6 Warning Signs from Biden’s First Week in Office
By Kit Knightly | OffGuardian | January 27, 2021
It’s been a busy first week for the 46th President [sic] of the United States, there are the 20,000 troops occupying the capitol city to organise, as well as the totally unprecedented show-trial of his immediate predecessor.
You know, usual democracy type stuff.
On top of that, Biden has now signed at least 37 executive orders in his first week. The record for any President, and more than the previous four presidents combined.
What do these orders, or any of his other moves, tell us about the future plans of the recently “elected” administration? Nothing good, unfortunately.
1. VACCINATION PASSPORTS
I still remember people claiming the introduction of vaccination passports (or immunity passes or the like) was just a “conspiracy theory”, the paranoid fantasy of fringe “covidiots”. All the way back in December, when they were getting fact-checked by tabloid journalists who can’t do basic maths.
These days they are rebranded as “freedom certificates” which are “divisive, politically tricky and probably inevitable”.
Many countries are already preparing to roll it out, including Iceland the UK and South Africa. Biden’s “Executive Order on Promoting COVID-19 Safety in Domestic and International Travel” adds the US to this list:
International Certificates of Vaccination or Prophylaxis. Consistent with applicable law, the Secretary of State, the Secretary of HHS, and the Secretary of Homeland Security (including through the Administrator of the TSA), in coordination with any relevant international organizations, shall assess the feasibility of linking COVID-19 vaccination to International Certificates of Vaccination or Prophylaxis (ICVP) and producing electronic versions of ICVPs.
2. CABINET APPOINTMENTS
Biden’s cabinet is praised as the “most diverse” in history, but will hiring a few non-white people really change the decades-old policies of US Imperialism? It certainly doesn’t look like it.
His pick for Under Secretary of State is Victoria Nuland, a neocon warmonger and one of the masterminds of the Maidan coup in Ukraine in 2014. She is married to Robert Kagan, another neocon warmonger, co-founder of the Project for a New American Century and senior fellow at the Brookings Institute and one of the masterminds behind the 2003 invasion of Iraq.
The incoming Secretary of State, Antony Blinken, is also an inveterate US Imperialist, arguing for every US military intervention since the 1990s, and criticised Trump’s decision to withdraw from Syria.
Biden’s pick for Defence Secretary is the first African-American ever appointed to this role, but former General Lloyd Austin is hardly going be some kind of “progressive” voice in his cabinet. He’s a career soldier who retired from the military in 2016 to join the board of Raytheon Technologies, an arms manufacturer and military contractor.
As “diverse” as this cabinet may be in skin colour or gender… there is most certainly no “diversity” of opinion or policy. There are very few new faces and no new thoughts.
So, it looks like we can expect more of the same in terms of foreign policy. A fact that’s already been displayed in…
3. IRAQ…
Despite heavy resistance from the military and Deep State, Donald Trump wanted to end the war in Iraq and pledged to pull American troops out of the country. This was one of Trump’s more popular policies, and during the campaign Biden made no mention of intending to reverse that decision.
Then, on the very day of Biden’s inauguration, ISIS conducted their deadliest suicide bombing for over three years, and suddenly the situation was too unstable for the US to leave, and Biden is being forced to “review” Trump’s planned withdrawal.
The Iraqi parliament has made it clear it wants the US to take its military off their soil, so any American forces on Iraqi land are technically there illegally in contravention of international law. But that never bothered them before.
4. … AFGHANISTAN…
Turns out the US can’t withdraw from Afghanistan either. Last February Trump signed a deal with the Taliban that all US personnel would leave Afghanistan by May 2021.
Joe Biden has already committed to “reviewing” this deal. Sec. Blinken was quoted as saying that Biden’s admin wanted:
“to end this so-called forever war [but also] retain some capacity to deal with any resurgence of terrorism, which is what brought us there in the first place”.
As a great man once said, nothing someone says before the word “but” really counts. The US will not be withdrawing from Afghanistan, and if there is any public pressure to do so, the government will simply claim the Taliban broke their side of the deal first, or stage a few terrorist attacks.
5. … AND SYRIA
Far from simply continuing the on-going wars, there are already signs Biden’s “diverse” team will look to escalate, or even start, other conflicts.
Syria was another theatre of war from which Donald Trump wanted to extricate the United States, unilaterally ordering all US troops from the country in late 2019.
We now know the Pentagon ignored those orders. They lied to the President, telling Trump they had followed his orders… but not withdrawing a single man. This organized mutiny against the Commander-in-Chief of the US Armed Forces was played for a joke in the media when it was finally revealed.
There will be no need for any such duplicity now that Biden is in the Oval Office, he was a vocal critic of the decision to withdraw, claiming it gave ISIS a “new lease of life”. Indeed, within two days of his being sworn in a column of American military vehicles was seen entering Syria from Iraq.
6. DOMESTIC TERRORISM
We called this before the inauguration. They made it just too obvious. Before the dirty footprints had been cleaned from Nancy Pelosi’s desk it was clear where it was all going.
Within 24 hours of being sworn in as president, Biden had ordered a “review of the threat posed by domestic terrorism”.
As usual, the press are laying down the covering fire for this. Talking heads have been busily comparing MAGA voters to al Qaida in television interviews. The Washington Post and New Yorker journal have cut-and-paste pieces about this supposed threat. Politico published an article titled “Biden vowed to defeat domestic terrorism. The how is the hard part”, which outlines what Biden could do:
Direct the Justice Department, FBI and National Security Council to execute a top-down approach prioritizing domestic terrorism; pass new domestic terrorism legislation; or do a bit of both as Democrats propose a crack down on social media giants like Facebook for algorithms that promote conspiracy laden posts.
That last part is key. The “crack down on social media” part, because the anti-Domestic Terrorism legislation will likely be very focused on communication and so-called “misinformation”.
Alexandra Ocasio-Cortez has publicly called for a congressional panel to “rein in” the media:
We’re going to have to figure out how we rein in our media environment so you can’t just spew disinformation and misinformation,”
And who will be the target of these crack downs and new legislations? Well, according John Brennan (ex-head of the CIA and accomplished war criminal), practically anybody:
They’re casting a wide net. Expect “extremist”, “bigot” and “racist” to be just a few of the words which have their meanings totally revised in the next few months. “Conspiracy theorist” will be used a lot, too.
Further, they are moving closer and closer toward the “anyone who disagrees with us is literally insane” model. With many articles actually talking about “de-programming” Trump voters. The Atlantic suggests “mental hygiene” would cure the MAGA problem.
Again AOC is on point here, clearly auditioning for the role of High Inquisitor, claiming that the new Biden government needs to fund programs that “de-radicalise” “conspiracy theorists” who are on the “spectrum of radicalisation”.
*
As I said at the beginning, it’s been a busy week for Joe Biden, but you can sum up his biggest policy plans in one short sentence: More violence overseas, less tolerance of dissent and strict clampdowns on “misinformation”.
How progressive.
Iraqi MPs outraged by US decision to review troop drawdown
Press TV – January 27, 2021
Iraqi parliamentarians have given fiery responses to a decision coming out of Washington to review the previous US administration’s plan to draw down the number of American forces in the Arab country.
Iraq’s Arabic-language Baghdad Today news agency reported the reactions that were issued by MPs Hassan Shaker al-Ka’abi, head of the Badr parliamentary bloc, and Mukhtar al-Mousavi, representative of the Fateh Alliance, to which Badr is affiliated, on Wednesday.
The US’s new Defense Secretary Lloyd Austin said during his confirmation hearing last week that he was to reexamine the plan announced by the administration of former president Donald Trump for reducing the number of troops in Iraq and Afghanistan each to 2,500.
Aside from throwing hopes of the drawdown into question, Austin’s remarks also flew in the face of a decision by the Iraqi parliament last January for all the US-led troops to leave the Iraqi soil. The legislature passed the law following the US’s assassination of top Iranian and Iraqi anti-terror commanders, Lieutenant General Qassem Soleimani and Abu Mahdi al-Muhandis, in a drone strike in Baghdad.
The Iraqi lawmakers insisted that the parliamentary ratification had to be implemented at the end of the day.
Ka’abi said the legislative body had made its final decision in this regard, and referred to the Iraqis’ millions-strong rallies in the aftermath of the assassinations to protest Washington’s gall to resort to such barbaric atrocity in violation of the Arab country’s sovereignty and the international law.
Mousavi said the parliamentary law was definitive and the Biden administration had to understand this.
Iraq does not need American or any other foreign forces on its soil, he said, urging Iraqi Prime Minister Mustafa al-Kadhimi’s government to act on the law regardless of the Biden administration’s position.
Austin’s spokesman John Kirby, however, defended Washington’s revisiting of the troop level decision, saying, “It stands to reason that the incoming administration will want to better understand the status of operations in both places and the resources being applied to those missions.”
He also cast serious doubt on any speculations that Washington had finally begun to listen to those protesting its motto of trying to “defend America” by deploying troops thousands of miles away from America’s own borders.
“Nothing has changed about our desire to defend the American people from the threat of terrorism, while also making sure we are appropriately resourcing our strategy,” Kirby added.
Ka’abi warned likewise that Joe Biden’s succession after Trump did not mean that Washington had either stopped wishing the Arab country and its resources ill or shuttered its regional projects, including providing support for the Israeli regime.
“The US is hopeful of and has set its eyes on sustaining its presence in Iraq,” he said.
The lawmaker, meanwhile, expressed regret that “Iraq’s troubles and Daesh elements’ movements [there] are the result of the US presence.”
“We are certain that Daesh is America’s creation and functions at its behest in this country,” he added.
The Takfiri terror group of Daesh started its attacks in Iraq in 2014, creating an excuse for the US and scores of its allies to significantly ramp up the Western-led military presence in the country.
The Western states retain their presence there, although, Baghdad and its allies defeated Daesh in late 2017.
Biden’s Interventionist Agenda
By Stephen Lendman | January 26, 2021
Biden/Harris regime interventionist dirty tricks began straightaway in office.
Russia was targeted last weekend by made-in-the-USA rent-a-mobs in Moscow, St. Petersburg and other cities — more of the same likely ahead.
Instead of extending an olive branch for improved bilateral relation, dirty business as usual took precedence.
Much the same in various forms is likely against China, Iran, Venezuela, and other nations free from US control.
That’s how the scourge of US imperialism operates. No one is safe from its war on humanity anywhere worldwide.
Days before Biden/Harris replaced Trump, a large US military convoy entered Syria from Iraq.
Reportedly, it was to reinforce illegally established Pentagon bases east of the Euphrates River.
Instead of withdrawing US forces from the country as Trump once promised but never followed through on, is the Pentagon’s presence in Syria being expanded?
On day one of Biden’s term in office began, another large-scale US military convoy entered Syria from Iraq.
Syrian state media reported that a major Pentagon buildup is underway, adding:
“(A) convoy… of 40 trucks loaded with weapons and logistical materials, affiliated to the so-called international coalition have entered in Hasaka countryside via al-Walid illegitimate border crossing with north of Iraq, to reinforce illegitimate bases in the area.”
“Over the past few days, helicopters affiliated to the so-called international coalition have transported logistical equipment and heavy military vehicles to Conoco oil field in northeastern Deir Ezzor countryside, after turning it into military base to reinforce its presence and loot the Syrian resources.”
The Biden/Harris regime is infested with some of the same hawks responsible for launching aggression against Syria and Libya in 2011.
Is what’s ongoing prelude for escalating war in Syria instead of ending what’s gone on for the past decade that’s been responsible for mass slaughter and destruction?
At a Security Council Session last week, Syria’s UN envoy Bashar al-Jaafari said the following:
“The new US (regime) must stop acts of aggression and occupation, plundering the wealth of my country, (and) withdraw its occupying forces, and stop supporting (ISIS and other jihadists), illegal entities, and attempts to threaten Syria’s sovereignty, unity and territorial integrity.”
“The American occupation forces continue to plunder Syria’s wealth of oil, gas and agricultural crops, burning and destroying what it cannot steal.”
The above remarks and similar ones when made fall on deaf ears in Washington.
US aggression in Syria continues with no end of it in prospect, the same true for Afghanistan, Yemen, and numerous other nations by illegal sanctions and other dirty tricks.
Since the US launched war on Syria a decade ago, Biden falsely blamed President Assad for US high crimes committed against the country and its people, along with illegitimately calling for him to step down.
It remains to be seen how Biden’s agenda toward Syria unfolds ahead.
According to his campaign’s foreign policy statement:
“Biden would recommit to standing with civil society and pro-democracy partners on the ground (sic).”
“He will ensure the US is leading the global coalition to defeat ISIS (sic) and use what leverage we have in the region to help shape a political settlement to give more Syrians a voice (sic).”
The US is committed to eliminating democracy wherever it exists, prohibiting it at home.
Instead of waging peace, it prioritizes endless wars of aggression in multiple theaters
ISIS, al-Qaeda, and likeminded terrorists groups were created by the US for use as proxy fighters in Syria, Iraq and elsewhere.
In December, the UN accused the US of obstructing Syria’s ability to rebuild, along with enforcing illegal sanctions to suffocate its people into submission to Washington’s will.
According to the UN, the US is running “roughshod over human rights, including the Syrian people’s rights to housing, health, and an adequate standard of living and development.”
What Obama/Biden began and Trump continued, Biden/Harris are likely to pursue — an agenda of endless US war on Syria and its long-suffering people, perhaps intending to escalate things ahead.
In response to Biden/Harris interventionism in Russian cities last weekend, China’s Global Times accused the US of “hyping up the protests,” adding:
“Just as global analysts have predicted, the (Dems) now in majority political power (are) not a good thing for Russia” or any other nations free from US control.
What happened last weekend shows that Biden/Harris are committed to “interventionism.”
Dems “will not miss the opportunity to interfere in the internal affairs of Eurasia, or anywhere in the world.”
On Monday, China’s Foreign Ministry spokesman Zhao Lijian stressed Beijing’s “oppos(ition) (to) external interference in the internal affairs of a sovereign country.”
Biden’s press secretary Jennifer Psaki expressed support for unlawful interventionism against Russia, China, and other nations, saying:
“He’s committed to stopping… abuses on many fronts (sic), and the most effective way to do that is through working in concert with our allies and partners to do exactly that (sic).”
Under both wings of its war party, the US is committed to seek regime change in all nations unwilling to sell their souls to Washington.
Biden’s entire public career included pursuit of this diabolical agenda.
He and dark forces in charge of directing his domestic and geopolitical policies are virtually certain to continue US war on humanity without letup ahead.
Hezbollah: Terrorist Bombings Suspiciously Return to Iraq after Official and Public Calls for Withdrawal of US Occupation Troops
Hezbollah Media Relations | Al-Manar | January 21, 2021
Hezbollah firmly condemned the twin terrorist blasts which rocked Baghdad on Thursday and claimed dozens of martyrs and wounded after targeting a crowded market in the city.
In a statement issued on Thursday, Hezbollah considered it as suspicious that the terrorist bombings have returned to Iraq after a period of stability and amid a surge of popular and official demands for the withdrawal of the US occupation forces from the country.
The US administration responded to those calls by imposing more sanctions on the Hashd Shaabi Committee and its dear commanders in order to expose Iraq to the threats of ISIL and other terrorist groups, according to the statement.
In response to the brutal crime, the Iraqis must be alert and remain committed to, unity, independence, freedom, rejection of the US occupation, and exertion of more efforts to pursue the remnants of the terrorist groups in the country, the statement emphasized.
Hezbollah finally offered deep condolences to the Iraqi officials, people and the martyrs’ families, hoping that Holy God grants the wounded a speedy recovery and the entire Iraqi nation security as well as stability.
Iraq grants $20bn projects to Chinese companies
MEMO | January 17, 2021
Iraq has given construction projects worth $20 billion in the southern province of al-Muthanna to a consortium of Chinese companies, an Iraqi official said on Sunday, Anadolu Agency reports.
“The projects include the construction of a power station and a factory for floors and porcelain with a production capacity of 32,000 m2 per day, and a factory for ceramic walls and façades with a capacity of 36,000 m2 per day,” Adel Al-Yasiri, the head of the al-Muthanna Investment Authority, said in a statement.
He added that an initial approval has been granted to establish the projects.
“The first phase of the projects amounts to $2 billion where two sites have been prepared near the Samawah refinery for the companies to complete the remaining procedures,” he said.
Other projects include the construction of a sanitary ware factory with a capacity of 360 m3 per day, a ceramic factory for accessories with a capacity of 108,000 m2 per month, and a factory for papers and 125 million cardboards per month.
The Kurds have Once Again been Abandoned by their “American Brothers”
By Valery Kulikov – New Eastern Outlook – 28.12.2020
Yet again thrown by their “older American brothers” to the winds of fate, the Kurds in the Levant nowadays are not living through the best of times. On the border running between Syria and Iraq, a new armed conflict entailing human casualties is unfolding, one which demonstrates, among other things, a clear lack of unity among the Kurds, and that so-called Kurdistan is divided into parts ruled by various leaders, many of whom are competitors, and often almost irreconcilable enemies. Against this backdrop in the past few years, fierce battles between Kurdish formations have begun to occur more and more frequently, with the warring parties, while losing their fighters, the warring parties, concentrating their forces along the border in anticipation of new clashes.
The Syrian Kurds blame their Iraqi compatriots from the Peshmerga group for causing this conflict, including preparing for war in the Syrian Arab Republic. So, according to the position announced in ANF News by the Syrian Kurds, since October the Kurdistan Democratic Party (KDP) has been organizing provocations in South Kurdistan. The KDP, controlled by the family of Iraqi Kurdish leader Barzani, has been accused of both working closely with Turkey in various areas, including intelligence gathering, spreading propaganda, and logistics, and fueling domestic conflicts that could lead to civil war.
In October, Peshmerga proclaimed that an attack had been committed by Syrian Kurds on an oil pipeline, which resulted in oil exports from Kurdistan to Turkey being suspended.
On November 4, local media outlets reported that armed clashes broke out between Peshmerga forces and Kurdistan Workers’ Party militants in the area of Duhok, which resulted in the death of one Iraqi Kurdish fighter and injuries for three others.
On December 15, General Mazloum Abdi, who is the commander-in-chief of the Kurdish-Arab “Syrian Democratic Forces”, which was created by the United States, accused Iraqi Kurds of attacking and wounding three SDF members.
On December 16, the Iraqi Kurdistan regional authorities announced that Syrian armed groups from the YPG (which forms the backbone of the SDF) attacked bases and positions held by the Iraqi Peshmerga near the border. Syrian Kurdish leaders denied these accusations, calling them false, and leveled similar accusations toward Iraqi tribesmen themselves.
Local observers note that Iraqi Kurds are being transferred to the Syrian front with support provided by Turkish combat drones. It is worth noting that Ankara considers the YPG to be the Syrian wing of the Kurdistan Workers’ Party, which is labeled as a terrorist group in Turkey; this was used as the rationale for it to invade Rojava last October, displacing hundreds of thousands of civilians. Selahattin Demirtas, the co-chairman of Turkey’s largest Kurdish People’s Democratic Party, has been behind bars for the fourth year on charges of “supporting terrorism”. To mitigate the influence of this Kurdish movement, which is represented in the Turkish parliament, and to sow more discord in the Kurdish community, Turkey is preparing to organize a new Kurdish party with support from the country’s ruling Justice and Development Party.
Regarding the military potential possessed by Kurdish groups in Syria and Iraq, it should be specified that both sides have virtually full-fledged armed forces that have been equipped with help from “foreign players”. Washington and Ankara are the ones helping the Iraqi Kurds. The Syrian Kurdish groups were financed, armed, and trained by the United States and its allies in the anti-terrorist coalition. At the same time, it is evident that both sides have been lent support by Washington, as well as used by it in the struggle for influence, power, and oil – both in Syria and Iraq. On top of that, the United States essentially put its seal of approval on the defeat of the Kurdistan Workers’ Party – a party recognized by them as terrorists in the European Union – in the Syrian Arab Republic and Iraq, where the main bases that the PKK has are located since their forces were defeated in Turkey.
In recent years, Trump has effectively lost interest in supporting the Kurds in the region, and even announced in October 2019 that American troops would be withdrawn from the area, and this time would not defend the Kurds. After that, Turkish aircraft started to attack the region and the positions that were held by the Kurds.
Donald Trump stated his position on the Kurds and the reason why the United States is abandoning them yet again on his Twitter page a year ago, noting in particular that the Kurds, an Iranian ethnic group, did not help the United States during WWII – including during the invasion of Normandy. It seems that the US president clearly drew on this kind of “extensive expertise” in WWII history from an article by Kurt Schlichter in the publication Townhall – which praises Trump’s policies – that stated: “The Kurds helped destroy DAESH (a terrorist group banned in the Russian Federation) … But let’s be honest: the Kurds did not come to help us in Normandy, Incheon, Khe Sanh, and Kandahar”. Well, what else can be expected for the Kurds from their “elder American brothers”?
The processes among the Kurds, which began in 2019 after another episode involving betrayal by the United States, were described in sufficient detail by The New York Times. Today, these processes have intensified, as have Turkey’s operations against the Kurds in Syria. One of the very hot spots in this regard was the city of Ain Issa in the northern part of the Raqqa Governorate, where Turkey has stepped up its shelling of Kurdish positions. For example, on the evening of December 17, the Turkish army and militants allied with it struck a powerful blow to the positions held by the predominantly Kurdish “Syrian Democratic Forces” in the area of the city of Ain Issa, attacking two nearby villages, and this forced SDF groups to abandon these positions and regroup their forces to keep the enemy from advancing any further. On the night of December 22, pro-Turkish forces ratcheted up the intensity of their strikes on the city of Ain Issa and its environs, and the Turkish military itself switched to using heavy artillery to strike the northern part of the Raqqa Governorate.
Under these conditions, representatives of the Russian and Syria military held talks on December 22 with representatives of Kurdish autonomous organizations – with participation on the part of Turkish officers – to try to ease tensions, but the parties did not reach any agreement. Representatives from the Turkish military demanded the withdrawal of all militants from the SDF, promising to stop the attacks by pro-Turkish criminal groups on Ain Issa if this occurs, although Ankara had previously denied that the militants were acting on its instruction.
The situation remains filled with tension, despite the measures taken by Russia to help foster stabilization.
US plan to blacklist Iraqi Badr Organization as terrorist meant to protect Israel: Official
Press TV – December 13, 2020
A senior member of the Badr Organization, whose group is a part of the Iraqi Popular Mobilization Forces (PMU), also known by their Arabic name Hashd al-Sha’abi, has slammed Washington’s attempts to classify his organization as terrorist, stressing that such measures are meant to protect the Israeli regime.
“We do not care about the White House’s efforts to place the Badr Organization on the [so-called] US terror blacklist. Badr is an organization that has its own supporters and institutions. It is represented by a parliamentary faction and has more than 50 legislators in Fatah (Conquest) Alliance,” Qusay al-Anbari, a spokesman for the organization, told Arabic-language al-Ahad news agency on Saturday.
He added, “Badr Organization is a part of the Iraqi political system and nation, and will not be affected by such evil plots. Everyone knows that the United States is working to protect the Zionist regime through various means, and is fighting resistance groups to prevent them from defending Palestine and the Arab world.”
The remarks come as the US Congress is seeking to enact a new legislation that would designate the Badr Organization as a terror group, according to a copy of the bill obtained exclusively by the Washington Free Beacon newspaper.
The newspaper said that a member of the House Foreign Affairs Committee, Representative Joe Wilson, is leading such efforts.
Back on October 18, a political adviser to Iraqi officials and leading member of the State of Law Coalition said the United States is trying to eradicate Hashd al-Sha’abi by force and has even devised an action plan for such a purpose.
Saad al-Muttalibi told Arabic-language al-Nujaba television network in an interview at the time that not only had Iraqi authorities been informed of the plan, but also some political factions.
Muttalibi noted that a number of US state institutions have come to the conclusion that Hashd al-Sha’abi can only be removed from Iraq’s arena by military force.
He went on to say that Washington intends to assassinate some high-ranking Hashd al-Sha’abi commanders and instigate clashes with other Iraqi armed forces as part of preparation for the total annihilation of the PMU.
Hashd al-Sh’abai fighters have played a major role in the liberation of Daesh-held areas to the south, northeast and north of the Iraqi capital Baghdad, ever since the terrorists launched an offensive in the country in June 2014.
Back in November 2016, the Iraqi parliament approved a law giving full legal status to the fighters. It recognized the PMU as part of the national armed forces, placed the forces under the command of the prime minister, and granted them the right to receive salaries and pensions like the regular army and police forces.
On March 27, the New York Times reported that the Pentagon had ordered a secret directive, which called on US military commanders to prepare a campaign against Kata’ib Hezbollah, which is part of Hashd al-Sha’abi.
But the United States’ top commander in Iraq at the time, Lieutenant General Robert P. White, warned that such a campaign could be bloody and counterproductive.
China to bail out Iraq in multibillion dollar oil deal
MEMO | December 10, 2020
Iraq is currently deciding whether to go ahead with a multibillion dollar oil deal with China which will bail the country out as part of the effort to solve Baghdad’s worsening economic crisis. The deal comes after SOMO, Iraq’s state agency in charge of oil exports, welcomed bids from various oil traders and companies in a letter issued last month.
That resulted in “several offers” being made by various companies. These were then evaluated by Prime Minister Mustafa Al-Kadhimi, reported Bloomberg, which quoted cabinet spokesman Hassan Nadhim.
In the Iraqi government’s bid conditions, SOMO said that the successful company would purchase four million barrels of oil per month, or around 130,000 per day, with the first year’s supply being paid for up front. The deal is meant to last for five years.
In return for supplying oil to the winning bidder, Iraq will receive $2 billion for a fraction of the promised quantity of oil, with the balance paid later. The barrels of oil are effectively security for a loan.
The winning bidder turned out to be ZhenHua Oil Co., a major state-owned company in China with ties to the Chinese military. It is the latest example of China’s international lending strategy, in which state-controlled banks and trading organisations lend money to oil-rich countries struggling to keep afloat financially, such as Venezuela, Ecuador, Angola and now potentially Iraq.
If Prime Minister Al-Kadhimi signs the deal, then it would not be the first time that the company has dealt with Iraq. ZhenHua Oil, which trades around 1.3 million barrels per day of oil and other products, began a joint-venture with SOMO back in 2018 in order to help market Iraqi oil in China to increase exports. That venture was later scrapped.
Iraq’s economy and oil industry suffered greatly from the oil price crash earlier this year, after Russia and Saudi Arabia triggered an oil price war in March over a dispute over oil production.
In September, Iraq’s crude oil exports fell by six per cent and last week its oil minister acknowledged that the industry is in a critical condition due to the coronavirus pandemic.
See Also:
Iraq eyes construction deals with China in return for oil sales

