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One of the untold stories of the recent Syria-driven diplomatic flurry is how Moscow has been silently working on mollifying both Saudi Arabia and Turkey behind the scenes. That was already the case when the foreign ministers of US, Russia, Turkey and Saudi Arabia met before Vienna.Vienna was crucial not only because Iran was on the table for the first time but also because of the presence of Egypt – incidentally, fresh from recent discovery of new oil reserves, and engaging in a reinforced relationship with Russia.The absolute key point was this paragraph included in Vienna’s final declaration: “This political process will be Syrian-led and Syrian-owned, and the Syrian people will decide the future of Syria.”It’s not by accident that only Russian and Iranian media chose to give the paragraph the appropriate relevance. Because this meant the actual death of the regime change obsession, much to the distress of US neocons, Erdogan and the House of Saud.

The main point is the death of the regime change option, brought about by Moscow. And that leaves Putin free to further project his extremely elaborate strategy. He called Erdogan on Wednesday to congratulate him on his and the AKP’s election landslide. This means that now Moscow clearly has someone to talk to in Ankara. Not only about Syria. But also about gas.Putin and Erdogan will have a crucial energy-related meeting at the G20 summit on November 15 in Turkey; and there’s an upcoming visit by Erdogan to Moscow. Bets are on that the Turk Stream agreement will be – finally – reached before the end of the year. And on northern Syria, Erdogan has been forced to admit by Russian facts on the ground and skies that his no-fly zone scheme will never fly.

That leaves us with the much larger problem: the House of Saud.There’s a wall of silence surrounding the number one reason for Saudi Arabia to bomb and invade Yemen, and that is to exploit Yemen’s virgin oil lands, side by side with Israel – no less. Not to mention the strategic foolishness of picking a fight with redoubtable warriors such as the Houthis, which have sowed panic amidst the pathetic, mercenary-crammed Saudi army.Riyadh, following its American reflexes, even resorted to recruiting Academi – formerly Blackwater - to round up the usual mercenary suspects as far away as Colombia.It was also suspected from the beginning, but now it's a done deal that the responsible actor for the costly Yemen military disaster is none other than Prince Mohammad bin Salman, the King’s son who, crucially, was sent by his father to meet Putin face-to-face.

Meanwhile, Qatar will keep crying because it was counting on Syria as a destination point for its much-coveted gas pipeline to serve European customers, or at least as a key transit hub on the way to Turkey.Iran on the other hand needed both Iraq and Syria for the rival Iran-Iraq-Syria gas pipeline because Tehran could not rely on Ankara while it was under US sanctions (this will now change, fast). The point is Iranian gas won’t replace Gazprom as a major source for the EU anytime soon. If it ever did, or course, that would be a savage blow to Russia.

In oil terms, Russia and the Saudis are natural allies. Saudi Arabia cannot export natural gas; Qatar can. To get their finances in order – after all even the IMF knows they are on a highway to hell - the Saudis would have to cut back around ten percent of production with OPEC, in concert with Russia; the oil price would more than double. A 10 percent cutback would make a fortune for the House of Saud.So for both Moscow and Riyadh, a deal on the oil price, to be eventually pushed towards $100 a barrel, would make total economic sense. Arguably, in both cases, it might even mean a matter of national security.But it won’t be easy. OPEC’s latest report assumes a basket of crude oil to be quoted at only $55 in 2015, and to rise by $5 a year reaching $80 only by 2020. This state of affairs does not suit either Moscow or Riyadh.

Meanwhile, fomenting all sorts of wild speculation, ISIS/ISIL/Daesh still manages to collect as much as $50 million a month from selling crude from oilfields it controls across “Syraq”, according to the best Iraq-based estimates.The fact that this mini-oil caliphate is able to bring in equipment and technical experts from “abroad” to keep its energy sector running beggars belief. “Abroad” in this context means essentially Turkey – engineers plus equipment for extraction, refinement, transport and energy production.One of the reasons this is happening is that the US-led Coalition of the Dodgy Opportunists (CDO) – which includes Saudi Arabia and Turkey - is actually bombing the Syrian state energy infrastructure, not the mini oil-Caliphate domains. So we have the proverbial “international actors” in the region de facto aiding ISIS/ISIL/Daesh to sell crude to smugglers for as low as $10 a barrel.Saudis – as much as Russian intel - have noted how ISIS/ISIL/Daesh is able to take over the most advanced US equipment that takes months to master, and instead integrate it into their ops at once. This implies they must have been extensively trained. The Pentagon, meanwhile, sent and will be sending top military across “Syraq” with an overarching message: if you choose Russia we won’t help you.ISIS/ISIL/Daesh, for their part, never talks about freeing Jerusalem. It’s always about Mecca and Medina.

The State Department official said Kerry “reiterated that the absence of measurable progress on implementing the Geneva agreement will result in increased sanctions on Russia”. Those messages were underlined on a visit to Kiev on Tuesday by Biden, who also stressed US support for Ukraine’s new leaders — in power since the ouster in February of the pro-Kremlin president after months of pro-EU demonstrations. Biden called on Russia to pull back its forces from the border, and to reverse its annexation of the strategic Crimea peninsula last month. Russia has deployed tens of thousands of troops to Ukraine’s eastern border, while the United States was sending 600 soldiers to NATO member countries near Ukraine to boost defences in eastern Europe.

Russia has dismissed the threat of new sanctions and insists that it has the right to protect the Russian-speaking population in Ukraine, a former Soviet republic.

… I have instructed Chechnya’s Security Council Secretary Vakhit Usmayev to conduct a thorough investigation of Zaur Dadayev’s resignation and to scrutinize his behavior and morale on the eve of leaving the service. … In any case, if Dadayev’s guilt is established in court, it will have to be admitted that by taking a human life he committed a grave crime. But I must say once again that he would have never taken a single step against Russia, for the sake of which he had risked his own life for many years. Beslan Shavanov, the man killed during an attempt to detain him, was a brave soldier, too. We hope that a thorough investigation will follow to show if Dadayev is really guilty, and if yes, what was the real reason behind his actions.”.

Western and Arab Support of Terrorists could justify a Mole-Hunt in the Russian Federation’s Security Services. Chechen and Ingushetian Islamist terrorist organizations are known for their close ties to foreign intelligence services. In 2013 the then Chief of Saudi Arabia’s Intelligence, Prince Bandar admitted that Saudi Arabia uses and controls Chechen and other Caucasian terrorists promising President Putin “a safe Winter Olympic Games in Sochi” in exchange for Russian willingness to have a Saudi-friendly regime installed in Syria. The released minutes of the meeting between Putin and Bandar quote Bandar as saying: “I can give you a guarantee to protect the Winter Olympics in the city of Sochi on the Black Sea next year. The Chechen groups that threaten the security of the games are controlled by us, and they will not move in the direction of the Syrian territory without coordinating with us. These groups don´t scare us. We use them in the face of the Syrian regime but they will have no role or influence in Syria´s political future”.

Chechen President Ramzan Kadyrov, for his part, has previously accused U.S. intelligence officials, including David Petraeus, for involvement in “flipping” detainees at Camp Bucca and at black CIA sites, including Caliph Ibrahim of the self-proclaimed Islamic State (ISIS / ISIL) Al-Baghdadi, a.k.a. Al-Badri or Caliph Ibrahim. In Helsinki, the capital of Finland the Kavkaz Center is maintaining a “pro-Caucasus Emirate” website. The Center provided PR support to the now deceased terrorist leader Doku Umarov and his terrorist network. Umarov would threaten to disrupt the 2014 Sochi Winter Olympic Games before he was killed in an explosion. U.S. Civil Society organizations as well as CIA and JSOC fronts like USAID and the National Endowment for Democracy (NED) are known for their support of “Caucasian Rebels or Freedom Fighters”.

A shortlist of the civil society organizations which have been implicated in supporting Russian terrorist organizations includes the Jamestown Foundation, the United States-Chechen Republic Alliance Inc., the American Committee for Peace in the Caucasus (ACPC), Freedom House, the Open Society Foundation, funded by George Soros, among many others.

he former U.S. National Security Adviser Zbigniev Brzezinski is generally known as one of the main enablers and sponsors of the “Chechen Representation in the United States” led by Alisher Usmanov. Brzezinsky, for his part, is strongly supported by Rockefeller Foundation money. Brzezinski is according to several analysts pathologically obsessed with dividing Russia into at least six separate States” to reign in Moscow under the umbrella of a U.S. hegemony. It is noteworthy that Boris Nemtsov and the RPR-Psarnas party had close ties to the National Endowment of Democracy (NED). In 2012, Russian President Vladimir Putin would state that “he knows as a meter of fact” that especially foreign-backed organizations, over the last ten years, have used the strategy to sacrifice one of their own to create a martyr”. (see video)

The alleged involvement of Chechen and Ingushetian nationals in the murder of Boris Nemtsov and the confession of the former Interior Ministry officer Dadayev is not unlikely to prompt in-depth “mole-hunt” operations in the federal and national Russian, Chechen, Ingushetian and other security forces as well as mole-hunts in foreign-backed NGO’s.

Sechin well knows the background to the Saudi oil price war and the fact it was triggered by a meeting between US State Department’s John Kerry and the late Saudi King Abdullah in the desert Kingdom in September 2014, where Kerry reportedly urged the Saudis to crash oil prices. For Kerry the aim was to put unbearable pressure on Russia, then hit by US and EU financial sanctions. For the Saudis, it was a golden opportunity to eliminate the biggest disturbing factor in the OPEC domination of world oil markets–the booming production of US unconventional shale oil that had made the USA the world’s largest oil producer in 2014. Ironically, as Sechin told the FT, the US-Saudi deal and the US financial sanctions have backfired on the US strategists. The Russian ruble lost more than 50% of its dollar value by January 2015. Oil prices similarly fell from $103 a barrel in September 2014 to less than $50 today. But Russian oil production costs are calculated in rubles, not dollars. So, as Sechin states, the dollar cost of Rosneft oil production has dropped dramatically today from $5 a barrel before the sanctions to only $3 a barrel, a level similar to that of Arab OPEC producers like Saudi Arabia. Rosneft is not hurting despite sanctions. USA shale oil by contrast is unconventional and vastly more costly. Industry estimates depending on the shale field and the company, put costs of shale in a range of $60-80 a barrel just to break even. The current ongoing shakeout in the US shale industry and prospects of rising US interest rates dictate the demise of shale oil from the US for years if not decades to come as Wall Street lenders and shale company junk bond investors suffer huge losses.

For companies such as Severstal, which exports nearly 20 percent of its output, the benefits of devaluation are obvious: All of the costs that go into producing steel in Russia—iron ore, manganese, nickel, labor, electricity—are priced in rubles. That means the companies’ costs relative to their international competitors’ have plummeted. At the same time, any steel they sell abroad is priced in either U.S. dollars or euros—both of which have risen in value against the ruble. When the companies bring those sales dollars home, they are worth far more in rubles than they were a year ago.The same phenomenon applies in a big way to Russia’s vast energy sector. Moscow exports huge amounts of oil and gas, and brings in dollars for it. That’s why Rosneft, a huge oil producer with close ties to Putin’s Kremlin, reported a revenue increase of 18 percent last year, compared with an increase of less than 1 percent for its international competitors, according to Bloomberg data. This is a big part of the reason why Russia’s tax revenue has not fallen off a cliff, mitigating somewhat the pain of last year’s crisis. Russia’s oil output is still near record highs—one of the reasons, along with continued full-tilt Saudi output, that prices remain so weak.

The world shouldn’t have been surprised by what has happened. More or less the same thing happened in 1998, when the Asian financial crisis spread to Russia and Moscow both defaulted on its international debt and devalued the ruble. There was an immediate negative economic shock, followed by an import substitution-led recovery that was sharper than most international economists at the time believed would occur. “This argues for an economic recovery now similar in nature, if not necessarily in magnitude, to the one after 1998,” says Ivan Tchakarov, an economist at Citicorp.

When oil prices crumbled last year, there was a fair bit of hope in Western capitals that the pain would do what sanctions hadn’t yet: force a Russian climbdown in Ukraine, and perhaps prompt Putin to turn back inward and tend to his troubles at home.Maybe that was wishful thinking. Whatever the case, it’s now a moot point. The Russian economy is showing enough resilience that it appears unlikely to check Putin’s behavior abroad. Public opinion surveys at home provide little evidence that the people have turned on him. For Washington and its allies, the time for wishful thinking is over. Vladimir Putin is not going anywhere. 

But then last June, Graham, while on the rounds of the Sunday talk shows and apparently freaked out about Islamic State’s sweep in northern and western Iraq, called for Washington to work with Iran (and presumably with the hated Revolutionary Guard) to protect Baghdad. The US has to “have to have some dialogue with the Iranians that says, ‘let’s coordinate our efforts,’ but has some red lines,” he said on one show. “The Iranians can provide some assets to make sure Baghdad doesn’t fall,” he said on yet another. “We need to coordinate with the Iranians. To ignore Iran and not tell them, ‘Don’t take advantage of this situation,’ would be a mistake.”

Now, to be fair to Graham, he did not explicitly endorse Netanyahu’s call for “more sanctions, and stronger sanctions” despite his promise that Congress will follow Bibi’s “lead” in dealing with Iran. Instead, he promised that Congress will vote on the Kirk-Menendez bill, or what I originally called the “Wag the Dog Act of 2014,” next month, the approval of which, according to virtually all knowledgeable observers, will result in the collapse not only of the negotiations over Iran’s nuclear program, but also of the international sanctions regime. (For a more specific analysis, you can examine Ed Levine’s assessment of the bill after it was introduced last year.) Graham, like Netanyahu himself, also insisted that he supports the administration’s efforts to negotiate a deal. “I would love nothing better than a diplomatic solution to the Iranian nuclear ambitions,” he said. “I support the Administration’s effort to try to bring this to a peaceful conclusion.” But then he went on to insist that any final agreement must include the abandonment by Tehran of its uranium enrichment capabilities—a demand that all of the P5+1 (US, UK, France, Russia, China plus Germany) consider totally unrealistic.

Now, Graham often has had a problem with getting a little carried away in his public rhetoric. Reacting to President Obama’s State of the Union Address last January, and particularly his remarks about imposing sanctions against Iran, the South Carolina senator warned that “the world is literally about to blow up.” At the 2010 Halifax International Security Forum, Graham reportedly stunned the audience—and apparently embarrassed his hosts—by calling for a full-scale attack on Iran beyond its nuclear facilities. So my view of military force would be not to just neutralize their nuclear program, which are probably dispersed and hardened, but to sink their navy, destroy their air force and deliver a decisive blow to the Revolutionary Guard. In other words, neuter that regime.

It’s pretty clear that Graham can sometimes get excitable, especially when the TV cameras are rolling. Assuming that the Kirk-Menendez bill does come to the floor next month, however, the big question is whether it will attract enough Senate Democrats to render its passage veto-proof (because there’s no doubt whatsoever that Obama will veto it). That will take 33 Democrats and/or independents and/or Republicans. At this point, I think the president should not have too much trouble getting those votes, and the fact that Graham has now taken the lead on this while on foreign soil will likely make it easier for Obama to get the Democratic support he needs. But Graham’s assurance that a Republican-led Congress will “follow [Netanyahu’s] lead” (against a US president, if necessary) should prompt a few of his fellow-Republicans to reflect just a little on the implications of such deference by a powerful US senator to a foreign leader.

Graham also had a lot to say about Hamas and withholding funding for the United Nations if it becomes more involved in seeking an Israeli-Palestinian settlement. You can read the whole transcript of his appearance with Netanyahu here and judge for yourself.