Toward Freedom board member Jacqueline Luqman (left) and Kamau Franklin spoke about their work as media makers for Radio Sputnik and Black Power Media, respectively, on a panel held December 11 in Washington, D.C., as part of the first-ever African Peoples’ Forum, organized to counter the Biden administration’s U.S.-Africa Leaders Summit / credit: Julie Varughese
WASHINGTON, D.C.—Hundreds of people of African descent convened this past weekend at two events that aimed to be the people’s opposition to the Biden administration’s U.S.-Africa Leaders Summit, which is taking place this week amid a military buildup to enforce the summit’s security in Washington, D.C.
The summit is described as a four-day event (Dec. 12-15) that is designed to foster economic opportunities and reinforce the United States’ alleged commitment to human rights and democracy. It is the first summit of its kind since 2014.
“I look forward to working with African governments, civil society, diaspora communities across the United States, and the private sector to continue strengthening our shared vision for the future of U.S.-Africa relations,” U.S. President Joe Biden is quoted as saying on the summit’s website.
Activists from across the United States joined together for the African Peoples’ Summit held December 11 in Washington, D.C. / credit: Julie Varughese
However, the summit comes amid dim relations between the United States and many African countries, some of which have decried Western financial and arms support for the war in Ukraine. Western sanctions against Russia have caused price spikes in wheat, with 345 million people in the world expected to experience “acute food insecurity.” Several African countries have relied on Russia and Ukraine for large portions of their wheat imports. However, U.S. officials have been pilloried, too, for saying African countries that continue to trade with Russia would face consequences.
Speakers at both counter events said the Biden summit is really a U.S. attempt to maintain control over the African continent.
Netfa Freeman, an organizer with Pan-African Community Action and a member of the Black Alliance for Peace Coordinating Committee, spoke December 10, at the Global Pan-African Peoples Intervention on the U.S.-Africa Leaders Summit. The Global Pan-African Congress organized the event at Howard University’s School of Social Work in Washington, D.C. Freeman read aloud a December 9 statement the Black Alliance for Peace issued.
“The Black Alliance for Peace (BAP) recognizes the ‘U.S.-Africa Leaders Summit,'” the organization states, “as nothing more than collusion between neo-colonial powers and U.S. attempts to advance and maintain dominance over the continent.”
The Biden administration invited leaders of 49 African countries. The exceptions were Burkina Faso, Eritrea, Guinea, Mali, the Saharawi Arab Democratic Republic and Somaliland. An unnamed “senior administration official” was quoted in a transcript of a December 8 background press call as citing the African Union suspending most of these countries for why they were not invited. (A background press call is meant to provide off-the-record information to invited press, hence officials went nameless in the transcript. Toward Freedom was not invited.)
However, long-time colonizer and U.S. ally, France, recently announced the removal of military troops in Burkina Faso, Mali and Niger. This came after coups and instability in these countries. Mali also recently banned French NGOs. Guinea experienced a coup in 2021 that appeared to be welcomed by its population. Meanwhile, the United States does not recognize Western Sahara, or the Saharawi Arab Democratic Republic, as a sovereign state.
While the officials mentioned various civilian-led entities the United States has deployed to cultivate leadership on the continent, none of them spoke about the U.S. Africa Command (AFRICOM). That is one of 11 combat and technical military structures the United States has deployed throughout the world to ensure control of shipping lanes and resources. AFRICOM’s press officer has denied commerce is its only interest, while acknowledging it is one of AFRICOM’s reasons for being. Meanwhile, its 2022 “posture statement” to the U.S. Congress states, “Africa sits astride six strategic chokepoints and sea lines of communication, enables a third of the world’s shipping, and holds vast mineral resources. When access through these strategic chokepoints is blocked, global markets suffer.”
Speakers at the weekend’s events remarked on U.S. intentions.
“The U.S. government and their scribes are misguiding the public on what the roles of the U.S. government, NATO, AFRICOM and neoliberal leaders are in maintaining the state of unrest and violence in countries so they can steal their resources,” said Jacqueline Luqman, a Toward Freedom board member, who spoke as co-host of Radio Sputnik’s “By Any Means Necessary” on a panel about the role of the media.
“The US gov. & their scribes are misguiding the public on what the roles of the US gov., NATO, AFRICOM & neoliberal leaders are in maintaining the state of unrest & violence in countries so they can steal their resources,” @luqmannation1@Blacks4Peace#apf2022. pic.twitter.com/WQ5Xti8eMV
That panel was one of three held during the first-ever African Peoples’ Forum. The December 11 event was organized at the Eritrean Civic and Cultural Center in northeast Washington, D.C. Moderators included Eritrean activist Yolian Ogbu and Hermela Aregawi, an independent journalist of Ethiopian descent who has reported on the Horn of Africa.
Speakers and moderators of the three panels that took place December 11 at the first-ever African Peoples’ Forum in Washington, D.C. / credit: Abena Disroe-Morris
The five-hour event featured three panels of prominent speakers like Eritrean journalist and activist Elias Amare; and Paul Sankara, brother of assassinated Burkina Faso leader Thomas Sankara; among many others.
Aregawi announced to the audience of a couple of hundred mostly African-descended people that the event was so successful, the forum may take place quarterly to create more opportunities for African anti-imperialist activists to come together. The event was pulled together in just three weeks’ time, she said.
To continue with the momentum in opposition to the U.S.-Africa Leaders Summit, BAP has organized a week of actions, December 13-16, to raise awareness about the nature of the U.S. role in Africa.
“BAP calls for the dismantling of NATO, AFRICOM and all imperialist structures,” the organization’s statement reads. “Africa and the rest of the world cannot be free until all peoples are able to realize the right of sovereignty and the right to live free of domination.”
United Nations High Commissioner for Refugees staff with refugees from Sudan in Chad / credit: UNHCR/Colin Delfosse
Over 700,000 people have been internally displaced in Sudan since April 15, when an armed conflict began between the Sudanese Armed Forces (SAF) and the Rapid Support Forces (RSF), according to the UN’s International Organization for Migration (IOM).
The IOM spokesperson, Paul Dillon, said at a press briefing in Geneva on May 9 that the number has doubled in the prior week after IOM had previously estimated on May 3 that 334,053 had been displaced, 72 percent of them in West Darfur and South Darfur States.
In the states of South Darfur, North Darfur, and Central Darfur, clashes between the SAF and RAF began soon after they started fighting in Khartoum, killing many civilians, as Mohammed Alamaldin, a civil society activist from West Darfur’s capital Genena, told Peoples Dispatch.
However, in his own state, community members—including youth, women, and elders—had managed to secure a local agreement between SAF and RSF “to wait until the winner is determined in Khartoum.”
The locally negotiated truce lasted for a little over a week before forces clashed on April 24. Amid the ensuing insecurity, the armed conflict between West Darfur’s ethnic militias escalated, killing over 250 and wounding 300 civilians between April 27 and May 3, according to Alamaldin. On May 12 and May 13 alone, 280 were killed and over 160 were injured.
Remembering Randall Robinson: Black internationalist, anti-imperialist and friend of Haiti
Editor’s Note: The following was originally published in Black Agenda Report.
On March 24, 2023, Randall Robinson died at the age of 81. In his many obituaries, he will be remembered as a “human rights advocate, author, and law professor,” as well as “founder of TransAfrica,” and author of The Debt: What America Owes to Blacks. Robinson became a household name after the organization he founded in 1977, TransAfrica, spearheaded public protests against South African apartheid in front of the South African embassies in the early 1980s, helping to give voice to the international anti-apartheid movement.
Once one of the largest African American human rights and social justice organizations, TransAfrica was founded on a vision where Africans and people of African descent are equal participants in the global world order. It took as a point of departure the belief that the freedom of African Americans is bound up with the “emancipation of all African people.” As such, TransAfrica’s mission was to serve as a “major research, education and organizing institution for the African-American community, offering constructive analysis concerning U.S. policy as it affects Africa and the African diaspora in the Caribbean and Latin America.”
For some of us, what we remember most about Robinson is his enduring support of Haiti and Haitian people. He supported Haiti’s reassertion of sovereignty and democracy with the 1990 election of Jean Bertrand Aristide. After Aristide’s first overthrow—after only seven months in office—by a U.S.-backed coup d’etat, Robinson waged a 27-day hunger strike to both force the reinstatement of Aristide and to protest racist U.S. policies against Haitian migrants.
Perhaps the most enduring memories of Robinson’s steadfast support for Haiti and Haitian people come with the phone call to Democracy Now, in the early hours of March 1, 2004, after U.S. marines and the U.S. ambassador to Haiti, Luis Moreno, went to Aristide’s house and forced him and family members onto an unmarked plane that then flew them out of the country. Robinson said:
“[Aristide] called me on a cell phone that was slipped to him by someone… The [U.S.] soldiers came into the house… They were taken at gunpoint to the airport and put on a plane. His own security detachment was taken as well and put in a separate compartment of the plane… The president was kept with his wife with the soldiers with the shades of the plane down… The president asked me to tell the world that it is a coup, that they have been kidnapped.”
In 2001, Robinson permanently left the United States to move to St. Kitts, the Caribbean island from which hailed wife, Hazel Ross-Robinson. He had become disillusioned with the retrograde, unjust, and incorrigible U.S. political system:
“America is a huge fraud, clad in narcissistic conceit and satisfied with itself, feeling unneeded of any self-examination nor responsibility to right past wrongs, of which it notices none.”
To mark Robinson’s passing and to remember his legacy, we reprint below a 1983 interview from Claude Lewis’s short-lived journal, The National Leader. The interview foregrounds Robinson’s deep understanding of global Black politics and the sharpness of his anti-imperialist analysis–especially concerning the role of the U.S. as the world’s hegemon. Robinson’s analysis, alongside his courage, his integrity, and his love of Black people, will be missed.
Randall Robinson: Third World Advocate
TransAfrica is a Washington-based lobby organization that often takes strong, progressive positions on African and Caribbean questions. Randall Robinson, a Harvard trained lawyer and farmer Congressional Hill staffer, is executive director of the six-year-old organization which now has 10,000 members. During an interview with Managing Editor Joe Davidson he castigated President Reagan for “the vileness of this administration’s policy toward the Black world” and the close relationship between the United States and South Africa, “the most vicious government this world has seen since Nazi Germany.”
Joe Davidson. How would you assess the level of involvement of the Black community in foreign affairs? Many people have complained over the years, or at least we have been stereotyped over the years as having interest only in domestic issues. What’s your experience?
Randall Robinson: I think it has changed fundamentally in the last 30 years. The post-civil rights movement, foreign affairs activity of the Black community has shown a dramatic increase of interest, and I think that is in large part because we’ve made some gains and we can think about some other things so that we don’t have to dwell so much on domestic concerns, but we can still monitor and express ourselves on domestic concerns and at the same time be involved in foreign policy concerns. I think it was a myth and untrue to suggest in the first place that we were not interested in foreign affairs. One looks back through the record; you can go back as far as Martin Delany, and Frederick Douglass, and Garvey, and James Weldon Johnson, and the NAACP, through the ’30s and before, to show a strong interest in foreign affairs. People like Alpheus Hunton in the ’30s and ’40s, and W.E.B. DuBois, of course, were instrumental in their foreign affairs involvement. I think there’s a more general popular involvement now on the part of the Black community and certainly on the part of Black institutions. I can’t think of a single Black national organization that at its annual convention does not take a position on a variety of issues, particularly those concerning U.S. policy toward Africa and the Caribbean.
JD: A number of people have expressed, informally, some dismay that there was not more of an outpouring of protest—on the street protest—against the Grenada invasion. Do you think that the level of protest against that was up to what you would expect or up to what you would want?
RR: I think it was up to what we would expect. There are a variety of reasons for that. It was a very complex situation and I think protest in the United States may have exceeded protest in the Caribbean itself. One has to remember that polls in Grenada – well not in Grenada but in Trinidad and In Jamaica and other places – showed that by and large Caribbean people supported the invasion. The question is “Why and why were there not more protests in the United States?” First of all, I think that one cannot diminish or underestimate the impact that the killing of Maurice Bishop had on the levels of protest that we saw expressed in the wake of the invasion. The killing of Maurice Bishop, and Jacqueline Creft, and Unison Whiteman and the others were at first met by extreme reactions of anger, including my own. Maurice, Unison and others involved were both personal friends, political colleagues, and people who were very decent, idealistic human beings who dedicated their lives to the betterment of the lot of their people in Grenada. And they were summarily executed by people who took it upon themselves to wrest power away from those in whom it was duly vested. So, the Reagan administration saw an opportunity—with the successors to Bishop stripped of support—to invade; and they took that opportunity. There were many in Trinidad and Jamaica who were interested in seeing Maurice avenged without thinking about the implications of the act of the avenger. In addition to which many were confused by the invitation on the part of the Eastern Caribbean States to have the United states join with them in the invasion. So, all of these things served to muddle public reaction in the United States. Particularly given the fact that most Americans don’t know very much about anything west of Los Angeles or east of Washington, D.C. And ignorance, coupled with affection for Maurice, the barbarity of the action of his and his cabinet ministers’ elimination all taken together made for a dampened reaction to the invasion in the United States.
JD: What should be done now with Grenada? The invasion is fait accompli, it’s history, Maurice Bishop is dead; he can’t be brought back. What do you think should be done now?
RR: Well I think first, Maurice can’t be brought back, but as (former Jamaican Prime Minister) Michael Manley told me in a long discussion we had two weeks ago, “This may have produced a hundred Maurice Bishops.” Maurice Bishop did not live in vain; he left a sterling record of accomplishment and commitment to be emulated in time to come. And one has to believe that in Grenada itself, a few years from now, that Maurice Bishop having been martyred will arise as a memory and life model to be cherished by young Grenadians. I think that the first thing to do is to get the United States out and to get a self-determination of that nation’s sovereignty restored and democratic institutions restored. I don’t mean democratic institutions certainly in the way that Reagan and his people mean them, but institutions in which Grenadians themselves broadly participate in ways they see fit, meeting their own needs. So that means getting the U.S. out. That means to have the government that follows on not bullied into this policy or that policy by the mammoth to the north. The reason the U.S. invaded is what causes us concern in the first place. We know the invasion had nothing to do with the safety of American lives, but had everything to do with the Grenadian leadership not doing what they were told to do; for developing friendships as self-determination prerogatives allow nations to develop, with Cuba and with the Soviet Union but also with Europe and with the Western Bloc. Grenada was truly non-aligned. One must fight to preserve for future Grenadian government the same prerogatives of self-determination and sovereignty. It is up to them and them alone to determine what kind of political and economic system that they want to have and what kinds of relationships they want to develop with countries in the region and outside of the region, Eastern or Western Bloc countries. And failing that, what we have is a de facto restoration of colonialism in Grenada. We in the United States who are concerned about these things must make certain that the United States is not allowed to de facto re-colonize that country.
JD: You hosted Maurice Bishop in this country in May. There was a big dinner for him, your annual dinner at which he spoke. During that visit, he also met with members of the Reagan administration. It had been suggested by some that he was attempting to move closer to the United States. Is that true?
RR: He was attempting to develop a rapprochement with the United States in the same fashion that Cuba and any number of other nations in the hemisphere have attempted to do. “Move closer,” suggests that he wanted an alliance with the United States different from their friendships with other countries. They wanted normalized relations, they wanted trade, they wanted a diminution of the hostility that existed between the two countries. His trip here was an olive branch and he was rebuffed. He came and asked for a meeting with President Reagan (and was) refused, asked for a meeting with Secretary (of State George) Shultz and was refused, and was offered a meeting with the American ambassador to the OAS, Mittendorf – of course that was a rather gratuitous and harsh slap in the face to have a head of state meet with the American ambassador to the OAS – and in the last analysis he was given a meeting with William Clark, the National Security Council advisor and was rebuffed in that meeting. So that the Maurice Bishop that the Reagan administration now describes as “the martyred of the New Jewel Movement” was put in a position of weakness by the same administration that refused to normalize relations with him. Maurice did not want a lopsided foreign policy that saw him locked into relationships with eastern countries without relationships of the same sort with western nations. Certainly the Europeans responded in a sensible fashion, because the airport there and their development program have been assisted by the British and the other European economic community countries. Only the United States, the big bully of the hemisphere, treated Grenada in this fashion.
JD: Let’s move across the ocean to southern Africa. The Commonwealth nations, including two members of the contact group—the western contact group, Canada and Britain—recently said that the United States is at fault for there being no settlement to the Namibian question. This is something that you have said for a long time. “The issue of the Cubans in Angola is a phoney issue,” you’ve said and others. But now because the Commonwealth and because members of the contact group are coming out and saying that too, do you think it will change Reagan administration policy on Namibia?
RR: No, I don’t think anything will change Reagan administration policy. The only way to change Reagan administration policy is to get a new tenant at the White House, and we’ve got to dedicate ourselves to making sure that’s done next year. First of all, one has to make clear that the Reagan administration never had the independence of Namibia at the top of its agenda. That was simply a sort of smoke screen behind which the Reagan administration was cultivating a closer relationship with the Republic of South Africa. South Africa in Reagan eyes, of course, is the guardian of Western interests in that part of the world. And so the United States is much more concerned about the containment of what it calls “the spread of communism” in southern Africa than it was about the interests and freedom of the people of Namibia. They’ve been subordinated. And if there were, two months ago, any chance of persuading the people of Angola that they could do without Cuban assistance I think the invasion of Grenada completely dashed any faith they might have in U.S. good faith. The Angolans have asked for a long time should they send the Cubans home. The Cubans, who together with their own forces, are all that stand between them and a South African toppling of their government. They’ve asked who would help them with their security concerns, who would protect them from South African troops; and the United States has now answered by demonstrating that it has no more concern for the sovereignty of a small developing nation than do the South Africans. So how is the Angolan government in Luanda to put any faith in any assurances that come out of Washington after this nation has violated the OAS charter, the United Nations charter, international law, and its own domestic law in invading Grenada in the way that it did?
JD: Chester Crocker, the assistant secretary of state for African affairs, sees constructive evolutionary change in southern Africa. At the same time, the policy of constructive engagement has brought about an increase in cross-border raids, an increase in forced relocations and a general crackdown on the opponents of apartheid including recently a number of whites who have been supportive of the aims of the African National Congress. The relationship between the Reagan administration and South Africa appears to be firming up apartheid. Is there anything that can be done other than getting the Reagan administration out to change that?
RR: Mr. Crocker is not stupid. He sees South Africa with the same eyes that you do. South Africans are very pleased with the responses of this administration to its activities and clearly the administration in Pretoria has moved to the right both in its relations with its neighbors as well as in its domestic policy since the Reagan administration has been in power.
Again, let’s restate the basic premise here that the United States has no intention under the Reagan leadership of changing the configuration of power in southern Africa. It does not want to dramatically reshape the sort of power structure of South Africa. It likes it perfectly fine, likes white supremacy perfectly all right. Because it is that white leadership that is so virulently anti-Communist and so much in tune with Reagan geopolitical visions of how the world ought to be ordered.
I think one can do some things to temper this kind of right wing zealousness on the part of the Reagan administration before a turn in government, but that requires at the same time an enormous effort on the part of Americans to demonstrate their displeasure with this kind of alliance that these people have formed with the South Africans. At the same time there are a good many things, Joe, that we are doing with the Congress that the Reagan administration would be hard put to turn back. One, there’s the bill offered by Rep. William Gray of Philadelphia to prohibit any new American investment in South Africa. That is a part of the Export Administration Act. Now, that passed in the House. There is no counterpart language in the Senate Export Administration Bill. But we go to conference in January, on the bill; and to keep the language in we have to persuade the Senate conferees, particularly a Republican or two, that this language is important to us. Now once we get this passed, it would be very difficult for the Reagan administration or President Reagan to veto the Export Administration Act.
One of the key people that we have to sway on this, on the conference committee is going to be Senator (John) Heinz of Pennsylvania. So we have to concentrate our lobbying on Senator Heinz and the others who are going to be on that conference committee to let them know how important this legislation is to the Black leadership and sensitive white leadership in this country. In addition, there’s the Solarz Bill that does one thing I’m not particularly interested in and opposed, but two things I very much support. It would codify, make mandatory the Sullivan Principles. Now, Rev. Leon Sullivan and I have worked very closely together on a number of things. We just happen to disagree on the strength and importance and usefulness of the Sullivan Principles. But he supports the Gray Bill and has been shoulder-to-shoulder with us on prohibition of new investment. In addition to which the Solarz Bill would prohibit the sale of Krugerrands, South African gold pieces, in the United States and would further prohibit American bank loans to the South African government. So those are two important elements of that legislation. This is also a part of the Export Administration Act and in conference we have to retain this.
We can’t have two of the elements chipped away with just the Sullivan Principles left standing. Again, Senator Heinz and others will be important in this context. Lastly, of course there is the IMF (International Monetary Fund) bill that we are going to see as a part of it anti-apartheid language. Not the language that we wanted which would mean no support possible for any American vote for an IMF loan to South Africa. But we do have language now that calls for a demonstration from the administration that South Africans have taken action to significantly reduce apartheid before getting such a loan and calling upon the South Africans to go into the private capital market before going to the IMF in the first place, and then requiring the Treasury—the Secretary of the Treasury—21 days in advance of any intent to vote for a loan for South Africa to come to the Congress and to demonstrate that these conditions have been met. Now, President Reagan will have to sign the IMF bill.
So what I’m suggesting, Joe, is that there are some things that we’ve been able to do through the Congress as parts of bills that the administration wants that net some real progress for us. But in terms of expecting anything more from this administration, of an anti-apartheid fashion; no, we’d be dreaming to expect that. These people very much favor what’s going on in South Africa.
“Randall Robinson: Third World Advocate,” The National Leader: The Weekly Newspaper Linking the Black Community Nationwide 2 no. 32 (December 15, 1983)
On September 10, sections of the second Nord Stream 2 pipeline laid from the German shore and Danish waters were connected in a so-called above-water tie-in in the Baltic Sea. The opposing pipe strings were lifted from the seabed by the lay barge, Fortuna, and the pipe ends were cut and fitted together. The welding to connect the two lines took place on a platform located above the water on the side of the vessel. Then the connected pipeline was lowered to the seabed as one continuous string / credit: Nord Stream 2 / Axel Schmidt
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.