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President Xi’s Trip To Moscow Solidifies The Sino-Russo Entente

By Andrew Korybko | March 20, 2023

The impending trifurcation of International Relations will result in the formation of three de facto New Cold War blocs: The US-led West’s Golden Billion, the Sino-Russo Entente, and the informally Indian–led Global South. Intrepid readers can review the preceding hyperlinked analysis to learn more about the grand strategic dynamics behind this latest phase of the global systemic transition, while the present one will elaborate on those connected to the Russian-Chinese Strategic Partnership in particular.

These two Eurasian Great Powers had already closely aligned their foreign and economic policies far before Russia was forced to commence its special operation in Ukraine last year after NATO clandestinely crossed its red lines there and refused to diplomatically resolve their security dilemma. This was due to their shared multipolar vision, which in turn resulted in Moscow synchronizing its Greater Eurasian Partnership (GEP) with Beijing’s Belt & Road Initiative (BRI).

The purpose behind doing so was to supercharge multipolar processes across the supercontinent with a view towards making International Relations more democratic, equal, just, and predictable a lot sooner than even the most optimistic observers could have expected. None of this was driven by anti-Western animosity either since both of them envisaged the EU and US playing pragmatic roles in this emerging world order, which is proven by their proactive engagement of each over the years.

Russia expected that it could diplomatically resolve its security dilemma with the US over NATO’s expansion simultaneously with encouraging it and the EU to get Kiev to implement the Minsk Accords, thus ending the then-Ukrainian Civil War and optimizing trans-Eurasian trade. Meanwhile, many EU countries joined BRI and China even clinched an investment pact with the bloc, all while seeking to diplomatically resolve its own security dilemma with the US and work out a new trade deal with it.

Had the US formulated its grand strategy with mutually beneficial economically driven outcomes in mind instead of remaining under the influence of Brzezinski’s zero-sum divide-and-rule teachings, then everything could have been much different. That declining unipolar hegemon could have responsibly carved out a comfortable niche in the new era of globalization that Russia and China were jointly seeking to pioneer, thus ensuring that the global systemic transition smoothly moved towards multipolarity.

Regrettably, liberal–globalist members of the US’ military, intelligence, and diplomatic bureaucracies (“deep state”) continued to believe that Brzezinski’s geostrategic schemes could successfully reverse the aforesaid transition and thus indefinitely retain their country’s dominant position in International Relations. This explains why they subsequently sought to “contain” Russia and China at the same time by worsening regional disputes instead of reciprocating those two’s efforts to peacefully resolve them.

The decision was eventually made to prioritize Russia’s “containment” over China’s with the expectation that the first would either strategically capitulate to NATO’s blackmail campaign or quickly collapse due to sanctions if it resorted to military force for defending its red lines in Ukraine, thus making China’s successful “containment” a fait accompli in that scenario and therefore preserving the US’ hegemony. Where everything went wrong was that the West never prepared for a protracted conflict in Ukraine.

Russia proved much more resilient in all respects than the Golden Billion expected, ergo why they’re panicking that the over $100 billion that they’ve already given to their proxies in Kiev isn’t anywhere near enough for defeating that Eurasian Great Power. The New York Times admitted last month that the sanctions failed just like their “isolation” campaign did, while the NATO chief recently declared a “race of logistics” and the Washington Post finally told the truth about just how poorly Kiev’s forces are faring.

Amidst the past year of international proxy hostilities that the West itself provoked, the globalized system upon which China’s grand strategy depended was unprecedentedly destabilized by their unilateral sanctions regime that’s responsible for the food and fuel crises across the Global South. This influenced President Xi to seriously consider a “New Détente” with the US, which he initiated during last November’s G20 Summit in Bali after he met with Biden and a bunch of other Western leaders.

To be absolutely clear, this well-intended effort wasn’t meant to reverse any of the multipolar progress that China was responsible for over the past decade but purely to pursue a series of mutual compromises aimed at establishing a “new normal” in their ties so as to restore stability to globalization. In other words, it was about buying time for the world’s top two economies to recalibrate their grand strategies, ideally in the direction of working more closely together for everyone’s sake.

Their talks unexpectedly ended in early February, however, after the black swan event that’s known as the balloon incident. This saw anti-Chinese hardliners in the US suddenly ascend to policymaking prominence, thus dooming the “New Détente”, which resulted in China recalibrating its approach to the NATO-Russian proxy war to the point where President Xi, Foreign Minister Qin, and Ambassador to the EU Fu all concluded that it’s part of the US’ anti-Chinese “containment” strategy.

Under these newfound circumstances, the US consolidated its successfully reasserted hegemony over the EU by getting Germany to go along with Washington’s very strongly implied threats that the Golden Billion will sanction China if it decides to arm Russia should Moscow require such aid as a last resort. In response, China felt compelled to consolidate its strategic partnership with Russia to the point of turning it into an entente, hence the purpose of President Xi’s trip to work out the finer details of this.

Just like these two Great Powers earlier synchronized Russia’s GEP and China’s BRI, so too are they now poised to synchronize the first’s Global Revolutionary Manifesto with the second’s global initiatives on development, security, and civilization. This prediction is predicated on the articles that Presidents Putin and Xi published in one another’s national media on the eve of the latter’s trip to Moscow, which confirms that they intend to cooperate more closely than ever before.

Observers can therefore expect the Sino-Russo Entente to solidify into one of the world’s three premier poles of influence as a result of the Chinese leader’s visit, thus making it a milestone in the New Cold War over the direction of the global systemic transition. The worldwide struggle between this pole and the Golden Billion will intensify, especially in the Global South, which will reinforce India’s importance in helping fellow developing states balance between both and thus bring about true tripolarity.

March 20, 2023 Posted by | Economics, Militarism | , , , | Leave a comment

Russia to maintain high oil output – JPMorgan

RT | March 5, 2023

Russian oil drillers can maintain high production despite numerous rounds of Western sanctions, JPMorgan projected this week, according to Reuters.

The Wall Street bank pointed to growing demand for crude oil from China and India which is expected to increase collectively by 1 million barrels per day (mbd) this year.

“We believe Russia will be able to maintain its oil production at pre-war levels of 10.8 mbd but will have difficulties getting back to peak pre-Covid volumes of 11.3 mbd,” JPMorgan reportedly stated.

The US bank suggested that Moscow could struggle to reroute part of its oil product exports away from the EU, following the bloc’s embargo on imports of Russian fuels. Seaborne oil product shipments from Russia are set to decline by around 300,000 barrels per day to “lows last seen in May 2022,” it projected.

Meanwhile, business daily Kommersant reported this week, citing industry sources, that Russian oil output in February reached pre-sanctions levels for the first time, and may exceed the February 2022 figure.

According to Kpler, Russian crude oil and petroleum product exports also held strong last month, with energy producers managing to ship 7.32 million barrels per day of crude oil and oil products.

While the EU and G7 nations have introduced price caps and restrictions on Russian fuel imports, China, India, Türkiye, and some other countries have boosted purchases from Moscow. Last month, Russia unveiled plans to curb oil production in March by 500,000 barrels a day, or about 5%, in retaliation to Western sanctions.

March 5, 2023 Posted by | Economics | , , , | 3 Comments

Turkish FM speaks out on sanctioning Russia over Ukraine

RT | March 1, 2023

Türkiye will not be joining unilateral sanctions imposed on Russia by the West over the conflict in Ukraine, Turkish Foreign Minister Mevlut Cavusoglu said on Wednesday.

Cavusoglu was asked how long Ankara would be able to resist pressure from the US and its allies to put restrictions on Moscow ahead of talks with his Russian counterpart Sergey Lavrov on the sidelines of the G20 Foreign Ministers Meeting in India’s capital New Delhi.

“We don’t need to resist anyone, we make our own decisions as a sovereign state. We don’t join any unilateral sanctions. We support only those [restrictions that are] introduced with the backing of the UN,” the foreign minister replied, as cited by the media.

“It’s not just about Russia, but we also don’t support sanctions against Iran or any other country,” Cavusoglu pointed out, adding that “no one can put pressure” on Türkiye.

India, which chairs the G20 this year, is hosting the summit of foreign ministers on Wednesday and Thursday.

An Indian foreign ministry official told Reuters on Wednesday that New Delhi didn’t want the conflict in Ukraine to dominate the discussions at the event, but acknowledged that it would likely be among the top issues on the agenda. The host nation’s “intention [is] to continue playing the voice of the Global South [Latin America, Africa, Asia and Oceania] and raising issues pertinent to the region,” the official said.

High-ranking Indian diplomat Vinay Kwatra told reporters that “questions relating to food, energy and fertilizer security, [and] the impact that the conflict has on these economic challenges that we face” will be among those to receive “due focus” in New Delhi.

However, EU foreign policy chief Josep Borrell, who is a stalwart supporter of Kiev, insisted that India should use the G20 gathering to “make Russia understand that this war has to finish.” According to Borrell, the “success” of the whole meeting “will be measured in respect to what we will be able to do on that.”

An EU source said separately the EU delegation in New Delhi won’t support the final statement as a result of the summit if it doesn’t include condemnation of Russia’s conduct in Ukraine, Reuters reported.

March 1, 2023 Posted by | Economics | , , , | Leave a comment

Korybko: There’s No Reason For India To Decouple Itself From Russia

By Andrew Korybko | March 1, 2023

As an economic expert, Renuka Sane’s heart might presumably be in the right place, but her suggestion to decouple from Russia is counterproductive from the perspective of India’s grand strategic interests. By following her well-intended advice, India would be abandoning its masterful balancing act between key players in the New Cold War that’s responsible for its rapid rise as a globally significant Great Power over the past year. It would also be voluntarily submitting itself to vassal status vis-à-vis the US-led West’s Golden Billion.

The Print, a popular Indian online media outlet, published an op-ed by Renuka Sane on Wednesday urging her country to decouple from Russia in order to please its Western partners. Titled “India must detach from Russia. Exports, IT, or education, its interests lie with the West”, the research director at Trustbridge, which works on improving the rule of law for better economic outcomes for India, shared plenty of details about Indian-Western economic, financial, and tech ties in order to make her case.

There’s no disputing the fact that these abovementioned relationships are incredibly important for India and far outweigh related ties with Russia. The problem, however, is the innuendo that pervades her text whereby she appears to regularly hint that her country’s Western partners might employ “state coercion” against it in response to Delhi’s defiance of their demand to distance itself from Moscow. The first such example of this is present in the second paragraph of her piece.

Sane writes that “State coercion limits engagement between individuals in two countries. Governments make such decisions based on a balance of economic interests and foreign policy. One arena where this plays out is visa diplomacy. Denial of visas is a lever of international relations and often used as a tool to influence actions by another State.” She then adds near the end of that paragraph that “Trade agreements may sometimes be driven primarily by geopolitical and strategic reasons.”

Sane continues this trend into the third paragraph where she opines that “The energy, support, and prioritisation for all these [Indian-US tech initiatives] on the part of the two governments are shaped by their security environment.” This part can be interpreted as her hinting that the US’ displeasure with the Russian dimension of India’s foreign policy could have consequences for bilateral cooperation, especially in the tech sphere.

Reinforcing this point, the fourth paragraph includes the following insight: “Information Technology is now India’s biggest industry, and the future of the Indian economy is tied to success in this sector. For further doubling of services exports, support and cooperation from Western governments is important.” Sane then adds at the end of the sixth paragraph that “India’s approach to the Ukraine war will shape the extent to which Western governments choose to support India’s services exports growth targets.”

The last two paragraphs more directly convey the implied purpose behind her latest op-ed. This is evidenced by her warning that “If global firms want to exit China on the grounds that it is an authoritarian country hostile to the West, then it is in India’s interest to look ‘un-China’ in the eyes of the world. Our equation and policies vis-a-vis Russia may shape the attitude of these global corporate players.”

Sane then ends her piece on the following ominous note: “India’s economic interests lie with the West, and the latter is extremely worried about Russia’s invasion of Ukraine.” Putting everything together and keeping in mind the excerpts that were shared, there’s little doubt that she’s concerned that the West – particularly the US – might punish India for its independent foreign policy towards Russia through economic, financial, and/or tech means, ergo her innuendo that it should ditch Moscow.

As an economic expert, her heart might presumably be in the right place, but her suggestion is counterproductive from the perspective of India’s grand strategic interests. By following her well-intended advice, India would be abandoning its masterful balancing act between key players in the New Cold War that’s responsible for its rapid rise as a globally significant Great Power over the past year. It would also be voluntarily submitting itself to vassal status vis-à-vis the US-led West’s Golden Billion.

India’s hard-earned strategic autonomy would be surrendered in exchange for literally nothing at all since it’s highly unlikely that her implied scenario of that de facto New Cold War bloc punishing her country through the related means that she warned about will ever come to pass. This South Asian Great Power is simply much too important to the Golden Billion for the latter to unilaterally decouple itself from the former for five reasons that will now be summarized.

First, India’s labor and market potentials are too large for the West to ignore, which directly segues into the second point of them envisaging that country functioning as a reliable re-shoring location for gradually reducing their presently disproportionate dependence on Chinese-based supply chains. Third, their support for India’s continued economic growth enhances its comprehensive capabilities to manage China’s rise, which aligns with their de facto New Cold War bloc’s geostrategic interests.

Fourth, no other country has anywhere near the previously mentioned characteristics that India has, meaning that there’s no viable alternative for the West with respect to those related opportunities in the event that they decide to decouple themselves from it as punishment for its foreign policy. And finally, the worst-case scenario that they want to avoid at all costs is pushing India into considering the “Chindia” scenario of combining its potential with China and jointly challenging the West.

That last-mentioned scenario is only foreseeable in the event that the West’s liberal–globalist elite succeed in punishing India for its foreign policy through economic and other means of the sort that Color Revolution mastermind George Soros implied last month are credibly in the cards. His de facto declaration of Hybrid War against India during the Munich Security Conference was alarming, but his more pragmatic and non-ideological peers might still rein him in and prevent this from materializing.

If they can’t, then they risk pushing India into seriously considering synergizing its economic, financial, and tech potential with China, which would deal a deathblow to Western dominance. In any case, this is a choice for the West itself to make and India shouldn’t voluntarily subjugate itself to the Golden Billion’s foreign policy demands out of desperation to avert the scenario of it being punished by them like Sane appears to be strongly suggesting throughout her piece.

Rather, India should maintain its multi-alignment between all key players, but never shy away from signaling to everyone that it always has backup plans in the event that any of them unilaterally decides to worsen their relations for purely zero-sum political reasons. There’s no indication that the West as a whole is seriously considering punishing India for its ties with Russia, Soros’ de facto declaration of Hybrid War against it notwithstanding, but they should still know what would happen if they do.

March 1, 2023 Posted by | Economics | , , | 1 Comment

Russia Will Keep Up The Pace Of Oil Exports To India Despite Increased Chinese Demand

By Andrew Korybko | March 1, 2023

Bloomberg’s points in support of this observation are purely economic and overlook the strategic dimension of Russia’s discounted oil exports to India, which will be explained in the present piece.

Bloomberg published a piece on Tuesday about how “Russia Seen Favoring India Even as China’s Oil Demand Rebounds”, which cites lead crude analyst Viktor Katona from commodity-data firm Kpler. According to him, “While China could ‘buy literally the entire Russian oil exports’ as it abandons Covid-zero policies, Russia will want to keep the Indian market because it is more lucrative and gives its crude sellers greater control.”

Katona is also quoted as adding that “Chinese refiners may want to buy more Russian crude this year, but they also have the capacity to do their own shipping. That would deprive Moscow of income from the ‘parallel gray fleet’ of tankers it has established to deliver crude to India.” While these are all valid points in support of his prediction, they’re purely economic and overlook the strategic dimension of Russia’s discounted oil exports to India, which will now be explained.

First, India’s unprecedentd scaling of Russian oil imports over the past year since the start of the latter’s special operation preemptively averted Moscow’s potentially disproportionate dependence on China and continues to do so into the present.

Second, the Kremlin will never forget the aforementioned strategic favor that India did for Russia at its most sensitive moment in decades, hence why it’s inclined to keep up the pace of its discounted exports to that country as a way of thanking it for this.

Third, the Kremlin is cognizant of the fact that there must be tangible benefits for India in continuing to defy Western pressure upon it to dump Russia, so keeping up the pace of oil exports to it incentivizes India to continue its pragmatic policy of principled neutrality towards the Ukrainian Conflict.

Fourth, their newfound energy relations also served Russia’s grand strategic goal of accelerating India’s rise as a globally significant Great Power.

That last-mentioned outcome advances the global systemic transition’s ongoing evolution towards tripolarity ahead of its final form of more complex multipolarity (“multiplexity”), which serves both of their interests. And finally, the larger dynamics connected to the aforesaid development is that it helps break the Sino-American bi-multipolar superpower duopoly that previously characterized International Relations, thus greatly enhancing Russia and India’s strategic autonomy in the New Cold War.

Altogether, these strategic motivations ensure that Russia won’t increase oil exports to China at the expense of the level at which it’s presently supplying India. Observers should always keep them in mind since they prove that the Russian-Indian Strategic Partnership is premised on their shared goal of accelerating the global systemic transition and not on deriving opportunistic economic benefits like Bloomberg implied is supposedly the case when it comes to their current energy ties.

March 1, 2023 Posted by | Economics | , , | Leave a comment

Blinken hopes to derail India’s relationship with Russia following Scholz’s failure

By Ahmed Adel | March 1, 2023

With Russia’s military operation in Ukraine evidently destroying NATO’s ambitions, Washington is becoming increasingly frustrated that Moscow has not been isolated. Russia did not economically collapse, as was predicted in the West, partly because of the robust and longstanding relationship it has with India. It is unsurprising that in only a matter of days, Germany and the US have pressured India to capitulate their sovereignty and serve Western interests instead of their own.

German Chancellor Olaf Scholz sought assurances from India on February 25 that it would not only refuse to block, but also support efforts to isolate Russia. Following his talks with Indian Prime Minister Narendra Modi, the chancellor refused to reveal what exactly they discussed in relation to Ukraine.

Although the contents of the discussion were cited as being confidential in nature, it is likely that Scholz did not want to humiliatingly admit that India refused to step back from its tried and tested relationship with Russia. Scholz did reveal though that he and Modi had discussed the war in Ukraine “very extensively and very intensely.”

It is noted that this trip was Scholz’s first official visit to India but his fourth meeting with Modi since taking office in 2021. Although they also discussed ways to boost economic cooperation, including through a free trade agreement between the European Union and India, it cannot be overlooked that US Secretary of State Antony Blinken arrived in New Delhi only days after Scholz.

Days before arriving in the Indian capital, Blinken said that countries like India, which have not joined the West in denouncing Russia’s military operation, were on a supposed trajectory away from alignment with Moscow. He stressed that the process would not occur “in one fell swoop.”

“There are countries that have long-standing, decades-long relationships with Russia, with the Soviet Union before, that are challenging to break off in one fell swoop. It’s not flipping a light switch, it’s moving an aircraft carrier,” Blinken said in an interview with The Atlantic on February 24.

However, for all of Blinken’s claims that India is moving away from Moscow, there is no actual suggestion that this is occurring. The US and India cooperate through the QUAD format, a naval bloc aimed against China, but this has not meant India’s submission to Washington, as the Americans evidently anticipated.

Although India has faced sustained and continued pressure from the West to distance itself from Moscow, New Delhi has thus far resisted, citing its longstanding ties with Russia and its economic and oil interests. It cannot be overlooked that Russia has been India’s largest weapons supplier since the Cold War-era, particularly since the US traditionally favoured Pakistan.

However, Washington in recent years has looked to turn New Delhi away from its main military supplier (but without wanting to adjust its policy to Pakistan).

“India for decades had Russia at the core of providing military equipment to it and its defences, but what we’ve seen over the last few years is a trajectory away from relying on Russia and moving into partnership with us and other countries,” Blinken said, without mentioning the fact that India is moving towards home-grown production, something that Russia is playing a key role in.

None-the-less, it is expected that Blinken, in the same way as Scholz, will try and convince India to change course regarding its ties with Russia.

As Bloomberg reported, citing Kpler’s lead crude analyst, Viktor Katona, “India purchased almost no Russian oil a year ago, but has become a crucial market after the US and European Union imposed sanctions on Moscow. The Asian country imported around 1.85 million barrels a day from Russia in February, close to its potential maximum of about 2 million barrels a day.”

The cold hard facts are that Moscow and New Delhi have a longstanding relationship that India will not break just for the sake of serving Western interests. Beyond the time-tested security ties, Russia offers energy hungry India the best deal for oil, something that will not be sacrificed because of a far-off war in Eastern Europe.

According to QUARTZ, India has in less than a year saved an estimated $3.6 billion by increasing Russian oil imports. This is a significant amount for a country that depends on imports to meet 85% of its petroleum needs.

It is recalled that in November 2022, Indian Foreign Minister S Jaishankar said “Russia has been a steady and time-tested partner. Any objective evaluation of our relationship over many decades would confirm that it has actually served both our countries very, very well.”

With this statement, he effectively confirmed a continuance of the current policy despite sustained pressure – a pressure that Scholz and Blinken are the latest to apply. They are however also the latest that were unable to convince New Delhi to change its policy regarding Russia.

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

March 1, 2023 Posted by | Aletho News | , | 2 Comments

Why Western Sanctions Against Russia Failed

By Simes Dimitri – Sputnik – February 24, 2023

Sanctions were meant to deliver a swift and devastating blow to the Russian economy, one that would take years to recover from. Much to the dismay of Western politicians, however, not only did Russia survive the sanctions storm, but it has the potential to emerge even stronger than before.

During a speech in Poland last year, US President Joe Biden boasted that sanctions had reduced the Russian ruble to “rubble” and confidently predicted that the Russian economy was on “track to be cut in half.” French Finance Minister Bruno Le Maire went even further, declaring that the West would bring about Russia’s economic “collapse.”

“We are waging total economic and financial war on Russia,” he told a French broadcaster last March. “The economic and financial balance of power is totally in favor of the European Union, which is in the process of discovering its own economic power.”

Despite these loud promises, the Russian economy contracted by a mere 2.5 % last year – a decline considerably smaller than those experienced during the 1998 financial crisis (5.3%) and the 2008 Great Recession (7.9%). In a report published last month, the International Monetary Fund forecast that Russian economic growth would outpace that of Germany and the United Kingdom in 2023.

Nor did sanctions succeed in turning Russia into a global pariah. A recent report by the University of St.Gallen in Switzerland found that only 8.5% of European and G7 companies had divested from Russia between February and November 2022. At the same time, Russia’s trade turnover with non-Western economic powers such as China, India, Turkey, and Indonesia soared.

Earlier this month, EU foreign policy chief Josep Borrell was forced to admit that the West’s sanctions strategy was not going according to plan. “It is true that the Russian economy has not collapsed and that the GDP is not what has been forecast, and it is true that last year it got extraordinarily high revenues that came from oil and gas,” he said during a speech at the European Parliament plenary session.

How was Russia able to overcome an unprecedented sanctions blitzkrieg? To answer that question, Sputnik News spoke with economists and Russian businesspeople in industries ranging from agriculture to information technologies. They told us that Western sanctions were headed for failure from the very beginning because they were built on a distorted view of the Russian economy.

Our interlocutors emphasized that although sanctions undoubtedly created economic challenges for Russia in the short and medium term, they also presented a powerful opportunity to revive domestic industry and scientific potential, as well as establish new partnerships with Asian, Middle Eastern, Latin American, and African economies.

Failed Strategy

In the weeks and months following the start of Russia’s special military operation in Ukraine, the US and the EU rolled out some of the most expansive sanctions packages in recent memory. Western governments pressured the SWIFT global payment system into expelling several of Russia’s largest banks, barred Russian ships and airplanes from entering their ports and airspace, and imposed export controls aimed at restricting Russia’s access to various advanced technologies and key production components.

Although this sanctions barrage initially caused the Russian ruble to dip in value and inflation to spike, the shock-effect proved to be short lived. Within weeks, the ruble recovered all of its pre-conflict value and then some. Likewise, inflation reached a peak rate of 17.8% in April 2022 and then began to steadily decline, hitting 11.8% in January 2023 (a rate less than many countries in central and eastern Europe). Contrary to the expectations of many Western economists, Russia’s unemployment rate not only did not increase, but actually hit a post-Soviet record low of 3.7% in December 2022.

Despite the new financial and logistical restrictions against Russian exporters, foreign trade contacts also remained strong. Russia’s current account surplus – which measures the difference between a country’s trade outflows and inflows – reached a record high of $227.4 billion last year, an 86% increase from 2021.

Why did such unprecedented sanctions deliver such unimpressive results? Jacques Sapir, an economist at the Paris-based School for Advanced Studies in the Social Sciences, told Sputnik that the main reason was because they were based on false premises about the size and resilience of the Russian economy. A large part of the problem, he explained, was that American and European policymakers were looking at the wrong statistics.

The main metric used in the West to measure the Russian economy is nominal gross domestic product (GDP), which is calculated by simply converting its value in rubles into US dollars. Sapir argued that nominal GDP underestimated the strength of the Russian economy because it failed to account for purchasing power parity (PPP), which adjusts for differences in costs across countries. He noted that whereas Russia’s nominal GDP was comparable to Spain’s, its GDP based on PPP was roughly the same level as Germany’s.

Another key factor was the fact that the Russian economy was far less based on services than its Western counterparts. Sapir explained that although services could serve as an important source of economic growth during peacetime, they inevitably took a backseat to the manufacturing and commodities sectors during times of geopolitical turmoil. He noted that Russia still maintained a sizable industrial base and was a leading global supplier of natural gas, oil, rare earth metals, and agricultural products.

“Russia has a very specific place in the world markets and, therefore, attempting to isolate such a country would inevitably lead to an international economic catastrophe,” he said. “Unsurprisingly, a lot of countries would never agree to join efforts aimed at isolating Russia because they need trade with Russia.”

Sapir also said that the West underestimated Russia’s ability to find alternative suppliers for various types of machinery and key components used in production. He noted that although Russian imports fell substantially during the second quarter of 2022, they rebounded during the third and fourth quarters. “Russia is now importing more or less the same quantity of products that it was importing by the end of 2021,” he said.

This relatively quick recovery was due to Russia reorienting its trade flows from Europe to Asia, especially China, Sapir explained. Another important factor was that Russian companies had become fairly adept at circumventing Western sanctions with the help of counterparts in third-party countries. As a result, many European and American goods were still finding their way into the Russian market.

Rebirth of Industry

Sanctions have the potential to become a blessing in disguise for Russia, according to Konstantin Babkin, president of the Rostelmash, one of Russia’s largest agricultural equipment manufacturers.

Decades of economic integration with the West had caused Russia to sacrifice some of the industrial potential it inherited from the Soviet Union, Babkin argued. Instead of manufacturing airplanes and trucks from start to finish as it once did, Russia began to import such complex machinery from the West.

The Western sanctions imposed last year have created an urgent need for Russia to rebuild its industrial base. During a speech before the Federal Assembly on Tuesday, President Vladimir Putin declared that Russia needed to reorient its economy from selling raw materials to the West to developing its own advanced technologies and equipment.

Babkin told Sputnik that Russia possessed all the necessary conditions to support an industrial revival — immense natural resource wealth, vast swathes of available land, a market of 150 million people, and strong scientific institutions capable of training the next generation of innovators.

The main thing needed to translate Russia’s economic potential into reality is strong government support for domestic manufacturers, he said. Some of the policy measures Babkin recommended include lower interest rates and taxes, as well as new tariffs.

“Many countries have already reached the physical or spatial limits of their development – there are no more markets left to conquer, no more fields left to sow, no more opportunities for expansion. That’s why much of the modern world is experiencing such a crisis” he said. “Russia is one of the few countries, perhaps even the only country, that has plenty of room to develop further. We can grow many times over if we rely on our resources, ourselves, and our civilization.”

Sources: Public data, vedomosti.ru, forbes.ru, cbr.ru

Some Russian companies are already moving to fill newly-created niches in the domestic market. Last November, the Russian manufacturing sector experienced its largest expansion in over five years, according to a business survey by the S&P Global financial analytics firm. A surge in domestic demand was the primary driving force behind the increased output and employment.

Babkin noted that after the West imposed sanctions against Russia in 2014 over the reunification of Crimea, the share of Russian-made agricultural equipment on the domestic market jumped from 25% to 65%. He argued that the current round of sanctions could provide a similar impetus to resurrect Russian aircraft and automobile production.

“Today, the priority task in civil aviation is to launch the serial production of fully Russian-made passenger aircraft, without any foreign components, as quickly as possible” the United Air Corporation, a Russian aerospace company that is part of the Rostec state corporation, told Sputnik. The company explained that the decision of Western airliner giants Boeing and Airbus to exit the Russian market last year was forcing domestic manufacturers to not only step up aircraft production, but also start making their own engines and other key components.

For its part, the United Air Corporation plans on manufacturing 500 aircraft by 2030 to help replace Russia’s existing fleet of foreign planes, which will be gradually retired. One of its most promising projects is the MC-21, a next-generation passenger aircraft that is already in production. The main advantage of the MC-21 is its cutting-edge composite wing, which provides the plane with superior aerodynamics.

Technological Sovereignty

One of the central objectives of Western sanctions is to suffocate Russian technological innovation. When Biden unveiled the first Ukraine-related sanctions package last year, he promised that the US and its allies would impair Russia’s “ability to compete in a high-tech 21st century economy.” The technological aspect of sanctions has only become more important since then. Although Western politicians now admit that sanctions have failed to collapse the Russian economy, they still express hope that technological restrictions will stunt Russia’s progress in the long run.

That is an assumption challenged by many Russian scientists and entrepreneurs. Evgeny Nikolaev is a project manager at Health Test, a Russian company that is working to develop a machine-learning program that will help doctors to diagnose Alzheimer’s Disease in patients during the earliest stages of its development. The technology, which has no foreign analogues, is currently undergoing clinical tests at a Moscow hospital, after which it will be distributed to other medical institutions in the Russian capital.

Nikolaev said that Western sanctions have not had any meaningful impact on the project’s development, noting that all the “necessary reagents and consumables could be replaced with domestic ones or obtained through parallel importation.” At the same time, he emphasized that Russian scientists did not need foreign sponsorships in order to make breakthroughs. He noted that government institutions such as the Moscow Department of Health and the Moscow Innovation Cluster were offering the project significant support in terms of product development and practical application.

A similar argument was advanced by Valentin Makarov, president of the Russian Software Developers Association (RUSSOFT). He told Sputnik that Russia had two advantages it could rely on to keep innovating despite Western sanctions. The first was Russia’s strong scientific education, which has a legacy of excellence dating back to the Czarist-period. Additionally, Makarov argued that Russia was well positioned to build new technological partnerships with non-Western economies such as China and India.

Ironically enough, sanctions had provided Russian software and cybersecurity systems with an opportunity to show their resilience in the face of unprecedented external pressure.

“Following the start of the special military operation, we saw a manifold increase in cyber attacks against Russian systems, a ban on the use of foreign software, and the termination of support licenses for this software,“ he said. “Despite everything that happened, Russian systems continued to work as before. It turned out that giant American corporations, which dominate the global information technologies, cannot destroy the operation of these Russian systems. This showed everybody that Russia has the capacity for technological sovereignty.”

According to Makarov, the world was on the brink of a new technological order – one centered on artificial intelligence and cyber-physical systems. Instead of remaining a junior partner in the Western-led technological ecosystem, Russia needed to seize the initiative and develop its own ambitious, revolutionary projects in coordination with its allies.

One promising idea, Makarov said, was for Russia to spearhead the creation of a new Eurasian digital financial payment system. Such an initiative would not only facilitate greater regional trade, but also shield its members from Western sanctions and other forms of economic pressure.

“We cannot become leaders in the new technological order by continuing to sell oil and gas to the world market and then using those profits to buy technological systems developed by other countries,” he said. “If we do not focus on developing our own systems, in cooperation with partners from friendly countries of course, then that means we will again be dependent on someone else. Russia has a huge number of specialists capable of creating new technologies that will change the world, so we must take advantage of that.”

February 24, 2023 Posted by | Economics, Timeless or most popular | , , , , | Leave a comment

The West severely miscalculated the geopolitical ramifications of the war in Ukraine

The EU, and not Russia, has weakened since the start of the special military operation

By Ahmed Adel | February 24, 2023

Although many remember February 24 as the first anniversary of the war in Ukraine, Russia’s special military operation is actually the next phase of a wider conflict that began in 2014. This is a key point often overlooked because the narrative built in the West is that Russia’s intervention was an unprovoked invasion with the sole purpose of territorial expansionism. The international community, which the West incorrectly refers to itself as, has rejected this narrative. To the disappointment of Western leaders, most of the world has instead deepened their ties with Russia.

However, the “unprovoked invasion” narrative has been exposed in the West also as a fallacy. It is recalled that former German Chancellor Angela Merkel admitted in December 2022 that “the 2014 Minsk agreement was an attempt to give time to Ukraine.”

“It also used this time to become stronger as can be seen today. The Ukraine of 2014-2015 is not the modern Ukraine,” she said, adding that “it was clear to everyone” that the conflict had been put on hold, “yet this was what gave Ukraine invaluable time.”

Merkel’s statement confirmed that the Minsk Accords, a series of agreements which sought to end the Donbass war, was only intended to give the Ukrainian state more time to militarily strengthen. It also proves that the Western party of the Minsk Accords never intended to use this mechanism to find peace and address the concerns of local residents.
Therefore, the Russian intervention was not necessarily a surprise, and perhaps the West were even expecting it.

However, what was an absolute surprise for the West was the geopolitical and economic ramifications – all to the detriment of the West and to the advancement of Moscow.
It cannot be denied that sanctions had an impact on the Russian economy, but the European Union has demonstrated that it is nothing more than a political dwarf that has no autonomy from Washington. Sanctions have a limited effect on Russia given that it is a completely self-sustainable country, unlike Syria and Iran (which are also heavily sanctioned but without the capacity for self-sustainability).

Rather, the sanctions have actually accelerated the de-Dollorisation of the global economy and deepened the economic crisis in Europe.

Evidently, there was naivety in the West, as there was a false belief that Russia would capitulate to sanctions pressure. Instead, Europe is experiencing an economic crisis that has crushed the Middle Class through a cost-of-living crisis. Meanwhile, Russia has greater prospects for recovery compared to Germany and the UK.

According to a January forecast by the International Monetary Fund, Russia’s economy will grow faster than Germany’s while Britain’s will contract. This is a far cry from the eminent collapse of the Russian economy that was predicted when hundreds of international companies, such as McDonald’s and Boeing, withdrew from Russia and Russians were blocked from using Western financial institutions.

It is recalled that in March 2022, US Treasury Secretary Janet Yellen boasted that “the Russian economy will be devastated.” Eleven months after Yellen’s statement, the IMF predicts that the Russian economy will start growing again in 2023, expanding by 0.3% and then 2.1% in 2024. Although 0.3% growth is paltry, it is still surprisingly higher than Germany’s 0.1%, a phenomenal situation considering that it is Berlin imposing the sanctions, not Russia on Germany.
The UK is in an even worse situation. Its economy is expected to contract by 0.6%.

India and China are helping Russia alleviate the stress of decoupling from Western financial institutions and trade exchanges. Many experts believe that the 21st century is the “Asian Century” and expect the world’s major financial centres to shift from the West to the East. In this light, Russia’s exclusion from the West has left it with no choice but to strongly project to the East, something that India, China and other countries have enthusiastically taken advantage of.

The 20th century was dominated by the bipolar system and a short-lived unipolar system. Although the 21st century is multipolar in nature, the overwhelmingly dominant economic and military powers are expected to be the US and China, with a host of other Great Powers, such as Russia and India, fully capable of defending their own interests.

What the West does not realise is that in such a global system, it is Russia that hugely influences whether the US or China will triumph. Russia has effectively been given no choice but to pivot towards China. Future generations in the West will learn that this was a strategic blunder – and all for the illiberal sake of defending a neo-Nazi regime in Kiev.

The war in Ukraine was expected to be another advancement of “liberalism” and Western internationalism. However, what has transpired instead is the weakening of Western hegemony. The US expected most countries to fall in line and impose sanctions against Russia, however, this did not trend in Asia, the Islamic World, Africa, or Latin America.

Although the West is persistently and arrogantly defending the Kiev regime against the reality that Russia will triumph in the war, it continues to ruin its own reputation in the eyes of the actual international community by lambasting countries, such as India, for not following their orders. This will have long-term negative ramifications for the West as its influence is weakening and mistrust is deepening.

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

February 24, 2023 Posted by | Economics | , , , , , | Leave a comment

An Enlightened Man Among Lawyers

The Indian public interest advocate, Prashant Bhushan, lights the path forward.

By John Leake | Courageous Discourse | February 22, 2023

An old friend who loves India once told me it is the only country in which he’d met what he called an “enlightened man.” His understanding of “enlightenment” was influenced by the German philologist, Max Mueller’s translation of the Sanskrit word, Bodhi (German: Erwachen or Erleuchtung) which translates into English as “awaken” or “enlightenment.” While most of us—with our myriad desires, attachments, and fears—blunder through life, he who possesses Bodhi sees through all of the illusions and deceptions.

My friend was convinced that an enlightened man is instantly recognizable as such, because his enlightenment gives him extraordinary calm, cheerfulness, and courage. At the time I heard this, years ago, I figured my friend was just one of many westerners who have romanticized India. But then, at a conference in Delhi on February 7, I met the great Indian lawyer and public interest advocate, Prashant Bhushan.

As he was one of many people I met at the conference, I didn’t initially realize that he is a world-renowned jurist who recently persuaded the Indian Supreme Court to strike down India’s vaccine mandates as unconstitutional. The only detail I caught in our introduction was that he was a medical freedom advocate. I sat next to him on stage with Drs. McCullough and Malhotra. Before the audience was seated and the formal introductions began, I asked him about the origin of the Indian Constitution.

He had the most friendly and elegant way of speaking with great erudition and not a hint of pedantry. And though a relatively small and slightly built man, he seemed to exude an inner strength. After we spoke for a while, Dr. McCullough leaned over to me and said, “It’s not every day you get to meet a guy who argues a case before the Supreme Court and wins.”

“What?” I asked, not entirely believing my ears.

“Yeah!” McCullough said. “Prashant took on the vaccine syndicate in India and won.”

“Wow!” I exclaimed. “What a man!”

During lunch I Googled him and read his Wikipedia entry, which tells of his extraordinary career as public interest advocate for human rights, environmental protection, constitutional protection, and government accountability, performing most of his work pro bono. In a world of selfish greed and corruption, Mr. Bhushan is one of those rare, enlightened souls who really can lead mankind out of the dark.

The Hindu Times published a report on his argument before the Indian Supreme Court. It seems to me that his reasoning and his victory serve as a beacon of hope for everyone who cares about classical liberal principles and constitutional protections.

February 23, 2023 Posted by | Civil Liberties, Timeless or most popular | , , | 5 Comments

Tony Blair launches new push for biometric digital ID for all citizens

By Ken Macon | Reclaim The Net | February 22, 2023

Former UK Prime Minister Tony Blair is again promoting a controversial plan to give every British citizen a . This would entail the utilization of new biometric technology to store a person’s passport, driving license, tax records, qualifications, and their right to work status.

Sir Tony had previously attempted to introduce ID cards during his time as Prime Minister.

Tony Blair and former Conservative lawmaker William Hague have stated that a major transformation of the government with regards to technology is necessary in order to keep up with the ever-changing world.

However, there was backlash from their demands with Sir Jake Berry calling it a “creepy state plan to track you from the cradle to the grave.”

Blair and Hague revealed their plot in an article for The Times, in which they said “politics must change radically because the world is changing radically.

“We are living through a 21st-century technology revolution as huge in its implications as the 19th-century industrial revolution.”

The duo alleged that current politicians were “in danger of conducting a 20th-century fight at the margins of tax and spending policy when the issue is how we harness this new revolution to reimagine the state and public services.”

The duo demand digital IDs for every citizen – they also called for “a national health infrastructure that uses data to improve care and keep costs down, and sovereign AI systems backed by supercomputing capabilities.”

In an interview with BBC Radio 4 Blair highlighted how countries “as small as Estonia and as large as ’ are moving towards digital IDs.

“If you look at the biometric technology that allows you to do digital ID today, it can overcome many of these problems,’ Blair said.

Big Brother Watch condemned Blair for pushing for a digital identity system.

Big Brother Watch director Silkie Carlo said: “Sir Tony and Lord Hague are absolutely right about the need for the UK to take leadership in technological innovation, but this means protecting people’s rights and privacy, not reviving failed proposals for an intrusive mass digital identity system and a database state.”

Carlo added: “A sprawling digital identity system of the type described by Sir Tony and Lord Hague is utterly retrograde and would be one of the biggest assaults on privacy ever seen in the UK. The public has consistently opposed mandatory ID systems and there is absolutely nothing to suggest the public would want or support such a digital ID system now.”

Blair recently called for global organizations such as the World Trade Organization (WTO) and  (WEF) to push national governments to introduce “digital infrastructure” that monitors who has been vaccinated and who hasn’t.

February 23, 2023 Posted by | Civil Liberties, Full Spectrum Dominance | , , , , | 1 Comment

Russia makes claim over West’s ‘hybrid war’

RT | February 15, 2023

The West is attempting to use the Ukraine conflict to portray Russia as a “rogue state” in the eyes of the world, Foreign Minister Sergey Lavrov said on Wednesday. He stressed that the strategy has not been successful.

“The US and its satellite states are waging an all-encompassing hybrid war that they have long been preparing for, and are using Ukrainian radical nationalists as a battering ram against us,” Lavrov said in a speech in the lower house of the Russian parliament, the State Duma.

“They are not even trying to hide the goal of this war: it is not only to defeat our country on the battlefield and destroy our economy, but also to surround us with a ‘sanitary cordon’ and turn us into a type of a rogue state.”

The statement came the same day that European Commission President Ursula von der Leyen unveiled proposals for a new sanctions package against Russia, including additional export bans and measures to prevent the bypassing of restrictions.

Lavrov said that the West’s efforts to isolate Russia have failed because Moscow continues to develop relations with partners in other areas of the globe. He added that nations that have refused to back the “unprecedented” sanctions make up the majority of the world’s population.

The countries of the Asia-Pacific, the Middle East, Africa, and South America “don’t want to live in accordance with the West-centric order,” the Russian minister stated. “So it makes perfect sense why three-quarters of the world’s countries have not joined the anti-Russian sanctions and have a reasonable view regarding the situation in Ukraine.”

China and India are among the major economies that have refused to impose restrictions on Moscow. Denis Alipov, Russia’s ambassador to New Delhi, said on Tuesday that sanctions “had an opposite effect” and facilitated more trade and closer cooperation between Russia and India.

Beijing, meanwhile, has accused the US of fueling the Ukraine conflict and trying to weaponize the world economy for its own benefit.

February 15, 2023 Posted by | Economics, Russophobia | , , , , , , | 1 Comment

Will Japan and India become permanent members of the UN Security Council?

By Petr Konovalov – New Eastern Outlook – 14.01.2023

On December 12, 2022 in London, during a meeting of the British Foreign, Commonwealth and Development Office, its head, James Cleverly, said that he was in favor of expanding the number of permanent members of the UN Security Council (UNSC) by including Japan, India, Brazil and Germany.

The British diplomat believes that the current world order allows a much larger number of people to live much better than before, but today it needs some changes. According to Cleverly, the UK is interested in reflecting the needs of as many countries as possible in the UN. He also noted that the inclusion of Japan, Brazil, India and Germany would allow London to expand interaction with these countries and thus accelerate the growth of global prosperity.

The British Secretary of State for Foreign, Commonwealth and Development Affairs said that the established system of international relations, which was approved as a result of the victory of the Allies after the Second World War, is allegedly outdated due to the fact that since 1950 the volume of world trade has increased by about 40 times, which has led to a radical change in the balance of power in the world. Furthermore, he emphasized that demographic changes had also made their own adjustments to the modern world order.

The rhetoric of the British leadership is quite logical. The UK no longer represents the military and economic power that it used to be during the second half of the previous century. London is aware that it needs allies to support it internationally. The countries listed by James Cleverly, which, in his opinion, should become permanent members of the UN Security Council, maintain close relations with the US and the UK and are highly likely to pursue a common policy with London and Washington on many issues.

In accordance with the norms of international law, the UN Charter can be revised only with the unanimous consent of all the permanent members of the UN Security Council. France, which is a permanent member of the UN Security Council and is loyal to the policy pursued by Washington and London, will support the proposal of the UK, however, Russia and China, who are also permanent members of the UN Security Council, may not approve its expansion, as this may upset their geopolitical plans.

Russia welcomes the inclusion of India and Brazil in the list of permanent members of the UN Security Council. The Russian Federation has fairly warm relations with these states, and it is unlikely that Moscow will have any international disputes with them in the foreseeable future. Back in 2010, Russian President Vladimir Putin, who was serving as Prime Minister of the Russian Federation that year, during a meeting with Indian diplomats, said that India should be included in the list of permanent members of the UN Security Council. Subsequently, the Russian president has always adhered to this rhetoric. As for Russian-Brazilian relations, they have always been at a high level, and Lula da Silva, elected for the third time as President of Brazil in October 2022, is known for his pro-Russian views. During the previous presidency of Lula da Silva, the international organization BRICS was created (in 2006), which includes Brazil, Russia, India, China and South Africa. Consequently, the Russian Federation is likely to approve the inclusion of Brazil in the list of permanent members of the UN Security Council.

However, the Kremlin has a negative stance when it comes to the inclusion of Germany and Japan in the list of permanent members of the UN Security Council, since these states are pursuing an unfriendly policy towards Russia, and Tokyo completely casts doubt on the territorial integrity of the Russian Federation, claiming control over the Kuril Islands.

It should be noted that the inclusion of Germany, Brazil, Japan and India in the list of permanent members of the UN Security Council is not beneficial for China either, since these states maintain good relations with the United States and will adhere to a pro-American position in numerous international disputes.

Germany and Brazil are in close economic relations with London and Washington and therefore, with a high degree of probability, they will act in the interests of the US and the UK if they become permanent members of the UN Security Council. Of course, China will prevent such a development of events.

In China, the memory of Japan’s war crimes against the Chinese population during the Second World War is still fresh. Beijing also disapproves of Tokyo’s pro-American policy and is wary of the impressive number of US military installations in Japan.

Relations between Beijing and New Delhi are also at a fairly low level. India and China are competing for influence in places like Bangladesh and Sri Lanka. The Chinese authorities do not want the strengthening of Indian international influence and will do everything in their power to prevent India from being included in the list of permanent members of the UN Security Council.

It is important to emphasize that skirmishes have periodically occurred between Indian and Chinese border guards over the past 45 years. As recently as December 9, 2022, another conflict broke out between the military of China and India along the Indian line of actual control in the Tawang district in the west of the Indian state of Arunachal Pradesh in an area of the disputed territory. As a result of the collision, the military personnel of the two countries were slightly injured.

Despite the rationality of the idea of expanding the list of permanent members of the UN Security Council, Russia and China are unlikely to take such a step. Russia will not vote for granting this privilege to Germany and Japan, which today openly support the Ukrainian army participating in hostilities against the Russian Armed Forces. In turn, China is not interested in increasing the clout in the international arena of Tokyo and New Delhi, which are on cool terms with Beijing. Also, China will not give an opportunity to Germany and Brazil to become permanent members of the UN Security Council since both countries sympathize with the policies of the states of the Western bloc. As noted above, without the unanimous consent of all the permanent members of the UN Security Council, changes in the norms of international law are impossible.

The West is pursuing its own interests and engaging in geopolitical confrontation with China through the Quadrilateral Security Dialogue (QUAD), which includes Australia, the US, Japan and India. Within the framework of this organization, annual military exercises of the participating countries are held.

On May 24, 2022, a QUAD summit was held in Tokyo, the main agenda of which, according to Australian Prime Minister Anthony Albanese, was to discuss how to counter the growth of China’s influence in East and Southeast Asia.

As it stands now, there will be no expansion in the number of countries that are permanent members of the UN Security Council any time soon, since this comes into conflict with the plans of several current permanent members of the UN Security Council. However, the absence of Japan and India in the UN Security Council is offset by their participation in the QUAD, as well as their close cooperation with the United States in the field of defense.

January 14, 2023 Posted by | Aletho News | , , , , , , | 1 Comment

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