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What exactly did Russia (and China) offer Greece? Simple…some breathing room and an energy cash cow

Russia’s offer of a pipeline came with an offer of a $5 billion prepayment. This was intended to buy Greece time to apply for a loan from the BRICS Bank. However the Greeks don’t seem to be embracing the offer.

Alex Christoforou

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More than anything right now, Greece needs growth. The loans that the EU continues to pile on Greece will only land Athens back to the negotiating table every three months, asking for more loans.

It’s a never ending cycle that has proven disastrous over the last six years. Yet Europe has no desire to invest in Greece’s growth prospects, deferring to build a debt colony instead. Aside from the Chinese investment in the Piraeus port, Greece has seen next to nothing in terms of foreign business investment.

This made Russia’s Greek Stream pitch all the more interesting and vital to Greece’s survival. It would have also given Greece some much needed breathing room when dealing with creditors.

Via Russia Insider…

Though it reverses what the Russians decided when they cancelled South Stream last autumn, what they proposed to Tsipras in March and April was the building of a pipeline across Greece taking gas from the hub. This would have come with a $5 billion prepayment paid out of Gazprom’s financial reserves. Greece could have used that payment to pay this month’s installments to the IMF.

That solution would obviously not have sufficed to help Greece overcome its problems. However it would have provided Greece with a breathing space. It seems that the Russians proposed that Greece use this breathing space to join the BRICS Bank. It could then have negotiated with the BRICS Bank for a loan.

Behind the BRICS Bank stands China with its practically unlimited reserves. A loan from the BRICS Bank — with the knowledge that China, however discreetly, was now involved — would have changed the dynamic of the situation and might by itself have stopped the bank run that has been underway in one form or another in Greece since December.

It goes without saying that the proposal that Greece join the BRICS Bank — which the Russians have made publicly — could only have been made with China’s agreement.

That in essence appears to have been the offer the Russians made to the Greeks.

It is far from certain it would have succeeded. There would have been risks in it for both sides.

The Russians would have gambled that Greece, unlike Bulgaria, would defy the EU and would press ahead with the pipeline project despite it not being compliant with the Third Energy Package. If this gamble failed and the Greeks, like the Bulgarians, reversed themselves then the Russians would have given Greece $5 billion with nothing to show for it.

It says much for the goodwill the Russians have for Greece that they were prepared to take this risk, which meant reversing the decision they took last autumn to abandon pipeline construction on EU territory.

The Greeks for their part would have gambled that knowledge that Russia and China were involved would force the IMF and EU to restructure Greece’s debt. Without such a restructuring a default is at some point inevitable since the debt at 180% of GDP is obviously unsustainable.

The IMF and EU might have agreed to such a restructuring rather than permit a default that would have pushed Greece further into Russia’s and China’s embrace. However there is no guarantee of this. It is equally possible that the IMF and EU would have been so incensed by Greece’s turn to Russia and China that they would have continued to refuse a restructuring. In that case there would at some point be a default while Greece in the meantime would have burned its bridges with the EU.

Though accepting the Russian offer would have been a gamble, it is not obvious as I write this that accepting it would have left Greece in a worse position than the one it is in anyway. Reports today suggest that the IMF and EU are continuing to take a very hard line and are refusing a restructuring even though the Russian offer has been essentially rejected.

The problem is that while one part of the Greek government based around the energy ministry seems to have embraced the Russian offer, the other part, based around the finance and foreign ministries, seems determined to reject it. Tsipras seems unable to make his mind up between the two.

The Russian offer is probably still on the table if it is embraced wholeheartedly. As of now that does not seem likely. At the moment it looks like the Greeks will only likely embrace it in the event of a Grexit. Whether at that point the offer will still be there remains to be seen.

References:

http://russia-insider.com/en/business/what-russia-offered-greece/ri8306

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Major Syrian Army Assault On Southeast Idlib As Sochi Deal Unravels

Though the Syrian war has grown cold in terms of international spotlight and media interest since September, it is likely again going to ramp up dramatically over the next few months. 

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Via Zerohedge


The Syrian Army unleashed a major assault across the southeastern part of Idlib province on Saturday, a military source told Middle East news site Al-Masdar in a breaking report. According to the source, government forces pounded jihadist defenses across the southeast Idlib axis with a plethora of artillery shells and surface-to-surface missiles.

This latest exchange between the Syrian military and jihadist rebels comes as the Sochi Agreement falls apart in northwestern Syria, and in response to a Friday attack by jihadists which killed 22 Syrian soldiers near a planned buffer zone around the country’s last major anti-Assad and al-Qaeda held region. The jihadist strikes resulted in the highest number of casualties for the army since the Sochi Agreement was established on September 17th.

Though the Syrian war has grown cold in terms of international spotlight and media interest since September, it is likely again going to ramp up dramatically over the next few months.

The Al-Masdar source said the primary targets for the Syrian Army were the trenches and military posts for Hay’at Tahrir Al-Sham in the towns of Al-Taman’ah, Khuwayn, Babulin, Haish, Jarjanaz, Um Jalal, and Mashirfah Shmaliyah. In retaliation for the Syrian Army assault, the jihadist rebels began shelling the government towns of Ma’an, Um Hariteen, and ‘Atshan.

Damascus has been critical of the Sochi deal from the start as it’s criticized Turkey’s role in the Russian-brokered ceasefire plan, especially as a proposed ‘de-militarized’ zone has failed due to jihadist insurgents still holding around 70% of the planned buffer area which they were supposed to withdraw from by mid-October. Sporadic clashes have rocked the “buffer zone” since.

Russia itself recently acknowledged the on the ground failure of the Sochi agreement even as parties officially cling to it. During a Thursday press briefing by Russian Foreign Ministry Spokesperson Maria Zakharova admitted the following:

We have to state that the real disengagement in Idlib has not been achieved despite Turkey’s continuing efforts to live up to its commitments under the Russian-Turkish Memorandum of September 17.

This followed Russia also recently condemning  “sporadic clashes” and “provocations” by the jihadist group HTS (the main al-Qaeda presence) in Idlib.

Likely due to Moscow seeing the writing on the wall that all-out fighting and a full assault by government forces on Idlib will soon resume, Russian naval forces continued a show of force in the Mediterranean this week.

Russian military and naval officials announced Friday that its warships held extensive anti-submarine warfare drills in the Mediterranean. Specifically the Russian Black Sea Fleet’s frigates Admiral Makarov and Admiral Essen conducted the exercise in tandem with deck-based helicopters near Syrian coastal waters.

Notably, according to TASS, the warships central to the drill are “armed with eight launchers of Kalibr-NK cruise missiles that are capable of striking surface, coastal and underwater targets at a distance of up to 2,600 km.”

Since September when what was gearing up to be a major Syrian-Russian assault on Idlib was called off through the Russian-Turkish ceasefire agreement, possibly in avoidance of the stated threat that American forces would intervene in defense of the al-Qaeda insurgent held province (also claiming to have intelligence of an impending government “chemical attack”), the war has largely taken a back-burner in the media and public consciousness.

But as sporadic fighting between jihadists and Syrian government forces is reignited and fast turning into major offensive operations by government forces, the war could once again be thrust back into the media spotlight as ground zero for a great power confrontation between Moscow and Washington.

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Trump Quietly Orders Elimination of Assange

The destruction of Assange has clearly been arranged for, at the highest levels of the U.S. Government, just as the destruction of Jamal Khashoggi was by Saudi Arabia’s Government.

Eric Zuesse

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On June 28th, the Washington Examiner headlined “Pence pressed Ecuadorian president on country’s protection of Julian Assange” and reported that “Vice President Mike Pence discussed the asylum status of Julian Assange during a meeting with Ecuador’s leader on Thursday, following pressure from Senate Democrats who have voiced concerns over the country’s protection of the WikiLeaks founder.” Pence had been given this assignment by U.S. President Donald Trump. The following day, the Examiner bannered “Mike Pence raises Julian Assange case with Ecuadorean president, White House confirms” and reported that the White House had told the newspaper, “They agreed to remain in close coordination on potential next steps going forward.”

On August 24th, a court-filing by Kellen S. Dwyer, Assistant U.S. Attorney for the Alexandria Division of the Eastern District of Virginia, stated: “Due to the sophistication of the defendant and the publicity surrounding the case, no other procedure [than sealing the case, hiding it from the public] is likely to keep confidential the fact that Assange has been charged. … This motion and the proposed order would need to remain sealed until Assange is arrested in connection with the charges in the criminal complaint and can therefore no longer evade or avoid arrest and extradition in this matter.” That filing was discovered by Seamus Hughes, a terrorism expert at the Program on Extremism at George Washington University. On November 15th, he posted an excerpt of it on Twitter, just hours after the Wall Street Journal had reported on the same day that the Justice Department was preparing to prosecute Assange. However, now that we know “the fact that Assange has been charged” and that the U.S. Government is simply waiting “until Assange is arrested in connection with the charges in the criminal complaint and can therefore no longer evade or avoid arrest and extradition in this matter,” it is clear and public that the arrangements which were secretly made between Trump’s agent Pence and the current President of Ecuador are expected to deliver Assange into U.S. custody for criminal prosecution, if Assange doesn’t die at the Ecuadorean Embassy first.

On November 3rd (which, of course, preceded the disclosures on November 15th), Julian Assange’s mother, Christine Ann Hawkins, described in detail what has happened to her son since the time of Pence’s meeting with Ecuador’s President. She said:

He is, right now, alone, sick, in pain, silenced in solitary confinement, cut off from all contact, and being tortured in the heart of London. … He has been detained nearly eight years, without trial, without charge. For the past six years, the UK Government has refused his requests to exit for basic health needs, … [even for] vitamin D. … As a result, his health has seriously deteriorated. … A slow and cruel assassination is taking place before our very eyes. … They will stop at nothing. … When U.S. Vice President Mike Pence recently visited Ecuador, a deal was done to hand Julian over to the U.S. He said that because the political cost of expelling Julian from the Embassy was too high, the plan was to break him down mentally…   to such a point that he will break and be forced to leave. … The extradition warrant is held in secret, four prosecutors but no defense, and no judge, … without a prima-facie case. [Under the U.S. system, the result nonetheless can be] indefinite detention without trial. Julian could be held in Guantanamo Bay and tortured, sentenced to 45 years in a maximum security prison, or face the death penalty,” for “espionage,” in such secret proceedings.

Her phrase, “because the political cost of expelling Julian from the Embassy was too high” refers to the worry that this new President of Ecuador has, of his cooperating with the U.S. regime’s demands and thereby basically ceding sovereignty to those foreigners (the rulers of the U.S.), regarding the Ecuadorian citizen, Assange.

This conservative new President of Ecuador, who has replaced the progressive President who had granted Assange protection, is obviously doing all that he can to comply with U.S. President Trump and the U.S. Congress’s demand for Assange either to die soon inside the Embassy or else be transferred to the U.S. and basically just disappear, at Guantanamo or elsewhere. Ecuador’s President wants to do this in such a way that Ecuador’s voters won’t blame him for it, and that he’ll thus be able to be re-elected. This is the type of deal he apparently has reached with Trump’s agent, Pence. It’s all secret, but the evidence on this much of what was secretly agreed-to seems clear. There are likely other details of the agreement that cannot, as yet, be conclusively inferred from the subsequent events, but this much can.

Basically, Trump has arranged for Assange to be eliminated either by illness that’s imposed by his Ecuadorean agent, or else by Assange’s own suicide resulting from that “torture,” or else by America’s own criminal-justice system. If this elimination happens inside the Ecuadorean Embassy in London, then that would be optimal for America’s President and Congress; but, if it instead happens on U.S. soil, then that would be optimal for Ecuador’s President. Apparently, America’s President thinks that his subjects, the American people, will become sufficiently hostile toward Assange so that even if Assange disappears or is executed inside the United States, this President will be able to retain his supporters. Trump, of course, needs his supporters, but this is a gamble that he has now clearly taken. This much is clear, even though the rest of the secret agreement that was reached between Pence and Ecuador’s President is not.

Scooter Libby, who had arranged for the smearing of Valerie Plame who had tried to prevent the illegal and deceit-based 2003 invasion of Iraq, was sentenced to 30 months but never spent even a day in prison, and U.S. President Trump finally went so far as to grant him a complete pardon, on 13 April 2018. (The carefully researched docudrama “Fair Game” covered well the Plame-incident.) Libby had overseen the career-destruction of a courageous CIA agent, Plame, who had done the right thing and gotten fired for it; and Trump pardoned Libby, thus retroactively endorsing the lie-based invasion of Iraq in 2003. By contrast, Trump is determined to get Julian Assange killed or otherwise eliminated, and even Democrats in Congress are pushing for him to get that done. The new President of Ecuador is doing their bidding. Without pressure from the U.S. Government, Assange would already be a free man. Thus, either Assange will die (be murdered) soon inside the Embassy, or else he will disappear and be smeared in the press under U.S. control. And, of course, this is being done in such a way that no one will be prosecuted for the murder or false-imprisonment. Trump had promised to “clean the swamp,” but as soon as he was elected, he abandoned that pretense; and, as President, he has been bipartisan on that matter, to hide the crimes of the bipartisan U.S. Government, and he is remarkably similar in policy to his immediate predecessors, whom he had severely criticized while he was running for the Presidency.

In any event, the destruction of Assange has clearly been arranged for, at the highest levels of the U.S. Government, just as the destruction of Jamal Khashoggi was by Saudi Arabia’s Government; and, just like in Khashoggi’s case, the nation’s ruler controls the prosecutors and can therefore do whatever he chooses to do that the rest of the nation’s aristocracy consider to be acceptable.

The assault against truth isn’t only against Assange, but it is instead also closing down many of the best, most courageous, independent news sites, such as washingtonsblog. However, in Assange’s case, the penalty for having a firm commitment to truth has been especially excruciating and will almost certainly end in his premature death. This is simply the reality. Because of the system under which we live, a 100% commitment to truth is now a clear pathway to oblivion. Assange is experiencing this reality to the fullest. That’s what’s happening here.

—————

Investigative historian Eric Zuesse is the author, most recently, of  They’re Not Even Close: The Democratic vs. Republican Economic Records, 1910-2010, and of  CHRIST’S VENTRILOQUISTS: The Event that Created Christianity.

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Libya’s Peace Process Dies in Palermo

The best the Palermo negotiators could come up with at the end was a bland statement declaring their hope that sometime in the future all the Libyan forces will meet to sort out their differences.

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Authored by Richard Galustian for the Ron Paul Institute for Peace and Prosperity:


“Resounding flop” was the verdict of Italy’s former prime minister Matteo Renzi on this week’s Libya peace conference held in Palermo. He’s not wrong. The conference hosted by Italy’s new government achieved the remarkable feat of making Libya’s tensions worse, not better. Acrimony broke out between the parties, and Turkey’s delegation walked out, its vice president Fuat Oktay accusing unnamed States of trying to “hijack the process.”

Some sources in Palermo suggested, yet to be verified, that the US thought the Conference was not too bad: a joke if true.

Moreover the mystery we might ask is what “process” is there to hijack? Because the truth is, the peace plan the conference was supporting is already dead.

That plan was the brainchild of the United Nations, launched more than a year ago with the aim of ending Libya’s split between warring Eastern and Western governments with elections in December.

Even before the first delegates set foot in the pleasant Sicilian city of Palermo this week, the UN admitted the election date of December 10 they had decided to scrap.

The eastern government, led by the parliament in Tobruk, had made moves in the summer to organize a referendum on a new constitution which would govern the elections. But no referendum was held, and most Libyans agree it would be pointless because Tripoli, home to a third of the country’s population, is under the iron grip of multiple warring militias who have the firepower to defy any new elected government. Hours after the delegates left Palermo, those militias began a new bout of fighting in the Tripoli suburbs.

The best the Palermo negotiators could come up with at the end of the talks was a bland statement declaring their hope that sometime in the future all the Libyan forces will meet in a grand conference to sort out their differences – and this after four years of civil war. To say that chances of this are slim is an understatement.

Dominating the Palermo talks, and indeed Libya’s political landscape, was and is Field Marshall Khalifa Haftar, the commander of the Libyan National Army, the country’s most powerful formation. In four years, the LNA has secured Libya’s key oil fields and Benghazi, its second city, ridding most of the east Libya of Islamist militias.

Haftar met reluctantly negotiators in Palermo, but insisted he was not part of the talks process. The Italian government press office said Haftar was not having dinner with the other participants nor joining them for talks. Haftar specifically opposed the presence of the Muslim Brotherhood champion, Qatar, at the event along with Turkey.

Haftar clearly only attended because he had a few days before visiting Moscow – which sent to Sicily Russia’s Prime Minister Dmitry Medvedev – and because also of Egyptian President Sisi’s presence along with his allies.

Possibly Haftar was simply fed up. Twice in the past two years he has attended previous peace talks, hosted each time in Paris, giving the nod to declarations that Libya’s militias would dissolve. Yet the militias remain as strong as ever in Tripoli.

Haftar is detested by the militias and the Muslim Brotherhood (MB) but supported by a large segment of the population – 68 percent, according to an opinion poll by America’s USAID. His popularity is based on a single policy – his demand that security be in the hands of regular police and military, not the militias.

Not everyone is happy, certainly not Turkey, which is backing Islamist, MB and Misratan forces in western Libya who detest Haftar. Yet Turkey’s greatest statesman, the great Kamal Ataturk, was a champion of secularism: After the collapse of the Ottoman Empire following World War One Turkey faced the prospect of utter disintegration, and it was Attaturk who rose to the challenge, defending the country’s borders, while ordering that the mullahs, while responsible for spiritual welfare, have no political power.

Political Islam is not popular in Libya either. Libya is a Muslim country, its people know their faith, and most want government to be decided through the ballot box.

The problem for Libya is what happens next with the peace process broken. Haftar has in the past threatened to move on Tripoli and rid the militias by force if they refuse to dissolve, and it may come to that – a fierce escalation of the civil war.

The second possibility is that Libya will split. The east is, thanks to the LNA, militarily secure. It also controls two thirds of the country’s oil and operates as a separate entity, down to it banknotes, which are printed in Russia while the Tripoli government’s are printed in Britain. A formal split would be an economic boon for the lightly populated east, but a disaster for Tripolitania, its population losing most of the oil, its only source of export income.

Yet with the failure of peace talks, and no sign of Tripoli militias dissolving, military escalation or breakup seem more likely than ever.

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