MoD confirms Britain is arming Saudi Arabia in Yemen conflict
RT | June 19, 2015
Britain’s Ministry of Defence has confirmed it is providing technical support and arming Saudi Arabia in its ongoing war against Yemen, RT has learned.
An MoD spokesperson said the UK’s assistance to Saudi Arabia includes providing “precision guided weapons,” but added the British government had been assured they will be used in compliance with international law.
Anti-arms trade campaigners condemned Britain’s support for the Gulf monarchy, claiming the UK cares more about arms sales than human rights and democracy.
RT contacted the MoD to ask if British weapons are being used in Saudi airstrikes on Yemen and if the UK is providing assistance to the Saudi-led coalition.
An MoD spokesperson replied: “The UK is not participating directly in Saudi military operations. We are providing support to the Saudi Arabian Armed Forces and as part of pre-existing arrangements are providing precision guided weapons to assist the Saudi Air Force.
“The use of these weapons is a matter for the Saudis but we are assured that they will be used in compliance with international law.”
The MoD’s response confirms suspicions held by anti-arms trade campaigners that Britain is providing support for a war that top Yemeni academics based in the West have branded “illegal.”
Andrew Smith of Campaign Against the Arms Trade (CAAT) said: “The Saudi bombing has created a humanitarian catastrophe and now we know the UK weapons have contributed to it.”
“These weapons have not just given military support to the bombardment, they have also provided a strong political support and underlined the closeness between the UK and Saudi governments.”
“With the destruction of Yemen and the intensifying crackdown on dissent in Saudi Arabia, the UK government is sending the message that human rights and democracy are less important than arms sales,” he added.
CAAT said the “precision guided weapons” used by the Saudi Air Force are likely to be Eurofighter Typhoons or Tornado jets.
Saudi Arabia has spent an estimated £2.5 billion upgrading its fleet of 73 Tornados as part of a deal negotiated with UK-based arms manufacturers BAE Systems.
Saudi Arabia and the UK have long had close dealings in the arms trade. Saudi Arabia is Britain’s largest customer for weapons and the UK is the Gulf nation’s single biggest supplier, according to CAAT. … Full article
Russia Iran oil-for-goods deal on – Kremlin
Russian President Vladimir Putin (R) and Iranian President Hassan Rouhani (RIA Novosti – Aleksey Nikolskyi)
RT | April 14, 2015
Russian President Vladimir Putin’s press secretary, Dmitry Peskov, confirmed the oil-for-goods deal between Moscow and Tehran is “absolutely” a reality and has begun.
Russia has started supplying grain, equipment and construction materials to Iran in exchange for crude oil under the barter deal announced by Russia’s Ministry of Foreign Affairs.
“Absolutely! Of course,” Kremlin spokesman Dmitry Peskov said when asked by reporters on Tuesday if the statement the Ministry of Foreign Affairs made on Monday was accurate, and the exchange had indeed started. “Focus on the statement of the Ministry of Foreign Affairs,” Peskov said.
On Monday, Russian Deputy Foreign Minister Sergei Ryabkov made the details of the trading partnership public.
Moscow and Tehran have been hashing out the deal’s small print since early 2014. A big step was taken in August when Russia’s Energy Minister Aleksey Miller and his Indian counterpart Bijan Namdar Zanganeh signed a five-year memorandum
According to Energy Minister Alexander Novak, Russia hasn’t yet received any Iranian oil.
Much of Iran’s oil reserves – the world’s fourth largest – remain untapped. Western sanctions put the brakes on discovery and exploration in the oil and gas industries.
Moscow may buy up to 500,000 barrels of Iranian oil per day, which would help Iran bring the 20-30 million barrels of crude oil they have in storage to market.
Iran, the third largest Russian grain customer, will ship wheat into the country. Russian state-run power utility Inter RAO and Inter RAO Export, as well as Technopromexport would supply equipment and help construct power stations in Iran, Russian Energy Minister Aleksandr Novak said previously.
On Monday, Russian President Vladimir Putin announced that Russia is lifting the ban on the delivery of S-300 missile rocket systems to Iran. The Kremlin canceled a 2010 self-imposed ban, suggested by the US and allies, not to sell Iran the artillery.
In April, Iran reached a nuclear agreement with the P5+1 countries to prevent Tehran from developing nuclear arms as long as the West lifted sanctions, which have been in place for nearly 40 years. By June 2015, a final agreement is expected to be reached, which will lift sanctions, including the oil embargo against Iran. After sanctions are loosened, Iran’s oil minister thinks the country can increase shipments by one million barrels a day.
Revolving door between arms dealers & govt exposed
RT | February 16, 2015
Arms manufacturers currently have dozens of employees seconded to the Ministry of Defence (MoD) and other British government agencies, an investigation has discovered.
The revelations highlight the close relationship between business and government, especially in highly lucrative industries such as the arms trade.
Employees from BAE Systems (manufacturers of the Eurofighter Typhoon), MBDA (makers of missiles), Babcock (defense contractor working on Trident nuclear submarine replacement), and MSI (gunnery systems producer) have all taken senior level roles within the MoD.
BAE systems, the second largest arms company in the world, has had more than 10 executives seconded to the MoD and the arms sales unit of UK Trade & Investment (UKTI) in the last year.
The MoD’s Equipment and Support Branch, which has a £14 billion annual budget to buy equipment for the armed forces, hosted nine BAE executives in senior positions, the investigation by the Guardian found.
UKTI Defence and Security Organisation, another government department, had four secondments from BAE, two from MBDA, and two from Detica, a cyber-security specialist acquired by BAE in 2010.
While on secondment, salaries are paid by the company and not by the government department they join.
Personnel exchange between business and government works in the opposite direction as well, with 13 civil servants having been seconded from the MoD to outside organizations, including cyber-security company Templar Executives, Lloyds Banking group, arms firm QinetiQ, defense think tank the Institute for Security and Resilience Studies (ISRS) and the BBC.
The Campaign Against Arms Trade (CAAT) described the arrangement as “totally inappropriate.”
Speaking to the Guardian, Andrew Smith of CAAT said, “Arms companies already enjoy a significant and totally disproportionate level of government support, and these kinds of secondments only make it more so.
“It is totally inappropriate for arms companies that will be lobbying for extra military spending to be working for departments that buy their wares.”
Natalie Bennett, the leader of the Green Party, said the British government’s relationship with arms manufacturers was “uncomfortably close.”
“All too often we’ve seen the government’s actions aligned with the interests of big business, which is particularly concerning when the businesses involved produce weapons,” she told the Guardian.
“For many years, the British government has had an uncomfortably close relationship with arms manufacturers and a shady record of arming dictatorships to match.”
“Secondments like these cast a shadow of doubt over the integrity over the actions of both the MoD and UKTI when it comes to their dealings with arms manufacturers. Our policies should serve the common good and must be free from the influence of vested interests like arms companies.”
The Guardian’s revelations come in the wake of the HSBC tax avoidance scandal in which the revolving door between financial institutions and government has also faced scrutiny.
Lord Green, the former head of HSBC, came under the spotlight for having taken the role of Minister of State for Trade and Investment immediately after leaving the bank.
Leaked documents allege that during Green’s tenure as Chairman of HSBC from 2006 to 2010, he oversaw the orchestration of industrial scale tax evasion for drug dealers, international criminals, dictators and terrorists.
Lord Green stood down from a senior position in the banking lobby group The City UK on Saturday.
RELATED: Pregnant activist crashes glitzy arms industry dinner, urges guests ‘consider career change’
Ruble slump won’t damage trade with China – ambassador
RT | February 2, 2015
Li Hui, Ambassador Extraordinary and Plenipotentiary of the People’s Republic of China to Russia (RIA Novosti/Andrey Stenin)
China’s ambassador to Moscow Li Hui says even though the ruble has lost more than 17 percent of its value this year it won’t significantly affect China-Russia trade and cooperation.
“It is understandable that the devaluation and volatility of the ruble have a certain influence on Chinese-Russian trade, especially with the considerable exchange rate risks for export companies that have signed agreements in Russian rubles, but the devaluation of the ruble doesn’t have much effect on the large-scale trade partnership between China and Russia,” Li Hui told RIA Novosti in an interview.
The value of the Russian ruble started to slide again after the Central Bank of Russia decided on Friday to cut the key rate by 200 basis points to 15 percent. The currency was trading at 70 against the US dollar on the Moscow Exchange at 2:00PM MSK Monday.
In 2014, the ruble lost almost a half its value against the dollar due to plummeting oil prices and Western economic sanctions.
According to Li, regardless of the devaluation of the ruble and falling oil prices, Russia and China still believe in “growth despite existing trends.”
“I believe that we can contain and increase the volume of our bilateral trade by using the joint efforts of our government organs and businesses,” Li added.
Russian Deputy Prime Minister Igor Shuvalov suggests that after the dramatic depreciation the Russian currency would start recovering soon.
The Chinese ambassador said that trading in yuan is very forward thinking, and Russian businessmen are ready to trade in the Chinese currency.
In late 2014, Russia and China agreed a national currency swap deal to shore up the depreciating ruble and said they are working to increase the number of mutual payments in rubles and yuan.
China is Russia’s second-biggest trading partner after the EU, which hit a record $59 billion in the first half of 2014. The two countries are planning to increase bilateral trade to $200 billion by 2020.
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Russia-China trade hits record $59bn in first half of 2014
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Ruble-yuan settlements will cut energy sales in US dollars – Putin
Moscow rejects Kiev’s ‘virtual’ gas price, seeks $3.9bn to resume supplies
RT | September 30, 2014
Russia is ready to resume gas deliveries to Ukraine only after it pays $2 billion of its debt and makes a $1.9 billion advance payment for future supplies, Russian Minister of Energy Aleksandr Novak said.
“There will be no new supplies if part of the debt is not paid. Otherwise, it turns out to be a game with only one goal, where we deliver the gas and the debt payment is postponed,” he argued.
Novak said that Ukraine is prepared to pay $3.1 billion of its Russian gas debt.
“They calculated the cost at their own virtual price at $268.5 [per thousand cubic meters of gas],” the Minister said.
However Russia is happy to sell its gas at $385 which amounts to $1.9 billion for the 5 billion cubic meters Ukraine wants to purchase. Together with the debt payment it amounts to $3.9 billion.
Prepayment will likely be made every month, according to the needs of Ukraine. The amount of $3.1 billion has to be paid in two tranches: $2 billion before supplies are resumed, and the remainder – by the end of the year, Novak said.
Russia is ready to fulfill the agreements reached on Friday in Berlin and is waiting for a Ukrainian response, Novak said answering a question concerning the possibility of sealing the deal this week.
All the agreements of the so-called “winter plan” worked out on September 26 were verbal, and the gas price remains an unresolved issue.
The money for this plan has already been provided to Ukraine by the International Monetary Fund (IMF), Novak said.
Record global debt risks new crisis – Geneva report
RT | September 30, 2014
A record level of $158.8 trillion in global debt, together with low economic growth is creating a serious threat of a new financial crisis, says the sixteenth annual Geneva Report.
Total world debt, excluding the financial sector, has risen from 180 percent of global output in 2008 to 212 percent last year, according to the report written by a panel of senior economists including three former senior central bankers.
“Contrary to widely held beliefs, the world has not yet begun to deliver, and the global debt to GDP ratio is still growing, breaking new highs,” the report said.
The World Bank data showed that in 2013 global GDP was $74.909 trillion.
At a world level, there was acceleration in real growth from the mid-1990s until the mid-2000s, largely driven by the impressive performance of emerging markets over this period.
However, output growth in advanced economies has been declining for decades, which accelerated after the crisis. The developed economies enjoyed only a temporary improvement in real output growth in the late 1990s which had already started gradually eroding by the mid-2000s.
A “poisonous combination of high and rising global debt and slowing gross domestic product, driven by both slowing real growth and falling inflation,” may cause a crisis, warns the report.
Despite the modest decrease in household debt in the UK and the rest of Europe, the credit binge in Asia has offset the improvements, pushing the global private and public debt to a new high in 2013.
Until 2008, the leveraging up was being led by developed markets, but since then emerging economies led by China have been the driving force in the process, thus becoming the most vulnerable to the next crisis.
“Although the level of leverage is higher in developed markets, the speed of the recent leverage process in emerging economies, and especially in Asia, is indeed an increasing concern,” says the report.
Guatemala defies ‘Monsanto Law’ pushed by US as part of trade agreement
RT | September 3, 2014
The highest court in Guatemala has suspended the controversial ‘Monsanto Law,’ a provision of a US-Central American trade agreement, that would insulate transnational seed corporations considered to have “discovered” new plant varieties.
The Constitutional Court suspended on Friday the law – passed in June and due to go into effect on Sept. 26 – after a writ of amparo was filed by the Guatemalan Union, Indigenous and Peasant Movement, which argued the law would harm the nation, LaVoz reported.
The Court’s decision came after several Guatemalan parliamentarians from both the governing Patriotic Party and the opposition party Renewed Democratic Freedom said they would consider repealing the law after outcry from a diverse cross-section of Guatemalans.
The decision also offers interested parties 15 days to present their arguments pertaining to the law in front of the Constitutional Court. Members of both political parties said they would present motions to resist the law.
The ‘Law for the Protection of New Plant Varieties,’ dubbed the ‘Monsanto Law’ by critics for its formidable seed-privatization provisions, is an obligation for all nations that signed the 2005 CAFTA-DR free trade agreement between Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, the Dominican Republic, and the United States. The agreement requires signatories to adhere to the International Convention for the Protection of New Plant Varieties.
The law offers producers of transgenic seeds, often corporate behemoths like Monsanto, strict property rights in the event of possession or exchange of original or harvested seeds of protected varieties without the breeder’s authorization. A breeder’s right extends to “varieties essentially derived from the protected variety,” thus, a hybrid of a protected and unprotected seed belongs to the protected seed’s producer.
The Rural Studies Collective (Cer-Ixim) warned that the law would monopolize agriculture processes, severely threaten food sovereignty – especially those of indigenous peoples – and would sacrifice national biodiversity “under the control of domestic and foreign companies.”
The National Alliance for Biodiversity Protection said in July that the law is unconstitutional “because it violates the rights of peoples. It will benefit transnational seed companies such as Monsanto, Duwest, Dupont, Syngenta, etc.”
“According to this law, the rights of plant breeders are superior to the rights of peoples to freely use seeds,” the Alliance said in a statement.
“It’s a direct attack on the traditional knowledge, biodiversity, life, culture, rural economy and worldview of Peoples, and food sovereignty,” the Alliance added.
Anyone who violates the law, wittingly or not, could face a prison term of one to four years, and fines of US$130 to $1,300.
It is unclear what options the Guatemalan government has given the obligations under CAFTA-DR. The US would likely put pressure on the nation to pass the law, part of a global effort using trade agreements to push further corporate control over trade sectors like agriculture in the name of modernization. Upon further refusal, the US could drop Guatemala from the trade agreement.
Who is hit hardest by Russia’s trade ban?
RT | August 8, 2014
Germany and Poland will lose the most trade with Russia, and neighboring Finland and Baltic states Lithuania and Latvia will lose a bigger proportion of their GDP. Norway will see fish sales to Russia disappear, and US damages would be very limited.
Russia has banned imports of fruit, vegetables, meat, fish and dairy products from the 28 countries of the EU, the US, Canada, Norway, and Australia for one year.
EU trade is heavily dependent on Russian food imports. Last year Russia bought $16 billion worth of food from the bloc, or about 10 percent of total exports, according to Eurostat.
In terms of losses, Germany, Poland and the Netherlands- the top three EU food suppliers to Russia in 2013 – will be hit hardest. Food for Russia makes up around 3.3 percent of total German exports.
French Agriculture Minister Stephane Le Foll said his government is already working together with Germany and Poland to reach a coordinated policy on the new Russian sanction regime.
Last year, Ireland exported €4.5 million worth of cheese to Russia, and not being able to do so this year is a big worry, Simon Coveney, the country’s agriculture minister, said.
Farmers across Europe could face big losses if they aren’t able to find alternative markets for their goods, especially fruit and vegetables.
Some are already demanding their governments provide compensation for lost revenue.
“If there isn’t a sufficient market, prices will go down, and we don’t know if we can cover the costs of production, because it is so expensive,” Jose Emilio Bofi, an orange farmer in Spain, told RT.
9 EU countries ready to block economic sanctions against Russia
RT | July 15, 2014
France, Germany, and Italy are among EU members who don’t want to follow the US lead and impose trade sanctions on Russia. US sanctions are seen as a push to promote its own multibillion free-trade pact with Europe.
“France, Germany, Luxembourg, Austria, Bulgaria, Greece, Cyprus, Slovenia, and EU President Italy see no reason in the current environment for the introduction of sectorial trade and economic sanctions against Russia and at the summit, will block the measure,” a diplomatic source told ITAR-TASS.
In order for a new wave of sanctions to pass, all 28 EU members must unanimously vote in favor. EU ministers plan to discuss new sanctions against Russia at their summit in Brussels on Wednesday, July 16. Even if only one country vetoed, sanctions would not be imposed. With heavyweights like France and Germany opposed to more sanctions the measure will likely again be stalled, the source said.
According to the source, the US sees slapping Russia with sanctions as a way to promote its own trade agenda with Europe, a side rarely explored in mainstream media. The Transatlantic Trade and Investment Partnership (TTIP) between the US and Europe would create the world’s largest free trade zone, but some worry it could balloon into an “economic NATO” or could end up putting corporate interests above national.
“Last year the EU and the US started difficult negotiations on a free trade agreement, which would force the EU into serious concessions, in particular, agricultural quality standards and regulation on genetically modified products. In this circumstance, restrictions against Russia will force EU countries to expand trade with the US,” the source said, citing shale gas as an example.
On June 20, Czech President Milos Zeman came out against sanctioning Russia, saying there is “no reason” to further “isolate” the country.
America was successful in getting Europe to toe its sanctions agenda at the height of the Ukraine crisis, but now Russia has removed its troops from the Ukraine border and promised peace in the region, Europe isn’t interested in further sanctions.
The EU initially followed the US cue when it imposed sanctions on Russia after the reunification of Crimea in March, but these measures were limited to politicians and businessmen. The EU unleashed a second round which expanded the list to over 72 individuals, who cannot enter the EU or access any assets there.
Boomerang effect
Russian officials maintain that sanctions are counterproductive, and will end up hurting the West more than they will Russia.
Another reason EU countries are wary of slapping Russia with economic sanctions is the possible spillover effect. Unlike the US, European countries rely heavily on Russia as a trading partner, especially for natural gas. The World Bank estimates that if sanctions escalate European gas prices could jump 50 percent.
Europe clearly has much more to lose by punishing its neighbor, with annual trade in goods and services worth $330 billion. American trade with Russia, by contrast is just a tenth of that at $38.1 billion.
Deals with UK-based BP, US-based Weatherford International, and ExxonMobil, continue to show that most countries continue to do business with Russia, politics aside.
Italy was the first country to speak out against Russian sanctions. Rosneft, the world’s largest listed oil company, recently acquired a 26.2 percent stake in Italian tire company Pirelli. Igor Sechin, boss of Rosneft and on the US sanctions list, joined the board of the Milan-based company. Three other Rosneft representatives, as well as the CEO of Russia’s second largest bank, VTB, sit on the board.
Ukraine and EU sign free trade zone deal
RT | June 27, 2014
Ukraine has signed the economic part of the Association Agreement with the EU, with Georgia and Moldova also joining the pact, even though big economic risks lie ahead.
The signing of the economic part of the agreement comes after 8 months of violent unrest in Ukraine, which broke out in Kiev and spread across the country in November after then-President Viktor Yanukovich decided to reject the trade agreement in favor of trilateral talks.
The document contains 31 signatures – Ukraine, all 28 EU member states, as well as that of the President of the European Council Herman Van Rompuy, and European Commission President Jose Manuel Barroso. The agreement will only come into force when it is ratified by every national parliament in the EU. It is expected that the ratification process will be complete by this fall.
Georgia and Moldova also signed both political and economic parts of the Association Agreement. Ukraine signed a political part of the agreement in March, shortly after Crimea rejoined Russia.
“By signing the association agreement, Ukraine, like European nation, which shares the same rules of law, stresses its sovereign choice to become a member of the EU Association Agreement in the future,” said Ukraine’s President Poroshenko before the signing ceremony. The Ukrainian President sees the trade document as a stepping stone to eventual EU statehood.
Friday signing the Free Trade Agreement will open up trade barriers between the former Soviet states, but doesn’t guarantee them EU membership, a main goal of the three governments.
“It is their sovereign right, but the Russian Federation will have to take measures in case it negatively effects the local market,” Dmitry Peskov, Putin’s spokesperson said, commenting on the agreements signed between the EU and Ukraine, Georgia and Moldova.
Russia has warned these “measures” could include $500 billion in lost trade and possible bans on Ukrainian imports.
“There is no economic growth to be had by suddenly having western European goods dumped at low cost on your marketplace,” Patrick Young, an expert on emerging markets, told RT.
In order to fully implement the free trade zone, it could cost Ukraine’s already fragile economy an additional $104 billion, according to a previous estimate by Yanukovich. This will include adopting hundreds of new trade laws and thousands of new laws to comply with EU standards.
In 2013, EU exports to Ukraine were worth $33 billion (23.9 billion euro), dominated by industrial equipment, chemicals, and manufactured goods.
Ukraine exported 13.8 billion euro worth of goods to the EU, mostly materials like iron, steel, and minerals. Agricultural and food products are also substantial exports.
The Association Agreement and Deep and Comprehensive Free Trade Area (DCFTA) will replace the current Partnership and Cooperation Agreement Ukraine signed with the EU in 1998.
Eastern Ukraine, which rejects the new Ukrainian government’s authority, is skeptical of Kiev’s European ambition, as is the EU itself.
“EU is not ready to integrate at this stage a country like Ukraine,” Jose Barroso, President of the European Commission said before the talks.
Brussels started the Eastern Partnership initiative to incorporate six former Soviet Republics into the EU free trade zone. Ukraine, Moldova, and Georgia have followed Poland’s example, whereas Armenia, Belarus, and Azerbaijan are likely to opt for closer trade links with Russia.
Trilateral trade talks between the EU, Russia, and Ukraine will take place on July 11. Russia has made it very clear that by signing the trade agreement Ukraine can no longer enter the Eurasian Customs Union, which already includes Belarus and Kazakhstan.
EU sanctions on Crimea lead to deadlock – Republic’s head
RT | June 24, 2014
SergeyAksyonov, Acting Head of the Republic of Crimea and Chairman of the Crimea Council of Ministers (RIA Novosti / Andrey Iglov)
The head of the Crimean government has stressed rejoining Russia is irreversible. Sergey Aksyonov said an EU ban on imports from Crimea and Sevastopol deprives Europe of a market and it must “realise that the regime of pressure leads to nothing good.”
Aksyonov characterized the EU sanctions targeting the new Russian territory as “a deadlock situation, including for the European Union. They [EU states] deprive themselves of markets to sell their products and of the opportunity to participate in the investment program of Crimea”.
The peninsula head suggests the EU decision to prohibit imports from Crimea was influenced by the US government.
”General agitation over Crimea’s accession to Russia has calmed down in the EU. As far as I understand in this case the US authorities have pushed this stance,” he said.
The EU Commission imposed a ban on imported goods from Crimea following its position of not recognizing Crimea’s accession to Russia.
However Crimean officials say EU sanctions won’t have any serious impact on the region’s economy.
“I do not envisage any major crisis. I do not even know which economic sector might be affected by it. Most of our exports were to Russia; now this is no longer export but domestic operations,” said Vitaly Nakhlupin, the head of the Crimean State Council’s Economic Commission.