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Ed Webb

Our Oligarch - 0 views

  • Abramovich is perhaps the most visible of the “oligarchs” surrounding Putin, who are widely perceived as extensions of the Russian president and keepers of a vast fortune that is effectively under the Kremlin’s control. Much of this wealth was extracted from Russia’s enormous energy and mineral resources, and is now stashed in secret bank accounts in the Mediterranean and the Caribbean, in empty mansions and condos from London to Manhattan to Miami, and in yachts and private jets on the French Riviera.
  • as much as 60% of Russia’s GDP is offshore
  • The reserved, gray-bearded Abramovich is notoriously litigious toward critics who seek to detail his close ties to Putin. Last year, he successfully sued the British journalist Catherine Belton, who claimed in her 2020 book Putin’s People that the Russian president dictated Abramovich’s major purchases, including his decision to buy Chelsea. He also extracted an apology from a British newspaper for calling him a “bag carrier” for the Russian president.
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  • Abramovich—who, like many of the most prominent Russian oligarchs, is Jewish—has for years been a prolific donor to Jewish philanthropies. He has given half a billion dollars to Jewish charities over the past two decades, sending money linked to Putin’s kleptocratic regime circulating through Jewish institutions worldwide
  • Among other things, he has profoundly influenced Jewish life on three continents, developing deep financial ties with major communal institutions. He is partly responsible for the preeminent role played by Chabad in the religious life of post-Soviet Russia, for the growth of major Jewish museums from Russia to Israel, for a raft of anti-antisemitism programming involving leading American and British Jewish organizations, and for the expansion of Israeli settlements in East Jerusalem
  • the Jewish world is forced to reckon with its long embrace of Abramovich, and with the moral costs of accepting his money
  • Certain Soviet Jews of Abramovich’s generation found themselves at the forefront of an emerging market economy. Concentrated in white collar professions but systematically excluded from desirable posts and from the top ranks of the Communist Party, they were unusually prepared—and, perhaps, motivated—to find legal and semi-legal points of entry into the tightly-regulated commerce between the Soviet Union and the West. This helps explain why, as the historian Yuri Slezkine writes in The Jewish Century, six of the seven top oligarchs of 1990s Russia (Petr Aven, Boris Berezovsky, Mikhail Fridman, Vladimir Gusinsky, Mikhail Khodorkovsky, and Alexander Smolensky) were ethnic Jews.
  • Boris Yeltsin soon initiated the firesale privatization of state-controlled industries at the urging of Washington and the IMF—a reckless transition from a command economy to a capitalist one that drove millions of Russians into poverty
  • the Yeltsin administration implemented its infamous loans-for-shares program, selling off key state industries in rigged auctions to Russia’s new business elite for a fraction of their real value in order to stabilize the state’s finances in the short term. Berezovsky and Abramovich gained ownership stakes in Sibneft, one of the world’s largest energy companies, and became instant billionaires.
  • In 1996, the handful of leading oligarchs pooled their financial resources—and directed their media companies’ coverage—to reelect the deeply unpopular Yeltsin over his Communist challenger, Gennady Zyuganov, whose platform of re-nationalizing industries terrified both the Russian and Western business classes
  • Fearing that it was unsustainable for a small group of mostly Jewish billionaires to prop up an ailing, visibly alcoholic president—especially after the ruble collapsed in 1998, dragging down a generation’s living standards and initiating a hunt for scapegoats—Berezovsky spearheaded an effort the following year to replace Yeltsin with a young, healthy, disciplined, and then-obscure former KGB officer named Vladimir Putin. It was a decision he would come to regret.
  • wealth so easily acquired could just as easily be taken away. In 2001, Putin hounded Berezovsky and Gusinsky—whose TV networks had criticized the president’s mishandling of a naval disaster—with criminal indictments for tax fraud, forcing them to sell their media and energy holdings at a fraction of their true cost. As a result, Abramovich, who had never challenged Putin, acquired control of Sibneft, while Berezovsky fled to the United Kingdom and Gusinsky departed for Spain and then Israel. Abramovich again came out ahead in 2003, when the oligarch Khodorkovsky was sent to a Siberian prison on tax charges after criticizing Putin for corruption, leaving his assets in the energy sector to be redistributed among those on good terms with the president.
  • “I don’t think there is a percent of independence in Abramovich,” said Roman Borisovich, a Luxembourg-based Russian banker turned anti-corruption activist who once encountered Abramovich through Berezovsky in the 1990s. “For Abramovich to stay alive, he had to turn against his master [Berezovsky], which is what he did, and he has served Putin handsomely ever since.”
  • Whereas in the Yeltsin era, the term identified a system dominated by truly independent tycoons, “Putin’s top priority when he came to power was to break that system, replacing it with a system of concentrated power in which men who are inaccurately referred to as oligarchs now have only as much access to wealth as Putin allows them to have,”
  • Even as he built up his credibility with Putin, he joined many of his fellow oligarchs in stashing his billions in Western financial institutions, which proved eager to assist. “Elites in the post-Soviet space are constantly looking to move their assets and wealth into rule-of-law jurisdictions, which generally means Western countries like the US or UK,”
  • In 2008, Berezovsky sued his former protege over his confiscated Sibneft shares; then, in 2012, seven months after a judge rejected all of his claims, Berezovsky died in his London home in an apparent suicide. Some former associates believe he might have been murdered
  • In 2017, BuzzFeed reported that US spy agencies suspect Russian involvement in as many as 14 mysterious deaths in Britain over the previous decade, including Berezovsky’s. In the wake of the 2018 poisoning of the defected double agent Sergei Skripal and his daughter, British intelligence services became increasingly wary of wealthy expats with close ties to the Kremlin. Diplomatic strain stymied Abramovich’s effort to acquire a Tier 1 British visa, which would have enabled him to stay in the country for 40 months.
  • “No one forced the British or American real estate industries to toss their doors open to as much illicit wealth as they could find, or the state of Delaware to craft the world’s greatest anonymous shell company services,” said Michel. “Western policymakers crafted all of the policies that these oligarchs are now taking advantage of.”
  • Abramovich also safeguarded a significant part of his fortune in the US, especially during his third marriage to the Russian American socialite and fashion designer Dasha Zhukova. Even after their 2018 divorce, Abramovich began the process of converting three adjacent townhouses on Manhattan’s Upper East Side into what will eventually become the largest home in the city, an “urban castle” valued at $180 million—making him one of the many wealthy Russians sheltering assets in New York’s booming and conveniently opaque real estate sector. (The mansion is intended for Zhukova and their two young children; Abramovich also has five children from his second marriage based primarily in the UK.) He also owns at least two homes in Aspen, Colorado, a gathering place of the global elite.
  • the oligarchs are now credibly threatened with exile from the West. Countries like France and Germany have already begun confiscating yachts owned by select Russian officials. And although the UK is still struggling to come up with a legal basis for following suit, leading politicians like Labour Leader Keir Starmer are urging direct sanctions against Abramovich. “Abramovich’s reputation has finally collapsed, along with the other supposedly apolitical oligarchs,” Michel said four days after Russia invaded Ukraine. “There’s no recovery from this. This is a titanic shift in terms of how these oligarchs can operate.”
  • Israel has been more hesitant to hold him to account.
  • In 2018, Abramovich acquired Israeli citizenship through the law of return, immediately becoming the second-wealthiest Israeli, behind Miriam Adelson. As a new Israeli citizen, he joined several dozen Russian Jewish oligarchs who have sought citizenship or residency in the Jewish state—a group that includes Fridman, Gusinsky, and the late Berezovsky. Since 2015, Abramovich has owned and sometimes lived in the 19th-century Varsano hotel in Tel Aviv’s trendy Neve Tzedek neighborhood, and in 2020 he purchased a mansion in Herzliya for $65 million—the most expensive real estate deal in the country’s history
  • As an Israeli passport holder, Abramovich is eligible to visit the UK for six months at a time and is exempt from paying taxes in Israel on his overseas income for the first decade of his residency
  • Given his increasingly precarious geopolitical position, Jewishness has become Abramovich’s identity of last resort—and Jewish philanthropic giving has provided him with an air of legitimacy not only in Israel but throughout the Jewish world. Abramovich and his fellow oligarchs “need to spend some money to launder their reputations,” said Borisovich, the anti-corruption activist. “They cannot be seen as Putin’s agents of influence; they need to be seen as independent businessmen. So if they can exploit Jewish philanthropy or give money to Oxford or the Tate Gallery, that’s the cost of doing business.”
  • A 2017 article in Politico, which identified Abramovich and Leviev as “Chabad’s biggest patrons worldwide,” also referred to Lazar as “Putin’s rabbi.” Lazar has often run interference for the Russian president—for instance, by defending his initial crackdown on oligarchs like Gusinsky as not motivated by antisemitism, or by praising Russia as safe for Jews under his governance. (The researcher noted that Putin has also cultivated prominent loyalists in other Russian religious communities, including the Orthodox Church and Islam.)
  • Abramovich also significantly funded the construction of the $50 million Jewish Museum and Tolerance Center in Moscow, which opened in 2012 (and to which Putin pledged to donate a month of his presidential salary). In a 2016 article in The Forward, the scholar Olga Gershenson suggested that the museum’s narrative bordered on propaganda, framing Jews as “a model Russian minority” and “glorifying and mourning . . . without raising more controversial and relevant questions that would require the viewer to come to terms with a nation’s difficult past.”
  • “It concentrates on the Soviet victory over the Nazis, and then it ends by saying that Jews in Putin’s Russia are all good and content.”
  • “Say No to Antisemitism” has brought together Chelsea players and management with many top Jewish groups; the currents heads of the ADL, the WJC, the Conference of Presidents of Major American Jewish Organizations, and the Holocaust Educational Trust, among others, are all listed on its steering committee. The campaign is at least in part intended to address the antisemitism of some Chelsea fans, who have been known to shout “Yid!” and hiss in imitation of gas chambers when taunting fans of the rival club Tottenham, which has a historically Jewish fan base that proudly refers to itself as “the Yid Army.” Last November, Israeli President Isaac Herzog described the campaign as “a shining example of how sports can be a force for good and tolerance.”
  • Abramovich is also one of the primary benefactors of a Holocaust museum that opened in Porto last May. As of last year, Abramovich is a newly minted citizen of Portugal (and by extension, the European Union), which offers such recognition to anyone who can prove Sephardic ancestry dating back before the Portuguese expulsion of Jews in 1496.
  • Berel Rosenberg, a representative of the museum, denied that Abramovich had given the Porto Jewish community any money besides a €250 fee for Sephardic certification; regarding reports to the contrary, he alleged that “lies were published by antisemites and corrupt journalists.” However, Porto’s Jewish community does acknowledge that Abramovich has donated money to projects honoring the legacy of Portuguese Sephardic Jews in Hamburg, and he has been identified as an honorary member of Chabad Portugal and B’nai B’rith International Portugal due to his philanthropic activities in the country.
  • Abramovich has made a $30 million donation for a nanotechnology research center at Tel Aviv University; funded a football-focused “leadership training program” for Arab and Jewish children; and supported KKL-JNF’s tree-planting campaign in the southern Negev, which is dedicated to Lithuanian victims of the Holocaust—and which has drawn opposition from local Bedouin communities who view it as a land grab.
  • he has kept his support for Israeli settlements well-hidden
  • Abramovich has used front companies registered in the British Virgin Islands to donate more than $100 million to a right-wing Israeli organization called the Ir David Foundation, commonly known as Elad, which has worked since the 1980s to move Jewish settlers into occupied East Jerusalem. Elad also controls an archeological park and major tourist site called City of David, which it has leveraged in its efforts to “Judaize” the area, including by seizing Palestinian homes in the surrounding neighborhood of Silwan and digging under some to make them uninhabitable.
  • “In order for settlers to take over Palestinian homes, they need a lot of money,” said Hagit Ofran, co-director of the Settlement Watch project at the Israeli organization Peace Now, “both to take advantage of poor Palestinians for the actual purchases, and then for the long and expensive legal struggle that follows, and that can bankrupt Palestinian families. The money is crucial.” Of Abramovich’s support for Elad, she added, “That’s a lot from one source; I assume that if you give such a big donation, you know what it is for.”
  • Just two days before Putin launched his invasion of Ukraine, it was reported that Abramovich is donating tens of millions of dollars to Yad Vashem, the global Holocaust remembrance center in Jerusalem
  • Yad Vashem chairman Dani Dayan joined the heads of multiple Israeli charitable organizations in urging the US not to sanction Abramovich. The letter was also signed by Chief Rabbi of Israel David Lau and representatives of Sheba Medical Center, Tel Aviv University, and Elad
  • Oleg Deripaska and Mikhail Fridman, were already calling for peace negotiations just three days after the invasion. (Fridman and Deripaska are also major Jewish philanthropists, as are other Russian oligarchs including Petr Aven, Yuri Milner, and Viktor Vekselberg. All of them now face global scrutiny.)
  • Even before he announced he would be setting up a charity to help victims in Ukraine, members of Abramovich’s family were quick to distance themselves from the war: A contemporary art museum in Moscow co-founded by Abramovich and Zhukova has announced that it will halt all new exhibitions in protest of the war. Abramovich’s 27-year-old daughter Sofia, who lives in London, posted a message on her popular Instagram account that read, “The biggest and most successful lie of the Kremlin’s propaganda is that most Russians stand with Putin.”
  • Abramovich and others have spent more than two decades loyally serving and profiting off Putin’s corrupt and violent regime—one that has been accused of murdering and jailing journalists and political dissidents and of committing war crimes from Chechnya to Syria. And for much of that time, Jewish institutions worldwide have been more than happy to take money from Abramovich and his peers
  • longstanding philanthropic ties may affect the Jewish communal world’s willingness to hold Russia accountable for its violation of Ukraine’s sovereignty
  • “I think the view of much of Jewish philanthropic leadership, right and left, conservative and liberal, has been the bottom line: If the purposes for which the philanthropy is given are positive, humane, holy, and seen to strengthen both the Jewish community and the whole of society, then to sit and analyze whether the donor was exploitive or not, and whether this was kosher or not, would be hugely diverting, amazingly complicated, and divisive.”
  • Rabbi Jill Jacobs, executive director of T’ruah: The Rabbinic Call for Human Rights, acknowledged the difficulty of making ethical calls about donors, but argued that the attempt is still necessary. “In philanthropy, nearly all money is tainted, either because it was acquired by exploiting workers, by harming the environment, by selling harmful products, or by taking advantage of systems that benefit the wealthy to the detriment of others. That said, we can’t throw up our hands and say that we can either take no money or all money; there have to be red lines,” she said.
  • Berman, the scholar of Jewish philanthropy, agrees. “It is tempting to say all money is fungible, so where it came from does not or cannot matter,” she said. “But no matter how much we might want to launder the money, wash it clean of its past and its connections to systems of power, the very act of doing so is an erasure, an act of historical revisionism. Even worse, it can actually participate in bolstering harmful systems of power, often by deterring institutions reliant on that money from holding a person or system to account.”
Ed Webb

It's about time we all admit that Putin has prevailed in Syria | openDemocracy - 0 views

  • In Syria, Russia strode in where the west was hesitant, and just over two years on from the riskiest move in post-Soviet Russian foreign policy, the end game is clear. Assad, Russia and Iran will emerge victorious, and that is a direct result of Moscow’s decision to intervene in 2015 when its long-term ally, Assad, was on the ropes and struggling to survive.
  • Russia didn’t have to worry about the Turkish-Kurdish dimension, it was too busy steamrolling Syria’s disjointed opposition. ISIS to Russia was no different to other rebel groups; in the eyes of Moscow they were all a threat to Assad and warranted an iron fist. As Russia began to crush the anti-Assad opposition, the west could only watch from afar as the balance of power tilted in favour of the Syrian government.
  • the emergence of a US backed Kurdish powerhouse in the north of Syria and Turkish efforts to quell that rise. The sharp rise of ISIS and other Jihadist groups further muddied the waters, creating an extra element of risk for a possible US intervention. This all played into Putin’s hands.
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  • The Russians had an official casualty list of 41 soliders, though the real number may be higher, it is far removed from the thousands killed in the Soviet Union’s long and brutal insurgency war in Afghanistan.
  • Russia also has one eye on the future. In December it confirmed it will maintain a permanent military presence at its air and naval bases in Syria. The agreement signed for 49 years with Damascus will allow Moscow to harbour eleven warships in Tartus including nuclear ships.
  • Moscow ensured a position of strength for itself in Syria’s geo-political war, in the greater scope of things, it emerged victorious from a risky and dangerous decision to enter a foreign conflict.
  • Russia is also set for a long term economic investment in the country and has secured a long-term foothold in Syria’s energy sector potentially making Syria a future long term transit hub for oil and gas shipments to Europe. This allows Russia to expand and cement its control over a European gas supply.
Ed Webb

Is US redesigning southern flank? - 0 views

  • In parallel with Turkey’s growing defense and security rapprochement with Russia, the United States is forging closer military bonds with Greece, heralding shifts in geostrategic balances in the Balkans, the Aegean Sea and the eastern Mediterranean
  • Pompeo and Greek Foreign Minister Nikos Dendias inked a protocol expanding the scope of the US-Greece Mutual Defense Cooperation Agreement, which relates to the use of Greek military facilities by US forces
  • The transfer of US military technologies to Greece in the fields of drones, smart munitions and army aviation; A more active use by the US Navy, including submarines, and the US Air Force of the military port and airbase at Souda Bay on the island of Crete, which is considered a gateway to the eastern Mediterranean;
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  • The establishment of military facilities at the port of Alexandroupolis, which allows control over the northern Aegean, dominates Turkey’s Gallipoli peninsula and eastern Thrace region and is very close to the Turkish border, and opening them to the use of the US Navy;
  • Augmenting the fleet of MQ-9 Reaper drones, which are already operating out of Larissa, located halfway down Greece’s eastern side near the Aegean coast, and stationing KC-135 tankers there;
  • Enabling the Greek military to access intelligence gathered by the Reapers and through other means and establishing a mechanism for further military intelligence sharing;
  • Pilotage, maintenance and operational training at the Stefanovikeio airbase near the Aegean for the seven MH-60R Seahawk helicopters that the United has recently agreed to supply to Greece. 
  • the United States is seeking to turn up pressure on Russia in the Balkans, the Black and Aegean seas and the eastern Mediterranean and create an anti-access area-denial shield, centered in Greece, to limit Russia’s access to warm waters
  • Pompeo’s visits to North Macedonia and Montenegro, in addition to Greece, were significant in this context. Pompeo’s tour was important also in terms of controlling China’s growing infrastructure and technology investments in the Balkans
  • the strategy of containing Russian access to warm waters through the Turkish Straits and the Black Sea has become meaningless, giving way to a new strategy of containing Russia through an anti-access area-denial shield in the Aegean and the eastern Mediterranean
  • the United States is seeking to counterbalance the geostrategic superiority that Russia has attained in the eastern Mediterranean in the past four years
  • Tensions in the region have grown over hydrocarbon reserves, with Greece, the Greek Cypriots, Israel and Egypt forming a bloc against Turkey
  • the US Air Force’s increasing presence in Larissa, from where Greece controls all its air operations in the Aegean, appears to reflect an American effort for a closer monitoring of the Aegean, where Turkey and Greece are embroiled in long-standing territorial disputes. 
  • Many in the anti-US camp in Ankara, which now has the upper hand, believe that the US military has been taking gradual yet decisive steps to encircle Turkey in the Aegean by strengthening its presence in the region through the bases provided by Greece
  • What needs to be done to break the siege “is to give the United States a diplomatic note and a short time to leave the eastern bank of the Euphrates [in Syria] and launch an operation afterwards,” Dilek wrote in an Oct. 5 article, days before Turkey did launch a military offensive in the said region.
  • For Atlanticists, a breed near extinction in Ankara, however, the visible increase in US military cooperation with Greece stems from Turkey’s misguided strategic choices in recent years and shows that Washington has given up hope on Ankara, leaving Turkey to Russia and trying to build a new axis with Greece to contain Russia in the eastern Mediterranean and the Aegean and curb China's trade surge in the region.
  • A retired Turkish ambassador, known as an Atlanticist, told Al-Monitor on condition of anonymity, “For two centuries, Russia has been seeking to overcome Turkey and the Straits to reach the warm waters and attain a lasting military presence in the Mediterranean basin. Because of Ankara’s mistaken diplomatic choices and ill-conceived policies in Syria, Russia in the past five years has managed to secure access to the warm waters — something it has been trying to do since Ottoman times — and establish a lasting military presence in Syria. We have to adjust to the grim reality of having Russia as a neighbor in Syria. The United States, too, appears to have found the way to attain a lasting presence by enhancing cooperation with Greece. With the big powers moving their rivalry to our region, the existing problems will become more complicated.”
  • the crisis of confidence between Turkey and the United States is becoming increasingly ossified, shaping the strategic choices and geostrategic orientations of the two sides
Ed Webb

Russia's Middle East Gambit - Carnegie Moscow Center - Carnegie Endowment for Internati... - 1 views

  • Russia is out to raise the stakes for U.S. military intervention, which it sees as destabilizing for the world order; to minimize the impact of Islamist radicalism and extremism born out of the Arab Spring; and to try to find political solutions to a host of issues, from the civil war in Syria to Iran’s nuclear issue to post-American Afghanistan
  • In Russian society, the long and painful experience of Soviet involvement in Afghanistan gave rise to what was called “Afghan syndrome,” i.e., shunning involvement, especially with military forces, in the Muslim world. Focused on itself and its immediate neighborhood, the Russian Federation physically quit and then neglected whole regions of former Soviet influence, including the Middle East. It continued selling arms to some of its ex-allies, including Syria, but now on a commercial rather than ideological or strategic basis.
  • Iran turned out to be a responsible neighbor and a useful partner, staying away from the Chechen conflict and even helping Russia negotiate an end to the bloody civil war in Tajikistan
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  • The Syrian civil war, however, has put Russia’s relations with the West, Turkey, the Gulf States, and Israel to a serious test
  • Unlike Europeans and Americans, Russian officials did not expect Western-style democracy to follow secular authoritarianism: What they began to brace for, early on, was a great Islamist revolution engulfing the entire region
  • In the hope of getting Western support for the Russian economic modernization agenda, Moscow decided in 2011 not to stand in the way of a humanitarian intervention in Libya. It was soon bitterly disappointed, however, when the no-fly zone in Benghazi morphed into a regime change in Tripoli. The experience of being used and then ignored by the West has informed Russia’s subsequent stance on Syria
  • From Moscow’s perspective, Assad may be problematic insofar as his methods are concerned—but his enemies constitute a real threat not just to Syria, but also to other countries, including Russia
  • Russia’s image has suffered in many parts of the Arab world, where it is portrayed as a friend of authoritarian regimes and as an ally of and arms supplier to Bashar al-Assad and therefore as a friend of Iran
  • The amount of heavy lifting required from both Washington and Moscow is stunning, and the odds are heavily against success at the new Geneva conference next month, but the alternative to a political settlement is truly frightening. One obstacle is that Russia has insisted in involving Iran in Syria-related discussions, to which the Gulf Arabs and the United States strongly object. Moscow is frequently referred to as Tehran’s ally and advocate. Indeed, Russia has built a nuclear power reactor in Bushehr and has supplied Iran with a range of weapons systems. Russia, for its part, sees Iran as not so much a theocracy bent on developing nuclear weapons to terrorize the region as a power that has been in the region forever and that is likely to play a more important role in the future.
  • the Iranian theocracy has more checks and balances than the old Soviet system
  • Tehran, they think, is probably aiming for an outcome in which it stops at a relatively small step before reaching a nuclear capability and trades its restraint in exchange for dropping all sanctions against it and respect for its security interests
  • According to U.S. diplomats, Moscow cooperates more with Washington on Iran than it is usually given credit for in the mainstream Western media. Unlike many in the United States, however, Russians believe that pressuring Iran has limits of usefulness: Beyond a certain point, it becomes counterproductive, undercutting the pragmatists and empowering the bad guys that one seeks to isolate
  • Russia’s attitudes toward Israel are overwhelmingly positive. Many Russians admire the social and economic accomplishments of the Jewish state and its technological and military prowess. Intense human contacts under conditions of a visa-free regime and the lack of a language barrier with a significant portion of Israel’s population help enormously
  • Putin knows that denying or withdrawing air-defense cover is the ultimate argument he needs to hold in reserve to make Assad buy into a real power-sharing deal
  • Moscow is beginning to step out of its post-Soviet self-absorption. Its main preoccupation is with security—and Islamist extremism features as a primary threat. This is a big issue. By contrast, Russia’s interests in the Middle East are relatively modest. They are centered on oil and gas exploration deals, pipeline geopolitics, and pricing arrangements; other energy opportunities beckon in the nuclear area. While Russia’s position in the regional arms bazaar has suffered in the last decade as a result of developments in Iraq and Libya (and may yet suffer more in Syria), Moscow is clearly determined to stay in the arms business. Finally, as Russia recasts itself as a defender of traditional Christian values as well as a land of moderate Islam, it is discovering a range of humanitarian causes in the birthplace of both global religions.
  • In the energy sector, Russia has accommodated to Turkey’s new role of a regional energy hub but has worked hard to protect its own share of the European Union’s natural gas market
Ed Webb

Can Russia Succeed Where America Failed in the Middle East? - LobeLog - 0 views

  • Specific criticisms included the claim by Russian Foreign Minister Sergey Lavrov that while Russia and Iran were working together to combat terrorism in Syria, U.S. policy was actually supporting it there. Sergey Karaganov, one of Moscow’s most important exponents of the Kremlin’s foreign-policy thinking, described American power as declining and hence ineffective while that of Russia, China, and India as rising in the Middle East. And several Russian speakers described Moscow as better placed to resolve the various conflicts in the Middle East since Russia has good relations with virtually everyone there (except, of course, the jihadists) while the U.S. has poor relations not just with its traditional adversaries in the region, but also with its traditional allies including Saudi Arabia and Egypt.
  • In the panel on Yemen, Ali Nasser Mohammad (former president of South Yemen) recalled how in the latter stages of the North Yemeni civil war in the 1960s, the opposing Yemeni sides failed to reach agreement through bilateral negotiations. It was only when their main external patrons, Egyptian President Nasser and Saudi King Faisal, reached an agreement on ending the conflict that progress was made in the inter-Yemeni dialogue. He suggested that similar agreements between external actors in the Middle East’s ongoing conflicts would be needed to facilitate conflict resolution between internal antagonists as well.
  • Russia is clearly in no position to pressure Israel to make concessions to the Palestinians so long as Israel continues to receive strong support from the U.S. Nor does there appear to be any other case in which all the main local participants in a Middle Eastern conflict prefer to work exclusively with Russia and not with the U.S.
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  • Russian-American cooperation in the Middle East will be difficult to achieve when their relations are hostile in other areas, including Europe. And even if they could come to any such agreement, it is doubtful that they could impose the terms on the region’s many strong-willed actors. The leaders of Iran and Turkey in particular seem willing and able to defy both Washington and Moscow if they choose to do so.
  • Moscow may not actually want to resolve them since it is the continuation of these conflicts that allows Moscow entrée into the region by stimulating demand from local antagonists for Russian support
Ed Webb

Russia's Putin signs deals worth $1.3bn during UAE visit | Russia News | Al Jazeera - 0 views

  • Russian President Vladimir Putin's has told officials in the United Arab Emirates they "will not be disappointed" as he wrapped up a short Gulf tour by signing deals worth more than $1.3bn in Abu Dhabi.
  • The crown prince and the Russian president struck six agreements, including one on shared investments between Russia's sovereign wealth fund and the Emirati investment fund Mubadala
  • In 2018, commerce between the two countries tabled some $1.7bn.
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  • "Among the Gulf countries, the UAE is the leader in terms of trade with Russia,"
  • Putin and Prince Mohammed also met Emirati astronaut Hazzaa al-Mansoori, who last month became the first Arab to reach the International Space Station, to which Russia currently enjoys a monopoly on manned flights.
  • Putin's Monday visit to US ally Riyadh, where he signed deals worth billions of dollars, came amid efforts to calm soaring tensions between the kingdom and its rival Iran. Despite its alliance with Tehran, Moscow has improved ties with Riyadh in recent years, hosting King Salman on the first official trip to Russia by a Saudi monarch in October 2017.     
Ed Webb

PYD leader: Russia will stop Turkey from intervening in Syria - Al-Monitor: the Pulse o... - 3 views

  • Returning to the negotiating table seems hard. The plan devised by the UN’s Syria envoy, Staffan de Mistura, is backed most of all by Russia. But the opposite camp, meaning Qatar, Saudi Arabia and Turkey are resisting this [plan]. If the United States wants to pave the way for a solution, it must apply certain pressure on this camp
  • Russia and the United States seem to have established their own zones of influence within Syria. The US is active in the north. The Russians will not meddle in the north. But should Turkey attempt to intervene, then they will. Russia has a joint defense agreement with Syria. They will prevent Turkish intervention not to defend us [Kurds] but to defend Syria’s border.
Ed Webb

Syrian Kurdish leader: Moscow wants to work with us - Al-Monitor: the Pulse of the Midd... - 1 views

  • Ilham Ehmed, a senior member of the Democratic Union Party (PYD), told Al-Monitor in a brief interview Oct. 8 that “Russia says it wants to work with us” to combat the group that calls itself the Islamic State (IS) and other extremist organizations.
  • According to the Kurds, the United States has also frustrated their desire to expand their area of control in Syria,
  • While the United States supported the PYD in expelling IS from Kobani and in capturing Tell Abyad east of Kobani, Washington has promised Turkey not to allow the Kurds to move west toward Afrin in return for allowing the United States to fly bombing runs from Incirlik Air Base, Balanche said. He added that the PYD would face other obstacles in such an operation. “There are 500,000 people between Azaz, al-Bab, Manbaj and Jarabulus, including a Turkmen minority,” he said. “It would be very difficult for the Kurds to capture this area without heavy US support.” Balanche wrote recently that if the United States does not back the Kurdish advance, the PYD will look to Russia and Assad “if that is its only path to a continuous territory in the north.”
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  • the Obama administration needs the Kurds for a planned major offensive against the IS stronghold of Raqqa
  • Ehmed said that the Kurds are seeking “self-administration, not autonomy,” along the lines of the Kurdistan Regional Government in Iraq. “We want to stay in Syria with our culture and our language,”
  • Turkey “opened the border for terrorism,” she said. “Terrorism didn’t come from the sky.”
  • The dispute between Turkey and the Kurds has undermined the US goal of closing a 68-mile section of the Turkey-Syria border that has been controlled by IS and used for the transit of foreign fighters into Syria.
Ed Webb

Russia, Turkey and Iran reach agreement on Syria committee | World news | The Guardian - 0 views

  • The three self-appointed guarantors of the Syrian peace process – Russia, Turkey and Iran – have spurned efforts by the UN to change the composition of a committee due to write a new constitution for the country. The 150-strong committee, due to start work next year, could pave the way for UN-supervised elections and a possible peace process that would encourage millions of refugees to return to their homeland. The agreement on the committee’s formation was formally reached by the three countries on Tuesday in Geneva and the proposals passed to the UN special envoy for Syria, Staffan de Mistura, for his endorsement and for consideration by the UN security council on Thursday
  • the west has lost control of the Syrian crisis to the trio of countries in the so-called Astana Group
  • The UN said Russia rejected five names that De Mistura wanted to add to the list, and the envoy’s absence from the brief press conference did not bode well.
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  • De Mistura said there was an extra mile to go in the marathon to construct a credible and balanced constitutional committee, and his successor would have to take up the task in the new year
  • the state department’s leverage in Syria as anything but a spoiler is limited
  • The official Syrian opposition, the Syrian Negotiating Committee, has previously complained that the proposed committee is not politically balanced and may not touch sufficiently on the powers of the president.
  • The proposed committee consists of government supporters, opposition members and a neutral group from civilian society. The true political allegiance of the third group is critical since it will hold the political balance of power.
  • “The last word is with us, with the UN, not with any country, as good and as powerful as they may be.”
  • De Mistura, in briefing the UN security council this week, will have to address US suspicions and set out how he thinks the committee can be made more balanced and credible. Details of how the committee would operate or be chaired appear to be only sketchily agreed. President Bashar al-Assad wants the committee to meet in Damascus, a venue rejected by the opposition.
  • On Sunday Çavuşoğlu said he could envisage Turkey accepting Assad remaining as president if he was elected in free and fair elections. Turkey, along with Saudi Arabia, has done the most to support the severely weakened opposition
  • the European Union has said it will not provide reconstruction money for Syria unless democratic elections are agreed and supervised by the UN in which refugees are given a right to vote
Ed Webb

Russia Is in the Middle East to Stay - Foreign Policy - 1 views

  • two radically different conceptions of Russian power have emerged. Within the Beltway, many analysts have come to understand the Russian demonstration of power and influence in the Middle East as an indicator that the global rivalry between Washington and Moscow of the past is also the present and future. Yet there also remains a small group of dissenters — Russia specialists, former U.S. officials, and journalists — to this view. They believe the Russians are actually quite weak, financially strapped, and caught in Syria. The best they can say is that Putin is playing a bad hand well
  • it’s payback time for almost three decades of Moscow’s humiliation. And what better place to start than the Middle East, where the United States is already widely resented even among its allies
  • Since Moscow’s demonstration of strength (with Iran’s help) in Syria, the Russians have asserted themselves as a credible alternative to the Americans with traditional U.S. allies. With arms sales, economic deals, and diplomatic maneuvering, Russia has been effective in pulling Turkey and Egypt away from the United States, though not completely, and closer to Russia’s orbit
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  • now that the United States is the world’s leading producer of petroleum, there is likely to be more cooperation between the Russians and the Arab Gulf states in an effort to ensure that global oil prices are favorable to their interests
  • In the span of less than a decade, the Middle East has gone from a region in which the United States was overwhelmingly predominant to one that Washington and Moscow contest
  • The Russians are not going away, they have a strategy to weaken the West, and it starts in the Middle East. Moreover, Moscow no longer has the ideological baggage of communism, making it easier for it to make inroads in the region
  • The Turks, Egyptians, Israelis, Saudis, and Emiratis are sophisticated observers of American politics. They recognize that the political dysfunction of Washington can affect bilateral relations. Over the last decade, Egypt, Saudi Arabia, and Israel have become divisive topics in the United States. There is also the spectacle of the American legislative and executive branches being unable to manage the most routine tasks of governance without getting bogged down in ideological warfare. This makes leaders in the Middle East who have long relied on American security nervous that the United States is in decline, and they have thus begun to pursue, however tentatively, another option — Russia.
  • Leaving the Saudis to bleed in Yemen is not just a strategic gain for Tehran, but also for Moscow, which would be only too happy to see Washington’s primary Arab ally stuck there and in need of a lifeline that U.S. policymakers are too ambivalent to provide
  • Moscow’s demonstration of military force in Syria is primarily against poorly trained militias, bands of extremists, and innocent children. The gunfight between Russian “mercenaries” and American soldiers in February that reportedly killed most of the Russian forces and no Americans indicates that whatever brute force Russia can bring to bear, they are simply no match for the United States. This is a fact that the U.S. ambassadors, envoys, and sons-in-law need to convey to decision-makers in Cairo, Ankara, and other capitals where Moscow is selling its military hardware.
  • the United States has to make it clear that there are consequences for this military trolling. There are, of course, risks of escalation in this approach, but there are also significant disadvantages to demonstrating weakness in the face of Russian provocations
  • If the United States is, as Secretary of Defense James Mattis averred in January, in a new era of great power competition, it is time the United States treated the situation as seriously as it is. Putin must be disabused of the notion that the Middle East is the most propitious place to begin weakening the West and the United States. Americans once before contained and rolled back Moscow’s influence in the region; there is no reason to believe that they cannot do it again — but only if they have the wisdom to recognize what is important in the world right now and the collective stomach to meet the challenge. It is no longer clear to those in the Middle East that they do.
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    I know and like Steve. I don't agree with all of this, but it is a productive intervention.
Ed Webb

Turkey and Russia react with fury to G20 spying revelations | World news | guardian.co.uk - 0 views

    • Ed Webb
       
      Spying on Turkey, a NATO ally, is actually a much bigger deal than spying on Russia. On the other hand, everyone spies on everyone. All this fuss is Casablanca-style "shocked! shocked!"
  • "Russia shouldn't take this [spying] for granted, but shouldn't dramatise the situation either. Intelligence agencies exist to spy not only on private citizens but on top government leaders too."
Ed Webb

The End of the Turkish-American 'Alliance' after the Failed Coup? - The New Turkey - 0 views

  • the identification of the Gülenists as the main culprit of the failed coup, and the United States as Gülen’s primary foreign sponsor, has quickly become the basis of a national consensus
  • The suspicion of a US-backed military coup has a reasonable basis in Turkish history, since many historians and intellectuals concur that the United States backed the 1960 and the 1980 military coups, as well as the military memorandum (de facto coup) of 1971 and the so-called post-modern coup of 1997.
  • Turkish-American relations have already suffered and are likely to suffer more in the near future as a result of the failed coup and the suspiciously anti-democratic US responses to the coup
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  • the breakup of the Turkish-American alliance, and Turkey’s realignment with one or several other great powers to balance against the United States, since the United States would then be reclassified as a hostile power for sheltering Gülen and the leading Gülenists, who are implicated in the failed coup plot. Moreover, the United States may even be designated as the foreign state sponsor of Gülenist terrorism against Turkey. Russia, Brazil, Iran, Saudi Arabia, China, Pakistan, and France are among the many middle or great powers with which Turkey has established amicable relations, at least for a limited time (in the case of Russia and Iran), under AK Party governments since 2002. Russia is the most likely and nearby great power with which Turkey may seek to build such a balancing coalition in the near future
  • a palpable pro-Russian reorientation after the coup
  • the Turkish pilots who shot down a Russian bomber aircraft in November 24, 2015, which brought Turkey and Russia to the brink of war, have been taken into custody as suspects in the Gülenist conspiracy
  • if a Turkish-Russian alliance was to be established, for example, the difference in bilateral military economic capabilities would not be as incomparable or as asymmetric as the difference in bilateral capabilities in the Turkish-American alliance
  • it is still more likely, for structural reasons and simple path dependence, that the Turkish-American alliance will persist after a lengthy and tortuous renegotiation, in which significant political capital will have to be spent on both sides of the Atlantic. If such a renegotiation of the alliance succeeds, in the end, Turkey will continue to be a key US ally as it has been since 1952, but Turkey’s status within the Western alliance might then resemble that of France, a country that has been a US ally but with a set of preferences and priorities that differ significantly from the United States in certain important respects
Ed Webb

Does Erdogan think Sisi is bluffing in Libya? - 0 views

  • UN Secretary-General Antonio Guterres in July described conditions in Libya as "gloomy," adding that "time is not on our side." He expressed concern about foreign interference in the war, the 400,000 Libyans displaced by the conflict, and the spike in COVID-19 cases.
  • The World Bank had designated Libya at risk of endemic poverty as a fragile state experiencing high intensity conflict, and that was before the pandemic.
  • Egypt backs Khalifa Hifter, a military strongman whose forces have been rapidly losing ground to the Libyan Government of National Accord thanks to Turkey’s military intervention on the government side.
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  • Libya has become one of the Middle East’s regional fault lines, with Egypt, the United Arab Emirates and Saudi Arabia on one side, and Turkey and Qatar on the other
  • Russia and France also back Hifter, and Erdogan has been at odds with NATO ally French President Emmanuel Macron over differences over Libya
  • The United Nations recognizes the Government of National Accord, so Erdogan believes he has international legitimacy on his side.
  • If this all seems very 1914, even worse are the random acts that can escalate things.
  • On July 20, Sisi said a parliamentary resolution that day approving combat missions outside the country’s border had provided Egypt’s intervention in Libya “international legitimacy” if it decides to deploy
  • Sisi declared any move by the government to take Sirte, the hometown of former dictator Moammar Gadhafi and gateway to the fields, as a red line for Egypt. Sisi also has called for further arming of Libyan tribes in the region to hold off the Turkish-backed government offensive
  • Erdogan is loath to grant a seat at the table to Hifter, and may not take Sisi’s warning about the use of force seriously, Metin Gurcan writes.  “Sisi may be eager for an intervention, hoping to boost his popularity in the Arab world and sustain the UAE’s financial backing, but Ankara doubts the Egyptian military shares his eagerness,” writes Gurcan. “According to Turkish assessments, Egypt’s military would be reluctant to engage in a cross-border campaign with ambiguous military goals and risk losses that might damage its credibility and fuel internal rifts.”
  • The Turkish assessment is that Algeria and Tunisia would see Egyptian intervention as an unwanted escalation, as Simon Speakman Cordall explains, and that the United States and Russia, both close allies of Egypt, would advise against it.
  • “All those who have faith in Erdogan's Libyan policy, which is now contained by Russia, can count on the inconsistency of Turkey's president. There is nothing permanent for Erdogan. Hence, although a war with Egypt that could have erupted due to his miscalculation is averted for the time being, one can never know what the near future might bring.”
  • Erdogan’s personal relationships with both Putin and Trump have “strengthened Ankara’s hand” and “averted serious crises, which could even have escalated into direct military confrontations between Turkish and US/Russian forces, most notably in Syria” adding, “Ankara has also not held back from using its ties with Moscow and Washington against these powers, depending on the occasion.”
  • The Libyan conflict is, regrettably, on a path of "Syrianization," as Fehim Tastekin called it, the result of the jihadis shipped there by Turkey to fight on behalf of the Libyan government against Hifter.
  • as in Syria, Putin is working all angles, not only with Erdogan and Sisi, but also with Abu Dhabi Crown Prince Mohammed bin Zayed (known as MBZ) and others
Ed Webb

US military accuses Russia of sending fighter jets to Libyan war | Financial Times - 0 views

  • The US military has accused Russia of deploying fighter jets to Libya to support renegade general Khalifa Haftar in a sign of Washington’s mounting concerns about Moscow’s role in the conflict in the north African state.
  • the US military said it had tracked the fourth-generation fighter jets as they flew from a Russian airbase to Libya, via Syria, where it believed the aircraft were repainted to camouflage their origin.
  • they are expanding their military footprint in Africa using government-supported mercenary groups like Wagner
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  • Libya’s interior ministry has said the aircraft included at least six MiG-29s and two Sukhoi 24s, and had flown to Libya from Hmeimim air base in Syria. Russia and the Wagner group have deployed forces in Syria to back president Bashar al-Assad in the country’s nine-year civil war.
  • Western diplomats view Russia’s role in Libya as opportunistic — a chance for Moscow to assert its influence in the region and expand its foothold in the east Mediterranean.
  • Diplomats say hundreds of Wagner fighters have been deployed to support Gen Haftar in Libya for some time. But more recently, an estimated 2,000 Syrian fighters have been dispatched to bolster Gen Haftar’s self-styled Libyan National Army.
  • Meanwhile, Turkey has increased its support for the government in Tripoli by dispatching several thousand Syrian militias and equipment, including Hawk air defence systems, that have negated Gen Haftar’s air superiority.
  • Fighters loyal to the UN-backed government took control of al-Watiya air base this month after a battle in which Turkish drones destroyed Russian-made Pantsir air-defence systems.
  • “That will be Russian mercenary pilots flying Russian-supplied aircraft to bomb Libyans.”
  • Frederic Wehrey, Libya specialist at the Carnegie Endowment for International Peace, described the Africom statement “as a major bold move against Russia” but expressed doubt on whether it would “translate into a more muscular US policy on Libya”.“The big unknown is the White House . . . because there are other allies that still have a hand in the fight like France and the Emirates, so will the US want to expend the political capital [by opposing those countries too].”
Ed Webb

A New Path For Syria's Kurds - War on the Rocks - 0 views

  • in a dramatic reversal in its foreign policy, Ankara is now looking to normalize relations with Damascus
  • Ankara has long supported the opposition and anti-regime forces in Syria and controls a huge chunk of Syrian territory in the north. For the United States and European powers, Turkish-Syrian normalization would represent a dramatic shift, fundamentally altering the strategic calculus in Syria and directly threatening the position of U.S.-backed Syrian Kurds — given that both Ankara and Damascus want to see their territorial control and autonomous governing curtailed or brought under the auspices of a centralized Syrian government. 
  • The right approach is not arming Kurds or offering them the false promise of U.S. military backing to counter a Syrian-Turkish front but supporting them politically to secure a modus vivendi with the governments in Ankara and Damascus. To survive, Kurds need to reach an agreement with both. This will necessitate supporting the Kurds in their political dialogue with Damascus and pushing the Kurdistan Workers’ Party — the U.S.- and Turkish-designated terrorist group — to declare a ceasefire inside Turkey ahead of the June 2023 elections, easing the pressure on Syrian Kurds. This could open up the possibility of a political softening on the Turkish-Kurdish front, remove a major irritant in the U.S.-Turkish relationship, and preserve some Western influence inside Syria. 
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  • the Turkish president has formed an alliance with ultra-nationalists to secure his power — and the continuation of the war against the Kurdistan Worker’s Party and its Syrian offshoot, the Syrian Democratic Forces, has served as a lubricant in this partnership
  • Erdogan is no doubt calculating that an agreement with Damascus would secure a greenlight from Russia to launch a new incursion or coordinated action with Damascus against the Kurds ahead of the June 2023 elections, helping rally Turkish voters around the flag
  • a rapprochement with Syria helps Turkey manage its relationship with Moscow at a time when Erdogan needs Russia’s consent for action in Syria and money to help prop up the country’s collapsing economy. Turkey and Russia have a complicated relationship which simultaneously involves competition and cooperation, often at the expense of Western influence in Syria, Libya, and the Caucasus
  • the fragile peace in the northeast, where an estimated 900 U.S. troops are stationed alongside the Syrian Democratic Forces
  • Syria has also become an arena of great power projection for Russia and a site of proxy warfare within the broader great power rivalry with the United States. Putin might eventually choose to greenlight a limited Turkish incursion or coordinate a joint Turkish-Syrian pincer movement against the Kurds, knowing that this could keep Ankara happy ahead of the elections and would create a crisis inside NATO. He also knows that Turkish-Syrian normalization would put immense pressure on the residual U.S. position in Syria.
  • With the Assad regime, the Kurds should be aiming for an agreement that guarantees more autonomy than Damascus is currently willing to give but recognize they will have to accept less than what they want
  • Russia and the regime lack the resources to rebuild Syria and restore legitimacy to its government
  • There is already speculation that the ruling Justice and Development Party is looking for ways to secure conservative Kurdish electoral support or to peel Kurds away from the opposition block
  • A precipitous withdrawal would create a public humiliation like Afghanistan and a free-for-all which would likely leave the Kurds devastated and the region raked by new instability — which, in turn, could well be exploited by ISIL in a manner that eventually pulls the United States back to Syria for a counter-terrorism campaign
Ed Webb

A New Operation in Syria? - Carnegie Middle East Center - Carnegie Endowment for Intern... - 0 views

  • Ankara controls large swathes of territory in northern Syria, but its previous attempts at establishing a continuous 30-kilometer-deep safety zone along the entirety of the Turkish-Syrian border have so far failed. Turkish troops and their affiliates still do not control a stretch of around 70 kilometers east and west of the city of Kobani, as well as a larger portion of territory around the city of Qamishli, all the way to the Tigris River in the east
  • Ankara may be calculating that Russia, otherwise busy with the protracted invasion of Ukraine, may not have the time and resources to prevent a new Turkish incursion, nor the political legitimacy to object to it given its own operations in Donbas
  • With Erdoğan facing dramatically unfavorable preelection polls and a dire economic situation, including sky-rocketing inflation and declining levels of foreign investment, his temptation to rally voters around the flag and silence criticism from the opposition coalition on a subject of national interest is obvious
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  • always eager to present itself as a power independent from Russia and the West
  • if the operation proves to be successful and sustainable, it would reinforce Ankara’s plan to “voluntarily repatriate” Syrian refugees from Turkey
  • The United States maintain a small contingent of 900 troops in northeastern Syria, mainly to prevent a resurgence of the Islamic State. Washington’s cooperation with the YPG in this region has been one of the thorniest issues in bilateral relations between Turkey and the United States. A new Turkish operation would probably clash with U.S. interests on the ground, further aggravating the diplomatic spat between Turkey and its Western allies over the sale of U.S. warplanes, relations with Russia, and NATO enlargement.
  • a majority of Syrian refugees currently in Turkey are Sunni Arabs, so by relocating them to northern Syria Turkey would achieve the strategic objective of diluting the Kurdish populations living there
  • other Syrian areas already under Turkey’s control show signs of a lasting presence. Local administrative and security structures are appointed by Turkey, public services such as health and post offices are run by Turkey, and the de facto currency is the Turkish lira
stephensakowicz

U.S. Officials 'Concerned' as Iran, Russia Plan $10 Billion Arms Deal - 1 views

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    U.S. officials are expressing concern about a budding arms pact between Iran and Russia estimated to be worth more than $10 billion, according to State Department officials who spoke to the Washington Free Beacon and expressed alarm over the "increased Iranian military capability."
Ed Webb

The Coronavirus Oil Shock Is Just Getting Started - 0 views

  • People in the West tend to think about oil shocks from the perspective of the consumer. They notice when prices go up. The price spikes in 1973 and 1979 triggered by boycotts by oil producers are etched in their collective consciousness, as price controls left Americans lining up for gas and European governments imposed weekend driving bans. This was more than an economic shock. The balance of power in the world economy seemed to be shifting from the developed to the developing world.
  • If a surge in fossil fuel prices rearranges the world economy, the effect also operates in reverse. For the vast majority of countries in the world, the decline in oil prices is a boon. Among emerging markets, Indonesia, Philippines, India, Argentina, Turkey, and South Africa all benefit, as imported fuel is a big part of their import bill. Cheaper energy will cushion the pain of the COVID-19 recession. But at the same time, and by the same token, plunging oil prices deliver a concentrated and devastating shock to the producers. By comparison with the diffuse benefit enjoyed by consumers, the producers suffer immediate immiseration.
  • In inflation-adjusted terms, oil prices are similar to those last seen in the 1950s, when the Persian Gulf states were little more than clients of the oil majors, the United States and the British Empire
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  • Fiscal crises caused by falling prices limit governments’ room for domestic maneuver and force painful political choices
  • The economic profile of the Gulf states is not, however, typical of most oil-producing states. Most have a much lower ratio of oil reserves to population. Many large oil exporters have large and rapidly growing populations that are hungry for consumption, social spending, subsidies, and investment
  • In February, even before the coronavirus hit, the International Monetary Fund was warning Saudi Arabia and the United Arab Emirates that by 2034 they would be net debtors to the rest of the world. That prediction was based on a 2020 price of $55 per barrel. At a price of $30, that timeline will shorten. And even in the Gulf there are weak links. Bahrain avoids financial crisis only through the financial patronage of Saudi Arabia. Oman is in even worse shape. Its government debt is so heavily discounted that it may soon slip into the distressed debt category
  • Ecuador is the second Latin American country after Argentina to enter technical default this year.
  • Populous middle-income countries that depend critically on oil are uniquely vulnerable. Iran is a special case because of the punitive sanctions regime imposed by the United States. But its neighbor Iraq, with a population of 38 million and a government budget that is 90 percent dependent on oil, will struggle to keep civil servants paid.
  • Algeria—with a population of 44 million and an official unemployment rate of 15 percent—depends on oil and gas imports for 85 percent of its foreign exchange revenue
  • The oil and gas boom of the early 2000s provided the financial foundation for the subsequent pacification of Algerian society under National Liberation Front President Abdelaziz Bouteflika. Algeria’s giant military, the basic pillar of the regime, was the chief beneficiaries of this largesse, along with its Russian arms suppliers. The country’s foreign currency reserves peaked at $200 billion in 2012. Spending this windfall on assistance programs and subsidies allowed Bouteflika’s government to survive the initial wave of protests during the Arab Spring. But with oil prices trending down, this was not a sustainable long-run course. By 2018 the government’s oil stabilization fund, which once held reserves worth more than one-third of GDP, had been depleted. Given Algeria’s yawning trade deficit, the IMF expects reserves to fall below $13 billion in 2021. A strict COVID-19 lockdown is containing popular protest for now, but given that the fragile government in Algiers is now bracing for budget cuts of 30 percent, do not expect that calm to last.
  • Before last month’s price collapse, Angola was already spending between one fifth and one third of its export revenues on debt service. That burden is now bound to increase significantly. Ten-year Angolan bonds were this week trading at 44 cents on the dollar. Having been downgraded to a lowly CCC+, it is now widely considered to be at imminent risk of default. Because servicing its debts requires a share of public spending six times larger than that which Angola spends on the health of its citizens, the case for doing so in the face of the COVID-19 crisis is unarguable.
  • Faced with the price collapse of 2020, Finance Minister Zainab Ahmed has declared that Nigeria is now in “crisis.” In March, the rating agency Standard & Poor’s lowered Nigeria’s sovereign debt rating to B-. This will raise the cost of borrowing and slow economic growth in a country in which more than 86 million people, 47 percent of the population, live in extreme poverty—the largest number in the world. Furthermore, with 65 percent of government revenues devoted to servicing existing debt, the government may have to resort to printing money to pay civil servants, further spurring an already high inflation rate caused by food supply shortages
  • The price surge of the 1970s and the nationalization of the Middle East oil industry announced the definitive end of the imperial era. The 1980s saw the creation of a market-based global energy economy. The early 2000s seemed to open the door on a new age of state capitalism, in which China was the main driver of demand and titans like Saudi Aramco and Rosneft managed supply
  • The giants such as Saudi Arabia and Russia will exploit their muscle to survive the crisis. But the same cannot so easily be said for the weaker producers. For states such as Iraq, Algeria, and Angola, the threat is nothing short of existential.
  • Beijing has so far shown little interest in exploiting the crisis for debt-book diplomacy. It has signaled its willingness to cooperate with the other members of the G-20 in supporting a debt moratorium.
  • In a century that will be marked by climate change, how useful is it to restore profits and prosperity based on fossil fuel extraction?
  • The shock of the coronavirus is offering a glimpse of the future and it is harsh. The COVID-19 crisis drives home that high-cost producers are on a dangerously unsustainable path that can’t be resolved by states propping up their uncompetitive oil sectors. Even more important is the need to diversify the economies of the truly vulnerable producers in the Middle East, North Africa, sub-Saharan Africa, and Latin America.
Ed Webb

Iran says US strikes are a 'strategic mistake' - 1 views

  • Iran's foreign ministry said the strikes on Iraq and Syria "will have no result other than intensifying tensions and instability in the region".Earlier, Iraq said the US retaliatory strikes would bring "disastrous consequences" for the region.At least 16 people, including civilians, were killed as a result of the strikes, Iraqi officials said.A spokesman for Iraq's prime minister said the strikes were a "violation" of his country's sovereignty and that they would impact "the security and stability of Iraq and the region". While Syria said the US "occupation" of Syrian territory "cannot continue".
  • There have been no strikes on Iranian soil.
  • Iran has denied any role in the attack on the US base, saying it was "not involved in the decision making of resistance groups".A spokesperson for Iran's foreign ministry said US strikes on Iraq, Syria and Yemen "merely provide for the goals of the Zionist regime", referring to US ally Israel.
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  • Russia has called for an "urgent" meeting of the UN Security Council "over the threat to peace and safety created by US strikes on Syria and Iraq"
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    I thought this article had two very important themes. It is odd how Iraq is ok with Iran violating its sovereignty by fomenting terrorism within Iraq. Iraq, however, is not ok with the U.S. retaliating against these strikes. It was also ironic that Russia called an emergency meeting to discuss the U.S. threat in the region. Russia is likely trying to further assert its power in the region, as well as support Syrian allies. It is also possible that Russia could be moving to push its influence in the UN to distract from failures in Ukraine.
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