Michael Parenti: What the US did to Iraq prior to 9-11 and why the US did it

Defying the Sanctions: A Flight to Iraq
January 2001
[written 8 months before 9-11]

Upon disembarking from the Olympic Airways plane that brought me to Iraq in November 2000, I could see some of the effects of the Western-imposed sanctions. What was once a busy international airport is now a desolate strip. Two lonely planes sit as if abandoned on the vast tarmac. There are no airport personnel to speak of, no baggage carts or utility vehicles, not even any visible security. On a wall inside the empty terminal is a handmade sign in Arabic and imperfect English; it reads: “Down USA.” A large portrait of Saddam Hussein gazes down upon us. His image can be found along the road to the city, in the hotel, and on various public buildings.

 I am part of an international delegation of Greeks, Britons, Canadians, and Americans. Included are journalists, peace advocates, and members of the Greek parliament. Margarita Papandreou, former first lady of Greece and devoted political activist, leads the group. It is an especially moving moment for her. It has been her dream for ten years to be able to fly directly to Baghdad. And ours is the first flight to Iraq by a state-owned commercial airline from the West in defiance of US/UN sanctions. The Iraqi officials who greet us do not try to hide how pleased they are about our arrival. “Your presence is a statement against the inhuman means used against us. Iraq is a prosperous country capable of fulfilling the basic needs of the people but we are being prevented from doing so by the UN sanctions,” one of them says. “Feel free to go anywhere and speak to anyone.”

Killing Iraq

Most Americans do not know that Saddam Hussein was put into power by a CIA-engineered coup to stop the Iraqi revolution—which he did by massacring the communists and the left-wing of his own Baath party. But in time Saddam proved to be a disappointment to his mentors in Washington. Instead of becoming the comprador ruler who opened his country to free-market capital penetration on terms that were thoroughly favorable to Western investors, he devoted a substantial portion of Iraq’s export earnings to human services and economic development. In 1972, Iraq nationalized its oil industry, and was immediately denounced by US leaders as a “terrorist” nation.

Before the six weeks of air attacks known as the Gulf War (which ended in February 1991), Iraq’s standard of living was the highest in the Middle East. Iraqis enjoyed free medical care and free education. Literacy had reached about 80 percent. Most Iraqi youth were educated up through secondary school. University students of both genders received scholarships to study at home and abroad. In the eyes of Western leaders, Saddam was that penultimate evil, an economic nationalist, little better than a communist. He would have to be taught a lesson. His country needed to be bombed back into the Third World from which it was emerging.

The high explosive tonnage delivered upon Iraq during the Gulf War was more than twice the combined Allied air offensive of World War II. Within the first few days of bombing, there was no running water in the country. More than 90 percent of Iraq’s electrical capacity was destroyed. Its telecommunication systems, including television and radio stations, were demolished, as were its flood control, irrigation, sewage treatment, water purification, and hydroelectic systems. Farm herds and poultry farms suffered heavy losses. US planes burned wheat and grain fields with incendiary bombs, and hit hundreds of schools, hospitals, rail stations, bus stations, air-raid shelters, mosques, and historic sites. Factories that produced textiles, cement, chlorine, petrochemicals, and phosphate were hit repeatedly. So were the refineries, pipelines, and storage tanks of Iraq’s oil industry. Iraqi civilians and soldiers fleeing Kuwait were slaughtered by the thousands on what became known as the “Highway of Death.” Also massacred were Iraqi soldiers who tried to surrender to US forces on a number of occasions. In all, some 200,000 Iraqis were killed in those six weeks. Nearly all US planes, Ramsey Clark notes, “employed laser-guided depleted-uranium missiles, leaving 900 tons of radioactive waste spread over much of Iraq with no concern for the consequences to future life.”

Our delegation got a grim glimpse of the war’s aftermath. We visited the Al-Amerya bomb shelter where over four hundred civilians, mostly women and children were incinerated by two US missiles. Blackened ossified body parts, including a child’s hand can still be seen melded into the ceiling. Along one wall is the irradiated shadow of a woman holding a baby in her arms, a ghoulish fresco created by the heat blast of the missiles. The shadow of another figure can be seen on the cement floor. The shelter has been made into a shrine, with candles, plastic flowers, and pictures of the victims. The guide notes that US reconnaissance saw civilians using the shelter on a nightly basis during the early days of the bombing, yet it was still chosen as a target.

In the ten years of “peace” since February 1991, an additional 400 tons of explosives have been dropped on Iraq, three hundred people have been killed and many hundreds wounded. The United States and United Kingdom, with the participation of France, imposed a no-fly zone over the northern region of the country, ostensibly to protect the Kurds. This newly found humanitarian concern did not extend to the Kurds residing on the Turkish side of the border. The next year, another no-fly zone was imposed in the south, reputedly to protect Shiite settlements, effectively dividing the country into three parts. By 1998, the French had withdrawn from both zones, but US and British air attacks on military and civilian targets have continued almost on a daily basis, including strafing raids against Iraqi agricultural developments. Baghdad’s repeated protests to the United Nations have gone unheeded. Since 1998, three members of the Security Council—Russia, China, and France; and various nonpermanent members have condemned the raids as illegal and unauthorized by the Security Council.

To drive the point home to us, on the second day of our visit, US warplanes fired four missiles at the village of Hmaidi in the southern province of Basra, one of which struck the Ali Al-Hayaini school, wounding four children and three teachers. Several homes were also hit.

Picking Up the Pieces

Despite the years of bombings and the even greater toll on human life taken by the sanctions, visitors to Baghdad do not see a city in ruins. Much of the wreckage has been cleared away, much has been repaired. In our hotel there is running water throughout the day, hot water in the morning. Various streets in Baghdad are lined with little stores, surprisingly well-stocked with household appliances, hardware goods, furniture, and clothes (much of which has a second-hand look).

We see no derelicts or homeless people on the streets of Baghdad, no prostitutes or ragged bands of abandoned children, though there are occasional youngsters eager to shine shoes or solicit spare change. But even they seem to be well-fed and decently clothed. Obviously, despite all the destruction wrought by the sanctions, Iraq still has not undergone sufficient free-market “structural adjustment.”

A British member of our delegation who has made more than a dozen trips to Iraq over the past decade sees some changes for the better. A few years ago, the cars all looked like “death traps”; tires were patched beyond recognition, windows were cracked, and doors were falling off the hinges, she tells me. Now the Iraqis seem to have procured vehicles that are in better repair. In addition, large swaths of the city used to be shrouded in complete darkness; now there are lights just about everywhere, though mostly on the dim side. There are more shops with more goods, “although 70 percent of the people can’t buy anything.” Still, “people used to feel hopelessly isolated and now there seems to be more hope and better morale,”[and the worst was to come in two years — Shock and Awe] she concludes.

The Silent Cries of Children

 Not everyone shows better morale. It is said that the most depressed officials in Iraq can be found in the Ministry of Health, not surprisingly given the tragedies they confront. Aside from the 200,000 Iraqis slaughtered during the Gulf War, an additional 1.5 million civilians have died since 1991 as a result of the sanctions, according to UNICEF reports and the Red Cross, many from what normally would be treatable and curable illnesses. Of these victims, 600,000 are children under 5 years of age. Maternal mortality rates have more than doubled, and 70 percent of Iraqi women suffer from anemia. Given the tons of depleted uranium used during the Allied attacks, cancer rates have skyrocketed: the childhood leukemia rate is now the highest in the world. Most of the leukemia increase is in southern Iraq where the bombing was heaviest.

We visit a children’s hospital in Baghdad. The familiar sight of skeletal-looking infants, racked with diseases that make it impossible for them to retain or digest nutrients are no longer evident. Such dying children still can be found in parts of Iraq but not at this hospital. Instead we encounter something equally ominous: children suffering from acute forms of multiple malignancies. Shrouded mothers stand by the beds like mournful sentinels, their eyes filled with unspoken grief. The journalists, photographers, and TV crews in our delegation descend upon these sad people, clicking and flashing away with that intrusive irreverence that is the press’s modus operandi. A mother weeps quietly against the wall. One of the doomed children smiles up at us—which almost causes me to start weeping.

Things are getting worse, a doctor tells us; more and more children are turning up with leukemia. The medical staff is overwhelmed. One doctor says he sees three hundred patients in three hours: “We cannot treat them properly.” Some of the hospital rooms are lined with incubators that contain what look like premature births. These turn out to be infants who are the products of depleted uranium, born with serious deformities and malfunctions, urgently in need of surgical intervention. The hospital lacks the special instruments needed to operate on infants, not to mention ordinary medications, anesthetics, antibiotics, bandages, intravenous sets, and diagnostic equipment. Iraq’s excellent national health care system, with its universal coverage, is now in shambles because of the embargo.

Things were supposed to get better when the sanctions were eased in 1996, allowing Iraq to make “oil for food” sales. Since then, $32 billion in oil was sold abroad but only $8 billion worth of materials has reached Iraq, less than $5 or $6 a month per person. Another $10 billion has been allocated for “war compensation,” in effect forcing the Iraqis to pay the costs incurred by the UN aggressors when destroying Iraq. Another $11 billion in cash sits in Western banks. Worse still, many essential things needed to rebuild the infrastructure—including the technological, medical, educational, communicational, and industrial systems of the nation—are still not available. Under the deleterious “dual use” doctrine, many vital commodities and materials needed for humanitarian and civilian purposes are banned because they conceivably could also be used by the military: computers, components for electrical transmitters and water pumps, even glycerin tablets needed for heart ailments. (It would take millions of glycerin tablets mixed with nitrogen to make one small explosive.)

The Foreign Minister Speaks

 Iraq’s Minister of Foreign Affairs, Tariq Aziz, a calm congenial man, meets with our delegation. [Tariq Aziz died June 5, 2015, in prison, convicted on trumped up charges. His abusive treatment in prison included being denied visitation, adequate food, and access to medication. His imprisonment and death at the hands of the U.S. and “interim” Iraq vassal government are chronicled here] In clear and precise English, he makes the following points: Before 1990, the United Nations had placed sanctions upon only a few nations, such as Rhodesia and South Africa, on a voluntary basis. “It was left to the countries themselves and the world to implement those sanctions or not implement them.” Hence the effects were mild. But since 1990,US leaders with their so-called New World Order have imposed the severest embargo, “encircling Iraq with warships and airplanes that prevent even ordinary trips and ordinary cargoes.” As with the sanctions against Yugoslavia, the minister notes, this policy has created a lot of suffering. “Therefore, when we say that this embargo is an international issue, it’s not just anti-American propaganda. It’s the truth. And it is quit horrid.” The collapse of the Soviet Union has created a different international scene, he adds. With the end of the Cold War, “a new hot war and warm war” has been imposed on many nations, with Iraq as a prime target.

 In spite of all the reports made by United Nations agencies themselves “informing the Security Council about the sufferings of the Iraqi people, and the deaths of so many children, and the deterioration of the Iraqi economy,” Aziz reminds us, there is no likelihood of any change in UN policy on sanctions because of the Security Council veto wielded by the United States and Britain. Still the people of Iraq have not been merely passive victims. They have “refused to yield to American pressure and American blackmail.” In addition, there is “the will of other peoples, the free women and men in this world” who refuse to support injustice and imperialism. After ten years, US propaganda “is wearing thin,” and “a lot of facts have become known to the peoples of the world” bringing a dramatic increase in support for Iraq—as measured by the growing number of air flights from various nations in defiance of the sanctions. Not only Iraq but its trading partners have sustained substantial commercial losses because of the ten-year embargo. In 2000, more than 1,500 international companies from forty-five countries participated in the Iraqi trade fair. So, for both moral and legitimate commercial reasons, “the embargo is beginning to crack.”

Ten years ago, concludes Aziz, we were told: history is over; from now on we will live according to the diktat of US leaders in a Pax Americana. And those who do not accept this are “rogue nations.” But US leaders are beginning to realize “that this new imperialism is not working. . . . Despite all its power, the United States is not God. It’s not the Almighty. It’s an imperialist force.” And “when a nation succeeds in refusing the dictate of imperialists, [and] succeeds in preserving its sovereignty, and its independence and dignity, that is an achievement.” Aziz’s closing plea was that we not rely on “the manipulated media” of the United States, Britain and Canada. “One of the basic human rights is that you have the right to make your own judgment, not to buy judgments made by others that might not be honest and true. So I hope that you will use this short visit to know what is going on in this country and what the realities are.”

The “Realities”

On the closing day of our trip, members of our delegation lay plans to carry on the battle against sanctions. These include: lobbying the UN Compensation Committee, which refuses to release the $11 billion in Iraqi oil-for-food earnings; joining with Women’s International League for Peace and Freedom, and other NGOs to lobby the UN Security Council; lobbying the UN Human Rights Commission in Geneva and the parliament of the European Union; lobbying elected representatives and religious leaders in various countries; and sending messages through the Internet.

The sanctions wall is not about to crumble but it is showing cracks. In 1998 Scott Ritter, chief UN weapons inspector in Iraq since 1991, resigned and accused the US government of undercutting UN weapons inspectors. Meanwhile US leaders and the press continued to portray Iraq as bent on nuclear aggression, despite the fact that Baghdad cooperated fully with UN inspectors who scoured the country in a vain search for weapons of mass destruction or the capacity to build them.

Also in 1998, Denis Halliday, UN Assistant Secretary General and Humanitarian Coordinator in Iraq, resigned in protest of what the sanctions were doing to that country. In early 2000, Hans von Sponeck, UN Humanitarian Coordinator in Iraq and Jutta Burghart, head of UN World Food Program in Baghdad, resigned in protest of the sanctions.

Still, the State Department and the US media continue to blame Saddam, not the sanctions, for the misery endured by the Iraqi people. The claim that sanctions hurt ordinary Iraqis “is outweighed by the sad truth that Saddam Hussein is determined to keep portions of his population in poverty,” intones a Washington Post editorial reprinted in the International Herald Tribune (November 14, 2000). The Iraqi leader, the Post assures us, is a “warmongering dictator” who needs to be contained by a still more severe application of sanctions. Upon being selected as the new US Secretary of State in December 2000, General Colin Powell echoed this position, announcing that he would strive to “reenergize” the sanctions against Iraq.

 The Iraqi leadership could turn US policy completely around by uttering just two magic words: “free market.” All they would have to do is invite the IMF and World Bank into Iraq, eliminate free education and free medical care, abolish the minimal food ration that goes to every Iraqi, abolish the housing subsidies and transportation subsidies, and hand over the country’s oil industry to the corporate cartels. To lift the sanctions, Iraq must surrender to the tender mercies of the free-market paradise as Yugoslavia has recently done under the newly minted, Western-sponsored president, Kostunica, and as so many other nations have done. Until then, Iraq will continue to be designated a “rogue nation” by those policymakers in Washington who themselves are the meanest profit-driven, power-mongering rogues on earth.

*     *     * Michael Parenti’s most recent books are To Kill a Nation: The Attack on Yugoslavia (Verso) and History as Mystery (City Lights).


http://www.michaelparenti.org/DefyingSanctions.html

Russians denounce new sanctions as “the height of absurdity”

From Fort Russ

September 17, 2015 –
TASS –
Translated for Fort Russ by J. Arnoldski

“The reaction of Russian politicians and public figures to the expansion of Ukrainian sanctions”

On September 16, President of Ukraine Petr Poroshenko signed a decree on expanding the list of sanctions against Russia. The president reported that 388 individuals and 90 entities were included in the list adopted by the Council of National Security and Defense of Ukraine. 

The Russian defense minister, Sergey Shoigu, the head of Chechnya, Ramzan Kadyrov, deputy of the State Duma and head of the Commitee on International Affairs, Alexey Pushkov, Minister of Agriculture Alexander Tkachev, deputy of the State Duma from the Russian Communist Party Valery Rashkin, State Duma speaker Sergey Naryshkin, Minister of Communications Nikolay Nikiforov, and deputy of the State Duma and leader of “A Just Russia” Sergey Mironov ended up on the sanctions list of Ukraine. 

Among the companies included in the list, Aeroflot, Gazpromavia, Bank of Moscow, and anti-virus software manufacturer Kaspersky Lab and its subsidiary in Ukraine are listed. 

In addition, the sanctions list includes media representatives.

Silence the mouths of human rights defenders”

Member of the presidential council on the development of civil society and human rights, Alexander Brod, believes his inclusion in the sanctions list by Ukrainian authorities is an attempt to silence human rights defenders. 

Earlier, human rights defenders weren’t on the list. There were journalists and cultural figures. Now they’re turning towards human rights defenders. I think this will be a sign for the international human rights community that the Kiev regime is silencing human rights defenders,” Brod said. 

Fascists are fascists”

Deputy Chairman of the Central Committee of the Communist Party of the Russian Federation, Valery Rashkin, believes that the sanctions imposed against him by the Kiev regime prove that he is is “going down the right path.”

This not only doesn’t worry me, it means that I’m doing everything right. If fascist thugs condemn me and introduce some lists, this means I’m going down the right path,” Rashkin told TASS, commenting on sanctions introduced against him.

If I collect humanitarian aid for Donbass because children are dying from hunger, and if I took issue with the property of Poroshenko and ensured that his business was nationalized in Russia (the profits from this business are reaped by fascist elements in Ukraine), then I understand why I ended up on the sanctions list. Fascists are fascists,” he added. 

On this note, he stressed that he stands for friendship and good, neighborly relations with the Ukrainian people. “But this seems to contradict the approach of Poroshenko and his team,” Rashkin added.

This is a political and state outrage”

The head of the Moscow journalists union, Pavel Gusev, called the sanctions imposed against Russian journalists a political and state outrage. 

I believe that this is a political and state outrage when there is a war against journalists,” Gusev said, “Yes, there are disagreements at the political level, and there is a hatred of Russian politicians and companies, but journalists – this is a totally different profession.”

Continue reading

Historic interview with Tariq Aziz: “It’s not ‘regime change’ America wants, but ‘region change’…The Embargo also extends to dialogue.”

“Madam Felicity, when I was ten years old, I was handing out leaflets in the streets of Baghdad, putting them through people’s doors, to stop the British stealing our oil. I am not about to give up on Iraq now.”
Former Iraq Deputy Prime Minister and Foreign Minister Tariq Aziz died of a heart attack in prison June 5, 2015.
Global Research, June 27, 2015

First published by Middle East International, 21st May 1999.

Author’s note: In context, this interview took place during the most draconian US-UK led UN sanctions ever imposed on a country, denying all essential to modern life, which had been in place for nine years and nine months.

Tariq Aziz doesn’t hide his anger and frustration when speaking of his country’s plight:

“This is a region of conflicts, upheavals, revolutions, but this is the first time such rigid and comprehensive sanctions have been imposed anywhere.

“Prior to the embargo we had a high standard of free education from primary school to university and free health care. But one cannot live alone in the world. Nations need to trade, to buy and sell. There has been a sharp deterioration in health, social services, electricity, clean water.”

Seated in his Baghdad office, Iraq’s Deputy Prime Minister lists countless further examples of the misery inflicted by sanctions, from how the collapse of the Dinar has slashed the income of once well paid professionals to the equivalent of $3 a month, to the way the world’s former number one date producer is prohibited from selling its crop.

Aziz stresses that increasing the amount of oil that Iraq is allowed to sell under the oil-for-food arrangement to $5.2 billion every six months does nothing to alleviate the situation: “Our oil industry cannot do it”, he says.

“They need new equipment, parts, extensive refurbishment. Even before recent further damage by bombing, we could pump less than $2billion worth each six months. Forty percent of that goes to the UN. We are still paying for UNSCOM* which destroyed hundreds of factories and equipment, a number of whose Members are now exposed as spies. We also paying reparations to Kuwait and so on. We have nearly twenty three million inhabitants. We need  $16-18 billion a year plus export of commodities. Yet we are not allowed agricultural equipment to produce our own food, so we have to import.”

Ironically it was the UN Food and Agricultural Organization which advised Iraq that importing the bulk of its food needs made better economic sense than trying to become self-reliant. In 1993, just  three years in to the embargo, the (UN) World Food Programme warned that: “All the pre-famine indicators are now in place” in Iraq.

He recalls how James Baker ** told him during their famous pre-war meeting in Geneva that if Iraq did not comply with US demands: “We will reduce you to the pre-industrial age.” “That remains the objective today”, he asserts.

“In March ’91, we were left with no telephones or electricity, no clean water, with the refineries either crippled or damaged, almost all the bridges bombed, thus the country virtually divided. But we rebuilt and restored to a certain degree. The government remained. But now there are almost daily bombardments with the same objective.

“In the December (1998) aggression, the US ignored the (UN) Security Council. Fifteen Members were formally meeting (to discuss Iraq) and the bombs were already falling.”

Aziz contrasts Washingtons’s refusal to talk to Baghdad with the increasingly receptive ears grievance against sanctions have been falling on in other world capitals. “When we go to the US we are not allowed to leave New York. Congressmen, old friends, must come to New York to see us. Even a minor official at the UN is not allowed a cup of tea in the lobby with an Iraqi official. The Embargo also extends to dialogue. Dialogue is the golden rule to finding solutions. Yet the US accuses us of being ‘undemocratic’ “, he says.

“Recently, President Chirac was denied permission to discuss Iraq with (President) Clinton, yet Paris is deeply involved and I can talk at any level with them, the Russians, the Chinese. Big delegations visit here and I recently travelled to Spain, Italy, Belgium and France. But sanctions are genocide. If the US wants to impose military sanctions on Iraq, let them do it, but don’t deprive our children of milk, health, medicine.”

He has no doubt why the US attitude:

“ Iraq has the second largest oil reserves – actually the first. You can find oil wherever you drill in Iraq. The US wishes to dominate oil, Saudi Arabia and the Gulf. They want to keep us dormant, to bring in a pro-US government and present that as bringing about ‘democracy’ and ‘human rights.’ We are a ‘threat to peace and stability’ and a ‘threat to the region.’ ”

“Yet Saudi Arabia, run by just one man, is the darling of Washington. The irony is that the countries of the region are paying dearly, Saudi and Kuwait are paying – while we are the perceived ‘threat’ – for Americans to be on their soil.”

But doesn’t Iraq indeed pose a threat to its neighbours? What about human rights? Halabja? The Kurds? He replies that Iraq too feels threatened by US bases in the region, that the Kurds have a better deal than their Turkish counterparts, enjoying autonomy, official recognition and cultural rights. The truth about such matters, he intimates, is in the eye of the beholder.

“I have read stories in The Times that President Saddam shoots people in Cabinet meetings. How could he survive? Iraqis are quick to revolt as they did in 1921, 1931, 1947, 1957 and 1968.”

So how is this impasse to be resolved?

“Why don’t a cross-party group of US Congressmen come here, address our parliament, engage in dialogue, meet people? Misunderstandings arise from lack of dialogue. Even our Bishop” – Aziz is a Chaldean Christian – “cannot get in to the US to travel with a delegation. He has had to apply for a Vatican passport

“Last year, when I received an invitation from the Oxford Union, my visa was turned down by the UK. But shortly I am going to Ireland at the invitation of University College Dublin and they are connecting with the Oxford Union by TV, so we will belatedly have our debate – three ways.

As I rose to leave he said: “It is not ‘regime change’ America wants, but ‘region change.’ “

Then: “Madam Felicity, when I was ten years old, I was handing out leaflets in the streets of Baghdad, putting them through people’s doors, to stop the British stealing our oil. I am not about to give up on Iraq now.”

First published by Middle East International, 21st May 1999.

http://www.globalresearch.ca/its-not-regime-change-america-wants-but-region-change-historic-interview-with-tariq-aziz/5458748

Italian official says anti-Russian sanctions may be lifted

From Sputnik News, April 29, 2015

Ukraine’s Embassy in Rome has sent an official request to the Italian Foreign Ministry for comment on a recent statement by an official from the Italian Ministry of Economy and Finances about Italy possibly lifting anti-Russian sanctions in the near future, Ukrainian newspaper Evropeyskaya Pravda reported, citing a diplomatic source.

German Foreign Minister Frank-Walter Steinmeier, second left, welcomes his counterparts from France, Laurent Fabius, right, Russia, Sergey Lavrov, left, and Ukraine, Pavlo Klimkin, second right, for a meeting on the situation in Ukraine in Berlin, Germany, Monday, Jan. 12, 2015.
According to the newspaper, the diplomatic demarche, signed by Ukrainian Ambassador to Italy Heorhiy Chernyavskyi, was sent to the Italian Foreign Ministry on Tuesday. In the document, Chernyavskyi is said express doubts about the competence of Federico Eichberg, the Head of a Task Force on Foreign Investments at the Ministry of Economic Development. The Ambassador is also said to have proposed that the Foreign Ministry “respond to statements by Eichberg which directly contradict the government’s official position.”

Speaking at an Italian business conference in Milan earlier this week, Eichberg stated that Italy will not support the continuation of economic sanctions directed against Russia. “Italy has made it clear since February that the Council of Ministers will not vote for the extension of sanctions,” the official noted.

Russian analysts have commented that the Ukrainian Foreign Ministry’s protest seems to have come at rather an odd time, given that top Italian officials up to the ministerial level have been complaining about sanctions for several months now.

View image on Twitter

the Lemniscat @theLemniscat

Sanctions hurt Europe more than Russia Sanctions cost Italy over €5bn & 300,000 jobs http://www.eurasianbusinessbriefing.com/sanctions-cost-italy-over-e5bn-bank-chief-estimates/ 
3:18 AM – 17 Apr 2015
———————————————————————

On Monday, Italian Minister of Economy and Finance Pier Carlo Padoan told reporters at a press conference that he “sincerely hope[s] that we will come to canceling [the] sanctions as soon as possible, and that economic partnership between Europe and Russia, as well as Italy and Russia will continue to grow.”

Late last month, Italian Foreign Minister Paolo Gentiloni told German media that the EU is too fixated on the Ukrainian crisis, for which it has blamed Russia, while ignoring other, equally important problems, adding that he has recommended that Prime Minister Matteo Renzi restore relations with Moscow, including the “partial lifting of sanctions.”

Flags of Russia, EU, France and coat of arms of Nice on the city's promenade
Moreover, over the past year, Italian media have complained vigorously about the economic losses the country has suffered as a result of the sanctions policy. Italian businessmen last month stated that in 2014, trade turnover between the countries fell by 17 percent, with exports falling by 11.6 percent. The food and textile industries were most heavily hit, with supplies decreasing by 38 and 16 percent, respectively. In February, Banca Intesa estimated that the sanctions have caused 5.3 billion euros worth of losses for the Italian economy.

Already teetering on the brink of crisis, Europe’s economies have been dealt a heavy blow by sanctions and Russian countersanctions initiated last year over the Ukraine crisis.

http://sputniknews.com/europe/20150429/1021534129.html

Western sanctions and Russian perceptions

From The Vineyard of the Saker
February 19, 2015

I parse the Russian media (corporate and social) on a daily basis and I am always amazed at the completely different way the issue of western sanctions is discussed.  I think that it is important and useful for me to share this with those of you who do not speak Russian.

First, nobody in Russia believes that the sanctions will be lifted.  Nobody.  Of course, all the Russian politicians say that sanctions are wrong and not conducive to progress, but these are statements for external consumption.  In interviews for the Russian media or on talk shows, there is a consensus that sanctions will never be lifted no matter what Russia does.

Second, nobody in Russia believes that sanctions are a reaction to Crimea or to the Russian involvement in the Donbass.  Nobody.  There is a consensus that the Russian policy towards Crimea and the Donbass are not a cause, but a pretext for the sanctions.  The real cause of the sanctions is unanimously identified as what the Russians called the “process of sovereignization”, i.e. the fact that Russia is back, powerful and rich, and that she dares openly defy and disobey the “Axis of Kindness”.

Third, there is a consensus in Russia that the correct response to the sanctions is double: a) an external realignment of the Russian economy away from the West and b) internal reforms which will make Russia less dependent on oil exports and on the imports of various goods and technologies.

Fourth, nobody blames Putin for the sanctions or for the resulting hardships.  Everybody fully understands that Putin is hated by the West not for doing something wrong, but for doing something right.  In fact, Putin’s popularity is still at an all-time high.

Fifth, there is a wide agreement that the current Russian vulnerability is the result of past structural mistakes which now must be corrected, but nobody suggests that the return of Crimea to Russia or the Russian support for Novorussia were wrong or wrongly executed.

Finally, I would note that while Russia is ready for war, there is no bellicose mood at all.  Most Russians believe that the US/NATO/EU don’t have what it takes to directly attack Russia, they believe that the junta in Kiev is doomed and they believe that sending the Russian tanks to Kiev (or even Novorussia) would have been a mistake.

The above is very important because if you consider all these factors you can come to an absolutely unavoidable conclusion: western sanctions have exactly zero chance of achieving any change at all in Russian foreign policy and exactly zero chance of weakening the current regime.  In fact, if anything, these sanctions strengthen the Eurasian Sovereignists by allowing them to blame all the pain of economic reforms on the sanctions and they weaken the Atlantic Integrationists by making any overt support for, or association with, the West a huge political liability.

But the Eurocretins in Brussels don’t care I suppose, as long as they feel relevant or important, even if it is only in their heads.

The Saker

 

http://vineyardsaker.blogspot.ca/2015/02/western-sanctions-and-russian.html

Game with no rules: “Legal Imperialism” against Russia

By Valentin Katasonov
Posted on Strategic Culture Foundation

The term legal imperialism was coined in relation to the Argentina’s public debt. A New York court admitted a number of private claims to hand down a verdict. By a stroke of hand a judge increased the country’s debt up to $120 billion, according to experts’ estimates. The essence of legal imperialism is the support rendered by Anglo-Saxon legal system to financial vultures. 

Financial vultures vs. Argentina under the cover of American Themis

It all started in 2001. Argentina had to declare a sovereign default on around $130 billion. It was the biggest default on sovereign debt in history. The talks on restructuring started. As a result, the lenders agreed to write off the bulk of it (75%) and alter the conditions for paying off the rest. Some bondholders in possession of around $4 billion of Argentinian bonds refused to comply with the agreements’ terms. This included a small group of hedge funds holding over $1, 3 billion bonds headed by Elliott Management Corp. of billionaire Paul Singer. The hedge funds had already obtained the reputation of financial vultures. They acquired the bonds of the states that were on the verge of sovereign default or the ones already in default and then demanded 100% payments refusing to accept any compromises.

The audacity is supported by the fact that they normally win the trials demanding 100% payments on the bonds. The vultures went to the New York court to sue Argentina for the whole amount without restructuring. In October 2012 the United States Court of Appeals for the Second Circuit (New York) ruled on the pari passu clause that required they receive full payment. Moreover it forbade Argentina to pay off its restructured debts till it complies with the court’s decision. It was an uphill struggle for Argentina as it realized that other lenders would demand full payments too. The country was a hostage because its bonds were issued in compliance with the laws of the state of New York. According to the court’s decision, Argentina faced the June 31, 2014 deadline when it was supposed to pay the next installment of interest to all bondholders. No settlement had been reached so the leading rating agencies greatly lowered the country’s investment rating. The regular payments by Argentina to comply with the conditions of restructured debt were blocked by the court’s ruling. Argentina refuses to comply while the fines keep on growing each passing day…

Yukos case – first large-scale operation conducted by legal imperialism against Russia

The decision handed down by the Hague-based International Arbitration Court in the Russian oil giant Yukos case upon the claim of foreign shareholders is the example of how the legal imperialism works. Yukos ceased to exist as a legal entity in November 2007. For many years it avoided paying taxes. The taxes debts were to be paid in accordance with the court’s decision taken ten years ago. The company failed to comply. The bigger part of Yukos assets went to Russian oil producer Rosneft. Yukos foreign shareholders were disgruntled and went to courts abroad. Finally the claims were consolidated and sent to the Hague International Court. Initially the claimed sum was $114 billion (much more than the Yukos assets at the time of company’s liquidation). The Court let the claims be suspended, it was waiting for something. Finally it got what it was expecting. The West imposed sanctions against Russia in the spring of 2014. The court went back to the Yukos case and made public its verdict: Russia was to pay investors of the now non-existent company $50 billion – the largest compensation ever paid to shareholders upon an international arbitrary tribunal. According to the Court’s decision, Russia allegedly violated the Energy Charter Treaty and expropriated the company taking it from legal owners. A peculiar ruling in view that Russia never ratified the Charter. It is even more peculiar that the acquisition of the Yukos assets by another company is called «expropriation». In fact the verdict was an informal way of imposing sanctions by the West against Russia or the legal imperialism in force. As they say Russia was «put on the counter». After the ruling was announced Russia was given 180 days to comply. It did not. From January 15, the deadline set by the Court in the Hague for Russia to pay its fine, the fine will attract interest equal to the yield on a 10-year US Treasury bond. On January 15 the rate measured 1.91 percent. It means that the first year the sum of the debt will increase to $956, 6 million. That’s why over one billion dollars will surely be added to the $50 billion in 2015.

The Hague Court ruling: what does it mean for Russia?

The appeals made by Russian lawyers brought about no result. The Hague Court’s decision was not taken into account in the 2015 budget. The opposite side is very active. Right after the Court’s decision the former Yukos shareholders were involved in interesting activities – they started to look for Russian assets to be used to pay the debt. Russia’s state foreign assets could be confiscated. The Rosneft assets are to be arrested first, other companies with state participation (VTB, Gasprom, Aeroflot, VAB etc.) second and state agencies third. Embassies have immunity unlike ships visiting foreign ports.

Nobody cares about the fact that there are few companies with 100% state participation. There are non-state minority shareholders and the expropriation of companies’ assets would constitute a violation of their property rights. This is a classic game without rules. Actually there is one – punish Russia at any cost.

Legal imperialism as effective informal sanction against Russia

There have been three packages of sanctions introduced against Russia. Experts believe that the fourth will also come into effect. I don’t think so. The matter is – informal sanctions are more effective. There will be new claims to Russia, its companies and banks. Russian individuals and legal entities will be blacklisted; Western courts will hand down decisions on expropriating their foreign assets. The «case of Rotenberg» will be repeated. In the spring of 2014 Russian entrepreneur Arkady Rotenberg was blacklisted during the first wave of sanctions. In September Italian courts handed down a decision to arrest and confiscate his €30m assets. The March sanctions envisioned a ban on entering the territories of the countries that imposed sanctions and seizing the bank accounts of blacklisted persons. In the case of Rotenberg they took away his real estate that had no relation to business. I emphasize it to show that legal imperialism is a war without rules waged to satisfy the desire to plunder. In general, that’s how the algorithm of legal marauding works:

1) A Western vulture chooses an asset that belongs to a Russian legal entity of individual;

2) The vulture makes the Russian owner blacklisted;

3) A Western court hands down a decision to seize the asset;

4) The court’s decision is carried out; the asset becomes the property of the vulture.

Black lists as an instrument of legal imperialism

There are different grounds for being included into black lists: «suspicion of corruption involvement», «complicity in the annexation of Crimea and aggression against Ukraine», «the violation of human rights», «ties with terrorists» etc. The US has already introduced special laws, for instance, «the Magnitsky Act» allowing making lists of those who had connection to the death of lawyer Sergey Magnitsky. The lawyer represented the investment advisory firm Hermitage Capital Management. In 2008 he was arrested accused of few billion roubles tax evasion. He died in a prison cell. The West made him a martyr and responded with black lists.

Not the United States is mulling a possibility to turn the Magnitsky Act into a universal instrument of fighting Russia under the banner of defending human rights. It is planned to include into the list not only those who did anything wrong to Magnitsky, but also Alexey Navalny and his associates in «the struggle against totalitarianism». Washington wants to kill two birds with one stone: a) to exert political pressure on Russia; b) to reap benefit by seizing the assets of the persons included into the black lists (the Magnitsky Act envisions a ban on entry into the country and arrest of bank accounts). They want to get more out of it. It is considered to go beyond seizing the bank accounts but also spread the sanctions on bonds and equity.

(To be continued)

http://www.strategic-culture.org/news/2015/02/17/game-with-no-rules-legal-imperialism-against-russia-i.html

http://www.globalresearch.ca/game-with-no-rules-legal-imperialism-against-russia/5432153

German Foreign Minister says Germany reserves right to “act decisively against Ukrainian leadership, including sanctions”

From Fort Russ
2/9/2015

Ukrainian MFA summons Germany’s ambassador after Steinmeier mentions possible sanctions against Kiev

Translated from Russian by J.Hawk

Frank-Walter Steinmeier’s announcement that sanctions against Kiev are possible cause a furious reaction by the Ukrainian Ministry of Foreign Affairs.

The Foreign Minister Steinmeier made this statement in an interview with the ARD TV channel.

Steinmeier said that if no political decision is reached in Ukraine, the German government reserves the right to “act decisively against the Ukrainian leadership, up to and including sanctions”.

Germany’s ambassador to Ukraine Christoph Weil was forced to have a discussion with the Deputy Foreign Minister of Ukraine Andrey Olefirov due to Steinmeier’s statement.

Ukrainian diplomats are very sensitive to Western countries’ position on the ongoing crisis in the country. However, that sensitivity is very one-sided. In December Ukraine’s ambassador to the EU Andrey Eliseev similarly strongly reacted to Steinmeier’s statement that Ukraine is not wanted in NATO.

“Nobody can prevent Kiev from joining NATO!” was the Ukrainian diplomat’s reply. Germans, as usual, took no offense, and nobody summoned Ukraine’s ambassador to the German MFA.

J.Hawk’s Comment: Let’s not forget Steinmeier’s statement was made against the background of Angela Merkel’s visit to the US. It would seem that everyone knows what Poroshenko must do. It would seem that we now know what was agreed to between Putin, Merkel, and Hollande in Moscow, namely the federalization of Ukraine. It’s a solution that is consistent with the interests of both Russia and Germany, as the two countries in effect decide the zones of their respective zones of economic influence. It also has the benefit (from everyone’s perspective except the junta’s) of cutting the junta out of the equation to a significant degree. Poroshenko, for his part, is still insisting that the situation should revert to the original (and never implemented) Minsk agreement. “Finis Ucrainae” is still the most likely scenario, unless something snaps in Kiev. That Western leaders are, for the first time, suggesting the possibility of Kiev being sanctioned suggests Poroshenko is in process of graduating from “disappointment” to “liability.”

Source:
http://ruposters.ru/archives/11676

http://fortruss.blogspot.com/2015/02/germany-reserves-right-to-impose.html

Top Ukrainian general admits no Russian troops; no basis for sanctions against Russia or military aid to Ukraine

But of course, the U.S. and NATO, with their satellite photos and surveillance, knew this all along. That’s why the accusations never had proof attached. And it is also why the accusations about “rebels” shooting down MH-17 have gone so quiet.

Western leaders lie to provoke cataclysmic wars against innocent people. They support genocide. They create conditions for a nuclear war. What sort of people are they?
—————————————————————–

Eric Zuesse, January 31, 2014
Posted on Global Research

Ukraine’s top general is contradicting allegations by the Obama Administration and by his own Ukrainian Government, by saying that no Russian troops are fighting against the Ukrainian Government’s forces in the formerly Ukrainian, but now separatist, area, where the Ukrainian civil war is being waged.

Here is a screen-print of a google-chrome auto-translation of that statement:

The Chief of Staff of Ukraine’s Armed Forces, General Viktor Muzhenko, is saying, in that news-report, which is dated on Thursday January 29th, that the only Russian citizens who are fighting in the contested region, are residents in that region, or of Ukraine, and also some Russian citizens (and this does not deny that perhaps some of other countries’ citizens are fighting there, inasmuch as American mercenaries have already been noted to have been participating on the Ukrainian Government’s side), who “are members of illegal armed groups,” meaning fighters who are not paid by any government, but instead are just “individual citizens” (as opposed to foreign-government-paid ones). General Muzhenko also says, emphatically, that the “Ukrainian army is not fighting with the regular units of the Russian army.”

In other words: He is explicitly and clearly denying the very basis for the EU’s sanctions against Russia, and for the U.S.’s sanctions against Russia: all of the sanctions against Russia are based on the falsehood that Ukraine is fighting against “the regular units of the Russian army” — i.e., against the Russian-Government-controlled-and-trained fighting forces.

The allegation to the effect that Ukraine is instead fighting against “regular units of the Russian army” is the allegation that Vladimir Putin’s Russia has invaded Ukraine, and it is the entire basis for the economic sanctions that are in force against Russia.

Those sanctions should therefore be immediately removed, with apology, and with compensation being paid to all individuals who have been suffering them; and it is therefore incumbent upon the Russian Government to pursue, through all legally available channels, restitution, plus damages, against the perpetrators of that dangerous fraud — and the news reports have already made clear precisely whom those persons are, who have asserted, as public officials, what can only be considered to be major libel.

Otherwise, Ukraine’s top general should be fired, for asserting what he has just asserted.

If what General Muzhenko says is true, then he is a hero for having risked his entire career by having gone public with this courageous statement. And, if what he says is false, then he has no place heading Ukraine’s military.

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.

Source:
http://www.globalresearch.ca/ukrainian-government-no-russian-troops-are-fighting-against-us-sanctions-against-russia-based-on-falshoods/5428523