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Ukraine’s Strange Defence, to Russia’s $3 Billion Debt Claim

Ukraine’s Defence to Russia’s Claim for Repayment of its $3 Billion Debt is an invitation to the Court to disregard the law.

Alexander Mercouris

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In parallel with Ukraine’s extraordinary decision to bar Mikhail Gorbachev from travelling to Ukraine, Ukraine has filed what is legally speaking an equally extraordinary Defence to the Claim Russia has brought against Ukraine in London’s High Court.

Russia brought its claim because Ukraine refuses to repay $3 billion it borrowed from Russia in 2013.  Since the loan took the form of a purchase by Russia of a $3 billion eurobond the court with jurisdiction to decide the case is the High Court in London. 

Russia issued the claim on 17th February 2016.  It has taken a while for Ukraine to file its Defence.  As is usual in court cases Russia granted Ukraine at least one extension of time to enable it to do so.  The reason given for the delay was apparently the change of government in Kiev following the forced resignation of Ukraine’s previous Prime Minister, Arseny Yatsenyuk.

In the event the Defence Ukraine has filed is one that has no precedent in legal proceedings of this sort.  Ukraine claims it should be relieved of paying the debt because Russia’s alleged military aggression against Ukraine means Ukraine should be under no obligation to pay it.

The first thing to say about this Defence is that it essentially admits the debt.  Ukraine is no longer saying the debt itself does not exist because it was a collusive arrangement – a bribe if you will – paid by Russia to Ukraine’s former President Yanukovich.  Nor is Ukraine claiming the debt should not be repaid because it is intrinsically onerous.

These defences, if they were ever considered, essentially collapsed the moment the IMF recognised the debt as valid and said it was public debt – ie. debt owed by Ukraine to Russia as a sovereign state – not debt akin to that which Ukraine also owes to its private (mainly Western) creditors.  Since the debt has been recognised as valid by the IMF Ukraine is no longer able to dispute it.

In light of this the Defence Ukraine has filed – claiming it should not be required to pay the debt because of the aggression Russia has allegedly committed against it – was realistically the only Defence possible if Ukraine was to defend the case at all.

What however are its prospects of success?

A commercial lawyer’s answer would be practically none.  I discussed the prospects of this Defence as long ago as 21st April 2015 when I pointed out the obvious problems:

The debt is not repayable because Russia has made its repayment impossible by committing military aggression against Ukraine.

Russia categorically denies it is committing aggression against Ukraine. 

The Russians would undoubtedly argue that the question of whether or not Russia is committing aggression against Ukraine has been answered in their favour by Ukraine’s signature to the Minsk Memorandum. This treats the Ukrainian conflict as a civil war and commits Ukraine to a process for its settlement. 

The High Court would anyway almost certainly refuse to look at this question.  It would probably again say this a matter for the International Court of Justice. It is anyway doubtful even if Ukraine could persuade the High Court that Russia had committed aggression against Ukraine that this cancels Ukraine’s whole debt. 

I have tried to highlight the obvious problems with each of the arguments that have been made to justify Ukraine defaulting on its debt to Russia. To someone unfamiliar with the law in this area and with the practice of the British High Court, some of these arguments might appear attractive. This is not in fact so. On the contrary each has so many problems that they all look frankly farfetched.”

A Eurobond, which is the form this loan takes, is a negotiable instrument, in this case one Ukraine itself has itself issued. Defaulting on a Eurobond would be akin to a government bouncing a cheque. If only for that reason the High Court would be almost certain to reject any of the arguments put forward as valid reasons to justify doing it.”

Since I wrote those words – long before Ukraine defaulted on the debt and long before the court case began and the Defence was filed – much has happened.

Ukraine for a time continued to pay Russia interest on the debt until it finally defaulted last December.  It unsuccessfully lobbied the IMF to declare the debt “private” as opposed to “public” debt (for an explanation of what that means see my lengthy discussion here). It purported to negotiate with Russia to restructure the debt

None of these actions is consistent with a Defence which says Ukraine should not pay the debt at all.  On the contrary they suggest Ukraine only refused to pay the debt because it could not get better terms to do so.

If the case is going to be decided on a strictly legal basis then Ukraine’s Defence is hopeless.  This is all but admitted by a law professor sympathetic to Ukraine’s position consulted by The Financial Times. It reports him saying:

“There is nothing typical about the Russia-Ukraine loan or the events that followed.  The Russia-Ukraine dispute involves a politically and militarily fraught conflict wrapped in a garden-variety contract dispute governed by English law … the resolution will depend primarily on political, economic and military considerations, rather than legal ones.”

This is a straightforward demand that the High Court ignore the law (“a garden-variety contract dispute governed by English law”) and substitute political judgements in place of legal ones (“a resolution…primarily on political, economic and military considerations, rather than legal ones”).

This is something the highly trained Judges who sit in the branch of London’s High Court which deals with commercial cases have up to now consistently refused to do.  They have always said their task is to administer the law, not to enter into the political arena by making political judgements.

Beyond that there must also be concern that taking such a dramatic step would be fraught with consequences for the future, setting an impossibly difficult precedent the High Court – and other commercial courts around the world – might struggle to live with.

It remains to be seen whether this line holds or whether the High Court will cast aside its traditional political neutrality and take sides in a political conflict in ways the Russians would inevitably see as a further example of the “lawfare” the West has been waging against their country.

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BBC producer admits Douma attack was false flag that nearly sparked Russia – U.S. hot war (Video)

The Duran – News in Review – Episode 176.

Alex Christoforou

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BBC producer Riam Dalati believes that the scenes caught on video from a hospital in Douma, Syria were staged, all in an effort driven by jihadist terrorists and White Helmet “activists” to draw the U.S. and its allies into full on confrontation with Syria, and by extension Russia.

The viral images caused a media firestorm in 2018, showing children allegedly suffering from chemicals, as main stream media channels, like the BBC itself, called for war with Assad.

The Duran’s Alex Christoforou and Editor-in-Chief Alexander Mercouris discuss the BBC producer’s stunning admission, after a 6 month investigation, that reveals the “‘chemical attack” hospital scenes in Douma were completely staged.

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Via RT


Emotive scenes of Syrian civilians, among them crying, choking, half-naked children, dominated the airwaves in April last year after rebel-affiliated mouthpieces reported yet another “chemical attack by the Assad regime” in the town of Douma. Disturbing reports, including some from the controversial White Helmets, claimed scores of people had been killed and injured.

Mainstream media quickly picked up the horrific (but unverified) videos from a Douma hospital, where victims were treated after this “poison attack.” That hospital scene was enough to assemble a UN emergency session and prompt the US-led ‘coalition of the willing’ to rain down dozens of missiles on Damascus and other locations.

But Riam Dalati, a reputable BBC producer who has long reported from the Middle East, took the liberty of trying to sift through the fog of the Syrian war.

He believes Assad forces did attack the town, but that the much-publicized hospital scenes were staged.

After almost 6 months of investigations, I can prove without a doubt that the Douma Hospital scene was staged. No fatalities occurred in the hospital.

Anticipating further queries, he said no one from the White Helmets or opposition sources were present in Douma by the time the alleged attack had happened except for one person who was in Damascus.

Dalati also says that an attack “did happen” but that sarin, a weapons-grade nerve agent, was not used. He said, “we’ll have to wait for OPCW [Organization for the Prohibition of Chemical Weapons] to prove chlorine or otherwise.”

However, everything else around the attack was manufactured for maximum effect.

The journalist said Jaysh al-Islam, an Islamist faction that fought the Syrian army there, “ruled Douma with an iron fist. They co-opted activists, doctors and humanitarians with fear and intimidation.”

Dalati’s revelations could have become a bombshell news report, but instead it was met with a deafening media silence. His employer preferred to distance itself from his findings. The BBC told Sputnik in a statement that Dalati was expressing “his personal opinions about some of the video footage that emerged after the attack but has not claimed that the attack did not happen.” 

After a while, Dalati restricted access to his Twitter account which is now open only to confirmed followers.

Interestingly, his previous inputs did not sit well with the official narrative either. “Sick and tired of activists and rebels using corpses of dead children to stage emotive scenes for Western consumption. Then they wonder why some serious journos are questioning part of the narrative,” he said in a tweet which he later deleted over “the breach of editorial policy.”

In all, Dalati is not a lone voice in the wilderness. The Intercept has recently run a story that also cast doubt on the mainstream coverage of Douma, although it doesn’t doubt that the attack itself happened. While a veteran British reporter Robert Fisk suggested there was no gas attack at all, saying people there were suffering from oxygen starvation. Witnesses of the “chemical attack,” for their part, told international investigators the story was a set-up.

Moscow, which supports Damascus in its fight against terrorists, has long stated the Douma incident was staged, calling for an international OPCW inquiry. Last year, the Defense Ministry presented what it said was proof the “provocation” was to trigger Western airstrikes against Syrian government forces.

This time, the military recalled a similar 2017 incident in Khan Sheikhoun, where an alleged chemical attack took place. The ministry’s spokesman Igor Konashenkov said on Friday that a closer inspection of footage from that location clearly shows this was a set-up as well.

Now the Foreign Ministry has suggested Dalati is being silenced for voicing inconvenient views, with spokeswoman Maria Zakharova asking on Facebook: “A telling story. How about Western advocates of rights and freedoms? Had they accused BBC of censorship and pressuring the journalist?”

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President Trump schools liberals with National Emergency declaration

President Trump skillfully defeats Democrat naysayers, by increasing support for the border wall prior to declaring a National Emergency.

Seraphim Hanisch

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President Trump signed a continuing resolution to keep the US government fully running through the rest of the 2019 fiscal year. The CR contained a $1.374 bn allocation for US border security, and that money includes and pays for the completion of some fifty-five miles of border fence (or wall, or barrier, or “not-a-wall” depending on one’s preferential phrasing.) He also declared a National Emergency, theoretically freeing at least another $8 bn for the continued construction of the border wall.

Yes, it is a wall. And, yes, it is being built right now. And yes, it will be completed. The President of the United States has made this abundantly clear.

Some news reporters talk about this matter still as though there is in fact no wall now, and that there is no construction in progress on any wall. To that we can say, please watch this:

This section of the wall is going up near Santa Teresa, New Mexico. It augments a very well-designed 18 foot wall stretching from west of Santa Teresa, NM to Tornillo, Texas. If someone wants to cross the border without having to negotiate this barrier they have to go very far off the beaten path to do it. President Trump wants to make it even more difficult; in fact, he wants to have the barrier run the entire length of the US-Mexico border.

This second video says a bit more about the situation:

His campaign to get this has been brilliant in terms of getting the American people informed that there is a problem. How did he do this with a press that hates him?

Easy. He made an issue out of it, knowing that the news media has no choice but to cover the President’s every antic, and in so doing, while seeking fodder for criticism, they actually ended up reporting on the actual problem.

This has been an interesting flow of events:

  • Mainstream news slamming the President’s every statement about the need for a wall
  • The fury of Democrat leaders Nancy Pelosi and Charles “Chuck” Schumer in their 100% opposition – their own temper tantrum whilst blaming that tantrum on Trump, who actually acted more like a strict parent than a bratty teenager
  • The very public presentations of Border Patrol experts that Trump arranged, the purpose being to listen to their own expert assessment of the actual needs at the border

This last issue marks a need for even the conservative press to have a wake-up call. Daniel Horowitz wrote a piece in The Conservative Review excoriating President Trump’s signing of this present deal as a “sell out”, noting that:

Trump originally demanded $25 billion for the wall. Then he negotiated himself down to $5.6 billion. Democrats balked and only agreed to $1.6 billion. This bill calls it a day at $1.375 billion, enough to construct 55 miles. But it’s worse than that. This bill limits the president’s ability to construct “barriers” to just the Rio Grande Valley sector and only bollard fencing, not concrete walls of any kind.

Daniel’s point is great for rhetoric because, of course, the President originally did promise a big beautiful concrete wall running the entire length of the border.

However, he missed the point about using bollard-style walls that can be seen through – the Border Patrol agents themselves said this kind of wall is to their advantage. A solid wall prevents natural visibility and the agents were getting rocks thrown at them from people they could not see on the other side. A see-through capability means that people approaching the wall on the other side can be seen and tracked.

This marks an example of conservative ideology being too strongly fixed, just as the liberals’ ideology is fixed at the level of a four-year old child refusing to let someone else play with his toys.

They both do not understand that President Trump is not concerned with ideology. He is concerned with useful results, which he got in this deal.

Now about that National Emergency. Is this really the constitutional crisis Trump’s detractors say it is?

Probably not.

It has been widely reported that the US is currently running under some 31 other national emergencies, and that the one President Trump declared makes it number 32. The rhetoric from the news media and Democrats is centered around the idea that no President has ever used this power to get money that only the Congress can allot.

We also probably already know that this is an irrelevant point – the President is in charge of the national security of the nation, and he can and must do what he can to ensure it. The huge numbers of illegal crossings, nearly half a million in 2018 were largely apprehended and released into the United States, rather than deported. Half a million is far less than the 1.6 million that came through in 2000, but it is also not zero. Half a million is the size of the city of Atlanta, Georgia.

The distractors in the Democrat party and media do not want anyone comprehending this fact, so they try to divert and dissuade. But President Trump has not let any of this get past him. In a media event, the President had parents and relatives of people who were murdered by illegal aliens in a direct face-off with none other than CNN’s provocateur-in-chief Jim Acosta, and the reporter was forced to listen to what these family members had to say about their convictions that the president was correct in his:

Trump pointed to angel moms in attendance, asking them for their thoughts.

“You think I’m creating something? Ask these incredible women who lost their daughters and their sons,” Trump said. “OK, Because your question is a very political question because you have an agenda. You’re CNN. You’re fake news.”

Trump told Acosta the statistics he provided were “wrong” and told him to take a look at the federal prison population for proof.

“See how many of them,percentage-wise, are illegal aliens,” Trump said. “Just see, go ahead and see. It’s a fake question.”

Acosta was subsequently confronted by the angel moms in attendance, after the press conference. As angel moms confronted the CNN reporter, he invited them to appear on the network in the background of a live shot.

“There is no attempt whatsoever to diminish what they’ve gone through, or take away what they’ve gone through, but as you heard in that question that I had with the president … it was really about the facts and the data,” Acosta said on CNN following his exchange with Trump. “Some of these folks came up to me right after this press conference … they’re holding up these pictures of loved ones who lost their lives.”

An angel mom then discussed that a previously deported illegal alien murdered her son.

“President Trump is completely correct on this issue, we need to protect this country,” the angel mom told Acosta.

Acosta actually was a victim of his own passions when he went to the border to a place where the bollard wall presently stands and reported that nothing was happening there. It seemed that he was expecting that there were supposed to be angry mobs on the other side trying to get through. However, no one was there, because it is rather pointless to try to get over this wall at this place. Even liberals were forced to acknowledge Mr. Acosta’s strategic miscalculation.

The new national emergency is about getting results. If we were concerned only with smooth and impressive politics, we could only remark on the President’s success in maneuvering the Democrats (not all of them were slavishly going with the Pelosi-Schumer stance) and his ability to do what he does best – getting his message to the American people, and giving them information with which to decide what they want.

This campaign is not over, but this particular battle appears to have been won with a lot of hard work.

Slowly, oh, so slowly, it would seem that the forces of common sense are making some headway in America.

 

 

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“This is America” reveals a shocking vision of the United States

The Grammy Award winning Song and Record of the Year feature the very darkest vision of what America has become.

Seraphim Hanisch

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The Grammy Awards are the second of the three most significant musical achievement awards in the United States. Two of the anticipated awards that many fans of this event look forward to learning are the Song of the Year and the Record of the Year.

The Song of the Year is awarded to the songwriters of a given song, where the Record of the Year goes to the artists, producers and engineers involved in crafting the recording (the “record”) of a song. Both categories are huge and both usually go to an artist or organization responsible for a pop song.

It also happens to be that usually the song that is picked is beautiful and in most cases, reflects the character of beauty (whether in music or lyrics or both) for that year.

This year was quite different. Both awards went to Donald Glover, a.k.a. “Childish Gambino” for his song This is America.

This song features a radically different tone than previous winners going back for many years. Though rap remixes are usually less musical, the Grammy winners among these mixes have nevertheless retained some relatively positive, or at least attractive, aspect.

This is America is very different, especially when watched with its video.

Musically, it is genius, though the genius appears to have gone mad. Glover paints a picture of some very positive segments in American life, but then destroys it with his audible form and message that says absolutely nothing positive, but even more so – it doesn’t make sense unless one knows the context.

That context is revealed in the video with frightening images: someone getting their brains blown out (we see the blood fly), a gospel choir shot up with an automatic rifle while they were singing, and cannabis, front and center, being smoked by the artist himself.

This is America?

For Glover, this song and others on his album do seem to reflect that point of view.  Feels like Summer, one of Glover’s other recent songs, also reflects this sense of hopelessness, though it is far more musically consistent. The video gives the most clear contextual information that one could ask for, and while the video is not violent, it features degradation in society, even though the people depicted appear to be trying to make the best of their life situations.

The image Mr. Glover paints of America is a far cry from that which was known to most Americans only twenty years ago, and in fact, in many parts of the country where cannabis is still illegal there is a corresponding sense of positivity in life that is absent in Childish Gambino’s California-esque view of life.

There is a massive change that is taking place in American society. Our music and art reflects this change, and it sometimes even helps drive that change.

The United States of today is at a crossroads.

How many times have we read or heard THAT statement before?  But does it not seem so now? The attempt of identity politics to separate our nation into groups that must somehow fight for their own relevance against other groups is not the vision of the United States only twenty years ago.

Further, the normalization of themes such as drug-use and racism, the perpetuation of one in reality and the other as a mythological representation of how life “really is” in the US is radically bizarre.

In discussions with people who do not live in the United States, we found that sometimes they believed that white-on-black racism really was happening in America, because the media in the US pumps this information out in a constant stream, often with people like Donald Trump as the scapegoat.

But it is not true. Anyone in America’s new “accused class” of white, Christian, European-descent males (and some women who are not feminists), will note that they are not racist, and in fact, they feel persecuted for their existence under the new mantra of “white privilege.”

But it does not matter what they say. The media pumps the message it wants to, and with such coverage it is easy to get to halfway believing it: I know I am not this way, but I guess things are getting pretty bad elsewhere because all of those people seem to be getting this way…

This is the narrative the press promulgates, but upon conversations with people in “those places” we find that it is not true for them, either, and that they may in fact be thinking this is true about us.

Made in America is a visionary song and video. However, the vision is not a dream; it is nothing that anyone in the country would sincerely hope for. Even in Donald Glover’s case – as one of Hollywood’s hottest actors, and as a big success in music, he is far from being one of the “boys in the ‘hood.” In fact, Time Magazine in 2017 named him one of the world’s 100 most influential people.

Certainly his musical work creates a powerful influence, but it also must raise questions, with the main ones being:

  • Are we really like this?
  • Is this what we really want to be as a country?
  • Is this the kind of image we want our children in the US to adopt?

In fact, if Mr. Glover’s work was viewed with care (rather than just as something that is “cool” because the media says it is), it might help us steer away from the cliff that many Americans are in fact heading towards.

We have elected not to link to the video because it is too disturbing for children. It is even too disturbing for many adults. For that reason we are not making it one-click-easy to get to.

Parents reading this opinion piece would do well to screen the video by themselves without the kids around first, before deciding what they want to do. Even though the video is probably something that they have already seen, the parents still stand as the guides and guardians for their children through all the perils of growing up.

These times call for great guardians indeed.

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