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Putin calls on EU for joint aid to Ukraine

putin-uk

BRICS Post | April 19, 2014

Russian President Vladimir Putin on Saturday called on all European states concerned to join efforts to keep the Ukrainian economy afloat.

“We do not want to undermine the Ukrainian economy or to call the reliability of [gas] transits to Europe into question. That’s why we call on all European states, all countries interested in supporting the Ukrainian economy to join the process of helping Ukraine and to flesh out measures to finance the budget,” said Putin.

The Russian President said on Saturday he currently saw no obstacles to bringing relations between Moscow and the West back to normal.

The Russian president, who appeared on the Vesti v Subbotu (Vesti on Saturday) TV show, was asked by its host Sergey Brilev about whether the relations between Russia and the West, which sank to record lows amid the ongoing political crisis in Ukraine, can improve by the end of the year.

“It depends on our partners,” Putin replied.

“I think that currently there is nothing to prevent us from normalizing [the relations] and [returning to] normal cooperation,” he continued.

The Russian Foreign Ministry has earlier condemned as “hypocrisy” attempts by the West to justify violent acts during pro-European rallies in Ukraine earlier this year, at the same time accusing pro-federalization protesters in the east of terrorism.

April 19, 2014 Posted by | Economics | , , | Leave a comment

What’s the punishment for a 300 million euro tax fraud?

By Tom Gill ⋅ RevoltingEurope ⋅ April 18, 2014

What’s the punishment for a 300 million euro tax fraud? If you are in Italy and your name is Silvio Berlusconi it is about a week hanging out with people your age.

A court in Milan ruled earlier this week that as his sentence the 77-year-old billionaire media mogul and thrice Italian PM would be performing community service in the small northern town of Cesano Boscone – “once a week and for a period of no less than four consecutive hours” – in a centre for the elderly and disabled.

The ruling came eight months after his conviction for tax fraud was made definitive by Italy’s supreme court. In August last year the country’s top court had found him guilty of having had a role in allowing his Mediaset company – which has a virtual private terrestrial TV monopoly in Italy – to fraudulently lower its tax bill by buying US film and television rights at inflated prices.

Last August, the supreme court judges handed down a four-year sentence, but immediately commuted it to a year.

Under this week’s ruling, the poor ex-premier will be subject to a curfew of 11pm and will not be able to leave the region of Lombardy.

Except, that is, to go to his home in the centre of Rome. And he will be able to do that every week from Tuesday to Thursday, providing he is back at his vast Arcore palace – the venue of his bunga bunga parties located just 40 kilometres down the road – by 11pm on the Thursday.

Furthermore, the sentence could be further cut for good behaviour to nine months.

It is not just the punishment that is scandalously soft.

Just how appropriate is it? His job may entail entertaining the elderly guests of the home – and his past life as a cruise ship crooner will no doubt help.

But according to Article 47 of the Prison Administration Act community service should only be offered to the criminal “in cases where it can be assumed that the measure…contributes to the rehabilitation of the offender and ensures the prevention of the danger of committing other crimes,” Rossella Guadagnini highlights in the Italian journal Micromega.

As Al Jazeera points out  Berlusconi claims total innocence of any crime he has ever been charged with. And he is currently involved in two other court cases.

In a trial set to start on June 20, he will appeal a seven-year prison sentence and lifetime ban from parliament for having sex with an underage 17-year-old prostitute and abusing his official powers. He is also a defendant in a trial for allegedly paying a $4m bribe to get a centre-left senator to join his party in 2006 in a move that helped bring down a rival government.

As a indicator of the seriousness of the crime of robbing a heavily indebted state blind, the punishment speaks for itself. Tax dodging - running at 130 billion euros annually officially but double that figures according to some sources – is bleeding the public coffers dry. The result is  two trillion euros in public debts, which are being used as the excuse for swinging cuts to welfare and public services, privatisation, roll back of labour rights, and attacks on public servants’ wages.

Italian businessmen with access to expensive lawyers and good political links (any serious player in Italy has them) will have been taking due note of Berlusconi’s case.

The worst of it is that, as the Guardian reports, although he has been booted out of the Senate and is now banned from office, he’ll still be ‘allowed time’ to continue his political activities – nominally behind the scenes but no doubt very visible on Italians’ screens – as head of Forza Italia.

The party is the third largest political force in the country, behind PM Matteo Renzi’s centre-left Democratic Party and Beppe Grillo’s anti-establishment Five Star Movement, according to recent polls. The first appointment is the European elections next month.

Italy has lost two decades under the rule of Berlusconi, who entered politics in person in 1994 when his political protectors – notably former right-wing Socialist PM Bettino Craxi  - melted away under the scrutiny of the same ‘communist’ judges  Berlusconi has so long railed against. But if this is the best the toghe rosse can do, it can only be said that communism is well and truly dead in Italy.

April 18, 2014 Posted by | Corruption, Economics | , , , , , | 1 Comment

DECONSTRUCTING THE RESULT OF THE FOUR PARTY TALKS

By Anatoly Karlin | Da Russophile | April 18, 2014

The media refers to the document that emerged out of today’s four party talks as an “agreement”. This is not strictly correct. The text of the document is here.

As its text makes clear what this document is in reality is not an an agreement to settle the Ukrainian crisis or even an outline of such an agreement but rather a statement of basic principles around which an agreement should be negotiated. The real agreement (if it comes about) will emerge from negotiations based on the principles set out in this document.

A number of points:

1. Kiev’s claims to the contrary notwithstanding, the statement that “all sides must refrain from all violence, intimidation and provocative actions” clearly rules out the “anti terrorist operation” in the eastern Ukraine that Kiev launched on Sunday;

2. As Lavrov has correctly pointed out the provisions in the third paragraph that require the disarmament and dissolution of armed groups is clearly intended to refer as much to Right Sector and the Maidan Self Defence Force as it does to the protesters in the east. Note specifically that the statement calls for a general amnesty except for those who have committed capital crimes (ie. murder). So far no protesters in the east have murdered anyone. Even Kiev admits that none of its soldiers have so far been killed. The same obviously cannot be said of Right Sector and of the Maidan Self Defence Force even if one disregards their likely responsibility for the sniper killings in Kiev on 20th February 2014;

3. The document clearly refers to Maidan itself, which it says must be cleared. Specifically alongside illegally occupied buildings the document refers to “all illegally occupied streets, squares and other public places in Ukrainian cities”. The reference to “squares” clearly is intended to refer to Maidan, which the militants in Kiev have said they will continue to occupy at least until the elections on 25th May 2014 and even beyond;

4. Importantly there is NO time line in the document. There is no demand therefore that buildings be evacuated by any particular date or time. That has to be agreed and coordinated with the OSCE monitors on the ground. The people in the eastern Ukraine are therefore entirely within their rights to stay in the buildings at the moment until a timeline is agreed with the OSCE monitors, one requirement of which will surely be parallel evacuations of occupied squares and buildings in Kiev and the west including Maidan.

5. The referral to the OSCE as the enforcement and mediation agency between the regime and its opponents gives Russia a formal role in the process since it is a member of the OSCE. By contrast the negotiations which took place before 21st February 2014 were negotiated and mediated by the EU of which Russia is not a member;

6. The reference to the fact that in the negotiations concerning constitutional changes there should be “outreach to all the Ukraine’s regions and constituencies” (note especially use of the word “constituencies”) gives a role to the protesters in the east in the negotiations and not just to those formal official bodies currently recognised by Kiev.

This document on its face therefore represents a shift towards the Russian/east Ukrainian side. Indeed it basically sets out principles Russia has been arguing for ever since Yanukovitch was deposed on 22nd February 2014.

Unfortunately that does not mean this road map is going to be successfully followed. Already Kiev is trying to argue that the “anti terrorist operation” it has ordered is somehow exempt from it (it isn’t) whilst the US is threatening to impose more sanctions on Russia if following the weekend Russia fails to impose pressure on the eastern Ukrainians to evacuate buildings they occupy without the US undertaking to put any corresponding pressure on its clients in Kiev (shades of Syria here). It is very easy to see how the US and its allies could then blame Russia for the failure of the road map whilst having caused that failure themselves.

However the Russians do have a number of strong cards to play of their own:

1. The growing unrest in the Donbass, which will almost certainly spread to more regions of the eastern Ukraine unless some serious concessions are made. The events of the last few days have exposed Kiev’s difficulties in suppressing this unrest. Significantly no further step in pursuit of the “anti terrorist operation” seems to have been taken today as Kiev reels from the military defections of yesterday;

2. Russia as Putin pointedly reminded everybody in his television marathon today can always refuse to recognise the results of the Presidential elections on 25th May 2014 if the negotiations are failing to make progress and also has authority from the Federation Council to send troops into the eastern Ukraine if the situation there deteriorates further. A refusal to recognise the results of the election will further undermine the legitimacy of whoever is elected. It is now clear that there will be no significant military resistance from forces loyal to Kiev if the Russian army moves into the eastern Ukraine. If that happens the likelihood is that Kiev will lose the eastern Ukraine forever (note Putin’s pointed reference to “Novorossiya” in his television marathon today) – a nightmare scenario for both Kiev and the west though not one Russia is pursuing at the moment;

3. It is now clear that without Russia’s assistance the possibility of stabilising the Ukraine’s economy quite simply does not exist. The last paragraph specifically refers to the importance of the Ukraine “financial and economic stability” to “the participants” and says “the participants…. would be ready to discuss additional support as the above steps are implemented”. The most important of the “participants” in this regard is Russia. It bears repeating (as Putin has recently pointed out) that Russia is the only participant so far providing any economic assistance to the Ukraine at all. The US is only offering $1 billion in loan guarantees and the EU is offering just 1.6 billion euros none of which have so far been provided. What this document in effect therefore says is that whilst Russia is prepared to assist in the stabilisation of the Ukraine’s economy its help is conditional on the fulfilment of the provisions of the road map;

4. It is becoming increasingly clear that there is growing resistance within the EU to further sanctions against Russia. The fact that a process has now been launched to settle this crisis will redouble European reluctance to introduce more sanctions and will increase pressure within the EU for the process to be treated seriously so that it can succeed.

In conclusion, we are not out of the woods or anywhere close. This is not the beginning of the end of the crisis. But we may be a small step closer to that point. A lot will depend on what happens next and the key decisions will be made on the ground in the Ukraine itself.

April 18, 2014 Posted by | Civil Liberties, Economics | , , , | Leave a comment

BRICS countries to set up their own IMF

By Olga Samofalova | Russia Beyond the Headlines | April 14, 2014

The BRICS countries (Brazil, Russia, India, China and South Africa) have made significant progress in setting up structures that would serve as an alternative to the International Monetary Fund and the World Bank, which are dominated by the U.S. and the EU. A currency reserve pool, as a replacement for the IMF, and a BRICS development bank, as a replacement for the World Bank, will begin operating as soon as in 2015, Russian Ambassador at Large Vadim Lukov has said.

Brazil has already drafted a charter for the BRICS Development Bank, while Russia is drawing up intergovernmental agreements on setting the bank up, he added.

In addition, the BRICS countries have already agreed on the amount of authorized capital for the new institutions: $100 billion each. “Talks are under way on the distribution of the initial capital of $50 billion between the partners and on the location for the headquarters of the bank. Each of the BRICS countries has expressed a considerable interest in having the headquarters on its territory,” Lukov said.

It is expected that contributions to the currency reserve pool will be as follows: China, $41 billion; Brazil, India, and Russia, $18 billion each; and South Africa, $5 billion. The amount of the contributions reflects the size of the countries’ economies.

By way of comparison, the IMF reserves, which are set by the Special Drawing Rights (SDR), currently stand at 238.4 billion euros, or $369.52 billion dollars. In terms of amounts, the BRICS currency reserve pool is, of course, inferior to the IMF. However, $100 billion should be quite sufficient for five countries, whereas the IMF comprises 188 countries – which may require financial assistance at any time.

BRICS Development Bank

The BRICS countries are setting up a Development Bank as an alternative to the World Bank in order to grant loans for projects that are beneficial not for the U.S. or the EU, but for developing countries.

The purpose of the bank is to primarily finance external rather than internal projects. The founding countries believe that they are quite capable of developing their own projects themselves. For instance, Russia has a National Wealth Fund for this purpose.

“Loans from the Development Bank will be aimed not so much at the BRICS countries as for investment in infrastructure projects in other countries, say, in Africa,” says Ilya Prilepsky, a member of the Economic Expert Group. “For example, it would be in BRICS’ interest to give a loan to an African country for a hydropower development program, where BRICS countries could supply their equipment or act as the main contractor.”

If the loan is provided by the IMF, the equipment will be supplied by western countries that control its operations.

The creation of the BRICS Development Bank has a political significance too, since it allows its member states to promote their interests abroad. “It is a political move that can highlight the strengthening positions of countries whose opinion is frequently ignored by their developed American and European colleagues. The stronger this union and its positions on the world arena are, the easier it will be for its members to protect their own interests,” points out Natalya Samoilova, head of research at the investment company Golden Hills-Kapital AM.

Having said that, the creation of alternative associations by no means indicates that the BRICS countries will necessarily quit the World Bank or the IMF, at least not initially, says Ilya Prilepsky.

Currency reserve pool

In addition, the BRICS currency reserve pool is a form of insurance, a cushion of sorts, in the event a BRICS country faces financial problems or a budget deficit. In Soviet times it would have been called “a mutual benefit society”, says Nikita Kulikov, deputy director of the consulting company HEADS. Some countries in the pool will act as a safety net for the other countries in the pool.

The need for such protection has become evident this year, when developing countries’ currencies, including the Russian ruble, have been falling.

The currency reserve pool will assist a member country with resolving problems with its balance of payments by making up a shortfall in foreign currency.

Assistance can be given when there is a sharp devaluation of the national currency or massive capital flight due to a softer monetary policy by the U.S. Federal Reserve System, or when there are internal problems, or a crisis, in the banking system. If banks have borrowed a lot of foreign currency cash and are unable to repay the debt, then the currency reserve pool will be able to honor those external obligations.

This structure should become a worthy alternative to the IMF, which has traditionally provided support to economies that find themselves in a budgetary emergency.

“A large part of the fund goes toward saving the euro and the national currencies of developed countries. Given that governance of the IMF is in the hands of western powers, there is little hope for assistance from the IMF in case of an emergency. That is why the currency reserve pool would come in very handy,” says ambassador Lukov.

The currency reserve pool will also help the BRICS countries to gradually establish cooperation without the use of the dollar, points out Natalya Samoilova. This, however, will take time. For the time being, it has been decided to replenish the authorized capital of the Development Bank and the Currency Reserve Pool with U.S. dollars. Thus the U.S. currency system is getting an additional boost. However, it cannot be ruled out that very soon (given the threat of U.S. and EU economic sanctions against Russia) the dollar may be replaced by the ruble and other national currencies of the BRICS counties.

April 16, 2014 Posted by | Economics, Solidarity and Activism | , , , , | 1 Comment

Russia following UN, not US, in oil deal with Iran

Press TV – April 12, 2014

Russian Finance Minister Anton Siluanov says Moscow will act in accordance with United Nations rules and not US regulations on sanctions against Iran in conducting any “oil-for-goods” transactions with Tehran.

“We act on the basis of the decisions made by the United Nations that set sanctions, set product groups which would be sanctioned and we operate within those decisions,” Siluanov told reporters during the International Monetary Fund-World Bank meetings in Washington on Friday.

“There is a nuance. Our American partners have their own legislation which differs somewhat from the provisions set by the United Nations and they follow their own rules,” he added.

On Thursday, US Treasury Secretary Jack Lew warned the Russian minister that any possible oil-for-goods deal between Moscow and Iran in the future could run afoul of US sanctions.

Lew also said it would run counter to an interim deal reached between Iran and the five permanent members of the UN Security Council – Russia, China, France, Britain and the US – plus Germany over Tehran’s nuclear energy program.

Iran and the six nations reached an interim nuclear deal on November 24, 2013, in the Swiss city of Geneva. The deal took effect on January 20.

Under the Geneva deal, the six countries agreed to provide Iran with some sanctions relief in exchange for Iran agreeing to limit certain aspects of its nuclear activities during a six-month period. It was also agreed that no nuclear-related sanctions would be imposed on the Islamic Republic within the same time frame.

April 12, 2014 Posted by | Economics | , , , | Leave a comment

Russia sets 4 conditions in return for aid to Ukraine

RT | April 12, 2014

Ukraine should recognize Crimea’s independence, reform the country’s constitution, regulate the crisis in its eastern regions and guarantee the rights of Russian speakers if it wants to get financial help from Moscow, Russia’s finance minister has said.

“If Ukraine fulfils these four conditions, then Russia will be able to propose further steps on additional help both on financial and gas issues,” Finance Minister Anton Siluanov said after meeting with his German counterpart, Wolfgang Schauble, in Washington.

Deescalating tensions in eastern Ukraine should be peaceful, based on Ukraine’s legislation, “without discrimination against Russian-speaking population, without victims and bloodshed,” Siluanov said.

It is necessary for Ukraine to conduct constitutional reform, hold legitimate presidential elections and “form a government with which one may negotiate,” he said.

Ukraine’s gas debt is now estimated at over $2.2 billion. On Thursday, President Vladimir Putin wrote letters to the leaders of 18 European countries, including Germany and France, warning that Ukraine’s debt crisis had reached a “critical” level and could threaten transit to Europe. He also called for urgent cooperation, urging Russia’s partners in the West to take action.

According to German Chancellor Angela Merkel “there are many reasons to seriously take into account this message […] and for Europe to deliver a joint European response.”

In total, Moscow has subsidized Ukraine’s economy to the tune of $35.4 billion, coupled with a $3 billion loan tranche in December. Due to Ukraine’s gas debts, Gazprom revoked all discounts and is now charging $485 per 1,000 cubic meters of gas, a price Ukraine says it will not be able to pay.

The deteriorating economic situation is coupled with escalating tensions in Ukraine. The country’s Interior Ministry promised a harsh response to the riots in the east, especially in the “separatist regions” of Donetsk, Lugansk and Kharkov. The coup-appointed authorities said they would arrest all violators, “regardless of the declared slogans and party affiliation.”

Eastern and southern Ukraine have been showing discontent with the new government in Kiev for weeks. Tensions escalated Monday when protesters in several cities started seizing local administration buildings. Major protests took place in the cities of Donetsk, Kharkov and Lugansk, while smaller actions and some clashes were reported in Odessa and Nikolayev.

After Donetsk activists proclaimed the region independent and demanded a referendum on its future status, Ukraine’s coup-imposed president Aleksandr Turchinov ordered the sending in of armed personnel and armored vehicles to the east.

At least 70 activists have been arrested in the course of the crackdown launched by Ukraine’s Interior Ministry in the eastern city of Kharkov. Most of them remain in prison, with 62 people detained for at least two months.

Sanctions are ‘counterproductive’ for all

At the G20 finance ministers’ meeting in Washington, sanctions against Russia’s alleged interference into Ukraine’s affairs dominated the background. While speaking with journalists, Siluanov said that he was against US and EU sanctions against Russian and that the widening of such sanctions would be “counterproductive” for all sides.

In the latest series of sanctions, leading Crimean officials were targeted; those, according to the US Treasury, who were responsible for organizing the March 16 referendum, which led to the peninsula leaving Ukraine and joining Russia.

Among the seven officials forbidden from entering the US or engaging in economic activity with America-based companies are acting Sevastopol governor Aleksey Chaliy, the head of the Crimean security service Pyotr Zima, and Mikhail Malyshev, the head of the electoral commission that oversaw the poll.

Additionally, US-based assets of Chernomorneftegaz, the former subsidiary of the Ukrainian state gas company located on the Crimean peninsula, will be frozen.

The US, the EU and several international groups have imposed sanctions on senior Russian officials. The US also introduced measures including a ban on exporting defense items and services to Russia to pressure Moscow over recent events in Ukraine.

The G7 group has voiced its readiness to introduce additional sanctions against Russia, if Moscow continues to “escalate” the turmoil in neighboring Ukraine, US Treasury Secretary Jack Lew said.

Meanwhile, the Russian Foreign Ministry and parliament have repeatedly denounced the policy of sanctions as inappropriate and counter-productive.

Some Russian MPs have suggested the possibility of retaliatory sanctions against US businesses, but these ideas have not been implemented as they might harm all the countries.

“Sanctions hurt all countries. We do not intend to introduce reciprocal sanctions,” Deputy Prime Minister Igor Shuvalov told reporters during the International Eastern Forum in Berlin.

Meanwhile, the meeting between Russia, Ukraine, EU and the US to discuss the ongoing political crisis in Ukraine will take place on April 17 in Geneva, the office of EU foreign policy chief Catherine Ashton said. Proposals for Ukraine’s constitutional reforms will also be presented in Geneva. However, Russian FM Sergey Lavrov on Tuesday expressed concern that Ukraine’s southeastern regions were not being invited to take part directly in the discussions on a new constitution for the country.

Siluanov said that similar concerns were voiced on Friday during a meeting with Treasury Secretary Lew.

He added that “Russia is ready to participate in supporting Ukraine together with the IMF and the European Union.” He also told Lew that Russia was concerned about Ukraine’s unpaid debt for supplies of natural gas.

April 12, 2014 Posted by | Civil Liberties, Economics | , , , , , | Leave a comment

Putin: ‘We urgently need to stabilize Ukraine’s economy’

President Vladimir Putin’s letter to leaders of European countries

ITAR-TASS | April 10, 2014

Ukraine’s economy in the past several months has been plummeting. Its industrial and construction sectors have also been declining sharply. Its budget deficit is mounting. The condition of its currency system is becoming more and more deplorable. The negative trade balance is accompanied by the flight of capital from the country. Ukraine’s economy is steadfastly heading towards a default, a halt in production and skyrocketing unemployment.

Russia and the EU member states are Ukraine’s major trading partners. Proceeding from this, at the Russia-EU Summit at the end of January, we came to an agreement with our European partners to hold consultations on the subject of developing Ukraine’s economy, bearing in mind the interests of Ukraine and our countries while forming integration alliances with Ukraine’s participation. However, all attempts on Russia’s part to begin real consultations failed to produce any results.

Instead of consultations, we hear appeals to lower contractual prices on Russian natural gas – prices which are allegedly of a “political” nature. One gets the impression that the European partners want to unilaterally blame Russia for the consequences of Ukraine’s economic crisis.

Right from day one of Ukraine’s existence as an independent state, Russia has supported the stability of the Ukrainian economy by supplying it with natural gas at cut-rate prices. In January 2009, with the participation of the then-premier Yulia Tymoshenko, a purchase-and-sale contract on supplying natural gas for the period of 2009-2019 was signed. The contract regulated questions concerning the delivery of and payment for the product, and it also provided guarantees for its uninterrupted transit through the territory of Ukraine. What is more, Russia has been fulfilling the contract according to the letter and spirit of the document. Incidentally, Ukrainian Minister of Fuel and Energy at that time was Yuriy Prodan, who today holds a similar post in Kiev’s government.

The total volume of natural gas delivered to Ukraine, as stipulated in the contract during the period of 2009-2014 (first quarter), stands at 147.2 billion cubic meters. Here, I would like to emphasize that the price formula that had been set down in the contract had NOT been altered since that moment. And Ukraine, right up till August 2013, made regular payments for the natural gas in accordance with that formula.

However, the fact that after signing that contract, Russia granted Ukraine a whole string of unprecedented privileges and discounts on the price of natural gas, is quite another matter. This applies to the discount stemming from the 2010 Kharkiv Agreement, which was provided as advance payment for the future lease payments for the presence of the (Russian) Black Sea Fleet after 2017. This also refers to discounts on the prices for natural gas purchased by Ukraine’s chemical companies. This also concerns the discount granted in December 2013 for the duration of three months due to the critical state of Ukraine’s economy. Beginning with 2009, the total sum of these discounts stands at 17 billion US dollars. To this, we should add another 18.4 billion US dollars incurred by the Ukrainian side as a minimal take-or-pay fine.

In this manner, during the past four years, Russia has been subsidizing Ukraine’s economy by offering slashed natural gas prices worth 35.4 billion US dollars. In addition, in December 2013, Russia granted Ukraine a loan of 3 billion US dollars. These very significant sums were directed towards maintaining the stability and creditability of the Ukrainian economy and preservation of jobs. No other country provided such support except Russia.

What about the European partners? Instead of offering Ukraine real support, there is talk about a declaration of intent. There are only promises that are not backed by any real actions. The European Union is using Ukraine’s economy as a source of raw foodstuffs, metal and mineral resources, and at the same time, as a market for selling its highly-processed ready-made commodities (machine engineering and chemicals), thereby creating a deficit in Ukraine’s trade balance amounting to more than 10 billion US dollars. This comes to almost two-thirds of Ukraine’s overall deficit for 2013.

To a large extent, the crisis in Ukraine’s economy has been precipitated by the unbalanced trade with the EU member states, and this, in turn has had a sharply negative impact on Ukraine’s fulfillment of its contractual obligations to pay for deliveries of natural gas supplied by Russia. Gazprom neither has intentions except for those stipulated in the 2009 contract nor plans to set any additional conditions. This also concerns the contractual price for natural gas, which is calculated in strict accordance with the agreed formula. However, Russia cannot and should not unilaterally bear the burden of supporting Ukraine’s economy by way of providing discounts and forgiving debts, and in fact, using these subsidies to cover Ukraine’s deficit in its trade with the EU member states.

The debt of NAK Naftogaz Ukraine for delivered gas has been growing monthly this year. In November-December 2013 this debt stood at 1.451,5 billion US dollars; in February 2014 it increased by a further 260.3 million and in March by another 526.1 million US dollars. Here I would like to draw your attention to the fact that in March there was still a discount price applied, i.e., 268.5 US dollars per 1,000 cubic meters of gas. And even at that price, Ukraine did not pay a single dollar.

In such conditions, in accordance with Articles 5.15, 5.8 and 5.3 of the contract, Gazprom is compelled to switch over to advance payment for gas delivery, and in the event of further violation of the conditions of payment, will completely or partially cease gas deliveries. In other words, only the volume of natural gas will be delivered to Ukraine as was paid for one month in advance of delivery.

Undoubtedly, this is an extreme measure. We fully realize that this increases the risk of siphoning off natural gas passing through Ukraine’s territory and heading to European consumers. We also realize that this may make it difficult for Ukraine to accumulate sufficient gas reserves for use in the autumn and winter period. In order to guarantee uninterrupted transit, it will be necessary, in the nearest future, to supply 11.5 billion cubic meters of gas that will be pumped into Ukraine’s underground storage facilities, and this will require a payment of about 5 billion US dollars.

However, the fact that our European partners have unilaterally withdrawn from the concerted efforts to resolve the Ukrainian crisis, and even from holding consultations with the Russian side, leaves Russia no alternative.

There can be only one way out of the situation that has developed. We believe it is vital to hold, without delay, consultations at the level of ministers of economics, finances and energy in order to work out concerted actions to stabilize Ukraine’s economy and to ensure delivery and transit of Russian natural gas in accordance with the terms and conditions set down in the contract. We must lose no time in beginning to coordinate concrete steps. It is towards this end that we appeal to our European partners.

It goes without saying that Russia is prepared to participate in the effort to stabilize and restore Ukraine’s economy. However, not in a unilateral way, but on equal conditions with our European partners. It is also essential to take into account the actual investments, contributions and expenditures that Russia has shouldered by itself alone for such a long time in supporting Ukraine. As we see it, only such an approach would be fair and balanced, and only such an approach can lead to success.

April 11, 2014 Posted by | Economics | , | Leave a comment

Iran must be ready to walk from P5+1

By Finian Cunningham | Press TV | April 9, 2014

Iran should not sweat it over the P5+1 nuclear talks. Any final agreement is simple.

It must recognize Iran’s inalienable right to peaceful nuclear technology, including the operation of uranium enrichment and all existing related facilities in the country. In return for Iranian guarantees over its legitimate nuclear activities, the US and its European allies must cancel the onerous burden of economic sanctions. That is the essence of any deal. And any other add-on issues are irrelevant.

Indeed, Western attempts to alter the framework of a final nuclear deal must be slapped down; or if insisted upon, Iran should reserve the right to walk away from the talks.

Negotiations this week in the Austrian capital Vienna were said to be “constructive”. Next month, discussions move on to a final accord that could pave the way for lifting of sanctions.

The stakes are high for Iran. Of course, Iran wants to see a prompt end to the Western-imposed sanctions regime that has caused economic and social hardship for its people. The morality and legality of such indiscriminate punishment is highly dubious, to say the least, and their continued imposition is a cause of much indignation.

But a final agreement must be based on the essential details: Iran’s inalienable right to civilian nuclear technology; an agreed system of verification; and immediate cancellation of economic sanctions.

If the Western states, in particular the US, Britain and France, begin to add on conditions to those essential details, Iran must not be browbeaten or seduced into making concessions for the sake of concluding a final accord.

Ominously, we saw this duplicitous Western tendency to move the goalposts this week when US Secretary of State John Kerry told a Senate hearing in Washington that sanctions relief for Iran was contingent not just on Iranian guarantees over nuclear weapons, but also on allegations of Iranian involvement in international terrorism and violation of human rights.

Kerry’s comments follow on the move last week by the European Parliament to censure Iran over alleged human rights abuses. It seemed more than mere coincidence that both the US and EU expressions pre-empted the latest round of P5+1 negotiations in Vienna this week.

It is, to be sure, patently ridiculous for the Americans and Europeans to raise issues of human rights and terrorism given their own outrageous transgressions. Just this week we hear of more reports that Washington is to step up supplies of heavy weapons to terrorists running amok in Syria – the same Western-backed terrorists who are implicated in the use of chemical weapons to kill hundreds of civilians in a callous propaganda stunt.

This also follows increasing evidence last week of a decade of American torture – assisted by European collusion – of hundreds of detainees at the Guantanamo Bay concentration camp and countless other US black sites around the globe.

And as far as the Europeans are concerned, this week sees the plight of 12 million Roma people being highlighted for gross mistreatment by governments across the entire 28-nation bloc.

Regardless of the integrity of purported American and European concerns – terrorism and human rights – what needs to be recognized is that the ostensible issues are completely irrelevant to the nuclear dispute and a final accord. These issues are being added on in an ad hoc fashion, which suggests that the P5+1 nuclear impasse is being set up for procrastination on Western terms.

As Iranian Professor Mohammad Marandi told Press TV this week in a debate forum, the issue of alleged human rights violations is being used as a ploy to pressure Iran into making concessions over its nuclear rights. The Western logic would seem to be: if you want a P5+1 deal and an end to trade sanctions, then we want in return closure of this or that nuclear facility (in contravention of Iran’s legal rights), otherwise we are going to keep raising obstacles such as allegations of human rights abuses and international terrorism.

This is a completely unacceptable Western formula for moving the goalposts on its duplicitous terms. It will mean a never-ending impasse aimed at harassing Iran with more and more threats, including threats of war.

The essence of a long overdue nuclear accord with Iran is for the arrogant Western powers to start treating Iran as an equal, in which Iran is able to avail of its inalienable rights as a signatory to the Non-Proliferation Treaty – without condition or exception.

If Western states insist on adding on irrelevant – as well as hypocritical and spurious – issues it is a damning sign of their incorrigible bad faith. In that event, Iran must be prepared to walk away from the P5+1 process.

However, that is not necessarily a reckless option. Given the growing importance of international trade involving Russia, China and other emerging economies – that is, trade without the bankrupt Western states – Iran might find itself better off anyway not having to waste time and energy on these malignant has-been powers.

Iran needs to stay cool, not sweat it, and to turn the tables on the arrogant players by asserting its own rightful demands.

April 10, 2014 Posted by | Economics | , , , | Leave a comment

New Federal Indictment Over Iran Sanctions Breach Demonstrates Reach of Nuclear Disinformation

United States Attorney for the District of Massachusetts Carmen Oritz
By Nima Shirazi | Wide Asleep in America | April 6, 2014

A brief news story posted by Reuters at 3pm on Friday afternoon reported that Sihai Cheng, a Chinese national is facing criminal charges brought by the U.S. government for allegedly having conspired to export “pressure transducers,” sensors that translate the application of pressure into electrical signals, to Iran in violation with sanctions that restrict trade of scientific equipment and technology to that country.

Cheng was arrested at Heathrow airport two months ago and the indictment was brought by Boston field offices of the FBI, Department of Homeland Security, Department of Commerce, and the Department of Justice’s Massachusetts District Attorney.

Following the publication of the Reuters report, the news traveled fast with outlets like Bloomberg News, AFP, Telegraph, and BBC all picking it up, and inevitably tying the news to the ongoing international nuclear negotiations taking place between six world powers and Iran.

Pressure transducers have myriad industrial and scientific uses; their use in the translating pressurized gas in centrifuges to an analog electrical signal is but one of these applications. A statement released by the U.S. Attorney’s office declares, “Pressure transducers can be used in gas centrifuges to enrich uranium and produce weapons-grade uranium.”

Unmentioned is the fact that, not only can transducers be used for thousands of other reasons, but also that Iran’s enrichment of uranium is legal, Iran’s enrichment facilities are under strict IAEA monitoring and inspection, and Iran has never even been accused of enriching uranium to weapons-grade levels. It’s like arresting someone over trading light bulbs, which can be used in automobiles, which can be used to run people over.

The prosecution of people accused of breaching the aggressive U.S.-led sanctions regime is nothing new; just last month, Mohammad Reza Nazemzadeh, a prolific and respected medical research scientist in Michigan was inexplicably indicted for trying to send a refurbished coil for an MRI machine to a hospital in Iran. However, certain language used in press reports to describe the indictment of Cheng – in bold below - is curious.

Reuters reported that Cheng had “supplied thousands of parts that have nuclear applications to Eyvaz, a company involved in Iran’s nuclear weapons program, in violation of U.S. sanctions on Iran, federal prosecutors said.”

Bloomberg News used the same formulation:

From November 2005 to 2012, Cheng allegedly supplied thousands of parts that have nuclear applications to Eyvaz, an Iranian company involved in the development and procurement of parts for Iran’s nuclear weapons program.

“Iran’s nuclear weapons program.” Read that again. “Iran’s nuclear weapons program.” The ubiquity of this phrase in the press and political speechifying belies the fact that Iran does not actually have a nuclear weapons program and is thus, not only deliberately deceiving, but patently false.

It should now go without saying that, for years now, the United States intelligence community and its allies have long assessed that Iran is not and never has been in possession of nuclear weapons, is not building nuclear weapons, and its leadership has not made any decision to build nuclear weapons. Iran’s uranium enrichment program is fully safeguarded by the IAEA and no nuclear material has ever been diverted to a military program. Iranian officials have consistently maintained they will never pursue such weapons on religious, strategic, political, moral and legal grounds.

This assessment has been reaffirmed year after year by the U.S. Director of Intelligence James Clapper, most recently in mid-February before the Senate Armed Services Committee. The intelligence has maintained for nearly seven years a high level of confidence that Iran has no nuclear weapons program.

Nevertheless, this phraseology goes frequently unchallenged in the mainstream media – despite repeated appeals by ombudsmen and public editors for more careful and measured writing by their reporters.

The reports of the Cheng case, however, are a bit more revealing. The specific claim referencing an Iranian “nuclear weapons program” did not originate with the Reuters wire service or Bloomberg‘s own cribbed report. In fact, the phrase in its entirety came from the U.S. Attorney’s own press release about the indictment, which was posted Friday by the “Boston Press Release Service,” and has still (as of this writing) not appeared on the website for the U.S. Attorney for the District of Massachusetts.

That the offending phrase – “Iran’s nuclear weapons program” – was literally copied-and-pasted directly from a government statement by professional reporters for major news outlets, without a shred of skepticism, scrutiny or fact-checking, is sadly par for the course in a media landscape wherein the press simply parrot the government line as a matter of policy.

“The indictment alleges that between in or about November 2005 and 2012, Cheng supplied thousands of parts that have nuclear applications, including U.S. origin goods, to Eyvaz, an Iranian company involved in the development and procurement of parts for Iran’s nuclear weapons program,” the release reads.

The government prosecutor responsible for the indictment is Massachusetts’ U.S. Attorney Carmen Ortiz, who herself has a sordid history of overly-aggressive prosecution, in one case leading to the suicide of computer programmer and online activist Aaron Swartz in January 2013.

In this indictment, Ortiz has thus made an assumption about Iranian actions and intentions that directly contradicts the consensus of 16 American intelligence agencies.  Furthermore, the prosecution itself is part of the Obama administration’s own economic war on Iran.

Just two weeks after Iran and the P5+1 signed their Joint Plan of Action in late November 2013, the U.S. State and Treasury Departments specifically named Eyvaz Technic Manufacturing Company among companies targeted “for evading international sanctions against Iran and for providing support for Iran’s nuclear program.”

The recent indictment and accompanying press release present a clear indication that the decades-long disinformation campaign about Iran’s nuclear program is far more powerful and sustaining than facts and evidence. And that’s bad news when the propaganda comes straight from the Department of Justice.

April 6, 2014 Posted by | "Hope and Change", Deception, Economics, Mainstream Media, Warmongering | , , , , | Leave a comment

Russia will not import GMO products – PM Medvedev

RT | April 6, 2014

Russia will not import GMO products, the country’s Prime Minister Dmitry Medvedev said, adding that the nation has enough space and resources to produce organic food.

Moscow has no reason to encourage the production of genetically modified products or import them into the country, Medvedev told a congress of deputies from rural settlements on Saturday.

“If the Americans like to eat GMO products, let them eat it then. We don’t need to do that; we have enough space and opportunities to produce organic food,” he said.

The prime minister said he ordered widespread monitoring of the agricultural sector. He added that despite rather strict restrictions, a certain amount of GMO products and seeds have made it to the Russian market.

Earlier, agriculture minister Nikolay Fyodorov also stated that Russia should remain free of genetically modified products.

At the end of February, the Russian parliament asked the government to impose a temporary ban on all genetically altered products in Russia.

The State Duma’s Agriculture Committee supported a ban on the registration and trade of genetically modified organisms. It was suggested that until specialists develop a working system of control over the effects of GMOs on humans and the natural environment, the government should impose a moratorium on the breeding and growth of genetically modified plants, animals, and microorganisms.

Earlier this month, MPs of the parliamentary majority United Russia party, together with the ‘For Sovereignty’ parliamentary group, suggested an amendment of the existing law On Safety and Quality of Alimentary Products, with a norm set for the maximum allowed content of transgenic and genetically modified components.

There is currently no limitation on the trade or production of GMO-containing food in Russia. However, when the percentage of GMO exceeds 0.9 percent, the producer must label such goods and warn consumers. Last autumn, the government passed a resolution allowing the listing of genetically modified plants in the Unified State Register. The resolution will come into force in July.

April 6, 2014 Posted by | Economics, Environmentalism | , , , | Leave a comment

“7 million” number yet more propaganda: Study suggests barely 858,000 previously uninsured Americans have enrolled and paid premiums

By Nick Sorrentino | Against Crony Capitalism | April 2, 2014

PlaneThat’s fewer than 1 in 300 Americans.

But the president is touting 7 million signups. What gives?

It’s called spin, propaganda, BS.

Basically what happened is people got kicked off of their policies and then had to buy new policies which now must be sold through Obamacare exchanges. Very few new people were covered.

Another fail in a long list of Obamacare failures. Funny the White House released the numbers on April Fools Day.

(From The Daily Mail )

The unpublished RAND study – only the Los Angeles Times has seen it – found that just 23 per cent of new enrollees had no insurance before signing up.

And of those newly insured Americans, just 53 per cent have paid their first month’s premiums.

If those numbers hold, the actual net gain of paid policies among Americans who lacked medical insurance in the pre-Obamacare days would be just 858,298. … Full article.

April 4, 2014 Posted by | "Hope and Change", Deception, Economics | , , | 1 Comment

Venezuela’s Bolivarian University Opens New Campus

By Ryan Mallett-Outtrim | Venezuelanalysis | April 2, 2014

Mérida – A new campus of the Bolivarian University of Venezuela (UBV) has been inaugurated in Venezuela’s Falcon state. The UBV offers free degree courses at undergraduate and postgraduate levels.

Established in November 2003 under Mission Sucre, the UBV is aimed at providing higher education opportunities to Venezuela’s poor.

The UBV’s newest campus in Falcon’s Los Taques municipality has 30 classrooms, and will benefit over 5600 students, according to the government. The campus also has recreational, dining and administrative facilities, and was its construction was funded by state oil company PDVSA.

President Nicolas Maduro inaugurated the campus on Tuesday via radio.

Officially, the UBV has more than 1300 campuses in 335 municipalities across Venezuela. However, apart from the main campus in Caracas, most UBV facilities are significantly smaller than the new Falcon site. The mission initially operated out of buildings owned by PDVSA, but is now hosted by schools and other educational institutions outside normal operating hours.

More than 695,000 people have studied or are studying through the UBV, while 379,000 have graduated.  Over 5000 UBV students are indigenous Venezuelans. The university has also handed out over 150,000 scholarships.

Like most universities in Venezuela, the UBV provides tuition free of charge to the student, including meals.

The university also primarily offers courses in areas considered by the government to be of national priority, ranging from education, law, healthcare, engineering and others. Courses generally involve high levels of community service, and usually have lower entrance requirements than Venezuela’s traditional universities.

The campus at Falcon will mostly be geared towards courses in agro-ecology, architecture, social communication, environmental management, public health, social development, computing, and petrochemical refining.

April 3, 2014 Posted by | Economics | , , , , , | Leave a comment

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