11 years on… UK gets what it was always after; Libya’s oil

29 Nov 2022

Source: Agencies

By Al Mayadeen English 

British oil giants BP and Shell are returning to the oil-rich north African country just over a decade after the UK took part in destabilizing the nation with the 2011 military intervention.

An oil and gas platform off the coast of Libya (Getty Images)

Libya’s National Oil Corporation (NOC) agreed last month for BP to begin drilling for and producing natural gas in a major project off the north African country’s coast.

The UK corporation, whose board of directors includes former MI6 chief Sir John Sawers, controls exploration areas in Libya nearly three times the size of Wales.

For a long time, British officials have sought to profit from oil in Libya, which contains 48 billion barrels of reserves – the largest oil resources in Africa, accounting for 3% of the world total.

BP is one of the few international oil and gas companies with exploration and production permits in Libya. Muammar Gaddafi nationalized its assets in Libya shortly after seizing power in a 1969 coup that called into question the entire British position in the country and region.

Following years of tensions between the two countries, Prime Minister Tony Blair met Gaddafi in 2004 and struck the so-called “Deal in the Desert,” which included a $900 million exploration and production agreement between BP and Libya’s NOC.

Read next: UN calls for Libya ceasefire after deadly clashes

BP re-entered the country in 2007, but its operations were halted by the 2011 NATO-backed aggression on the country, resulting in ousting Gaddafi and later killing him.

BP operations resumed after the signing of a memorandum of understanding in 2018 between the NOC and Eni, the Italian oil major, to resume exploration, with Eni as the oil field operator. BP CEO Bob Dudley hailed the agreement as an important step “toward returning to our work in Libya.”

The $8 billion BP-ENI project includes two exploration areas, one onshore in the Ghadames basin and one offshore in the Sirte basin, totaling approximately 54,000 km2. The Sirte basin concession alone encompasses an area larger than Belgium.

The UK’s other oil major, Shell, is also “preparing to return as a major player” in Libya, according to its statement in a confidential document. After putting its Libyan operations on hold in 2012, the corporation is now planning to explore new oil and gas fields in several blocks.

Oil bribery

In September of last year, a third British company, Petrofac, which provides engineering services to oil operations, was awarded a $100 million contract to help develop the Erawin oil field in Libya’s deep southwest.

Petrofac was at the time under investigation for bribery by the UK’s Serious Fraud Office (SFO). One of its executives, global head of sales David Lufkin, had already pleaded guilty in 2019 to 11 counts of bribery. 

The SFO convicted and fined Petrofac on seven counts of bribery between 2011 and 2017 in the month following the award of the Libya contract.

The company pleaded guilty to using agents to bribe officials to the tune of £32 million in order to win oil contracts in Iraq, Saudi Arabia, and the United Arab Emirates.

“A key feature of the case,” the SFO noted, “was the complex and deliberately opaque methods used by these senior executives to pay agents across borders, disguising payments through sub-contractors, creating fake contracts for fictitious services and, in some cases, passing bribes through more than one agent and one country, to disguise their actions.”

It works with BP in several countries around the world, including Iraq, Azerbaijan, and Oman, and in the North Sea.

Backed by UK government

All three British firms re-entering Libya have close ties to the British government. During some of the years when Petrofac paid bribes, the company was led by Ayman Asfari, who donated nearly £800,000 to the Conservative Party between 2009 and 2017.

David Cameron appointed Asfari, who is now a non-executive director of Petrofac, as one of his business ambassadors in 2014.

In May 2019, when Petrofac was under investigation by the SFO, UKEF provided £700m in project insurance for the design and operation of an oil refinery at Duqm in Oman, a project in which Petrofac was named as the sole UK exporter.

Read next: Libya’s largest oilfield resumes operations after 2 months of shutdown

Petrofac was one of five companies that sponsored the official reopening of the British Embassy in Tripoli in June of this year.

Ambassador Caroline Hurndall told the audience, “I am especially proud that British businesses are collaborating with Libyan companies and having a meaningful impact upon Libya’s economic development. Many of those businesses are represented here tonight.”

BP and Shell are close to Whitehall, with a long history of personnel revolving between the corporation and former senior civil servants.

Control of oil

Despite all that has befallen the north African nation, Libya was the UK’s third largest source of oil last year, after Norway and the US, supplying 7.8% of all British oil imports. Oil provides over 90% of Libya’s revenue, which makes it the country’s lifeline. 

However, the country’s NATO-backed aggression has provoked a battle for control over the oil industry which has been described as being in “disarray”, with “little clarity on who really is in control of the nation’s most valuable resource.”

UK ministers have long sought access to Libya’s oil in the international rivalry over access to the key resource. Documents obtained by the oil-focused NGO Platform in 2009 revealed that Labour ministers and senior civil servants met with Shell at least 11 times and possibly as many as 26 times in less than four years to discuss the company’s oil interests in Libya.

Read next: Libya Announces the End of Division in Oil Sector

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US Sends Patriot Missile Interceptors to Saudi Arabia as Yemeni Resistance Steps up Retaliation

March 21, 2022

By Staff, Agencies

The United States sent a significant number of Patriot antimissile interceptors to Saudi Arabia upon an urgent request from Riyadh, reports suggested, amid intensified retaliatory strikes on the kingdom from the Yemeni side.

The Wall Street Journal reported that Washington transferred the interceptors to the kingdom within the past month.

The report added that the move was aimed to enable the kingdom to fend off drone and missile strikes conducted by the Yemeni resistance in retaliation for the years-long Saudi aggression and siege.

A senior official within the US administration of President Joe Biden, who asked not to be named, confirmed the news on Sunday night, telling the Associated Press that the transfer of the interceptors was in line with Biden’s promise that “America will have the backs of our friends in the region.”

Throughout the course of the war, the United States has supported and armed Saudi Arabia. Despite his promise to end “all American support for offensive operations in the war in Yemen, including relevant arms sales,” Biden last year approved the sale of 280 air-to-air missiles valued at up to $650 million to Saudi Arabia.

Late in 2021, Pentagon chief Lloyd Austin told a Middle East conference that Washington was “significantly enhancing Saudi Arabia’s ability to defend itself.”

Saudi Arabia launched the war on Yemen in March 2015, leading a military coalition consisting of its regional allies, including the UAE, and supported by major Western powers, especially the United States.

Although the kingdom estimated at the beginning of the war that it would come out victorious within just a few weeks, the war has continued for seven years, leaving hundreds of thousands of Yemenis dead and displacing millions more.

Yemeni armed forces and allied Popular Committees, however, have grown steadily in strength against the Saudi-led invaders, and left Riyadh and its allies bogged down in the country.

The transfers also come as the US and its allies have been seeking help from Saudi Arabia to pump more oil to contain a surge in energy prices following Russia’s military campaign in Ukraine.

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MORE ON THIS TOPIC:

Misconceptions

 

BY GILAD ATZMON

Jerusalem 1973

 Ashraf Marwan is a controversial figure within Israel’s intelligence community. Some regard him as Israel’s best ever Arab spy, others see him as an Egyptian spymaster who misled the Israeli military ahead of the 1973 war that was a military  disaster for the Jewish state.  In June 2007, Marwan ‘fell’  from the balcony of his London house. His wife and many commentators accused the Mossad of the assassination.

 

Marwan was born in 1944 to an influential Egyptian family. At the age of 21 he married  Mona Nasser, president Gamal Abdel Nasser’s second daughter and secured his place in the corridors of power in 1960s Cairo.

 

Following its humiliating defeat in the 1967 war, Egypt started to prepare its military to take back the Sinai peninsula.  Marwan was privy to Egypt’s best-kept secrets; its war plans, detailed accounts of military exercises, original documentation of Egypt’s arms deals with the Soviet Union and other countries, military tactics, the minutes from meetings of the high command, transcripts of Sadat’s private conversations with world leaders, etc. All of that allowed him to provide Israel with invaluable information about the coming war. 

 The intelligence that Marwan provided to the Mossad made its way to the desks of Israeli political and military leaders and shaped Israel’s so- called post ‘67 strategic ‘concept’ – the belief that Egypt’s Sadat wouldn’t launch a war against Israel unless his minimum requirements were fulfilled. Without long-range attack aircraft and long range Scud missiles, Israel was made to believe, Egypt could not overcome Israeli air superiority and would not launch a war.

 The reports that Marwan provided to Israel contained precious information that, although accurate, systematically contributed to Israel’s misconceptions about Egypt’s aspirations, plans and capabilities.

 In April 1973, Marwan persuaded the Mossad that Egypt planned an attack on Israel in mid-May. As a result, Israel raised its military to red alert, but that May war never happened. In late September, Marwan once again convinced the Mossad of an Egyptian plan for an attack, but this time the Mossad had lost its credibility and until the last minute, the IDF military chiefs treated Marwan’s information with suspicion. They basically ignored him.

 A few hours before it began, Marwan provided the Mossad with a final warning that a war was about to launch. Late on the 5th of October 1973,  Tzvi Zamir, the head of the  Mossad, met Marwan in London and learned that a war would start the following  day at 6pm. The war did indeed start the next day, four hours earlier than predicted. The 1973 war is considered by Israel to be its most humiliating and scandalous military blunder. Israel was totally unprepared. IDF battalions on the frontline were exposed to a full-on Egyptian and Syrian assault. They were wiped out within hours. Some rightly argue that it is only because the Egyptian and Syrian armies had limited plans in terms of territorial gains that Israel survived this war militarily and exists to this day. Most Israeli military commentators agree that it was not the IDF generals who saved the country but the foot soldiers on the ground who fought heroically with their backs to the wall.  

 

General Eli Zeira, then Director of Israeli military intelligence is regarded as a major contributor to the 1973 military blunder. Zeira claims that it was Marwan’s  earlier misleading information that led to  Israel’s ‘misconception’ of Egypt’s true intentions. Zeira argues that Marwan was a ‘double agent’ or more rightly, a skilful Egyptian spymaster,  who brilliantly managed to deceive  the Israelis into a delusional ‘misconception’ of the conflict. Those who believe that Marwan was assassinated by the Mossad tend to accept General Zeira’s opinion.

 

Kyiv 2022

 For months and months America, Britain and NATO warned the Ukrainians that Russia was planning a war. The Americans in particular have made it clear that they were privy to information, that although it couldn’t be  shared with the general public, indicated that  Putin was planning an imminent attack.  Naturally, not many people bought into these repeated American warnings: by now American and British intelligence have been involved in too many blunders and spectacular lies (among them phantasmic WMD in Iraq and chemical attacks in Syria)  that no one, including the Ukrainians, has taken these military institutions seriously. It was also evident  that, even more than Ukraine or Russia wanted or needed a military conflict, it was  Washington and London  that  desired one. Ukraine has become an energy hub following the discovery of large reserves of gas and oil within its territory. The West saw it as an alternative to Russia as the major gas supplier to Europe.

 

As happened with Marwan in 1973, someone ‘helped’ the Pentagon to build a ‘concept’ of an ‘imaginary Russian campaign.’ In American’s  delusional war plan, Putin would capture Ukraine’s Russian speaking regions in the East and might also attempt to seize some ground in the south to create a land  passage  to Crimea. This war would have come to an end within a short time as its military objectives were limited. Ukraine would accept the Russian territorial gains  as it would allow Ukraine to rid itself of its most problematic and contested regions. Russia would be condemned but, in this scenario, when peace prevails, Ukraine would be able to join the EU and maybe even NATO and most important, become Europe’s  prime energy supplier. 

 

This ‘concept’ of a war may well have been  induced by a Putin / Marwan figure. It misled the Americans and the Brits to build a completely wrong strategic and geopolitical vision. The Ukrainian military was foolish enough to follow the Pentagon’s intelligence scenario and deployed its elite units to the East. Those units prepared themselves for an express war on some disputed but defined territories.  But that wasn’t the war that  happened. Instead what transpired was tragic for Ukraine and its military. Just before the 24 February Russian invasion, it became clear that Russia had extended its military drills to Belarus. Days later, Russia launched its military campaign.  Russia’s main effort was launched from Belarus and it was aimed at the Ukrainian capital Kyiv not the Eastern regions as predicted. In a simple move, the Russian Army basically managed to cut off most of the Ukrainian Army  far from the capital and with no supply routes or logistical support from the West. 

 

By attacking Ukraine from Belarus, the Russians copied Hitler’s Belgium manoeuvre. In 1940 the French waited for the German Panzers on the vastly fortified Maginot Line. But the Germans bypassed the Maginot Line and went into France through Belgium and headed straight to France’s soft belly and Paris. That left the French military stranded at the Maginot line and exposed from the rear as the enemy was then behind them. It would have helped if American, British and Ukrainian generals had spent some time learning military history or even watching some relevant  Youtube history channel documentaries.

 

Why did these military leaders badly misjudge Putin’s plans and Russian strategic objectives? As happened with Marwan in 1973, someone or something planted into American, British and Ukrainian decision makers a complete misconception of Russian intentions. This blunder has caused a total disaster for Ukraine, its people, its military and the  integrity of its land.  It was their complete shock at the Russian decision to invade Ukraine  from Belarus  that led the West into panic and rapid escalation in sanctions and language.  For the West the situation is hopeless. Even if NATO would have liked to support the Ukrainian forces; it literally can’t. The European nations who promised to supply military equipment to the Ukrainian army can’t do so as the Ukrainian army is cut off in the East. If you  don’t believe this, ask a simple question.  How was it possible that the 60 km Russian convoy was stopped, standing still like sitting ducks for 10 days without being attacked? The answer is simple. The Ukrainian army is unable to  engage in a concentrated military effort. It is limited in its capacity to  attack Russian logistics and it certainly cannot launch a counter attack. Misconception comes with a price, especially when your leaders engage in relentless  warmongering. Yet, as in Israel 1973, in Ukraine in 2022 it isn’t the generals or the mini oligarch -actor/president who can save the situation. It is the resilient heroic  fighters on the ground. They don’t seem to give up and fight to their last drop of blood.     

 

Moscow 2022

 The Russian military ‘achieved’ its goals in just two days: it cut out the Ukrainian army and dismantled its ability to defend the country, let alone secure the area around the  capital. The Ukrainian air force lost its control over Ukraine’s skies on the first day. Command centres around the country were destroyed. Despite these losses, despite its clear military superiority, the Russians haven’t won the war, far from it, a decisive victory isn’t on the horizon.

 

The Russian war planners fell into the same trap as their counterparts in NATO and Ukraine.  They also held a delusional misconception of Ukraine.  The Russians overestimated the support they would find amongst the population and Ukraine’s political class. They grossly underestimated the Ukrainians’ will to defend their land.  They underestimated the Western reaction to their campaign. They grossly underestimated the world animosity towards Russia, its leaders, its Israeli/Russian oligarchs. They couldn’t envisage the present solidarity with the Ukrainians and their resistance. They certainly couldn’t see Zelensky, the actor, morphing into a Che Guevara character: in their eyes and for good reason, he was seen as a comical character and a political puppet. The modernist old fashioned Russian generals didn’t understand that in a world shaped by Tik Tok and Zuckerbergs, all it takes for a male actor who was dancing  in high heeled shoes to become an iconic ‘freedom fighter’ is simply a  matter of makeup and costume.

 

The Russian were  mistaken on most fronts. But being clumsy, heavy, miscalculated and delusional is not new to Russia, it may even be engraved in the Russian operational mode. Throughout its history Russia was caught sluggish and dysfunctional in battles against enemies who were superior technologically, tactically and spiritually. Remember that at one point the Soviets almost lost their capital to the 3rd Reich. Their allies (USA and Britain)  betrayed them,  but despite that, it was the USSR that  won the big war and chased the defeated German army all the way from Stalingrad to Berlin. The Russians are somehow resilient, or at least used to be.

 

I Misconceive Therefore I am

 Being trapped in misconception is probably inherent to the human condition. Projecting our own faults on others is often the means by which we bring disasters on ourselves. But in 2022, the Ashraf Marwans do not stop at just manipulating  leaders or generals. In the world we happen to find ourselves in, the incessant  duplicity is designed to enslave  us all.  We are repeatedly trained to be tormented by ‘global disasters’ from ‘Climate’, to ‘Covid’ to ‘Russia’ to Energy, to the Economy and back again. We are kept in a state of constant collective hysteria, united against our (global) ‘public enemy’ at the time. Unsurprisingly, this ‘universal’ panic mode is set to make the rich richer. 

It seems to me as if those who detected  the deep propagandist misconception that that was pushed by Fauci, Bill Gates and Bourla also tend to be suspicious  about the continuum between Biden (the father and the son), Johnson and  Zelensky. 

 

It is not a matter of Left or Right, it isn’t a matter of education or cognitive ability. It is a clear division between Jerusalem and Athens that is now dividing us and may as well leading us into a global civil war. Jerusalem within that context (as defined by Leo Strauss), is the city of revelation. It sustains itself by maintaining tyranny of correctness, legalism (Torah and Mitzvoth). Athens, on the contrary,  is the birthplace of  (Western) philosophy. It is all about skepticism, the ability to think for yourself. While Chomsky and Dershowitz  tell you what to say – what is right and who is wrong, Kant and Heidegger teach you how to figure out things by yourself. 

 To survive  the Marwans and defeat misconceptions, scepticism isn’t  just a tool, it is an existential necessity. Yet such scepticism is almost impossible to maintain, it entails constant regression and a consistent questioning of your most elementary thoughts and findings.  

 

Jerusalem is winning, at least at the moment, and for obvious reasons. It is easier to train people to act like sheep and be politically correct than to encourage people to think for themselves and allow for unpredictable results. Accordingly, the survival of the skeptic is a lone war that resembles heroic insurgency, it is a guerrilla battle.      

 ‘

Maybe it is time to accept that the true meaning of globalisation is the acceptance that  there is no refuge, no safe haven, no escape. Even when you see it all, the lies, the propaganda, the tyranny of correctness, Jerusalem and the decline of the West as we know it, you are still locked together with the rest of humanity in a vessel spiralling down to impact. 

Crashing Saudi Oil Economy Explains Urgent Yemeni Peace Offer

Crashing Saudi Oil Economy Explains Urgent Yemeni Peace Offer - Islam Times
Finian CUNNINGHAM
Former editor and writer for major news media organizations. He has written extensively on international affairs, with articles published in several languages

Finian Cunningham

March 26, 2021

The Saudi rulers are facing a humiliating defeat as the Yemenis take revenge and Uncle Sam washes his hands of blood.

After six years of blowing up Yemen and blockading its southern neighbor, the Saudi rulers are now saying they are committed to finding peace. The move is less about genuine peace than economic survival for the oil kingdom.

The Saudi monarchy say they want “all guns to fall completely silent”. Washington, which has been a crucial enabler of the Saudi war on Yemen, has backed the latest “peace offer”. Secretary of State Antony Blinken this week endorsed the initiative from the Saudi rulers, saying he had spoken with them “on our work together to end the conflict in Yemen, facilitate humanitarian access and aid for the Yemeni people”.

The Saudi foreign ministry stated: “The initiative aims to end the human suffering of the brotherly Yemeni people, and affirms the kingdom’s support for efforts to reach a comprehensive political resolution.”

Can you believe this sickening duplicity from the Saudis and the Americans?

So, after six years of relentless aerial bombing in Yemen causing the world’s worst humanitarian crisis, according to the United Nations, the Saudis and their American military supplier, seem to have developed a conscience for peace and ending suffering.

The real reason for trying to end the conflict is the perilous state of the Saudi oil-dependent economy. Saudi Aramco, the state-owned oil, gas and petroleum industry, recently announced that its profits have slumped by nearly half in 2020 compared with the year before. Down from $88 billion to $49 billion.

Given that its oil economy provides nearly 90 per cent of state budget that is a stupendous hit on the Saudi finances. The Saudi rulers rely on hefty state subsidies to keep its 34 million population content. With income from the oil industry nosediving that means state deficits will explode to maintain public spending, or else risk social unrest from dire cutbacks.

Saudi Arabia remains the biggest oil exporter, but due to the Covid-19 pandemic and world economies going into recession crude oil prices have plummeted. At one point oil prices fell to around $20 a barrel. The Saudi economy needs an oil price of around $70 a barrel to reel in a profit.

The upshot is the Saudi war in Yemen has become a critical drain on state finances and potentially jeopardizing the superficial stability of the absolute monarchy.

Of further alarm is the increasing missile and drone attacks by the Houthi rebels in Yemen on key Saudi locations, including the capital Riyadh.

The Yemeni rebels are escalating airstrikes on Aramco installations at its headquarters in Dhahran and Dammam in Eastern Province, as well as in the cities of Abha, Azir, Jazan, and Ras Tanura. The targets include oil refineries and export terminals. The Saudis claim they have intercepted a lot of the missiles with U.S.-made Patriot defense systems. Nevertheless, the mere fact that the Yemenis can hit key parts of the Saudi oil economy over a distance of 1,000 kilometers is a grave security concern undermining investor confidence.

The first major strike was in September 2019 when Houthi drones hit the huge refinery complex at Abqaiq. That caused Saudi oil production to temporarily shut down by half. It also delayed an Initial Public Offering of Aramco shares on the stock market as investors took fright over political risk.

At a time when the Saudi oil economy is contracting severely due to worldwide circumstances, an additional debilitating threat is the intensifying campaign of Houthi airstrikes. They are taking the war into Saudi heartland.

The Biden administration has condemned the Houthi missile attacks on Saudi Arabia as “unacceptable”. Such American concern is derisory given how Washington has been providing warplanes, missiles and logistics for the Saudis to indiscriminately bomb Yemen causing tens of thousands of deaths. The Americans also enable the Saudis to impose a blockade on Yemen’s sea and airports, which has prevented vital food and medicines from being supplied to the country. Nearly 80 per cent of Yemen’s 30 million population are dependent on foreign aid deliveries. The blockade is a war crime, a crime against humanity, and the Americans are fully complicit.

President Joe Biden has said he is ending U.S. military support for Saudi Arabia’s war in Yemen. It was an election promise. However, it is not clear what military support the U.S. has actually stopped, if at all. The Saudi bombing of food depots continues and the blockade on the country could not be maintained without essential American logistics.

More cynically, the Biden administration realizes that the Saudis started a war back in March 2015, when Obama was president and Biden was vice-president, that has turned into an un-winnable quagmire whose horrendous human suffering has become a vile stain on America’s international image.

That’s why Biden and his diplomats have been urging the Saudi rulers to sue for peace. Now it seems the Saudi monarchy realizes that the reckless war launched by “defense minister” Crown Prince Mohammed bin Salman has come with a price that they can’t afford to sustain if they want to preserve their rickety house of cards, known as the House of Saud.

On the latest peace proposal, the Yemeni rebels have rejected it out of hand. They say it contains “nothing new”. The Houthis say the only way to end the war is for the Saudis and their American sponsors to end the aggression on their country. There is no “deal”. It is a case of the Saudis and the Americans just getting out.

Meantime, the airstrikes on Saudi oil infrastructure are going to continue with ever-increasing damage to the royal coffers. Thus, the Saudi rulers have no choice but to unconditionally surrender in this criminal war. They are facing a humiliating defeat as the Yemenis take revenge and Uncle Sam washes his hands of blood.

Ten Years Ago: “Operation Libya” and the Battle for Oil: Redrawing the Map of Africa

Part II

By Prof Michel Chossudovsky

Global Research, February 20, 2021

Global Research 9 March 2011

Author’s Note:

The following article was published almost ten years ago on March 9, 2011, at the outset of the US-NATO “humanitarian” military intervention in Libya.  Libya’s crude oil reserves in 2011 were twice those of the United States.

In retrospect. the 2011 US-NATO led war on Libya was a multi-trillion dollar trophy for the United States. It was also, as outlined in my 2011 article a means to establishing US hegemony in North Africa, a region historically dominated by France and to lesser extent by Italy and Spain.

The US-NATO intervention was also intent upon excluding China from the region and edging out China’s National Petroleum Corp (CNPC), which was a major player in Libya. 

Libya is the gateway to the Sahel and Central Africa. More generally, what is at stake is the redrawing of the map of Africa at the expense of France’s historical spheres of influence, namely a process of neo-colonial redivision.

Recent developments confirm this process. In the course of the last decade, starting with president Nicolas Sarkozy, France has become a de facto US proxy State. 

Michel Chossudovsky, February 15, 2021

***

The geopolitical and economic implications of a US-NATO led military intervention directed against Libya are far-reaching.

Libya is among the World’s largest oil economies with approximately 3.5% of global oil reserves, more than twice those of the US.

“Operation Libya” is part of  the broader military agenda in the Middle East and Central Asia which consists in gaining control and corporate ownership over more than sixty percent of the world’s reserves of oil and natural gas, including oil and gas pipeline routes.

“Muslim countries including Saudi Arabia, Iraq, Iran, Kuwait, the United Arab Emirates, Qatar, Yemen, Libya, Egypt, Nigeria, Algeria, Kazakhstan, Azerbaijan, Malaysia, Indonesia, Brunei, possess between 66.2 and 75.9 percent of total oil reserves, depending on the source and methodology of the estimate.” (See Michel Chossudovsky, The “Demonization” of Muslims and the Battle for Oil, Global Research, January 4, 2007) .

With 46.5 billion barrels of proven reserves [2011 data], (10 times those of Egypt), Libya is the largest oil economy in the African continent followed by Nigeria and Algeria (Oil and Gas Journal). In contrast, US proven oil reserves are of the order of 20.6 billion barrels (December 2008) according to the Energy Information Administration.  U.S. Crude Oil, Natural Gas, and Natural Gas Liquids Reserves)

The most recent estimates [2011] place Libya’s oil reserves at 60 billion barrels. Its gas reserves at 1,500 billion m3. Its production has been between 1.3 and 1.7 million barrels a day, well below its productive capacity. Its longer term objective is three million b/d and a gas production of 2,600 million cubic feet a day, according to figures of the National Oil Corporation (NOC).

The (alternative) BP Statistical Energy Survey (2008) places Libya’s proven oil reserves at 41.464 billion barrels at the end of 2007 which represents 3.34 % of the world’s proven reserves. (Mbendi  Oil and Gas in Libya – Overview).


Oil is the “Trophy” of US-NATO led Wars

An invasion of Libya under a humanitarian mandate would serve the same corporate interests as the 2003 invasion and occupation of Iraq. The underlying objective is to take possession of Libya’s oil reserves, destabilize the National Oil Corporation (NOC) and eventually privatize the country’s oil industry, namely transfer the control and ownership of Libya’s oil wealth into foreign hands.

The National Oil Corporation (NOC) is ranked 25 among the world’s Top 100 Oil Companies. (The Energy Intelligence ranks NOC 25 among the world’s Top 100 companies. – Libyaonline.com)

The planned invasion of Libya, which is already underway [February-March 2011]is part of the broader “Battle for Oil”.  Close to 80 percent of Libya’s oil reserves are located in the Sirte Gulf basin of Eastern Libya. (See map below)

Libya is a Prize Economy. “War is good for business”. Oil is the trophy of US-NATO led wars.

Wall Street, the Anglo-American oil giants, the US-EU weapons producers would be the unspoken beneficiaries of a US-NATO led military campaign directed against Libya.

Libyan oil is a bonanza for the Anglo-American oil giants. While the market value of crude oil is currently well in excess of 100 dollars a barrel, the cost of Libyan oil is extremely low, as low as $1.00 a barrel (according to one estimate). As one oil market expert commented somewhat cryptically:

“At $110 on the world market, the simple math gives Libya a $109 profit margin.” (Libya Oil, Libya Oil One Country’s $109 Profit on $110 Oil, EnergyandCapital.com March 12, 2008)

Foreign Oil Interests in Libya

Foreign oil companies operating prior to the insurrection in Libya include France’s Total, Italy’s ENI, The China National Petroleum Corp (CNPC), British Petroleum, the Spanish Oil consortium REPSOL, ExxonMobil, Chevron, Occidental Petroleum, Hess, Conoco Phillips.

Of significance, China plays a central role in the Libyan oil industry. The China National Petroleum Corp (CNPC) had a workforce of some 400 employees. The total Chinese workforce in Libya was of the order of 30,000.

Eleven percent (11%) of Libyan oil exports are channelled to China. While there are no figures on the size and importance of CNPC’s production and exploration activities, there are indications that they are sizeable.

More generally, China’s presence in North Africa is considered by Washington to constitute an intrusion. From a geopolitical standpoint, China is an encroachment. The military campaign directed against Libya is intent upon excluding China from North Africa.

Also of importance is the role of Italy. ENI, the Italian oil consortium puts out 244,000 barrels of gas and oil, which represents almost 25 percent of Libya’s total exports. ( Sky News: Foreign oil firms halt Libyan operations, February 23, 2011).

Among US companies in Libya, Chevron and Occidental Petroleum (Oxy) decided barely 6 months ago (October 2010) not to renew their oil and gas exploration licenses in Libya. (Why are Chevron and Oxy leaving Libya?: Voice of Russia, October 6, 2010). In contrast, in November 2010, Germany’s oil company, R.W. DIA E signed a far-reaching agreement with Libya’s National Oil Corporation (NOC) involving exploration and production sharing. AfricaNews – Libya: German oil firm signs prospecting deal – The AfricaNews, 

The financial stakes as well  as “the spoils of war” are extremely high. The military operation is intent upon dismantling Libya’s financial institutions as well as confiscating billions of dollars of Libyan financial assets deposited in Western banks.

It should be emphasised that Libya’s military capabilities, including its air defense system are weak. 

Libya Oil Concessions

Redrawing the Map of Africa

Libya has the largest oil reserves in Africa. The objective of US-NATO interference is strategic: it consists in outright theft, in stealing the nation’s oil wealth under the disguise of a humanitarian intervention.

This military operation is intent upon establishing US hegemony in North Africa, a region historically dominated by France and to lesser extent by Italy and Spain.

With regard to Tunisia, Morocco and Algeria, Washington’s design is to weaken the political links of these countries to France and push for the installation of new political regimes which have a close rapport with the US. This weakening of France is part of a US imperial design. It is a historical process which goes back to the wars in Indochina.

US-NATO intervention leading to the eventual formation of a US puppet regime is also intent upon excluding China from the region and edging out China’s National Petroleum Corp (CNPC). The Anglo-American oil giants including British Petroleum which signed an exploration contract in 2007 with the Ghadaffi government are among the potential “beneficiaries” of  the proposed US-NATO military operation.

More generally, what is at stake is the redrawing of the map of Africa, a process of neo-colonial redivision, the scrapping of the demarcations of the 1884 Berlin Conference, the conquest of Africa by the United States in alliance with Britain, in a US-NATO led operation.

The colonial redivision of Africa. 1913

Libya: Strategic Saharan Gateway to Central Africa

Libya has borders with several countries which are within France’s sphere of influence, including Algeria, Tunisia, Niger and Chad.

Chad is potentially an oil rich economy. ExxonMobil and Chevron have interests in Southern Chad including a pipeline project. Southern Chad is a gateway into the Darfur region of Sudan, which is also strategic in view of its oil wealth.

China has oil interests in both Chad and Sudan. The China National Petroleum Corp (CNPC) signed a farreaching agreement with the Chad government in 2007.

Niger is strategic to the United States in view of its extensive reserves of uranium. At present, France dominates the uranium industry in Niger through the French nuclear conglomerate Areva, formerly known as Cogema. China also has a stake in Niger’s uranium industry.

More generally, the Southern border of Libya is strategic for the United States in its quest to extend its sphere of influence in Francophone Africa, a vast territory extending from North Africa to Central and Western Africa. Historically this region was part of France and Belgium’s colonial empires, the borders of which were established  at the Berlin Conference of 1884.

Image Source www.hobotraveler.com

The US played a passive role at the 1884 Berlin Conference. This new 21st Century redivision of the African continent, predicated on the control over oil, natural gas and strategic minerals (cobalt, uranium, chromium, manganese, platinum and uranium) largely supports dominant Anglo-American corporate interests.

US interference in North Africa redefines the geopolitics of an entire region. It undermines China and overshadows the influence of the European Union.

This new redivision of Africa not only weakens the role of the former colonial powers (including France and Italy) in North Africa. it  is also part of a broader process of displacing and weakening France (and Belgium) over a large part of the African continent.

US puppet regimes have been installed in several African countries which historically were in the sphere of influence of France (and Belgium), including The Republic of the Congo and Rwanda.  Several countries in West Africa (including Côte d’Ivoire) are slated to become US proxy states.

The European Union is heavily dependent on the flow of Libyan oil. 85 percent of its oil is sold to European countries. In the case of a war with Libya, the supply of petroleum to Western Europe could be further disrupted, largely affecting Italy, France and Germany. Thirty percent of Italy’s oil and 10 percent of its gas are imported from Libya. Libyan gas is fed through the Greenstream pipeline in the Mediterranean (See map below).

The implications of these potential disruptions are far-reaching. They also have a direct bearing on the relationship between the US and the European Union.

Greenstream pipeline linking Libya to Italy (right)

Concluding Remarks

The mainstream media through massive disinformation is complicit in justifying a military agenda which, if carried out, would have devastating consequences not only for the Libyan people: the social and economic impacts would be felt Worldwide.

There are at present three distinct war theaters in the broader Middle East Central Asian region: Palestine, Afghanistan, Iraq. In the case of an attack on Libya, a  fourth war theater would be opened up in North Africa, with the risk of military escalation.

Public opinion must take cognizance of the hidden agenda behind this alleged humanitarian undertaking, heralded by the heads of state and heads of government of NATO countries as a “Just War”. The Just War theory in both its classical and contemporary versions upholds war as a “humanitarian operation”. It calls for military intervention on ethical and moral grounds against “rogue states” and “Islamic terrorists”. The Just war theory demonizes the Gaddafi regime while providing a humanitarian mandate to US-NATO military intervention.

The heads of state and heads of government of NATO countries are the architects of war and destruction in Iraq and Afghanistan. In an utterly twisted logic, they are heralded as the voices of reason, as the representatives of the “international community”.

Realities are turned upside down. A humanitarian intervention is launched by war criminals in high office, who are the unchallenged guardians of the Just War theory.

Abu Ghraib, Guantanamo,… Civilian casualties in Pakistan resulting from US drone attacks on towns and villages ordered by president Obama, are not front page news, nor are the 2 million civilian deaths in Iraq.

There is no such thing as a “Just War”.  The history of US imperialism should be understood. The 2000 Report of the Project of the New American Century entitled “Rebuilding Americas’ Defenses” [pdf file no longer accessible] calls for the implementation of a long war, a war of conquest.

One of the main components of this military agenda is: to “Fight and decisively win in multiple, simultaneous theater wars”.

“Operation Libya” is part of that process. It is another theater in the Pentagon’s logic of “simultaneous theater wars”.

The PNAC document faithfully reflects the evolution of US military doctrine since 2001. The US plans to be involved simultaneously in several war theaters in different regions of the World.

While heralding the need to protect America (i.e. “National Security”), the PNAC report does spell out why these multiple theater wars are required.

What purpose do they serve. Are they an instrument of peace? The usual humanitarian justification is not even mentioned.

What is the purpose of America’s military roadmap?

Libya is targeted because it is one among several remaining countries outside America’s sphere of influence, which fail to conform to US demands. Libya is a country which has been selected as part of a military “road map” which consists of “multiple simultaneous theater wars”.  In the words of former NATO Commander Chief General Wesley Clark:

 “in the Pentagon in November 2001, one of the senior military staff officers had time for a chat. Yes, we were still on track for going against Iraq, he said. But there was more. This was being discussed as part of a five-year campaign plan, he said, and there were a total of seven countries, beginning with Iraq, then Syria, Lebanon, Libya, Iran, Somalia and Sudan…. (Wesley Clark, Winning Modern Wars, p. 130).

Part I

Insurrection and Military Intervention: The US NATO Attempted Coup d’Etat in Libya?

What Wall Street fears

January 30, 2021

What Wall Street fears

By The Ister for the Saker Blog

The origin of modern banking can be found in the early days of the gold trade. In the Middle Ages, goldsmiths accepted deposits of gold in return for paper notes, which could be exchanged for the deposits at a later date. Because these paper notes were more convenient for commercial use than physical metal, they were usually not redeemed for gold right away. The goldsmiths noticed their customers’ deposits could be used in the meantime to generate interest and began surreptitiously lending out the savings of their depositors. Over time fractional reserve banking developed from this tendency of lending out money in excess of the actual reserves being held.

Goldsmith became banker, and from this early monetary system, banking families emerged. Prior to the existence of modern financial institutions, these houses were the entities which could be relied upon for large amounts of credit. A reputable surname gave confidence to depositors that their gold was in good hands, and from the intergenerational accumulation of wealth grew large pools of loanable capital. As nobles required weapons and pay for their armies, the conflicts of medieval Europe were fueled by families such as the Medici, Fuggers, and Welsers. Today, it is the Federal Reserve which finances America’s enormous military and conquests abroad.

To truly understand banking, the concept of free markets must be cast aside. Just as oil is a strategic resource for the real economy capitalist, gold and silver are strategic resources for the financial capitalist. Physical bullion is the basis from which all other lines of credit extend; we know this because the same central banks which publicly proclaim gold to be a barbarous relic still feel the need to maintain enormous hordes in their vaults.

As in oil markets, pricing is not influenced primarily by a large number of producers and buyers but by concentrated cartel dynamics. So while we witness yet another energy battle between OPEC and Russia unfold, it should be understood that similar dynamics are at play in the upper echelons of the monetary world as bankers seek to fix prices and control physical bullion flows in a manner which is beneficial to their interests.

A key difference from oil is that while the pump leads to the refinery and the refinery to the end-user, bankers do not generally like to part with their gold. Accordingly, markets have been designed so that prices are determined not by physical delivery but by the trading of unbacked or fractionally backed “claims” on the underlying metal: certificates, ETFs, and futures. We can be certain that there is not enough physical bullion to cover all these paper metal claims, just like the medieval goldsmith did not hold his deposits in full.

These paper markets set the price, although bars rarely leave the vault

Where is the vault? While Fort Knox claims the largest holdings, the price is set by the London Bullion Market Association and CME Group which together account for around 70% and 20% of global trading volume respectively. The London Bullion Market began in 1850, when N. M. Rothschild and Sons and several other banking families created a cartel to oversee the operations of the global gold market, including the establishment of the “London good delivery” list which created trading standards for size, dimensions, shape and fineness of bullion; today trading on London markets requires a high purity and being between 350-450 ounces.

This domination of the world’s gold market was not achieved through peaceful means: look into the forces behind the conquest of Transvaal’s gold mines, for it bears a direct parallel to America’s invasions of oil-rich nations today. Another similarity with oil markets is that military interventions have a habit of “liberating” the target nation of their gold: just ask Muammar Gaddafi.

The price of such a strategic resource could not be determined by an open market, thus alongside good delivery standards the “gold fix” was established in 1919 and was held in the offices of New Court until 2004, when its operations were passed on to a cartel of bullion banks such JP Morgan and HSBC. Ever since, these banks have been investigated and convicted countless times of manipulating and spoofing the prices.

How do we know that there isn’t enough gold to cover physical deliveries? Back in the 1970s the dollar was under a lot of pressure and Western banks maintained secret gentlemen’s agreements not to request delivery of bullion. In 1971 Dutch central bank chief Jelle Zjilstra ignored these formalities and planned to convert $600 million of the Dutch dollar reserves to gold, prompting Federal Reserve chair Paul Volcker to fly out to the Netherlands and warn him: “you’re rocking the boat.” Shortly after Zijlstra refused Volcker’s pressure and continued with the purchase, the US decoupled from the gold standard.

Abandonment of the gold standard risked a reduction in dollar demand, so Nixon enlisted Wall Street scion Gerry Parsky to negotiate with oil exporting Arab nations. After discussion, the Saudi state agreed to sell oil priced exclusively in dollars and to invest the proceeds of oil sales in America.

To those who say dismissively that the dollar is now backed by “nothing,” I say it is backed by oil and the threat of the US military.

Look at the somber fates of those that tried to ditch the dollar for gold or the Euro: Libya in a state of permanent civil war; starving Syrians picking through landfills in search of food only miles from occupied wheat fields.

So maintaining confidence in our reserve currency requires the undermining of confidence in gold, as its reemergence would unnecessarily democratize the international monetary order. Confidence is undermined first by price suppression, which is accomplished by the manipulation of precious metals futures markets. While it would be hugely wasteful for a private individual or consortium to manipulate such a market with their own money, that is where the unlimited fiat available at central bank trading desks come in: and we know central banks are secretly trading precious metals futures due to leaked documents from CME Group.

Leo Melamed, chairman of CME Group and the putative father of modern commodity futures markets noted in his book Escape to the Futures that CME’s Globex system was inspired by the original London gold fix:

Sandner, Kilcollin and I were in London with the chairman of the Rothschild Bank seeking his advice on how to bring the “gold fix” to Chicago. From the heated debate that followed one would have concluded that Kilcollin knew more about the subject than the legendary Rothschilds, the people who had founded the concept ages before.

What we can see from this is that strategic commodities such as gold and oil are far from a free market: recall my previous article The Empire is Losing the Energy War which described how the Saudi state functions as a price-suppression weapon against Russia’s oil exports. This global commodity suppression schema allows the importation of the planet’s finite resources at a fraction of the true cost in return for theoretically unlimited currency. Recall Fed governor Kevin Warsh’s comments in December of 2011 when gold hit an all time high that banks were:

“finding it tempting to pursue financial repression- suppressing market prices that they don’t like”

There are signs, however, that the thin pool of physical bullion which exists to maintain confidence in paper markets is drying up. In March of 2020, CME Group had to relax its own requirement of 100oz bars to allow 400oz London good delivery bars to be shipped from overseas and used for trade settlement. Some would say: if price suppression exists then why has the gold price gone up over the last few years?

The middle ground between setting the price to very low or very high levels, say, $100 or $10,000, is that the prices are set high enough to minimize outflows from vaults, while at the same time using futures to hammer down the prices at psychologically important levels and initiating margin calls on those who are long gold using leverage. Those who have watched gold for a long time can attest to the sudden and inexplicable drops which originate in the futures market and which occur every time the gold price appears *just* ready to break out.

It’s a very complicated charade for the bullion bank cartel. Allow the price per ounce to go too low and you risk running out of the gold necessary to facilitate markets. At the same time, if the price rises too high it attracts international attention and risks gold reemerging in monetary policy. Notice how as soon as the supply shortages became apparent in March 2020 the bankers were forced to reset gold from $1230 to over $2000 in order to stem the outflows of physical delivery.

Putin is intentionally exacerbating this drought of physical gold in Western banks by expanding the Russian central bank’s purchases of gold. For the past few years Russia has been the number one global purchaser of bullion, having spent over $40 billion to bring Moscow’s reserves to the highest level in history: a sum close to the annual military budget because it is a strategic asset.

Just last week, Russia’s gold reserves passed its dollar reserves for the first time reaching a sum of $583 billion, highlighted by the central bank as part of Putin’s de-dollarization agenda. Given that purchases have grown at roughly 15% per year we can predict that even if the price does not rise, the value of these holdings will be around $1 trillion in three years. Read the anxious commentary about these purchases in Bloomberg and Forbes, and remember the nervousness in the business press when Germany demanded its gold back in 2013, which would only exist if behind-the-scenes physical gold flows were disjointed and there was internal muttering in the financial world as to whether the demand could be fulfilled.

To any who doubt that this is an overt move, in the pre-WW2 monetary system the mass accumulation of gold was well understood among central bankers as an aggressive act intended to starve competitor states of their ability to create credit. For example, French and American hoarding resulted in hyperinflation for Germany and forced Britain’s pound sterling off the gold standard.

Russia’s acquisition of precious metal is a direct threat to the financial system. How funny that the system is so fraudulent that it is an act of aggression to simply demand in physical form what one has paid for in full on an open market; an act which the designers of the system cannot protest lest they reveal their own bankruptcy. Just as it did in the 1920s, the hoarding of gold in the East will eventually limit the West’s ability to extend credit, it is simply unfolding on a longer time frame.

So why is a tiny stock like GameStop causing billionaire Leon Cooperman to cry on CNBC, and why is the SEC threatening small-time investors?

Simply, the financial markets are being revealed as a highly illiquid house of cards. Retail investors from Reddit began trolling short-sellers by rapidly buying small stocks and causing hedge funds to blow up from expensive margin calls. The losses are now estimated at around $70 billion, and as these small-time investors funnel their unemployment and stimulus checks into their aggressive trades they have fought wealthy investors in a more effective way than Occupy Wall Street ever did. They have now turned their eyes to the small and illiquid silver market…

Look at the fate of the Hunt brothers fortune: they were oil billionaires who tried to exercise their legal right to take physical delivery of a large volume of silver futures contracts and had CME pull the rug out from under them before it could be achieved. CME Group defeated the Hunt brothers by instituting Silver Rule 7 which limited the dollar amount of physical silver that an individual investor could buy. But how will that stop the hordes of young low net worth traders who are now telling one another to purchase physical bullion and intentionally strain the rigged silver market?

This arcane financial system is doomed to fail because it is based on ever-higher and more unstable abstractions of underlying wealth: CDOs squared and cubed, dark pool derivatives markets totaling trillions of dollars, and so on: all of which depends on the financial sector sucking as much money as possible out of a shrinking global economy through securitization. Now that people are demanding the underlying assets themselves, change is beginning.

What an interesting timeline: where Russia and unemployed youths have come to the same conclusion for how to defeat the banks.


The Ister is a researcher of financial markets and geopolitics. Author of The Ister: Escape America

آخر الحروب الأميركية قبل الانهيار كاراباخ مقتل أنقرة وتل أبيب

محمد صادق الحسيني

أياً  تكن عائدية الأراضي المتنازع عليها بين أذربيجان وأرمينيا وأياً تكن الاصطفافات العرقية أو الاثنية أو الطائفية أو الدينية المحيطة بالصراع حول ناغورنو كاراباخ، وماهية الحلّ العادل المطلوب لها، فإن ما يجري في الهضبة الاستراتيجية الواقعة بين البحرين الأسود وقزوين من تصعيد لنزاع تاريخي قديم انما يهدف الى محاولة أميركية يائسة لمنع صعود الثلاثي الروسي الصيني الإيراني لعرش العالم…!

فرملة الاندفاعة الروسية الهادفة الى قيادة العالم المتعدد الأقطاب، وتوسيع حزام التخريب على إيران وتعزيز الحشد الاستراتيجي ضدّ الصين هو الهدف الأعلى والأبعد في كلّ ما يجري في القوقاز…!

لا شك أنّ جذور الصراع، بين القوى الدولية والإقليمية في مراحل التاريخ المختلفة، حول منطقة القوقاز بشكل عام ومنطقة ناغورنو كاراباخ بشكل خاص، ضاربة في عمق التاريخ.

فمنذ أن كانت هذه المنطقة جزءاً من الدولة الآشورية القديمة، في حدود سنة 800 قبل ميلاد السيد المسيح، وهذه المنطقة تشهد صراعات مسلحة بين العديد من الدول.

من هنا فإنّ الصراع الدائر حالياً، حول ناغورنو كاراباخ، هو امتداد لصراعات قديمة، دارت معظمها بين دول الاستعمار الأوروبي، وعلى رأسها بريطانيا، وبين روسيا القيصرية والامبراطورية الفارسية ووريثتها إيران الحديثة.

وفِي هذا الإطار، قامت بريطانيا بإشعال حرب، بين روسيا القيصرية والامبراطورية الفارسية، سنة ١٨٠٤ استمرت حتى سنة 1813، بهدف “وقف توسع روسيا” في آسيا الوسطى. ولكن هذه الحرب قد حُسمت لصالح روسيا واضطر شاه إيران، فتح علي شاه، لتقديم تنازلات كبيرة لروسيا، سواء عبر التنازل عن أراضٍ واسعة، كانت ناغورنو كاراباخ جزءاً منها، أو دفع تعويضات مالية أو غير ذلك.

وعلى الرغم من هزيمة حليف بريطانيا في إيران، الشاه فتح علي شاه، إلا أنّ بريطانيا واصلت تحريضه على شنّ حرب جديدة ضدّ روسيا، لاستعادة الأراضي الإيرانية، التي خسرتها إيران في حرب 1804 – 1813، على الرغم من أنّ روسيا لم تكن تريد الدخول في حرب جديدة وإنما سعت الى تثبيت وجودها في تلك المناطق والاستعداد لصدّ هجمات بريطانية، تُشنّ على أراضيها عبر عملاء بريطانيا في الجواسيس آسيا، من سلاطين وأمراء وإقطاعيين.

وتأكيداً على ذلك قام القيصر الروسي، نيكولاس الأول، بإرسال مبعوث سلام روسي خاص الى إيران، هو الأدميرال، أليكساندر مينشيكوف حيث عرض على شاه إيران عقد حلف روسي إيراني لمواجهة الأطماع التركية التوسعية في اواسط آسيا (القوقاز). ولكن شاه إيران، فتح علي شاه، عوضاً عن الاستجابة لدعوة السلام والعمل المشترك، التي عرضها عليه الجانب الروسي، قد أقدم على خطوتين مدمّرتين لتلك المبادرة وهما:

أ ـ وضع مبعوث السلام الروسي، الأدميرال مينشيكوف، تحت الإقامة الجبرية في ربيع سنة 1826.

ب) تجريد حملة عسكرية فارسية، قوامها 35000 رجل، بتاريخ 16 / 7/ 1826، بقيادة ابنه الثاني، عباس ميرزا، الذي كان يطلق عليه اسم نائب السلطان ايضاً، واجتاح بهذه القوات منطقتي كاراباخ وتاليش المجاورة، دون إعلان حرب على روسيا بشكل رسمي. وهي الخطوة التي شكلت بداية للحرب الروسية الفارسية الثانية والاخيرة، التي استمرت من سنة ١٨٢٦ حتى ١٨٢٨، حيث تمّ توقيع اتفاق وقف الحرب بين الطرفين، بتاريخ 22 /2/ 1828، والتي سُمّيت: عهدنامه تركمنچي وبالانجليزية: Treaty of turkmenchey، والتي تنازلت الامبراطورية الفارسية بموجبها عن:

– خانات ايريفان Khanat irevan.

– خانات ناخشيڤان Khanat Nachshivan.

– بقايا خانات تاليش Khanat Talysh.

– منطقة اوردوباد Ordubad.

وبالنظر الى ما تقدّم، من حقائق تاريخية، فإنّ أهداف دول الاستعمار الأوروبي، ومن بعدها الدور الأميركي، يتمحور حول محاصرة روسيا وتهديد حدودها من كلّ الاتجاهات، سواء من الجنوب الشرقي (الامبراطورية اليابانية) أو من الجنوب الغربي (الامبراطورية العثمانية) او من الغرب (الامبراطورية الفرنسية/ نابليون) ثم ألمانيا النازية في القرن الماضي، وصولاً الى التهديدات الأميركية في الشمال الشرقي (بحر بارنتس) والمحيط الهادئ من الشرق.

من هنا فإننا نجزم تماماً، وبناءً على معلومات دقيقة، انّ ما يجري حالياً من اشتباكات حدودية، بين أرمينيا وأذربيجان، ليست صدامات عارضة ومنقطعة التواصل، مع الوضع الاستراتيجي لكل من روسيا وإيران وتركيا، وإنما هي عبارة عن جزء أو حلقة من مخطط أكبر بكثير، من المساحة الجغرافية، التي تشكل مسرح العمليات الحربية هذه. وهي بالتالي عملية لها أهداف وتداعيات استراتيجية هامة، على الصعيدين الإقليمي (إقليم وسط آسيا) والدولي، المتمثل في الصراع الدولي بين القوى العظمى في العالم.

أما عن المعلومات والأدلة، التي تؤكد انّ طبيعة هذه الاشتباكات تتجاوز كونها اشتباكات حدودية، بل انها استمرار لخطط الحشد والتطويق الاستراتيجي الأميركي لكلّ من روسيا والصين وإيران، فهي (المعلومات) كثيرة ومتشعّبة نكتفي بذكر الأهمّ منها، وهي ما يلي:

أولاً: التدخل التركي المباشر في العمليات العسكرية، الى جانب أذربيجان، وتسلمها قيادة غرفة العمليات المشتركه مع “إسرائيل” في أذربيجان، وهو تدخل ليس سرياً وليس جديداً، وقد بدأ بنقل قوات تركية جوية وبرية قبل عدة أسابيع بحجة إجراء تدريبات عسكريه مشتركة مع الجيش الأذري وإبقاء تلك الوحدات العسكري التركية في أذربيجان، وفي محيط منطقة ناغورنو كاراباخ ونقچوان بالتحديد.

وما قام به سلاح الجو التركي من إسقاط مقاتلة أرمينية، من طراز سوخوي 25؛ يوم أمس الأول إلا أبرز دليل على ذلك.

ثانياً: انّ الهدف التركي، من هذا التدخل، لا يقتصر على مؤازرة دولة لها علاقات عرقية (إثنية) مع تركيا فقط، بل ان هذا التدخل يهدف الى:

اقامة قواعد عسكرية تركية دائمة في هذه الدولة، تعزيزاً للحشود الأميركية الأوروبية والاستفزازات الجوية والبحرية المتواصلة، من قبل الأساطيل الغربية، ضدّ الأراضي الروسية المجاورة للبحر الأسود، وكذلك تعزيزاً للدور الاستخباراتي التخريبي الإسرائيلي ضدّ إيران، انطلاقاً من القواعد التجسّسية “الإسرائيلية” الموجودة حالياً في أذربيجان والتي ستكون القواعد التركية بمثابة إضافة كمية لها وتمهيداً لتوسيع الهجوم الاقتصادي على الصادرات النفطية والغازية الروسية الى الاسواق الأوروبية، حيث تعمل تركيا على التوسع شرقاً، الى ما بعد بحر قزوين، بهدف ربط منابع الغاز في تركمنستان وغيرها من دول آسيا الوسطى بناقل الغاز الأذري التركي، الذي ينقل الغاز حالياً الى تركيا، ليصار تصديره في ما بعد الى الاسواق الأوروبية، من خلال محطات التصدير التركية. وكذلك الأمر بالنسبة لـ “إسرائيل” التي تغطي ٤٠٪ من احتياجاتها النفطية من النفط الأذري، الذي يجري ضخه إلى ميناء شيخان التركي ومن هناك الى ميناء حيفا.
انشاء بنية عسكرية لحلف الناتو، تحت مسمّى تركي، في أذربيجان لزيادة الضغط والتهديد العسكريين على إيران، خاصة في شمالها الغربي الذي يسكنه أذريين وتركمان، تعتقد تركيا ومعها حلف الناتو، انّ من الممكن استغلال انتماءاتهم العرقية، لتحقيق أهداف جيوسياسية.
ثانياً: وفي هذا الإطار، نعني إطار تمدّد الناتو في وسط آسيا، عبر القواعد العسكرية التركية في أذربيجان، فإنّ الخطة المعدة، من قبل غرفة العمليات المشتركة، الأميركية التركية الإسرائيلية الأذرية، تهدف الى اقامة تواصل جغرافي أرضي بين أذربيجان وتركيا، عبر إعادة احتلال الكوريدور (الشريط)، الذي تسيطر عليه القوات الأرمنية، والفاصل بين جيب كاراباخ الأرمني وأراضي جمهورية أرمينيا، والممتدّ من منطقة جبرائيل، في جنوب الجيب وحتى منطقة موروفداغ في شماله. كما ان الخطط العسكرية الاذرية، الموضوعة قيد التنفيذ الآن، والتي يشارك في تنفيذها بشكل مباشر في الميدان، ثلاثة جنرالات وثمانية عشر ضابط أركان إسرائيليين، انما تهدف الى توسيع سيطرة القوات الأذرية، واحتلال شريط حدودي داخل الأراضي الأرمينيه، يمتدّ بموازاة الحدود الإيرانية، من منطقة Nrnadzor في أقصى جنوب شرق أرمينيا وحتى منطقة Meghri / Agarak / Kuris، في أقصى جنوب غرب أرمينيا، لاقامة تواصل جغرافي مع جمهورية نقچوان الاذرية، المتصلة جغرافياً بحدود مشتركة مع تركيا، في اقصى شمال غرب ناخشاڤان، قرب نقطة الحدود التركية الأذرية في ساداراك (Sadarak).

ثالثاً: نشر المزيد من عناصر داعش والتنظيمات الإرهابية الأخرى، في أذربيجان تحت غطاء مساعدة أذربيجان في صدّ “العدوان” الأرميني واستعادة الأراضي التي سيطرت عليها أرمينيا في حرب عام 1994، حيث تمّ حتى الآن نقل 5300 عنصر من هذه التنظيمات، ومن عناصر داعش تحديداً، من السجون التي تديرها الميليشيات الكردية، في شمال شرق سورية، بالتعاون مع الاستخبارات العسكرية والخارجية الإسرائيلية، تحت الإشراف الكامل لأجهزة الاستخبارات والجيش الأميركيين. وهي مراكز إيواء يعيش فيها حوالي 80 ألف عنصر من داعش، بينهم الآلاف من مواطني دول وسط آسيا الإسلامية، إضافة الى آلاف المواطنين الصينيين الذين ينتمون لقومية الايغور، وموطنها في شمال غرب الصين.

وهذا يعني انّ عمليات المناورة بعناصر داعش، التي تنفذها القيادة العسكرية الأميركية، بأدوات إسرائيلية وتركية، هي استمرار لعمليات المناورة الشبيهة والتي نفذها الجيش الأميركي نهاية سنة 2017، عند سقوط الموصل والرقة بشكل خاص، حيث تمّ، آنذاك، نقل الآلاف من عناصر داعش، جواً وبتمويل قطري الى كلّ من ليبيا، لتتمّ إعادة تدريبهم، ونقلهم من هناك الى دول الساحل الأفريقي والى سيناء وكلّ من: تركمنستان وأذربيجان واوزبكستان وجنوب شرق طاجيكستان وشمال شرق افغانستان، قرب الحدود مع الصين، كجزء من خطط التطويق الاستراتيجي لكل من الصين وروسيا وإيران واثارة الحروب والتوترات في تلك المناطق، وهو ما يعني انّ عمليات ضخ عناصر داعش الى أذربيجان لن تتوقف وانما سيتمّ الاعتماد مستقبلاً عليهم في تنفيذ عمليات ارهابية، في كلّ من الصين وروسيا وإيران، رغم كلّ ما يعلن من نفي تركي لنقل هذه العناصر الى تلك البلدان.

وما إعراب وزارة الخارجية الروسية، يوم 30/9/2020، عن قلقها من نقل إرهابيين ومرتزقة الى أذربيجان، الا دليل جديد ومهمّ على انّ هذه العمليات لا تزال تجري على قدم وساق، وان ذلك يجري تحت إشراف هيئة أركان عامة تتابع كل التفاصيل الميدانية المتعلقة بأماكن انتشارهم أو زجّهم في المعارك الدائرة حالياً في جمهورية ناغورنو كاراباخ.

كما لا بدّ من التذكير بسيل التصريحات الإسرائيلية، الصادرة بالأمس، حول الدور الإسرائيلي في ما يدور في كاراباخ وكذلك تصريحات المسؤولين الأذريين حول دور السلاح الإسرائيلي في العمليات التي ينفذها الجيش الأذري.

رابعاً: صحيح انّ البنتاغون وقيادة الناتو يقومون بتنفيذ كلّ ما ذكر أعلاه، من خطط عسكرية استراتيجية، ولكن هذه التحركات والمناورات لا تعبّر إلا عن فشل، أميركي إسرائيلي أوروبي سعودي، شامل وعلى طول مسرح العمليات، او مسرح المواجهة الشاملة، بين الولايات المتحدة وحلف شمال الأطلسي، ومعهما التابع الإسرائيلي السعودي الخليجي، من جهة، وبين روسيا والصين وإيران وحلف المقاومة من جهة أخرى.

اذ يكفي ان ننظر الى مسلسل الفشل، الذي لحق بمشاريعهم العسكرية والسياسية، بدءاً بهزيمة الجيش الإسرائيلي في لبنان سنة 2006، مروراً بالهزيمة الأميركية في العراق وانسحاب الجيش الأميركي من هناك سنة 2011، وصولاً الى هزيمة مشروعهم في إسقاط الدولة السورية وإعادة احتلال العراق، عبر مشروع داعش، وما يحصل في اليمن، من هزائم متلاحقة لقوى العدوان الأميركي الإسرائيلي، بواجهة سعودية إماراتية، وما لهذا الصمود اليمني العظيم والنصر المؤزّر الناجز القريب، للشعب اليمني وقواته المسلحة، من آثار استراتيجية غاية في الأهمية، سواء من جهة المحافظة على حرية الملاحة في المضائق المائية من باب المندب وصولاً الى هرمز والى مداخل المحيط الهندي، عند جزيرة سوقطرى اليمنية المحتلة حالياً، من قبل مرتزقة بن زايد والجيش الإسرائيلي.

إذ انّ صمود اليمن وجيشه ومعهم أنصار الله قد أسهم في إفشال الجهد الأميركي الإسرائيلي في السيطرة على هذه المضائق البحرية الاستراتيجية، الأمر الذي دفع واشنطن وبروكسل وأذنابها في الشرق الأوسط لوضع الخطط الجديدة، التي تهدف الى إنشاء حزام ناري إرهابي، يطوّق روسيا من الجنوب والجنوب الغربي، ويطوّق الصين من الجنوب الغربي (جنوب شرق آسيا في الفلبين/ ابو سياف/ وفي بنغلادش وغيرها من الدول). وكذلك من الغرب، من خلال المناطق الحدودية مع افغانستان وطاجيكستان.

لا نقول انّ إطلاق هذه الخطط العسكرية هو انعكاس لضعف أميركي اطلسي جزافاً، وانما ننطلق في تحديدنا لطبيعة هذه الخطط، من كونها تعبيراً عن غياب الخطط الاستراتيجية، المرتكزة الى واقع ميداني وموازين قوى محددة وواضحة ومدروسة بدقة، وكذلك المرتكزة الى قدرات على دراسة المتغيّرات التي شهدتها الفنون العسكرية في العقدين الاخيرين بشكل خاص وعدم قدرة الجيوش الأميركية والاطلسية على التعامل مع هذه الفنون والتكتيكات، التي كان أبرزها ما استخدم في سورية، من قبل الجيش السوري وقوات حزب الله (الرضوان) والوحدات الرديفة الأخرى من إيرانية وعراقية خضعت جميعها لقيادة الجنرال قاسم سليماني، الذي اضطرت الإدارة الأميركية الى الانتقام منه شخصياً، بسبب ما لحق بها وبمشاريعها من هزائم في “الشرق الاوسط”.

إذا كان قاسم سليماني قد أخرجك من مشهد الدولة العظمى يا ترامب وحوّلك الى جمهورية موز. فإنّ آلاف قاسم سليماني بانتظار الإشارة ليحوّلوا ما تبقى من امبراطوريتك الهزيلة الى هشيم تذروه الرياح.

بعدنا طيبين قولوا الله…

توسّع أردوغان في شرق المتوسّط مسمار نعش النهاية..

سماهر الخطيب

وجّهت الولايات المتحدة بالأمس دعوة إلى الحليف الناتوي تركيا لسحب قواتها من شرق المتوسط.

وجاءت الدعوة على لسان وزير الخارجية الأميركية مايك بومبيو عشية زيارته إلى قبرص بهدف التوصل إلى حل سلميّ يُنهي التوتر في المنطقة.

وبحسب بومبيو فإن «زيارته لقبرص تأتي استكمالاً لاتصالات أجراها الرئيس الأميركي دونالد ترامب مع نظيره التركي رجب طيب أردوغان ورئيس الوزراء اليوناني»، مشدداً على «ضرورة حل النزاع بطريقة دبلوماسية وسلمية». كما أشار إلى «دور ألمانيا في السعي إلى خفض التوتر».

فيما أكدت الدول الأوروبية السبع المطلة على المتوسط في ختام قمتها بشأن الأوضاع في شرق المتوسط استعدادها لـ»فرض عقوبات على تركيا ما لم تتراجع عما وصفته بتحركاتها الأحادية الجانب في المنطقة».

كما أكدت الدول الأوروبية السبع “دعمها الكامل وتضامنها مع قبرص واليونان في وجه التعديات المتكررة على سيادتهما وحقوقهما السيادية والأعمال التصعيدية من جانب تركيا”، وفق ما جاء في البيان.

وندّد الرئيس الفرنسي إيمانويل ماكرون أول أمس، بـ”لعبة الهيمنة لقوى تاريخية” في البحر الأبيض المتوسط وليبيا وسورية، مسمياً تركيا. وقال ماكرون إن «دول المتوسط السبع تريد حواراً بنية حسنة مع تركيا التي تقود سياسة توسعية في البحر الأبيض المتوسط».

وفي المشهد التركي يبدو أنّ أردوغان ماضٍ إلى نهاية حقبته «الأردوغانية»، بعد أن أصبحت نزعته «السلطانية» المتحكمة والمسيطرة على أفعاله وأقواله. وهو يعلم جليّاً بأنّ تلك النزعة التوسعية فاقدة أي شرعية أو مشروعية وخالية من أي سند قانوني يدعمها أو حق تاريخي يؤصّلها، ليس في مياه البحر الأبيض المتوسط، فحسب، إنما في معظم الأراضي السورية التي سلخها أجداده عن أمها السورية بلا حق وها هو اليوم يفتح عليه أبواب مواجهات قاسية وقاصمة، قد تصل إلى حد الحرب.

ومنذ أن وقعت تركيا اتفاقية ترسيم الحدود مع الوفاق الليبية ولم تكل ولم تهدأ بتوجيه تهديداتها لجيرانها في منطقة شرق البحر الأبيض المتوسط، وبخاصة قبرص واليونان، وذلك من خلال إعلانها الخاص بتوسيع نطاق عملياتها لاستكشاف حقول الغاز في المنطقة المتنازع عليها شرقي المتوسط، وتأكيدها على مواصلة سفينة التنقيب التركية “ياووز” أعمالها، خلال الفترة الممتدة من 18 آب، وحتى نهاية أيلول الحالي.

وصرّح أردوغان مراراً أن بلاده ستستأنف عمليات التنقيب وستبحث عن مصادر الطاقة قبالة جزر يونانية، متوعّداً بعدم التراجع عن توغل بلاده في شرق المتوسط، زاعماً أن لبلاده «الحق تماماً» في المنطقة المتنازع عليها مع اليونان.. وإذا ما فتحنا دفتر الحساب حول الحق المزعوم فسنجد أنّ هذه «الحقوق العثمانية» ما هي إلا الأوهام مجرّدة من المصداقية بنت إمبراطوريتها السابقة على المجازر التي ارتكبتها كالمجازر الأرمنية والسريانية واقتطعت الأراضي بلا أدنى حق متذرعة بقوة السيف من جهة وباتفاق مع حلفاء الحربين العالميتين الأولى والثانية من جهة أخرى..

إنما هروب أردوغان من الجهة الغربية نحو جهة المتوسطية سيكون مسماراً في نعش النهاية الحتمية لجنون الحقبة «الأردوغانية» التي عاشتها بلاده ودفعت وستدفع أكلافها عالية وغالية..

إذ أضحى أردوغان عدواً مشتركاً للغرب وللشرق بتصرّفاته الرعناء ولم تقتصر تلك العداوة على الخارج بل ظهرت وتغلغلت داخل بلاده وبين مواطنيه..

ودخل في دوامة الخلافات مع محيطه الشرقي والغربي وبات العمق الاستراتيجي أضغاث أحلام ولم يعد يساوي الحبر الذي كتب فيه أحمد داوود أوغلو كتابه موجهاً دعواته لحزبه السابق حزب العدالة والتنمية بالتوجه نحو الشرق والداخل المشرقي وباتت رؤية “صفر مشاكل” صفراً على شمال طموحات أردوغان الرعناء.. فأصبح الإقليم برمته ضدّه، فبينما تلوّح أوروبا بورقة العقوبات، تحرّك فرنسا قطعها الحربية إلى المتوسط، وواشنطن تفتر علاقتها به وتطلب منه بصريح العبارة سحب قواته من المتوسط وتدين “الجامعة العربية” تصرفاته وتطالبه بسحب قواته من سورية وليبيا وغيرها من البلاد التي عاث فيها فساداً ليبدو وكأنّ الجميع اتفق عليه ويتجه نحو تشكيل حلف جديد في رحم المنطقة لملاقاته، والذي يبدو في الزمن القريب قدراً مقدوراً..

في المحصلة تبدو نهاية «الأردوغانيّة» أمراً محتوماً وحقيقة مؤكدة، وفي التاريخ الكثير من أمثولات أطماع أردوغان وأوهامه التي تسببت بانهيار إمبراطوريات كبيرة واندثرت حضارات عظيمة، إذا ما افترضنا أنّ تركيا «حضارة» وإن كانت، فإنما حضارة مسروقة مبنية على مجازر..

وفي العودة إلى التاريخ، فإن كثيراً من الإمبراطوريات انهارت وفسدت واضمحلت من داخلها، بسبب تصرفات حكامها وما محاولة أردوغان لبناء دولة خلافة تركية من جديد، إلا أوهام مضادة لحركة التاريخ وتزييف لتطور البشرية..

وإذا ما استمرّ في تجاوزاته لكل الخطوط الحمر فإن نهايته حتماً ستأتي على يد تحالف دولي إقليمي، قد يتحول إلى حلف عسكري في القريب العاجل، للقضاء على أوهام السلطان الذي لم يعد له صاحب أو صديق..

Turkey Makes New Greece Threat ahead of Military Drill

Erdogan

 September 5, 2020

Turkish President Recep Tayyip Erdogan on Saturday issued a threat to Greece over simmering tensions in the eastern Mediterranean, the day before his forces launch military drills in the region.

Turkey and Greece, both Nato members, have been embroiled in an increasingly heated spat over gas and oil in the region since Turkey deployed an exploration vessel last month.

“As Turkey and the Turkish people, we are ready for every possibility and every consequence,” Erdogan said in a televised speech in Istanbul.

Turkish defense officials said they would start five days of military exercises on Sunday in the breakaway republic of northern Cyprus — an entity recognized only by Ankara.

Nato said this week Greek and Turkish leaders had agreed to take part in technical talks to avoid accidents between their navies.

But Greece later said it had not agreed to the talks, leading to accusations from Turkey that the EU country was shunning dialogue.

Greece and Cyprus have accused Turkey of breaching their sovereignty by drilling in their waters.

But Erdogan made it clear that he would not compromise, saying: “Turkey is ready for any kind of sharing (of energy resources) as long as it is fair.”

Turkey on August 10 deployed the Oruc Reis research vessel and an escorting flotilla of warships to the waters between Cyprus and the Greek islands of Kastellorizo and Crete.

The vessel’s stay in the contested waters has been extended three times.

Greece responded by staging naval exercises with several EU allies and the United Arab Emirates, not far from smaller ones Turkey conducted between Cyprus and Crete last week.

Source

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Another warm summer in East Med

August 15, 2020

Another warm summer in East Med

by Kakaouskia for the Saker Blog

Greetings to the Saker community and readers.

Summers tend to be warm in East Mediterranean and not just due to weather. This one is no exception with Greece and Turkey apparently determined to make a stand for what each perceives to be its waters and Exclusive Economic Zone.

Before I delve into the existing situation, I feel that some background information is required: about every 12-15 years or so tensions flare up between Greece and Turkey in the Aegean / East Med. Apart from the historical grievances certain parts of the population feel are important to correct, the main reason is the natural resources apparently present.

There was the war of 1974, between Cyprus and Turkey were Greek and Turkish army units actively fought each other.

Then there was the crisis of 1987 were Turkey declared that their research vessel Hora was to conduct research for hydrocarbons in the Aegean. The Greek government of the time deployed the fleet with orders to sink the Hora and in a major political coup made an agreement with Bulgaria (Warsaw pact still existed then) to provide military assistance in the event of a war with Turkey.

After that there was the Imia incident in 1996; again, fleets were deployed, special ops teams from each country took over some rocks and it almost blew into a war. You can see the pattern.

This time the theatre of operations is in the East Med, the area south east of Crete and Kastellorizo. For the first time not only are there confirmed gas and oil deposits, the political and economic landscape allows for the utilisation of said deposits. Thus, the focus of all countries in the region is there.

At first Turkey focused on Cyprus as it was the first country to ascertain claim of an EEZ and license drilling rights to French and Italian companies. Turkey hired a Norwegian crew to conduct hydrocarbon surveys in Cyprus’s EEZ; after Cyprus issued international arrest warrants for illegal activities the Norwegians withdrew, and Turkey changed strategy by deploying its own vessels with Turkish crews and always under naval escort.

Sidebar: Cyprus being a small country with an economy that cannot sustain a serious air force or navy recently announced that it has come into a defence agreement with France. The diplomatic language was deliberately vague; however, rumours have it that France will have a quasi-permanent naval presence in Cyprus. Moreover, according to the Cyprus ministry of Defence Cyprus ordered Exocet Blk3 anti-ship missiles and Mistral manpads from France in a deal worth €240M. The Exocet Blk3 has a range of ~200Km and a land attack capability, a first for Cyprus.

Then this year Turkey reached an agreement with the Libyan “government” that marked the EEZ zones of each country. The biggest problem with this agreement is that it not only encroaches into the Egyptian EEZ, it also completely ignores the presence of Greek islands and runs over them:

(image taken from https://www.internationalworldgroup.it/wp-content/uploads/2019/12/libya-turkey-eez.jpg)

Greece countered by making a similar agreement with Egypt that partially marks the EEZ of each country (the blue line on the unofficial map) and which is pending ratification from the respective parliaments. The area east of the 28E line has been left deliberately out of the negotiations as it requires an agreement between Greece, Turkey, Cyprus and Egypt.

(image taken from https://thepressproject.gr/app/uploads/2020/08/aoz-hellas-egypt.jpg)

The proposed East Med pipeline is expected to pass from that are as well:

(image taken from https://mediadc.brightspotcdn.com/dims4/default/e52cf5e/2147483647/strip/true/crop/1265×875+0+0/resize/1265×875!/quality/90/?url=https%3A%2F%2Fmediadc.brightspotcdn.com%2F62%2Fb1%2Fde0f172244da817f79e083c1ed3c%2Fwell.v24-05.2018-10-08.Psaropoulos_Map.TWS.jpg)

Turkey reacted to the agreement by deploying the survey vessel Oruç Reis with an escort of 4 (out of the 6 active) Burak class light corvettes (former French D’Estienne d’Orves-class avisos) and F-247 TCG Kemalreis, a Meko 200 TN track II frigate. This force is of moderate strength; while Kemalreis is a relatively modern ship, the corvettes are more of a token force.

(image taken from https://www.ptisidiastima.com/wp-content/uploads/2020/08/orus-reis-and-escort.jpeg)

Oruç Reis escorted by Turkish navy. Note that this formation is for the photo shoot; it is impossible to conduct hydrocarbon surveys like this.

Greece deployed part of its fleet to monitor the situation and cancelled the leave of military personnel. This resulted in a collision incident between F-451 Limnos (S class frigate) and F-247 TCG Kemalreis. Both countries claim their vessel damaged the other and both released images / videos to show that their respective ship remains operational.

Video supposedly showing Kemalreis after the collision with Limnos:

(image taken from https://www.ptisidiastima.com/wp-content/uploads/2020/08/FRGR138-2.png)

Limnos after the collision with Kemalreis. The lack of any “unofficial” videos of the collision so far is notable and says something about the information controls in place on both sides. In any case the truth, or at least solid indicators as to what really transpired will be revealed once both ships return to port.

The story of Greece has more credibility though as the image is guaranteed to have been taken after the event and in the present of witnesses; the day after the collision Greece and France conducted a joint naval exercise involving the following ships:

F-453 Spetsai (Meko 200 HN frigate)

F-451 Limnos (S class frigate)

F-460 Aigaion (S class frigate)

F-462 Kountouriotis (S class frigate)

FS La Fayette (La Fayette class frigate)

FS Tonnerre (Mistral class amphibious assault helicopter carrier)

Two French Rafale planes also participated in the drills and they used the facilities of 115 Combat Wing, Souda Bay.

Video of the Greek – French flotilla during the drills: https://youtu.be/gdojh9hWDoA

Based on the available open-source information, it is evident that Greece deployed a more substantial naval force to counter the Turkish threat. From a military point of view Turkey has the tactical advantage as the theatre of operations is closer to its shores and it can deploy additional forces faster if need be. Moreover, Greece cannot afford to risk the safety of the myriad of populated islands some of which are located closer to Turkey (one can say swimming distance).

Map roughly depicting the area of operations and distance from Attalya in Turkey and Souda Bay in Greece.

Greece is at a disadvantage as it is forced to react to Turkey’s movements. An EEZ is not equal to the territorial waters of a country; ships, even military ones, have the right of unopposed transit provided they do not engage in military / economic activities. Greece has no legal right to block the movements of the Turkish flotilla; it will have such a right if Oruç Reis starts conducting a survey. Even then, the acceptable process is to ask the ship to stop such activity and if it does not comply then board and arrest the captain. Oruç Reis is still a civilian vessel and one does not fire on unarmed civilian vessels.

Turkey on the other hand aims to demonstrate that Greece, claim or no claim over those waters cannot protect them effectively thus discouraging big oil from signing exploration / drilling contracts with Greece. A similar tactic was used against the French navy outside Libya during EU operation Irini. A French vessel tried to inspect a freighter suspected of carrying arms in violation of the embargo, only to be prevented by a passing (read escort) Turkish navy vessel that responded to the freighter’s captain request for help. In that case a few days after France complained and Turkey ignored them, unknown aircraft attacked the Libyan air base Turkey was using.

Militarily Greece and Turkey are practically equal. Turkey has an advantage in the form of air refuelling aircraft which allow its fighters to operate for longer periods of time in theatre and carry more weapons. Additionally the Turkish frigate force has 8 modernised Oliver Hazard Perry (OHP) class frigates which provide air cover to the fleet utilising Standard SM1-MR missiles. While the missiles themselves are considered obsolete and have been withdrawn from USN service, the Greek navy does not have such capability and relies on the protection of the Greek air force.

Greece on the other hand has the advantage given by the Mirage 2000 and Mirage 2000-5Mk2 aircraft bought from France. Unlike the US which has denied weapon sales to Greece in the past in order “not to shift the balance of power” France has provided Greece with ~100 Scalp EG cruise missiles for use by the M2000-5 aircraft giving the Greek air force sub-strategic strike capabilities as the export version has a range of 560Km. This is one of the reasons Turkey decided to purchase the S400 SAM complexes. Greece also invested heavily on the Exocet anti-ship missile in all its forms (air, ship and surface launched variants). The older M2000 aircraft of Greece can carry 2 such missiles each making them effective ship hunters over the Aegean. The surface launchers are mobile and can be placed on any island creating access denial areas.

Greek Mirage armed with Scalp cruise missile, courtesy of Hellenic Air Force:

Both countries have a similarly sized submarine fleet; Turkey with 12 subs (German Type 209 variants) and Greece with 11 (German Type 209 and Type 214 variants). Greece has a quality advantage here for the time being as 5 out of the 11 subs are equipped with air-independent propulsion systems and 4 of those being of the newer Type 214.

Sidebar: It is safe to assume that both countries have deployed at least part of their submarine force; the location and actions of said force will be very well hidden unlike surface combatants.

Notably Turkey did not deploy any of its OHP frigates in the East Med area; most likely they act as submarine hunters in the Aegean and as a missile shield for important installations / formations. As the operational status of the S400 complexes is not known, Turkey has no other long-range SAM option; the MIM-23 Hawk system is practically obsolete as recent events in Libya showed.

The militaries of both countries are plagued by problems. Turkey is facing financial difficulties; the officer corps suffered a blow from the purges after the failed coup against Erdogan that as word has it has not yet recovered from; the active involvement in Syria and Libya is occupying resources that cannot be used in the Aegean. The chart below compares the Turkish Lira with USD over the past 5 years. The seriousness of the problem is evident:

(chart from https://www.xe.com/currencycharts/?from=USD&to=TRY&view=5Y)

Turkey has poured a considerable sum of money into its defence industry, sometimes to the detriment of other areas of the economy. These investments have yielded products that however remain largely used only by Turkey thus any claims for their effectiveness remain to be proven.

For Greece, the years of being under IMF and EU monetary supervision have had their toll. Effectively Greece allocates €500 million per year for armaments; an amount that is inadequate. Recently negotiations between France and Greece for the purchase of Belhara class frigates have broken down due to cost. Moreover, in recent years the purchase and modernization choices for the Greek armed forces have been bizarre to put it mildly. It is said that major equipment is suffering from availability issues due to lack of spare parts and that even the newest Type 214 subs still operate with incredibly old torpedoes that partially negate the advantages of the platform. Also after a series of corruption scandals involving past ministers of defence that concluded in jail terms, the Greek parliament enacted an anti-corruption law aimed at defence procurement that makes it virtually impossible to sign any such contract, even a simple contract for spare parts from the sole manufacturer on the planet.

For now, the game of cat and mouse in East Med continues. Oruç Reis is practically bait Turkey is using to lure Greece into opening fire first. Greece is keeping its distance monitoring for any movement against an island. Neither country really wants to start a war, or at least to be viewed as being the one which started it. Whatever the case militaries cannot be constantly deployed; attrition, both material and of personnel is a fact of life and at some point, something will give.

Iran Intelligence Ministry rejects reports on US-based group ringleader’s overseas arrest

Press TV

Monday, 03 August 2020 5:51 AM  [ Last Update: Monday, 03 August 2020 6:44 AM ]

US Rep. Ilhan Omar (D-MN) (L) talks with Speaker of the House Nancy Pelosi (D-CA) during a rally with fellow Democrats before voting on H.R. 1, or the People Act, on the East Steps of the US Capitol on March 08, 2019 in Washington, DC. (AFP photo)
This photo released by Fars news agency shows Jamshid Sharmahd after his capture by Iranian security forces.

Iran’s Intelligence Ministry, which recently announced the apprehension of the ringleader of a US-based anti-Iran terrorist group, has rejected reports alleging that the person in question was actually nabbed in Tajikistan.

The reports “are roundly rejected,” the Ministry said in a statement that was cited by Tasnim News Agency on Sunday.

Statements released by the Ministry’s Public Relations Office are the ultimate source of any official information detailing the operations that are carried out by the Ministry’s operatives, the statement asserted.

The Ministry announced arresting Jamshid Sharmahd, the ringleader of the Tondar (Thunder) outfit, otherwise known as the so-called “Kingdom Assembly of Iran,” on Saturday, notifying that he had directed “armed operations and acts of sabotage” inside Iran from the US in the past.

Upon arrest, Sharmahd admitted to providing explosives for a 2008 attack in southern Iran that killed 14 people. US-based group ringleader admits providing explosives for 2008 deadly bomb attack in Iran

Upon arrest, the ringleader of a US-based anti-Iran terrorist group admits providing explosives for a 2008 attack in southern Iran.

“I was called before the bomb was about to be set off,” he was seen confessing in footage provided by the Islamic Republic of Iran News Network later in the day. 

The attack that targeted the Seyyed al-Shohada mosque in the city of Shiraz also wounded 215 others.

According to the Ministry, the group had planned to carry out several high-profile and potentially hugely-deadly attacks across the Islamic Republic, but had been frustrated in the attempts owing to intricate intelligence operations targeting the outfit. These included blowing up of Sivand Damn in Shiraz, detonating cyanide-laden bombs at Tehran International Book Fair, and carrying out explosions during mass gatherings at the Mausoleum of the late founder of the Islamic Republic, Imam Khomeini.

Details of the arrest

Intelligence Minister Mahmoud Alavi, meanwhile, congratulated the Ministry’s operatives on their success in arresting the terrorist ringleader, detailing the circumstances that surrounded the operation.

Sharmahd enjoyed “serious support” from the American and Israeli intelligence services, which “considered it to be far-fetched for the Iranian Intelligence Ministry to be able to penetrate their intelligence cover and put him under its command through an intricate operation,” the minister said.

The Americans still believe that pictures showing Sharmahd in Iran after his arrest have been snapped outside the Islamic Republic, he added, saying, “They will found out about everything [concerning the operation] in near future.”

Alavi differentiated between Sharmahd’s outfit and other so-called royalist groups, which mostly resort to rhetoric and statements to try to establish themselves.

Tondar “was the only movement that was very violent and was after establishing itself through terrorist operation,” the minister noted.

‘Iran neutralized 27 ops by Tondar’

Alavi noted that the Ministry had succeeded in frustrating 27 operations by Sharmahd and his group.

The minister again highly rated the arrest operation, recalling previous remarks by Sharmahd, in which he had considered himself to be comfortably nested within the US Federal Bureau of Investigation.

“He considered his place to be lying on the sixth floor of the FBI [‘s building],” and now sees himself in the grips of Iranian intelligence operatives, Alavi said.

Following the terrorist attack in Iran, the Islamic Republic notified the Interpol of Sharmahd’s identity and demanded his arrest. However, he would still travel freely between countries with his real identity.

Alavi said the inaction despite Tehran’s complaint “indicates the hollowness of the Americans and their European allies’ claim of fighting terrorism.”

The minister finally hailed that the arrest “has not been and will not be” the first such complicated operation to be aced by Iranian intelligence operatives, asserting that “they have carried out such arrests in the past, the due time for explaining which has not yet arrived.”


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Iran’s Future Will Be Prosperous: A 150-Year Fight for Sovereignty From Oil to Nuclear Energy

Iran's Future Will Be Prosperous: A 150-Year Fight for Sovereignty ...

Cynthia Chung July 28, 2020

This image has an empty alt attribute; its file name is chung_1-175x230.jpg

This is Part 3 of the series “Follow the Trail of Blood and Oil”.

 Part 1 is a historical overview of Iran’s long struggle with Britain’s control over Iranian oil and the SIS-CIA overthrow of Iran’s Nationalist leader Mosaddegh in 1953. 

Part 2 covers the period of the Shah’s battle with the Seven Sisters, the 1979 Revolution and the Carter Administration’s reaction, which was to have immense economic consequences internationally, as a response to the hostage crisis.

In this article it will be discussed why, contrary to what we are being told, Iran’s fight for the right to develop nuclear energy will create stability and prosperity in the Middle East rather than an “arc of crisis” scenario.

From Arc of Crisis to Corridors of Development

Akbar Hashemi Rafsanjani became President of Iran on August 16th 1989 and served two terms (1989-1997). Rafsanjani, who is considered one of the Founding Fathers of the Islamic Republic, began the effort to rebuild the country’s basic infrastructure, after the ravages of the Iran-Iraq War and launched a series of infrastructure projects not only domestically but in cooperation with neighbouring countries. Following the dissolution of the Soviet Union in 1991, Rafsanjani moved to establish diplomatic relations with the newly independent Central Asian Republics, forging economic cooperation agreements based on building transportation infrastructure.

The major breakthrough in establishing this network came in May 1996 (after a 4 year construction) with the opening of the Mashhad-Sarakhs-Tajan railway, which provided the missing link in a network connecting landlocked Central Asian Republics to world markets, through Iran’s Persian Gulf ports.

At the historical launching of the railway, Rafsanjani was quoted as saying the expansion of communications, roads and railway networks, and hence access to world markets can “enhance amity, confidence and trust among governments and lead to mutual understanding and greater solidarity…The recent global developments demonstrate the world is moving toward greater regional cooperation, and regionally coordinated economic growth and development will consolidate peace and stability and pave the way for enhancement of international relations.

In addition, at the end of Dec 1997, a 125 mile pipeline between Turkmenistan and northeast Iran was opened, gaining access to one of the largest untapped energy reserves in the world, the Caspian Sea Basin, designed to carry 12 billion cubic feet of natural gas a year.

Rafsanjani was fully aware of the Arc of Crisis prophecy that the U.S. was trying to convince the international community of, that basically, the Middle East was full of savages and would become a hot-bed for Soviet terrorism if left alone. It was also understood that Iran’s geographic location was the linchpin in determining not only Middle East geopolitics, but Eurasian relations.

To counteract this “prophecy”, which was in fact a “vision” for the Middle East, Rafsanjani understood that economic development and cooperation with Iran’s neighbours was key to avoiding such chaos.

In 1996, Rafsanjani founded the Executives of Construction of Iran Party, along with 16 members of cabinet, dedicated to Iran’s increasing participation in world markets and industrialization with emphasis on progress and development. The party’s view is that economic freedom is linked to cultural and political freedom.

Rafsanjani publicly supported Khatami as the next president- a highly influential and significant move.

Khatami’s Call for a “Dialogue Amongst Civilizations”

Mohammad Khatami became President of Iran on the 3rd August 1997 and served two terms (1997-2005). He was elected by an overwhelming majority (69% in 1997 and 77.9% in 2001) with a record voter turnout and was extremely popular amongst women and young voters. There was much optimism that Khatami’s presidency would not only bring further economic advances for Iran, but also that Iran’s international relations could begin to mend with the West and end Iran’s economic isolation.

It was Khatami who would first propose the beautiful concept “Dialogue Amongst Civilizations” and delivered this proposal at the UN General Assembly in September 1998 with the challenge that the first year of the millennium be dedicated to this great theme. It was endorsed by the UN.

You may be inclined to think such a concept fanciful, but Khatami was actually proposing a policy that was in direct opposition to the “crisis of Islam” and “clash of civilizations” geopolitical theories of Bernard Lewis and Samuel P. Huntington. Khatemi understood that to counteract the attempt to destabilise relations between nations, one would have to focus on the common principles among different civilizations, i.e. to identify a nation’s greatest historical and cultural achievements and build upon these shared heritages.

This is the backbone to what China has adopted as their diplomatic philosophy, which they call win-win cooperation and which has led to the creation of the BRI infrastructure projects, which are based on the recognition that only through economic development can nations attain sustainable peace. Italy would be the first in Europe to sign onto the BRI.

In 1999 Khatami would be the first Iranian president, since the 1979 Revolution, to make an official visit to Europe. Italy was the first stop, where Khatami had a long meeting with Pope John Paul II and gave an inspiringly optimistic address to students at the University of Florence.

Khatami stated his reason for choosing to visit Italy first was that they shared in common renaissance heritages (the Italian and Islamic Renaissances). Since the two nations had made significant contributions to contemporary civilization, an immense potential existed for a strategic relationship. It was also significant that Italy had never had a colonial presence in the Middle East. During his visit, Khatami had suggested that Italy could function as the “bridge between Islam and Christianity”.

Khatami further elaborated on the concept of a “bridge between Islam and Christianity” in an interview published by La Republica:

To delve into past history without looking at the future can only be an academic diversion. To help human societies and improve the condition of the world, it is necessary to consider the present state of relations between Asian, in particular Muslim, countries, and Europe…Why do we say, in particular, Muslim? Because Islam is Europe’s next door neighbor; unlike individuals, nations are not free to choose or change neighbors. Therefore, apart from moral, cultural, and human reasons, out of historical and geographical necessity, Islam and Europe have no choice but to gain a better and more accurate understanding of each other, and thus proceed to improve their political, economic, and cultural relations. Our future cannot be separated from each other, because it is impossible to separate our past.

In June 2000, Khatami made a state visit to China with a 170 member delegation. In a lecture delivered at Beijing University Khatami stated:

Even if one were to rely solely on historical documents we can still demonstrate the existence of uninterrupted historical links between China and Iran as early as the third century BC. [The historic Silk Road was the vehicle of cultural exchange where] we can observe a striking spectrum of cultural and spiritual interchanges involving religions, customs, thoughts, literature and ethics, which on the whole, added to the vitality and vivacity of eastern culture and thought…[and that] the Chinese outlook has been instrumental in opening up the way to the fruitful and constructive historical discourses throughout the ages, due to its emphasis on the intellectual over the political, in an attempt to epitomize wisdom, temperance and parsimony…Emphasis on our long standing close historical ties and dialogue among the great Asian civilizations, is a valuable instrument for the regenerating of thought, culture, language, and learning…in Asian civilizations, culture has always been the core of the economic and political process…[and] therefore, we are compelled to give a more serious thought to the revival of our cultures…

Khatami concluded with “The future belongs to the cultured, wise, courageous and industrious nations.

Dr. Strangelove and the “Islamic Bomb”

The U.S. was not always so antagonistic to Iran’s right to sovereignty. In 1943, President Roosevelt created the Iran Declaration which was signed by both Stalin and Churchill at the Tehran Conference, effectively ending Iran’s occupation by foreign powers.

In 1957, following Eisenhower’s “Atoms for Peace” initiative, the U.S. and Iran signed the “Cooperation Concerning Civil Uses of Atoms” which led to the 1959 creation of the Tehran Nuclear Research Center. And in 1960, first generation Iranian scientists were trained at MIT. In 1967, the U.S. supplied Iran with a 5 megawatt research reactor and enriched uranium fuel!

The reason why the relationship went sour, as Washington incessantly repeats, is that Iran is no longer trustworthy after the hostage crisis debacle shortly after the 1979 Revolution. The U.S., confident on their high horse, has felt justified ever since to dictate to Iran how they should run their nation.

Funny that it is hardly ever mentioned in the same breath that the U.S. was directly involved in the illegal removal of Iran’s Prime Minister Mosaddegh in 1953 who had successfully nationalised Iran’s oil and purged the nation of its British imperialist infestation.

Iran had proceeded in accordance with international law and won the case for nationalising Iran’s oil at The Hague and UN Security Council, against the British who were claiming their company “rights” to Iran’s resources. When Britain humiliatingly lost both high profile cases, Britain and the U.S. proceeded to implement TPAJAX and illegally overthrew the constitutional government of Iran, removing Mosaddegh as Prime Minister and installing an abiding puppet in his place.

Despite this, the U.S. acts as if it were justified in its incredibly hostile 40 year foreign policy towards Iran, largely over a hostage crisis (to which all hostages were safely returned home), and which was likely purposefully provoked by the U.S. as a pretext to sabotaging the European Monetary System (see my paper on this).

If Iran can forgive what the U.S. did to throw their country into disarray and keep their beloved leader Mosaddegh locked away as a political prisoner for the rest of his life, who was even refused a proper burial (1), then the U.S. government is in no position to harbour such distrust and hatred over the distant past.

Although Iran is also incessantly accused of alleged terrorist activity, there is not one international court case to date that has actually provided evidence to follow through with such charges. What is standing in the way of this occurring if Iran’s crimes are apparently so immense and far reaching and are a matter of international security, as the U.S. government frequently protests?

These alleged terrorist accusations seem to be based in the same form of “reasoning” behind the incessant accusations that Iran is planning on building an “Islamic Bomb”. In 2007, under the fanatical neoconservative Dick Cheney (via operation Clean Break), the U.S. came very close to invading Iran on the pretext that Iran was actively working towards such a goal.

These threats occurred despite the Director of the International Atomic Energy Agency (IAEA), ElBaradei, insisting that Iran was cooperating with the IAEA demands in accordance with NPT standards and that there was no evidence to support that Iran was working on nuclear weapons. In fact, ElBaradei was so upset over Washington’s threats of war that he took to the press daily to emphasise that Iran was cooperating fully and there was no evidence to justify an invasion.

However, it wouldn’t be until the release of the National Intelligence Estimate on Dec 3, 2007 that Cheney’s fantasy was finally dashed against the rocks. Within the NIE report, which was produced by American intelligence agencies, it was made crystal clear that Iran in fact had no military nuclear program since at least 2003 but possibly even further back. It was also no secret that the only reason why the report was made public was because members of the American intelligence community made it known that they were willing to go to the press about it, even if it meant ending up in prison.

Incredibly, Bush’s response to the press over this news was “Iran was dangerous, Iran is dangerous, and Iran will continue to be dangerous…”

Looking past the absurdity of Bush’s statement that Iran is dangerous, only 5 years after the illegal invasion of Iraq, justified by cooked British Intelligence, and the very real attempt to invade Iran in turn over fabricated accusations, the issue is in fact nothing to do with what Washington is claiming is their problem with Iran.

Atoms for Peace or Nuclear Apartheid?

The real “problem” with Iran is that it has become a great thorn in the “arc of crisis” game-plan. Despite Iran once being flooded with MI6, CIA and Israeli Mossad operatives, the Iranians have been largely successful in purging their nation of this infestation. Iran is thus refusing to be the west’s geopolitical linchpin. The more autonomous and prosperous Iran becomes, the greater the thorn.

The assassination of Gen. Maj. Soleimani in Jan 2020, was meant to be nothing less than a blatant provocation, as Bolton giddily tweeted, to cause Iran to take a misstep that would have justified a U.S. invasion and allowed for a reboot of the “arc of crisis”, flooding the country with actual terrorist groups, following the Iraq and Libyan models.

The real “threat” of Iran was expressed clearly when then President Bush Jr. visited the Middle East in Jan 2008 in an attempt to organise Arab states to offer their territory for U.S. military aggression against Iran. What he received as a response whether in Kuwait, Bahrain, UAE or Saudi Arabia was a resounding no.

The Al-Riyadh newspaper, which represents the views of the Saudi government, went so far as to state “We refuse to be used to launch wars or tensions with Iran…If the president [of the U.S.] wants to obtain the solidarity of all the Arabs…he must focus, rationally, on the most important issue which is the question of peace.

Overlapping Bush’s visit, the Foreign Minister of Iraq joined with the Iranian Foreign Minister at a Tehran press conference to announce: “My country knows who is our friend and who is our enemy, and Iran is our friend.

It is clear that despite the attempts to bring these nations to each other’s throats, the jig is up, and the tyrannical presence of the U.S. military in the Middle East is only going to unite these countries further. There will be no T.E. Lawrence organising of a Bedouin tribe this time around.

It is understood that if Iran were permitted to enter the world markets unhindered and to develop nuclear energy to sufficiently provide for its people, then Iran would become one of the top countries in the world. And as their Arab neighbours recognise, this would bring not only wealth and prosperity to their nations in turn, but the very much desired peace and security.

Iran as an economic powerhouse would also certainly align itself with Russia and China, as it has already begun, due to their common philosophy oriented in a multipolar governance frame emphasised by a win-win idea of economic cooperation. This alliance would naturally draw India, Japan and notably western Europe into its economic framework like the gravitational pull of a sun, and would result in the termination of the NATO-U.S. military industrial complex by ending the divide between east and west politics.

The fight for nuclear energy has always been about the fight for the right to develop one’s nation. And economic development of regions, such as the Middle East, is key to achieving sustainable peace. The reason why most countries are not “granted” this right to use nuclear power is because they are meant to remain as “serf” countries under a unipolar world order. Additionally, amongst the “privileged” countries who have been given the green light to possess uranium enrichment facilities, they are being told that they now need to shut down these nuclear capabilities under a Green New Deal.

This unipolar outlook was made evident by the Bush Administration’s attempt to assert guidelines that no country should be allowed to enrich uranium even to the low levels required for fuel for nuclear electric power plants, unless it is already in the U.S. dominated “Nuclear Suppliers Group”. All other nations would only be permitted to purchase power plant fuel from these “supplier” countries…with political conditions of course.

Everyone knows that oil revenues are not reliable for financing economic growth and Venezuela is a stark example of this. By limiting countries in the Middle East to oil as the main revenue, an incredibly volatile economic situation for the entire region is created, in addition to a complete subservience to “oil geopolitics”. Every nation has the right to defend itself against economic warfare by diversifying and stabilising its economy, and nuclear energy is absolutely key.

In British-based financial oligarchism, which is what runs the City of London (the financial center of the world for over 400 years to this day), the essential policy outlook which lurks behind the international oil cartels, is that who controls the oil, gas, strategic minerals, and food production will ultimately control the world, after the mass of paper values of a dying financial system have been swept away.

Also by this author

Cynthia Chung is a lecturer, writer and co-founder and editor of the Rising Tide Foundation (Montreal, Canada).

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A Historical Reminder of What Defines the United States, As Told by a Former Slave

The Enemy Within: A Story of the Purge of American Intelligence

The Sword of Damocles Over Western Europe: Follow the Trail of Blood and OilTo Understand Iran’s 150-Year Fight, Follow the Trail of Blood and Oil

The author can be reached at cynthiachung@tutanota.com

The Sword of Damocles Over Western Europe: Follow the Trail of Blood and Oil

The Sword of Damocles Over Western Europe: Follow the Trail of ...

Cynthia Chung June 3, 2020

In Part 1, we left off in our story at the SIS-CIA overthrow of Iran’s Nationalist leader Mohammad Mosaddegh in 1953. At this point the Shah was able to return to Iran from Rome and British-backed Fazlollah Zahedi, who played a leading role in the coup, replaced Mosaddegh as Prime Minister of Iran.

Here we will resume our story.

An Introduction to the ‘Shah of Shahs’, ‘King of Kings’

One important thing to know about Mohammad Reza Shah was that he was no fan of British imperialism and was an advocate for Iran’s independence and industrial growth. That said, the Shah was a deeply flawed man who lacked the steadfastness to secure such a positive fate for Iran. After all, foreign-led coups had become quite common in Iran at that point.

He would become the Shah in 1941 at the age of 22, after the British forced his father Reza Shah into exile. By then, Persia had already experienced 70 years of British imperialism reducing its people to near destitution.

Mohammad Reza Shah had developed very good relations with the U.S. under President FDR, who at the behest of the Shah, formed the Iran Declaration which ended Iran’s foreign occupation by the British and the Soviets after WWII.

His father, Reza Shah came into power after the overthrow of Ahmad Shah in 1921, who was responsible for signing into law the infamous Anglo-Persian Agreement in 1919, which effectively turned Iran into a de facto protectorate run by British “advisors” and ensured the British Empire’s control of Iran’s oil.

Despite Reza Shah’s problems (Mosaddegh was sent into exile during his reign), he had made significant achievements for Iran. Among these included the development of transportation infrastructure, 15 000 miles of road by 1940 and the construction of the Trans-Iranian Railway which opened in 1938.

Mohammad Reza Shah wished to continue this vein of progress, however, he would first have to go through Britain and increasingly the U.S. in order to fulfill Iran’s vision for a better future.

In 1973, Mohammad Reza Shah thought he finally found his chance to turn Iran into the “world’s sixth industrial power” in just one generation…

OPEC and the European Monetary System vs the ‘Seven Sisters’

In 1960, OPEC was founded by five oil producing countries: Venezuela, Iraq, Saudi Arabia, Iran and Kuwait in an attempt to influence and stabilise the market price of oil, which would in turn stabilise their nation’s economic return. The formation of OPEC marked a turning point toward national sovereignty over natural resources.

However, during this period OPEC did not have a strong voice in such affairs, the main reason being the “Seven Sisters” which controlled approximately 86% of the oil produced by OPEC countries. The “Seven Sisters” was the name for the seven transnational oil companies of the “Consortium of Iran” cartel which dominated the global petroleum industry, with British Petroleum owning 40% and Royal Dutch Shell 14%, giving Britain the lead at 54% ownership during this period.

After 1973, with the sudden rise of oil prices, the Shah began to see an opportunity for independent action.

The Shah saw the price increase as a way to pull his country out of backwardness. To the intense irritation of his sponsors, the Shah pledged to bring Iran into the ranks of the world’s top ten industrial nations by the year 2000.

The Shah understood that in order for this vision to become a reality, Iran could not just stay as a crude oil producer but needed to invest in a more stable future through industrial growth. And as it just so happened, France and West Germany were ready to make an offer.

In 1978, France and West Germany led the European community, with the exception of Great Britain, in the formation of the European Monetary System (EMS). The EMS was a response to the controlled disintegration that had been unleashed on the world economy after the fixed exchange rate became a floating exchange rate in 1971.

French foreign minister Jean Francois–Poncet had told a UN press conference, that it was his vision that the EMS eventually replace the IMF and World Bank as the center of world finance.

For those who are unaware of the devastation that the IMF and World Bank have wreaked upon the world, refer to John Perkins’ “Confession of an Economic Hit Man”… the situation is 10X worst today.

As early as 1977, France and West Germany had begun exploring the possibility of concretizing a deal with oil producing countries in which western Europe would supply high-technology exports, including nuclear technology, to the OPEC countries in exchange for long-term oil supply contracts at a stable price. In turn, OPEC countries would deposit their enormous financial surpluses into western European banks which could be used for further loans for development projects… obviously to the detriment of the IMF and World Bank hegemony.

The Carter Administration was not happy with this, sending Vice President Walter Mondale to France and West Germany to “inform” them that the U.S. would henceforth oppose the sale of nuclear energy technology to the Third World…and thus they should do so as well. West Germany’s nuclear deal with Brazil and France’s promise to sell nuclear technology to South Korea had already come under heavy attack.

In addition, the Shah had started a closer partnership with Iraq and Saudi Arabia cemented at OPEC meetings in 1977 and 1978. In a press conference in 1977 the Shah stated he would work for oil price stability. Together Saudi Arabia and Iran at the time produced nearly half of OPEC’s entire output.

If an Iran-Saudi-Iraq axis established a permanent working relationship with the EMS it would have assembled an unstoppable combination against the London world financial center.

Recall that France and West Germany had already ignored British calls to boycott Iranian oil in 1951 under Mosaddegh, and therefore, there was no indication that they were going to follow suit with Britain and the U.S. this time either.

As far as London and Washington were concerned, the Shah’s reign was over.

British Petroleum, BBC News and Amnesty International as Servants to the Crown

Were we to select a date for the beginning of the Iranian revolution it would be November 1976, the month that Amnesty International issued its report charging brutality and torture of political prisoners by the Shah of Iran.

Ironically, the SAVAK which was the secret police under the Shah from 1957 to 1979, was established and pretty much run by the SIS (aka MI6), CIA and the Israeli Mossad. This is a well-known fact, and yet, was treated as somehow irrelevant during Amnesty International’s pleas for a humanitarian intervention into Iran.

For those who haven’t already discovered Amnesty International’s true colors from their recent “work” in Syria… it should be known that they work for British Intelligence.

Gruesome accounts of electric shock torture and mutilation were printed in the London Times, the Washington Post and other respected press. Within a few months, President Carter launched his own “human rights” campaign. With this, the international humanitarian outcry got bigger and louder demanding the removal of the Shah.

The Shah was caught between a rock and a hard place, as he was known not to be strong on “security” matters and often left it entirely up to the management of others. Once Amnesty International sounded the war-cry, the Shah made the mistake of not only defending the undefendable SAVAK in the public arena but continued to trust them entirely. It would be his biggest mistake.

With the international foment intensifying, the British Broadcasting Corporation’s (BBC) Persian language broadcasts into Iran fanned the flames of revolt.

During the entire year of 1978 the BBC stationed dozens of correspondents throughout the country in every remote town and village. BBC correspondents, often in the employ of the British secret service, worked as intelligence operatives for the revolution.

Each day the BBC would report in Iran gory accounts of alleged atrocities committed by the Iranian police, often without checking the veracity of the reports. It is now acknowledged that these news reports helped to fuel and even organise the political foment towards an Iranian revolution.

In 1978, British Petroleum (BP) was in the process of negotiating with the government of Iran the renewing of the 25 year contract made in 1953 after the Anglo-American coup against Mosaddegh. These negotiations collapsed in Oct 1978, at the height of the revolution. BP rejected the National Iranian Oil Company’s (NIOC) demands, refusing to buy a minimum quantity of barrels of Iranian oil but demanding nonetheless the exclusive right to buy that oil should it wish to in the future!

The Shah and NIOC rejected BP’s final offer. Had the Shah overcome the revolt, it appeared that Iran would have been free in its oil sales policy in 1979 – and would have been able to market its own oil to the state companies of France, Spain, Brazil and many other countries on a state-to-state basis.

In the American press hardly a single line was published about the Iranian fight with BP, the real humanitarian fight for Iranians.

The Sword of Damocles

The “Arc of Crisis” is a geopolitical theory focused on American/western politics in regards to the Muslim world. It was first concocted by British historian Bernard Lewis, who was regarded as the leading scholar in the world on oriental studies, especially of Islam, and its implications for today’s western politics.

Bernard Lewis was acting as an advisor to the U.S. State Department from 1977-1981. Zbigniew Brzezinski, the National Security Advisor, would announce the U.S.’ adoption of the “Arc of Crisis” theory by the American military and NATO in 1978.

It is widely acknowledged today, that the “Arc of Crisis” was primarily aimed at destabilising the USSR and Iran. This will be discussed further in Part 3 of this series.

Egypt and Israel were expected to act as the initiating countries for the expansion of NATO into the Middle East. Iran was to be the next link.

Iran’s revolution was perfectly timed with the launching of the “Arc of Crisis”, and NATO had its “humanitarian” cause for entering the scene.

However, the fight was not over in Iran.

On Jan 4th, 1979, the Shah named Shapour Bakhtiar, a respected member of the National Front as Prime Minister of Iran. Bakhtiar was held in high regard by not only the French but Iranian nationalists. As soon as his government was ratified, Bakhtiar began pushing through a series of major reform acts: he completely nationalised all British oil interests in Iran, put an end to the martial law, abolished the SAVAK, and pulled Iran out of the Central Treaty Organization, declaring that Iran would no longer be “the gendarme of the Gulf”.

Bakhtiar also announced that he would be removing Ardeshir Zahedi from his position as Iran’s Ambassador to the U.S.

An apple that did not fall far from the tree, Ardeshir is the son of Fazlollah Zahedi, the man who led the coup against Mosaddegh and replaced him as Prime Minister!

Ardeshir was suspected to have been misinforming the Shah about the events surrounding the Iranian revolution and it was typical that he spoke to Brzezinski in Washington from Teheran over the phone at least once a day, often twice a day, as part of his “job” as Ambassador to the U.S. during the peak of the Iranian revolution.

With tensions escalating to a maximum, the Shah agreed to transfer all power to Bakhtiar and left Iran on Jan 16th,1979 for a “long vacation” (aka exile), never to return.

However, despite Bakhtiar’s courageous actions, the damage was too far gone and the hyenas were circling round.

It is known that from Jan 7th to early Feb 1979, the No. 2 in the NATO chain of command, General Robert Huyser, was in Iran and was in frequent contact with Brzezinski during this period. It is thought that Huyser’s job was to avoid any coup attempts to disrupt the take-over by Khomeini’s revolutionary forces by largely misleading the Iranian generals with false intel and U.S. promises. Recently declassified documents on Huyser’s visit to Iran confirm these suspicions.

During the Shah’s “long vacation” his health quickly deteriorated. Unfortunately the Shah was never a good judge of character and kept a close dialogue with Henry Kissinger as to how to go about his health problems. By Oct 1979, the Shah was diagnosed with cancer and the decision was made to send him to the U.S. for medical treatment.

This decision was very much pushed for and supported by Brzezinski and Kissinger, despite almost every intelligence report indicating this would lead to a disastrous outcome.

In Nov 18th 1979, the New York Times reported:

‘The decision was made despite the fact that Mr. Carter and his senior policy advisers had known for months that to admit the Shah might endanger Americans at the embassy in Teheran. An aide reported that at one staff meeting Mr. Carter had asked, “When the Iranians take our people in Teheran hostage, what will you advise me then?” ‘

On Oct 22, 1979, the Shah arrived in New York to receive medical treatment. Twelve days later, the U.S. Embassy in Teheran was taken over and 52 American hostages would be held captive for 444 days!

With the taking of the hostages, the Carter Administration, as preplanned under the “Arc of Crisis”, set into motion its scenario for global crisis management.

The hostage crisis, a 100% predictable response to the U.S.’ decision to accept the Shah into America, was the external threat the Carter Administration needed to invoke the International Emergency Economic Powers Act, authorising the President to regulate international commerce after declaring a national emergency in response to an extraordinary threat

With this new authority, President Carter announced the freezing of all U.S.-Iranian financial assets, amounting to over $6 billion, including in branches of American banks abroad. Instantly, the world financial markets were thrown into a panic, and big dollar depositors in western Europe and the U.S., particularly the OPEC central banks, began to pull back from further commitments.

The Eurodollar market was paralyzed and most international lending halted until complex legal matters were sorted out.

However, the most serious consequence by far from the Carter Administration’s “emergency actions,” was in scaring other OPEC governments away from long-term lending precisely at a time when West Germany and France were seeking to attract deposits into the financial apparatus associated with the European Monetary System (EMS).

In addition, the Carter Administration’s insistent demands that western Europe and Japan invoke economic sanctions against Iran was like asking them to cut their own throats. Yet, the raised political tensions succeeded in breaking apart the economic alliances and the slow blood-letting of Europe commenced.

Within days of the taking of the hostages, the pretext was given for a vast expansion of U.S. military presence in the Middle East and the Indian Ocean.

Sound familiar?

The message was not lost on Europe. In a Nov 28, 1979 column in Le Figaro, Paul Marie de la Gorce,  who was in close dialogue with the French presidential palace, concluded that U.S. military and economic intervention into Iran would cause “more damages for Europe and Japan than for Iran.” And that those who advocate such solutions are “consciously or not inspired by the lessons given by Henry Kissinger.”

During the 444 day hostage crisis, a full-scale U.S. invasion was always looming overhead. Such an invasion was never about seizing the oil supply for the U.S., but rather to deny it to western Europe and Japan.

If the U.S. were to have seized the oil supply in Iran, the body blow to the western European economies would have knocked out the EMS. Thus, during the 444 day holding of American hostages, this threat was held over the head of Europe like the sword of Damocles.

It is sufficed to say that today’s ongoing sanctions against Iran cannot be understood in their full weight and international ramifications without this historical background.

To Understand Iran’s 150-Year Fight, Follow the Trail of Blood and Oil

To Understand Iran's 150-Year Fight, Follow the Trail of Blood and ...

Cynthia Chung May 23, 2020

This past Sunday, April 17th, a dispute between Iran and the U.S. occurred over the U.S.’ decision to increase its military presence in Caribbean and Eastern Pacific waters, with the purported reason being a counter-narcotics campaign.

Iranian foreign minister Mohammad Javad Zarif wrote to the UN Secretary-General Antonio Guterres this past Sunday, that the real purpose for this move by the U.S. is to “intervene and create disruption in the transfer of Iran’s fuel to Venezuela.” In the same letter, Zarif expressed concern over “the United States’ intention to consider dangerous, unlawful and provocative measures against Iranian oil tankers engaged in perfectly lawful international commerce with the Bolivarian Republic of Venezuela.”

The Iranian deployment consists of five tankers carrying around $45.5million of gasoline and related products, as part of a wider deal between Iran and Venezuela. The U.S. has imposed sanctions on both nations’ oil exports.

For the first time since 1962, Iran has requested IMF assistance due to severe shortages created by the COVID-19 pandemic, with Iran requesting an emergency loan of $5 billion. However, the request is currently being blocked by the U.S., which accounts for slightly more than 16.5% of IMF’s voting shares and has an effective veto over decisions.

Iran is presently experiencing a critical shortage of medicines and equipment amid the pandemic, and yet is prohibited from purchasing medicines and supplies because of the banking sanctions.

It is clear that these manoeuvres against Iran are not on behalf of anyone’s “security” but rather an attempt to force Iran to finally bend the knee and be reduced to a state of complete dependence.

Iran has fought a long fight to claim its independence from western powers.

However, what if I were to tell you that once there was a time when Iran and the U.S. had good relations and that the U.S. was in fact the leading promoter and supporter of Iran’s sovereignty?

Almost out of a Shakespearean play of tragedy and betrayal, the relationship was jeopardised by a third player. As identified by John Perkins, in his book Confessions of an Economic Hit Man, the first ever U.S. coup against a foreign country was the overthrow of Iran’s nationalist Prime Minister Mosaddegh in 1953. However, what is often left out…is that it was a British authored and designed operation.

In order for us to understand how and why the U.S. was dragged into such an affair, our story starts 150 years ago…

Dieu et mon droit

It all started in 1872, with Nasir al-Din Shah having granted to the British Baron Julius de Reuter, rights to Iran’s entire economic estate. Reuter not only controlled Iran’s industry, farming, and rail transportation, but also held the right to issue currency and to set up a national bank, called the Imperial Bank of Persia, which was under direct British control.

In 1901, Muzzaffar al-Din Shah negotiated what became known as the D’Arcy Contract, granting William Knox D’Arcy, a millionaire London socialite, the special and exclusive privilege to basically own and manage the natural gas and petroleum of Iran for a term of 60 years.

In May 26th 1908 D’Arcy struck pay-dirt in Iran, discovering a huge oil field in Masjed-Soleiman. Britain immediately set up APOC in 1908, purchasing the rights to the black gold from D’Arcy. Six years later, First Lord of the Admiralty Winston Churchill gave the order to purchase 51% of APOC, effectively nationalizing the company. This was to ensure the free flow of oil to the British navy. It was the first company to extract petroleum from Iran.

Iran received only 16% of the royalties on the oil.

Britain continued to pursue total control of Iran, not through colonial occupation, but rather through economic “agreements”. In the midst of carving up the empire’s new “jewels” of the Middle East from the Sykes-Picot fraud on the Arabian people and the illegal British occupation of Palestine, the notorious Anglo-Persian Agreement of Aug 19, 1919 was also signed, with London effectively turning Iran into a de facto protectorate run by British “advisors”. Britain had succeeded in becoming the masters of Iran’s natural resources through this agreement.

Iran received almost nothing in return, not even oil from APOC for domestic consumption, but rather had to import it from the Soviet Union!

On Nov 28th 1932 Reza Shah announced that he would be cancelling the British concession to APOC. The British Navy was heavily dependent on cheap Iranian oil and thus Britain refused to acquiesce. A compromise was reached in 1933 through bilateral negotiations and the British managed to extend their concession up until 1993! Iran had succeeded in getting the British to pay a higher price but it still did not control its own oil.

The American Relationship

Despite claiming a neutral stance for Iran during WWII, word had gotten out that Reza Shah was apparently sympathetic to the cause of Hitler. The argument was thus used that a pro-German Iran could become a launching pad for an attack against the Soviet Union, justifying British and Soviet entry into the country on Aug 25th 1941 for what would be a several years’ occupation. On Sept 16th Reza was forced by the British to abdicate and go into exile transferring power to his 22 year old son, Mohammad Reza Shah.

Mohammad Reza Shah was not happy with the joint occupation and sought an American military presence as a mediator to British and Soviet interests. The Shah sent a letter to President Franklin D. Roosevelt on Aug 25th 1941 asking him to:

“be good enough to interest yourself in this incident…I beg Your Excellency to take efficacious and urgent humanitarian steps to put an end to these acts of aggression.”

In response to this plea, Roosevelt sent Gen. Patrick Hurley as his special representative to Iran to help prepare what was to become the Iran Declaration, finally adopted at the Tehran Conference where Stalin, Roosevelt and Churchill would agree to guarantee the territorial integrity and national sovereignty of Iran.

The Iran Declaration was used to finally end the foreign occupation of Iran after WWII, despite some resistance, and would play a crucial role in Iran’s future fight for sovereignty. The Iran Declaration thus proved itself to be more than just words, and this would certainly never have happened if not for FDR.

As part of Hurley’s report to FDR, he wrote some biting words on the present system of British imperialism, “The imperialism of Germany, Japan, Italy, France… will, we hope, end or be radically revised by this war [WWII]. British imperialism seems to have acquired a new life. . . What appears to be a new life… is the result of the infusion, into its emaciated form, of the blood of productivity and liberty from a free nation [Iran] through Lend-Lease.”

Roosevelt sent a copy of the Hurley report to Churchill with his thoughts on the matter: “The enclosed memorandum was sent to me… I rather like his general approach to the care and education of what used to be called ‘backward countries’…the point of all this is that I do not want the United States to acquire a ‘zone of influence,’ or any other nation for that matter [in Iran].”

Churchill was less than enthusiastic on the Hurley-FDR vision. He was particularly irked by Hurley’s notion that British imperialism were in conflict with democracy.

FDR died only a few months later, and with his interment, Hurley’s plans for American support for a sovereign and democratic Iran as a model for the rest of the Middle East were relegated to the dust bins of time and forgotten by much of the world.

Following WWII, nationalistic sentiments were on the rise including in the Middle East, the most notable being Iran. However, following the death of FDR the British were free to disingenuously respond to Iran’s request for better economic conditions by offering what was called the “Supplemental Agreement”, in May 1949. This entailed a better payment in royalties but still denied Iran any oversight over accounts or any other form of control over Iranian oil.

Enter Mosaddegh

In the late 1940s, a new political force emerged in Iran called the National Front led by Mohammad Mosaddegh. Their campaign was centered on the demand to nationalize the AIOC and the people of Iran were in accord, electing Mosaddegh into the Majlis (parliament) in 1949.

Mosaddegh lost no time, and quickly became the head of the Majlis Oil Committee which was tasked to study the British “Supplemental Agreement”. When it came time to put it to a vote on Nov 25th 1950, the committee delivered a resounding “no” to the British proposition.

Less than four months later, the Majlis voted on March 15th 1951 for nationalization of the AIOC, and it was renamed as the National Iranian Oil Company (NIOC). Less than two months later, Mosaddegh became Prime Minister of Iran on April 28th 1951.

The British were left empty handed.

Twice the British tried to argue their case before the international community, once in May 1951 at The Hague and again in October at the UN Security Council. Both attempts were to lose to Mosaddegh’s defense. Mosaddegh had earned a Ph.D. in law from the Neuchatel Law School in Switzerland in 1914.

This was anything but a formal victory. It was to set a precedent in the international community that a country’s right to national sovereignty would be favored over Britain’s imperial “claims”, which were exposed during these two very public trials as amounting to nothing more than the threats and bribes of pirates.

At the UN Security Council, Mosaddegh responded to Britain’s imperial ambitions over Iran with these eloquent words:

“My countrymen lack the bare necessities of existence…Our greatest natural asset is oil. This should be the source of work and food for the population of Iran. Its exploitation should properly be our national industry, and the revenue from it should go to improve our conditions of life. As now organized, however, the petroleum industry has contributed practically nothing to the well-being of the people or to the technical progress or industrial development of my country…if we are to tolerate a situation in which the Iranian plays the part of a mere manual worker in the oil fields…and if foreign exploiters continue to appropriate practically all of the income, then our people will remain forever in a state of poverty and misery. These are the reasons that have prompted the Iranian parliament… to vote unanimously in favor of nationalizing the oil industry.”

A British coup

The British were fuming over Mosaddegh’s high profile humiliation of the British Empire’s claim to Iran’s oil. Mosaddegh would have to be deposed, however, this could not look like a British retaliation.

During Averell Harrimann’s visit to Tehran in July 1951, in an attempt to salvage the broken British-Iranian relationship, Mosaddegh is reported to have said,

“You do not know how crafty they are. You do not know how evil they are. You do not know how they sully everything they touch.”

As coup rumours circulated and reports were rife of British contact being sought with Iranian military officers, Mosaddegh severed diplomatic relations with the UK on Oct 16th 1952. The British were further humiliated and had to leave the country taking their agents with them.

It was at this point that Churchill “invited” his lap dog, de facto president Truman, to participate in his vision for regime change in Iran. In November 1952, NSC 136 and 136/I were written into record, Truman had agreed to promote direct intervention in Iran through covert operations and even military force. A detailed plan was approved on Jan 8th 1953 which was 12 days before Eisenhower was inaugurated.

The management of this covert operation was under the treasonous Dulles brothers, who would use the very same technique when JFK first entered office in setting him up with the Bay of Pigs fiasco, however, JFK managed to publicly expose Allan Dulles in this scheme and fired him. Dulles had been the Director of the CIA for 8 years up until that point, and was Deputy Director of the CIA for two years prior. Refer to my paper on this for further details.

A preliminary meeting in Washington saw representatives of the Near East and Africa Division (NEA) with British Intelligence. The key personalities were Christopher Montague Woodhouse who had been station chief for British Intelligence in Tehran and on the American side Kermit Roosevelt (son of Teddy Roosevelt) acting as NEA Division Chief. It was the British who would propose a joint political action to remove Prime Minister Mosaddegh according to CIA documents, which were in part leaked by the New York Times on April 16th 2000. The final plan was codenamed TPAJAX.

Appendix B, aka “London Draft of the TPAJAX Operational Plan” was black propaganda aimed at hammering out these themes 1) Mosaddegh favors the Tudeh Party and the USSR 2) Mosaddegh is an enemy of Islam since he associates with Tudeh.

The aim of such tactics was to drive a wedge between Mosaddegh and his National Front on the one side and his clerical allies, especially Kashani on the other. Demonstrations against Mosaddegh in the streets were to provide the pretext for bought MPs to hold a vote against him, if he refused to step down the plan was to have Fazlollah Zahedi, leader of the opposition, to arrest him. Zahedi, as laid out in Appendix B was selected by the British to replace Mosaddegh as Prime Minister after the coup.

Chief of Staff Gen. Taghi Riahi found out about the coup plans and alerted Mosaddegh in time. When the chief of the Imperial Guards, Col. Nasiri went to Mosaddegh’s house the evening before the planned coup day (Aug 16th) to arrest him, Nasiri himself was taken as prisoner by the pro- Mosaddegh military. Zahedi managed to flee.

The coup attempt had failed and the word spread fast, crowds flooded the streets supporting Mosaddegh and denouncing the Shah. The Shah left the country quickly.

The CIA informed of the fiasco alerted Kermit Roosevelt that he should leave Iran immediately. But Kermit believed the coup could still work and would make a second attempt three days later. British Intelligence and CIA orchestrated demonstrations set to the streets on Aug 19th. The royal decrees signed by the Shah for the deposal of Mosaddegh to be replaced by Zahedi were made public in the press that very day with the radio news announcing: that Zahedi was Prime Minister, that Mosaddegh had been ousted and that the Shah would return soon.

Military units were dispatched to Mosaddegh’s home. As his house was being destroyed by gunfire and tanks, Mosaddegh managed to escape. It is said he later turned himself in to the authorities.

After a ten-week period in a military prison, Mosaddegh was tried on charges of treason, because he had allegedly mobilized for a rebellion and had contradicted the Shah. In fact, the accused treason was a nationalistic response to a foreign led coup.

Mosaddegh was promptly found guilty and sentenced to death, later lessened to three years in prison, followed by house arrest.

Mosaddegh’s response to the kangaroo court proceedings was,

“My only crime is that I nationalized the oil industry and removed from this land the network of colonialism and the political and economic influence of the greatest empire [the British Empire] on Earth.”

Members of his government were also arrested, as were the leading military who remained loyal to him. Six hundred of the 6, 000 of these men were executed.

Even after Mosaddegh had passed away, on March 5th, 1967, his enemies were fearful of his influence. Mosaddegh had requested that upon his death, he be buried in the public graveyard beside the victims of the political violence that occurred on the 21st July 1952 from British-backed Ahmad Qavam who ordered soldiers to shoot at Mosaddegh nationalists during a demonstration, resulting in a blood bath. Not wanting his grave to become the site of political manifestations, a public funeral for Mosaddegh was denied and his body was quietly buried underneath the floorboards of a room in his house.

RIPPLE EFFECTS: GREECE AND TURKEY OPEN NEW NORTHERN FRONT ON LIBYAN CONFLICT

Source

 25.07.2020 

Ripple Effects: Greece And Turkey Open New Northern Front On Libyan Conflict

Greece’s navy has declared a state of heightened alert and deployed ships to the Aegean Sea in response to a Turkish vessel conducting seismic surveys for energy exploration purposes close to a disputed maritime area.

On Tuesday the Greek foreign ministry issued a formal protest to Turkey following the announcement that a Turkish drilling ship would conduct explorations in the maritime area south of the Greek island of Kastellorizo in the south eastern Aegean. The foreign ministry also released a statement:

We call on Turkey to immediately cease its illegal activities, which violate our sovereign rights and undermine peace and security in the region.”

Following Turkey’s rejection of the protest, the Greek Navy has sent ships to patrol in the area.

“Navy units have been deployed since yesterday in the south and southeastern Aegean,” a navy source told AFP, declining to give further details.

Athens has stated that Turkish surveys in sections of the Greek continental shelf constitute an escalation of the tension in the region where the two countries dispute the boundary of their respective maritime areas. LINK

Experts cited in media reports have interpreted Turkey’s conduct as designed to test Greece’s determination to defend its interests in the eastern Mediterranean region, and believe that the Turkish leadership’s moves may also be linked to the Libyan conflict. According to this interpretation of the latest developments, President Recep Tayyip Erdogan apparently seeks to “test” the reaction of his opponents. LINK

A report in Xinhua suggests that Greece’s response is to draw even closer to Egypt. Greece and Egypt have been holding negotiations over the demarcation of an exclusive economic zone in the eastern Mediterranean, however the boundaries of the area they are discussing overlaps with the area which was subject to a maritime agreement signed by Turkey and the Tripoli-based Government of National Accord in Libya late last year (the two parties also signed a military agreement pursuant to which Turkey has sent thousands of fighters and a large amount of weapons and supplies to the Government of National Accord).

Ripple Effects: Greece And Turkey Open New Northern Front On Libyan Conflict

Egyptian President Abdel-Fattah al-Sisi received a phone call from Greek Prime Minister Kyriakos Mitsotakis on Thursday, during which they discussed regional issues, with a focus on the Libyan crisis.

According to the Xinhua report, Sisi expressed Egypt’s opposition to “illegitimate foreign intervention” in Libyan domestic affairs, citing that they would further exacerbate the security conditions in Libya in a way that affects the stability of the entire region, said Egyptian presidential spokesman Bassam Rady in a statement.

For his part, the Greek prime minister also voiced rejection of foreign interference in Libya, while highlighting the political course as a key solution for the Libyan issue.

He hailed Egypt’s “sincere efforts” that seek a peaceful settlement to the Libyan crisis, according to the statement.

Over the past few years, the Egyptian-Greek ties have been growing closer, with their growing enmity with Turkey also resulting in them developing a similar position on Libya. The talks between Sisi and Mitsotakis took place just a few days after the Egyptian parliament approved a possible troop deployment in Libya to defend Egypt’s western borders with the war-torn country. LINK

A perceptive analysis of the emerging Turkey-Libya (Tripoli) relations published last month remains just as salient to describe the situation today:

Turkish President Recep Tayyip Erdogan gambled big in Libya and won big – so far. This victory portends important changes in the politics of the Mediterranean, for Turkey has succeeded not only in demonstrating its determination to become the dominant player in the Eastern Mediterranean, but also in showcasing its military prowess and wherewithal. The latter might precipitate a deeper conflict and crisis in the region, extending north toward Greece.

Erdogan threw his support behind the UN-recognized Government of National Accord (GNA) against General Khalifa Haftar’s Libyan National Army (LNA), which had besieged the GNA’s capital, Tripoli. Haftar suffered a humiliating defeat as Turkish drones, troops, navy vessels and some 10,000 Syrian fighters transported by Ankara to Libya stopped him in his tracks and then forced him to abandon bases and territory. A last-minute call for a ceasefire by Egyptian President Abdel Fattah El-Sisi was rejected by the victorious GNA, which has set its aims at capturing other towns, including the critical port city of Sirte.

Indirectly, this was also a defeat for the countries that had backed Haftar: Egypt, the UAE and Russia. The UAE had contributed military equipment and the Russians non-state mercenary forces.

Turkey’s Libya expedition has to be seen from two perspectives. First, the GNA concluded a deal with Ankara that delineated their respective Exclusive Economic Zones (EEZ) in such a way that it divides the Mediterranean Sea into two sections. Turkey’s purpose is to hinder efforts by Egypt, Cyprus, Israel and Greece to export natural gas, either through a pipeline or on LNG vessels, to Europe. Turkey has aggressively interfered with efforts by these to drill for gas. Ankara claims that most of the waters around Cyprus actually belong to Turkey or to the Turkish Republic of Northern Cyprus, a country recognized only by Turkey.

However, more important than simply preventing Eastern Mediterranean gas exports is the underlying strategy driving this push against Haftar. From the moment he assumed power in 2003, Erdogan has striven to elevate Turkey’s international role to that of a regional, if not global, power. Initially, his strategy was one of “zero problems with neighbors,” which served to emphasize Turkey’s soft power. The primary driver, however, was the desire for Turkey to assume a hegemonic position over the Middle East. This policy foundered and was essentially buried by the Arab Spring.

What has replaced it is a more aggressive and militarized posture that takes the fight to perceived enemies. That could mean anyone and everyone, since Turks tend to see most countries as a threat, even if they are allies. LINK

While Turkey has bet big and won big so far, it appears that the period of relatively easy victories is over and its aggressive moves are going to face more resistance in future. As Turkey continues to shows no sign of moderating its expansionist claims and manoeuvres, the region is now moving irrevocably towards a catastrophic military clash as Turkey and Egypt have drawn incompatible ‘red lines’ in Libya, with the coastal town of Sirte likely to be the detonator (or possibly the Jufra airbase to the south).

An international agreement promoted by the UN in 2014-2015 established an executive body and a legislative body to govern Libya and pave the way for a more permanent arrangement. However, fundamental disagreements between the two quasi-State organizations resulted in a complete split, with the executive arm becoming the ‘UN-backed’ Government of National Accord based in Tripoli and the House of Representatives relocating to Tobruk (thus the legislative arm is also ‘UN-backed’, though this detail is usually omitted from mainstream media reports).

Turkey has allied itself with the Government of National Accord (GNA), Egypt has allied itself with the House of Representatives (and its armed forces, the Libyan National Army – the LNA – headed by Khalifa Haftar). More generally, Egypt, the United Arab Emirates and Russia are invariably reported as supporting the LNA, while the GNA is mainly backed by Turkey and Qatar.

Following the drastic changes on the battlefield over the last two months as the GNA swept the LNA from its positions around Tripoli following a failed attempt to capture the Libyan capital, both Turkey and Egypt have committed themselves to positions that are in direct conflict, indicating that a major armed clash is inevitable unless there is a major diplomatic breakthrough or one of the two sides accepts a humiliating backdown.

Specifically, Turkey and the Government of National Accord are demanding that the Libyan National Army (which recently gave Egypt permission to send its armed forces into Libya) withdraw from the two areas (Sirte and Jufra) and have expressed their determination to take the areas by force if necessary. The Libyan National Army and Egypt have stated that any attempt to capture the two areas will result in Egypt entering Libya in force, which would result in a direct confrontation between Turkey and Egypt. While Egypt has the advantage of sharing a long land border with Libya, in the event of a major conflict air and maritime power could be decisive.

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Time is Not on Our Side in Libya

Photograph Source: Abdul-Jawad Elhusuni – CC BY-SA 3.0

by VIJAY PRASHAD

JULY 22, 2020

Ahmed, who lives in Tripoli, Libya, texts me that the city is quieter than before. The army of General Khalifa Haftar—who controls large parts of eastern Libya—has withdrawn from the southern part of the capital and is now holding fast in the city of Sirte and at the airbase of Jufra. Most of Libya’s population lives along the coastline of the Mediterranean Sea, which is where the cities of Tripoli, Sirte, Benghazi, and Tobruk are located.

Haftar, who was once an intimate of the United States’ Central Intelligence Agency (CIA), is now prosecuting a seemingly endless and brutal war against the United Nation’s recognized Government of National Accord (GNA) based in Tripoli and led by President Fayez al-Sarraj. To make matters more confusing, Haftar takes his legitimacy from another government, which is based in Tobruk, and is formed out of the House of Representatives (HOR).

Ahmed says that the quiet is deceitful. Militias continue to patrol the streets along the Salah al-Din Road near where he lives; the rattle of gunfire is anticipated.

On July 8, United Nations Secretary-General António Guterres made a statement that could have been delivered at any point over the last decade. “Time is not on our side in Libya,” he announced. He laid out a range of problems facing the country, including the military conflict, the political stalemate between the GNA and the HOR, the numbers of internally-displaced people (400,000 out of 7 million), the continued attempts of migrants to cross the Mediterranean Sea, the threat from COVID-19, and the “unprecedented levels” of “foreign interference.”

The UN Human Rights Council passed a resolution to send a Fact-Finding Mission to Libya to investigate human rights violations in this war, including the mass graves found in Tarhouna. The credibility of the Council is in doubt. An earlier Commission of Inquiry on Libya set up in 2012 to study war crimes in 2011-2012 was shut down largely because the North Atlantic Treaty Organization (NATO) refused to cooperate with the investigation. A second inquiry, set up in March 2015, closed its work in January 2016 with the political deal that created the Government of National Accord.

Guterres did not mention the NATO war in 2011. I am told that he wants to appoint a joint Special Representative with the African Union and he would like a full review of the UN mission. All that is well and good; but it is short of what is necessary: an honest look at the NATO war that broke the country, fomenting a conflict that seems without end.

Foreign Interference

Statements about Libya drip with evasion. These terms—“foreign interference” and “foreign-backed efforts”—are dropped into conversations and official statements without any clarification. But everyone knows what is going on.

I ask Rida, who lives in Benghazi (now under the control of General Haftar), what she makes of these phrases. “We all know what is going on,” she tells me via text. “The government in Tripoli is backed by Turkey and others; while Haftar is backed by Egypt and others,” she writes.

At the core, she says, this is a dispute between two regional powers (Turkey and Egypt) as well as a contest between the Muslim Brotherhood (Turkey) and its adversaries (Egypt and the United Arab Emirates). Wrapped up in all this are contracts for offshore drilling in the eastern Mediterranean Sea, which additionally involved Cyprus and Greece.

It is not enough that this is a regional conflict. There is accumulating evidence that General Haftar is being supported by armed mercenaries (from Russia and Sudan) and by arms shipments from France, while the United States seems to have hedged its bets with support to both sides in the conflict.

Last year, General Haftar’s forces moved swiftly toward Tripoli, but were eventually rebuffed by the intervention of Turkey (which provided the Tripoli government with military aid as well as Syrian and Turkish mercenaries).

In late December, Turkey formally signed a military and security agreement with the Tripoli-based GNA, which enabled Turkey to transfer military hardware. This agreement broke the terms of the UN resolution 2292 (2016), recently reaffirmed in UN resolution 2526 (2020). Egypt and the United Arab Emirates have openly been supplying Haftar.

Now, the forces of the Tripoli government have moved to the central coastline city of Sirte, which has emerged as the key hotspot in this contest.

The Tobruk government, which backs General Haftar, and a pro-Haftar tribes council urged Egypt’s General Abdul Fatah El Sisi to intervene with the full force of the Egyptian armed forces if Sirte falls to the Turkish-backed government. Egypt’s military drill—called Hasm 2020—came alongside the Turkish navy’s announcement of maneuvers off the Libyan coast—called Navtex.

This is a most dangerous situation, a war of words escalating between Turkey and Egypt; Egypt has now moved military hardware to its border with Libya.

Oil

Of course, oil is a major part of the equation. Libya has at least 46 billion barrels of sweet crude oil; this oil is highly valued for Europe because of the low costs to extract and transport it. Countries like the UAE, which are pushing the embargo of Libyan oil, benefit from the withdrawal of Libya, Iranian, and Venezuelan oil from already suppressed world oil markets. Libya’s National Oil Corporation (NOC) has stopped oil exports since January; from about 1.10 million barrels per day, Libyan oil production fell to nearly 70,000 barrels per day.

Neither Haftar nor the Government of National Accord in Tripoli can agree on the export of oil from the country. Oil has not left the country for the better part of the past six months, with a loss—according to the NOC—of about US$6.74 billion. General Haftar controls major oil ports in the east, including Es Sider, and several key oil fields, including Sharara.

Neither side wants the other to profit from oil sales. The United Nations has intervened to try and resolve the differences, but so far there has been limited progress. The entire conflict rests on the belief that either side has that it could win a military victory and therefore take the entire spoils; no one is willing to compromise, since any such agreement would mean a de jure partition of the country into its eastern and western halves with the oil crescent divided between the two.

Demilitarized Zone

UN Secretary-General Guterres has surrendered to reality. In his recent statement on Libya, he listed a series of “de-escalation efforts, including the creation of a possible demilitarized zone”; this “demilitarization zone” would likely be drawn somewhere near Sirte. It would effectively divide Libya into two parts.

Neither Ahmed nor Rida would like their country to be partitioned, its oil then siphoned off to Europe, and its wealth stolen by oligarchs on either side. They had misgivings about Muammar Qaddafi’s government in early 2011; but now both regret the war that has ripped their country to shreds.Join the debate on FacebookMore articles by:VIJAY PRASHAD

Vijay Prashad’s most recent book is No Free Left: The Futures of Indian Communism (New Delhi: LeftWord Books, 2015).

أفول عصر البترودولار… وتأثيره على دور مملكة آل سعود

حسن حردان

انها ساعة الحقيقة التي لم يتوقع حكام آل سعود مواجهتها.. وهي وقوع مملكتهم في العجز الكبير، واللجوء إلى الاستدانة لتأمين نفقاتهم الأساسية، بعد أن انهارت أسعار النفط على نحو كبير، والمتزامن مع الجمود الاقتصادي وتوقف موسمي الحج والعمرة هذا العام بسبب انتشار فايروس كورونا، وهو طبعاً ما يفقد الرياض مصادر دخلها الأساسية، دفعة واحدة، والتي كانت توفر لها قدرة الاستمرار في الإنفاق على…

أولاً، حياة البذخ والترف التي يعيش فيها أمراء العائلة الحاكمة، التي تعتبر الثروة النفطية في الجزيرة العربية ملكاً لها، ولهذا تحوز على نسبة من عائدات بيع النفط تؤمّن لها العيش برفاهية وترف…

ثانياً، شراء السلاح من الولايات المتحدة الأميركية والدول الغربية، والتي قدّرت حتى الآن بمئات مليارات الدولارات، وقد شهدت في السنوات الأخيرة ازدهاراً غير مسبوق أدّى إلى إنعاش معامل صناعة السلاح في الدول الغربية، وحلّ جزء من أزماتها الاقتصادية والاجتماعية النابعة من تراجع معدلات النمو فيها وتزايد نسب البطالة.. وهو ما تجسّد أيضاً في حصول ترامب من ولي العهد السعودي على أكثر من 500 مليار دولار، في أكبر عملية استيلاء على فائض عائدات النفط، تحت عنوان استثمارات في الولايات المتحدة.. الأمر الذي تباهى به ترامب في مواجهة معارضيه في الداخل…

ثالثاً، تمويل كلفة الحرب الوحشية المدمّرة التي تشنها الحكومة السعودية على اليمن منذ اكثر من خمس سنوات، وتجاوزت مئات المليارات من الدولارات.. ويرى الخبراء الاقتصاديين انّ الكلفة، التي لا تزال غير محدّدة، ستكون آثارها كبيرة على الاقتصاد والمجتمع في المملكة، وهي تتجاوز كلفة الغزو والاحتلال الأميركي للعراق، لأنّ الحرب ضدّ اليمن لم تتوقف منذ اليوم الأول لبدئها وحتى اليوم، وهي لا تزال مستمرة، لأنّ الرياض فشلت في السيطرة على اليمن والقضاء على مقاومة الشعب العربي اليمني، التي نجحت في نقل الحرب الي العمق السعودي وزيادة استنزاف المملكة.. عبر ضرب المنشآت الحيوية لشركة أرامكو..

رابعاً، دعم الأنظمة العربية والاسلامية لقاء الحصول على تأييد هذه الدول لمواقف وسياسات المملكة في الجامعة العربية ومنظمة التعاون الإسلامي واستطراداً شراء صمت هذه الدول إزاء المجازر الوحشية التي ارتكبتها الحكومة السعودية، ولا تزال، في اليمن…

خامساً، تمويل الجماعات الإرهابية والجمعيات والمعاهد الدينية في العالم، التي تتبع المنهج الوهابي التكفيري، وكذلك تمويل حروب هذه المنظمات الإرهابية في سورية والعراق وليبيا واليمن إلخ… بما يخدم السياسات والمخططات الاستعمارية الأميركية الغربية الصهيونية من القضاء على محور وقوى المقاومة والتحرّر، وإعادة صياغة خارطة المنطقة بما يكرّس السيطرة والهيمنة الاستعمارية عليها، ويمكن كيان العدو الصهيوني الاستعماري الاستيطاني من تحقيق هدفه في تصفية قضية فلسطين وإعلان الدولة اليهودية العنصرية وانتزاع الاعتراف بها عربياً وإسلامياً ودولياً..

سادساً، تمويل مشاريع التآمر ضدّ الأنظمة التقدمية المعادية للاستعمار الغربي والاحتلال الصهيوني، بدءا بالتآمر ضدّ النظام الناصري التحرري بقيادة الرئيس الراحل جمال عبد الناصر، ومروراً بدعم الحرب ضدّ الثورة الإسلامية التحررية في إيران، وانتهاء بتمويل الحرب الإرهابية لتدمير سورية وإسقاط رئيسها المقاوم بشار الأسد…

سابعاً، دعم جماعات وعصابات المرتزقة الذين تجنّدهم الاستخبارات الأميركية لتقويض استقرار الأنظمة التحررية في أميركا اللاتينية وأفريقيا..وتجنيد وتمويل ما اسمي لاحقاً تنظيم القاعدة لقتال الجيش السوفياتي في أفغانستان وإسقاط حلفه نظام نجيب الله لمصلحة الولايات المتحدة في سياق الحرب الباردة مما سرع في انهيار وتفكك الاتحاد السوفياتي وخروج أميركا منتصرة في هذه الحرب..

ثامناً، شراء وسائل إعلامية والإنفاق على وسائل إعلامية أخرى، إلى جانب شراء ضمائر كتاب وصحافيين بغرض الترويج للسياسات الاستعمارية الصهيونية الرجعية وغسل عقل المواطن العربي وجعله يرضخ ويستسلم للأمر الواقع الأميركي الغربي الصهيوني..

تاسعاً، دعم أحزاب وقوى سياسية عربية وإسلامية في العديد من الدول العربية، لا سيما في لبنان، لأجل تعزيز دور المملكة في داخل هذه الدول والتأثير على قراراتها وسياساتها ومنع تحررها من فلك الهيمنة الأميركية الغربية الرجعية..

انّ هذا الإنفاق الضخم على كلّ هذه المجالات هو الذي مكن المملكة السعودية من لعب دور عربي وإقليمي كبير والتأثير في مجرى سياسات الوطن العربي والعالم الإسلامي خدمة للسياسات الأميركية، ولهذا أسميت مرحلة الفورة النفطية وتعاظم عائدات النفط بمرحلة البترودولار التي ازدهر فيها دور المملكة وجعلها تحوز على دور سياسي عربي واقليمي وحتى دولي.. ومن الطبيعي ان يقود انتهاء عصر البترودولار إلى إضعاف دور المملكة المذكور، والى تراجع تأثيرها في سياسات العديد من الدول.. وان يؤدّي ذلك لأن تفقد قوى سياسية ووسائل إعلامية مصدر تمويلها، وبالتالي تخسر جزءاً كبيراً من تأثيرها.. وهو ما بدأت تظهر مؤشراته في لبنان، وينعكس على مواقف وحسابات بعض القوى السياسية في قوى ١٤ آذار، من حكومة الرئيس حسان دياب والعهد.. ولا شك في انه، عاجلاً ام آجلاً، سوف يكون لهذا التراجع الكبير في القدرات المالية للمملكة تأثيره على مسار الحرب في اليمن، قد يدفع الحكومة السعودية مكرهة إلى قبول وقف الحرب ورفع الحصار عن اليمن وسلوك طريق الحل السياسي.. فالمملكة اليوم لم تعد قادرة على تأمين نفقاتها الأساسية الداخلية وهي مضطرة إلى الاستدانة لتأمين العجز الكبير في موازنتها، فكيف تستطيع والحال هذه الاستمرار في تحمّل كلفة إنفاق باهظة على الحرب في اليمن.. كما أنّ الدول الغربية سوف تتضرّر من تراجع القدرات المالية للمملكة بنفس القدر الذي كانت فيه المملكة تخدم مصالح الغرب وسياساته في المنطقة التي ترتكز على نهب ثروات العرب وامتصاص عائدات النفط ودعم وحماية الكيان الصهيوني باعتباره القاعدة المتقدّمة للغرب في قلب المنطقة.. انطلاقاً مما تقدم فإنّ ضعف القدرات المالية للحكومة السعودية إنما يصبّ في مصلحة جبهة المقاومة وقوى التحرر في الوطن العربي والدول الإسلامية والعالم..

The 2020 Oil Crash’s Unlikely Winner: Saudi Arabia

Source
 2020-05-06

It’s a year of carnage for oil nations. But at least one will emerge from the pandemic both economically and geopolitically stronger. 

With 4 billion people around the world under lockdown as the coronavirus pandemic grows, demand for gasoline, jet fuel, and other petroleum products is in freefall, as are oil prices. The price of a barrel of crude has been so low in the United States that sellers recently had to pay people to take it off their hands. As a result, oil-dependent economies are reeling. In the United States, the largest oil producer in the world, the number of rigs drilling for oil has plummeted 50 percent in just two months, almost 40 percent of oil and gas producers could be insolvent within the year, and 220,000 oil workers are projected to lose their jobs. Around the world, petrostates from Nigeria to Iraq to Kazakhstan are struggling and their currencies tanking. Some, like Venezuela, face an economic and social abyss.

While 2020 will be remembered as a year of carnage for oil nations, however, at least one will most likely emerge from the pandemic stronger, both economically and geopolitically: Saudi Arabia.

First, Saudi Arabia is proving that its finances can weather a storm such as this.
 

 Low oil prices are, of course, painful for a country that needs around $80 per barrel to balance its public budget, which is why Moody’s cut Saudi Arabia’s financial outlook last Friday. Saudi Arabia ran a $9 billion deficit in the first quarter of 2020. Like other nations, the kingdom has also seen tax revenues fall as it imposes economic restrictions to halt the pandemic’s spread. Last week, the Saudi finance minister said that government spending would need to be “cut deeply” and some parts of the kingdom’s Vision 2030 economic diversification plan would be delayed.
 

Yet unlike most other oil producers, Saudi Arabia has not only plump fiscal reserves but also the demonstrated capacity to borrow. On April 22, the finance minister announced the kingdom could borrow as much as $58 billion in 2020. Compared to most other economies, it has a relatively low debt-to-GDP ratio: 24 percent as of the end of 2019, although lately that figure has been rising. The finance minister also said Saudi Arabia would draw down up to $32 billion from its fiscal reserves. With $474 billion held by the central bank in foreign exchange reserves, Saudi Arabia remains comfortably above the level of around $300 billion, which many consider the minimum to defend its currency, the riyal, which is pegged to the dollar.
 

Second, Saudi Arabia will end up with higher oil revenues and a bigger share of the oil market once the market stabilizes, thanks to production cuts and shutdowns forced by the global economic collapse. The current oil bust lays the groundwork for a price boom in the years ahead—and burgeoning revenues for Saudi Arabia. While the outlook for future oil demand is highly uncertain, once you look beyond the immediate crisis, demand is likely to grow faster than supply.
 

The U.S. Energy Information Administration projects world oil demand to return to its pre-pandemic levels by the end of 2020. The International Energy Agency is almost as optimistic, projecting demand to be only 2 to 3 percent below its 2019 average of 100 million barrels per day by the end of the year. If measures to contain the pathogen last longer than expected or there is a second wave of the virus, the recovery will take longer, but most scenarios still expect demand to eventually recover.
 

Lifestyle changes could lower future oil demand, but the data suggests one should be skeptical of predictions of permanent shifts. In China, for example, car travel and shipping by truck is already nearly back to last year’s level, although air travel—which together with air freight accounts for 8 percent of world oil demand—remains down sharply. Oil demand could actually get a boost if more people decide private cars make them feel safer than crowded mass transit. Expectations that oil demand would be throttled by climate policy will likely be disappointed. The economic distress imposed by the pandemic risks undermining environmental policy ambition, as does the current shift to isolationism and away from the kind of global cooperation required for effective climate policy.
 

Oil supply, by contrast, will take longer to return as shut-in production is lost, investment in new supply is scrapped, and the U.S. shale revolution slows. With the oil glut pushing global oil storage to the limits—land-based storage will be full as soon as this month—an unprecedented number of producing oil wells will need to be shut off. Doing so risks damaging the reservoirs. Some of that supply will never come back, and some will take substantial time and investment to bring back online. Energy Aspects, an oil consultancy, projects 4 million barrels per day of supply could be at risk of semipermanent damage.
 

Major oil companies such as Chevron and Exxon Mobil have also slashed their capital expenditures in response to the price collapse. Even without any growth in oil demand, around 6 million barrels per day of new oil supply must be brought online each year just to offset natural production declines. Moreover, oil is already out of favor with investors concerned with the industry’s poor returns and rising political and social pressures.
 

U.S. shale oil, in particular, will take years to return to its pre-coronavirus levels. Depending on how long oil demand remains depressed, U.S. oil production is projected to decline by 30 percent from its pre-coronavirus peak of around 13 million barrels per day. To be sure, recovering oil prices will raise U.S. production again. Shale oil production remains economical, especially for the better-capitalized companies that will emerge once the assets of bankrupt companies change hands and the industry is consolidated.
 

Yet shale’s heady growth in recent years (with production growing by about 1 million to 1.5 million barrels per day each year) also reflected irrational exuberance in financial markets: Many U.S. companies struggling with uneconomical production only managed to stay afloat with infusions of cheap debt. One-quarter of U.S. shale oil production may have been uneconomical even before prices crashed, according to Citigroup’s Ed Morse. Without that froth, shale will grow more slowly, if at all. Former Goldman Sachs analyst Arjun Murti estimates that even with U.S. oil prices recovering to around $50 per barrel, annual U.S. output growth will be somewhere between zero and 500,000 barrels per day, a shadow of its former self.

Even if the United States, Saudi Arabia, and Russia make a historic show of cooperation, any respite for the oil industry will be short-lived.
 

The oil price collapse has sent shockwaves through financial markets. But the geopolitical earthquake could reach even farther.
 

Indeed, as COVID-19 sets the stage for tighter oil markets and higher prices, Saudi Arabia, along with a few other Gulf states and Russia, will not only benefit from higher prices but actually find opportunities to grow market share and sell more oil. Even now, with prices severely depressed, Saudi Arabia and Kuwait are discussing bringing more oil to market from a jointly held field straddling their border. More economically vulnerable OPEC members may find it harder to invest in restarting and maintaining (let alone increasing) supply and will thus see output growth slow. This is exactly what happened in Iran, Iraq, Nigeria, and Venezuela following the 1998-1999 oil crash.
 

Finally, by shoring up its fraying alliance with the United States and reestablishing itself as the global oil market’s swing producer, Saudi Arabia has strengthened its geopolitical position. As the major producers and consumers scrambled to prevent the oversupply of oil from overwhelming the world’s storage facilities, they finally turned to Saudi Arabia to lead OPEC and other key producers in a historic production cut. For all the talk of oil production quotas in Texas or creating a new global oil cartel through the G-20, calling Riyadh was the only real option available to policymakers at the end of the day—as it has long been. That is because Saudi Arabia has long been the only country willing to hold, at significant cost, a meaningful amount of spare production capacity that allows it to add or subtract supply to or from the market quickly. This singular position—which it just made plain once again to the world—gives the kingdom not only power over the global oil market but also significant geopolitical influence. In a global market, that will remain true until nations use much less oil, which continues to be an important goal of climate policy.
 

By leading the effort to craft an OPEC+ production cut, Saudi Arabia also reminded Moscow that Russia cannot go it alone, as it attempted to do when it walked out of OPEC+ negotiations in March and set off the price war. Moscow is more dependent on Riyadh in managing the oil market than vice versa, strengthening Saudi Arabia’s hand in their relationship—with likely repercussions in the Middle East, where Moscow has a growing military presence and cultivates allies including Syria and the Saudis’ archenemy, Iran.
 

Additionally, Saudi Arabia has improved its standing in Washington. Following intense pressure from the White House and powerful senators, Saudi Arabia’s willingness to oblige by cutting production will reverse some of the damage done when Saudi Arabia was blamed for the oil crash after it surged production in March. Saudi Arabia may also have undermined U.S. lawmakers’ plans for anti-OPEC legislation—it’s difficult to argue OPEC is a harmful cartel when both ends of Pennsylvania Avenue just begged it to act like one. U.S. vitriol will flare up again in the coming weeks, when a flotilla of Saudi tankers sent off during the price war two months ago will dump triple the normal level of deliveries onto an already saturated U.S. market. But this only means that U.S. politicians will once again have to beseech Riyadh to extend or deepen supply cuts at the next OPEC+ meeting in June.
 

Only a few weeks ago, the outlook for Saudi Arabia seemed bleak. But looking out a few years, it’s difficult to see the kingdom in anything other than a strengthened position. COVID-19 may end up doing what Saudi leaders failed to do once before, when they let oil prices crash in late 2014 in a misguided attempt to debilitate U.S. shale. Beyond the immediate crisis, the pandemic will end up bolstering Saudi Arabia’s geopolitical position, reinforcing its pivotal role in oil markets, and sowing the seeds for higher market share and oil revenues in the years ahead.

Source: U-feed

Trump: Live by the Oil, Die by the Oil

Source

Trump: Live by the Oil, Die by the Oil

Tom LuongoApril 23, 2020

From the very beginning I’ve been a staunch critic of President Trump’s “Energy Dominance” policy. And I was so for a myriad of reasons, but mostly because it was stupid.

Not just stupid, monumentally stupid. Breathtakingly stupid.

And I don’t say this as someone who hates Trump without reservation. In fact, I continue to hope he will wake up one day and stop being the Donald Trump I know and be the Donald Trump he needs to be.

I don’t have Trump Derangement Syndrome of any sort. Neither MAGApede nor Q-Tard, an Orange Man Bad cultist or NPC Soy Boy, I see Trump for what he is – a well-intentioned, if miseducated man with severe personal deficiencies which manifest themselves in occasionally brilliant but mostly disastrous behavior.

Energy Dominance was always a misguided and Quixotic endeavor. Why? Because Trump could never turn financial engineering a shale boom into a sustainable advantage over lower-cost producers like Russia and the OPEC nations.

The policy of blasting open the U.S. oil spigots to produce a production boom built on an endless supply of near-zero cost credit was always going to run into a wall of oversupply and not enough demand.

The dramatic collapse of U.S. oil prices in the futures markets which saw the May contract close on April 20th at $-40.57 per barrel is the Shale Miracle hitting the fan of low demand and leaving the producers and consumers in a state which can only happen thanks to biblical levels of government intervention.

A broken market.

The next morning, ever needing to look like the good guy, Trump tweets out:Donald J. Trump@realDonaldTrump

We will never let the great U.S. Oil & Gas Industry down. I have instructed the Secretary of Energy and Secretary of the Treasury to formulate a plan which will make funds available so that these very important companies and jobs will be secured long into the future!163KTwitter Ads info and privacy56.6K people are talking about this

It’s clear from this statement that Trump is ready to throw more trillions at the oil industry to keep it and the millions of jobs from disappearing as he does what he always does when confronted with a real problem, doubles down on the behavior that caused it in the first place.

Politicians, even the best ones, are ultimately vandals. They have no other tool than to reallocate scarce capital towards their ends rather than that demanded by the market.

And the main reason why Trump was never going to win the Energy Dominance War he started was because the world doesn’t want the type and kind of oil the U.S. produces at the quantities needed to “Win!”

Ultra-light sweet crude coming from the Bakken, Eagle Ford and Permian simply isn’t that high in demand for export. It’s of limited usage. And, in the end, if the price is right enough, offering oil for sale in ‘not-dollars’ only makes that demand curve even more elastic.

The collapse in oil prices which Trump is desperate to stop won’t simply because Trump stands there like King Canute, arms outstretched. He and his terrible energy policy stand naked now that the tide has gone out.

And the reason for this is simple. There is more to the world economy than money. Money is what makes the economy work but it, in and of itself, is incapable of creating wealth. All money does is act as a means to express our needs and desires at the moment of the trade.

Trump’s vandalizing the world’s energy markets for the past three and a half years now comes back to bite him. To prop up surging U.S. production he has:

Supported a disastrous war against the people of Yemen

Repurposed U.S. troops clinging to positions in Syria while stealing their oil

Nearly started a shooting war with Iran…. Twice.

Embargoed Venezuela, stole its money, attempted a failed coup and brought even more support to President Maduro from Russia and China.

Spent billions pointing missiles at Russia via NATO.

Supported a vicious war to prevent the secession of the Donbass.

Delayed the construction of Nordstream 2.

Sowed chaos enough to set Turkey to claiming the Eastern Mediterranean while fighting a losing war in Libya.

Started a massive trade war with China.

Spent trillions throwing the U.S. budget deficit for 2020 out beyond 20% of the U.S.’s 2019 GDP.

I could go on, but I think you get the point. None of these acts are defensible as anything other than immoral and counterproductive.

Having antagonized literally more than three-quarters of the world with this insanity, Trump will now turn his destructive gaze on the very people he purports to serve, the American people. Saving jobs through subsidies is capital destructive. It doesn’t matter who does it, Trump, Putin, Xi or FDR.

If Trump tariffs on imports it will only keep the cost of energy for Americans higher than it should be at a time when they need it to be as cheap as possible.

The incentive to improve performance by these companies, shutter expensive wells, default on debt or shift capital away from the unproductive will not happen. The healthy cleansing of bankruptcy is averted. The vultures who profited on the way up will not go bankrupt because the bust is avoided and those that were prudent waiting for this moment will not be rewarded with the reins of the means of production.

And again, we see another one-way trade for Wall St.

All Trump will do here is entrench the very powers that he thinks he’s been fighting, destroying small businesses, nationalizing, in effect, whole swaths of the U.S. economy and setting up the day when everyone else around the world shrugs when he bark.

Because the net effect has been to see the rise in more of the oil trade conducted in currencies other than the U.S. dollar. That trend will continue in a deflating price environment where the need to service dollar-denominated debt is soaking up the supply of dollars faster than the Fed can monetize the debt issued by the U.S. Treasury.

The oil trade will shift from dollars. Dollars will be used to pay off debt, the world will decouple from the dollar and all those dollars currently hoarded overseas and whose demand today will be supply tomorrow will ensure the U.S. economy suffers the worst kind of depression, one of rising commodity prices, falling asset prices and falling wages.

So, Trump will continue to be, as I put it recently, The Master of the Seen, choosing, as always, to ignore the unseen effects of propping up firms that should rightly go the way of all bad ideas, like Marxism.

The U.S. had a grenade dropped on its budget. It looks like a nuclear bomb, but that’s only because of the continued arrogance and necessity of politicians, like Trump, needing to be ‘seen’ doing something caused far more damage than it would have if they hadn’t intervened in the first place.

The adage, “never let a crisis go to waste,” is apropos here. Politicians use the cover of crisis to act. They have to be ‘seen’ acting rather than not. Trump is acutely aware of this because he truly can’t stand criticism.

A man without principles, Trump acts mostly out of his need to deflect criticism and be ‘seen’ by his base as their champion.

But no, Trump outs himself as the biggest Marxist of all time, defending the workers while robbing them of their future through the destruction of their real wealth. His policy mistakes become our real problems. And he compounded those problems by listening to the medical complex vultures about COVID-19 and now he’s trapped but everyone else will pay the price.

He is someone without the sense or the understanding that sometimes the best thing to do is admit defeat, reverse course and put down the scepter of power. But Trump doesn’t know how to do that. He doesn’t know how to actually lead.

Energy Dominance will turn into an Energy Albatross and it will weigh on Trump’s neck in his second term that will see him leave office reviled as the great destroyer of not only the U.S.’s wealth, but more importantly, its standing in the world.

«لعنة النفط» تصيب الولايات المتحدة

وليد شرارة

 الأربعاء 22 نيسان 2020

بين الأسباب الوجيهة التي تقدم عادة لتفسير «الشقاء العربي»، أي التدخلات الاستعمارية المستمرة لضرب محاولات الاستقلال والسيطرة على الموارد الوطنية الهادفة إلى إطلاق عملية تنمية حقيقية في بلدان المنطقة العربية والإسلامية، وفي الجنوب عامة، ما اصطلح على تسميته «لعنة النفط». لا يمكن الفصل بين سياسات الحرب والسيطرة الغربية، خاصة الأميركية، على المنطقة وشعوبها وتطلعاتها القومية، وبين امتلاكها مخزوناً هائلاً من هذه السلعة الاستراتيجية، بالنسبة إلى الرأسمالية الامبريالية المعاصرة، وتحولها من «نعمة» إلى «لعنة». رأت الأدبيات السياسية الأميركية السائدة والخطاب الرسمي منذ الخمسينيات الجزء النفطي من العالم العربي، أي دول الخليج والعراق، «منطقة مصالح قومية حيوية»! وبدأت تدخلاتها في الإقليم عبر مشاركة مخابراتها الحاسمة في إسقاط حكومة محمد مصدق الوطنية في إيران سنة 1953 بعد تأميم الأخيرة شركة النفط «الأنجلو-فارسية» التي أضحت اليوم شركة «بريتيش بتروليوم» المعروفة. العودة إلى هذه الوقائع ضرورية للتذكير بالطبيعة الاستعمارية لهذه السلعة «الاستراتيجية».

استندت الهيمنة الأميركية على العالم إلى ركيزتين أساسيتين: التفوق العسكري النوعي على جميع بلدانه الأخرى، وانتشار شبكة قواعد في أرجاء المعمورة، خاصة في الدول المنتجة للنفط أو في جوارها، للتحكم في الطرق والمضائق التي يتدفق من خلالها، بـ«أسعار مناسبة»، نحو المراكز الرأسمالية. بهذا المعنى، كانت الولايات المتحدة «شرطي الرأسمالية العالمية» خلال حقبة تشارف على الأفول. فالتغيرات الكبرى التي شهدتها موازين القوى الدولية، وأهمها تراجع قدرات واشنطن على السيطرة والريادة، وتخبطها خلال الجائحة الحالية آخرُ تجلياته، والصعود السريع والمستمر لـ«المنافسين غير الغربيين»، دفعت النخب الحاكمة الأميركية ودولتهم العميقة إلى اتخاذ قرار تطوير صناعة النفط الأميركية عبر الاستخراج الباهظ الكلفة للنفط الصخري. بحجة ضرورة تأمين الاكتفاء الذاتي الكامل في ميدان الطاقة، وتجنّب الاعتماد على النفط المستورد من بقاع مضطربة وخطيرة كالشرق الأوسط، وكذلك انطلاقاً من إمكانية تحول الولايات المتحدة إلى أحد أبرز المنتجين للنفط، وهي صارت أولهم سنة 2018، بررت هذه النخب قرارها الذي دخل حيز التنفيذ منذ أواسط العقد الأول من الألفية الثانية، خلال إدارة جورج بوش الابن، والتزمت به إدارتا باراك أوباما ودونالد ترامب. هذا القرار وسياقاته الجيوسياسية هما اللذان يسمحان بإدراك فعلي للخلفيات البنوية للانهيار التاريخي لأسعار النفط الأميركي، لا القراءات الاقتصادوية التي تكون غالباً ظرفية ومختزلة.
القراءة الاقتصادية الرائجة عن أسباب انهيار أسعار النفط الأميركي تربط بينه وبين تبعات جائحة كورونا على الاقتصاد العالمي، وكذلك نتائج «حرب الأسعار» بين روسيا والسعودية، والتي توقفت بعد التوصل إلى اتفاق جديد بينهما آخر الشهر الماضي. فمع تفشّي الفيروس، تراجع النشاط الاقتصادي ومعدلات الإنتاج على صعيد الكوكب بصورة كبيرة، ومعهما حركة انتقال الأشخاص داخل أو بين بلدانه، ما قاد إلى انخفاض الطلب على النفط بنسبة 30% في بضعة أسابيع، ومن ثم أسعاره. تبع هذا حرب الأسعار السعودية ــ الروسية، التي بدأت مع رفع الطرفين مستويات إنتاجهما من النفط والتنافس على تخفيض سعره إلى درجة تضخم فيها العرض في السوق العالمي على نحو غير مسبوق. تلازم هذين التطورين كان له آثار كارثية في صناعة النفط الصخري الأميركية الباهظة، التي لا تستطيع احتمال انحدار مماثل لأسعار النفط. ما زاد الأمر سوءاً لها وللصناعة النفطية الأميركية عامة هو امتلاء المخزون النفطي الاستراتيجي للبلاد بنسبة 70 إلى 80%، مع ما يترتب على ذلك من انخفاض في الطلب الداخلي.

إن تحول النفط إلى «منتج مالي» يخضع للمضاربة في البورصات، يعني في الظروف الحالية أن مضاربين اشتروا عقوداً نفطية، ولا يمتلكون قدرة على بيعها بأسعار مناسبة أو على تخزين النفط، يوافقون على بيعها بأسعار بخسة. وتقدر إدارة المعلومات عن النفط، وهي وكالة مستقلة للإحصاءات في وزارة الطاقة الأميركية، أن الولايات المتحدة ستعود مستورداً صافياً للنفط خلال هذه السنة. يعني هذا الكلام أن مشروع الاعتماد على الذات في الحقل النفطي فشل فشلاً مدوياً.

ما لا تتطرق إليه القراءة الاقتصادوية هو الدور الحاسم للعوامل السياسية والجيوسياسية في إيصال الأمور إلى ما هي عليه. يجري الحديث عن الاقتصاد العالمي كأنه فضاء منفصل عن موازين القوى والصراعات بين اللاعبين الدوليين، تحكمه اليد الخفية للسوق وقانون العرض والطلب بمعزل عن العوامل الأخرى. تقر القراءة المشار إليها بأن بين دوافع موسكو والرياض في زيادة إنتاج النفط وتخفيض أسعاره، على رغم تنازعهما، رغبة مشتركة واضحة في توجيه ضربة قوية إلى صناعة النفط الصخري الأميركية المنافسة. هل كانت روسيا مستعدة منذ عشرين سنة مثلاً لاتخاذ مثل هذا القرار في ظل اختلال موازين القوى بينها وبين الولايات المتحدة؟ لم تتوقف الأخيرة عن مساعيها لمحاصرة روسيا عبر توسيع «الناتو» شرقاً ونشر البطاريات المضادة للصواريخ في جوارها وتنظيم الثورات الملونة في هذا الجوار، من دون أن نشهد رداً روسياً مباشراً. القرار بتخفيض أسعار النفط سياسي بامتياز، وهو رد على العقوبات الأميركية المفروضة على الشركات العاملة في مشروع «أنبوب السيل الشمالي 2» بين روسيا وألمانيا. التغير المستمر في موازين القوى الدولية والفرصة التي وفرتها الجائحة وتبعاتها على أميركا جعلا ما كان مستحيلاً في الماضي ممكناً حالياً. الأمر نفسه ينطبق على السعودية، على رغم العلاقة الحميمة التي تجمع وليّ عهدها، محمد بن سلمان، بترامب وفريقه، والتي لم تكن لتتجرأ على الإقدام على خطوة تمثّل مساساً بالمصالح الأميركية منذ بضع سنوات، ها هي تقوم بذلك اليوم نتيجة إدراكها لتراجع قوة الحليف وسطوته.

صحيح أن حرب أسعار النفط توقفت بعد الاتفاق بين أطراف «أوبك+» آخر الشهر الماضي، وبعد طلب أميركي عاجل، لكن مفاعيلها المهولة على صناعة النفط الصخري قد تؤدي إلى ألا تتعافى مستقبلاً، وهذا غاية بذاته للطرفين الروسي والسعودي كما أسلفنا. حتى قرار النخب الأميركية الاستثمار المكثف في قطاع النفط الصخري الباهظ، الذي اتُّخذ قبل عقد ونيف، هو قرار جيواستراتيجي وليس اقتصادياً، ووثيق الصلة باستشعارها العجز عن إمكانية المضي في تحمل أعباء وأكلاف قيام بلادهم بدور «شرطي الرأسمالية العالمية» إلى ما لا نهاية، وتأمين إمكانية الاعتماد على الذات في حقل الطاقة، في مواجهة احتمالات لتطورات غير منتظرة في الشرق الأوسط، وانقلاب في تحالفات بلدانه باتجاه منافسيها الدوليين. التوقعات بالنسبة إلى تبعات انهيار أسعار النفط على الاقتصاد والاجتماع الأميركيين شديدة التشاؤم، وإن تفاوتت مستوياته. المؤكد أن «لعنة النفط»، بعد «لعنة كورونا»، ستسرّع وتيرة الانتقال إلى حقبة «ما بعد الغرب» 

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