Italy Ramps Up Weapons Supplies to Saudi Arabia in Spite of EU Calls for Embargo
Sputnik – September 16, 2017
European countries such as Italy continue to increase arms exports to Saudi Arabia in spite of European Parliament resolutions calling for an embargo on sales to Riyadh in light of violations of human rights and international law in Yemen.
A recent European Parliament resolution which calls for an arms embargo against Saudi Arabia is no deterrent to Italy, which continues to increase its arms sales to the Middle East despite concerns that the flow of weapons is contributing to instability there.
Enrico Piovesana, an Italian journalist and director of the Center for Monitoring of Arms Expenditures (MILEX), told Sputnik Italia that Italy’s exports have risen dramatically.
“According to the most recent data, for 2016, income from arms exports doubled in comparison with the previous year, from €7.9 billion ($9.4 billion) to €14.16 billion. This figure is even more impressive if we compare it with data for 2014: €2.6 billion.”
“This is significant growth, and the Italian foreign ministry considers it a triumph: in its last report, it said that this sector has finally emerged from the [economic] crisis thanks to the flexibility of its supply.”
According to the Stockholm International Peace Research Institute (SIPRI), Italy was the world’s eighth largest arms exporter in 2016.
Italy is also third on the global ranking of arms exporters by number of countries to which it exports, Piovesana said.
“Saudi Arabia is the sixth largest client for Italian weapons producers,” he explained.
The non-binding resolution passed by the European Parliament on Wednesday is the third call in two years by EU parliamentarians to enforce EU Council rules on the arms export control and impose an embargo on exports to Saudi Arabia.
On September 5, the UN Human Rights Office issued a report recording violations and abuses of human rights and international humanitarian law which occurred in the two-and-a-half years since Saudi Arabia and its coalition partners launched a bombing campaign in Yemen to overthrow the Houthi rebels who ousted former President Abdrabbuh Mansour Hadi.
Between March 2015 and 30 August 2017, at least 5,144 civilians have been documented as killed and more than 8,749 injured, according to the UN figures. Some 3,233 of the civilians killed were reportedly killed by Coalition forces, whose airstrikes continued to be the leading cause of civilian casualties.
Giorgio Beretta, an analyst from the Union of Italian Disarmament Associations, told Sputnik that Italian-made bombs are known to have been used in airstrikes on civilians.
“The UN report talks about documentation confirming the use of Italian bombs in civilian areas in Yemen. These are bombs manufactured by the Italian company RWM, which were produced and exported with the permission of the Italian government. Both the Gentiloni government and the previous Renzi government gave permission for the export of these bombs.”
“Some EU countries, such as Sweden and the Netherlands, have suspended the supply of military equipment to Saudi Arabia. Other countries, such as Germany, decided to suspend the supply of weapons that could be used by Saudi Arabia in the conflict with Yemen. The UK, France and Italy continue to deliver supplies. In 2016, Italy delivered nearly 20,000 aerial bombs worth more than €411 million, which is the country’s largest supply of bombs since the end of World War II. It is absolutely clear that this is a political decision,” Beretta said.
Saudi Arabia has become the world’s second largest arms importer after India, with an 8.2% share in the market. While Italy has increased its supplies, they are still dwarfed by the US, which exports 52% of Riyadh’s imports, and the UK, which exports 27%, according to the SIPRI.
“It should be noted that that Italy is not the largest supplier to Riyadh. Trump signed a contract to sell $110 billion million of weapons to the Saudis. But nevertheless, supplies from the EU are important since there are European components in many military systems that Saudi Arabia buys.”
Beretta said that the European Parliament’s resolution and the EU Council’s Common Policy on arms exports are rather toothless in the face of lobbying from arms producers.
“International norms, as well as EU norms, don’t provide for sanctions for those who violate the International Arms Trade Treaty, as well as for those who contradict EU position. This is a big mistake, but it’s not surprising [because] these same countries exerted strong pressure to prevent the introduction of sanctions measures. At the international level, the only competent authority that can actually impose or remove sanctions is the UN Security Council. At the EU level, this is the EU Council.”
“However, there is another way: in the case of Riyadh, if one of the member countries violates the embargo, another country may legally refuse to sell arms to them. For example, if the UK violates this possible embargo, Italy could stop supplying arms to London. It can break the vicious circle. But let’s not forget that lobbyists and large arms corporations will exert pressure and try to prevent sanctions measures for violators of the embargo,” Beretta warned.
Anti-Russian sanctions cost Europe $100bn – UN Special Rapporteur
RT | September 13, 2017
Over the last three years, the European Union has been losing at least $3.2 billion every month due to the anti-Russian penalties, according to a report by a UN Special Rapporteur Idriss Jazairy.
“The most credible approximation is of $3.2 billion a month,” says the report on the negative impact of the unilateral coercive measures, as quoted by Sputnik.
Jazairy stressed that Russia had sustained a direct loss of nearly $15 billion a year or a total of $55 billion so far.
“The resulting overall income loss of $155 billion is shared by source and target countries,” he added.
EU sanctions against Russia were introduced in 2014 over the country’s alleged involvement in the conflict in eastern Ukraine and Crimea. The penalties targeted Russia’s financial, energy, and defense sectors, along with some government officials, businessmen, and public figures.
Moscow responded by imposing an embargo on agricultural produce, food and raw materials on countries that joined the anti-Russian sanctions. Since then the sides have repeatedly broadened and extended the restrictive measures.
Russia is the EU’s fourth-largest trading partner after the US, China and Switzerland. The country is also Europe’s biggest natural gas supplier, as well as one of its biggest oil suppliers.
The penalties have been severely criticized by European politicians and businessmen as both politically ineffective and economically harmful for both Russia and Europe.
Sweden: Giving Up Neutrality Against People’s Will
By Peter KORZUN | Strategic Culture Foundation | 13.09.2017
Sweden, a non-NATO nation, has launched its largest military exercise in over 20 years. The drills are being conducted at Russia’s doorstep amid rising military activity in the Baltic Sea region. The timing (Sept. 11-29) is outright provocative as Aurora 2017 is taking place at about the same time (Sept. 14-20) as Zapad 2017, a major Russian exercise in Belarus.
The three-week Aurora 17 is held across Sweden, including the strategic Baltic Sea island of Gotland, not far from the Russian exclave of Kaliningrad, and the areas around Stockholm and Goteborg. It is conducted in the air, on land and at sea. About 20,000 servicemen, and over 40 Swedish civil authorities, will take part in the drills across the country, including around 1435 troops from the US, Denmark, Norway, France, Estonia, Lithuania and non-NATO Finland. It strikes the eye that Finland, a non-NATO state, has significantly larger participation (270 servicemen) than other European NATO members. For instance, France sent 120 soldiers Denmark, Norway, Lithuania and Estonia sent between 40-60 each.
«They haven’t done something like this in 25, 30 years», said Ben Hodges, commanding general, United States Army, Europe. The United States has sent a Patriot missile battery, helicopters and a National Guard tank company. This is the first time ever American armored vehicles and air defenses were deployed on Swedish soil. In June, the Swedish military also announced its intention to replace all of its aging air defense systems and potentially buy US-made Patriot missiles, citing an alleged threat from Russian Iskander-M missile systems stationed in Kaliningrad.
The war games have also raised the possibility of Sweden joining NATO to formally end its traditional neutrality that kept it out of military conflicts since 1814. The issue will be debated in the country’s 2018 election – if the three centre-right allies get their way, the country will join the alliance.
Sweden has been a member of the NATO program «Partnership for Peace» since 1994. It has taken part in NATO missions in Afghanistan, Balkans and Libya.
Since 2009, Sweden has been committed to the defense of EU members – another breach of neutrality. Mainly EU members are also parties to NATO, it’s impossible to separate them in war. In fact, Stockholm has committed itself to comply with Article 5 of the Washington Treaty regarding European members of the North Atlantic Alliance. Swedish troops and equipment have been used in the EU operation in Mali.
In May 2016 the Swedish parliament ratified the Host Nation Support Agreement with NATO, allowing the pact to store equipment in Sweden and be able to use the country for transport and transit of forces if a crisis should occur in the region. The agreement does not mention nuclear weapons. With the document in force, there is no guarantee that nuclear weapons will not be deployed on Swedish soil. Aurora 2017 is the first time the Host Country Agreement has been used.
In June 2016, Sweden signed a treaty with the US that aims to increase military capability and interoperability between the parties. Specifically, the two nations will conduct training and exercises with an eye to the «distinct political signal» that combined operations will send. Armament cooperation and research and development of future technologies will focus on undersea warfare and air defense, the document notes.
In late 2016, Sweden’s civil protection agency organized under the Ministry of Defense issued an official letter to country’s local authorities to prepare for a possible war with Russia. Sweden is increasing defence spending, and plans to reintroduce conscription from January 2018. Four thousand men and women will be drafted into the defense forces.
Though not formally a member, Sweden is also a part of NATO Rapid Reaction Force. It participates in the joint NATO air transport fleet to be used in conflicts anywhere in the world.
Two top defense officials – Micael Bydén, Supreme Commander of the Swedish Armed Forces, and Chief of Defence Staff Dennis Gyllensporre, have recently supported the idea of changing the military stance to ‘treaty-bound’ defense commitments, in effect meaning full-fledged membership in NATO. They were backed by Allan Widman, Chairman of the Swedish parliament’s defense committee. Visiting Washington in May, Prime Minister Peter Hultqvist said: «We are building a security network of defence cooperation». No doubt that Aurora 2017 is part of this effort.
Seven out of eight Swedish parliamentary parties believe that Aurora 17 will strengthen the country’s capacity to deal with a potential attack and will deepen its military cooperation with other countries, while the Left Party and peace organizations have warned of a spiraling arms race.
Despite media efforts and statements by politicians and officials, the Swedish people oppose the idea of NATO membership. According to a June survey published by Svenska Dagbladet newspaper, public support for the idea of Sweden becoming a NATO member has dropped from 41 to 33 percent in less than a year. Forty-nine percent of Swedes, who took part in the survey published by the Svenska Dagbladet newspaper, said they don’t want their country to join the US-led military bloc. Thirty-three percent supported the possible NATO bid, while 18 percent said that they were undecided. In 2015, 41 percent said that they were in favor of Sweden applying for NATO membership, with 39 percent rejecting the move and 20 percent undecided. Social Democrats, the Greens and Left Party voters showed the strongest opposition to NATO accession.
Politicians may say one thing and do another but one cannot change reality. In practice, Sweden has become a full-fledged NATO member and it has been done against the people’s will. With the defense commitment within the framework of EU and the bilateral agreement with the United States mentioned above in the article, Sweden is no different from other states of the alliance. Moreover, it’s one of the most active participants in the bloc’s military activities with a contribution exceeding by far some founding members. It is Sweden, a non-NATO, country who organized Aurora 2017, openly challenging Russia, which will conduct Zapad exercise under surveillance of Western observers according to the provisions of Vienna Document. Despite the obvious facts, Sweden is saying it’s not a NATO event once it was organized by a non-member nation.
It’s easy to predict that the US air defense systems will be stationed in Gotland to be guarded by American personnel. Instructors will also be there. Then reasons will be found to justify the presence of US military in other areas on Swedish soil under the pretext of «rotation» to hold exercises like it is done in Norway where American Marines are stationed permanently in breach of tried-and-true foreign policy principle excluding the stationing of foreign military on Norwegian soil.
No doubt, the policy does not make Sweden safer as Russia will deliberate an appropriate response. In June, Russian President Vladimir Putin warned that «If Sweden joins NATO; it will negatively affect our relations because it will mean that NATO facilities will be set up in Sweden so we will have to think about the best ways to respond to this additional threat».
This neutrality policy was, and still is, hugely popular in Sweden. But to call a spade a spade, Sweden is no longer neutral in practice. It has become a leading NATO nation, whose official non-alignment does not reflect reality. One should believe deeds not words. Aurora 2017 is a good example of the fact that the Swedish neutral status has become a thing of the past.
Constitutional Crisis Brews in Moldova as Government Tests President’s Authority

Sputnik – 4 10.09.2017
Moldovan President Igor Dodon is demanding the resignation of Deputy Defense Minister Gheorghe Galbura for defying a presidential order to block the deployment of Moldovan troops to Ukraine to participate in NATO-led military drills. Speaking to Sputnik, regional expert Boris Rozhin warned that the country is on a path to a constitutional crisis.
The Moldovan government approved sending several dozen troops to Ukraine last week, ignoring Dodon’s decree to block the deployment. Dodon described the move as an ‘usurpation of power’ by the cabinet.
Speaking to Radio Sputnik about what’s likely to happen next, Boris Rozhin, an expert at the Center of Military-Political Journalism, said that the Moldovan government will be likely to try to ignore or challenge the president’s demand for Galbura’s resignation.
“This confrontation over sending the military abroad is an indication that the constitutional crisis in Moldova is deepening,” the expert said. “The parliament and the government are refusing to recognize the president’s authority as commander-in-chief to give orders to the country’s armed forces.”
“This issue will be considered at a meeting of the country’s Security Council, and most likely, by the constitutional court, as Dodon’s decision to dismiss the deputy defense minister will either be ignored or contested,” Rozhin added.
The expert believes that this confrontation between the branches of Moldova’s government is likely to continue until the next parliamentary elections, tentatively set for November 2018.
“The confrontation can be resolved through a decision of the constitutional court, which confirms or rejects Dodon’s right to issue orders to the Armed Forces, or deepen further and continue until the next parliamentary elections,” Rozhin said.
“After that, a reformatting of the legislature may take place. At the moment, the ruling establishment does not reflect the alignment of forces in Moldovan society, which has grown tired of the government’s push for European integration, which did not bring the hoped for economic and social improvements for ordinary people.”
As the constitutionally designated commander-in-chief, Dodon vetoed the government’s decision to send 57 National Guard troops to Ukraine for NATO exercises, reminding them that Moldova is a neutral state. Ignoring the president’s order, the contingent left for Ukraine anyway. The president also signed a decree which said that Moldovan military forces would not be allowed to be sent abroad for military exercises, training or any similar events without approval from the president.
The present crisis is not the first public conflict between Dodon and the cabinet o ministers. Earlier, the government asked the UN General Assembly to consider the removal of Russian peacekeeping troops from the breakaway republic of Transnistria. Dodon called the initiative an “empty PR move.” The president and the cabinet have faced off over Russia repeatedly, the government proposing a series of unfriendly gestures, with the president, in turn, saying that he would like to bring the country closer to Moscow.
Dodon, often described by Western political observers as ‘pro-Russian’, won presidential elections in 2016, defeating his pro-West, pro-EU opponent Maia Sandu. Moldova’s parliament and government are dominated by the pro-EU Democratic Party of Moldova, a social democratic party closely associated with oligarch Vladimir Plahotniuc, and a collection of independent MPs.
Commenting on the political situation in the country, political observer Viktor Marakhovsky wrote that it would be more correct to call Dodon ‘pro-Moldovan’ than ‘pro-Russian’, because the pro-EU elites he is up against have effectively “privatized political power in exchange for international grants, figuratively speaking.” Not only do they seek to give up sovereignty to EU structures; some have spearheaded a campaign pushing for Romania’s absorption of Moldova, a campaign actively supported by Bucharest.
Marakhovsky thinks that Dodon’s best hope will be to organize a referendum to ask Moldovans to approve the expansion of the president’s powers, fresh elections and returning the subject of the history of Moldova to the country’s schools, replacing ‘the history of Romania’ subject presently being taught.
Simonyan Slams Reporters Without Borders for Calling RT ‘Enemy of Journalism’

© Flickr/ Marieke Guy
Sputnik – August 28, 2017
RT Editor-in-Chief Margarita Simonyan struck back at Reporters Without Borders, which called the channel “an enemy of journalism” allegedly exploiting the EU parliament resolution against Russian media outlets comparing them to Daesh terrorist group propaganda.
RT and Sputnik Editor-in-Chief Margarita Simonyan said Monday that Reporters Without Borders (RSF) is discrediting the work of advocacy groups by calling the broadcaster “an enemy of journalism.”
“Following such horrific remarks Reporters Without Borders should quietly self-dissolve, so as not to disgrace true human rights defenders,” Simonyan told the RT commenting on Deloire’s remarks.
On August 26, RSF Secretary General Christophe Deloire in an interview with Telerama magazine cited Simonyan’s appeal for protection against the European parliament’s 2016 resolution on countering alleged Russian anti-EU propaganda and media, including RT and Sputnik, as an example of how “enemies of journalism are exploiting the principles adopted to protect it.”
In November 2016, the European Parliament passed a resolution where it described the two media outlets as a threat to Europe’s unity and drew a parallel between them and propaganda disseminated by Daesh terrorist group. The document calls for extra European Commission funding for counter-propaganda projects.
Sputnik responded by calling the move a direct violation of media freedom and human rights, while Russian President Vladimir Putin commented on the matter by pointing out that the document indicates a degradation of democracy in the West.
Sputnik contacted RSF for the organization’s comments on the resolution, only to be told that the organization had taken a decision to no longer give interviews to Rossiya Segodnya.
‘Smokescreen’ or Reality? Why Macron’s Prediction on EU’s Breakup May Come True
Sputnik – 26.08.2017
Commenting on President Emmanuel Macron’s recent statement about the EU’s possible disintegration without a social dumping reform, a French expert warned in an interview with Sputnik that such a prediction may come true at the end of the day.
Earlier this week, Macron said that the EU may break up if it fails to overhaul a rule allowing companies to send temporary workers from low-wage countries to richer nations without paying their local social charges.
Henri Sterdyniak is one of the authors of a manifesto, which was published back in September 2010 by a group of economists criticizing neo-liberalism. The document was all about the inflexibility of European economic policy during crises.
The authors slammed the “organization of competition among European workers” and warned that there is a real risk that the European countries will “retreat into in themselves.”
So did these predictions come true? Sterdyniak told Sputnik France that the answer to this question is certainly “yes.”
“The main proof of this was Brexit. Another important aspect is the massive influx of workers from Eastern Europe, as well as the growing popularity of [the right-wing] National Front in France and the Alternative for Germany (AfD) party in Germany,” he said.
“There are a number of factors that show that the popular masses in the developed countries of Western Europe believe that their well-being is threatened by globalization and, especially, by the construction of European architecture,” Sterdyniak added.
He pointed to a “rather strange situation” when “on the one hand, Macron criticizes the very practice of sending EU workers to other EU member states, but on the other – he does not say anything about globalization and the delocalization of industries, which are of greater importance.”
“The consequences of such a practice are much less dramatic than the implications of globalization and competition created by imports of goods from low-wage countries,” he pointed out.
Sterdyniak was echoed by Dany Lang, a lecturer at the University of Paris 13 and the University of Saint-Denis in Belgium.
He believes that Macron’s statements about the tightening of European rule are a “smokescreen” on the eve of a reform of the French labor code.
According to Lang, Macron’s goal is to try to boost his approval rating by making such statements now that “he is working out a new labor code which will severely damage social rights.”
“So let’s see whether any actions will follow these statements,” Land said, pointing to the fact that Poland, one of the main countries sending its workers to France, is not involved in the discussion.
“I think that the European ideal has significantly surrendered its positions. The austerity policy is carried out with unprecedented ruthlessness, particularly in Greece. I do not see why and how the reform of sending workers abroad will help improve the situation,” he said.
According to him, “Emmanuel Macron has no right to uphold social rights given his views and beliefs.”
“There is something paradoxical about a desire to trample social rights across France while saying that you want to protect them at the level of Europe,” Lang said.
Prime Ministers of Czech Republic Bohuslav Sobotka, Poland Beata Szydlo, Hungary Viktor Orban, and Slovakia Robert Fico, join hands to cut a cake to celebrate 25th anniversary of the establishment of the
“The [French] government decrees on labor legislation will be made public in a few days. As for Macron’s statements, they add to the creation of a ‘smokescreen,’ which aims to prevent the discussion on the French labor code,” Lang concluded.
In the run-up to his visit to Bulgaria, Macron said Thursday, “Some political or business circles seek to use the EU’s funds while at the same time developing a system of social and fiscal dumping.”
He warned that “this will lead to the dismantling of the European Union” if the upcoming EU summit fails to clinch a reform agreement.
‘Europe is lost’: Barcelona’s chief rabbi urges Jews to move to Israel
RT | August 19, 2017
In the aftermath of this week’s terrorist attacks in Barcelona, the city’s chief rabbi has warned his community that Jews in the region are doomed because of the threat of radical Islam.
At least 14 people were killed and over 100 injured in two separate terrorist attacks in Barcelona and the nearby coastal town of Cambrils. Islamic State (IS, formerly ISIS/ISIL) claimed responsibility for the attack on Las Ramblas in Barcelona.
“I tell my congregants: Don’t think we’re here for good, and I encourage them to buy property in Israel,” Rabbi Meir Bar-Hen said in an interview with Jewish news agency JTA.
“This place is lost. Don’t repeat the mistake of Algerian Jews, of Venezuelan Jews. Better [get out] early than late.”
Bar-Hen said the attacks highlighted the presence of a large Muslim community with “radical fringes” in the region, and alleged Spanish authorities are reluctant to confront Islamist terrorism.
The rabbi cited the recent decision to allow Palestinian Leila Khaled to enter Spain for a book festival as apparent evidence of his claim. Khaled was involved in high-profile airplane hijackings in 1969 and 1970.
The rabbi, who was keen to stress that he was speaking in a private capacity and not on behalf of the community, also said this applied more widely to Europe as a whole.
“Europe is lost,” he concluded.
The Federation of Jewish Communities of Spain appear not to share Bar-Hen’s pessimistic outlook. The organization issued a statement Thursday, saying: “Spanish Jews trust the State Security Corps that work daily to prevent radical fanatics and Islamists from sowing chaos and pain in our cities.”
The group also urged politicians to “deal intelligently and determinedly with the struggle against fanaticism and in favor of freedom and democracy.”
AIPAC video describes decades-long role in US laws against BDS
If Americans Knew – August 14, 2017
AIPAC, the American Israel Public Affairs Committee, is a powerful Washington DC lobbying organization. In this 2016 video, AIPAC describes how it has successfully worked to create U.S. laws against boycotting Israel over its multitudinous violations of human rights and international law.
The video doesn’t mention the anti-boycott legislation working its way through Congress right now (S.720 / H.R. 1697) that AIPAC helped draft: iak.salsalabs.org/antiboycottbill
Such anti-boycott laws hurt everyone.
They interfere with Americans’ fundamental consumer rights and freedom of speech, often harm American businesses and thereby the U.S. economy, and damage American international relations.
They prevent peace and perpetuate violence in the Middle East. By helping to sustain Israel’s enormous power over Palestinians, they cause Israeli leaders to believe two things: they can ignore international law, and they don’t need to negotiate with Palestinians in good faith to reach a fair and lasting peaceful resolution.
Ultimately, AIPAC’s actions have hurt Palestinians, Israelis, Americans, and the many of others impacted by the Israeli-Palestinian conflict and by Israel’s various wars against its neighbors.
Collateral Damage: U.S. Sanctions Aimed at Russia Strike Western European Allies
By Diana Johnstone | CounterPunch | July 28, 2017
Do they know what they are doing? When the U.S. Congress adopts draconian sanctions aimed mainly at disempowering President Trump and ruling out any move to improve relations with Russia, do they realize that the measures amount to a declaration of economic war against their dear European “friends”?
Whether they know or not, they obviously don’t care. U.S. politicians view the rest of the world as America’s hinterland, to be exploited, abused and ignored with impunity.
The Bill H.R. 3364 “Countering America’s Adversaries Through Sanctions Act” was adopted on July 25 by all but three members of the House of Representatives. An earlier version was adopted by all but two Senators. Final passage at veto-overturning proportions is a certainty.
This congressional temper tantrum flails in all directions. The main casualties are likely to be America’s dear beloved European allies, notably Germany and France. Who also sometimes happen to be competitors, but such crass considerations don’t matter in the sacred halls of the U.S. Congress, totally devoted to upholding universal morality.
Economic “Soft Power” Hits Hard
Under U.S. sanctions, any EU nation doing business with Russia may find itself in deep trouble. In particular, the latest bill targets companies involved in financing Nord Stream 2, a pipeline designed to provide Germany with much needed natural gas from Russia.
By the way, just to help out, American companies will gladly sell their own fracked natural gas to their German friends, at much higher prices.
That is only one way in which the bill would subject European banks and enterprises to crippling restrictions, lawsuits and gigantic fines.
While the U.S. preaches “free competition”, it constantly takes measures to prevent free competition at the international level.
Following the July 2015 deal ensuring that Iran could not develop nuclear weapons, international sanctions were lifted, but the United States retained its own previous ones. Since then, any foreign bank or enterprise contemplating trade with Iran is apt to receive a letter from a New York group calling itself “United Against Nuclear Iran” which warns that “there remain serious legal, political, financial and reputational risks associated with doing business in Iran, particularly in sectors of the Iranian economy such as oil and gas”. The risks cited include billions of dollars of (U.S.) fines, surveillance by “a myriad of regulatory agencies”, personal danger, deficiency of insurance coverage, cyber insecurity, loss of more lucrative business, harm to corporate reputation and a drop in shareholder value.
The United States gets away with this gangster behavior because over the years it has developed a vast, obscure legalistic maze, able to impose its will on the “free world” economy thanks to the omnipresence of the dollar, unrivaled intelligence gathering and just plain intimidation.
European leaders reacted indignantly to the latest sanctions. The German foreign ministry said it was “unacceptable for the United States to use possible sanctions as an instrument to serve the interest of U.S. industry”. The French foreign ministry denounced the “extraterritoriality” of the U.S. legislation as unlawful, and announced that “To protect ourselves against the extraterritorial effects of US legislation, we will have to work on adjusting our French and European laws”.
In fact, bitter resentment of arrogant U.S. imposition of its own laws on others has been growing in France, and was the object of a serious parliamentary report delivered to the French National Assembly foreign affairs and finance committees last October 5, on the subject of “the extraterritoriality of American legislation”.
Extraterritoriality
The chairman of the commission of enquiry, long-time Paris representative Pierre Lellouche, summed up the situation as follows:
“The facts are very simple. We are confronted with an extremely dense wall of American legislation whose precise intention is to use the law to serve the purposes of the economic and political imperium with the idea of gaining economic and strategic advantages. As always in the United States, that imperium, that normative bulldozer operates in the name of the best intentions in the world since the United States considers itself a ‘benevolent power’, that is a country that can only do good.”
Always in the name of “the fight against corruption” or “the fight against terrorism”, the United States righteously pursues anything legally called a “U.S. person”, which under strange American law can refer to any entity doing business in the land of the free, whether by having an American subsidiary, or being listed on the New York stock exchange, or using a U.S.-based server, or even by simply trading in dollars, which is something that no large international enterprise can avoid.
In 2014, France’s leading bank, BNP-Paribas, agreed to pay a whopping fine of nearly nine billion dollars, basically for having used dollar transfers in deals with countries under U.S. sanctions. The transactions were perfectly legal under French law. But because they dealt in dollars, payments transited by way of the United States, where diligent computer experts could find the needle in the haystack. European banks are faced with the choice between prosecution, which entails all sorts of restrictions and punishments before a verdict is reached, or else, counseled by expensive U.S. corporate lawyers, and entering into the obscure “plea bargain” culture of the U.S. judicial system, unfamiliar to Europeans. Just like the poor wretch accused of robbing a convenience store, the lawyers urge the huge European enterprises to plead guilty in order to escape much worse consequences.
Alstom, a major multinational corporation whose railroad section produces France’s high speed trains, is a jewel of French industry. In 2014, under pressure from U.S. accusations of corruption (probably bribes to officials in a few developing countries), Alstom sold off its electricity branch to General Electric.
The underlying accusation is that such alleged “corruption” by foreign firms causes U.S. firms to lose markets. That is possible, but there is no practical reciprocity here. A whole range of U.S. intelligence agencies, able to spy on everyone’s private communications, are engaged in commercial espionage around the world. As an example, the Office of Foreign Assets Control, devoted to this task, operates with 200 employees on an annual budget of over $30 million. The comparable office in Paris employs five people.
This was the situation as of last October. The latest round of sanctions can only expose European banks and enterprises to even more severe consequences, especially concerning investments in the vital Nord Stream natural gas pipeline.
This bill is just the latest in a series of U.S. legislative measures tending to break down national legal sovereignty and create a globalized jurisdiction in which anyone can sue anyone else for anything, with ultimate investigative capacity and enforcement power held by the United States.
Wrecking the European Economy
Over a dozen European Banks (British, German, French, Dutch, Swiss) have run afoul of U.S. judicial moralizing, compared to only one U.S. bank: JP Morgan Chase.
The U.S. targets the European core countries, while its overwhelming influence in the northern rim – Poland, the Baltic States and Sweden – prevents the European Union from taking any measures (necessarily unanimous) contrary to U.S. interests.
By far the biggest catch in Uncle Sam’s financial fishing expedition is Deutsche Bank. As Pierre Lellouche warned during the final hearing of the extraterritorial hearings last October, U.S. pursuits against Deutsche Bank risk bringing down the whole European banking system. Although it had already paid hundreds of millions of dollars to the State of New York, Deutsche Bank was faced with a “fine of 14 billion dollars whereas it is worth only five and a half. … In other words, if this is carried out, we risk a domino effect, a major financial crisis in Europe.”
In short, U.S. sanctions amount to a sword of Damocles threatening the economies of the country’s main trading partners. This could be a Pyrrhic victory, or more simply, the blow that kills the goose that lays the golden eggs. But hurrah, America would be the winner in a field of ruins.
Former justice minister Elisabeth Guigou called the situation shocking, and noted that France had told the U.S. Embassy that the situation is “insupportable” and insisted that “we must be firm”.
Jacques Myard said that “American law is being used to gain markets and eliminate competitors. We should not be naïve and wake up to what is happening.”
This enquiry marked a step ahead in French awareness and resistance to a new form of “taxation without representation” exercised by the United States against its European satellites. The committee members all agreed that something must be done.
That was last October. In June, France held parliamentary elections. The commission chairman, Pierre Lellouche (Republican), the rapporteur Karine Berger (Socialist), Elisabeth Guigou (a leading Socialist) and Jacques Myard (Republican) all lost their seats to inexperienced newcomers recruited into President Emmanuel Macron’s République en marche party. The newcomers are having a hard time finding their way in parliamentary life and have no political memory, for instance of the Rapport on Extraterritoriality.
As for Macron, as minister of economics, in 2014 he went against earlier government rulings by approving the GE purchase of Alstom. He does not appear eager to do anything to anger the United States.
However, there are some things that are so blatantly unfair that they cannot go on forever.
Diana Johnstone is the author of Fools’ Crusade: Yugoslavia, NATO, and Western Delusions. Her new book is Queen of Chaos: the Misadventures of Hillary Clinton. She can be reached at diana.johnstone@wanadoo.fr
The Atlantic Council: Experts on the front line of disinformation
By Bryan MacDonald | RT | July 26, 2017
NATO’s academic wing has been warning about disinformation for years. And it’s no wonder when its staff and contributors are so well-versed in the practice themselves.
The Atlantic Council is an organization dedicated to discussion between people who hate Russia and folk who really, really hate Russia. Thus, amid the current hysteria, it’s Christmas every day for its assorted staff and “fellows” or, to use a more accurate term, ‘lobbyists.’
For the uninitiated, it’s difficult to explain what exactly the Atlantic Council does. Essentially, the club exists to influence the information space to justify NATO’s continued existence. It does that by either employing Russia’s opponents directly or offering retainers to journalists and media analysts who can be relied upon to push the outfit’s anti-Russian stance. Which, of course, is its lifeblood.
While the Atlantic Council is set-up to promote antagonism toward Russia, it also needs it. Because if Russia combusted tomorrow, everyone on the payroll would be out of a job. So, it’s like the famous U2 song “I can’t live, with or without you.” But unlike the protagonist of that ditty, these guys don’t give themselves away. Instead, this NATO adjunct is lavishly funded, by a roll call of famous entities.
Such as the Foreign & Commonwealth Office of the United Kingdom, Abu Dhabi’s National Oil Company, the Ukrainian World Congress, the Lockheed Martin Corporation, the Raytheon Company, the US State Department and the Victor Pinchuk Foundation, which is the plaything of a Ukrainian oligarch.
Some of the more prominent beneficiaries of the resultant money tree include Bellingcat’s Eliot Higgins, CNN’s Michael Weiss, Crowdstrike’s Dmitri Alperovitch, Obama advisor Evelyn Farkas and Maxim Eristavi of Ukraine’s Maidan. All of whom are conveniently united by their hostility to all things Russian.
Like Rolling Stones
The Atlantic Council’s content ranges from very anti-Russian to extremely anti-Russian. For instance, it carries articles by the likes of Alexander Motyl, who predicted Russia’s imminent collapse in January of 2016, before warning in January of 2017 that Moscow was planning a major land invasion of Ukraine. Which is Russophrenia at its finest, in fairness. Nevertheless, Motyl is a shrinking violet compared to Atlantic Council lobbyist Anders Aslund, who foresaw Russia’s demise way back in September 1999. And now, almost eighteen years later, he’s still hanging around for the big moment. In the manner of a Seventh Day Adventist awaiting the second coming of Jesus, any day now.
So, now that we’ve established the Atlantic Council’s modus operandi let’s look at the latest example of the group’s myopia. This week, they’ve unleashed one Polina Kovaleva to opine on “why Congress should pass the Russian sanctions bill.” And she’s delivered a tirade which is shoddy, even when measured by the usual indigent standards.
Kovaleva gives her readers examples of why the embargo is justified, in her opinion, but then delivers a line so deceptive that it makes you wonder whether she’s in touch with reality. “Although the Senate easily passed a strong sanctions bill in June to punish Russia for its aggression in Ukraine and annexation of Crimea, the White House has quietly lobbied to weaken it, and some European politicians are pushing back,” she writes.
Eurocrat Anger
That’s’ right, “some European politicians are pushing back.” Some! What she actually means is “basically every significant elected representative in the European Union.” Including, the “leader of the free world” herself Angela Merkel and that well-known renegade Jean-Claude Juncker.
Here’s what Reuters reported on Wednesday morning: “European Commission President Jean-Claude Juncker said on Wednesday the European Union was ready to act “within a matter of days” if proposed new US sanctions on Russia undermined the bloc’s energy security. And that came three days after the Financial Times reported how Brussels was considering imposing penalties on the US if it damaged European interests to settle scores with Moscow.
Meanwhile, for her part, Merkel has backed Germany’s Foreign Minister, Sigmar Gabriel, in expressing concerns that Washington is threatening “illegal extraterritorial sanctions against European companies that participate in the development of European energy supply.”
Because everybody in Europe knows this US Congress bill has little or nothing to do with punishing Russia. Instead, it’s about trying to nudge Moscow’s energy companies out of Europe, to create market share for their competitors. In other words, a form of economic war, in which the EU countries’ interests don’t amount to a hill of beans.
Something explained recently by Wolfgang Ischinger, a prominent German pundit and former diplomat. He contended: “how would the US have reacted if Europeans had adopted a bill against Keystone XL pipeline but in favor of European business?” before pointing out “for Europe, the loss of such large oil or gas supplies from Russia is unacceptable: there are no alternatives.”
Without question, this is a high-profile resistance campaign. And these sanctions could severely rupture transatlantic ties. Because you don’t get more powerful than Merkel and Juncker in Europe. But the Atlantic Council makes it sound as if a few fringe politicians are off on a solo-run, rejecting Washington’s supreme wisdom.
That is certainly not the case and amounts to misleading agitprop of the highest order. Which is rather apt for a lobbying firm which recently held a “Disinfo week” and proudly claims to be “On the front lines of disinformation.” Because, on this evidence, the Atlantic Council is home to seriously proficient gurus of hogwash.
Bryan MacDonald is an Irish journalist, who is based in Russia.
