Russian troops march in the 2015 Moscow Victory Day Parade / credit: Vitaly V. Kuzmin
Editor’s Note: The following is the writer’s analysis.
The United States has been accusing Russia of preparing to invade Ukraine, while it continues to build a U.S. military presence in the Black Sea. Warmongering and fearmongering rhetoric began to dominate the public discourse, as media, politicians and military experts have been warning of an “imminent” Russian invasion that could have grave consequences for global peace and security. But does the Kremlin really intend to fight a war against the NATO-backed eastern European country?
According to reports, Moscow has deployed thousands of troops and military equipment to western Russia’s regions that border Ukraine. At the same time, U.S. navy ships Mount Whitney and Arleigh Burke recently entered the Black Sea, while the 9th Expeditionary Bomb Squadron’s B-1B Lancers soared over eastern Europe during a NATO fighter integration mission through the region.
The USS Arleigh Burke ship sailed through the Black Sea on November 25 / credit: U.S. Naval Forces Europe-Africa
Moreover, a Russian Aeroflot airliner flying from Tel Aviv to Moscow was forced to change altitude over the Black Sea because a NATO CL-600 reconnaissance plane crossed its designated flight path. These actions would be the equivalent of Russian naval ships and fighter jets entering the Gulf of Mexico.
As usual, though, the Kremlin’s reaction was weak.
“Just because an air incident over the Black Sea’s international waters has been prevented, this does not mean the U.S. and NATO can further put lives at risk with impunity,” said Russian Ministry of Foreign Affairs spokeswoman Maria Zakharova said.
Just because an air incident over the Black Sea’s Int waters has been prevented, this does not mean the US and NATO can further put people’s lives at #risk with impunity.
However, such a statement is unlikely to provoke fear in NATO’s headquarters.
Crossing Russia’s Red Line
Russian President Vladimir Putin has pointed out the deployment of certain offensive missile capabilities on Ukrainian soil is Moscow’s “red line.”
Yet, the United States has demonstrated it does not take Russia’s threats and boundaries seriously.
“I don’t accept anybody’s red lines,” U.S. President Joe Biden said on December 4.
U.S. President Joe Biden (left) and Russian President Vladimir Putin (right) convened a virtual summit December 7, 2021, to discuss Ukraine, NATO’s eastward expansion, the Iran nuclear deal and resetting diplomatic relations / credit: Twitter/WhiteHouse and President of Russia
The two leaders then held a “virtual summit” on December 7. Shortly after their discussion, the U.S. Congress removed sanctions against Nord Stream 2, Russian sovereign debt and 35 Russians from the draft defense budget. Such actions demonstrate the two leaders have reached certain deals not only on Ukraine, but on energy issues as well. However, tensions between Moscow and Washington, which seem to be an integral part of a new Cold War era, are expected to remain high for the foreseeable future.
Map of Europe, with Belarus, Russia and Ukraine highlighted / credit: BBC
What’s the Possibility of War?
Ahead of the talks between Putin and Biden, the Russian leader clarified his call for new security guarantees.
Putin said Russia would seek “concrete agreements that would rule out any further eastward expansion of NATO and the deployment of weapons systems posing a threat to Russia.” Even if the United States provides such guarantees—which does not seem very probable given that such a move would be interpreted as a concession to Putin and a sign of weakness—it is not probable Washington would implement the deal.
U.S. officials already have declined to rule out dispatching U.S. forces to eastern Europe, although at this point it is highly uncertain if the U.S. troops could be deployed to Ukraine. Ukraine’s Defense Minister Oleksii Reznikov has called on the United States, Canada and the United Kingdom to dispatch their military personnel to the former Soviet republic, even though the eastern European nation is not part of NATO.
“Those troops should be stationed in places where Russia can see them,” Reznikov stressed. Meanwhile, Denis Pushilin, leader of the Russia-backed self-proclaimed Donetsk People’s Republic that declared independence from Ukraine in 2014, said he would request Russia’s assistance in case the situation in the region escalates.
Indeed, a potential deployment of NATO troops in Ukraine would prevent a Russian intervention, given Moscow would be unlikely to confront NATO troops. Russia’s policy makers are quite aware any incursion into Ukrainian territory would result in severe anti-Russia sanctions, which could potentially include actions against Russian oligarchs and energy producers, as well as disconnect Russia from the SWIFT international payment system used by banks around the world. On the other hand, given the United States has the upper hand vis-à-vis Moscow, it is entirely possible some sanctions will be imposed, even if Russia does not invade Ukraine. The West also can deploy troops to Ukraine to prevent what they would call a potential Russian invasion, and there is very little the Kremlin can do about it.
Map of the Donbass War, involving two self-proclaimed republics splitting off from Ukraine beginning in 2014. This maps shows 2014 areas of fighting, and which sides had de facto control of particular regions / credit: ZomBear/Marktaff
Hypothetically, Russia could recognize the self-proclaimed Donetsk People’s Republic and Lugansk People’s Republic, and build military bases on their territories, but such a move is unlikely to have an impact on Ukraine’s goal to restore sovereignty over the coal-rich region. From the legal perspective, the Donbass, as well as Crimea, is part of Ukraine, and no foreign actors would condemn Ukrainian attempts to return the regions under its jurisdiction. Still, unless its gets the green light from Washington, Kiev is unlikely to launch any large-scale military actions against Russia, or Russia-backed forces. Moscow, for its part, is expected to continue preserving the status quo. Supporters of the notion that Russia is keen on invading Ukraine fail to explain what the Kremlin’s motive for such an action would be.
Energy Deals
However, Moscow achieved its goals in 2014 when it incorporated Crimea, which has significant offshore gas and oil reserves into the Russian Federation. That year Russia tacitly supported the creation of the Donbass republics that reportedly have 34.4 billion tons of coal reserves. Since Moscow, through its proxies, already controls the Donbass coal production and export, capturing the other energy-poor regions of Ukraine would represent nothing but an additional cost for Russia.
Nonetheless, Western and Ukrainian media continue to spread rumors of an “imminent” Russian invasion. Ukrainian military officials claim Russia could start its campaign against the former Soviet republic in February—in the middle of winter when troops are up to their knees in snow. Meanwhile, Oleksiy Arestovych, the head of the Office of the Ukrainian President, recently suggested his country could “fire missiles at the Russian Federation, in case the Kremlin starts a full-scale war against Ukraine.”
Belarusian President Alexander Lukashenko, on the other hand, openly said in case of a potential conflict between Russia and Ukraine, Minsk will support its ally, Moscow. At the same time, Belarus announced joint military exercises with Russia along its border with Ukraine. Plus, Lukashenko promised to visit Crimea soon, which would be Belarus’ de facto recognition of the Kremlin’s incorporation of Crimea into the Russian Federation.
His visit, whenever it comes, undoubtedly will have a serious impact on relations between Belarus and Ukraine. Kiev fears Belarus could take part in what they perceive would be a Russian invasion of Ukraine, and the country’s authorities have taken Lukashenko’s threat very seriously. According to reports, citizens of Ukraine already started preparing to defend the Ukrainian capital against an invasion, whether it may come from Russia or Belarus.
One thing is for sure: Unless Kiev starts a massive military campaign in the Donbass, or engages in a serious provocation against Russia, the Kremlin is unlikely to start a war against Ukraine. And even if a war breaks out, Russia’s actions are expected to be very calculated, limited and carefully coordinated with its Western partners, as part of moves toward a “stable and more predictable relationship” between Moscow and Washington.
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.
U.S. President Joe Biden (center) at the U.S.-Africa Leaders Summit held Dec. 12-16 in Washington, D.C. On left is U.S. Secretary of State Antony Blinken and on right is Senegalese President and African Union Chairperson Macky Sall / credit: The White House
WASHINGTON, D.C.—It was a meeting of Uncle Tom and Uncle Sam.
At least, that’s how African-led anti-imperialist organization Black Alliance for Peace (BAP) referred to the Biden administration’s U.S.-Africa Leaders Summit during a Dec. 16 press conference.
“Uncle Tom” is a euphemism for a person of African descent whose loyalty appears to be with their European-descended master. “Uncle Sam” is a nickname for the United States.
“Some people think that was somewhat harsh,” said BAP National Organizer Ajamu Baraka, moderating the press conference at the Washington-based Institute for Policy Studies. “We believe it reflects the character of that relationship. African leaders claim that they want to have respect, but it’s difficult to get respect when you allow yourself to be put in a position where you are summoned to the center of empire with a stick and a carrot.”
Some perceived a major deal that took place at the summit as an example of the subservient relationship many African countries have with the United States. On Dec. 13, a memorandum of understanding was signed between the U.S. government and the governments of Zambia and the Democratic Republic of Congo (DRC) that would employ U.S. agencies’ technical assistance and financing support to mine for copper and cobalt. The goal is to help Zambia and the DRC develop an “electric vehicle value chain,” according to U.S. Secretary of State Antony Blinken. The terms of the deal remain unclear.
He added the DRC possesses 70 percent of the world’s known cobalt reserves, though other sources estimate it at about 50 percent. Meanwhile, Zambia is the world’s seventh-largest copper producer, according to the U.S. International Trade Administration.
After the deal was announced, media outlets reported a Bill Gates-backed startup, KoBold, bought a $150 million stake to use artificial intelligence to search for copper in a Mingomba-based deposit owned by the Lumambe Copper Mine in Zambia.
“Converted to copper contained in electric vehicles, it’s like 100 million electric vehicles,” KoBold President Josh Goldman told the Wall Street Journal.
Blinken touted the deal as a way to combat the global climate crisis. However, the thirst for minerals to produce gadgets and electric cars has been linked to the 2019 coup of Bolivian President Evo Morales and 5.6 million Congolese dying in a war. That led the International Court of Justice to order Uganda to pay $325 million in reparations to the DRC.
“Non-governmental organization Global Witness reported in April that 90 percent of minerals coming out of one DRC mining area were shown to have come from mines that did not meet security and human-rights standards. Companies relying on minerals from such mines include U.S.-based Apple, Intel and Tesla.”
‘Uncle Tom Part and Parcel of U.S. Plunder of Africa’
To counter the U.S.-Africa Leaders Summit, various organizations pulled together events to raise public awareness. The African Peoples’ Forum held Dec. 11 in Washington, D.C., attracted a couple of hundred African-descended people for three panel discussions, two of which Toward Freedom published here and here. The Global Pan-African Congress held a “people’s intervention” on Dec. 10, while BAP organized a week of actions Dec. 12-16.
“The U.S.-Africa Leaders Summit was clearly set up to obscure the real U.S. role in Africa and give legitimacy to the continuing U.S. plunder of African resources, exploitation of African people and military domination of the African continent,” said BAP Mid-Atlantic member Khari Gzifa, as he read aloud an organizational statement at the Dec. 16 press conference.
BAP Coordinating Committee member Margaret Kimberley defended the use of terms like “Uncle Tom” and “Uncle Sam.”
“Do not rejoice just because African leaders gather in Washington,” she said. “The U.S. cannot cover up its many crimes […] the overthrow and murder of [first Congolese Prime Minister] Patrice Lumumba, coups against [first African-born Ghanian Prime Minister] Kwame Nkrumah, the destruction of Libya, the murder of its president. You cannot cover all of that up with a few days of receptions and photo opportunities.”
Samir Amin analysis of neo-colonialism with Frantz Fanon Critique of the National Bourgeoisie is so useful to understanding economic constraints on African nations today. pic.twitter.com/nIzvr8wqFU
Rafiki Morris, who represents the All-African People’s Revolutionary Party on BAP’s Coordinating Committee, said the summit wasn’t simply a meeting, but an indication of a partnership.
“Uncle Tom isn’t colluding with U.S. imperialism,” Morris said. “Uncle Tom is part and parcel of the U.S. plunder of Africa.”
Morris added no amount of attempting to appeal to U.S. Congressional Black Caucus members’ or African leaders’ conscience could work to transform their actions or, as he said, bring them over to “our side of the fence.”
“We now realize Uncle Tom helped build the fence.”
On left, speakers at the Ukraine Recovery Conference held July 4-5 in Lugano, Switzerland. On right, Ukrainian President Volodomyr Zelensky / credit: Multipolarista
Editor’s Note: This article originally appeared in Multipolarista.
While the United States and Europe flood Ukraine with tens of billions of dollars of weapons, using it as an anti-Russian proxy and pouring fuel on the fire of a brutal war that is devastating the country, they are also making plans to essentially plunder its post-war economy.
Representatives of Western governments and corporations met in Switzerland this July to plan a series of harsh neoliberal policies to impose on post-war Ukraine, calling to cut labor laws, “open markets,” drop tariffs, deregulate industries, and “sell state-owned enterprises to private investors.”
Ukraine has been destabilized by violence since 2014, when a U.S.-sponsored coup d’etat overthrew its democratically elected government, setting off a civil war. That conflict dragged on until February 24, 2022, when Russia invaded the country, escalating into a new, even deadlier phase of the war.
The United States and European Union have sought to erase the history of foreign-sponsored civil war in Ukraine from 2014 to early 2022, acting as though the conflict began on February 24. But Washington had sent large sums of weapons to Ukraine and provided extensive military training and support over several years before Russia invaded.
Meanwhile, starting in 2017, representatives of Western governments and corporations quietly held annual conferences in which they discussed ways to profit from the civil war they were fueling in Ukraine.
In these meetings, Western political and business leaders outlined a series of aggressive right-wing reforms they hoped to impose on Ukraine, including widespread privatization of state-owned industries and deregulation of the economy.
On July 4 and July 5, top officials from the United States, European Union, Britain, Japan, and South Korea met in Switzerland for a so-called “Ukraine Recovery Conference.” There, they planned Ukraine’s post-war reconstruction and performatively announced aid commitments—while salivating over a bonanza of potential contracts.
New NATO candidates Finland and Sweden committed to assure reconstruction in Lugansk, roughly 48 hours after Russia and separatist forces announced the region had fallen fully under their control.
But the Ukraine Recovery Conference was not new. It had been renamed to save the expense of a new acronym. In the previous five years, the group and its annual meetings were instead referred to as the “Ukraine Reform Conference” (URC).
The URC’s agenda was explicitly focused on imposing political changes on the country—namely, “strengthening the market economy“, “decentralization, privatization, reform of state-owned enterprises, land reform, state administration reform,” and “Euro-Atlantic integration.”
Before 2022, this gathering had nothing to do with aid – and a lot to do with economics.
Documents from the 2018 Ukraine Reform Conference emphasized the importance of privatizing most of Ukraine’s remaining public sector, stating that the “ultimate goal of the reform is to sell state-owned enterprises to private investors”, along with calls for more “privatization, deregulation, energy reform, tax and customs reform.”
Lamenting that the “government is Ukraine’s largest asset holder,” the report stated, “Reform in privatization and SOEs has been long awaited, as this sector of the Ukrainian economy has remained largely unchanged since 1991.”
The Ukraine Reform Conference listed as one of its “achievements” the adoption of a law in January 2018 titled “On Privatization of State and Municipal Property,” which it noted “simplifies the procedure of privatization.”
While the URC enthusiastically pushed for these neoliberal reforms, it acknowledged that they were very unpopular among actual Ukrainians. A poll found that just 12.4 percent supported privatization of state-owned enterprises (SOE), whereas 49.9 percent opposed it. (An additional 12 percent were indifferent, whereas 25.7 percent had no answer.)
Economic liberalization in Ukraine since Russia’s February invasion has been even more grim.
In March 2022, the Ukrainian parliament adopted emergency legislation allowing employers to suspend collective agreements. Then in May, it passed a permanent reform package effectively exempting the vast majority of Ukrainian workers (those at businesses with fewer than 200 employees) from Ukrainian labor law.
While the most immediate beneficiaries of these changes will be Ukrainian employers, Western governments have been lobbying to liberalize Ukraine’s labor laws for years.
Documents leaked in 2021 showed that the British government coached Ukrainian officials on how to convince a recalcitrant public to give up workers’ rights and implement anti-union policies. Training materials lamented that popular opinion towards the proposed reforms was overwhelmingly negative, but provided messaging strategies to mislead Ukrainians into supporting them.
West Calls for Aggressive Neoliberal Reforms at ‘Ukraine Recovery Conference’
The July 2022 Ukraine Recovery Conference, which was held by Lugano, Switzerland and jointly hosted by the Swiss and Ukrainian governments, featured representatives from the following states and institutions:
Albania
Australia
Austria
Belgium
Canada
Croatia
Cyprus
Czech Republic
Denmark
Estonia
Finland
France
Germany
Greece
Hungary
Ireland
Iceland
Israel
Italy
Japan
Latvia
Lithuania
Liechtenstein
Luxembourg
Malta
Netherlands
North Macedonia
Norway
Poland
Portugal
Republic of Korea (popularly known as South Korea)
Romania
Slovak Republic
Slovenia
Spain
Sweden
Switzerland
Türkiye (formerly known as Turkey)
Ukraine
United Kingdom
United States of America
Council of Europe
European Bank for Reconstruction and Development
European Commission
European Investment Bank
Organisation for Economic Cooperation and Development (OECD)
Among the prominent officials who attended were European Commission President Ursula Von der Leyen, Swiss President Ignazio Cassis, and UK Foreign Minister Liz Truss.
Ukraine’s Western-backed leader Volodymyr Zelensky also addressed the conference via video.
Physically present at the Switzerland meeting were Ukrainian Prime Minister Denys Shmyhal and Zelensky’s top political ally Ruslan Stefanchuk, the chairman of Ukraine’s parliament, the Verkhovna Rada.
Stefanchuk is the second-in-line for the presidency after Zelensky. He is also a member of Ukraine’s all-powerful National Security and Defense Council, which truly governs the country.
From left to right: Ukrainian Prime Minister Denys Shmyhal, Swiss President Ignazio Cassis, European Commission President Ursula Von der Leyen, and Verkhovna Rada chairman Ruslan Stefanchuk at the Ukraine Recovery Conference in Switzerland on July 4, 2022
Even the United Nations gave its imprimatur to the conference: UN Secretary-General António Guterres delivered a video statement as well.
At the two-day meeting, the attendees agreed that Ukraine should eventually be given membership in the European Union. The country had already been granted EU candidate status just two weeks before, at a June summit in Brussels.
At the conclusion of the meeting, all governments and institutions present endorsed a joint statement called the Lugano Declaration. This declaration was supplemented by a “National Recovery Plan,” which was in turn prepared by a “National Recovery Council” established by the Ukrainian government.
This plan advocated for an array of neoliberal reforms, including “privatization of non critical enterprises” and “finalization of corporatization of SOEs” (state-owned enterprises) – identifying as an example the selling off of Ukraine’s state-owned nuclear energy company EnergoAtom.
In order to “attract private capital into banking system,” the proposal likewise called for the “privatization of SOBs” (state-owned banks).
Seeking to increase “private investment and boost nationwide entrepreneurship,” the National Recovery Plan urged significant “deregulation” and proposed the creation of “‘catalyst projects’ to unlock private investment into priority sectors.”
In an explicit call for slashing labor protections, the document attacked the remaining pro-worker laws in Ukraine, some of which are a holdover of the Soviet era.
The National Recovery Plan complained of “outdated labor legislation leading to complicated hiring and firing process, regulation of overtime, etc.” As an example of this supposed “outdated labor legislation,” the Western-backed plan lamented that workers in Ukraine with one year of experience are granted a nine-week “notice period for redundancy dismissal,” compared to just four weeks in Poland and South Korea.
Neoliberal economic reforms proposed in Ukraine’s National Recovery Plan
In the same vein, the National Recovery Plan urged Ukraine to cut taxes on corporations and wealthy capitalists.
The blueprint complained that 40 percent of Ukraine’s GDP comes from tax revenue, calling this a “rather high tax burden” compared to its model example of South Korea. It thus called to “transform tax service,” and “review potential for decreasing the share of tax revenue in GDP.”
In short, the Ukraine Recovery Conference’s economic proposal was little more than a repackaged Washington Consensus: a typical right-wing program that involves implementing mass privatizations, deregulating industries, gutting labor protections, cutting taxes on the rich, and putting the burden on Ukrainian workers.
In the 1990s, following the overthrow of the Soviet Union, the United States imposed what it called capitalist “shock therapy” on Russia and other former constituent republics.
A 2001 UNICEF study found that these harsh neoliberal reforms in Russia caused 3.2 million excess deaths, and pushed 18 million children into poverty, bringing about rampant malnutrition and public health crises.
Washington and Brussels appear committed to return to this very same neoliberal shock therapy in their plans for post-war Ukraine.
More Calls for Neoliberal Shock Therapy in Post-war Ukraine
To accompany its July 2022 meeting in Switzerland, the Ukraine Recovery Conference published a “strategic briefing” compiled by a right-wing Ukrainian organization called the Center of Economic Recovery.
The Center of Economic Recovery describes itself as a “platform that unites experts, think tanks, business, the public and government officials for the development of the country’s economy.” On its website, it lists many Ukrainian corporations as its partners and funders, making it clear that it acts as lobby on their behalf, like a chamber of commerce.
The report that this corporate lobby wrote for the Ukraine Recovery Conference was even more explicit than the National Recovery Plan in its advocacy of aggressive neoliberal economic reforms.
Using right-wing libertarian language of “economic freedom,” the document urged to “reduce government size” and “open markets.”
Its proposal read as neoliberal boilerplate: “decrease the regulatory burden on businesses” by “reducing the size of the government (tax administration, privatization; digitalization of public services), improving regulatory efficiency (deregulation), and opening markets (liberalization of capital markets; investment freedom).”
In the name of “EU integration and access to markets,” it likewise proposed “removal of tariffs and non-tariff non-technical barriers for all Ukrainian goods,” while simultaneously calling to “facilitate FDI [foreign direct investment] attraction to bring the largest international companies to Ukraine,” with “special investment incentives” for foreign corporations.
It was essentially a call for Ukraine to surrender its economic sovereignty to Western capital.
Both the National Recovery Plan and the strategic briefing also heavily emphasized the need for robust anti-corruption efforts in Ukraine.
Neither document acknowledged that fact that Kiev’s Western-backed leader Volodmyr Zelensky, who spoke at the Ukraine Recovery Conference, is known to have large amounts of wealth hidden in a network of offshare accounts.
Even More Calls for Liberalization, Privatizations, Deregulation, Tax Cuts
In addition to the National Recovery Plan and the strategic briefing, the July 2022 Ukraine Recovery Conference presented a report prepared by the company Economist Impact, a corporate consulting firm that is part of The Economist Group.
This third document, titled “Ukraine Reform Tracker,” was funded by the Swiss government with the stated “aim of stimulating and supporting discussion on this matter at the 2022 Ukraine Recovery Conference.”
The Ukraine Reform Tracker analyzed the neoliberal policies already imposed in Ukraine since the U.S.-backed 2014 coup, and urged for even more aggressive neoliberal reforms to be implemented when the war ends.
Of the three reports presented at the conference, this was perhaps the most full-throated call for Ukraine to adopt neoliberal shock therapy after the war – a tactic often referred to as disaster capitalism.
Quoting the Economist Intelligence Unit (EIU), the document insisted that Ukraine has “issues in deregulation and competition that still need to be addressed, such as ongoing state intervention” – depicting state intervention in the economy as something inherently bad.
In this vein, the Ukraine Reform Tracker pushed to “increase foreign direct investments” by international corporations, not invest resources in social programs for the Ukrainian people.
The report emphasized the importance of developing the financial sector and called for “removing excessive regulations” and tariffs.
“Deregulation and tax simplification has been further deepened,” it wrote approvingly, adding, “Steps towards deregulation and the simplification of the tax system are examples of measures which not only withstood the blow of the war but have been accelerated by it.”
The Ukraine Reform Tracker praised the central bank for “successfully liberalising the currency, floating the exchange rate.” While it noted some of these policies were reversed due to the Russian invasion, the report urged “the swiftest possible elimination of currency controls,” in order to “reinstate competitiveness within the financial sector.”
The report however complained that these neoliberal reforms are not being implemented quickly enough, writing, “Privatisation— which already progressed slowly before the war—stalled, with a draft law aiming to simplify the process rejected” by the Verkhovna Rada, Ukraine’s parliament.
It called for further “liberalising agriculture” to “attract foreign investment and encourage domestic entrepreneurship,” as well as “procedural simplifications,” to “make it easier for small and medium enterprises” to “expand by purchasing and investing in state-owned assets,” thereby “making it easier for foreign investors to enter the market post-conflict.”
“Further pursuing the privatisation of large and loss-making state-owned enterprises” will “allow more Ukrainian entrepreneurs to enter the market and thrive there in the post-war context,” the report urged.
The Economist Impact study stressed the importance of Ukraine cutting its trade with Russia and instead integrating its economy with Europe.
“Ukraine’s trade reforms centre on efforts to diversify its trade operations and enhance its integration into the EU market,” it wrote.
The Western government-sponsored report boasted of significantly reducing Kiev’s economic ties to its eastern neighbor, noting: “Russia was Ukraine’s main trading partner in 2014, capturing 18.2 percent of its exports and providing 22 percent of its imports. Since then, however, Russia’s share of Ukraine’s exports and imports has decreased consistently, reaching 4.9 percent and 8.4 percent in 2021, respectively.”
“Ukraine made particular progress in diversifying its trade portfolio within the EU, raising its trade volumes with member states by 46.2 percent from 2015 to 2019,” it added.
The report added that it is “essential” that Ukraine carry out other reforms, such as modifying its railways by “aligning the rail gauges with EU standards.”
The Ukraine Recovery Conference in Lugano, Switzerland on July 5, 2022
The Ukraine Reform Tracker presented the war as an opportunity to impose even more disaster capitalist policies.
“The post-war moment may present an opportunity to complete the difficult land reform by extending the right to purchase agricultural land to legal entities, including foreign ones,” the report stated.
“Opening the path for international capital to flow into Ukrainian agriculture will likely boost productivity across the sector, increasing its competitiveness in the EU market,” it added.
The document proposed new ways for exploiting Ukrainian labor in specific industries, “especially pharmaceutical and electrical production, plastic and rubber manufacturing, furniture, textiles, and food and agricultural products.”
“Once the war is over, the government will also need to consider substantially lowering the share of stateowned banks, with the privatisation of Privatbank, the country’s largest lender, and Oshchadbank, a large processor of pensions and social payments,” it insisted.
The Ukraine Reform Tracker concluded optimistically, stating that that “post-war moment will be an opportunity for Ukraine,” and “there is likely to be significant pressure to continue and speed up the implementation of the reform agenda. Continued business reforms could allow Ukraine to further deregulate [and] privatise lossmaking SOEs.”
While Pushing Disaster Capitalism, the Ukraine Recovery Conference Exploits ‘Social Justice’ Rhetoric
While these three documents published by the 2022 Ukraine Reform Conference (URC) were vociferous calls for the imposition of right-wing economic policies, they were accompanied by superficial appeals to social justice rhetoric.
The URC released a set of seven “Lugano Principles” that it identified as the keys to a just, equitable post-war reconstruction:
partnership
reform focus
transparency, accountability, and rule of law
democratic participation
multi-stakeholder engagement
gender equality and inclusion
(environmental) sustainability
These principles demonstrate the ways that hawks in Washington and Brussels have increasingly weaponized ideas about “intersectionality” to advance their belligerent foreign policy.
In his report “Woke Imperium: The Coming Confluence Between Social Justice and Neoconservatism,” former U.S. State Department officer Christopher Mott discussed the growing use of left-liberal social-justice talking points to legitimize and enforce Western imperialism.
Mott observed that the “liberal Atlanticist tendency to push moralism and social engineering globally has immense potential to create backlash.”
Western-backed liberals in post-socialist Europe have spent three decades creating a false dichotomy between either a liberalizing cultural project that can only be realized under U.S.-led trans-Atlantic hegemony and neoliberal economic reforms, or a purely fictional socialist past whose political legacy is somehow reflected in right-wing anti-communist nationalist parties attempting to roll back advances that women had achieved under socialism.
Despite its patent absurdity, this narrative has won adherents among younger liberal intellectuals, especially in Central and Eastern Europe, who have little or no memory of the socialist period, and who face increasingly desperate career prospects outside of the Western-backed ideological apparatus.
On the other hand, right-wing nationalists like Hungary’s Viktor Orban posture as the only defenders of their countries’ cultural sovereignty against hostile outsiders, while also refusing to break from neoliberal capitalist orthodoxy.
In turn, organic local activists struggling for legitimate social justice causes find themselves portrayed as agents furthering the agendas of foreign powers.
At best, during peacetime, this undermines their work and hinders progress for their causes. In a country like Ukraine, where Western governments have supportedfar-right, neo-fascist groups and eight years dragging out a civil war, this is life-threatening.
In Ukraine, What’s Even Left to Loot?
On May 9, 2022, the U.S. Congress passed the Ukraine Democracy Defense Lend-Lease Act, greatly expanding Washington’s authority to provide military aid to Ukraine.
Lend-lease provisions originated during World War II and were used by the U.S. government to provide military aid to countries fighting Nazi Germany, including Britain and the Soviet Union, without formally entering the war.
Under this framework, the United States provides military equipment as a loan; if the equipment is not or cannot be returned, recipient governments are on the hook to pay back the full cost.
The Joe Biden administration explained its use of lend-lease by the need to quickly move the bill through Congress before other funding ran out.
While many North Americans protested what they saw as a pointless giveaway of tens of billions of taxpayer dollars to a foreign country, lend-lease provisions are loans, not grants.
Britain, one of the United States’ closest allies, only finished paying back its 60-year-old lend-lease debt in 2006. Russia settled its former Soviet obligations the same year.
Given this historical precedent, Ukraine will likely be saddled with debts it can’t readily pay back—debts extended to corrupt Western-backed elites under wartime duress. This means U.S. financial institutions will have further collateral to impose neoliberal structural adjustment policies on Ukraine, subordinating its economy for years to come.
Washington and its allies have a long history of instrumentalizing debt to force countries to accept unpopular pro-Western policy changes, and difficulties of repayment often compel countries to accept even more debt, leading to debt trap cycles that are extremely difficult to escape.
It was in fact the International Monetary Fund, and specifically the refusal of Ukraine’s democratically elected President Viktor Yanukovych to accept IMF demands that he cut wages, slash social spending, and end gas subsidies in order to integrate with the EU, which led him to turn instead to Russia for an alternative economic agreement, thus setting the stage for the Western-backed “Euromaidan protests” and eventually the 2014 coup.
Meanwhile, in the current war, Moscow and Russian-backed separatist fighters are occupying and may annex what were historically the most industrialized regions of Ukraine, located in the east.
At the same time, much of what remained of the country’s pre-war industrial base has been physically destroyed by the war. And these same regions hold much of Ukraine’s energy resources, notably coal.
Millions of Ukrainians have already emigrated and are unlikely to return, especially if they are able to access work visas in the EU. Young and educated people with technical skills are the least likely to stay.
The situation is even bleaker when one considers that, well before Russia’s February invasion, Ukraine was already the poorest country in Europe.
While Soviet Ukraine had thrived as a center of the USSR’s heavy industry, and a source for much of Soviet political leadership, post-Soviet Ukraine has been a playground for rival elites supported by the West or by Russia.
Post-Soviet Ukraine has been devastated by persistent economic crises and rampant and systematic corruption. It has consistently had smaller incomes and a lower standard of living even compared to neighboring post-socialist countries, including Russia.
Ukraine has not been able to restore the size of the economy it had in 1990, when it was still part of the Soviet Union. And looking beyond raw GDP data, the quality of life for many Ukrainian workers and their access to social services has significantly declined.
With limited financial means to provide for basic state functions, much less to repay foreign debts, a post-war Ukraine could be forced to accept humiliating and dangerous concessions in other spheres—serving, say, as an Israel-style trying ground for weapons testing, or hosting Kosovo-style black sites for U.S. covert operations, or providing Western businesses a Chile-style no-regulation environment for tax evasion and criminal activities—all while gutting what little remains of its domestic welfare state and labor protections.
Yet instead of advocating for a diplomatic solution to the war, which could help the Ukrainian government and people concentrate their resources on economic recovery, Western governments have adamantly opposed proposed peace talks, insisting, in the words of EU foreign policy chief Josep Borrell, “This war will be won on the battlefield.”
Washington and Brussels are sacrificing Ukraine for their geopolitical interests. And their Ukraine Recovery Conference shows they expect to keep benefiting economically even after the war ends.
1. This war will be won on the battlefield. Additional €500 million from the #EPF are underway. Weapon deliveries will be tailored to Ukrainian needs. pic.twitter.com/Jgr61t9FfW
— Josep Borrell Fontelles (@JosepBorrellF) April 9, 2022
South Africa confirmed on Thursday, June 29, that the upcoming BRICS summit will be held as proposed on August 22-24 in Johannesburg, putting to rest the uncertainty which arose after the International Criminal Court (ICC) issued a warrant against Russian President Vladimir Putin.
South Africa, being a signatory to the Rome Statute of the ICC, is duty bound to execute the arrest warrant against Putin if he lands in the country.
The ICC had issued an arrest warrant against Putin in March over allegations of illegal deportation of children from Ukraine, as well as other war crimes committed there. Putin has denied these allegations.
Reuters quoted South Africa’s Minister of International Relations Naledi Pandor as saying that Putin has not yet confirmed whether he will attend the summit in person, and he may join in virtual mode.
South Africa has been pressured by the United States and other Western countries to abandon its stance of neutrality with respect to the war in Ukraine and abide by the sanctions imposed by them on Russia. The United States had also accused South Africa of supplying weapons to Russia.
South Africa has denied the U.S. allegations and refused to take sides in the war, maintaining that economic and political relations with both the West and Russia are significant for the African nation.
In June, South African President Cyril Ramaphosa led an African delegation to both Ukraine and Russia to push for a negotiated settlement of the conflict.
South Africa joined BRICS in 2011 as its fifth member. The grouping also includes Brazil, Russia, India, and China. The upcoming gathering would be the 15th summit of BRICS countries, which have vowed to create a more equitable and multipolar world system and counter Western economic and political hegemony.
More than a dozen countries have applied for BRICS membership recently, including Iran, Saudi Arabia, and Argentina, indicating the growing popularity of the grouping as an alternative to West-dominated international forums.