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Putin-Trump summit finally on the way?

Moscow hints that a summit in Vienna is under discussion as rumours of a July summit persist

Alexander Mercouris

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In the aftermath of the successful Kim-Trump summit in Singapore there is again speculation about the prospects of a possible summit meeting between the US and Russian Presidents, with Vienna the likely host city.

The clearest discussion of these rumours and of what such a summit might look like and what it might achieve has been provided by Dr. Gilbert Doctorow.

On the indications that a summit is in the air Dr. Doctorow has this to say

I say that a summit in the near future look likely, in part because that is suggested in several articles appearing recently in the Washington Post, in The Wall Street Journal, in The New Yorkermaking reference to unidentified contacts in the administration.  In part, I base it on less obvious clues that speak to the vestigial Kremlinologist in me. One is the repeat broadcast this morning on Vesti/Rossiya-1 of an interview with Austrian Chancellor Sebastian Kurz that took place just before Vladimir Putin’s state visit on 6 June. Vienna has been mentioned as a possible venue for any such summit, and the interview makes plain why the country would be so very suitable as the site of a summit – namely Kurz’s populist and Euro-skeptic policies that are so highly appreciated by both Donald Trump and Vladimir Putin.

The Return of Henry Kissinger

Dr. Doctorow suggests that Henry Kissinger, Richard Nixon’s former National Security Adviser who is now in Russia ostensibly to watch the World Cup, may be playing a crucial go-between role in setting up the summit.

One additional clue is that Henry Kissinger is said to be in Moscow right now, and Henry has been an adviser to Trump on policy to Russia ever since the 2016 campaign. He has been the voice urging an accommodation with Russia for a variety of geopolitical strategic reasons.

To which I would add that Henry Kissinger is not only known to be an adviser to Donald Trump; he is also known to have good contacts with senior officials in Moscow including Sergey Ivanov, Vladimir Putin’s former Chief of Staff, who continues to be a member of Russia’s Security Council (Russia’s top policy making body) and who has in the past spoken of Kissinger in effusive terms.

A get to know you summit; not a detailed negotiation

As to what a summit between Trump and Putin might look like, Dr. Doctorow suggests that the Kim-Trump summit may provide a possible precedent.

The Kim-Trump summit took place with only minimal preparation and produced only a bland one page statement of intent.  However it has nonetheless managed to transform the international atmosphere.  Dr. Doctorow suggests a Trump-Putin summit would be similar

All accounts of the President’s decision to seek a meeting with Putin in July indicate that he is doing this over the objections of every one of his advisers.  Put another way, he would not appear to have many resources at hand at the moment for a solid preparation of the planned summit.

Normally, the Russians would not accept a meeting at the top without such preparation. However, in light of what just happened in the Singapore summit with North Korean leader Kim Jong-Un, which also had close to no preparation and ended in a one-page, 4-point statement of intentions which was swallowed by the American establishment and media upon Trump’s return home, the Kremlin may well have decided that this is the only way forward with an American President under siege from his own administration not to mention the federal bureaucracy.

I can envision a Letter of Intent signed by Trump and Putin in Vienna that has three points. Two are the points sketched above. The third could be a quite unexceptional statement on Ukraine that would conceal a significant change in US policy given in verbal assurances that would change the dynamics in US-Russian relations. Namely the sides could agree to take measures to ensure that both Kiev and the breakaway republics begin at once to honor the Minsk Accords.  Behind this anodyne formula would be a US commitment to force the hand of Poroshenko or to have him removed and replaced by someone who will do what is necessary to achieve a political settlement with Donbass. In return, the Russians would ensure quick deployment of a UN or other reputable peace keeping force in the Donbass at the lines of separation of forces and at the Russian Ukrainian border.

The Letter of Intent would be a start, would give a new direction to the bilateral relations and would open the way to creation of working groups and restoration of lines of communication that Barack Obama foolishly severed following the tainted advice of his Neocon staff at the State Department.

The other three items which Dr. Doctorow envisages might be in the summit communique other than Ukraine relate to arms control and Syria.

On the subject of Syria Dr. Doctorow envisages an agreement along these lines

There have been rumors that the United States is seeking a de facto if not de jure partition of Syria whereby its control over the Kurdish territory east of the Euphrates River is recognized by the Russians. The logic for this U.S. interest may well be related more to containing Iran than to depriving the Assad government of territory, population and hydrocarbon resources.  Figuratively the American zone would be a bulwark against Iranian infiltration of Syria and Iran’s enjoying unchallenged military access to the Israeli border.  Considering the obvious understandings between Netanyahu and Putin over Iranian operations on Syrian soil, it is quite possible that Russia would agree to the US proposal as part of a bigger negotiation over improving bilateral relations.

On the subject of arms control, Dr. Doctorow puts it this way

Restarting arms control negotiations should take in more than propping up existing agreements that are either coming to term or are being systematically violated (agreement on short to intermediate range missiles). From Trump’s remarks on the new arms race, it would be entirely logical for him now to accept Vladimir Putin’s invitation to discuss the new technology strategic weapons systems such as Russia is now rolling out, as well as cyber warfare. They would also reopen talks on the US missile defense installations on land in Poland and Romania and at sea off the Russian coasts which gave rise to Russia’s development of what are called invincible offensive systems in response.

Is any of this likely to be true?  Is a Trump-Putin summit of the sort envisaged by Dr. Doctorow really in the works?

Urgent need for a Trump-Putin summit

The first thing to say about such a summit is that it is sorely needed and that Trump and Putin should not be deterred from holding it simply because there has been only minimal preparation for it.

As a result of the phoney Russiagate scandal, whose absurdity grows by the day, we have a ridiculous situation where the two men who command the world’s two most powerful militaries can each meet one to one with every other world leader – including it turns out North Korea’s Kim Jong-un – but not apparently with each other.  The sooner this ridiculous and dangerous situation is ended the better.

Moreover, as Dr. Doctorow rightly says, such a summit meeting between Trump and Putin has a value that goes far beyond anything that the two men concretely agree with each other.

There mere fact that the leaders of the United States and Russia are finally talking to each other will transform the international atmosphere, and will hopefully bring to an end the climate of tension which has existed in the international system since the Western sponsored Maidan coup in Ukraine in February 2014.

As Dr. Doctorow also rightly says, it is actually better in this situation if Trump and Putin do not agree to anything specific with each other since in the present atmosphere anything they did agree with each other would almost certainly be misrepresented in the US by Donald Trump’s opponents as a betrayal.

Above all the subject of sanctions – as Dr. Doctorow rightly says – should certainly not be discussed, and no agreement to lift them should be reached.

Sanctions

However that does not mean that with respect to the sanctions a summit between the US and Russian Presidents would not be important.  The mere fact that the Presidents of the US and Russia were meeting would make the unrolling of further sanctions against Russia look increasingly unlikely.

Whilst the ugly blowback of the recent US sanctions against the Russian businessman Oleg Deripaska argues against further strong sanctions being imposed against Russia, such new sanctions as are from time to time announced do nonetheless have something of the quality of a sort of guerrilla campaign against Russia. For the Russians that is distracting, and as they focus increasingly on upgrading their economy they could well do without it.

Moreover a signal from the US – which a Trump-Putin summit would itself be – that further US sanctions against Russia are off the table would almost certainly be all the encouragement many international investors and businesspeople would need in order for them to start investing in Russia in a big way.

With Russian costs and assets now extremely cheap, and with the macroeconomic environment in Russia extremely stable and business friendly, the fear of further sanctions against Russia is now arguably the one thing which is discouraging international investors and businesspeople from piling into a Russia.  Here is how the Financial Times – normally a harsh critic of Russia – puts it

….the rouble has stabilised while investors have marked down the currencies of Argentina, Turkey, Brazil and other emerging market countries in the face of a resurgent dollar and rising Treasury yields. Because while they run large current account deficits, which need financing from capital flows, Russia runs a trade surplus.

Compared with other parts of emerging markets, “Russia is in a relatively comfortable position”, says Piotr Matys, EM strategist at Rabobank.

While a number of EM central banks have raised interest rates to counter the impact of the stronger dollar on their economies, the Central Bank of Russia is weighing a rate cut. And although investors have doubts about the credibility of some EM policymakers, they like CBR governor Elvira Nabiullina for bringing discipline and a consistent communication strategy to the central bank.

Inflation was raging at 15 per cent three years ago, but at 2.4 per cent is now below the CBR target of 4 per cent.

April’s sanctions prompted JPMorgan analysts to close long positions in the rouble, but they are now reintroducing them.

Nafez Zouk, macro strategist at Oxford Economics, says pressure on the rouble is “softening out given that the perception of geopolitical risks has faded”, and reckons the currency is undervalued on the basis of real exchange rate behaviour.

Russia may attract opprobrium on the world stage, but investors don’t mind holding their nose when opportunities arise.

Whilst a softening of the sanctions pressure will therefore almost certainly not be on the agenda of any summit between Trump and Putin, it would nonetheless be a consequence of it and would be an actual material benefit Russia would gain from a summit.

What of the US however, what might the US and Donald Trump gain from a summit with Vladimir Putin now?

Re-starting arms control

The answer to that has been provided by Dr. Gilbert Doctorow

Restarting arms control negotiations should take in more than propping up existing agreements that are either coming to term or are being systematically violated (agreement on short to intermediate range missiles). From Trump’s remarks on the new arms race, it would be entirely logical for him now to accept Vladimir Putin’s invitation to discuss the new technology strategic weapons systems such as Russia is now rolling out, as well as cyber warfare. They would also reopen talks on the US missile defense installations on land in Poland and Romania and at sea off the Russian coasts which gave rise to Russia’s development of what are called invincible offensive systems in response.

As my colleague Alex Christoforou and I have recently discussed in a video, Russia’s success in developing hypersonic missile technology has fundamentally changed the strategic military balance between the US and Russia.

Moreover this is happening at a time when the US’s Nuclear Posture Review was already making clear the US military’s growing dismay about the way the international military balance is shifting against the US.  Here is some of what I have previously said about the US Nuclear Posture Review in a previous article for The Duran

…..today – as was never the case during the Cold War – the aggregate economic, technological and especially industrial and raw material resources of Russia and China are greater than those of the US, calling into question the US’s long term ability to sustain an arms race which it insists on conducting simultaneously against both of them.

Already there is a marked build up of Russian conventional forces in eastern Europe, probably outmatching the size and power of the conventional forces the US currently has in Europe, whilst the Chinese aircraft carrier programme threatens US military dominance of the Pacific for the first time since the end of the Second World War.

At present the US still has the military forces to take on both the Russian army in Europe and the Chinese navy in the Pacific simultaneously.

However before long that will become impossible, at which point the US will find itself not only disastrously over-extended but facing a military commitments’ crisis….

The US Nuclear Posture Review is in fact a profoundly pessimistic document, more so than any other foreign policy or defence document the US government has published which I have read since the end of the Cold War.

Not only does it effectively admit what is now undeniable – that with the return of Great Power competition the ‘unipolar moment’ has passed – but it barely conceals its dismay that the US is once again locked into something which following the end of the Cold War it assumed it would never have to face again: a nuclear arms race…..

Indeed it is easy to see how the US’s overall military position is rapidly becoming worse than it was during the Cold War.

The Cold War was essentially a dual between two nuclear superpowers – the US and the USSR – which was fought out in a limited geographical area – north west Europe and the north Atlantic.

By contrast the challenges the US is now facing are becoming truly global: against Russia in Europe, against China in the Pacific, and potentially against North Korea and Iran in the Korean Peninsula and in the Middle East.

Moreover, despite their differences there is a growing trend for three of these Powers – Russia, China and Iran – to work together with each other, with Russia and China de facto allies against the US, and Iran gradually becoming so.

It is only a question of time before the US finds that it does not have the conventional military forces to confront all these challenges simultaneously……

Dr. Doctorow claims that Henry Kissinger’s original reason for pressing Donald Trump to repair relations with Russia was precisely because of his alarm about the deterioration in the US’s global position caused by the US’s careless undoing of his 1970s diplomatic achievement of setting China and Russia off against each other

I have noted before that Kissinger’s advice to Trump during the electoral campaign to reach an accommodation with Moscow was aimed at decoupling the budding Russia-China strategic partnership that has undone all that Nixon and Kissinger achieved in the 1970s.  I have also noted that Putin rejected this conceptualization of the path to normalized relations with the US when Trump’s emissaries put it to him early in the spring of 2017. Putin is very loyal to his friends and would never turn on Chinese President Xi for the sake of an invitation to the White House. After that setback, Kissinger appeared to have disappeared from the Trump’s entourage.

In light of this the further deterioration of the US’s strategic military position highlighted by the Nuclear Posture Review and confirmed by the new generation of Russian hypersonic weapons unveiled in Putin’s March State of the Union Address  can only have given in Kissinger’s mind added urgency to the US’s need for a new arms limitation arrangement with Russia.

A ‘geostrategic ceasefire’?

This after all is the course I proposed in my discussion of the Nuclear Posture Review, and it is overwhelmingly likely that Kissinger – the nearest thing the US has to a foreign policy realist – shares it

In a rational world that ought to drive the US towards seeking some sort of rapprochement with either Russia or China or preferably with both of them.

Both countries are still overwhelmingly focused on their internal economic development, and for that reason they would probably be willing to come to some sort of ‘geostrategic ceasefire’ arrangement with the US if it were offered to them.

The brief detente era between the US and the USSR of the early 1970s offers a possible precedent, though given subsequent US behaviour the US now faces a massive trust deficit which it will struggle to overcome.

However that remains the rational approach for the US to be taking, and in my opinion if it took it, and committed itself to it seriously, it would probably despite all the trust issues achieve success given the overriding interest of both Russia and China in a peaceful and stable world situation at this time.  Certainly the view expressed in the Review that Russia and China are ‘revisionist’ powers is for the time being at least wrong.

If this is indeed the direction things are taking then it is completely unsurprising that Henry Kissinger – the individual most associated with the previous ‘geostrategic ceasefire’ between the US and Russia of the 1970s – is at the forefront negotiating it.

That ‘geostrategic ceasefire’ after all was also the product of an earlier US over-commitment crisis, with the US struggling to balance the competing demands of its strategic arms race with the USSR and the war in Vietnam.

Nixon and Kissinger responded to the 1970s US over-commitment crisis by coming to arms limitation agreements with the Soviets whilst simultaneously reaching out to China and scaling down the war in Vietnam.

It is just possible that Donald Trump on Kissinger’s advice is feeling his way to doing something similar now, and that some of his recent moves eg. the summit with Kim Jong-un and the talk of a summit with Putin now are the outward indications of it.

That would make sense of some of Donald Trump’s recent talk about Russia, which Dr. Doctorow describes in this way

Evidence of Kissinger’s return to favor came as recently as a week ago when Trump reportedly said behind closed doors at the G-7 meeting that Crimea is rightfully Russia’s.  That is half of the new equation for normalization of relations now being attributed to Kissinger by hearsay:  the other side of the equation being that in return Russia would withdraw its support to the rebellion in Donbass against the Ukrainian authorities.

Given the scale of the US’s pending over-commitment crisis, such a policy aiming at a ‘geostrategic ceasefire’ with Russia might just possibly if it was explained properly even in time gain a measure of support in Washington.  Here is what Dr. Doctorow has to say about that

Such a one-page Letter of Intent could be sold to a skeptical or even hostile Congress if arms control heads the list.  The Open Letter to Rex Tillerson by four US Senators, 3 Democrats and 1 Independent (Bernie Sanders) in early March urging immediate arms control talks showed that Vladimir Putin’s speech of 1 March on how Russia has restored full nuclear parity with the United States could break through the otherwise blind partisanship on Capitol Hill when questions of national survival are on the table. (See http://usforeignpolicy.blogs.lalibre.be/archive/2018/03/10/gang-of-four-senators-call-for-tillerson-to-enter-into-arms-1164058.html )

However it is important to stress that what looks to be on the agenda at least for the moment is a ‘geostrategic ceasefire’, not a full scale rapprochement between the US and Russia.

The US and Russia would remain adversaries.  However sanctions pressure on Russia would ease, attracting external investors to Russia, whilst the Russians would be given time and space to give all their attention to their economy without being distracted by the constant pressure on them of the US.  The US for its part would be under less pressure to engage in an arms race with Russia and China which it now lacks the resources to win.

Donald Trump himself has at times gone further and has spoken of actual friendship between the US and Russia.  That is not however on the agenda in the foreseeable future.

What are the prospects of success?

No retreat by Russia on Ukraine, Crimea or Donbass

Firstly Dr. Doctorow is certainly right when he says that any idea of Russia abandoning the two People’s Republics of the Donbass to their fate in return for a ‘geopolitical ceasefire’ with the US can be firmly ruled out

To abandon Donbass to the not so tender mercy of Ukrainian nationalists and revanchists would be political suicide for Putin given the strength of feeling on the subject among his supporters

I would add that the Russians have also categorically ruled out the possibility of a peacekeeping force being deployed to the Donbass to which Dr. Doctorow gives more credence.  Here is what Russian Foreign Minister Sergey Lavrov recently had to say about that

The topic of the UN peacekeeping mission in Donbass was discussed at the meeting of foreign ministers of the Normandy Four participants [Russia, Ukraine, Germany and France], Russian Foreign Minister Sergey Lavrov said on Tuesday.

“Yes, UN peacekeepers were discussed,” the Russian minister said. “The Russian position is crystal clear. We have a proposal introduced last September to the UN Security Council and aimed at providing UN security for observers working through OSCE,” Lavrov said.

At the same time, Ukraine continues insisting on the US variant of the UN mission in Donbass, which ruins Minsk Agreements completely, Lavrov noted.

“We explained that ideas put forward by US and Ukrainian representatives to convert this peacekeeping mission into a sort of military-political commandant’s headquarters to take control over the whole territory of proclaimed Donetsk and Lugansk Republics and which will decide on its own, who will be elected and in what way, completely ruins Minsk Agreements,” the Russian minister said.

“It seems to me that the French and the German understand our logic,” he added.

Given the total lack of trust the Russians have in any peacekeeping force proposed by Ukraine and the Western powers, and given that the supporters of this proposal for a peacekeeping force make no secret that it is their intention to use it as a means to return the Donbass to Kiev’s control, I do not see the Russians ever agreeing to it.

Conversely, I don’t see Trump – as Dr. Doctorow suggests – ever agreeing to Ukrainian President Poroshenko’s removal to please Putin and I don’t see Putin requesting it; nor do I see Trump agreeing to increase pressure on Ukraine in order to get Ukraine to implement the Minsk Process, and I don’t see Putin requesting it from him either.

I suspect that the most one can hope for coming out of a Trump-Putin summit on the subject of Ukraine would be a public recommitment by the US and Russia to the Minsk Process – as Dr. Doctorow suggests – together with a private understanding between Trump and Putin to put the issues of Crimea and Ukraine to one side.

Frankly I don’t think Trump cares about either Crimea or Ukraine, and I suspect that he would be only too happy to leave them to their own devices if he thought that that would be the way to get Putin to come to some sort of understanding with him each on issues like arms control which he really cares about.

As for Putin, I think that would be almost the optimal position for him, leaving Ukraine in effect adrift.

A winding down of the conflict in Syria

As for Syria, again I strongly doubt that the Russians would ever agree to even an informal partition of Syria along the lines Dr. Doctorow suggests.

Far more likely is that Putin will pass on to Trump assurances the Russians appear to have been given by the Iranian and Syrian leaders that the Iranian presence in Syria is connected to the ongoing conflict in Syria and will be significantly scaled down once the Syrian conflict ends.

Unlike Crimea and Ukraine Iran’s role in Syria is something Trump does care about, but again I suspect he would probably accept assurances of this sort given him by Putin if he were to see in them the way forward to an agreement with Putin on even more pressing issues such as arms control.

There is no longer any possibility of regime change in Syria.  From Donald Trump’s point of view an implicit assurance that after the Syrian government’s final victory the Iranian presence in Syria will be scaled down is probably a more attractive option than maintaining a US military presence in Syria indefinitely.

Russian media discusses the summit

The basis of an understanding between Trump and Putin is therefore there, and as Dr. Doctorow says there are now straws in the wind which suggest that the two men may be working towards a summit as they feel their way towards that understanding.

Indeed, even as I have been writing this article, Russia’s official TASS news agency has published a summary of an article in the Russian newspaper Kommersant which also discusses the rumours that a summit may be pending.

Russian and US Presidents Vladimir Putin and Donald Trump are reportedly gearing up for a summit in July. Numerous media leaks about the two leaders’ meeting, which is expected to be held in one of the European capitals, and information provided by Kommersant’s sources, indicate that preparations for it are underway. However, the paper’s interlocutors warned many White House officials are opposed to the idea, arguing that for Trump the proposed meeting will only make sense in the event of a breakthrough agreement on at least one of the key issues on the Russian-US agenda.

This has been confirmed by former Russian Deputy Foreign Minister and currently Director of the Center for Political Studies Andrei Fyodorov who cited his own US diplomatic sources.

Unsurprisingly the Kommersant article identifies Donald Trump’s perennially hawkish National Security Adviser John Bolton as the primary opponent of the idea for the summit.

However, interestingly enough, Bolton’s opposition to the summit appears to be based not on an objection to a summit with Putin in principle, but rather to his concern that it might be difficult to sell the idea of such a summit to an implacably hostile US political establishment now

“Among the opponents of the July summit plans is National Security Adviser John Bolton. Bolton known for his critical attitude towards Russia insists that for Donald Trump such a meeting would only make sense if he could take credit for it, similarly to the summit with North Korean leader Kim Jong-un in Singapore,” Fyodorov explained. “At the moment, the White House is not certain Trump could present his summit with Vladimir Putin to his opponents as a foreign policy victory in the run-up to the November elections to the US Congress. For example, an agreement to revive the nuclear disarmament negotiation process and maintain strategic stability could be such a victory.”

Having said this, If it is merely questions of presentation that are holding the summit back, then it is likely to happen sooner or later as Donald Trump’s political position in the US grows steadily stronger.  Another Russian analyst quoted by Kommersant explains it correctly in this way

According to Yuri Rogulev, Director of the Franklin Roosevelt US Policy Studies Center at Moscow State University, “Trump shows consistency in fulfilling his election pledges, although he is not ready yet to fully iron out relations with Russia.” “As the alleged ‘Russian meddling’ probe is running out of steam, Trump is trying to achieve a reset in relations with Moscow. His remarks about making Russia a member of the global powers’ club again and turning the G7 into G8 was yet another reminder,” the expert stressed.

A return to Trump’s original ideas about Russia?

Shortly before Donald Trump was inaugurated President of the United States, but after his election as President, he gave an interview to The Times of London in which he spelled out his foreign policy ideas.

In that article he first floated the idea of trading sanctions on Russia for an arms control agreement

They have sanctions on Russia — let’s see if we can make some good deals with Russia.  For one thing, I think nuclear weapons should be way down and reduced very substantially, that’s part of it. But Russia’s hurting very badly right now because of sanctions, but I think something can happen that a lot of people are gonna benefit.

At the time this suggestion was made it provoked widespread dismay in Washington and amongst the US’s European allies as it was seen – correctly – as in effect throwing Ukraine under a bus.

However it appears to correspond with the direction in which Trump – possibly on Henry Kissinger’s advice – is currently travelling.

Whether Trump will be able to follow it, and what the ultimate destination will be if he does, remains to be seen.

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Russia makes MASSIVE progress on its ‘super-weapons’

Avangard hypersonic glide vehicle moves into serial production, nuclear-engine powered cruise missile tests continue, and more as Russia continues to outdo all Western military tech

Seraphim Hanisch

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On July 19th and 20th, The Russian Defense Ministry announced several milestones of progress in its advanced weapons systems programs. These programs were revealed to the world in March of this year, when Russian President Vladimir Putin gave the State of the Russian Federation speech.

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While at first the Western onlookers did not believe the amazing announcements of hypersonic weapons and nuclear-powered cruise missiles with unlimited range, subsequent releases and concurrent observation by the American military experts has shown these developments to be as real as Mr. Putin claimed they are.

TASS, the Russian News Agency, released information on these weapons systems in separate reports:

Kinzhal

The Kinzhal hypersonic missile:

Squadrons of MiG-31 fighter jets armed with Kinzhal hypersonic missiles should enter combat duty in the Black Sea region and at other Russian fleets and flotillas, said Russian military expert Viktor Murakhovsky, the editor-in-chief of the Arsenal Otechestva magazine.

Besides, a squadron (between 12 and 16 aircraft) of MiG-31 fighter jets armed with Kinzhal hypersonic missiles entered combat duty in the Caspian Sea region in April.

“I think at least one squadron of those complexes should be deployed at any fleet, in other words – at all regions where we have fleets and flotillas. We need to deploy them in the regions of the Black Sea, the Baltic Sea, the Northern Fleet. The Pacific region also should not be forgotten,” Murakhovsky said.

He said that such systems can become a “good instrument” against not only vessels equipped with high-precision weapons, but also for countering carrier attack groups.

“We know how expensive a carrier attack group can be. By employing this asymmetric method, which is unbelievably cheap in comparison with building a carrier attack group, we can neutralize this threat almost completely,” the expert said.

Burevestnik nuclear-powered cruise missile trials:

The Burevestnik is an entirely new cruise missile, powered by a nuclear engine. This gives the missile unlimited range. In theory, such a missile could be launched at a target and spend days or weeks in hidden flight using advanced guidance systems, and then close on its target at the optimal time to assure destruction of that target with maximum surprise. The TASS piece goes on to say:

The Russian Defense Ministry announced that Russia was preparing to test upgraded test prototypes of the nuclear-powered Burevestnik cruise missile with an unlimited range.

According to the expert, it is highly likely that the prototype of the missile “has already made a flight.”

“Clearly, it was something like the pop-up trials of Sarmat – a launch without the nuclear-powered engine, in other words, with an ordinary missile booster, conducted in order to assess the possibility of a launch, aerodynamics and the operability of the entire system in general,” [Murakhovsky] said.

Further reporting from TASS had this to add about the Burevestnik program:

Russia is getting ready for flight tests of the Burevestnik nuclear powered cruise missile, an official at the Defense Ministry told reporters on Thursday.

“The missile’s component makeup is being improved based on clarified requirements, while ground tests continue and preparations are being made for experimental flight tests of the improved missile,” the official said.

According to the Defense Ministry, “work on an unlimited-range missile is going according to plan.”

“In the meantime, launching systems are also being designed, while technological processes to manufacture, assemble and test the missile are being improved. This range of work will make it possible to start designing a totally new sort of weapon – a strategic nuclear complex armed with a nuclear powered missile,” the ministry official noted.

[The head] of the 12th Central Research Institute at Russia’s Defense Ministry Sergey Pertsev, in turn, said that the tests of the new cruise missile equipped with a small nuclear power unit had confirmed the accuracy of the technical decisions that Russian researchers, engineers and designers had made. In addition, the tests enabled the researchers “to receive valuable experimental data necessary for specifying a number of requirements.”

“A low-flying and low-observable cruise missile carrying a nuclear warhead, with an almost unlimited range, an unpredictable trajectory and capability to bypass interception lines is invincible to all the existing and advanced air and missile defense systems,” the Russian Defense Ministry stressed.

A further use of the nuclear engine technology is also expected in the Poseidon underwater drone, Mr. Murakhovsky stated that separate systems for the craft have been successfully tested. He further noted that the next task is to design the entire layout, build a test model and begin testing the whole platform.

The Avangard Hypersonic Missile

While the Kinzhal is a Mach-10 capable hypersonic system that can be launched from a fighter, the Avangard is a Mach-20 capable system that has intercontinental reach. There is almost no footage of this system released to the public, but the concept videos show how the system works. TASS reports this status:

Russia’s Strategic Missile Force is preparing a position area for accepting the Avangard hypersonic missile system for service as part of the efforts to strengthen the country’s military security, the Defense Ministry announced on Thursday.

“The Russian defense industry has completed developing the Avangard missile system with the principally new armament – the gliding cruise warhead. Industrial enterprises have switched to its serial production,” the Defense Ministry said.

“A set of organizational and technical measures is underway in the position area of the Dombarovsky large unit of the Strategic Missile Force to accept the Avangard missile system for operation,” it added.

The development of new strategic weapon systems “is aimed at increasing Russia’s defense capability and preventing any aggression against our country and its allies,” the Defense Ministry stressed.

The infrastructural facilities of the large unit’s position area have already been prepared for the missile system’s operation, the ministry said.

“The position area has been prepared in geodesic and engineering terms to accommodate the missile system. Work is underway to build new and reconstruct old facilities to provide for the operation and the combat use of the system. Technical and utility supply lines are being modernized and electric power, communications and command and control cables are being laid. Work has been arranged to train personnel and prepare armament, military and special hardware,” Russia’s Defense Ministry said.

Deputy Commander of Russia’s Strategic Missile Force for Armament Sergei Poroskun has said that the Avangard hypersonic missile system features combat capabilities that “make it possible to reliably breach any anti-missile defenses.”

The Okhotnik attack drone

The Okhotnik (“Hunter”) attack drone is now being viewed as a prototype for Russia’s “sixth-generation” fighter plane. TASS describes this in more detail:

According to [a defense industry] official, although the sixth generation fighter jet project “has not yet taken full shape, its main features are already known.”

“First of all, it should be unmanned and capable of performing any combat task in an autonomous regime. In this sense, Okhotnik will become the prototype of the sixth generation fighter jet,’ the source said, adding that the drone will be able to “take off, fulfill its objectives and return to the airfield.”

“However, it will not receive the function of decision-making regarding the use of weapons – this will be decided by a human,” he said.

TASS was unable to officially confirm the information at the time of the publication.

Another defense industry source earlier told TASS that the prototype of Okhotnik (Hunter) was ready and would start test flights this year.

The Russian Defense Ministry and the Sukhoi Company signed a contract for developing the 20-ton Okhotnik (Hunter) heavy unmanned strike aircraft in 2011. The drone’s mock-up model was made in 2014. According to unconfirmed reports, composite materials and anti-radar coating were used to create the Okhotnik. The drone is equipped with a reaction-jet propulsion and is supposed to develop a speed of 1000 kilometers per hour.

Peresvet laser weapons systems

TASS reported that the Russian military forces are now training for the use of the Peresvet combat laser system:

Russian Aerospace Force has accepted for service the laser complexes Peresvet and the military are now taking drills that involve the novel combat technologies, the Russian Defense Ministry said on Thursday.

“The Peresvet laser complexes have been placed at sites of permanent deployment,” the report said. “Active efforts to make them fully operational are underway.”

“To ensure their proper functioning, the necessary infrastructures and specialized facilities for housing the complexes and duty crews have been built,” the ministry said.

The crews assigned to the Peresvets have taken upgrader courses at the Alexander Mozhaisky Military-Space Academy in St Petersburg.

The Russian military strategy of “asymmetric response.”

The overall defense strategy is termed an “asymmetric response”, and Mr. Murakhovsky explained the principle in this way:

“This is an asymmetric response, in which new classes of weapons are created, instead of new types within the framework of the existing systems. Other states are not expected to have anything of this kind [in the near future],” he said.

The expert described this response as “quite an efficient one, all the more so because it requires no additional investment – all the works are being carried out within the framework of the state procurement program.”

He added that unlike the Soviet Union, Russia avoids being dragged into a direct arms race and searches for cutting-edge solutions instead of simply increasing the number of weapons.

“The development of counter-weapons to those arms [may be possible] in distant future, but it does not mean that they can be created at all,” Murakhovsky added.

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From McCain to Brennan, Deep State soft coup against Trump picks up steam (Video)

The Duran – News in Review – Episode 59.

Alex Christoforou

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After Trump’s meeting with Putin in Helsinki, the Deep State smells blood, and is moving quickly to depose of US President Donald Trump.

Government officials and mainstream media puppets from left and right are condemning the US President over his press conference with Vladimir Putin.

Leading the charge are the usual Deep State, suspects, starting with John McCain and ending with the man many believe is behind the entire Trump-Russia collusion hoax, former Obama CIA boss John Brennan.

RT CrossTalk host Peter Lavelle and The Duran’s Alex Christoforou examine the soft coup aimed at removing US President Trump by the November 2018 midterms. Remember to Please Subscribe to The Duran’s YouTube Channel.

Via The Independent

Conservative John McCain, who is facing a rare and terminal brain cancer, unleashed a damning statement against Mr Trump’s conference with Mr Putin, describing it as “one of the most disgraceful performances by an American president in memory”.

“President Trump proved not only unable, but unwilling to stand up to Putin,” he said.

“It is tempting to describe the press conference as a pathetic rout — as an illustration of the perils of under-preparation and inexperience. But these were not the errant tweets of a novice politician. These were the deliberate choices of a president who seems determined to realise his delusions of a warm relationship with Putin’s regime without any regard for the true nature of his rule, his violent disregard for the sovereignty of his neighbours, his complicity in the slaughter of the Syrian people, his violation of international treaties, and his assault on democratic institutions throughout the world.”

The conservative senator’s comments arrived after the US president declined to name Russia as the adversary behind coordinated attacks on the 2016 presidential election.

While discussing whether he thought Russia was behind hacks against the 2016 election — as the US intelligence community has determined —the president said: “I don’t see any reason why it would be.”

“Dan Coats [the US Director of National Intelligence] said its Russia. President Putin says its not Russia,” said Mr Trump. “I don’t know why it would be…..I have confidence in both parties. President Putin was extremely strong and powerful in his denial today.”

That set off a wave of condemnations from Democrats and Republicans alike.

“President Trump’s press conference with Putin was an embarrassing spectacle,” Bernie Sanders wrote in a tweet. “Rather than make clear that interference in our elections is unacceptable, Trump instead accepted Putin’s denials and cast doubt on the conclusions of our intelligence community. This is not normal.”

Jeff Flake, one of the only frequent Republican critics of Mr Trump in Congress, said the conference was “shameful” in a statement he posted across social media.

“I never thought I would see the day when our American President would stand on the stage with the Russian President and place blame on the United States for Russian aggression,” he said. “This is shameful.”

Former CIA Director John Brennan released a statement calling for Mr Trump’s impeachment and describing his comments as “treasonous”.

“Donald Trump’s press conference performance in Helsinki rises to & exceeds the threshold of ‘high crimes and misdemeanours,'” Mr Brennan wrote on Twitter. “It was nothing short of treasonous. Not only were Trump’s comments imbecilic, he is wholly in the pocket of Putin. Republican Patriots: Where are you???”

Elizabeth Warren also slammed the president for failing to hold Mr Putin accountable, writing on Twitter: “Russia interfered in our elections & attacked our democracy. Putin must be held accountable – not rewarded.”

“Disgraceful,” she concluded.

However, Mr Trump’s typical roster of critics weren’t the only legislators rebuking his bizarre denials of US intelligence. Lindsey Graham also criticised Mr Trump’s performance, adding that his denial of US intelligence will “be seen by Russia as a sign of weakness and create far more problems than it solves”.

“Missed opportunity by President Trump to firmly hold Russia accountable for 2016 meddling and deliver a strong warning regarding future elections,” he said.

The Republican senator added a suggestion to Mr Trump: review the soccer ball Mr Putin gave to him as a gift for “listening devices” and “never allow it in the White House.”

Thomas Pickering, a regarded statesman and the former US ambassador to Russia, told MSNBC that he was in utter disbelief after the press conference was held on Monday.

“It’s a breathtaking denial of something that clearly is so obviously true,” he said. ”it represents the epitome of President Trump’s effort at self-promotion over the notion of defending the national interest of the United States.”

Mark Warner, a Virginia senator, also suggested Mr Trump committed a clear violation of his responsibilities as president.

Mr Trump committed “a breach of his duty to defend our country against its adversaries,” Mr Warner said. ”If the President cannot defend the United States and its interests in public, how can we trust him to stand up for our country in private?”

Meanwhile the latest Deep State leak, via the NYT, claims that US President Trump was told by Obama holdovers that Putin was involved in cyberattacks during the 2016 election. US intelligence told Trump this information days before the inauguration.

Via The Gateway Pundit

The same liberal hacks who illegally leaked this information want Americans to trust them as they continue to destroy this duly elected president.

President Trump on Wednesday told CBS anchor Jeff Glor that he has no confidence in the tainted intelligence by far left hacks Clapper, Brennan and Comey.

And, once again, the timing of this leak is not an accident.

Liberals are outraged that President Trump refused to chest bump Putin in Helsinki.

The deep state leaked this information to pile on the Republican president.

The New York Times reported…

Two weeks before his inauguration, Donald J. Trump was shown highly classified intelligence indicating that President Vladimir V. Putin of Russia had personally ordered complex cyberattacks to sway the 2016 American election.

The evidence included texts and emails from Russian military officers and information gleaned from a top-secret source close to Mr. Putin, who had described to the C.I.A. how the Kremlin decided to execute its campaign of hacking and disinformation.

Mr. Trump sounded grudgingly convinced, according to several people who attended the intelligence briefing. But ever since, Mr. Trump has tried to cloud the very clear findings that he received on Jan. 6, 2017, which his own intelligence leaders have unanimously endorsed.

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Russia ranks HIGHER than Switzerland in these areas of doing business

Some curious things happened with several businesspeople who attended World Cup events in Russia.

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Russian President Vladimir Putin

One of them was a distinctly renewed interest in doing business inside the country, and another was the realization to what extent perceptions have been tainted by media and political rhetoric directed against any real or imagined nastiness attributed to Russia these days.

These past few weeks have been invaluable, at the very least by affording a clear picture of Russia through which almost all anxiety-ridden preconceptions were illuminated and dispelled. More disturbing was the fact that the several businesspeople I was dealing with were furious. They were livid for being played for fools, and felt victimized by the dismally untrue picture painted about Russia and Russians in their home countries, both by their own politicians and the press.

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Most felt that they have been personally sanctioned by their own countries, betrayed through lack of clear unbiased information enabling them to participate and profit from Russia opportunities these past three growth years in spite of “sanctions”.

The door to doing good business in Russia has been and is open, and has been opening wider year after year. That is not just “highly likely”, but fact. Consistently improving structures, means and methods to conduct business in Russia sustainably, transparently and profitably are now part of the country’s DNA. It is a process, which has been worked on in the west for more than a century, and one, which Russia has only started these past 18 years.

True, there are sanctions, counter-sanctions, and regulations governing them that must be studied carefully. However if you are not a bank or doing business with those persons deemed worthy of being blacklisted by some countries “sanctions list”, in reality there are no obstacles that cannot be positively addressed and legally overcome despite the choir of political nay-sayers.

READ MORE: Russia just dumped $80 BILLION in US debt

The days of quickly turning over Russia opportunities into short-term cash are rapidly fading, they are a throwback to the 1990’s. Today the major and open opportunities are in the areas for Foreign Direct Investments. The nature of FDI is long term to make regularly recurring sustainable returns on investment.

Long term, Russia always was and increasingly confirms that it is a vibrant and attractive market. There is a significant consumer market with spending power, a well-educated workforce, a wealth of resources and the list goes on. The economic obstacles encountered have largely been imposed from without, and not from the dynamics and energies of the Russian economy itself.

Eventually sanctions will end, although the timeline is anyone’s guess. Meanwhile business continues, and any long-term engagement within Russia by establishing a working presence will yield both short and long-term investment rewards. These will only be amplified when the sanctions regimes are removed. In any event, these aspects are long-term investment decisions and one of the criteria in any risk assessment.

For some added perspective, Russia is ranked by the Financial Times as the No.2 country in Europe in terms of capital investments into Europe. It has a 2017 market share of 9% (US$ 15.9 billion) and includes 203 business projects. This is 2% higher than 2016 and better that 2014/2015 when sanctions were imposed.

Another item of perspective is the Country Risk Premium. All investors consider this when calculating the scope for long-term return on investments. What may surprise some is that Russia is no longer ranked as a very high-risk country. For comparisons sake: The risk premium for Germany is zero (no extra risk), the risk premium for Italy is 2.19%, and for Russia, it is 2.54%. When compared to politically popular investment destinations like Ukraine the risk premium is 10.4%  – food for thought. Bottom line is that the risks of investing in Russia are a smidge higher than investing in Italy.

Russia is ranked 35 among 190 economies in the ease of doing business, according to the latest World Bank annual ratings. The ranking of Russia improved to 35 in 2017 from 40 in 2016 and from 124 in 2010. It may also surprise some to learn that as concerns protecting the rights of minority investors, paying taxes, registering property and some other aspects of the World Bank comparisons, Russia comes out better than Switzerland (See: Rankings).

From operational standpoints, establishing an invested presence in Russia does not mean one must adopt Russian managerial methods or practices. The advantages for established foreign companies is that their management culture is readily applied and absorbed by a smart and willing workforce, enabling a seamless integration given the right training and tools.

The trend towards the ultimate globalization of business despite trade wars, tariffs, sanctions and counter-sanctions is clear. The internet of the planet, the blockchain and speed of information exchange makes it so whether we wish it or not. Personally, I hope that political globalization remains stillborn as geopolitics has a historical mandate to tinker with and play havoc with international trade.

Russia occupies a key strategic position between Europe and Asia. The “west” (US/Europe) have long had at times rather turbulent relationships with China. At the same time the Chinese are quite active investors in both the US and Europe, and western companies are often struggling to understand how to deal with China.

The answer to this conundrum is Russia: this is where East and West will ultimately come together with Russia playing a pivotal role in the relations between the west and China. At the end of the day, and taking the strategic long-term economic view, is what both Chinese and Western companies are investing in when they open their activities in Russia.

If long-term commitment and investment in Russia were simply a matter of transferring funds then I would not be bothering with this opinion article. Without a doubt, there are structural issues with investing in Russia. A still evolving and sometimes unclear rule of law, difficulties obtaining finance for investments directed towards Russia, the unique language and culture of business in the country. Nevertheless, companies that have an understanding and vision of global strategy will manage with these issues and have the means to mitigate them.

Money and other invested resources do not and should not play politics; any investment case when evaluated on objective financial criteria will reveal its fit, or lack of, within a company’s global strategic business objectives. The objective criteria for Russia over any long term horizon is both convincing and strong. This has been repeated by all of the businesspeople I have met with these past few weeks. Without doubt we shall see some new companies coming into the Russian market and objectively exploring the gains their playing fair business football here will yield.

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