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US sanctions Russia — again, sending a strong signal to Europe and Putin

Latest round of US sanctions more symbolic than effective, sanctioning individuals and companies sanctioned already.

Alexander Mercouris

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On 1st September 2016 the US Treasury announced a further expansion of US sanctions against Russia.

The new sanctions are essentially symbolic.  They fall into four distinct categories:

  1. against CJSC ABR Management (“ABR Management”) for undertaking certain management work on behalf of the already sanctioned Bank Rossiya – a medium sized Russian bank based in St. Petersburg which the US and various other people have convinced themselves – almost certainly wrongly – that Putin either owns or has a stake in.
  2. against certain individuals holding various official positions either in Crimea or in the Donetsk People’s Republic;
  3. against certain companies and Russian state institutions involved in building the bridge between Crimea and Kerch; and
  4. against certain companies which are subsidiaries of Gazprom and are involved in its work.

The bridge being built between Crimea and Kerch is connected to Arkady Rotenberg, who is already subject to US sanctions.  

Any companies connected or controlled by him would already be effected by sanctions.  

Gazprom is itself subject to sanctions as by extension are its subsidiaries, which are involved in its operations. 

Any individuals holding public office whether in Crimea or with the Donetsk People’s Republic would naturally assume they would be placed on a US sanctions list, as would any company, person or agency carrying out management or financial work for Bank Rossiya, which is the subject of a particularly venomous campaign of sanctions because of the mistaken belief that it is Putin’s bank.  

On the subject of ABR Management, the US Treasury statement suggests the US thinks it is Putin’s proxy in Bank Rossiya board and shareholders’ meetings.  Specifically the US Treasury says that ABR Management is

“…..the trustee under a trust agreement with certain Bank Rossiya shareholders….”

The words “certain Bank Rossiya shareholders” may refer to Putin, who the US Treasury believes is the true owner of Bank Rossiya.  The fact that the US Treasury says that ABR Management manages a majority of the shares and is able to appoint individuals to senior office in the bank strongly suggests that.  In reality ABR Management – if the US Treasury is describing its work correctly – is almost certainly performing this role for Bank Rossiya’s actual majority shareholders, who are known to be Yury Kovalchuk (the Bank’s CEO) and two St. Petersburg businessmen, Nikolay Shamalov and Dmitry Gorelov.

Having said this, overall the key point is that since the new sanctions merely sanction companies and individuals who are in effect if not in fact sanctioned already, they actually add nothing to the sanctions already in place.

Why then did the US impose them?

Given the bad personal relations between Obama and Putin, one possibility has to be that they were intended “to put Putin in his place” on the eve of their meeting in Hangzhou.  The sanctions against ABR Management – if the US really does think it is Putin’s proxy – certainly look that way.  

If that sounds petulant, I would say that petulance has been a distinguishing feature of Obama’s conduct of diplomacy ever since he became President.

Having said this, the sanctions against the Gazprom subsidiaries and the companies involved in the Kerch-Crimea bridge project look more likely to have been intended as a signal of US support for Ukraine in the run up to the parliamentary elections in Russia – which will of course include Crimea – and as a signal to the Europeans not to ease off the EU’s sanctions when they come up for renewal in December.

As I have discussed previously, there is a head of steam building up in Europe against the EU’s sanctions.  The new US sanctions seem to be intended as a warning that the US has no intention of softening its own sanctions, and that if EU sanctions are lifted or relaxed any European banks or companies that deal with US sanctioned entities in Russia will find themselves fined and prosecuted by the US authorities.

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US confirms pullout from INF treaty, Moscow will respond if missiles placed in Europe – deputy FM

Moscow will respond to possible attempts to place short and intermediate range nuclear-capable missiles in Europe if the US decides to go on with this plan.

RT

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Via RT…


Washington has confirmed its decision to withdraw from the INF treaty is final, Russia’s deputy foreign minister said, adding that Moscow will ‘take measures’ if American missiles that threaten its security are placed in Europe.

“Washington publicly announced its plans to withdraw from the treaty (the Intermediate-Range Nuclear Forces) already in October. Through the high-level bilateral channels it was confirmed to us that this decision was final and wasn’t an attempt to initiate dialogue,” Sergey Ryabkov told the Kommersant newspaper.

The Deputy FM said that Moscow will respond to possible attempts to place short and intermediate range nuclear-capable missiles in Europe if the US decides to go on with this plan.

“We’ll be forced to come up with effective compensating measures. I’d like to warn against pushing the situation towards the eruption of new ‘missile crises.’ I am convinced that no sane country could be interested in something like this,” he said.

Russia isn’t threatening anybody, but have the necessary strength and means to counter any aggressor.
Back in October, President Donald Trump warned that Washington was planning unilateral withdrawal from the Intermediate-Range Nuclear Forces (INF) treaty because “Russia has not adhered to the agreement.” The US leader also promised that the country would keep boosting its nuclear arsenal until Russia and China “come to their senses.”

Earlier this month, US Secretary of State Mike Pompeo announced that Washington will suspend its obligations under the treaty within 60 days if Russia does not “return to compliance.”

Signed in late 1988, the INF agreement was considered a milestone in ending the arms race between the US and the USSR.

In recent years, Moscow and Washington have repeatedly accused each other of violating the INF deal. While the US has alleged that Russia has developed missiles prohibited by the treaty, Russia insists that the American anti-missile systems deployed in Eastern Europe can actually be used to launch intermediate-range cruise missiles.

The deputy FM said that Washington “never made a secret” of the fact that its INF treaty pullout “wasn’t so much about problems between the US and Russia, but about the desire of the Americans to get rid of all restrictions that were inconvenient for them.”

The US side expressed belief that the INF deal “significantly limits the US military’s capabilities to counter states with arsenals of medium-range and shorter-range ground-based missiles,” which threaten American interests, he said. “China, Iran and North Korea” were specifically mentioned by Washington, Ryabkov added.

“I don’t think that we’re talking about a new missile crisis, but the US plans are so far absolutely unclear,” Mikhail Khodarenok, retired colonel and military expert, told RT, reminding that the Americans have avoided any type of “meaningful discussion” with Moscow in regards to its INF deal pullout.

While “there’ll be no deployment of [US missiles] in Europe any time soon,” Moscow should expect that Washington would try to void other agreements with Russia as well, Khodarenok warned.

The INF deal “just stopped being beneficial for the US. Next up are all the other arms control treaties. There’ll be no resistance from the NATO allies [to US actions],” he said.

“The neocons who run Trump’s foreign policy never have liked arms reduction treaties,” former Pentagon official Michael Maloof told RT. “The new START treaty which comes up for renewal also could be in jeopardy.”

“The risk of a new nuclear buildup is really quite obvious” if the US withdrawals from the INF treaty, Dan Smith, the director of the Stockholm International Peace Research Institute, told RT.

“I think the relations between the great powers – the US and Russia as well as the US and China – are more difficult than they’ve been for a long time,” he added.

However, with Washington having indicated that it wants China to be part of the new deal, “there are still possibilities for negotiations and agreement,” according to Smith. Nonetheless, he warned that following this path will demand strong political will and tactical thinking from the leadership of all three countries.

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US Pressures Germany To Ditch Huawei Over ‘Security Concerns’

This news will likely not go over well in Beijing, which is still struggling with the US and Canada over the arrest of Huawei CFO Meng Wanzhou in Vancouver.

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Via Zerohedge


First it was Australia, New Zealand and Japan, now the US is pressing the German government to refuse to use equipment manufactured by Chinese telecom giant Huawei as Europe’s largest economy seeks to build out its 5G infrastructure.

According to Bloomberg, a US delegation met on Friday with German Foreign Ministry officials in Berlin to talk about the security risks presented by Huawei’s equipment, which the US says is vulnerable to spying. The meeting in Germany follows a report from late last month claiming the US had launched an “extraordinary outreach campaign” to warn its allies against using Huawei equipment (while its vulnerability to Chinese spying has been cited as the reason to avoid Huawei, it’s also worth noting that the US and China are locked in a battle for who will dominate the global 5G space…a battle that Huawei is currently winning).

Germany is set to hold an auction early next year to find a supplier to help expand its 5G network. The Berlin meeting took place one day after Deutsche Telekom said it would reexamine its decision to use Huawei equipment.

US officials are optimistic that their warnings are getting a hearing, though any detailed talks are in early stages and no concrete commitments have been made, according to one of the people.

The US pressure on Germany underscores increased scrutiny of Huawei as governments grapple with fears that the telecom-equipment maker’s gear is an enabler for Chinese espionage. The Berlin meeting took place a day after German carrier Deutsche Telekom AG said it will re-evaluate its purchasing strategy on Huawei, an indication that it may drop the Chinese company from its list of network suppliers.

France is also reportedly considering further restrictions after adding Huawei products to its “high alert” list. The US has already passed a ban preventing government agencies from using anything made by Huawei. But the telecoms equipment provider isn’t taking these threats to its business lying down.

U.S. warnings over espionage are a delicate matter in Germany. Revelations over the scale of the National Security Agency’s signals intelligence, including reports of tapping Merkel’s mobile phone, are still fresh in Berlin five years after they came to light.

Huawei is pushing back against the accusations. The company’s rotating chairman warned this week that blacklisting the Chinese company without proof will hurt the industry and disrupt the emergence of new wireless technology globally. Ken Hu, speaking at a Huawei manufacturing base in Dongguan, cited “groundless speculation,” in some of the first public comments since the shock arrest of the company’s chief financial officer.

This news will likely not go over well in Beijing, which is still struggling with the US and Canada over the arrest of Huawei CFO Meng Wanzhou in Vancouver. In an editorial published Sunday, the Global Times, an English-language mouthpiece for the Communist Party, warned that China should retaliate against any country that – like Australia – takes a hard line against Huawei. So, if you’re a German citizen in Beijing, you might want to consider getting the hell out of Dodge.

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Understanding the Holodomor and why Russia says nothing

A descendant of Holodomor victims takes the rest of us to school as to whether or not Russia needs to shoulder the blame.

Seraphim Hanisch

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One of the charges that nationalist Ukrainians often lodge against their Russian neighbors is that the Russian government has never acknowledged or formally apologized to Ukraine for the “Holodomor” that took place in Ukraine in 1932-1933. This was a man-made famine that killed an estimated seven to 10 million Ukrainians , though higher estimates claim 12.5 million and lower ones now claim 3.3 million.

No matter what the total was, it amounts to a lot of people that starved to death. The charge that modern-day Russia ought to apologize for this event is usually met with silence, which further enrages those Ukrainians that believe that this issue must be resolved by the Russian acknowledgement of responsibility for it. Indeed, the prime charge of these Ukrainians is that the Russians committed a genocide against the Ukrainian people. This is a claim Russia denies.

To the outside observer who does not know this history of Russia and Ukraine’s relationship, and who does not know or understand the characteristics of the Soviet Union, this charge seems as simple and laid out as that of the Native Americans or the blacks demanding some sort of recompense or restitution for the damages inflicted on these societies through conquest and / or slavery. But we discovered someone who had family connections involved in the Holodomor, and who offers her own perspective, which is instructive in why perhaps the Russian Federation does not say anything about this situation.

Scene in Kharkiv with dead from the famine 1932-33 lying along the street.

The speaker is Anna Vinogradova, a Russian Israeli-American, who answered the question through Quora of “Why doesn’t Russia recognize the Holodomor as a genocide?” She openly admits that she speaks only for herself, but her answer is still instructive. We offer it here, with some corrections for the sake of smooth and understandable English:

I can’t speak for Russia and what it does and doesn’t recognize. I can speak for myself.

I am a great-granddaughter of a “Kulak” (кулак), or well-to-do peasant, who lived close to the Russia/Ukraine border.

The word “кулак” means “fist” in Russian, and it wasn’t a good thing for a person to be called by this label. A кулак was an exploiter of peasants and a class enemy of the new state of workers and poor peasants. In other words, while under Communism, to be called a кулак was to bring a death sentence upon yourself.

At some point, every rural class enemy, every peasant who wasn’t a member of a collective farm was eliminated one way or another.

Because Ukraine has very fertile land and the Ukrainian style of agriculture often favors individual farms as opposed to villages, there is no question that many, many Ukrainian peasants were considered class enemies like my great grandfather, and eliminated in class warfare.

I have no doubt that class warfare included starvation, among other things.

The catch? My great grandfather was an ethnic Russian living in Russia. What nationality were the communists who persecuted and eventually shot him? They were of every nationality there was (in the Soviet Union), and they were led by a Ukrainian, who was taking orders from a Georgian.

Now, tell me, why I, a descendant of an unjustly killed Russian peasant, need to apologize to the descendants of the Ukrainians who killed him on the orders of a Georgian?

What about the Russian, Kazakh golodomor (Russian rendering of the same famine)? What about the butchers, who came from all ethnicities? Can someone explain why it’s only okay to talk about Ukrainian victims and Russian persecutors? Why do we need to rewrite history decades later to convert that brutal class war into an ethnic war that it wasn’t?

Ethnic warfare did not start in Russia until after WWII, when some ethnicities were accused of collaboration with the Nazis and brutal group punishments were implemented. It was all based on class up to that time.

The communists of those years were fanatically internationalist. “Working people of all countries, unite!” was their slogan and they were fanatical about it.

As for the crimes of Communism, Russia has been healing this wound for decades, and Russia’s government has made its anticommunist position very clear.

This testimony is most instructive. First, it points out information that the charge of the Holodomor as “genocide!” neatly leaves out. In identifying the internationalist aspects of the Soviet Union, Ukraine further was not a country identified as somehow worthy of genocidal actions. Such a thought makes no sense, especially given the great importance of Ukraine as the “breadbasket” of the Soviet Union, which it was.

Secondly, it shows a very western-style of “divide to conquer” with a conveniently incendiary single-word propaganda tool that is no doubt able to excite any Ukrainian who may be neutral to slightly disaffected about Russia, and then after that, all Ukrainians are now victims of the mighty evil overlords in Moscow.

How convenient is this when the evil overlords in Kyiv don’t want their citizens to know what they are doing?

We saw this on Saturday – taken to a very high peak when President Petro Poroshenko announced the new leading “Hierarch” of the “Ukrainian National Church” and said not one single word about Christ, but only:

“This day will go down in history as the day of the creation of an autocephalous Orthodox church in Ukraine… This is the day of the creation of the church as an independent structure… What is this church? It is a church without Putin. It is a church without Kirill, without prayer for the Russian authorities and the Russian army.”

But as long as Russia is made the “problem”, millions of scandalized Ukrainians will not care what this new Church actually does or teaches, which means it is likely to teach just about anything.

Russia had its own Holodomor. The history of the event shows that this was a result of several factors – imposed socialist economics on a deeply individualized form of agrarian capitalism (bad for morale and worse for food production), really inane centralized planning of cropland use, and a governmental structure that really did not exist to serve the governed, but to impose an ideology on people who really were not all that interested in it.

Personal blame might well lay with Stalin, a Georgian, but the biggest source of the famine lay in the structures imposed under communism as a way of economic strategy. This is not Russia’s fault. It is the economic model that failed.

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