Russell “Texas” Bentley returned to The Grayzone alongside regular Toward Freedom contributor Fergie Chambers to detail their experiences documenting the war in the Donbass region. Chambers discussed his recent visit to a dungeon of the Ukrainian state-backed Aidar Battalion, and his interviews with Donetsk-based communists, while Texas described being on the front lines with the Donetsk People’s Republic militia.
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Pipeline Politics Hits Multipolar Realities: Nord Stream 2 and the Ukraine Crisis
Editor’s Note: This analysis originally appeared in Counterpunch.
Amid escalating tensions between U.S./NATO and Russia, all eyes are on Ukraine, but Nord Stream 2, a pipeline built to bring Russian gas under the Baltic Sea directly to Germany, is an integral part of the story.
U.S. Under Secretary for Political Affairs Victoria Nuland asserted (January 27), “If Russia invades Ukraine one way or another … we will work with Germany to ensure it (the pipeline) does not move forward.” Delayed by U.S. threats and sanctions, Nord Stream 2 highlights why countries are challenging U.S. leadership.
Since the 1960s when Europe first began importing Russian gas, Washington perceived Russian energy as a threat to U.S. leadership and Europe’s energy security. More recently, with fracking, the United States has become the world’s largest gas producer and a major exporter of LNG (liquefied natural gas). It wants to muscle in on Europe’s huge market, displacing Russian gas. With Nord Stream 2 completed and filled while it awaits German regulatory approval, the stakes are high.
Soon after pipeline construction began in 2018, the United States passed a law threatening sanctions on the Swiss ship laying the pipe. The Swiss pulled out and two Russian vessels completed the line despite sanctions. The United States threatened German contractors too, but Germany stood firm.
In 2021, with construction almost complete, German Chancellor Angela Merkel visited the White House, insisting on Nord Stream 2. U.S. President Joe Biden gave way. He wanted to mend relations with Germany—the European Union’s most powerful country.
Nord Stream 2, like its predecessor Nord Stream 1, began as a joint venture (51% Russia’s Gazprom, 49% Royal Dutch Shell as well as Austrian, French and German companies). Then Poland’s government agency responsible for monopoly regulation forced European partners to relinquish their share, creating another delay. The European companies gave up their shareholding but remained as equivalent financial investors in the pipeline.
Upon the Europeans relinquishing their shareholding, Gazprom became the sole pipeline owner. It is also the world’s largest gas supplier, with a gas pipeline monopoly in Russia. Gazprom wants to deliver its own gas via its pipeline to Europe. The EU, on the other hand, has maintained since 2009 that pipeline operators, in order to encourage market competition, cannot own the gas they carry. After construction of Nord Stream 2 began, the EU extended its rules to new marine pipelines originating abroad.
Nord Stream 2 was the only pipeline affected. While those pipelines completed prior to May 2019 were exempt, its completion was delayed by U.S. sanctions on pipelaying. Gazprom claimed discrimination and appealed. In August, a German court rejected the appeal. Gazprom then appealed to Germany’s Supreme Court.
German industrialists are desperate for Russian gas. Germany has only 17 days of gas supply in storage. Volatile short-term spot prices have compounded their woes. EU gas imports have increasingly shifted from long-term contracts with prices indexed to crude oil toward short-term deals by multiple traders in spot markets.
In 2020, spot prices were roughly half those of Gazprom’s long-term contracts. They surged as much as sevenfold in 2021, reflecting a mix of factors. On the demand side, economic revival from the pandemic boosted demand for gas in Asia as well as Europe. On the supply side, green sources of energy diminished in central Europe because of cloudy windless days. With the decommissioning of coal and nuclear power stations, utilities turned to natural gas.
European politicians blamed Russia for high gas prices, but Gazprom affirmed it was supplying the amounts stipulated in its long-term contracts. Gazprom wants long-term contracts to underpin the huge capital costs of gasfield and pipeline investments.
Russia is a petro-state. It’s the world’s single largest exporter of natural gas, and the second largest oil exporter—just behind Saudi Arabia. Pipelines and sea routes to market are vital to its economy. Russia wants to sell oil and gas in Asia and Europe, and they want to buy it. Nord Stream 2 makes commercial sense. It incurs no transit fees. The route to market is much shorter than aging pipelines via Ukraine. For its part, Ukraine depends on transit fees from gas shipped through these pipelines.
Nord Stream 2 remains controversial, bitterly opposed by Poland and Ukraine who presume it will reduce volumes and transit fees on pipelines through their countries. Germany, Austria, the Czech Republic and others want it. Germany, which carries huge weight in the EU, sees gas as a transition fuel after phasing out nuclear and coal.
Numerous hurdles during and since construction have delayed Nord Stream 2’s certification. The most recent forced its Swiss operating company to form a German subsidiary for the pipeline section in German waters. Upon eventual certification, Germany will become Europe’s main entry point for Russian gas.
The current crisis between Russia and United States/NATO has been brewing for many years. With the dissolution of the Soviet Union, NATO expanded membership to Eastern Europe. NATO facilitates U.S. leadership, keeping European countries on its side against Russia. From a Russian viewpoint, NATO is provocative and threatening.
Part of the agreement underpinning the USSR’s dissolution was Western assurance that it would not expand into Russia’s sphere of influence, a pledge NATO most recently violated by stationing troops, ships and planes along Russia’s borders. The West accuses Russia of interference in Ukraine. Russia points to a 2014 Western-inspired coup in Ukraine and legitimate grievances of Russian-speakers in the breakaway Donbass republics. I document the two narratives in my book Oil and World Politics.
In December, Russia presented draft treaties to the United States and NATO, demanding a complete overhaul of Europe’s security architecture. Russia stressed the principle of indivisible and equal security for all countries, as agreed by all 56 members of the Organization for Security and Co-operation in Europe (OSCE) at Istanbul (1999) and reaffirmed at Astana (2010). Members expressly agreed not to strengthen their security at the expense of other members’ security. The United States is a signatory.
President Putin warned that if the West continued its aggressive policies (NATO’s expansion and missile deployment in eastern Europe), Russia would take ‘military-technical’ reciprocal measures. He said, “they have pushed us to a line that we can’t cross.”
Russia’s initiative put the cat among the pigeons. A succession of high-level meetings occurred between Russia and the United States, NATO and OSCE. Washington presented written responses (January 26), seeking to narrow the debate to Ukraine and alleging the Russians were poised to invade it. Russia insisted repeatedly it would not initiate an invasion but would support Donbass if the latter were attacked.
The United States escalated tensions by repeating claims of an upcoming Russian invasion, even as Ukraine’s leaders expressed doubts. Washington threatened sanctions of unprecedented severity, including major Russian banks, high-tech goods, the SWIFT financial messaging system, and Nord Stream 2.
France and Germany balked because the sanctions would backfire on their economies. They appeared unconvinced Russia intended to attack unless provoked. A flurry of high-level bilateral discussions with Russia followed.
Significantly, representatives of France, Germany, Russia and Ukraine (Jan 26) confirmed support for the 2015 Minsk II agreement and an unconditional ceasefire. Minsk II requires Ukraine to negotiate with the two Donbass republics on autonomy within a federalized Ukraine but, thus far, no negotiations have been held.
The EU imports 40 percent of its gas from Russia. For Russia, the routes through Ukraine and Poland are unreliable, because of hostility in both countries. Ukraine has a long-term deal with Gazprom for gas transit until 2024. Ukraine earns big transit fees, roughly $2 billion USD per year, and desperately wants to keep them. For its internal market, Ukraine buys Russian gas indirectly from Poland, Romania and Slovakia.
Whatever happens with Western sanctions, Russia has a strategic new market in China. Russia’s Power of Siberia pipeline began exporting gas from east Siberia to northeast China two years ago. The two countries have agreed to build a second line, Power of Siberia 2. It will bring gas from the Yamal peninsula in the Russian Arctic to China’s northeast. That means Yamal gas will be able to flow to China as easily as to Europe.
The current situation is dangerous and could easily escalate. Nord Stream 2 is critically important but national security trumps all. Security can only be achieved if it is universal. U.S. efforts to contain Russia and maintain leadership over Europe are not working. The world has become multi-polar and Nord Stream 2 is a fulcrum at the centre of the current crisis.
John Foster, international petroleum economist, is author of Oil and World Politics: the Real Story of Today’s Conflict Zones (Lorimer Books). He held positions with the World Bank, Inter-American Development Bank, BP and Petro-Canada. His blog johnfosterwrites.com and former TF guest editor Charlotte Dennett’s FollowthePipelines.com examine new issues.
Africa Remains at the Center of a 21st Century Cold War
Editor’s Note: This analysis originally appeared in NewsGhana.
Several geopolitical powers are seeking to enhance their influence and cooperation with the continent of Africa.
United States President Joe Biden announced during July that he would host a summit with African leaders at the White House in December. This announcement by Biden comes in the aftermath of several important political developments which have exposed the ineffective foreign policy orientation of the world’s leading capitalist country. Within the United Nations, many African states abstained from two resolutions which condemned the Russian Federation during the early phase of Moscow’s special military operation in neighboring Ukraine.
In addition, most African governments have not made pronouncements in favor of the war program of the U.S. Compounding these complicated relationships is the reliance by several AU states on Russian and Ukrainian agricultural products and inputs. The imposition of unprecedented sanctions by the Biden administration and the European Union (EU) has hampered the flow of goods and services.
The two leading officials of the AU, President Macky Sall of Senegal, who is the chair of the continental organization and Commissioner Chair, Moussa Faki Mahamat, traveled to Sochi in June to hold high-level discussions with Russian President Vladimir Putin. The AU statement issued in the aftermath of the meeting reiterated the position of the organization that the conflict in Ukraine should be resolved diplomatically through negotiations. This is a position at variance with the Biden presidency which has openly declared that the administration wants to remove Putin from power and weaken Russia as a world power.
Also, the talks between Putin and the AU resulted in the reconvening of the Russia-Africa Summit which will meet towards the end of the year in Ethiopia. In fact, during late July, Russian Foreign Minister Sergei Lavrov embarked upon a tour to several African countries including Egypt, Uganda and Ethiopia.
Ugandan President Yoweri Museveni said in a press conference with Lavrov that the enemies of the U.S. were not the adversaries of his government. He noted that Uganda wants to trade with the U.S., Russia and any other country which respects its independence and sovereignty.
The Russian envoy emphasized that Moscow has always supported Africa in the struggle against colonialism. Museveni exclaimed during the press conference held at Entebbe: “How can we be against somebody who has never harmed us? If Russia makes mistakes, we tell them. When they have not made mistakes, we can’t be against them.”
A report published by the Tass News Agency said of the Kremlin’s chief envoy’s trip to Africa emphasizing: “Russian Foreign Minister Sergey Lavrov arrived on Tuesday (July 26) in Ethiopia on a working visit, TASS reports from the site. On Wednesday, Lavrov is expected to hold talks with his Ethiopian counterpart Demeke Mekonnen. The top diplomat visits Ethiopia on the last leg of his tour of Africa. From Ethiopia, he will travel to Tashkent, Uzbekistan, for the Shanghai Cooperation Organization’s Council of Foreign Ministers.”
Lavrov visited four African states during his tour. These countries were Egypt, Congo-Brazzaville, Uganda and Ethiopia, where the AU headquarters is located in the capital of Addis Ababa. The Russian foreign minister denied the allegations made by the U.S. and the EU that Moscow is responsible for the global food crisis.
According to Ahram online, published in Cairo, Egypt, Lavrov said: “There is a very loud campaign around this, but our African friends understand their root cause. They are not related to what is happening within the special military operation.”
France Attempting to Recover Lost Credibility
French President Emmanuel Macron started an African trip at the same time as Lavrov’s visit across the continent. France has come under fire in recent months for its military presence in several countries including the Central African Republic, Mali and Burkina Faso. The CAR and Malian governments are utilizing Russian military consultants from the Wagner Group, which Moscow has denied is an arm of its foreign policy.
Nonetheless, the burgeoning hostility towards Paris within its former colonies on the continent has proved to be worrisome for the Macron government. French military and diplomatic personnel in Mali were requested to leave the country immediately. France has maintained a military presence in many of its former colonies since the 1960s. These forces have intervened in internal political struggles in a manner which benefits France and not necessarily the African states involved.
Although Macron is obviously seeking to counter the heightened scrutiny being placed on France’s involvement in Africa, it is by no means clear what Paris has to offer countries such as Cameroon, Mali, Guinea-Conakry, the CAR, Ivory Coast, among others. In recent years, France has attempted to bolster its CFA zone domination over currencies in various African states even to the point of proposing a new monetary system which would maintain links to Paris.
Even the U.S. State Department-funded Voice of America (VOA), wrote on the mission of the French president while he visited Cameroon noting that: “Macron said European economic sanctions on Russia, which are having an indirect effect on Africa, are intended to stop Russia’s attack on Ukraine’s sovereignty and not to punish Africans. He said France is interested in the well-being of civilians in both African countries and Ukraine. The visiting French president did not say how much France would invest to boost agricultural production in Africa, but said Cameroon is one of the countries chosen for agricultural investments. The U.N. says that Africa depends on Russia and Ukraine for more than 50 percent of its wheat imports.”
Such an admission by the VOA utilizing United Nations data raises the question of why have African governments turned to Russia to meet their domestic consumption demands? France’s foreign policy orientation has heavily relied on military force to advance its strategic interests in Africa.
Moreover, in recent months since the expulsion of French diplomatic and military personnel from Mali, it has become necessary for Macron to advance a new and ostensibly more “compassionate” approach towards various African states. Such a superficial policy shift conflicts with statements made by Macron leading up to the 60th anniversary of Algerian independence when the French leader suggested that atrocities committed by its colonial officials have been exaggerated by successive administrations in Algiers. France controlled Algeria as a colonial outpost for 132 years. Millions of Algerians lost their lives to French forces through massacres dating back to the 19th century notwithstanding the counter-insurgency operations during the war of independence between 1954-1962, when Paris withdrew its military from the North African state.
Biden Maintains Same Imperialist Policy Towards Africa
Mike Hammer, the U.S. Special Envoy to the Horn of Africa, began a tour to Ethiopia, Egypt and the United Arab Emirates on July 24. Supposedly the purpose of Hammer’s trip was to facilitate a settlement surrounding the dispute between Egypt and Ethiopia over the status of the Grand Ethiopian Renaissance Dam (GERD) project.
Egyptian President Abdel Fattah el-Sisi has opposed the GERD saying it will redirect water from the Blue Nile jeopardizing the well-being of its people. The current demarcations for usage from the strategic waterway was instituted by Britain during its colonial domination over Egypt in late 19th and early 20th centuries. Ethiopia maintains that GERD utilizing its full capacity would be beneficial to the entire regions of North and East Africa.
What is significant about the U.S. posture as a mediator in this dispute is that the previous administration of President Donald Trump sided openly with Egypt in 2020, even encouraging Cairo to “blow up” the GERD project. The Biden administration, similarly to Trump’s, has worked to either weaken or overthrow the Ethiopian government of Prime Minister Abiy Ahmed.
Biden and many members of the Democratic Party in Congress have imposed a ban on Ethiopia’s participation in the Africa Growth and Opportunity Act (AGOA) program which has been in operation since the concluding days of the administration of former President Bill Clinton. In addition to the purging of Ethiopia from AGOA, the Congress had threatened to pass legislative measures designed to implement even more draconian sanctions on the Horn of Africa state which houses the headquarters of the AU.
As a result of Washington’s posture towards Ethiopia, many women garment workers have had their plants closed due to lack of demand from the U.S. Hammer claims that the Biden administration is concerned about the equitable and efficient distribution of aid to Ethiopia where the government has battled the Tigray People’s Liberation Front (TPLF) in the north of the country. Successive U.S. administrations have supported the TPLF during its period in power from 1991-2018, when their government collapsed as a result of a national uprising in Ethiopia.
These factors must be taken into consideration when evaluating the diplomatic competition taking place between Washington, Paris and Moscow. If recent events are any indication, the African people along with their governments will struggle to make decisions which benefit the continent as opposed to the western imperialist states.
Abayomi Azikiwe is the editor of Pan-African News Wire, an international electronic press service designed to foster intelligent discussion on the affairs of African people throughout the continent and the world. The press agency was founded in January of 1998 and has published thousands of articles and dispatches in newspapers, magazines, journals, research reports, blogs and websites throughout the world. The PANW represents the only daily international news source on pan-african and global affairs.
Gas-Rich Azerbaijan Unable to Meet EU’s Energy Needs As Russia-Ukraine Conflict Turns 3 Weeks Old
While the Russian “special military operation” in Ukraine turns three weeks old today, energy-rich Azerbaijan is trying to preserve good ties with both Moscow and Kyiv.
Although the situation worries the Caucasus nation snuggled along the western shores of the Caspian Sea, the Azerbaijani government—based in the capital of Baku—tends toward preserving its neutrality and it potentially benefits from exporting additional gas to Europe.
Immediate Impact of War
Two days before the invasion, Azerbaijan signed an alliance agreement with Russia. The two countries are now de facto allies, although their parliaments still have not ratified the deal. According to the document, Moscow and Baku intend to deepen cooperation in the energy sector and strengthen military ties. It is worth noting Russia is already an ally of Azerbaijan’s arch-enemy, Armenia, and the agreement Russian President Vladimir Putin and his Azeri counterpart, Ilham Aliyev, signed in Moscow on February 22 is expected to reinforce Moscow’s positions in the South Caucasus.
Still, Russia’s isolation in the international arena could have an impact on its relations with Azerbaijan. Baku already has suspended all flights to the Russian Federation, and fears have emerged that remittances the approximately 650,000 Azeris working in Russia send home will significantly decline. Moreover, Russia is Azerbaijan’s top import partner. If Moscow eventually limits exports of various goods, including food, Baku likely will have to strengthen economic and political ties with another ally, Turkey.
Double-Edged Sword
It is not a secret Ankara supplied Baku with sophisticated Bayraktar drones prior to the 44-day war between Azerbaijan and Armenia over the Nagorno-Karabakh region. This landlocked mountainous terrain is internationally recognized as part of Azerbaijan, although it was under the control of Armenian forces for more than two decades. It is believed the Turkish-made weapons were a game changer in the war. As a result of the conflict, Baku restored its sovereignty over large portions of the mountainous territory, as well as surrounding areas, and some 2,000 Russian peacekeepers were deployed to the region. More importantly, Azerbaijan and Turkey became official allies, after Aliyev and Turkish President Recep Tayyip Erdoğan signed in June the Shusha Declaration.
Azerbaijan is now an ally of both Russia and Turkey, which could be a double-edged sword for Baku. Although the Caucasus nation supports Ukraine’s territorial integrity, it has avoided condemning Russia’s actions or imposing sanctions on the Russian Federation.
“We have never taken decisions on imposing sanctions on any country,” Azerbaijani Deputy Foreign Minister Elnur Mammadov told Toward Freedom in an interview. He pointed out he does not expect any pressure from the West for Azerbaijan to impose sanctions on Moscow.
Fueling Demand
The European Union expects Azerbaijan to increase gas supplies to the continent, especially if Moscow eventually decides to turn off the taps. Indeed, the EU will need Azerbaijan’s energy resources to cope with possible Russian gas disruptions. But the problem is the country now does not have much more gas to export.
“In 2021, we exported 8.2 billion cubic meters of natural gas to Europe,” said Orkhan Zeynalov, the head of the International Cooperation Department of Azerbaijan’s Ministry of Energy, in an interview with Toward Freedom. “This year, we’re planning to increase the export up to 9.1 billion cubic meters.”
Such a small amount will not meet European needs for energy. In the long term, however, Azerbaijan will be able to provide more gas to Europe if it manages to increase the share of renewable energy sources for electricity production. Baku aims to turn Nagorno-Karabakh into a “green energy zone,” where foreign corporations, such as United Kingdom-based BP and United Arab Emirates-based Masdar, plan to build solar power plants. In addition, Saudi Arabian utility company Acwa Power is expected to build a 240-megawatt wind turbine farm in Azerbaijan, which should reduce the amount of gas the country currently uses.
Nakhchivan Corridor
In 2021, Azerbaijan increased its gas exports by nearly 40 percent, but the country is unlikely to ever replace Russia as Europe’s major energy supplier. Still, the growing demand for Azerbaijan’s gas will almost certainly have a positive impact on the country’s budget. Baku is expected to invest money in the construction of the Nakhchivan corridor, also known as Zangezur corridor, which seems to be a top priority for the Caucasus nation.
“We are already building 110 kilometers (68 miles) of the railway, and 124 kilometers (77 miles) of the highway in the region,” Mammadov said. “Our plan is to finish the construction by the end of 2023.”
Why is this transportation network so important for Azerbaijan? The Nakhchivan corridor will allow the energy-rich nation a land connection with its exclave, the Nakhchivan Autonomous Republic. At the same time, it will connect Azerbaijan with its ally, Turkey. The challenge, however, is 45 kilometers (28 miles) of the road will have to go through Armenian territory. Yerevan, unlike Baku, does not seem to be in a hurry to finish construction of the corridor, even though the railroad portion will connect Armenia with its ally, Russia, through Azerbaijan’s mainland. Yerevan, however, seems to be more interested in the construction of the North-South road corridor that will connect Armenia with Russia, through Georgia.
Georgia did not impose sanctions on Russia, even though the two nations fought a brief war in 2008. That is why the Kremlin does not see the former Soviet republic as an “enemy country,” which leaves room for normalization of relations between Moscow and Tbilisi. In the long-term, such a development would be beneficial for Armenia, given it would secure a land connection with Russia.
Although Moscow reportedly supports the project, and is actively dealing with issues on unblocking transport links in the region, it is not very probable Yerevan will complete the construction of its section of the corridor any time soon, if it all. Quite aware of that, Azerbaijan reportedly decided to bypass Armenia and connect its main territory with Nakhchivan via Iran. On March 11, Baku and Tehran signed a Memorandum of Understanding on establishing communication links in the region. Indeed, such a move could create a new geopolitical reality in the Caucasus.
But as long as the Russia-Ukraine conflict goes on, the final implementation of all the deals in the region will likely remain on hold. For the time being, both Azerbaijan and Armenia are expected to preserve good relations with Moscow, hoping the war in Ukraine will not spill over into the South Caucasus, an area the Kremlin sees at its “near abroad.”
Nikola Mikovic is a Serbia-based contributor to CGTN, Global Comment, Byline Times, Informed Comment, and World Geostrategic Insights, among other publications. He is a geopolitical analyst for KJ Reports and Enquire.