The data are now almost definitive and, as you probably already know, it was a historical triumph for the right-wing parties, and in particular for the "Fratelli d'Italia" coalition led by Giorgia Meloni.
The triumph of the right may make people outside Italy worried, but there is no reason. Elections in the West are now mainly for show. The Italian government has almost zero power, it is all in the hands of the European Commission, in turn controlled by the global powers. To say nothing about the pervasive corruption that affects the West as a whole. No decision can be taken without satisfying the various lobbies and mafias engaged in the feeding frenzy on what is left of the Italian economy.
In any case, the left-wing parties in power up to now have made such strongly right-wing choices that I doubt that the "real" right can be more rightish than them!
So, don't worry too much about who is the theoretical leader of the Italian government. Ms. Meloni is, in my opinion, not a bad person, but she can't do much more than rubber-stamp decisions taken elsewhere. Changes are going to come, but not as a result of elections. Right now, it is difficult to divine what's going to happen in the difficult winter that's coming, but something is going to happen. Something big.
Incidentally, the left played the game hard by using the "Putin card," that is, telling Italians not to vote for Putin's friends. Instead, Italians flocked to vote exactly for them. I leave to you the task of interpreting this interesting fact.
"Do not vote for Putin's friends." La Repubblica, Sep 23, 2022
An interpretation of Queen Cartimandua of the Brigantes, Celts who lived in Britain at the time of the Roman invasion (Image by Kate Spitzmiller). She lived at the same time as the more commonly remembered Queen Boudica, who fought the Romans. Cartimandua, instead, was what we would call today a "collaborationist". You might also call her a traitoress of her people, but so goes history. Can we learn something from the way the Romans subdued the Britons and incorporated them into their empire? As usual, history doesn't repeat itself, but it rhymes a lot.
Martys' Mac argues in a recent post that the American Empire had some special characteristics that make it different from other empires, especially the Soviet one. According to him, the US has been more benign, more open, more willing to let its client states develop independently, both economically and culturally.
Marty's Mac is a sharp observer but, in this case, I think he missed some basic points. Empires (and states, as well) are all very similar to each other, and the US and the USSR are not exceptions, as noted for instance by Dmitry Orlov. Not that I pretend to know more than anyone else about the old Soviet Union, but I suggest caution when discussing such wide-ranging issues. The Soviet Union was a complex reality that, in the West, remained largely unknown, shadowed by a barrier of language and propaganda. And we must be careful about falling into the trap of thinking that anything real looks in any significant way like the portrait that propaganda paints of it.
This said, let's discuss Marty Mac's position. He starts with:
A traditional empire does not seek to enter into mutually beneficial economic arrangements with its neighbors, but to suck up neighboring resources for its own benefit.
Which is, by all means, true. But it describes not just empires, but also states and kingdoms. There is a general law called "the rich get richer" that creates a centralization phenomenon. In all states, resources move from the periphery to the center. Think about France, which is not an Empire, but where the size of the capital, Paris, is so much larger than any other French city that it is outside the normally used statistical models. To the point that a specific term has been invented for it, "The Dragon King."
The argument Marty Mac's makes is mostly based on a comparison between the Marshall plan that the US enacted after WW2 was over, with the equivalent for the Soviet Union, the less well-known Molotov plan.
The Soviet Union imposed severe reparations on its conquered territories. Romania was obligated to pay $300 million (in 1938 dollars, i.e., prior to war inflation) to its new Soviet masters; Hungary was also obligated to pay $300 million (200 to the USSR and 100 to Czechoslovakia and Yugoslavia). The on-paper equivalent of the Marshall Plan within the Soviet sphere was the Molotov Plan, which officially offered aid to conquered Eastern European nations. However, this assistance was meager at best (nations like Romania and Hungary still suffered under their war debts), and could reasonably be understood as a public relations effort at countering the Marshall Plan.
It is true that the Soviet Union was considerably more stingy toward its client states than the United States with theirs. But why did the two empires behave so differently? We could argue that it was because of some ideological differences, but also, more simply, structural ones. The Soviet Union was a rival of the American Empire, but it was also smaller and poorer. The population of the Warsaw Pact countries (Soviet Union+allies) was around 400 million, that of the NATO alliance (US+allies) was over 600 million. Then, in terms of GDP and expenses, I wrote in a previous post that,
...in order to survive, the Soviet Empire had to match the rival Western Empire in military terms. But the Soviet economy was much smaller: we can roughly estimate that it always was no more than about 40% of the US economy, alone. To match the huge Western economic and military machine, the Soviet Union needed to dedicate a large fraction of its economic output into the military system. Measuring this fraction has never been easy, but we can say that in absolute terms the Soviet military expenses nearly matched those of the US, although still remaining well below those of the NATO block. Another rough estimate is that during the cold war the Soviet Union spent about 20% of its gross domestic product on its military. Compare with the US: after WW2, military spending went gradually down from about 10% to the current value of about 2.4%. In relative terms, during the cold war, the USSR would normally spend at least four times more than the US for its military.
In short, the Soviet Union just could not afford costs equivalent to the Marshall plan. So, the behavior of the US empire was, and remains, dictated by practical factors rather than ideological ones. When the US had a considerable surplus, it could afford an extravaganza such as the Marshall plan. Not just an extravaganza, though. It was also a good investment since the European states were a much better barrier against a possible Soviet attack if they were economically strong. Note also that the economic aid of the Marshall plan didn't come without strings attached. To have the money, the Western European states had to cut all ties with the Soviet Union and with the states of the Warsaw Pact. And the local communist parties, at that time still relatively strong, were to be kept outside government coalitions.
Now, of course, things have changed a lot. In the grip of a terrible crisis, probably in its last gasps, the US empire can't even remotely conceive a new Marshall plan. On the contrary, it is behaving like the old Soviet Empire. The whole West is turning into a police state, where the government controls all the media and criminalizes dissent. Then, it is not surprising that the imperial center is extracting resources from its client states in Western Europe to the point of beggaring them.
The discussion could be long and detailed, and Marty's Mac post is much more detailed than the few concepts I have reported here. But I think that, as usual, we can find much food for thought in the behavior of past empires. In particular, I think that a good illustration of the behavior of empires is given by how the Romans dealt with the Britons during the period that goes from the 1st century BC to the 3rd century AD. We see how the annexation of the Britons was only in part obtained by a military invasion. Mostly, it was a question of assimilation. The Romans "romanized" the Britons, making them appreciate such things as Roman money and the luxury items that money could buy. Then, they tricked them into borrowing money from Rome and, finally, when they could not repay the debt, they used that as an excuse to seize their assets and their lands. The similarities between the behavior of the US empire with Western Europe are evident. First, they offered money to the Europeans to rebuild their economy, and now they are squeezing Europe dry.
It is the typical way of Empires: they work like pushers. First, they offer you cheap drugs, then if you don't pay for more doses, they may beat the pants off you, or kill you. In this, they are helped by the traitors that they can place at the top of the states they want to incorporate. Also here, we have an example in the story of Britannia, with Queen Cartimandua as a symmetric equivalent of Queen Boudicca. Whereas Boudicca is seen as a heroine who rebelled against the Romans, Cartimandua allied herself with them. History, as usual, rhymes. A modern incarnation of the collaborationist (or traitoress) Queen Cartimandua could be found in Ursula Von der Leyen, president of the European Commission.
Below, a post that I published about Queen Boudica that illustrates the mechanism of corruption and assimilation that the Romans used to incorporate Britannia into their Empire.
The Queen and the Philosopher: War, Money, and Metals in Roman Britain
We know very little about _Queen Boudica of the Iceni (20 AD (?) - 61 AD) and most of what we know is probably deformed by Roman propaganda. But we may still be able to put together the main elements of her story and how it was that she almost threw the mighty Roman Legions out of Britain. Above, a fantasy interpretation of the Celtic Queen from "galleryhip.com" (This post was inspired by a note from Mireille Martini)_
You probably know the story of Queen Boudica. Tall, strong, and terrible, she was the embodiment of the fierce warrioress who fought - bravely but unsuccessfully - to defend her people from the oppression of an evil empire, that the Romans. It all happened during the reign of Emperor Nero, 1st century AD.
The passage of time has turned these events into legends, deformed by the lens of propaganda. But maybe we can still discern the reasons for Boudica's rebellion and learn something relevant for our times. As it often happens in history, to understand why something happens, you only need to follow the money. In this particular case, it is curious that the money that triggered the war may have been provided by no one else than Lucius Annaeus Seneca, yes, the Stoic philosopher. But it is a story that needs to be told from the beginning.
First of all, why were the Romans in Britain at the time of Queen Boudica? Simple: because of the British mineral resources. Britain had a long story of mining that went back to the Bronze Age and to even earlier times. The British mines could provide copper, tin, iron, lead, and even precious metals: gold and silver. These were all vital resources for the Roman Empire which used precious metals for coinage and all sort of metals for its various technologies.
The Romans already set foot in Britain at the time of Julius Caesar, in 55 BC. They set up a full-fledged invasion only in AD 43 under Emperor Claudius. But even before invading, according to Strabo's Geography, there was a brisk commercial network that connected Rome to Britain. The Britons exported metals and imported luxury goods of all sorts, silk, olive oil, food, slaves, and more.
It was all part of the way the Romans managed their empire. Their expansion was not simply a question of a blitzkrieg war machine. Invading a foreign kingdom was preceded by a long period of cultural and commercial assimilation and it was attempted only when it could provide a financial return. That required a certain degree of economic development of the regions being assimilated. It didn't work with the Germans, who had no mines and only a relatively primitive economy. And they were also a tough military force, able to defeat even the mighty Roman war machine - they did that at Teutoburg, in 9 AD. So, the Romans shifted their attention to the wealthier and metal-rich Britain. It worked: the invasion of 43 AD was relatively easy in military terms. Afterward, the mines increased their production by means of Roman technology, commerce boomed, new Roman settlements were built, and Britain started being romanized.
But something went badly wrong in 60 AD, when the Romans suddenly faced a major rebellion of the Iceni people living in Eastern England, led by their redoubtable queen, Boudica. At the end of this post, you can read the details of the story as we know it, told by Jason Porath in a light-hearted style. Summarizing, when Boudica's husband, King Prasotagus, died, the Romans intervened, seized his lands, had his widow flogged, and his daughters raped. The queen was not amused and the rebellion started with all the associated atrocities. Eventually, the Romans managed to get the upper hand and Boudica killed herself.
But what made the Romans behave in a way that was nearly sure to spark a rebellion? Maybe it was just their lust for power, but there is a detail told by Dio Cassius (vol VIII, Cassius Dio, Roman History, 62.2) that can help us understand what happened. Cassius says that Seneca (yes, he was a philosopher, but also a rich man) had lent to the Iceni a large sum of money and that the Iceni were unable to return it. That suggests that the key to the story was money.
According to Dio Cassius, we are talking of 40 million sesterces. What kind of money is that? It is not so easy for us to visualize this sum, but we know that in those times a Roman legionary was paid nine hundred sestertii per annum. So, 40 million sesterces could pay some 50 thousand troops for a year - a large military force for the time. From this and other data, we could say - very roughly - that the value of a sesterce was of the order of 50 dollars. So, 40 million sesterces could be compared to some two billion dollars today. Clearly, we are discussing of a large sum for a small economy such as that of the Iceni tribe had to be.
We don't know what King Prasotagus had in mind to do with that money, but we know that something went wrong. Dio Cassius faults Seneca himself for having precipitated the rebellion by insisting to have his money back. That Seneca did that out of personal greed seems to be unlikely, as discussed by Grimal. Cassius was writing more than a century after the events and he may have wanted to cast Seneca in a bad light for ideological reasons. But that's just a detail, what matters is that the Iceni (or, better said, the Iceni elite) defaulted on a large debt they had with the Romans.
In ancient times, defaulting on one's debt was a serious crime, so much that the early Roman laws punished it by having the debtor drawn and quartered. In Imperial times, there were considerably more lenient laws - but these laws very valid only for Roman citizens and Boudica was not one. In this light, flogging doesn't sound like an exaggerated punishment for defaulting on a large debt (2 billion dollars!). Even the rape of her daughters was not something unusual as a punishment for non-Roman citizens in those times. In any case, it is likely that the Romans didn't do what they did because they enjoyed torturing and raping women -- they used the default as an excuse to seize the Iceni kingdom. We can't even exclude that the loan was engineered from the beginning with the idea of annexing the kingdom to the Roman Empire.
Be it as it may, at this point, the Iceni elite had little choice: either lose everything or rebel against the largest military power of their time. Neither looked like a good choice, but they chose the one that turned out to be truly disastrous.
All that happened afterward was already written in the book of destiny - the archeological records tell us of cities burned to the ground, confirming the reports of initial Iceni victories told to us by Roman historians. Standard propaganda techniques probably caused the Romans to exaggerate the atrocities performed by the Iceni, just as the number of their fighters in order to highlight their own military prowess. Even Boudica herself was portrayed as a larger-than-life warrioress, but we can't even be completely sure that she actually existed. In any case, the revolt was bound to fail, and it did. In a few centuries, Boudica was forgotten by her own people: we have no mentions of her in the records from Celtic Britain. The Roman Empire faded, but the Roman influence on British customs and language remains visible to this day (and the ghost of the old queen may be pleased by the Brexit!).
What's most interesting in this story is the light it sheds on the inner workings of Empires. We tend to think that Empires exist because of their mighty armies - which is true, in part - but armies are not everything and in any case, the soldiers must be paid. Empires exist because they can control money, (or capital if you prefer). That's the real tool that builds empires: No money - no empire!
And that takes us to the current empire, the one we call the "American Empire" or "the "Western Empire." It does have mighty armies but, really, the grip it has on the world is all based on money. Without the mighty dollar, it is hard to think that the large military and commercial network we call "globalization" could exist.
So, can we think of a modern equivalent of the Iceni rebellion? Surely we can: think of the end of the Soviet Union. It was brought down in 1991 not by military means but by financial ones. The debt the Soviet Union had with the West is estimated at US$ 70 billion, in relative terms probably not far from the 40 million sesterces the Iceni owed to the Romans. Unable to repay this debt, the Soviet elites had only two choices: dissolve or fight. They made an attempt to fight with the "August Putsch" in 1991, but it rapidly fizzled out. There was no chance for the Soviet Communists to make a mistake similar to the one Queen Boudica made, that is starting a full-fledged military rebellion against a much more powerful enemy. That was good for everybody on this planet since the Soviet Union had nuclear warheads which might have been used in desperation. Fortunately, history doesn't always repeat itself!
But, if history doesn't repeat itself, at least it rhymes and the ability of the Western Empire to use financial means to bring countries into submission is well documented. Another, more recent, case, is that of Greece: again a nation that couldn't give back the money it owed to the imperial powers. For a short moment, in 2015, it looked like the Greeks had decided to rebel against the empire but, in the end, the Greek elites chose to submit. The punishment for the Greek citizens has been harsh but, at least, their country was not bombed and destroyed, as it happens rather often nowadays when the Imperial Powers that Be become angry.
But for how long will the Western Empire remain powerful? Just like for the Roman Empire, its destiny seems to be a cycle of growth and decline - and the decline may have already started as shown by the failure of the attempt of bankrupting the heir of the Soviet Union, Russia (again, fortunately for everybody, because Russia has nuclear weapons). The globalized empire seems to be getting weaker and weaker every day. Whether this is a good or a bad thing, only time will tell.
Beginning in 1949, the German Jewish philosopher Leo Strauss taught at the University of Chicago. He soon formed a small group of Jewish disciples from among his students. He taught them orally, which was quite different from his writings. According to him, the democracies had shown their inability to protect the Jews from the Nazi final solution. To prevent this tragedy from happening again and the hammer from falling on them, his disciples had to be on the other side of the handle.
He advised them to build their own dictatorship.
Organizing his followers, Leo Strauss called them his "hoplites" (soldiers of Sparta). He trained them to disrupt the classes of some of his fellow teachers.
Several of the members of this sect have held very high positions in the United States and Israel. The operation and ideology of this grouping were the subject of controversy after the attacks of September 11, 2001. An abundant literature has opposed the supporters and opponents of the philosopher. However, the facts are indisputable [1].
Anti-Semitic authors have wrongly lumped together Straussians, Jewish communities in the Diaspora and the State of Israel. However, the ideology of Leo Strauss was never discussed in the Jewish world before 9/11. From a sociological point of view, it is a sectarian phenomenon, not at all representative of Jewish culture. However, in 2003, Benjamin Netanyahu’s "revisionist Zionists" made a pact with the US Straussians, in the presence of other Israeli leaders [2]. This alliance was never made public.
One of the characteristics of this group is that they are ready for anything. For example, they wanted to return Iraq to the stone age. This is indeed what they did. For them, all sacrifices are possible, including for themselves, as long as they remain the first; not the best, the first [3]!
Paul Wolfowitz
In 1992, an advisor to the Secretary of Defense, the Straussian Paul Wolfowitz, wrote the Defense Planning Guidance. It was the first official US document reflecting the thinking of Leo Strauss [[4](#nb4 "The 1976 report of the "B Team" accusing the USSR of wanting to dominate (...)")]. Wolfowitz was introduced to Strauss’ thought by the American philosopher Allan Bloom (a friend of the Frenchman Raymond Aron), but he himself only briefly knew the master at the end of his teaching in Chicago. However, the US ambassador to the UN, Jeane Kirkpatrick, recognized him as "one of the great Straussian figures" [5].
In the context of the dissolution of the Soviet Union, Wolfowitz developed a strategy to maintain US hegemony over the entire rest of the world.
The Defense Planning Guidance should have remained confidential, but the New York Times revealed its main lines and published extracts [6]. Three days later, the Washington Post revealed further details [7]. In the end, the original text was never made public, but a version edited by the Secretary of Defense (and future Vice President), Dick Cheney, was circulated.
It is known that the original document was based on a series of meetings in which two other people, all three Straussian, participated: Andrew Marshall, the Pentagon’s "thinker" (who was replaced three years after his death by Arthur Cebrowski), Albert Wohlstetter, the thinker of the atomic deterrence strategy, and his son-in-law Richard Perle, the future director of the Defense Policy Board. The Defense Planning Guidance was written by a student of Wohlstetter, Zalmay Khalilzad (future ambassador to the UN).
The document speaks of a new "world order [...] ultimately supported by the United States", in which the sole superpower would only have temporary alliances, depending on the conflict. The UN and even NATO would be increasingly sidelined. More broadly, the Wolfowitz Doctrine theorizes the need for the United States to block the emergence of any potential competitor to U.S. hegemony, especially "advanced industrial nations" such as Germany and Japan. Particularly targeted is the European Union: "While the United States supports the European integration project, we must be careful to prevent the emergence of a purely European security system that would undermine NATO, and particularly its integrated military command structure. The Europeans will thus be asked to include in the Maastricht Treaty a clause subordinating their defense policy to that of NATO, while the Pentagon report recommends the integration of the new Central and Eastern European states into the European Union, while giving them the benefit of a military agreement with the United States that would protect them against a possible Russian attack [8].
For thirty years, this document has been patiently implemented.
– The Maastricht Treaty includes a paragraph 4 in Title V, Article J4, which stipulates: "The policy of the Union within the meaning of this Article shall not prejudice the specific character of the security and defence policy of certain Member States and shall respect the obligations of certain Member States under the North Atlantic Treaty and be compatible with the common security and defence policy established within that framework. These provisions have been included in the various texts up to Article 42 of the Treaty on European Union.
– The former Warsaw Pact member states have almost all joined the European Union. This decision was a choice imposed by Washington and announced by Secretary of State James Baker just before the European Council meeting that endorsed it.
In 2000, Paul Wolfowitz was, together with Zbignew Brzezinki, the main speaker at a large Ukrainian-US symposium in Washington, organized by Ukrainian "integral nationalists" who had taken refuge in the USA. There he pledged to support independent Ukraine, to provoke Russia to go to war with it, and ultimately to finance the destruction of the resurgent rival of the USA [9].
These commitments were implemented with the passage of the Ukraine Democracy Defense Lend-Lease Act of 2022 on April 28, 2022 [10]. Ukraine is now exempt from all arms control procedures, including end-use certificates. Very expensive weapons are leased by the USA to the EU to defend Ukraine. When the war is over, the Europeans will have to pay for what they have consumed. And the bill will be heavy.
Victoria Nuland and Anthony Blinken in John Kerry’s office
Although the European elites have benefited from their alliance with the United States so far, they should not be surprised that the United States is now trying to destroy them under the Defense Planning Guidance. They have already seen what Washington was capable of after the 9/11 attacks: Paul Wolfowitz forbade countries that had expressed reservations about the war, such as Germany and France, to conclude contracts for the reconstruction of Iraq [11].
At present, the rise in the price of energy sources and their increasing scarcity threaten not only the heating and transportation of individuals, but above all the survival of all their industries. If this phenomenon continues, it is the economy of the European Union as a whole that will suddenly collapse, taking its population back at least a century.
This phenomenon is difficult to analyze because the prices and availability of energy sources vary according to many factors.
First, prices depend on supply and demand. As a result, they have risen with the overall economic recovery from the end of the Covid-19 epidemic.
Second, energy sources are the main targets of speculators. Even more so than currencies. The world price of oil can be multiplied by 2.5 just by the effect of speculation.
So far, everything is usual and known. But the Western sanctions against Russia, following its application of the Minsk II Agreement, for which it was the guarantor before the Security Council, have broken the world market. From now on, there is no longer a global price, but different prices according to the countries of the sellers and the customers. There are still prices quoted on the stock exchange in Wall Street and the City, but they bear no relation to those in Beijing and New Delhi.
Above all, oil and gas, which were abundant in the European Union, are starting to run out, while globally they are still in overabundance.
All our reference points have been turned upside down. Our statistical tools, designed for the global market, are not at all adapted to the current period. We can therefore only make assumptions, without any means of verifying them. This situation allows many people to talk nonsense with an air of authority; in fact, we are all evolving at a guessing pace.
One of the current factors is the reflux of dollars which were used for trade and speculation and which are no longer usable for these transactions in certain countries. This mostly virtual currency is leaving Russia and its allies to go to or return to the countries where it is still used. This is a gigantic phenomenon that the Federal Reserve and the US military have always wanted to avoid, but which the Straussians in the Biden administration (Secretary of State Antony Blinken and his deputy Victoria Nuland) have deliberately provoked.
Wrongly convinced that Russia has invaded Ukraine and is trying to annex it, the Europeans forbid themselves to trade with Moscow. In practice, they still consume Russian gas, but they are convinced that Gazprom will cut off their gas supply. For example, their press announced that the Russian company was closing the Nord Stream pipeline, although it had announced a three-day technical interruption. Normally, gas pipeline deliveries are interrupted for maintenance for two days every two months. Here, Gazprom was hampered in its maintenance by the Western blockade, which prevented the return of the turbines it had sent for repair to Canada. However, the population understood that the evil Russians had cut off their gas on the eve of winter.
The European propaganda aims to prepare public opinion for a definitive closure of the gas pipeline and to put the responsibility on Russia.
In this case, the leaders of the Union are simply implementing the directives of the Straussians. In doing so, they are scuttling European industry to the detriment of their citizens. Already some energy-intensive factories have reduced their production or even closed.
The process of decrepitude of the European Union will continue as long as no one dares to oppose it. To everyone’s surprise, a first pro-Russian demonstration was held on September 3 in Prague. The police admitted to 70,000 people (for a country of 10 million), but there were probably many more. Political commentators despise them and consider them "Putin’s useful idiots". But these insults do not mask the unease of European elites.
Energy experts consider power cuts throughout the Union inevitable. Only Hungary, which has previously obtained exemptions, could escape the rules of the single energy market. Those who can produce electricity will have to share it with those who cannot. It doesn’t matter whether this inability is the result of bad luck or short-sightedness.
Brussels should start with voltage reductions, then cut off at night, and finally during the day. Individuals will have difficulties to maintain elevators, to heat their homes in winter, to cook if they use electric plates and, those who use trains, buses or electric cars, should have difficulties to move. Energy-intensive businesses, such as blast furnaces, are expected to close. Infrastructures are expected to become impassable, such as long tunnels that can no longer be ventilated. Above all, electronic installations designed for continuous operation will not be able to withstand repeated interruptions. This will be the case, for example, for antennas that are essential for cell phone networks, which will be thrown away after three months of this treatment.
In third world countries where electricity is scarce, battery powered leds are used for lighting and UPS to power low consumption machines, such as computers or televisions. But these materials are currently not available in the EU.
The EU’s GDP has already fallen by almost 1%. Will this recession continue as the Straussians plan, or will the citizens of the Union interrupt it, as part of the Czech people are trying to do?
The Straussians will go all the way. They have taken advantage of the decadence of the United States to take over the real power. Since a junkie, never elected, can use official planes galore to do business all over the world [12], they have quietly moved into the shadow of President Biden and are governing in his place. European leaders, on the other hand, are either blind or too committed to stop, acknowledge their thirty years of mistakes and turn back.
What to remember:
- The Straussians are a fanatical sect ready to do anything to maintain the supremacy of the United States over the world. They imagined the wars that have plagued the world for the past thirty years and the one in Ukraine today.
- They persuaded the European Union that Moscow wanted to annex first Ukraine and then all of Central Europe. With that, they convinced Brussels to stop all trade with Russia.
- The energy crisis that is beginning is leading the European Union towards electricity and power cuts that will wreak havoc on the way of life of its citizens and on its economy.
The UK and Commonwealth may be mourning the passing of Queen Elizabeth II yesterday. I am in mourning as well, but for a very different reason: the gathering of the Ukraine Defense Contact Group in the Ramstein air base in Germany yesterday reshuffled the deck on Western military and financial assistance to Ukraine, raising contributions to the ongoing holy crusade against Russia from still more nations and adding new, still more advanced precision strike weapons to the mix of deliveries to Kiev. It was an open summons to the Kremlin to escalate in turn, as were the test firing the same day of a new intercontinental rocket, the Minuteman III, from Vandenberg air base in California and the unannounced visit to Kiev yesterday of not only Secretary of State Antony Blinken, who was featured in Western media accounts, but also other top officials of the Biden administration. The most notorious member of this delegation was surely Blinken’s deputy, Victoria Nuland, who had stage managed the February 2014 coup that put in power in Kiev the Russia-hating regime that Zelensky now heads.
The Russians may be compelled to take the bait due to the course of military action on the ground. As now becomes clear, they have just suffered some losses in very heavy ground and artillery fighting these past few days around Kharkov. The Ukrainian gains were facilitated by the advanced weaponry recently arrived from NATO countries, by the targeting data they are receiving from the U.S. and from off-stage tactical direction from NATO officers. By ‘take the bait,’ I mean the Russians may escalate to all out war on Ukraine. This question figured prominently in yesterday’s major news and political talk show programs of Russian state television. I will go into these matters in some detail below.
Regrettably, all of the foregoing also obliges me to revisit the critique I published a couple of weeks ago on the latest essay in Foreign Affairs magazine by John Mearsheimer. His overarching message on the dangers of our stumbling into a nuclear war is better substantiated by the latest developments, even though I believe that Mearsheimer failed to identify the several successive steps that lie ahead before we find ourselves in such a war. Mearsheimer oversimplified Russian options to deal with setbacks on the ground. This also will be a central issue in my narrative below.
Finally, in this essay I will direct attention to the second dimension of the ongoing confrontation between Russia and the entire Collective West: the economic war being waged on the Russian Federation via sanctions, which now far outnumber those directed against any other country on earth. This war, as I will argue, is going well for the Russians. More importantly for us all, it is the sole area in which the peoples of Europe may have a say in putting an end to the mad policies being pursued by their national governments under the direct pressure of Washington.
Over the past ten days, we have witnessed the start of the Ukrainian counter-offensive which was preceded by so much anticipation in Western media. A reversal of Russian fortunes in the war was predicted, leading to the stalemate or outright defeat for Russia which Mearsheimer and some other analysts in the US foreign policy community feared would trigger a nuclear response from the Kremlin.
In fact, the Ukrainian counter-offensive got off to a very bad start. It opened in the south, in the Kherson region. Kherson, which is predominantly Russian-speaking, was the first major Ukrainian city to fall to the Russians and it has strategic importance for ensuring Russian domination of the Black Sea littoral. However, first results of the Ukrainian attacks there were disastrous for the Ukrainian armed forces. It soon was obvious that they had deployed new recruits who had little or no military experience. The infantry attacked across open terrain where they were easily destroyed in vast numbers by the Russian defenders of Kherson. I have heard the figure of 5,000 Ukrainian casualties in the Kherson counter offensive. Obviously the Russians were jubilant, though there were reports of some Ukrainian reservists being withdrawn from the field of action for redeployment elsewhere.
What followed was something the Russians evidently did not expect, namely a well prepared and implemented assault on their positions around the northeastern city of Kharkov, Ukraine’s second largest city. Kharkov was briefly surrounded by Russian forces at the start of the war, but was left in relative peace as the Russians refocused their strategy on taking the Donbas and avoiding major urban warfare except in one place, Mariupol. Exactly what the Russian game plan has been was recently explained in a remarkable paper published by a certain ‘Marinus’ in the Marine Corps Gazette. See https://www.imetatronink.com/2022/08/a-former-us-marine-corps-officers.html
A couple of days ago I picked up the following amidst the chatter of panelists on Evening with Vladimir Solovyov: “yes, we made some mistakes, but it is inevitable in a war that mistakes are made.” As from the latest news on the apparent loss of Balakliya and surrounding villages on the outskirts of Kharkov, we can see that the Ukrainian tactics were precisely those which Russia had been using so effectively against them from day one of the ‘special military operation,’ namely a feint in one war zone followed by all-out attack on a very different region. Of course, the ‘feint’ around Kherson, if that is what it was, entailed the cynical sacrifice of thousands of young and not so young Ukrainian foot soldiers. But the resultant distraction prevented the Russians from bringing up sufficient manpower to successfully defend their positions around Kharkov, which include the strategically important city of Izyum.
Izyum is close to the Russian-Ukrainian border southeast of Kharkov and is a major logistical base for munitions and weaponry that are sent onward to support the Donbas operation. The latest information on the Russian side appears to be that the Russians have now dispatched large numbers of reservists to this area to hold their positions. They also speak of intense artillery duels. We may well assume that both sides have experienced heavy loss of life. As yet, the outcome is unforeseeable. Meanwhile, Russian war correspondents on the ground in Donetsk insist that the Russian advance towards Slavyansk, in the center of the former Donetsk oblast, is continuing without pause, which suggests that the strikes on their munitions stores claimed by the Ukrainians have not been totally effective. If Slavyansk is taken in the coming few weeks, then Russia will quickly assume control of the entire territory of the Donbas.
In last night’s talk show program, host Vladimir Solovyov said that this latest push in the Ukrainian counter-offensive was timed to coincide with the gathering at the Ramstein air base, Germany of top officials from NATO and other allies under the direction of the visiting U.S. Secretary of Defense Lloyd Austin. If the Ukrainian efforts were failing in the field, then the cry would go up: we must provide them with more weapons and training. And if the Ukrainian efforts in the counter-offensive were succeeding, those in attendance at Ramstein would hear exactly the same appeal to aid Kiev.
Though Evening with Solovyov, on air from about 23.00 Moscow time, offered viewers some few minutes of video recordings from the opening of the Ramstein gathering, far more complete coverage was provided to Russian audiences a few hours earlier by the afternoon news show Sixty Minutes. Here, nearly half an hour on air was given over to lengthy excerpts from CNN and other U.S. and European mainstream television reporting about Ramstein. Host Yevgeni Popov read the Russian translation of the various Western news bulletins. His presentation clearly sought to dramatize the threat and to set off alarm bells.
For his part, Vladimir Solovyov went beyond presentation of the threat posed by the United States and its allies to analysis of Russia’s possible response. He spoke at length, and we may assume that what he was saying had the direct approval of the Kremlin, because his guests, who are further removed from Power than he is, were, for the most part, allowed only to talk blather, such as the critique by one panelist of a recent pro-Ukraine, anti-Russia article in The New York Review of Books by Yale professor Timothy Snyder, who counts for nothing in the big strategic issues Russia faces today.
So, what did Solovyov have to say? First, that Ramstein marked a new stage in the war, because of the more threatening nature of the weapons systems announced for delivery, such as missiles with accuracy of 1 to 2 meters when fired from distances of 20 or 30 kilometers thanks to their GPS-guided flight, in contrast to the laser-guided missiles delivered to Ukraine up till now. In the same category, there are weapons designed to destroy the Russians’ radar systems used for directing artillery fire. Second, that Ramstein marked the further expansion of the coalition or holy crusade waging war on Russia. Third, that in effect this is no longer a proxy war but a real direct war with NATO and should be prosecuted with appropriate mustering of all resources at home and abroad.
Said Solovyov, Russia should throw off constraints and destroy the Ukrainian dual use infrastructure which makes it possible to move Western weapons across the country to the front. The railway system, the bridges, the electricity generating stations all should become fair targets. Moreover, Kiev should no longer be spared missile strikes and destruction of the ministries and presidential apparatus responsible for prosecution of the war. I note that these ideas were aired on the Solovyov program more than a month ago but then disappeared from view while the Russians were making great gains on the ground. The latest setbacks and the new risks associated with the Western policies set out at Ramstein bring them to the surface again.
Solovyov also argued that Russia should now use in Ukraine its own most advanced weapons that have similar characteristics to what NATO is delivering to the other side. As a sub-point, Russia should consider neutralizing in one way or another the GPS guidance for U.S. weapons. Of course, if this means destroying or blinding the respective U.S. satellites, that would mean crossing a well-known U.S. red line or casus belli.
Next, in the new circumstances, Russia should abandon its go-it-alone policy and actively seek out complementary weapons systems from previously untouchable countries, such as Iran and North Korea. Procurements from both have till now been minimal. On this issue, a couple of panelists with military expertise were allowed to explain that both these countries have sophisticated and proven weapons that could greatly assist Russia’s war effort. Iran has unbeatable drones which carry hefty explosive charges and have proven their worth in operations that are unmentionable on public television. And North Korea has very effective tanks and highly portable field artillery which are both fully compatible with Russian military practice, because the designs were based on Chinese weapons, which in turn were copies of Russia’s own. These weapons also have shown their worth in the hands of unnamed purchasers in the Middle East. Moreover, North Korea has a vast store of munitions fully compatible with Russian artillery. It was also mentioned in passing that insofar as Kiev has mobilized in the field many Western mercenaries and covert NATO officers, Russia should also recruit from abroad, as for example, whole brigades from North Korea available for hire.
If any of these ideas put out by Solovyov last night are indeed implemented by the Kremlin, then the present confrontation in and over Ukraine will truly become globalized, and we have the outlines of what may be called World War III. However, I note that the use of nuclear weapons, tactical or otherwise, does not figure at all in the set of options that official Moscow discusses in relation to the challenges it faces in its Ukraine operation. Such a possibility would arise only if the NATO forces being sent to the EU’s ‘front line states’ grew in number by several times those presently assigned and appeared to be preparing to invade Russia.
Before Ramstein, before the news of Ukrainian successes on the ground in the Kharkov sector, I had plans to write about a very different development this past week that coincided with a different calendar: the end of summer vacations and return to work of our national governments. With the return, our presidents and prime ministers would finally have to address the critical state of the European economies, which are facing the highest inflation rates in decades and an energy crisis brought about by the sanctions on Russian hydrocarbons. Speculation was rife on what exactly they would do.
I was particularly struck by several articles in the 7 September edition of The Financial Times and planned to comment on them.
For months now, the FT has been the voice of Number 10, Downing Street, at the vanguard of the Western crusade to crush Russia. Their editorial board has consistently backed every proposal for sanctions against Russia, however hare-brained. And yet on the 7th their journalists ran away with the show and cast doubt on the basic assumptions held by their bosses. One article by Derek Brower in the “FT Energy Source” newsletter has the self-explanatory title “The price cap idea that could worsen the energy crisis.” As we saw today, Brower’s concern was misplaced: finally, the EU could not agree a price cap policy. This notion, promoted from the United States by none other than the Secretary of the Treasury Janet Yellen, is in full contradiction with the practices of the global hydrocarbon market, as even a few EU leaders understood, depriving the initiators from the Baltic States of their hoped for consensus.
Another article of the 7th in FT, by Valentina Pop, Europe Express Editor, analyzed quickly and competently the problems facing European policy-makers in their bid to alleviate the pain to households and industry that the latest electricity and heating bills would otherwise present, given that they are several times higher than just a year ago and are unaffordable by large swathes of the population. Pop identified the key issue thus: how to provide aid quickly to those most in need given the constraints and resources available to the various government bureaucracies: “Some capitals will take many months in determining which households require help” she says. Of course, ‘many months’ of patience in the broad population will not be there.
But the most surprising article in this collection from the 7th was in the “Opinion Lex” section of the paper which was nominally about how Russian banks have weathered the storm that broke out when the EU sanctions on their industry first were laid down shortly after the start of Russia’s ‘special military operation.’ Indeed, VTB and other major Russian banks have returned to profitability despite it all. The author finds that ‘sanctions are biting less than western politicians hoped.’ Not only did the expected banking crisis not materialize, but the ruble is at five-year peaks and inflation is falling. Moreover the official Russian financial data behind these generalizations is said to be sound by independent and trustworthy market observers. The key conclusions are saved for last: “Russia has shown it can bear the pain of western sanctions. Western Europe must endure reprisals as robustly, or concede a historic defeat.’ The ‘reprisals’ in question are the complete shutdown of Russian gas deliveries through Nord Stream I until Europe lifts its sanctions.
It is interesting that even the Opinion article by NATO Secretary General Jens Stoltenberg published on the 7th in FT carries the following grim warning: “We face a difficult six months, with the threat of energy cuts, disruptions and perhaps even civil unrest.’ [emphasis mine]
To be sure, here and there in Europe, there are a few clever administrators who find promising solutions to the pending crisis of energy bills. In her first day in office, Britain’s new Prime Minister Liz Truss announced one such solution: to immediately freeze the maximum energy bill per household at the present level of 2500 pounds sterling per year and then to turn around and agree with the power companies a subsidy for them to cover their losses.
This is fine for nipping in the bud possible ‘civil unrest.’ But the question remains how Britain will finance the estimated 150 billion pounds this will cost in the first year alone. If a similar solution were approved in the EU, the overall cost would surely approach the 800 billion euros of assistance borrowed to cover losses attributable to the Covid pandemic a year ago. But whereas the Covid aid was financed by collective borrowing of the EU, no such solidarity is likely to deal with the energy crisis, given that Germany, the Netherlands and other northern Member States oppose this becoming a general practice and will apply a veto. The British solution, however clever it may be, will hardly be available to many countries in the EU on their own given their high state indebtedness.
Then there is the second question of what to do to assist industry. Failure to give industry proper relief will result in company closures and rampant unemployment, which finally also sparks political protest. In any case, such solutions do not deal with the knock-on effects of vastly increased government borrowing to finance the energy subsidies, something which in the best of times always reduces capital available for other government services and capital available to private business for investment and job creation.
These various problems in dealing with the energy crisis that Europe created for itself by imposing sanctions on Russia may well be intractable and may well lead to spontaneous protests in a number of European countries this fall.
There is,no anti-war movement on the Old Continent to speak of. So popular protests over the ‘heat or eat’ dilemma being imposed from the chanceries on the people without anything resembling public debate may be the salvation of us all if they induce war mongering politicans to resign.
©Gilbert Doctorow, 2022
Plenary session moderator Margarita Simonyan: Good afternoon, or almost evening.
As you may know, we had a minor technical issue. Thankfully, it has been dealt with quickly. We are grateful to those who resolved this.
We are also grateful to the audience.
We are grateful to our leader, President Vladimir Putin, for traditionally fitting this forum into his schedule so that he can tell us about economic prospects and other plans.
We are grateful to President Kassym-Jomart Tokayev for attending our forum. We know that it is not an easy thing to do. Thank you for supporting our forum and our country. We really appreciate this.
We will have a lot of questions today. You may not like some of them, and I may not be happy to ask some of them. We would be much happier to speak only about good things, but this is impossible today.
Mr President, I would like to ask you to take the stand and to tell us what lies in store for us all. Thank you.
President of Russia Vladimir Putin: Thank you very much. President Tokayev, friends and colleagues,
I welcome all participants and guests of the 25th St Petersburg International Economic Forum.
It is taking place at a difficult time for the international community when the economy, markets and the very principles of the global economic system have taken a blow. Many trade, industrial and logistics chains, which were dislocated by the pandemic, have been subjected to new tests. Moreover, such fundamental business notions as business reputation, the inviolability of property and trust in global currencies have been seriously damaged. Regrettably, they have been undermined by our Western partners, who have done this deliberately, for the sake of their ambitions and in order to preserve obsolete geopolitical illusions.
Today, our – when I say “our,” I mean the Russian leadership – our own view of the global economic situation. I would like to speak in greater depth about the actions Russia is taking in these conditions and how it plans to develop in these dynamically changing circumstances.
When I spoke at the Davos Forum a year and a half ago, I also stressed that the era of a unipolar world order has come to an end. I want to start with this, as there is no way around it. This era has ended despite all the attempts to maintain and preserve it at all costs. Change is a natural process of history, as it is difficult to reconcile the diversity of civilisations and the richness of cultures on the planet with political, economic or other stereotypes – these do not work here, they are imposed by one centre in a rough and no-compromise manner.
The flaw is in the concept itself, as the concept says there is one, albeit strong, power with a limited circle of close allies, or, as they say, countries with granted access, and all business practices and international relations, when it is convenient, are interpreted solely in the interests of this power. They essentially work in one direction in a zero-sum game. A world built on a doctrine of this kind is definitely unstable.
After declaring victory in the Cold War, the United States proclaimed itself to be God’s messenger on Earth, without any obligations and only interests which were declared sacred. They seem to ignore the fact that in the past decades, new powerful and increasingly assertive centres have been formed. Each of them develops its own political system and public institutions according to its own model of economic growth and, naturally, has the right to protect them and to secure national sovereignty.
These are objective processes and genuinely revolutionary tectonic shifts in geopolitics, the global economy and technology, in the entire system of international relations, where the role of dynamic and potentially strong countries and regions is substantially growing. It is no longer possible to ignore their interests.
To reiterate, these changes are fundamental, groundbreaking and rigorous. It would be a mistake to assume that at a time of turbulent change, one can simply sit it out or wait it out until everything gets back on track and becomes what it was before. It will not.
However, the ruling elite of some Western states seem to be harbouring this kind of illusions. They refuse to notice obvious things, stubbornly clinging to the shadows of the past. For example, they seem to believe that the dominance of the West in global politics and the economy is an unchanging, eternal value. Nothing lasts forever.
Our colleagues are not just denying reality. More than that; they are trying to reverse the course of history. They seem to think in terms of the past century. They are still influenced by their own misconceptions about countries outside the so-called “golden billion”: they consider everything a backwater, or their backyard. They still treat them like colonies, and the people living there, like second-class people, because they consider themselves exceptional. If they are exceptional, that means everyone else is second rate.
Thereby, the irrepressible urge to punish, to economically crush anyone who does not fit with the mainstream, does not want to blindly obey. Moreover, they crudely and shamelessly impose their ethics, their views on culture and ideas about history, sometimes questioning the sovereignty and integrity of states, and threatening their very existence. Suffice it to recall what happened in Yugoslavia, Syria, Libya and Iraq.
If some “rebel” state cannot be suppressed or pacified, they try to isolate that state, or “cancel” it, to use their modern term. Everything goes, even sports, the Olympics, bans on culture and art masterpieces just because their creators come from the “wrong” country.
This is the nature of the current round of Russophobia in the West, and the insane sanctions against Russia. They are crazy and, I would say, thoughtless. They are unprecedented in the number of them or the pace the West churns them out at.
The idea was clear as day – they expected to suddenly and violently crush the Russian economy, to hit Russia’s industry, finance, and people's living standards by destroying business chains, forcibly recalling Western companies from the Russian market, and freezing Russian assets.
This did not work. Obviously, it did not work out; it did not happen. Russian entrepreneurs and authorities have acted in a collected and professional manner, and Russians have shown solidarity and responsibility.
Step by step, we will normalise the economic situation. We have stabilised the financial markets, the banking system and the trade network. Now we are busy saturating the economy with liquidity and working capital to maintain the stable operation of enterprises and companies, employment and jobs.
The dire forecasts for the prospects of the Russian economy, which were made in early spring, have not materialised. It is clear why this propaganda campaign was fuelled and all the predictions of the dollar at 200 rubles and the collapse of our economy were made. This was and remains an instrument in an information struggle and a factor of psychological influence on Russian society and domestic business circles.
Incidentally, some of our analysts gave in to this external pressure and based their forecasts on the inevitable collapse of the Russian economy and a critical weakening of the national currency – the ruble.
Real life has belied these predictions. However, I would like to emphasise that to continue being successful, we must be explicitly honest and realistic in assessing the situation, be independent in reaching conclusions, and of course, have a can-do spirit, which is very important. We are strong people and can deal with any challenge. Like our predecessors, we can resolve any task. The entire thousand-year history of our country bears this out.
Within just three months of the massive package of sanctions, we have suppressed inflation rate spikes. As you know, after peaking at 17.8 percent, inflation now stands at 16.7 percent and continues dropping. This economic dynamic is being stabilised, and state finances are now sustainable. I will compare this to other regions further on. Yes, even this figure is too much for us – 16.7 percent is high inflation. We must and will work on this and, I am sure, we will achieve a positive result.
After the first five months of this year, the federal budget has a surplus of 1.5 trillion rubles and the consolidated budget – a surplus of 3.3 trillion rubles. In May alone, the federal budget surplus reached almost half a trillion rubles, surpassing the figure for May 2021 more than four times over.
Today, our job us to create conditions for building up production and increasing supply in the domestic market, as well as restoring demand and bank financing in the economy commensurately with the growth in supply.
I mentioned that we have taken measures to reestablish the floating assets of companies. In most sectors, businesses have received the right to suspend insurance premiums for the second quarter of the year. Industrial companies have even more opportunities – they will be able to delay them through the third quarter as well. In effect, this is like getting an interest-free loan from the state.
In the future, companies will not have to pay delayed insurance premiums in a single payment. They will be able to pay them in equal installments over 12 months, starting in June next year.
Next. As of May the subsidised mortgage rate has been reduced. It is now 9 percent, while the programme has been extended till the end of the year. As I have mentioned, the programme is aimed at helping Russians improve their housing situation, while supporting the home building industry and related industries that employ millions of people.
Following a spike this spring, interest rates have been gradually coming down, as the Central Bank lowers the key rate. I believe that that this allows the subsidised mortgage rate to be further cut to 7 percent.
What is important here? The programme will last until the end of the year without change. It means that our fellow Russians seeking to improve their living conditions should take advantage of the subsidy before the end of the year.
The lending cap will not change either, at 12 million roubles for Moscow and St Petersburg and 6 million for the rest of Russia.
I should add that we must make long-term loans for businesses more accessible. The focus must shift from budget subsidies for businesses to bank lending as a means to spur business activity.
We need to support this. We will allocate 120 billion rubles from the National Wealth Fund to build up the capacity of the VEB Project Financing Factory. This will provide for additional lending to much-needed initiatives and projects worth around half a trillion roubles.
Colleagues,
Once again, the economic blitzkrieg against Russia was doomed to fail from the beginning. Sanctions as a weapon have proved in recent years to be a double-edged sword damaging their advocates and architects just a much, if not more.
I am not talking about the repercussions we see clearly today. We know that European leaders informally, so to say, furtively, discuss the very concerning possibility of sanctions being levelled not at Russia, but at any undesirable nation, and ultimately anyone including the EU and European companies.
So far this is not the case, but European politicians have already dealt their economies a serious blow all by themselves. We see social and economic problems worsening in Europe, and in the US as well, food, electricity and fuel prices rising, with quality of life in Europe falling and companies losing their market edge.
According to experts, the EU’s direct, calculable losses from the sanctions fever could exceed $400 billion this year. This is the price of the decisions that are far removed from reality and contradict common sense.
These outlays fall directly on the shoulders of people and companies in the EU. The inflation rate in some Eurozone countries has exceeded 20 percent. I mentioned inflation in Russia, but the Eurozone countries are not conducting special military operations, yet the inflation rate in some of them has reached 20 percent. Inflation in the United States is also unacceptable, the highest in the past 40 years.
Of course, inflation in Russia is also in the double digits so far. However, we have adjusted social benefits and pensions to inflation, and increased the minimum and subsistence wages, thereby protecting the most vulnerable groups of the population. At the same time, high interest rates have helped people keep their savings in the Russian banking system.
Businesspeople know, of course, that a high key rate clearly slows economic development. But it is a boon for the people in most cases. They have reinvested a substantial amount of money in banks due to higher interest rates.
This is our main difference from the EU countries, where rising inflation is directly reducing the real incomes of the people and eating up their savings, and the current manifestations of the crisis are affecting, above all, low-income groups.
The growing outlays of European companies and the loss of the Russian market will have lasting negative effects. The obvious result of this will be the loss of global competitiveness and a system-wide decline in the European economies’ pace of growth for years to come.
Taken together, this will aggravate the deep-seated problems of European societies. Yes, we have many problems as well, yet I have to speak about Europe now because they are pointing the finger at us although they have enough of their own problems. I mentioned this at Davos. A direct result of the European politicians’ actions and events this year will be the further growth of inequality in these countries, which will, in turn, split their societies still more, and the point at issue is not only the well-being but also the value orientation of various groups in these societies.
Indeed, these differences are being suppressed and swept under the rug. Frankly, the democratic procedures and elections in Europe and the forces that come to power look like a front, because almost identical political parties come and go, while deep down things remain the same. The real interests of people and national businesses are being pushed further and further to the periphery.
Such a disconnect from reality and the demands of society will inevitably lead to a surge in populism and extremist and radical movements, major socioeconomic changes, degradation and a change of elites in the short term. As you can see, traditional parties lose all the time. New entities are coming to the surface, but they have little chance for survival if they are not much different from the existing ones.
The attempts to keep up appearances and the talk about allegedly acceptable costs in the name of pseudo-unity cannot hide the main thing: the European Union has lost its political sovereignty, and its bureaucratic elites are dancing to someone else’s tune, doing everything they are told from on high and hurting their own people, economies, and businesses.
There are other critically important matters here. The worsening of the global economic situation is not a recent development. I will now go over things that I believe are extremely important. What is happening now does not stem from what happened during recent months, of course not. Moreover, it is not the result of the special military operation carried out by Russia in Donbass. Saying so is an unconcealed, deliberate distortion of the facts.
Surging inflation in product and commodity markets had become a fact of life long before the events of this year. The world has been driven into this situation, little by little, by many years of irresponsible macroeconomic policies pursued by the G7 countries, including uncontrolled emission and accumulation of unsecured debt. These processes intensified with the onset of the coronavirus pandemic in 2020, when supply and demand for goods and services drastically fell on a global scale.
This begs the question: what does our military operation in Donbass have to do with this? Nothing whatsoever.
Because they could not or would not devise any other recipes, the governments of the leading Western economies simply accelerated their money-printing machines. Such a simple way to make up for unprecedented budget deficits.
I have already cited this figure: over the past two years, the money supply in the United States has grown by more than 38 percent. Previously, a similar rise took decades, but now it grew by 38 percent or 5.9 trillion dollars in two years. By comparison, only a few countries have a bigger gross domestic product.
The EU's money supply has also increased dramatically over this period. It grew by about 20 percent, or 2.5 trillion euros.
Lately, I have been hearing more and more about the so-called – please excuse me, I really would not like to do this here, even mention my own name in this regard, but I cannot help it – we all hear about the so-called ‘Putin inflation’ in the West. When I see this, I wonder who they expect would buy this nonsense – people who cannot read or write, maybe. Anyone literate enough to read would understand what is actually happening.
Russia, our actions to liberate Donbass have absolutely nothing to do with this. The rising prices, accelerating inflation, shortages of food and fuel, petrol, and problems in the energy sector are the result of system-wide errors the current US administration and European bureaucracy have made in their economic policies. That is where the reasons are, and only there.
I will mention our operation, too: yes, it could have contributed to the trend, but the root cause is precisely this – their erroneous economic policies. In fact, the operation we launched in Donbass is a lifeline they are grabbing at to be able to blame their own miscalculations on others, in this case, on Russia. But everyone who has at least completed primary school would understand the true reasons for today's situation.
So, they printed more money, and then what? Where did all that money go? It was obviously used to pay for goods and services outside Western countries – this is where the newly-printed money flowed. They literally began to clean out, to wipe out global markets. Naturally, no one thought about the interests of other states, including the poorest ones. They were left with scraps, as they say, and even that at exorbitant prices.
While at the end of 2019, imports of goods to the United States amounted to about 250 billion dollars a month, by now, it has grown to 350 billion. It is noteworthy that the growth was 40 percent – exactly in proportion to the unsecured money supply printed in recent years. They printed and distributed money, and used it to wipe out goods from third countries’ markets.
This is what I would like to add. For a long time, the United States was a big food supplier in the world market. It was proud, and with good reason, of its achievements, its agriculture and farming traditions. By the way, this is an example for many of us, too. But today, America’s role has changed drastically. It has turned from a net exporter of food into a net importer. Loosely speaking, it is printing money and pulling commodity flows its way, buying food products all over the world.
The European Union is building up imports even faster. Obviously, such a sharp increase in demand that is not covered by the supply of goods has triggered a wave of shortages and global inflation. This is where this global inflation originates. In the past couple of years, practically everything – raw materials, consumer goods and particularly food products – has become more expensive all over the world.
Yes, of course, these countries, including the United States continue importing goods, but the balance between exports and imports has been reversed. I believe imports exceed exports by some 17 billion. This is the whole problem.
According to the UN, in February 2022, the food price index was 50 percent higher than in May 2020, while the composite raw materials index has doubled over this period.
Under the cloud of inflation, many developing nations are asking a good question: why exchange goods for dollars and euros that are losing value right before our eyes? The conclusion suggests itself: the economy of mythical entities is inevitably being replaced by the economy of real values and assets.
According to the IMF, global currency reserves are at $7.1 trillion and 2.5 trillion euros now. These reserves are devalued at an annual rate of about 8 percent. Moreover, they can be confiscated or stolen any time if the United States dislikes something in the policy of the states involved. I think this has become a very real threat for many countries that keep their gold and foreign exchange reserves in these currencies.
According to analyst estimates, and this is an objective analysis, a conversion of global reserves will begin just because there is no room for them with such shortages. They will be converted from weakening currencies into real resources like food, energy commodities and other raw materials. Other countries will be doing this, of course. Obviously, this process will further fuel global dollar inflation.
As for Europe, their failed energy policy, blindly staking everything on renewables and spot supplies of natural gas, which have caused energy price increases since the third quarter of last year – again, long before the operation in Donbass – have also exacerbated price hikes. We have absolutely nothing to do with this. It was due to their own actions that prices have gone through the roof, and now they are once again looking for somebody to blame.
Not only did the West’s miscalculations affect the net cost of goods and services but they also resulted in decreased fertiliser production, mainly nitrogen fertilisers made from natural gas. Overall, global fertiliser prices have jumped by over 70 percent from mid-2021 through February 2022.
Unfortunately, there are currently no conditions that can overcome these pricing trends. On the contrary, aggravated by obstacles to the operation of Russian and Belarusian fertiliser producers and disrupted supply logistics, this situation is approaching a deadlock.
It is not difficult to foresee coming developments. A shortage of fertiliser means a lower harvest and a higher risk of an undersupplied global food market. Prices will go even higher, which could lead to hunger in the poorest countries. And it will be fully on the conscience of the US administration and the European bureaucracy.
I want to emphasise once again: this problem did not arise today or in the past three or four months. And certainly, it is not Russia’s fault as some demagogues try to declare, shifting the responsibility for the current state of affairs in the world economy to our country.
Maybe it would even be nice to hear that we are so powerful and omnipotent that we can blow up inflation in the West, in the United States and Europe, or that we can do things to throw everything into disorder. Maybe it would be nice to feel this power, if only there were truth in it. This situation has been brewing for years, spurred by the short-sighted actions of those who are used to solving their problems at somebody else’s expense and who have relied and still rely on the mechanism of financial emission to outbid and draw trade flows, thus escalating deficits and provoking humanitarian disasters in certain regions of the world. I will add that this is essentially the same predatory colonial policy as in the past, but of course in a new iteration, a more subtle and sophisticated edition. You might not even recognise it at first.
The current priority of the international community is to increase food deliveries to the global market, notably, to satisfy the requirements of the countries that need food most of all.
While ensuring its domestic food security and supplying the domestic market, Russia is also able to scale up its food and fertiliser exports. For example, our grain exports in the next season can be increased to 50 million tonnes.
As a priority, we will supply the countries that need food most of all, where the number of starving people could increase, first of all, African countries and the Middle East.
At the same time, there will be problems there, and not through our fault either. Yes, on paper Russian grain, food and fertilisers… Incidentally, the Americans have adopted sanctions on our fertilisers, and the Europeans followed suit. Later, the Americans lifted them because they saw what this could lead to. But the Europeans have not backed off. Their bureaucracy is as slow as a flour mill in the 18th century. In other words, everyone knows that they have done a stupid thing, but they find it difficult to retrace their steps for bureaucratic reasons.
As I have said, Russia is ready to contribute to balancing global markets of agricultural products, and we see that our UN colleagues, who are aware of the scale of the global food problem, are ready for dialogue. We could talk about creating normal logistical, financial and transport conditions for increasing Russian food and fertiliser exports.
As for Ukrainian food supplies to global markets – I have to mention this because of numerous speculations – we are not hindering them. They can do it. We did not mine the Black Sea ports of Ukraine. They can clear the mines and resume food exports. We will ensure the safe navigation of civilian vessels. No problem.
But what are we talking about? According to the US Department of Agriculture, the matter concerns 6 million tonnes of wheat (we estimate it at 5 million tonnes) and 7 million tonnes of maize. This is it, altogether. Since global production of wheat stands at 800 million tonnes, 5 million tonnes make little difference for the global market, as you can see.
Anyway, Ukrainian grain can be exported, and not only via Black Sea ports. Another route is via Belarus, which is, incidentally, the cheapest way. Or via Poland or Romania, whichever you prefer. In fact, there are five or six export routes.
The problem is not with us, the problem is with the adequacy of the people in control in Kiev. They can decide what to do, and, at least in this particular case, they should not take their lead from their foreign bosses, their masters across the ocean.
But there is also the risk that grain will be used as payment for arms deliveries. This would be regrettable.
Friends,
Once again, the world is going through an era of drastic change. International institutions are breaking down and faltering. Security guarantees are being devalued. The West has made a point of refusing to honour its earlier commitments. It has simply been impossible to reach any new agreements with them.
Given these circumstances and against the backdrop of mounting risks and threats, Russia was forced to go ahead with the special military operation. It was a difficult but necessary decision, and we were forced to make it.
This was the decision of a sovereign country, which has еру unconditional right to uphold its security, which is based on the UN Charter. This decision was aimed at protecting our people and the residents of the people's republics of Donbass who for eight long years were subjected to genocide by the Kiev regime and the neo-Nazis who enjoyed the full protection of the West.
The West not only sought to implement an “anti-Russia” scenario, but also engaged in the active military development of Ukrainian territory, flooding Ukraine with weapons and military advisers. And it continues to do so now. Frankly, no one is paying any attention to the economy or well-being of the people living there, they just do not care about it at all, but they have never spared money to create a NATO foothold in the east that is directed against Russia and to cultivate aggression, hatred and Russophobia.
Today, our soldiers and officers, as well as the Donbass militia, are fighting to protect their people. They are fighting for Russia's future as a large, free and secure multiethnic country that makes its own decisions, determines its own future, relies on its history, culture and traditions, and rejects any and all outside attempts to impose pseudo-values steeped in dehumanisation and moral degradation.
No doubt, our special military operation goals will be fulfilled. The key to this is the courage and heroism of our soldiers, consolidated Russian society, whose support gives strength and confidence to the Russian Army and Navy and a deep understanding of the truth and historical justice of our cause which is to build and strengthen Russia as a strong sovereign power.
My point is that sovereignty cannot be segmented or fragmented in the 21st century. The components of sovereignty are equally important, and they reinvigorate and complement each other.
So, what matters to us is not only the defence of our political sovereignty and national identity, but also strengthening everything that determines our country’s economic, financial, professional and technological independence.
The very structure of Western sanctions rested on the false premise that economically Russia is not sovereign and is critically vulnerable. They got so carried away spreading the myth of Russia’s backwardness and its weak positions in the global economy and trade that apparently, they started believing it themselves.
While planning their economic blitzkrieg, they did not notice, simply ignored the real facts of how much our country had changed in the past few years.
These changes are the result of our planned efforts to create a sustainable macroeconomic structure, ensure food security, implement import substitution programmes and create our own payment system, to name a few.
Of course, sanction restrictions created many challenges for the country. Some companies continue having problems with spare parts. Our companies have lost access to many technological solutions. Logistics are in disarray.
But, on the other hand, all this opens up new opportunities for us – we often talk about this but it really is so. All this is an impetus to build an economy with full rather than partial technological, production, human and scientific potential and sovereignty.
Naturally, it is impossible to resolve such a comprehensive challenge instantly. It is necessary to continue working systematically with an eye to the future. This is exactly what Russia is doing by implementing its long-term plans for the development of branches of the economy and strengthening the social sphere. The current trials are merely resulting in adjustments and modifications of the plans without changing their strategic orientation.
Today, I would like to talk about the key principles on which our country, our economy will develop.
The first principle is openness. Genuinely sovereign states are always interested in equal partnership and in contributing to global development. On the contrary, weak and dependent countries are usually looking for enemies, fuelling xenophobia or losing the last remnants of their identity and independence, blindly following in the wake of their suzerain.
Russia will never follow the road of self-isolation and autarky although our so-called Western friends are literally dreaming about this. Moreover, we are expanding cooperation with all those who are interested in it, who want to work with us, and will continue to do so. There are many of them. I will not list them at this point. They make up the overwhelming majority of people on Earth. I will not list all these countries now. It is common knowledge.
I will say nothing new when I remind you that everyone who wants to continue working or is working with Russia is subjected to blatant pressure from the United States and Europe; it goes as far as direct threats. However, this kind of blackmail means little when it comes to countries headed by true leaders who know the difference between their own national interests, the interests of their people – and someone else’s.
Russia will build up economic cooperation with these states and promote joint projects. At the same time, we will certainly continue to cooperate with Western companies that have remained in the Russian market despite the unprecedented arm-twisting – such companies exist, too.
We believe the development of a convenient and independent payment infrastructure in national currencies is a solid and predictable basis for deepening international cooperation. To help companies from other countries develop logistical and cooperation ties, we are working to improve transport corridors, increase the capacity of railways, transshipment capacity at ports in the Arctic, and in the eastern, southern and other parts of the country, including in the Azov-Black Sea and Caspian basins – they will become the most important section of the North-South Corridor, which will provide stable connectivity with the Middle East and Southern Asia. We expect freight traffic along this route to begin growing steadily in the near future.
But foreign trade is not our only priority. Russia intends to increase scientific, technological, cultural, humanitarian and sports cooperation based on equality and mutual respect between partners. At the same time, our country will strive for responsible leadership in all these areas.
The second principle of our long-term development is a reliance on entrepreneurial freedom. Every private initiative aimed at benefiting Russia should receive maximum support and space for implementation.
The pandemic and the more recent events have confirmed how important flexibility and freedom are in the economy. Russian private businesses – in tough conditions, amid attempts to restrain our development by any means – have proved they can compete in global markets. Private businesses should also be credited for Russia’s adaptation to rapidly changing external conditions. Russia needs to ensure the dynamic development of the economy – naturally, relying on private business.
We will continue to reduce administrative hurdles. For example, in 2016–2018, we imposed a moratorium on routine audits of small businesses. Subsequently, it was extended through 2022. In 2020, this moratorium was extended to cover mid-sized companies. Also, the number of unscheduled audits decreased approximately fourfold.
We did not stop at that, and last March, we cancelled routine audits for all entrepreneurs, regardless of the size of their businesses, provided their activities do not put people or the environment at high risk. As a result, the number of routine audits has declined sixfold compared to last year.
Why am I giving so many details? The point is that after the moratorium on audits was imposed, the number of violations by entrepreneurs – this was the result – has not increased, but rather it has gone down. This testifies to the maturity and responsibility of Russian businesses. Of course, they should be offered motivation rather than being forced to observe regulations and requirements.
So, there is every reason to take another radical step forward, that is, to abandon, for good and on a permanent basis, the majority of audits for all Russian businesses, except on risky or potentially dangerous activities. Everyone has long since understood that there was no need to check on everyone without exception. A risk-oriented approach should be at work. I ask the Government to develop the specific parameters of such a reform in the next few months.
There is another very sensitive topic for business, which has also become important today for our national security and economic resilience. To reduce and bring to a minimum all sorts of abuse and loopholes to exert pressure on entrepreneurs, we are consistently removing loose regulations from criminal law that are applied to economic crimes.
Last March, a law was signed, under which tax-related criminal cases against entrepreneurs shall only be brought before a court by the tax service – there is no other way. Soon a draft law will be passed on reducing the statute of limitations for tax-related crimes and on rejecting lawsuits to initiate criminal proceedings after tax arrears have been paid off.
Working comprehensively, although prudently, we need to decriminalise a wide range of economic offenses, for instance, those that punish businesses without a licence or accreditation. This is a controversial practice today because our Western partners illegitimately refuse to provide such licenses.
Our own agencies must not single-handedly make our businesses criminally liable for actually doing nothing wrong. The problem is this, and small businesses understand it very well – if a licence has expired, and Western partners refuse to extend it, what are businesses to do, wrap up operations? By no means, let them work. State oversight should continue, but there should be no undue interference in business.
It also makes sense to think about raising the threshold of criminal liability for unpaid customs duties and other such taxes. Additionally, we have not for a long time reconsidered the parameters of the terms ‘large’ and ‘very large’ economic loss for the purposes of economic offences despite inflation accruing 50 percent since 2016. The law now fails to reflect the current realities and needs to be corrected.
We need to reconsider the conditions for detaining entrepreneurs and for extending preliminary investigations. It is no secret that these practices have long been used inappropriately.
Businesses have been forced to cease operations or go bankrupt even before the investigation is over. The reputation of the owners and of the brand name suffers as a result, not to mention the direct financial loss, loss of market share and jobs.
I want to ask law enforcement to put an end to these practices. I also ask the Government and the Supreme Court to draft appropriate legislation before October 1 of this year.
In addition, at the Security Council, a special instruction was given to look into criminal cases being opened without later proceeding to court. The number of such cases has grown in recent years. We know the reasons. A case is often opened without sufficient grounds or to put pressure on individuals. We will discuss this in autumn to take legislative action and change the way our law enforcement agencies work.
It goes without saying that regional governments play a major role in creating a modern business environment. As is customary during the St Petersburg Forum, I highlight the regions that have made significant progress in the National Investment Climate Rankings compiled by the Agency for Strategic Initiatives.
There have been changes in the top three. Moscow and Tatarstan have remained at the top and were joined by the Moscow Region which, in a span of one year, went from eighth place to the top three. The leaders of the rankings also include the Tula, Nizhny Novgorod, Tyumen, Novgorod, and Sakhalin regions, St Petersburg and Bashkortostan.
Separately, I would like to highlight the regions that have made the greatest strides such as the Kurgan Region, which moved up 36 spots; the Perm Territory and the Altai Territory, up 26 spots; Ingushetia, up 24 spots; and the Ivanovo Region which moved up 17 spots.
I want to thank and congratulate our colleagues in the regions for their good work.
The federal government and regional and municipal governments should focus on supporting individual business initiatives in small towns and remote rural communities. We are aware of such stories of success. That includes developing popular software and marketing locally produced organic food and environmentally friendly products nationwide using domestic websites.
It is important to create new opportunities, to introduce modern retail formats, including e-commerce platforms, as I mentioned above, and to cut the logistics, transportation and other costs, including by using upgraded Russian Post offices.
It is also important to help small business employees, self-employed individuals and start-up entrepreneurs acquire additional skills and competencies. Please include corresponding measures tailored specifically to small towns and rural and remote areas as a separate line in the national project for promoting small and medium-sized businesses.
Today I would like to address our officials, owners of large companies, our business leaders and executives.
Colleagues, friends,
Real, stable success and a sense of dignity and self-respect only come when you link your future and the future of your children with your Fatherland. We have maintained ties with many people for a long time, and I am aware of the sentiments of many of the heads and owners of our companies. You have told me many times that business is much more than just making a profit, and I fully agree. It is about changing life around you, contributing to the development of your home cities, regions and the country as a whole, which is extremely important for self-fulfilment. There is nothing like serving the people and society. This is the meaning of your life and work.
Recent events have reaffirmed what I have always said: it is much better at home. Those who refused to hear that clear message have lost hundreds of millions, if not billions of dollars in the West, in what looked like a safe haven for their assets.
I would like to once again say the following to our colleagues, those who are both in this audience and those who are not here: please, do not fall into the same trap again. Our country has huge potential, and there are more than enough tasks that need your contribution. Invest here, in the creation of new enterprises and jobs, in the development of the tourism infrastructure, support schools, universities, healthcare and the social sphere, culture and sport. I know that many of you are doing this. I know this, but I wanted to say it again.
This is how the Bakhrushin, Morozov, Shchukin, Ryabushinsky, Akchurin, Galeyev, Apanayev, Matsiyev, Mamontov, Tretyakov, Arsanov, Dadashev and Gadzhiyev families understood their noble mission. Many Russian, Tatar, Buryat, Chechen, Daghestani, Yakutian, Ossetian, Jewish, Armenian and other merchant and entrepreneurial families did not deprive their heirs of their due share, and at the same time they etched their names in the history of our country.
Incidentally, I would like to note once again that it remains to be seen what is more important for potential heirs: money and property or their forefathers’ good name and service to the country. The latter is something that cannot be squandered or, pardon my language, wasted on drink.
A good name is something that will always belong to your descendants, to future generations. It will always be part of their lives, going from one generation to another, helping them and making them stronger than the money or property they might inherit can make them.
Colleagues,
A responsible and well-balanced macroeconomic policy is the third guiding principle of our long-term development. In fact, this policy has largely enabled us to withstand the unprecedented pressure brought on by sanctions. Let me reiterate that this is an essential policy in the long term, not just for responding to the current challenges. We will not follow in the footsteps of our Western colleagues by replicating their bitter experience setting off an inflation spiral and disrupting their finances.
Our goal is to ensure robust economic growth for years to come, reducing the inflation burden on our people and businesses and achieving the mid- and long-term target inflation rate of four percent. Inflation was one of the first things I mentioned during my remarks, so let me tell you this: we remain committed to this target of a four-percent inflation rate.
I have already instructed the Government to draft proposals regarding the new budget guidelines. They must ensure that our budget policy is predictable and enables us to make the best use of the external economic conditions. Why do we need all this? To put economic growth on a more stable footing, while also delivering on our infrastructure and technological objectives, which provide a foundation for improving the wellbeing of our people.
True, some international reserve currencies have set themselves on a suicidal path lately, which is an obvious fact. In any case, they clearly have suicidal intentions. Of course, using them to ‘sterilise’ our money supply does not make any sense. Still, the principle of planning one’s spending based on how much you earn remains relevant. This is how it works, and we understand this.
Social justice is the fourth principle underpinning our development. There must be a powerful social dimension when it comes to promoting economic growth and business initiatives. This development model must reduce inequality instead of deepening it, unlike what is happening in other countries. To be honest, we have not been at the forefront when it comes to delivering on these objectives. We have yet to resolve many issues and problems in this regard.
Reducing poverty and inequality is all about creating demand for Russian-made products across the country, bridging the gap between regions in terms of their capabilities, and creating new jobs where they are needed the most. These are the core economic development drivers.
Let me emphasise that generating positive momentum in terms of household income growth and poverty reduction are the main performance indicators for government agencies and the state in general. We need to achieve tangible results in this sphere already this year, despite all the objective challenges we face. I have already assigned this task to the Government.
Again, we provide targeted support to the most vulnerable groups – pensioners, families with children, and people in difficult life situations.
Pensions are indexed annually at a rate higher than inflation. This year, they have been raised twice, including by another 10 percent on June 1.
The minimum wage was also increased by 10 percent at the same time, and so was the subsistence minimum – a reference figure used to calculate many social benefits and payments – accordingly, these benefits should also grow, increasing the incomes of about 15 million people.
In recent years, we have built a holistic system to support low-income families with children. Women are entitled to state support from the early stages of pregnancy and until the child reaches the age of 17.
People’s living standards and prosperity are the most important demographic factors; the current situation is quite challenging due to several negative demographic waves that have recently overlapped. In April, less than a hundred thousand children were born in Russia, almost 13 percent less than in April 2020.
I ask the Government to continue to keep the development of additional support measures for families with children under review. They must be far-reaching and commensurate with the magnitude of the extraordinary demographic challenge we are facing.
Russia’s future is ensured by families with two, three and more children. Therefore, we need to do more than provide direct financial support – we need to target and direct the healthcare system, education, and all areas that determine the quality of people's lives towards the needs of families with children.
This problem is addressed, among other approaches, by the national social initiatives, which regional teams and the Agency for Strategic Initiatives are implementing together. This autumn, we will assess the results of their work, review and rank the Russian regions by quality of life in order to apply the best experiences and practices as widely as possible throughout the country.
To be continued.
The war in Ukraine is only a bloody pretext, devised by Washington, to exclude Russia from all international organizations, weaken the European Union and, ultimately, preserve Anglo-American domination over the entire West. Don’t be fooled!
I wish to talk to you not about the war in Ukraine, but about the New World Order that the United States is organizing right before your eyes – but without your realizing it – while this war in Ukraine is taking place.
First of all, you should know that since mid-February, the media have been relaying a completely distorted narrative because they do not report all the facts, but only those messages that NATO wants to convey. Since mid-February we have all been “one-eyed”, only seeing half the picture and, consequently, we make the mistake of thinking that we can interpret it.
The second thing you must bear in mind is that your emotions are being manipulated. Every day we are shown Ukrainians who suffer – indeed, it is horrible and we must help them, it is a human obligation to do so. But their suffering does not prove them right. Suffering and being right are two different things.
With that said, let’s get down to the facts.
This war did not start on 24 February with the Russian intervention, but several days earlier, on 18 February, with the intervention of the United States, an intervention that no one has ever told you about.
On 18 February, according to the Organization for Security and Cooperation in Europe (OSCE) - comprising 57 participating states, it was created during the cold war and all European states are members, as well as non-European states, such as the United States: its neutrality is indisputable! - although there had been no fighting in Ukraine, on 18 February fighting resumed between the Ukrainian provinces of Donbass and the rest of Donbass.
The OSCE does not say that the Ukrainian army was responsible, but it could only be the Ukrainian army. The shelling of the Ukrainian population of Donbass began on 18 February. 1,400 shells rained down on the population that day ... 1,400 shells!
A war was started on 18 February! And in a few hours, two days at the most, about 100,000 Ukrainians from Donbass fled from the front line. They retreated to the countryside or crossed over into Russia. All Russia did was to respond to that attack.
But the attack didn’t end there. The Ukrainians acted like someone waving a red flag in front of a bull. The next day, on 19 February, at the Security Conference that brings together political leaders from NATO member countries every year in Munich, President Zelensky announced that he wanted to acquire the atomic bomb enabling him to threaten Russia.
Seen from Moscow: Ukraine engages in war against Russia and announces that it is going to obtain the atomic bomb.
It was clear that there would be a Russian response. Russia had to protect its citizens and you should know that the civil war in Ukraine started in 2014… it is a civil war we are talking about because Ukrainians are pitted against other Ukrainians! And in the past 8 years that war has left, according to the Kiev government, at least 13,000 dead, at least 13,000 dead!... all civilians, in addition to a thousand soldiers, again according to Kiev.
According to the Russian government, which conducted an official investigation on the ground, the number of dead civilians is not 13,000 but 22,000! Whatever the case, the Donbass has been witness to a butchery that doesn’t seem to dismay anyone.
Now back to what I was saying.
For the past 8 years, Russia has granted Russian citizenship to almost the entire population of the Ukrainian Donbass, who since childhood speaks Russian on a daily basis, a population that has now been prohibited by the Kiev government from speaking Russian in schools and public administrations, although this was always authorized in the past. Therefore, on 24 February, the Moscow government stepped in to support this population militarily.
But what us most important is to understand the context.
Why did the United States arm Kiev to attack Donbass?
It’s very simple. For ten years, the domination of the United States has been threatened by the rise of Russia and China.
On Voltaire Network we have argued for a long time that the first military power is no longer the United States but Russia.
This has been an absolutely irrefutable fact since 2018, but the United States refuses to admit it, despite the fact that, on the battlefield – mainly in Syria – it was demonstrable that the Russian army is tactically superior to the military forces sponsored by the United States.
Their technologies cannot be compared. That of the United States dates back 30 years. It is completely obsolete.
The Russians have completely revamped their army and replaced their personnel. The army they had inherited from the Soviet Union frankly consisted of … a gang of alcoholics. Today it is made up of young people, with very good training, with experience in real war situations, taking on jihadists ... jihadist armies! In Syria.
In economic terms, China has long surpassed the United States, which is now only a consumer, not a manufacturer.
Feeling threatened, the United States has itself explained what it calls "the Thucydides trap". Thucydides is an ancient Greek historian who described the confrontation between Sparta and Athens. Sparta dominated all of Greece, but Athens, which was inferior, began to develop an empire abroad, so that Athens had an economic influence that Sparta no longer had, and war between the two cities became inevitable.
US political scientists have been telling us for ten years now that a war between the United States on one side and Russia and China on the other side was going to become inevitable. In the Pentagon there are even people who assert that this war should already have broken out and that it had been planned for 2015.
Over the past few years, the United States has positioned troops and weapons throughout central and eastern Europe. It has done so in violation, firstly, of the German reunification treaty and, secondly, of the Istanbul and Astana declarations adopted within the OSCE.
Let’s fully understand! Russia is a huge country, with the largest land area in the world. To defend itself… Russia must be able to defend its borders, but it does not have enough troops for that. In that sense, it is a small town in a huge country. So to defend itself, Russia uses the scorched earth technique. If an invader penetrates her territory, Russia pulls back her population from the border as far as possible – inside her huge territory – and burns down her own cities so that the invader cannot subsist there. Therefore, the invaders have to take with them everything they need if they want to continue advancing. It is an impossible logistical challenge to solve. Napoleon and Hitler failed at it.
To overcome this problem, the United States has been sending troops and weapons to Central and Eastern Europe.
Russia responded:
"You cannot do that, in light of what you signed at the time of the German reunification. You have no right to extend NATO to the East."
But the United States went ahead anyway… on several occasions.
Russia does not dispute the right of Central and Eastern European countries to ally themselves with the United States. It is their prerogative. It is the right of each State. Russia doesn’t dispute it in the case of Ukraine either.
What she challenges is Ukraine’s right to host US military bases, which is an entirely different matter.
In a similar context, General Charles de Gaulle as President of France decided to remove NATO troops from French territory – there used to be American bases in France which are no longer there. But that did not prevent General de Gaulle from maintaining an alliance with the United States. France has always been a signatory to the North Atlantic Treaty. But she wasn’t always a member of NATO’s Integrated Military Command Structure. The French armed forces were not always under the command of an American general, as they are today.
Let’s go back to what I was saying about Russia and China.
Their culture is fundamentally different from the Anglo-Saxon culture. The Chinese, for example, explain that they do not want to compete with the United States. They are not interested in that! They are not competing!
The Chinese say: "We want a relationship in which everyone wins (“win win”).”
It does not involve commercial competition, nor does it mean that each side, when signing a contract, will have a vested interest in that contract. Nothing of the sort! It is in reference to Chinese history.
China is, above all, a country with a gigantic population ... gigantic! The emperor of China was not in a position to know what were the concerns of certain groups of individuals at the opposite end of the country and left the administration of the territory in the hands of regional governors.
This is how it still works in China! The government in Beijing is oblivious to what is happening in the different regions. There is considerable decentralization. No country is more decentralized than China!
But when the emperor issued a decree, he had to make sure that each of the regional governors would grasp the importance of what was at stake. Because if the governor considered that it was not relevant to his province, he would stop paying attention to other decrees, thus failing to recognize the authority of the emperor. Therefore, when the emperor decreed something which could not be applied in one or more provinces, he would grant something extra to the governor of that province so that he would continue to respect the imperial authority.
I am explaining all this because what Russia and China want to create is a multipolar world, a world where there is no power that decides for the others, but where each power decides for itself.
And what Washington wants to do is, on the contrary, preserve the predominance of the United States over the world so that it alone can decide and no one else.
What is the United States doing in the midst of a conflict of its own making in Ukraine?
It is dividing the world in two. It is ejecting Russia from all intergovernmental organizations. It will start with the World Trade Organization [WTO] and end with the United Nations Organization [UN]. Of course, the UN statutes do not allow this, but the United States does not care and will try through thick and thin to achieve its goal.
That process began by explaining that trade with Russia had to end. Stopping trade with Russia! For example, [French car manufacturer] Renault has just decided to shut its factory in Moscow.
But Renault had already closed down its factories in Iran, when it was pressured to do so, and it was an economic catastrophe, an economic catastrophe for Renault. But the United States couldn’t care less! What it wants is for the European Union to undergo an economic shock so that the European Union will be forced to accept US domination.
Paul Wolfowitz had explained it very clearly 30 years ago, in 1991. That “Straussian” [disciple of the philosopher Leo Strauss], who later became the Pentagon’s number two official, explained that the true enemy of the United States – at that time Russia and China posed no real threat – was the European Union and that the European Union had to be prevented from becoming politically and economically independent.
Over time, the European Union developed economically a little, but not much, while Russia and China expanded exponentially. So the United States now wants to erase the very existence of Russia – and very soon that of China – from our field of consciousness and downgrade the European Union.
Just look at the consequences of all the economic and financial sanctions already adopted! They are not “against Russia”. They are directed against the European Union.
The Moscow Stock Exchange closed on 25 February – the day following Russia’s intervention in Ukraine. It reopened yesterday, 24 March, and so now we know how the Russian economy has reacted to these sanctions. What can be seen is that all foreign service activities collapsed, especially all Russian international banks.
But production activities in Russia, on the contrary, developed!
In other words, yesterday the Moscow Stock Exchange did not collapse. On the contrary! It was up by 4.5% [1]. That is no small thing!
The United States will not be satisfied with excluding Russia from international organizations. What it wants is to delete her from our minds!
Notice. They expelled all the oligarchs who were staying on the French Riviera. What relationship did they have with Vladimir Putin, who hates them all? None! But they don’t want any Russian patrons on the beaches in the south of France. That’s all!
I am not defending those people. They don’t interest me in the least. But they are unconnected with what is happening. What they are doing to them is illegitimate.
And it will not stop there. Then will come the suppression of all references to Russian culture in the West. Note that they are already banning Russian orchestra conductors … who had no ties whatsoever with the government! And might even be against what Vladimir Putin is doing! But that does not matter! And they are prevented from giving concerts.
Leading universities in the United States have recently prohibited the study of Solzhenitsyn, [Russian writer] who was hailed as a hero against the Soviet Union. The same applies to the work of Dostoevsky, a writer of the Tsarist era!
An exclusively Western, new world order is being established. Above all, don’t be taken in!
We have to remain human beings. We have to remain friends with the Russians and the Chinese.
Don’t think that the Chinese are going to stand for it. They know very well that this begins with Russia now but that they will be next.
Yesterday, at NATO, the request was made for Russia to be excluded from the WTO, the International Trade Organization. But already two days earlier, China had put its foot down, saying that nothing could legitimize such a measure.
The Chinese know that they themselves will be the target of Western imperialism after the Russians. History has already taught them the lesson and they will not allow that to happen again.
So keep all the friends that you may have in Russia and China.
See you soon.
Question: There is a feeling that the West is very annoyed by the appearance of the Russian Sputnik V vaccine. At first, they were very aggressive and wouldn’t let it go. When I talked with Minister of Trade and Industry Dmitry Manturov, he called it “the vaccine war.” Now the opinion has changed. Is this about the quality of the vaccine or is politics involved in this?
Sergey Lavrov: I think it is possible to use the logic of the Russian proverb that can be translated into English as “love it so but mother says no.” Western experts know that the Sputnik V vaccine is definitely one of the best, if not the very best. Otherwise, there would not be such a stream of requests for it, which is growing geometrically.
On the other hand, they realise that the spread of Sputnik V and other Russian vaccines that will soon enter the international market, will enhance our authority and status in the world. They do not want this to happen. But they have come to realise that their first response was simply outrageous in the context of the facts and medical science. When President Vladimir Putin announced the development of the vaccine in August 2020, the offensive was completely undiplomatic. Their response just betrayed their irritation, you are perfectly right.
And now many countries (the Czech Republic and others) are saying they can’t wait for the certification of the vaccine by the European Medicines Agency. In Hungary, they believe they are ready to start vaccination and supplies are now underway. The number of requests from Europe is steadily on the rise. Just the other day, Prince Albert II of Monaco sent a request for the vaccine for the entire population of his principality.
After independent agencies published their scientific evaluations, the West had to admit that the vaccine was good. Yet, attempts to discredit it continue.
Just yesterday I read a somewhat ambiguous statement by President of France Emmanuel Macron. He put us and the Chinese into the category of those who are trying to gain advantages in the world arena at the expense of their medical achievements. The day before yesterday, President of the European Commission Ursula von der Leyen spoke with an emphatically negative connotation about the supplies of the Russian vaccines to foreign countries.
We must follow the correct position of principle, first voiced by President of Russia Vladimir Putin, notably, that we were the first to develop the vaccine, and we will continue to increase its production. This is not easy, we do not have enough capacities, and this is why we are negotiating with India, South Korea and other countries. At the same time, he said we are open to the broadest possible cooperation.
There is one more important point. When this issue was discussed at the UN the other day, Secretary-General Antonio Guterres urged the countries that have this vaccine or have the money to buy it, not to forget about the poor. In the meantime, attempts are being made to accuse us of trying to gain geopolitical favour by supplying it abroad. This is an obvious discrepancy. It is clear that the West is poorly prepared for this discussion.
Question: So, it’s about the same as when President Putin said at the Davos Forum that the world cannot continue creating an economy that will only benefit the “golden billion,” and we are actually accused of supplying the vaccine for the benefit of the “golden billion.” Still, are they talking about the vaccine like this just because it was made in Russia?
Sergey Lavrov: I don’t see any other reason, because no one even tried to conduct a medical or a scientific test. They just said right away that it was impossible just because it’s impossible, meaning that “no one can do this that quickly.” It was only in October 2020, when the West said they would be able to report on their achievements. President Putin announced in August that the Russian-made vaccine was ready for rollout.
Unfortunately, I often see that the response to everything we do, say or offer is, at best, questioned right off the bat. Usually, they say that “the Russians are playing their geopolitical games again.”
Question: EU High Representative for Foreign Affairs and Security Policy Josep Borrell, who was here recently and met with you, said that Russia is distancing itself from the West. At the same time, Presidential Press Secretary Dmitry Peskov said we are open to cooperation with Europe. You said we are ready to break up, but we are not breaking off our relations. What really stands in the way of normal relations between the EU and Russia?
Sergey Lavrov: A biased attitude, by and large. I worked with EU High Representative for Foreign Affairs and Security Policy Josep Borrell, a good colleague of mine, when he was Spanish Foreign Minister. Now many, in an attempt to give a controversial dimension to the High Representative’s visit to Russia, forget how it all began. In May 2019, Mr Borrell said: “Our old enemy, Russia, says again ‘here I am,’ and it is again a threat.” We then asked his protocol service to confirm what he said. We were told that it was a figure of speech and that he was misunderstood. However, this attitude shows.
We are seen as a stranger. In my interview with Vladimir Solovyov, replying to his question as to whether we are ready to break off with the EU, I gave an affirmative answer because there are no relations to talk about. As former US President Barack Obama once said (although he said it about the Russian economy), relations have been “torn to shreds.”
Indeed, the Partnership and Cooperation Agreement [between the EU and Russia] entered into force in 1997. It contained a number of declarative goals for moving towards common economic, humanitarian and cultural spaces. For many years, we used a mechanism of summits, which were held every six months in Russia and in the EU alternately. In fact, our entire Government held annual meetings with the European Commission to discuss the participants’ responsibilities in the context of over 20 sector-specific dialogues. We were building four common spaces and roadmaps for each of them. These were 100 percent substantive and specific projects. It was all destroyed, just like the Partnership and Cooperation Council, within which the Russian Foreign Minister and the High Representative of the EU for Foreign Affairs and Security Policy reviewed the entire range of relations. This disappeared long before the Ukraine crisis.
Many in our country are just waiting for a chance to pounce on the Russian Government’s foreign policy. We are being asked how we can say that we are ready to break off with the EU when it is our largest trade and economic partner. If we take the EU as a collective partner, it is our largest partner in terms of gross trade. For example, in 2013 (before the Ukraine events) Russia became a WTO member. From that moment, our trade relations were built on the principles advocated by that organisation rather than the EU’s principles. As a single trade bloc, the EU also participated in the WTO. We traded with member countries based on WTO guidelines. If you think the EU is a valuable trade and economic partner, here are some statistics for you: in 2013, the United States was the EU’s biggest trading partner with about $480 billion, followed by China with $428 billion and Russia with $417 billion. That is, these numbers are of the same order of magnitude. Where do we stand now? In 2019, EU’s trade with the United States stood at $750 billion, with China $650 billion, and with Russia at about $280 billion. In 2020, it was $218 billion, if counting with Great Britain, and $191 billion without it.
The reason? It’s the sanctions imposed by our “valued” and largest economic partner for reasons that have never relied on any facts whatsoever. At least, no facts have ever been presented to us. We understand Crimea. We understand Donbass as well. It’s just that the EU admitted its inability, or perhaps, unwillingness, to prevent the anti-constitutional coup with an open Russophobic slant and chose to turn things upside down. Brussels shifted the blame to us and imposed sanctions on Russia rather than the putschists, who, by and large, spat on the guarantees of the European Union, which signed the corresponding agreements, totally ignoring, as I said, the fact that the actions of the government, which they supported, were openly and violently anti-Russian.
Question: Without the events in Ukraine, would our relations with the West have sunk to where they are now?
Sergey Lavrov: It is difficult for me to talk about this. After all, later there were other events linked with the accusations of “the poisoning in Salisbury.” No facts were presented. We were not allowed to meet with our citizens. No evidence was offered. Everything was similar to what is happening now with the alleged poisoning of Alexey Navalny.
Question: It seems the West is looking for a pretext to spoil our relations.
Sergey Lavrov: They are looking but there are many pretexts: it’s always possible to use something as an excuse to put the relationship on the required track. But it’s not that they want to spoil relations. I don’t think this is their main goal. They want to bolster their self-esteem. Now they are starting to act like the US, revealing the mentality of an exclusive group of states. I quoted German Foreign Minister Heiko Maas. When asked why they continue discussing sanctions against Russia and what goals they had achieved by imposing sanctions, he replied that he didn’t believe sanctions should be used for any purpose. What matters is that they don’t leave any action by the Russian Federation unpunished.
The concealment of facts that could somehow confirm accusations against us started long before the crisis in Ukraine. We can recall 2007 – the poisoning of Alexander Litvinenko in the hospital. There was a coroner’s inquest. Later this trial was declared “public.” In George Orwell’s logic, in Britain this means a “secret trial” during which no inquisitorial procedures of the secret services may be presented. You know, these are system-wide problems.
I listed what we used to have in our relations with the European Union. Nothing is left now, not even sporadic contacts on some international issues. As regards the Iran nuclear programme, we are taking part in the work of the collective group of countries, which are trying to somehow put this programme back on track. This is not part of our relations with the EU proper. In the Middle East, we have a Quartet of mediators consisting of Russia, the US, the EU and the UN. In other words, this is multilateral cooperation rather than our relations with just the EU.
With regard to who is taking steps to prevent our relations from further decline, at least a little, we were thinking about that when Josep Borrell, High Representative of the EU for Foreign Affairs and Security Policy, was getting ready to visit Moscow. He suggested cooperating in healthcare and vaccines. We have already discussed this here. As a Brussels institution, the EU will hardly be allowed to contact Russian agencies or companies independently regarding the vaccines. We would sooner cooperate directly with the producers of AstraZeneca, as this is already taking place.
On the eve of Mr Borrell’s visit, we invited his experts to make a joint statement on the Middle East by the Foreign Minister of the Russian Federation and the EU High Representative for Foreign Affairs and Security Policy. Our positions are nearly identical on the matter and we thought it would be appropriate to urge the Quartet to resume its activities and call for direct Palestinian-Israeli talks, respect for the relevant UN resolutions, and so on.
We gave them a page and a half text that was easy to approve after the first reading. Several days prior to his arrival, we were told that “it did not work out.” I will reveal a secret because this is a blatant example. I asked Mr Borrell at the negotiating table: “What about this statement? Why didn’t it work out?” He started turning his head all around. It was clear from his reaction, and he confirmed this later, that nobody had even told him about it. These are the people that deal with what some of our liberals call “relations with the EU.”
Question: Concluding this theme, I’d like to say that as a man born in the USSR, I understand that during the Soviet-Western confrontation we had different ideologies, economies and so on. Later, I thought that everything was the same on both sides. They were for democracy and we were for democracy; they had a market economy and we had a market economy. So what are the differences? Why do we fail to find a common language to this day? I thought we found it in the 1990s? Why did we find it then?
Sergey Lavrov: We found it at that time because nobody in the Russian Federation disputed the answer to the question of who was ruling the show. President of Russia Vladimir Putin has talked about this many times. We decided that was it – the end of history. Francis Fukuyama announced that from now on liberal thought would rule the world. Now there are attempts to push this liberal thought to the fore again in a bid to gain international influence. But when it became clear that Russia did not want to live in the house of “a self-appointed boss,” all these complications began to emerge.
Initially, having become President, Vladimir Putin and his team tried to convey this message through diplomatic signals that educated and smart people would be bound to understand. But nobody listened. Then the explanations had to be made politely but openly in the Munich speech. All this started when this signal was not perceived (to be more precise, Russia was seen again as a “hoodlum” in the world arena and they were again going to teach it “good manners”). In any event, the West began its ideological preparations, for its current actions, at that time.
Question: Regarding the sanctions. Bloomberg posted a news item today that new sanctions against Russia are planned concerning the Nord Stream 2, however, they are not going to be tough but rather “soft.” On the other hand, they report that the Americans want to thwart the Nord Stream project but without irritating Germany. Where are we in this situation?
Sergey Lavrov: We are a country that completely complies with the contractual obligations undertaken by our companies that are part of the project, along with the EU companies that joined it. The current situation is largely due to a decision taken by what we call the European Union, a decision that proves beyond doubt what sort of alliance it is. A few years ago, when the Poles, and others sharing their attitude, attempted to impede the Nord Stream project, the Legal Service of the European Commission was asked for legal advice, official opinion. The service presented a document which stated in no uncertain terms that the investment project had been launched long before amendments were made to the EU’s gas directive, the Third Energy Package. That’s it. Period. This issue should be closed for any person who has respect for the law. But no, the European Commission took this opinion and launched its own quasi-legal procedure which resulted in the conclusion that the project had indeed been launched much earlier, yet it fell under this third energy package and the gas directive. That’s what kind of a partner we have in this “relationship.”
This is about how we can “pounce” on them and express readiness to break relations with them when they are our main economic partner – that’s what kind of a partner they are. Meanwhile, now Germany alone is fighting for the project.
And in fact, Joe Biden’s administration will not cancel anything which was done by Donald Trump except for leaving the World Health Organisation (WHO). The Democrats are returning there now.
The NATO defence ministers meeting has just ended. But there was no let-up in US demands to pay 2 percent of a country’s GDP for defence needs, i.e. for purchasing US weaponry. There was no backing off the demands on Europe regarding Nord Stream 2 – to stop participating in some matters that undermine European security. They see it better from across the ocean, right? This is about who is the boss. Europe also wants to run the house but it was taken down a peg. The situation around Nord Stream 2 is straightforward.
For now they are saying publicly that bargaining is underway and possible agreements between Washington and Berlin are being discussed, including that the Nord Stream 2 pipeline may be allowed to be completed and even start operating. However, if at the same time gas transiting via Ukraine is going to be falling, then Nord Stream 2 must be shut off. I cannot decide for Germany, however, it is obvious to me that this proposal is humiliating. As Russian President Vladimir Putin said at his meeting with parliamentary party leaders, this is yet further evidence that they want Russia to pay for their Ukraine geopolitical venture.
Question: Do we have to pay for this geopolitical project? Why do they think we have to pay for it?
Sergey Lavrov: Because they don’t feel like lashing out on it. They need the Ukrainian regime for the sole purpose of constantly irritating Russia and finding new reasons to support their Russophobic policy. They want to weaken anything around us – Belarus, Central Asia, and now also the South Caucasus, as they got nervous after Russian President Vladimir Putin’s successful mediation mission between Armenia and Azerbaijan: why was this done without them? They are now trying to infiltrate this region and step up their activities there. All of that has nothing to do with the Cold War-era ideology of a showdown between the two systems you talked about a few minutes ago. It has to do with the fact that our Western partners are unwilling, unprepared and unable to speak on an equal footing, whether with Russia, China, or whoever. They need to create a system where they will be the boss regardless. This is why they are taking an increasing dislike to the United Nations since they cannot have total control of it.
Question: Do you see the EU as a monolith, or as something more loose, with certain processes unfolding inside and some countries, no matter what, starting to talk about their willingness to be friends with Russia? In the case of the sanctions, the key figures behind them are, strange as it may seem, the Baltic States, which do not play a prominent role in the EU but, for some reason, everyone is listening to them.
Sergy Lavrov: It sounds inappropriate to refer to the EU as a monolith a mere couple of months after Brexit. This “monolith” is not the same as before. If you mean a monolith in a figurative sense, my answer is no. Quite a few countries are maintaining relations with Russia. The visit of Josep Borrell was the first trip by an EU official of this level to Russia in three years. In the same three years, about two dozen ministers from European Union member countries have visited Russia. We are having a great dialogue, without wasting too much time on confrontation and moralising. Indeed, all of them do have their assignments – a couple of sheets of paper from which they read a script approved by the “party committee” in Brussels.
Question: Do you mean they bring a notebook with instructions with them?
Sergey Lavrov: Certainly. They do not dare to veer off course. This, for example, goes for Alexey Navalny, or the Skripals as in the previous case, or human rights. Now scientist Yury Dmitriyev from Karelia is in the spotlight. They flatly refuse to accept evidence of his involvement in crimes, like pedophilia. They read from their notebook and I would adduce my arguments to the contrary and describe our vision of this or that situation and wonder why we cannot obtain evidence on the Navalny case or the Skripal case. In response they simply read again from their notebook. Apart from this discipline induced by the bloc member states’ solidarity, we discuss things normally. Yes, the EU sets the terms on which [its member countries] participate in the World Trade Organisation (WTO), while we are trading with these countries in the WTO on the terms that were agreed on for Russia to join this organisation. But the EU has nothing to do with this cooperation in trade and investment activity, except for its attempts to restrict trade and economic ties with the sanctions.
You mentioned the Baltic States. Indeed, they run the show in this respect to a great extent. I have talked to your colleagues about this on more than one occasion. When in 2004 there were hectic activities to drag them into the EU, Russia and Brussels maintained a very frank dialogue. The President of the European Commission at the time was Romano Prodi. In 2005, the objective was set to move to visa-free travel.
Question: Nobody has any memories of this today.
Sergey Lavrov: We remember this when we reply to those who ask how we dare say that we are ready to break relations with the EU. You mentioned the Baltic States. We had long been negotiating an updated version of the Partnership and Cooperation Agreement between Russia and the EU, which the EU terminated in 2014. It was expected to go a bit beyond the boundaries of the WTO rules and allow us to negotiate additional trade preferences. At one time there was an objective to establish a free trade zone, but this has long since fallen into oblivion. However, there were plans to update the agreement in order to liberalise trade even more, in addition to the WTO rules. In 2014, they ceased to exist – another example of breaking down our relations.
A visa-free travel agreement was also finalised back in 2013. We had met all of the EU requirements: we agreed that only people with biometric passports would be eligible for visa-free travel and that those who violated EU entry rules or any other EU rules while in an EU country during a visa-free period would be subject to readmission. We signed the relevant agreement. Everything they asked for, and that suited us, was done. Later, when it was time to sign the agreement and then ratify it, the EU said: “Let’s wait.” It did not take us long to learn why they had said this, all the more so as they did not try to conceal their motives. This Brussels team decided that it was politically incorrect to approve a visa-free travel agreement with Russia prior to offering it to Georgia, Ukraine and Moldova.
Question: In other words, Russia was made dependent on other countries?
Sergey Lavrov: It sure was, at the Baltic States’ initiative. This is also important for understanding the nature of our relations. This is an attitude from people who decided that they were European, which is not at all the case. Russia sees Europe in all its diversity. If the “party committee” in Brussels does not like it, we cannot force them to.
Question: Europe stretches at least to the Urals.
Sergey Lavrov: Correct. In 2009, when Jose Manuel Barroso was President of the European Commission, we held a Russia-EU summit in Khabarovsk. Our European colleagues arrived later in the day. We went out for a walk along the embankment. We were showing them around the city and Mr Barroso said: “It’s amazing. It took us 13 hours to get here from Brussels, and it’s still Europe.” This is the key message behind the slogan “Europe from the Atlantic to the Pacific.”
Question: I’m going to ask you about one other country, Belarus. There will be a presidential summit on February 22. President Lukashenko will come to Russia. Recently, Foreign Minister of Belarus Vladimir Makei gave an interview to the RBC media holding and mentioned Belarus’ multi-directional foreign policy. Do you think we have managed to work well with Minsk on integration? What should we expect from these talks?
Sergey Lavrov: The term “multi-directional” should not be used as a profanity. Most normal states want it. Russia, too, has used a multi-directional approach as the basis of its foreign policy since 2002. In our understanding, a multi-directional approach is possible only if based of equality, respect and a balance of interests, as well as mutual benefit. This is the only way it can work.
First, they threaten us with sanctions, and then the same people are saying that we “had it coming” and impose unilateral restrictions on us, and then say that we are “bad” because “we are looking to the East.” Everything has been turned upside down.
Russia is a Eurasian country. We have close contacts with Europe, which have been cultivated for centuries, before anyone even thought of a European Union, and the Europeans fought and competed against each other. By the way, we often helped them achieve peace and fair outcomes in wars.
Question: We even saved the monarchies?
Sergey Lavrov: Yes, and they are aware of it. The republic in the United States, too, to a certain extent.
However, our European neighbours have severed almost all of our ties and left only sporadic contacts on international crises that are of interest to the EU in order to keep a profile on the international arena. In many ways, the EU is driven by a desire to be seen as an important operator in Syrian and other matters. If we are not welcome here, we will simply continue to work with our other neighbours who are not prone to whims like that.
Objectively, our trade with the EU is almost half of what it was in 2013. Our trade with China has doubled over the same period.
Question: Back to Minsk. What can we expect from talks between President Putin and President Lukashenko on February 22?
Sergey Lavrov: There are some who want to interpret Minsk’s words about the multi-directional nature of its foreign policy as proof of its “unreliability” as a partner and ally. I do not think so.
In the Council of Europe, of which Belarus is not a member yet, we advocate the CoE establishing relations with Minsk. We supported the accession of Minsk to a number of Council of Europe conventions. We have always been in favour of Belarus enjoying normal relations with its western neighbours. I’m not sure what the CoE will do next. Russophobia has swept over most of the EU countries, and the most “violent” ones are in charge of the agenda.
I read the remarks by President Lukashenko (not all his interviews, but they were cited) to the effect that he sees no obstacles to deepening integration. Progress will depend on how President Vladimir Putin and President Lukashenko agree on things.
There are two more days to go before the talks. I don’t think we should be speculating on the outcome of the summit. We will know everything soon.
Question: Recently, US President Joseph Biden said the United States will no longer be “rolling over in the face of Russia’s aggressive actions” (ostensibly, Donald Trump did this). How can we build our relations now? Are there subjects we can discuss with Washington? Are they ready to talk with us?
Sergey Lavrov: These comments on who is rolling over or will be rolling over in the face of someone’s actions illustrate a very deep split in US society. It reached a level of personal enmity that is aggressive and contrary to American political culture. The politicians did not particularly mince their words during previous presidential campaigns or prior to elections to Congress, but I don’t remember anything comparable to what is being said now.
Our liberal media promote a tough pro-Western line. In looking for objects of criticism in Russia, they are infringing on the threshold of decency and getting personal. They are very crude, and behave not like journalists but like inveterate propagandists, accusing others of propaganda.
The fact that the New Start Treaty was extended in time is a very positive step. This shouldn’t be overrated, but it shouldn’t be underrated, either. In his election speeches Joseph Biden mentioned his willingness to extend it, but these were election speeches after all. His promise could be interpreted differently later, but he extended this important document for five years without any conditions, like we suggested. If this had not happened, there would not have been a single instrument of international law, not only in Russian-US relations but in the entire range of multilateral ties, that contained any restrictions in the sphere of disarmament, arms control and nuclear weapons non-proliferation.
It is very important that just a few days prior to February 5, 2021, the date the treaty was extended for five years, President of Russia Vladimir Putin and US President Joseph Biden reaffirmed their intention to promote talks on strategic stability in these new conditions, in their first telephone conversation after the US presidential election. The situation has changed substantially since 2010: We and the Americans have acquired new weapons some of which are covered by the treaty. We announced this last year. We said that they must be taken into account. Some other weapons are not covered by the treaty – they are basically very different because of their physical characteristics.
Question: Are you talking about hypersonic weapons?
Sergey Lavrov: Yes, the United States also has such weapons. Hypersonic weapons are partly covered by the New START Treaty, if these are ballistic missiles.
The New START Treaty already covers some weapons systems, so we now have to include these weapons systems in the Treaty for the next five years and see how all this will be verified. But it does not cover some weapons.
The United States has developed a new system called the Prompt Global Strike (PGS). By the way, this system implies a non-nuclear strike. We have suggested negotiating all issues without exception that have an impact on strategic stability and the legitimate interests of the contracting parties.
Question: Did they agree to this? Are they ready?
Sergey Lavrov: In October 2020, we submitted draft joint understandings to the Trump administration. This rough outline shows how we can sit down and start negotiating the agenda. We have received no reply from them. Instead of addressing this matter, Marshall Billingslea, the Special Presidential Envoy for Arms Control, mostly made vocal statements that the United States was all for it but that the Russians did not want to do this.
When I spoke with US Secretary of State Antony Blinken, I reminded him that Russia had submitted its proposals to the Trump administration, which dealt with this matter and many other issues, including cybersecurity and concerns over interference in each other’s domestic affairs. We would like to get back to them, and to hear the Biden administration’s opinions in this regard. We realise that they now need some time to settle down in the White House and the Department of State. I hope that this will not take too long.
There are still some questions on disarmament, for example, the lineup of participants in the disarmament process. The US position on China, approved by Donald Trump, remains unchanged; the same concerns a number of other matters.
Regarding multilateral talks, first of all, this should not annul Russian-US agreements because we have several times more nuclear weapons than other nuclear countries. Second, if we make this a multilateral process, then all prospective participants, primarily the five nuclear powers, should reach a voluntary agreement. We will never try to persuade China. We respect the position of Beijing, which either wants to catch up with us or proposes that we first reduce our arsenals to China’s levels and then start on the talks. All circumstances considered, if this is a multilateral process, then we will get nowhere without the United Kingdom and France. The Trump administration insisted that China should take part and at the same time said about its allies that they were the good guys, literally. This sounds funny. Apart from the complicated and lengthy disarmament process, we do not have so many promising spheres where we can cooperate constructively.
Question: Does this mean that their vision of the issue is entirely different or that they are reluctant to negotiate?
Sergey Lavrov: They think that they are the boss, and this mentality is still here and it determines the perception of their enemies. So far, they have not designated China as an enemy, but they have called us an enemy a couple of times. Democrats have an additional motivation for expanding this policy. Their position is that, supposedly unlike with Donald Trump, they will be “no Russian tail wagging the dog.”
Question: Don’t you think that Democrats have come to power with the intention of taking revenge against Russia, and that they will implement Donald Trump’s anti-Russia plans that he failed to accomplish in four years.
Sergey Lavrov: They made such statements during the election campaign. Joe Biden and his supporters said openly that the Trump administration had gone soft, that it was constantly making advances and working for the Russian intelligence. Donald Trump said that he was conducting the toughest policy with regard to Russia. He said that he liked Vladimir Putin, but he introduced more sanctions than all of his predecessors taken together.
We are also witnessing a cowboy-style showdown there. But this is normal for US politics, especially today. Disagreements between liberals who considered liberalism an irreversible trend have become aggravated to the greatest possible extent. Donald Trump, who did not like liberal principles and approaches, suddenly took over. He tried to think more about the basic interests of the American founders, the people who moved there (and it has always been a nation of immigrants), and who accepted its laws. So, the big question is whether people should remain loyal to the country that has accepted them, or do they want to erode its principles?
Question: Should they try to fit in?
Sergey Lavrov: Yes, and they want to be the boss. Everything boils down to this once again.
Question: Karabakh, the subject of that. Fortunately, the war is over and a peace agreement has been inked. We covered extensively the role Russia and Azerbaijan played. I have a question to do with Turkey. I was in Azerbaijan during the war and heard many people say that the Azerbaijanis are supportive of the Great Turan idea (a state that covered the territory from Turkey to Central Asia). Is Moscow concerned by Turkey becoming a stronger state?
Sergey Lavrov: This opinion is entertained by a portion of the society. I’m not going to give a percentage of how many people support this idea. I’m not sure many of those who informed you about this really know what “Great Turan” is all about.
The relations between Turkic-speaking peoples have become an integral part of cooperation between Turkey and the corresponding countries, including Azerbaijan and a number of Central Asian states.
There is the Cooperation Council of the Turkic-Speaking States, in which we participate as observers. A number of our republics are interested in contacts with it and are promoting their specific projects.
There is TURKSOY ̵ the International Organisation of Turkic Culture. There’s also the Parliamentary Assembly of Turkic-Speaking Countries. All of them have been functioning for a long time now. They draft their own plans and hold functions. Their cooperation is mainly based on cultural, linguistic and educational traditions.
Speaking about the Great Turan as a supranational entity in a historical sense, I don’t think that this is what Turkey is after. I don’t see how former Soviet and now independent countries can be supportive of this idea in any form. On the contrary, their foreign policies and practices focus on strengthening their national states.
Turkey has its interests which include its fellow tribesmen who speak the same language. We also want the Russian World to communicate. We have created an extensive network of organisations of our compatriots living abroad; we are opening Russian World centres at universities in different countries with purely linguistic, educational and scientific goals.
The Centre for the Russian Language and Culture created by the Russkiy Mir Foundation was recently closed in Krakow. This is an obvious step for Poland, as well as for the Baltic States, which are fighting everything that is Russian. Ukraine followed in their footsteps and shut down several media outlets and imposed a language ban. We are well aware of all this. We will keep raising this matter at the OSCE, the Council of Europe and the corresponding UN agencies. One cannot pretend that this comes with the “growth” and the “coming of age” of the Ukrainian nation, which, as they say, is an “ill-fated” one. The Ukrainians claim that they are the descendants of Alexander the Great. In that case, they should be responsible for the orders they introduce. The EU, and Germany and France as the Normandy format participants, avoid performing their duties when it comes to “educating” Ukraine in terms of making it comply with the Minsk agreements, and this has become a chronic behaviour pattern which does not reflect well on Germany or France.
Question: It was announced that Ukraine was recognised an unfriendly state. How will this affect relations between us?
Sergey Lavrov: This is just a descriptive attribute. What's friendly about it? Russian schools are being closed, customers and shop assistants are not allowed to speak their native language, and the Nazis are burning Russian flags.
Question: This is reminiscent of the Baltic States 20 to 30 years ago.
Sergey Lavrov: Back when the Baltic States were about to be admitted to the EU, we asked the Brussels bureaucrats, the Eurogrands, whether they were sure they were doing the right thing. The problems that are at odds with the membership criteria persist, including non-observance of the rights of the Russian-speaking minorities in Latvia and Estonia. We were told that the Baltic States are phobic of Russia (war, the so-called occupation, etc.), the EU will bring it into its fold, it will calm down and ethnic minorities will be happy and contented. Things turned out the other way round. The Russians were not granted any rights, and statelessness is still there.
Question: Let’s go back to Turkey: Ankara’s stronger position, its active role in the Nagorno-Karabakh war, President Erdogan’s visit to Northern Cyprus (which a Turkish leader has not done for quite a while). What does Moscow think about it?
Sergey Lavrov: As far as Turkey and Northern Cyprus are concerned, we see it as Ankara’s relations with its “fellow countrymen.” I have not heard about Turkey refusing to honour the UN obligations accepted by the conflicting parties. These obligations include seeking a mutually acceptable solution and creating a bicommunal bizonal federation. There is a discussion of whether the federation will be strong or weak. But there is no disagreement about the fact that it must be one state. Although not so very long ago, it was the common opinion that the entire project would fail and they would have to create two states. We understand that Ankara is interested in Cypriot Turks living in equality and their rights being observed. We support the idea that the same motives with which Turkey explains its actions in the Eastern Mediterranean, including with respect to hydrocarbons, should determine its dialogue with Greece and Turkey.
On February 17, 2021, I spoke with Greek Foreign Minister Nikos Dendias who told me that on January 25, 2021, he had had a probing conversation with Turkish Foreign Minister Mevlut Cavusoglu. They did not iron out all issues. But it is good news that a dialogue was established. They agreed to continue it. On February 18, 2021, I spoke with Mevlut Cavusoglu. We continued sharing opinions following the telephone conversations between President Putin and President Erdogan on Syria, Libya, Nagorno-Karabakh and our bilateral relations. New power units of a nuclear power station are under construction; the TurkStream project is ongoing. There is much common ground between our countries when it comes to energy.
In October 2019, the first Russia-Africa Summit in history was held in Sochi. A record number of heads of state and heads of government attended. In the course of the preparations for the summit, we reviewed the development of our relations with African countries and the current state of affairs, including from the perspective of expanding our presence on the continent which political scientists consider to be the most promising in the long term. We reviewed other countries’ presence in Africa. Since 2002, the number of Turkish embassies in Africa has increased from 12 to 42. Turkey’s trade with the region is estimated at around 20 billion dollars a year and Russia’s trade is around 15 billion dollars. This is to say that Turkey has an eye for potential.
Question: Perhaps Turkey is disappointed with the EU because nobody accepted it?
Sergey Lavrov: I believe it could partially be the case. In its contacts with the EU, Ankara continues to insist that the EU promised it accession. Turkey is spreading its wings and gaining weight despite the existing economic problems at home. Turkey mainly goes on by accumulating its national debt but this model is widely common around the world.
Question: 2020 is the year of the pandemic. During such times, countries should join forces and help each other. Do you think that this was the case? Or did the world fail to put aside disagreements and rally together even when it came to the COVID-19 infection?
Sergey Lavrov: Now this conversation is back to square one. There are no ideologies anymore. But this ideology-based, politicised perception of the Russian vaccine was not a very good signal. The Sputnik V vaccine was announced in August 2020, many months after the G20 summit (March 2020) where Vladimir Putin strongly advocated cooperation in vaccine production. Even then, we were ready to create joint scientific teams. But Western countries and their companies, unwilling to help competitors, did not respond to that proposal. So much for unification in this purely medical field.
There is also the humanitarian sphere. UN Secretary-General Antonio Guterres, and UN High Commissioner for Human Rights Michelle Bachelet made calls during the pandemic to suspend all unilateral sanctions in fields directly affecting food, the supply of medicine and medical equipment, in order to alleviate the suffering of the population in countries that were under unilateral sanctions (regardless of their reasons). There was no reaction from the initiators of those sanctions (primarily the US and the EU). Also, there was no response to President Vladimir Putin’s proposal, at the G20 summit, to create ‘green corridors’ for the period of the pandemic, to move goods under the most relaxed rules – without tax, duties, tariffs, delays, or special customs inspections.
We are all in the same boat, and it’s not so big. Some forecasts say this situation will continue for a long time, and the coronavirus will be a seasonal infection, and it is not at all the same as the flu or other diseases, so we will have to use precautions permanently, use PPE. This realisation should somehow prod countries to more open cooperation, especially those that up until recently had some doubts.
True, there have been some good shifts. One of them is the United States’ return to the World Health Organisation (WHO). Some hotheads in Washington believe that, now that they have returned, they will make others do their bidding. There are fewer than 50 Chinese people in the WHO Secretariat, 25 Russians, over 200 Americans, and more than 2,000 NATO representatives. The past US administration said China was manipulating the WHO. That is not true. Otherwise, we are admitting the complete helplessness of 2,000 NATO members who should be the majority in the WHO Secretariat.
Nevertheless, there are some positive results though. This problem has been recently considered at the UN General Assembly and the Security Council. It is important now to focus on equitable collaboration within the WHO. Besides the attempts at carrying out “soft coups” and establishing their own rules in the organisation, hardly based on consensus, an idea has been suggested to move the main decision-making on global health policies outside the universal organisation. We have been pointing out this tendency for some time now – the one to replace international law with a rules-based world order. As it turns out in reality, those rules boil down to working out all decisions in a circle of those who agree with you rather than in a group with universal representation where you have to argue your case and search for balances and compromises. And then you just present the decision as ‘the ultimate truth’ and demand that everyone respect it.
This underlies the Franco-German initiative for a new multilateralism and some limited partnerships in the West. For example, Paris has launched an International Partnership Against Impunity for the Use of Chemical Weapons. Under this non-universal, non-UN partnership, the EU creates the so-called ‘horizontal’ regime of sanctions to be imposed on anyone that France-initiated partnership points at. A similar sanctions regime is being created for cybersecurity. Instead of any open-ended discussion, the French are promoting some partnership to defend freedom in cyberspace. This is another example of rules on which ‘order’ will be based.
There are attempts to start similar groups outside the WHO. But people's health is not a field where one can play geopolitics. Unless there is a conspiracy behind this to reduce the population of the Earth. Many are now starting to develop such theories and concepts.
On December 1, 2020, the ex-Pfizer head of respiratory research Dr. Michael Yeadon and the lung specialist and former head of the public health department Dr. Wolfgang Wodarg filed an application with the EMA, the European Medicine Agency responsible for EU-wide drug approval, for the immediate suspension of all SARS CoV 2 vaccine studies, in particular the BioNtech/Pfizer study on BNT162b (EudraCT number 2020-002641-42).
Dr. Wodarg and Dr. Yeadon demand that the studies – for the protection of the life and health of the volunteers – should not be continued until a study design is available that is suitable to address the significant safety concerns expressed by an increasing number of renowned scientists against the vaccine and the study design.
On the one hand, the petitioners demand that, due to the known lack of accuracy of the PCR test in a serious study, a so-called Sanger sequencing must be used. This is the only way to make reliable statements on the effectiveness of a vaccine against Covid-19. On the basis of the many different PCR tests of highly varying quality, neither the risk of disease nor a possible vaccine benefit can be determined with the necessary certainty, which is why testing the vaccine on humans is unethical per se.
Furthermore, they demand that it must be excluded, e.g. by means of animal experiments, that risks already known from previous studies, which partly originate from the nature of the corona viruses, can be realized. The concerns are directed in particular to the following points:
- The formation of so-called “non-neutralizing antibodies” can lead to an exaggerated immune reaction, especially when the test person is confronted with the real, “wild” virus after vaccination. This so-called antibody-dependent amplification, ADE, has long been known from experiments with corona vaccines in cats, for example. In the course of these studies all cats that initially tolerated the vaccination well died after catching the wild virus.
- The vaccinations are expected to produce antibodies against spike proteins of SARS-CoV-2. However, spike proteins also contain syncytin-homologous proteins, which are essential for the formation of the placenta in mammals such as humans. It must be absolutely ruled out that a vaccine against SARS-CoV-2 could trigger an immune reaction against syncytin-1, as otherwise infertility of indefinite duration could result in vaccinated women.
- The mRNA vaccines from BioNTech/Pfizer contain polyethylene glycol (PEG). 70% of people develop antibodies against this substance – this means that many people can develop allergic, potentially fatal reactions to the vaccination.
- The much too short duration of the study does not allow a realistic estimation of the late effects. As in the narcolepsy cases after the swine flu vaccination, millions of healthy people would be exposed to an unacceptable risk if an emergency approval were to be granted and the possibility of observing the late effects of the vaccination were to follow. Nevertheless, BioNTech/Pfizer apparently submitted an application for emergency approval on December 1, 2020.
CALL FOR HELP: Dr. Wodarg and Dr. Yeadon ask as many EU citizens as possible to co-sign their petition by sending the [e-mail prepared here to the EMA](http://press@ema.europa.eu?cc=petitionEMA@corona-ausschuss.com&bcc=stefano.marino@ema.europa.eu&subject=Co-signing the petition of Dr. Wodarg, Germany, and Dr. Yeadon, UK, (submitted on 1-Dec-2020)&body=Dear Sir or Madam, I am hereby co-signing the petition of Dr. Wodarg and Dr. Yeadon to support their urgent request to stay the Phase III clinical trial(s) of BNT162b (EudraCT Number 2020-002641-42) and other clinical trials. The full text of the petition of Dr. Wodarg and Dr. Yeadon can be found here: https://2020news.de/wp-content/uploads/2020/12/Wodarg_Yeadon_EMA_Petition_Pfizer_Trial_FINAL_01DEC2020_EN_unsigned_with_Exhibits.pdf I hereby respectfully request that EMA act on the petition of Dr. Wodarg and Dr. Yeadon immediately. Regards).
Nachtrag: Wegen teilweiser Überlastung der Server hier der Inhalt der E-Mail und die Kontaktadressen zum späteren Selbst-Versenden:
An: press@ema.europa.eu; petitionEMA@corona-ausschuss.com
Betreff: Co-signing the petition of Dr. Wodarg, Germany, and Dr. Yeadon, UK (submitted on 1-Dec-2020)
Dear Sir or Madam, I am hereby co-signing the petition of Dr. Wodarg and Dr. Yeadon to support their urgent request to stay the Phase III clinical trial(s) of BNT162b (EudraCT Number 2020-002641-42) and other clinical trials. The full text of the petition of Dr. Wodarg and Dr. Yeadon can be found here: https://2020news.de/wp-content/uploads/2020/12/Wodarg\_Yeadon\_EMA\_Petition\_Pfizer\_Trial\_FINAL\_01DEC2020\_EN\_unsigned\_with\_Exhibits.pdf I hereby respectfully request that EMA act on the petition of Dr. Wodarg and Dr. Yeadon immediately. Regards