the companies that had the most losses in recent months, mainly as a result of the effects that the coercive measures had on the Sakhalin-I and Sakhalin-II projects. Obviously, other energy companies were also affected by the packages of sanctions, albeit on a smaller scale, showing a scenario of generalized losses for this sector’s businesses.

For Russia, however, the deficits are much smaller and almost never imply real losses, but market restructurings. In energy, Russian oil and gas production remains strong and active, unaffected by the departure of some Western companies. The withdrawal of these companies makes room for other markets, such as the Chinese and Indian, which are the ones that have stood out in the search for Russian oil and gas in recent months. Meanwhile, Western companies lose important sources of supply that will not be easily resolved.

As for market sectors in which Russian consumption was of interest to Western companies, there are even fewer losses. The corporations that withdrew from Russia left their physical production structures there, which could be used by Moscow, generating employment for the Russian population, internal circulation of capital and economic progress. 

For example, McDonald’s lost more than one billion dollars with its adherence to anti-Russian measures, but its withdrawal from the local market made room for the nationalization of the company’s production structures, and a Russian national company was created to sell fast food for Russian citizens. The same is currently happening with other Western companies that have left the Russian market. In short, the West lost a rich consumer market and handed over to Moscow all the necessary means for Russians themselves to supply their population with such goods and services.

In practice, all these facts simply mean damage to Western business. Entrepreneurs do not appear to have been consulted by heads of state on whether or not sanctions were in their best interest. The measures were simply imposed unilaterally to meet NATO’s geopolitical plans, without considering the opinion of companies that generate jobs for Western citizens. Currently, there are still plans to completely ban the entry of Russian citizens into Europe, which according to estimates will generate losses of more than 20 billion euros, harming the entire European market.

In fact, western sanctions, if not reversed, will lead the world into a global recession in which the most affected will be the western countries themselves. To avoid this, the business sector must mobilize to demand an end to sanctions.

Lucas Leiroz is a researcher in Social Sciences at the Rural Federal University of Rio de Janeiro; geopolitical consultant. 

August 26, 2022 Posted by | Civil Liberties, Economics, Malthusian Ideology, Phony Scarcity, Russophobia | , , | Leave a comment

Is Russia limiting gas flows to Europe?

Gas pipelines form Russia to Europe (Welt)
Swiss Policy Research | August 2022

Is Russia limiting gas flows to Europe? The surprising answer is: no.

Many people in Europe and the US seem to believe that Russia, in response to Western sanctions, has been limiting gas flows to Europe. Yet this is not the case.

There are currently five major pipelines that supply – or could supply – Russian gas to Europe: Nord Stream I and Nord Stream II through the Baltic Sea to Germany; the Jamal pipeline through Poland to Germany; the Soyuz and Brotherhood pipelines through Ukraine; and the TurkStream pipeline through the Black Sea and Turkey to Southeast and Central Europe (see the map above).

All of these pipelines are currently out of service or run at limited capacity, though not because of Russian retaliation, but because of Western sanctions or political decisions:

  • The Jamal pipeline is closed because Poland has terminated the operational agreement with Russia (after the Russian invasion of Ukraine and to become independent of Russian gas).
  • The Soyuz pipeline – which accounts for about one third of the gas delivered through Ukraine – has been closed by Ukraine after LPR forces took control of the gas compressor station.
  • Nord Stream I runs at limited capacity because Canadian and EU sanctions have prevented the repair and return of a Siemens gas compressor turbine.
  • Nord Stream II was completed in late 2021 but has never entered service due to US political pressure on Germany; Germany canceled certification of the pipeline on February 22.
  • TurkStream – which in 2014 replaced the South Stream project – remains operational, but because of EU sanctions, Bulgaria has denied euro payment to the Russian Gazprom Bank. In contrast, Hungary has defied EU sanctions and continues to receive gas through TurkStream.

There is also a widespread misconception that Russia demanded “payment in rubles” to retaliate against Western sanctions. Yet this is not the case, either. Instead, after Western sanctions against the Russian central bank froze about $300 billion in Russian foreign exchange reserves, Russia decided that euro and dollar payments for gas have to be made to an account at Russian Gazprom Bank and will then be converted into rubles by the Russian central bank (to avoid seizure by the US/EU).

Why is Russia not (yet) actively limiting or stopping gas flows to Europe? Simply because Russia is interested in earning revenue from gas exports, being seen as a reliable supplier, and avoiding further escalation of the Ukraine conflict and direct confrontation with NATO countries. However, Russia did put pressure on Kazakhstan to prevent Kazakh oil exports via Turkey instead of Russia.

Why then is Europe jeopardizing its own gas supply through sanctions against Russia? The initial goal likely was to cripple Russian export revenues and the Russian economy. Yet this has largely failed as international oil and gas prices have risen to record highs. Thus, Russian oil and gas revenue has actually increased since the outbreak of the Ukraine war (though tech sanctions are still biting).

However, the Western response can only really be understood from a US perspective, not from a European perspective. From a US perspective, cutting off Russian gas flows to Europe is a means to isolating Russia, pressuring Europe into supporting the US proxy war in Ukraine, and forcing Europe to switch to American or Arab LNG gas supplies. The most obvious example of this strategy is the Nord Stream II pipeline, which the US blocked despite a German-Russian agreement.

More broadly, the US role in Ukraine is to be seen in the context of the US strategy in Eurasia. Back in June, former US Secretary of State and former CIA director, Mike Pompeo, explained in a speech at the Hudson Institute: “By aiding Ukraine, we undermined the creation of a Russian-Chinese axis bent on exerting military and economic hegemony in Europe, in Asia and in the Middle East. This would further devastate the lives of Americans and our economy here at home. () We must prevent the formation of a Pan-Eurasian colossus incorporating Russia, but led by China.”

In spite of reduced Russian gas flows, most European countries – including Germany – will still reach their gas storage target levels for the winter season, though at significantly higher market prices. This has already led to some bizarre situations, such as Germany’s largest fertilizer producer having to halt production, while fertilizer shortfalls are being replaced by imports from Russia, which have been exempted from sanctions.

August 24, 2022 Posted by | Russophobia | , , , | Leave a comment

Austria: FPÖ demands speedy referendum on sanctions

Free West Media | August 21, 2022

VIENNA – Current surveys suggest that the majority of Austrians are fed up with the ineffective sanctions and would rather overturn them today than tomorrow. But the people’s call for help is ignored by the aloof political elite. “Great Reset” Minister Karoline Edtstadler declared that there was “no alternative” to sanctions, while the ruling ÖVP negates reality and considers sanctions to be “effective”.

The leaders of the Greens and NEOS denounce critics as uncritical of president Putin or “traitors” or “useful idiots” of the Kremlin. Some even consider the majority of citizens to be “Russian collaborators”.

FPÖ leader Herbert Kickl said that in terms of ending sanctions,  time was of the essence: “We have no time to lose. The heating season is fast approaching.” A referendum on anti-Russian sanctions, which the Austrian leaders are currently supporting to the country’s detriment, was needed as soon as possible, he added.

Instead of lifting sanctions, the government has so far relied on absurd energy saving tips for people.

According to Kickl: “These sanctions have no effect on the war, but they fuel inflation and hurt the local economy.” The situation reminded him of the Corona crisis: “Here, too, the government talked people into things that weren’t right for two years before they finally switched to the FPÖ line of reasoning.” Recently, not least because of the resistance of people on the streets, the government has had to recognize reality and stop the harassing compulsory jabbing and the absurd quarantine rules.”

But “in the case of sanctions, we no longer have two years, but a maximum of two months,” Kickl said. “If sanctions, which amount to a gunshot in the knee, are not ended, then the coming winter threatens to be very uncomfortable for many people.” The proposed referendum is also intended to give the “reasonable forces within the ÖVP” the chance to show their colours and act for the benefit of the people.

August 21, 2022 Posted by | Civil Liberties, Economics, Russophobia | , | Leave a comment

Venezuela Stops Oil Shipments To Europe As Alternatives To Russian Energy Dry Up

Tyler Durden | Zero Hedge | August 19, 2022

The writing is on the wall for Europe in terms of this coming winter – It’s going to get ugly. With natural gas imports from Russia cut by 80% through Nord Stream 1 along with the majority of oil shipments, the EU is going to be scrambling for whatever fuel sources they can find to supply electricity and heating through the coming winter. Two sources that were originally suggested as alternatives were Iran and Venezuela.

Increased Iranian oil and gas exports to the west are highly dependent on the tentative nuclear deal, but as Goldman Sachs recently suggested, such a deal is unlikely anytime soon as deadlines on proposals have not been met and the Israeli government calls for negotiators to ‘walk away.’

Venezuela had restarted shipments to Europe after 2 years of US sanctions under a deal that allows them to trade oil for debt relief. However, the country’s government has now suspended those shipments, saying it is no longer interested in oil-for-debt deals and instead wants refined fuels from Italian and Spanish producers in exchange for crude.

This might seem like a backwards exchange but Venezuela’s own refineries are struggling to remain in operation because of lack of investment and lack of repairs. Refined fuels would help them to get back on their feet in terms of energy and industry. Some of Venezuela’s own heavy oil operations require imported diluents in order to continue. The EU says it currently has no plans to lift restrictions on the oil-for-debt arrangement, which means Europe has now lost yet another energy source.

Sanctions on Venezuela along with declining investments have strangled their oil industry, with overall production dropping by 38% this July compared to a year ago. Joe Biden’s initial moves to reopen talks with Maduro triggered inflated hopes that Venezuelan oil would flow once again and offset tight global markets and rising prices. Europe in particular will soon be desperate for energy alternatives, which will probably result in a scouring of markets this autumn to meet bare minimum requirements for heating.

If this occurs and no regular sources of energy can be found to fill the void left by Russian sanctions, prices will rise precipitously in the EU. Not only that, but with European countries buying up energy supplies wherever they can find them, available sources will also shrink for every other nation including the US. Get ready for oil and energy prices to spike once again as winter’s chill returns.

August 19, 2022 Posted by | Economics, Russophobia | , | Leave a comment

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