Russia to root out corruption

Vladimir Putin sat motionless as the minister, seizing on the Russian leader’s first major meeting with his economic team in months, itemized the challenges.

A recession is imminent, inflation is getting out of hand and the ruble and oil are in freefall, Economy Minister Alexei Ulyukayev told Putin, according to people who attended the meeting at the presidential mansion near Moscow in mid-October. Clearly, Ulyukayev concluded, sanctions need to be lifted.

At that, Putin recoiled. Do you, Alexei Valentinovich, he asked, using a patronymic, know how to do that? No,Vladimir Vladimirovich, Ulyukayev was said to reply, we were hoping you did. Putin said he didn’t know either and demanded options for surviving a decade of even more onerous sanctions, leaving the group deflated, the people said.

Days later, they presented Putin with two variants. To their surprise, he chose an initiative dubbed “economic liberalization,” aimed at easing the financial burden of corruption on all enterprises in the country, the people said. It was something they had championed for several years without gaining traction.

The policy, which Putin plans to announce during his annual address to parliament next month, calls for a crackdown on inspections and other forms of bureaucratic bullying that cost businesses tens of billions of dollars a year in bribes and kickbacks, the people said. It entails an order from the president to end predatory behavior, with prosecution being the incentive for compliance, they said.

Thieves Beware

“Wastefulness, an inability to manage state funds and even outright bribery, theft, won’t go unnoticed,” Putin said at a meeting with supporters in Moscow yesterday.

Russia’s growing isolation over its support for the separatist rebellion in Ukraine has created a divide among competing factions within Putin’s inner circle. One group, the “siloviki,” is dominated by men who share Putin’s background in the security services and reject U.S. hegemony. They’ve held the upper hand over another bloc, centered around Prime Minister Dmitry Medvedev, that favors less state control over the economy, according to five officials close to the president.

Putin’s spokesman, Dmitry Peskov, said he wasn’t aware of any specific “liberalization plan” and declined to comment on what the president plans to say in his address to parliament.

“We are constantly and purposefully cutting the bureaucratic burden on businesses,” Peskov said by phone. Ulyukayev declined to comment through his press service.

Putin’s Choice

Putin’s backing of the program marks a revival of sorts for the Medvedev faction, which advocates closer integration with the U.S. and Europe, a process now derailed by sanctions, as the path most beneficial to the country. This group, which includes Ulyukayev, had been sidelined since February, when the overthrow of Ukrainian President Viktor Yanukovych, Russia’s ally, spurred the siloviki to organize the annexation of Crimea.

Putin chose the corruption crackdown policy over the other option presented by his economic team: the “mega-projects” program. That path would further enrich two of his closest allies, billionaires Gennady Timchenko and Arkady Rotenberg, by transfering huge sums of money to contractors.

With sanctions hurting more than anticipated, declaring a war on corruption is an “obvious” course of action, but it’s bound to fail, said Boris Makarenko, deputy director of the Center for Political Technologies in Moscow.

‘New Reality’

“Such measures are alien to the mentality of the government bureaucracy, whose natural instinct is to go for more of the same, more regulation, more squeezing revenues from businesses,” Makarenko said.

It was only in September and October that officials and executives fully realized that sanctions will be in place for a long time and that urgent measures are needed to limit the damage, according toSergey Dubinin, the former central bank governor who is now chairman of state-run VTB Group, Russia’s second-largest bank.

“They were hoping the sanctions were temporary,” Dubinin said in an interview in the Russian capital. “Now they’ve woken up to the new reality.”

The call to action was triggered by the “shocking devaluation” of the ruble, which unfolded as the closure of foreign financial markets coincided with falling prices for oil, the country’s largest export, Dubinin said. That has sparked a cash crunch for companies that have $44 billion of debt due by year’s end, according to central bank estimates.

Oil Burden

Putin said last week Russia is prepared to withstand a “catastrophic” slump in oil prices. Brent, a benchmark for more than half of the world’s crude, has plunged 30 percent since the end of June. The ruble has declined the same amount against the dollar this year, the most of 24 emerging-market currencies tracked by Bloomberg.

Before the first round of sanctions were imposed in March, the government did a good job of creating a “favorable external environment” for Russian companies, even though corruption and other internal pressures remained burdensome, said Sergei Vasilyev, deputy head of state development bank VEB.

“Now the external environment has become very difficult, so we need to liberalize the internal environment to create better conditions for economic agents,” Vasilyev said. “Liberalization can help offset adverse external conditions without increasing the tax burden.”

Official Swindlers

Former Finance Minister Alexei Kudrin, who sits on the president’s Economic Council, said a successful campaign against extortion would be akin to cutting taxes without further weakening public finances. Corruption is one of the greatest obstacles to growth and if Putin pushes the policy with the same vigor he pursues security issues, the impact on the economy may be profound, Kudrin said in an interview.

“The key driver for the development of the country is citizens’ confidence in the economy,” Kudrin said. “The first thing to do is to limit the number of control and supervisory functions of the state. Authorities simply have to stop going to enterprises to swindle money. We have to limit fire, sanitary and technical inspections.”

In 2008, when Putin swapped jobs with Medvedev for four years, businesses were paying more than $200 billion a year in bribes, Moscow-based research group Indem said in a report that year, using data from prosecutors. Most Russians say corruption has only gotten worse since, according to a survey published by Transparency International.

‘Economic Freedom’

Business Solidarity, a Moscow-based organization that campaigns against corruption, estimates that bribes, kickbacks and related illegal activities end up increasing the retail price of most goods by 30 percent.

A crackdown on inspections, if done right, could have an “immediate impact” on the economy, saidMDM Bank Chairman Oleg Vyugin, who served as first deputy head of the central bank from 2002 to 2004. As it is now, law-enforcement agencies have a simple business model: the more they inspect, the more they earn, Vyugin said in an interview.

“The economic powers of the Investigative Committee, the Prosecutor General’s Office and the police must be curbed,” Vyugin said. “This is the only way to convince people that it’s possible to develop a business here.”

There’s an irony about the U.S. and European sanctions that isn’t lost on the members of Putin’s economic team. While the penalties have pushed foreign investors away, they’ve also become the catalyst for meeting one of their key demands — rooting out corruption.

One of the major debates about the new program now is what to call it because Putin thinks “Economic Liberalization” sounds too western, according to one of the people who attended last month’s policy meeting. The frontrunner is “Economic Freedom” and everyone is praying he doesn’t change his mind, the person said.

Source: Bloomberg

Forbes: Putin the world’s most powerful man

No one would call Vladimir Putin weak. As the undisputed popular head of an energy-rich, nuclear-tipped state, he is certainly a powerful man.

For the second year running, Forbes has voted the Russian president as the world’s most powerful person, followed by U.S. President Barack Obama and Chinese leader Xi Jinping.

Forbes’ annual ranking of the World’s 72 Most Powerful People (one for every 100 million people on the planet) is based on voting by a panel of FORBES editors, who consider financial resources, scope and use of power, and the number of people they impact.

Forbes insists that it is “an evaluation of hard power” and their list wields the kind of power that shapes and bends the world, and moves people, markets, armies and minds.

Russia’s president remarked recently on the futility of attempts to rewrite history and “recode society” during his meeting with historians and history teachers. The president visited the State Central Museum of Contemporary History of Russia and its Civil War (1918-1922) rarities exhibition.

He reminded historians that history is a science and not merely a political tool.

Obama has had to face a humiliating week after Democrats lost control of the Senate and suffered big losses in the House and governors’ races across the US as a result of his unpopular policies.

Rather than accept the election results as a repudiation of his own administration, the president said voters were disenchanted with Washington as a whole, perhaps explaining the Russian leader’s worldwide popularity.

American soft power has been eroded by costly wars against former friendly allies.

Obama’s advisers acknowledged that Tuesday’s outcome was far worse than what they expected.

Putin’s soft power working smoothly

Russian “soft power” aimed at promoting the country’s image abroad is working and President Vladimir Putin is its key element, a report presented by the Center for Political Analysis at TASS on Friday says.

“Russian soft power is working smoothly. Russian President Vladimir Putin was and remains its main force. His personality, charisma, international authority, business and political qualities allow the country, which he represents, to successfully position itself in the consciousness of both ordinary people and also foreign elites,” the report reads.

The term “soft power” is a form of political power which is capable of achieving the needed results by attracting and arousing sympathy compared with “hard power” that implies coercion.

The authors of the Russian Soft Power report said in the 1990s Russia almost suspended its effort to improve the public opinion abroad. The importance of working with foreign mass media came to the forefront when Putin became the country’s leader in 2000.

When the political crisis hit the former Soviet country and Russia’s neighbor Ukraine earlier this year, Moscow already possessed “its own system of information influence,” the report says.

The report cites the results of various opinion polls conducted in the United States, Europe, China and other countries, which showed that Europeans and Americans opposed their countries’ interference in the Ukrainian conflict.

“Europeans and Americans believe that only Vladimir Putin can resolve it,” according to the report.

Among those sympathizing with Putin and Russia are the representatives of practically all the political forces — both right-wing, centrist and left-wing parties, radicals, “wise men,” street activists and politicians integrated into political system.

Vladimir Putin is the leader of the moral world

Washington has declared Russia, China, India, Brazil and other parts of South America, Iran, and South Africa to be enemies

Dear Friends,

Vladimir Putin’s remarks at the 11th meeting of the Valdai International Discussion Club are worth more than a link in my latest column. These are the remarks of a humanitarian political leader, the like of which the world has not seen in my lifetime. Compare Putin to the corrupt war criminal in the White House or to his puppets in office in Germany, UK, France, Japan, Canada, Australia, and you will see the difference between a criminal clique and a leader striving for a humane and livable world in which the interests of all peoples are respected.

In a sane Western society, Putin’s statements would have been reproduced in full and discussions organized with remarks from experts such as Stephen F. Cohen. Choruses of approval would have been heard on television and read in the print media. But, of course, nothing like this is possible in a country whose rulers claim that it is the “exceptional” and “indispensable” country with an extra-legal right to hegemony over the world. As far as Washington and its prostitute media, named “presstitutes” by the trends specialist Gerald Celente, are concerned, no country counts except Washington. “You are with us or against us,” which means “you are our vassals or our enemies.” This means that Washington has declared Russia, China, India, Brazil and other parts of South America, Iran, and South Africa to be enemies.

This is a big chunk of the world for a bankrupt country, hated by its vassal populations and many of its own subjects, that has not won a war since it defeated tiny Japan in 1945 by using nuclear weapons, the only use of such terrible weapons in world history.

As an American, try to image any known American politician, or for that matter any professor at Harvard, Princeton, Yale, or Stanford capable of giving an address to an educated discussion group of the quality of Putin’s remarks. Try to find any American politician capable of responding precisely and directly to questions instead of employing evasion.

No one can read Putin’s remarks without concluding that Putin is the leader of the world.

In my opinion, Putin is such a towering figure that Washington has him marked for assassination. The CIA will use one of the Muslim terrorists that the CIA supports inside Russia. Unlike an American president, who dares not move among the people openly, Putin is not kept remote from the people. Putin is at ease with the Russian people and mingles among them. This makes him an easy target for the CIA to use a Chechnya terrorist, a Jihadist suicide bomber, or the traditional “lone nut” to assassinate Putin.

The immoral, wicked, and declining West is incapable of producing leadership of Putin’s quality. Having defamed Putin, assassinating him will cause little comment in the Western media.

Here are Putin’s remarkable remarks:

Meeting of the Valdai International Discussion Club
24 October 2014, Sochi

Vladimir Putin took part in the final plenary meeting of the Valdai International Discussion Club’s XI session. The meeting’s theme is The World Order: New Rules or a Game without Rules.
This year, 108 experts, historians and political analysts from 25 countries, including 62 foreign participants, took part in the club’s work.

The plenary meeting summed up the club’s work over the previous three days, which concentrated on analysing the factors eroding the current system of institutions and norms of international law.

PRESIDENT OF RUSSIA VLADIMIR PUTIN: Colleagues, ladies and gentlemen, friends, it is a pleasure to welcome you to the XI meeting of the Valdai International Discussion Club.

It was mentioned already that the club has new co-organisers this year. They include Russian non-governmental organisations, expert groups and leading universities. The idea was also raised of broadening the discussions to include not just issues related to Russia itself but also global politics and the economy.

n organisation and content will bolster the club’s influence as a leading discussion and expert forum. At the same time, I hope the ‘Valdai spirit’ will remain – this free and open atmosphere and chance to express all manner of very different and frank opinions.

Let me say in this respect that I will also not let you down and will speak directly and frankly. Some of what I say might seem a bit too harsh, but if we do not speak directly and honestly about what we really think, then there is little point in even meeting in this way. It would be better in that case just to keep to diplomatic get-togethers, where no one says anything of real sense and, recalling the words of one famous diplomat, you realise that diplomats have tongues so as not to speak the truth.

We get together for other reasons. We get together so as to talk frankly with each other. We need to be direct and blunt today not so as to trade barbs, but so as to attempt to get to the bottom of what is actually happening in the world, try to understand why the world is becoming less safe and more unpredictable, and why the risks are increasing everywhere around us.
Today’s discussion took place under the theme: New Rules or a Game without Rules. I think that this formula accurately describes the historic turning point we have reached today and the choice we all face. There is nothing new of course in the idea that the world is changing very fast. I know this is something you have spoken about at the discussions today. It is certainly hard not to notice the dramatic transformations in global politics and the economy, public life, and in industry, information and social technologies.

Let me ask you right now to forgive me if I end up repeating what some of the discussion’s participants have already said. It’s practically impossible to avoid. You have already held detailed discussions, but I will set out my point of view. It will coincide with other participants’ views on some points and differ on others.

As we analyse today’s situation, let us not forget history’s lessons. First of all, changes in the world order – and what we are seeing today are events on this scale – have usually been accompanied by if not global war and conflict, then by chains of intensive local-level conflicts. Second, global politics is above all about economic leadership, issues of war and peace, and the humanitarian dimension, including human rights.

The world is full of contradictions today. We need to be frank in asking each other if we have a reliable safety net in place. Sadly, there is no guarantee and no certainty that the current system of global and regional security is able to protect us from upheavals. This system has become seriously weakened, fragmented and deformed. The international and regional political, economic, and cultural cooperation organisations are also going through difficult times.

Yes, many of the mechanisms we have for ensuring the world order were created quite a long time ago now, including and above all in the period immediately following World War II. Let me stress that the solidity of the system created back then rested not only on the balance of power and the rights of the victor countries, but on the fact that this system’s ‘founding fathers’ had respect for each other, did not try to put the squeeze on others, but attempted to reach agreements.

The main thing is that this system needs to develop, and despite its various shortcomings, needs to at least be capable of keeping the world’s current problems within certain limits and regulating the intensity of the natural competition between countries.

It is my conviction that we could not take this mechanism of checks and balances that we built over the last decades, sometimes with such effort and difficulty, and simply tear it apart without building anything in its place. Otherwise we would be left with no instruments other than brute force.

What we needed to do was to carry out a rational reconstruction and adapt it the new realities in the system of international relations.

But the United States, having declared itself the winner of the Cold War, saw no need for this. Instead of establishing a new balance of power, essential for maintaining order and stability, they took steps that threw the system into sharp and deep imbalance.

The Cold War ended, but it did not end with the signing of a peace treaty with clear and transparent agreements on respecting existing rules or creating new rules and standards. This created the impression that the so-called ‘victors’ in the Cold War had decided to pressure events and reshape the world to suit their own needs and interests. If the existing system of international relations, international law and the checks and balances in place got in the way of these aims, this system was declared worthless, outdated and in need of immediate demolition.

Pardon the analogy, but this is the way nouveaux riches behave when they suddenly end up with a great fortune, in this case, in the shape of world leadership and domination. Instead of managing their wealth wisely, for their own benefit too of course, I think they have committed many follies.

We have entered a period of differing interpretations and deliberate silences in world politics. International law has been forced to retreat over and over by the onslaught of legal nihilism. Objectivity and justice have been sacrificed on the altar of political expediency. Arbitrary interpretations and biased assessments have replaced legal norms. At the same time, total control of the global mass media has made it possible when desired to portray white as black and black as white.

In a situation where you had domination by one country and its allies, or its satellites rather, the search for global solutions often turned into an attempt to impose their own universal recipes. This group’s ambitions grew so big that they started presenting the policies they put together in their corridors of power as the view of the entire international community. But this is not the case.

The very notion of ‘national sovereignty’ became a relative value for most countries. In essence, what was being proposed was the formula: the greater the loyalty towards the world’s sole power centre, the greater this or that ruling regime’s legitimacy.

We will have a free discussion afterwards and I will be happy to answer your questions and would also like to use my right to ask you questions. Let someone try to disprove the arguments that I just set out during the upcoming discussion.

The measures taken against those who refuse to submit are well-known and have been tried and tested many times. They include use of force, economic and propaganda pressure, meddling in domestic affairs, and appeals to a kind of ‘supra-legal’ legitimacy when they need to justify illegal intervention in this or that conflict or toppling inconvenient regimes. Of late, we have increasing evidence too that outright blackmail has been used with regard to a number of leaders. It is not for nothing that ‘big brother’ is spending billions of dollars on keeping the whole world, including its own closest allies, under surveillance.

Let’s ask ourselves, how comfortable are we with this, how safe are we, how happy living in this world, and how fair and rational has it become? Maybe, we have no real reasons to worry, argue and ask awkward questions? Maybe the United States’ exceptional position and the way they are carrying out their leadership really is a blessing for us all, and their meddling in events all around the world is bringing peace, prosperity, progress, growth and democracy, and we should maybe just relax and enjoy it all?

Let me say that this is not the case, absolutely not the case.

A unilateral diktat and imposing one’s own models produces the opposite result. Instead of settling conflicts it leads to their escalation, instead of sovereign and stable states we see the growing spread of chaos, and instead of democracy there is support for a very dubious public ranging from open neo-fascists to Islamic radicals.

Why do they support such people? They do this because they decide to use them as instruments along the way in achieving their goals but then burn their fingers and recoil. I never cease to be amazed by the way that our partners just keep stepping on the same rake, as we say here in Russia, that is to say, make the same mistake over and over.

They once sponsored Islamic extremist movements to fight the Soviet Union. Those groups got their battle experience in Afghanistan and later gave birth to the Taliban and Al-Qaeda. The West if not supported, at least closed its eyes, and, I would say, gave information, political and financial support to international terrorists’ invasion of Russia (we have not forgotten this) and the Central Asian region’s countries. Only after horrific terrorist attacks were committed on US soil itself did the United States wake up to the common threat of terrorism. Let me remind you that we were the first country to support the American people back then, the first to react as friends and partners to the terrible tragedy of September 11.

During my conversations with American and European leaders, I always spoke of the need to fight terrorism together, as a challenge on a global scale. We cannot resign ourselves to and accept this threat, cannot cut it into separate pieces using double standards. Our partners expressed agreement, but a little time passed and we ended up back where we started. First there was the military operation in Iraq, then in Libya, which got pushed to the brink of falling apart. Why was Libya pushed into this situation? Today it is a country in danger of breaking apart and has become a training ground for terrorists.

Only the current Egyptian leadership’s determination and wisdom saved this key Arab country from chaos and having extremists run rampant. In Syria, as in the past, the United States and its allies started directly financing and arming rebels and allowing them to fill their ranks with mercenaries from various countries. Let me ask where do these rebels get their money, arms and military specialists? Where does all this come from? How did the notorious ISIL manage to become such a powerful group, essentially a real armed force?

As for financing sources, today, the money is coming not just from drugs, production of which has increased not just by a few percentage points but many-fold, since the international coalition forces have been present in Afghanistan. You are aware of this. The terrorists are getting money from selling oil too. Oil is produced in territory controlled by the terrorists, who sell it at dumping prices, produce it and transport it. But someone buys this oil, resells it, and makes a profit from it, not thinking about the fact that they are thus financing terrorists who could come sooner or later to their own soil and sow destruction in their own countries.

Where do they get new recruits? In Iraq, after Saddam Hussein was toppled, the state’s institutions, including the army, were left in ruins. We said back then, be very, very careful. You are driving people out into the street, and what will they do there? Don’t forget (rightfully or not) that they were in the leadership of a large regional power, and what are you now turning them into?

What was the result? Tens of thousands of soldiers, officers and former Baath Party activists were turned out into the streets and today have joined the rebels’ ranks. Perhaps this is what explains why the Islamic State group has turned out so effective? In military terms, it is acting very effectively and has some very professional people. Russia warned repeatedly about the dangers of unilateral military actions, intervening in sovereign states’ affairs, and flirting with extremists and radicals. We insisted on having the groups fighting the central Syrian government, above all the Islamic State, included on the lists of terrorist organisations. But did we see any results? We appealed in vain.

We sometimes get the impression that our colleagues and friends are constantly fighting the consequences of their own policies, throw all their effort into addressing the risks they themselves have created, and pay an ever-greater price.

Colleagues, this period of unipolar domination has convincingly demonstrated that having only one power centre does not make global processes more manageable. On the contrary, this kind of unstable construction has shown its inability to fight the real threats such as regional conflicts, terrorism, drug trafficking, religious fanaticism, chauvinism and neo-Nazism. At the same time, it has opened the road wide for inflated national pride, manipulating public opinion and letting the strong bully and suppress the weak.

Essentially, the unipolar world is simply a means of justifying dictatorship over people and countries. The unipolar world turned out too uncomfortable, heavy and unmanageable a burden even for the self-proclaimed leader. Comments along this line were made here just before and I fully agree with this. This is why we see attempts at this new historic stage to recreate a semblance of a quasi-bipolar world as a convenient model for perpetuating American leadership. It does not matter who takes the place of the centre of evil in American propaganda, the USSR’s old place as the main adversary. It could be Iran, as a country seeking to acquire nuclear technology, China, as the world’s biggest economy, or Russia, as a nuclear superpower.

Today, we are seeing new efforts to fragment the world, draw new dividing lines, put together coalitions not built for something but directed against someone, anyone, create the image of an enemy as was the case during the Cold War years, and obtain the right to this leadership, or diktat if you wish. The situation was presented this way during the Cold War. We all understand this and know this. The United States always told its allies: “We have a common enemy, a terrible foe, the centre of evil, and we are defending you, our allies, from this foe, and so we have the right to order you around, force you to sacrifice your political and economic interests and pay your share of the costs for this collective defence, but we will be the ones in charge of it all of course.” In short, we see today attempts in a new and changing world to reproduce the familiar models of global management, and all this so as to guarantee their [the US’] exceptional position and reap political and economic dividends.

But these attempts are increasingly divorced from reality and are in contradiction with the world’s diversity. Steps of this kind inevitably create confrontation and countermeasures and have the opposite effect to the hoped-for goals. We see what happens when politics rashly starts meddling in the economy and the logic of rational decisions gives way to the logic of confrontation that only hurt one’s own economic positions and interests, including national business interests.

Joint economic projects and mutual investment objectively bring countries closer together and help to smooth out current problems in relations between states. But today, the global business community faces unprecedented pressure from Western governments. What business, economic expediency and pragmatism can we speak of when we hear slogans such as “the homeland is in danger”, “the free world is under threat”, and “democracy is in jeopardy”? And so everyone needs to mobilise. That is what a real mobilisation policy looks like.

Sanctions are already undermining the foundations of world trade, the WTO rules and the principle of inviolability of private property. They are dealing a blow to liberal model of globalisation based on markets, freedom and competition, which, let me note, is a model that has primarily benefited precisely the Western countries. And now they risk losing trust as the leaders of globalisation. We have to ask ourselves, why was this necessary? After all, the United States’ prosperity rests in large part on the trust of investors and foreign holders of dollars and US securities. This trust is clearly being undermined and signs of disappointment in the fruits of globalisation are visible now in many countries.

The well-known Cyprus precedent and the politically motivated sanctions have only strengthened the trend towards seeking to bolster economic and financial sovereignty and countries’ or their regional groups’ desire to find ways of protecting themselves from the risks of outside pressure. We already see that more and more countries are looking for ways to become less dependent on the dollar and are setting up alternative financial and payments systems and reserve currencies. I think that our American friends are quite simply cutting the branch they are sitting on. You cannot mix politics and the economy, but this is what is happening now. I have always thought and still think today that politically motivated sanctions were a mistake that will harm everyone, but I am sure that we will come back to this subject later.

We know how these decisions were taken and who was applying the pressure. But let me stress that Russia is not going to get all worked up, get offended or come begging at anyone’s door. Russia is a self-sufficient country. We will work within the foreign economic environment that has taken shape, develop domestic production and technology and act more decisively to carry out transformation. Pressure from outside, as has been the case on past occasions, will only consolidate our society, keep us alert and make us concentrate on our main development goals.

Of course the sanctions are a hindrance. They are trying to hurt us through these sanctions, block our development and push us into political, economic and cultural isolation, force us into backwardness in other words. But let me say yet again that the world is a very different place today. We have no intention of shutting ourselves off from anyone and choosing some kind of closed development road, trying to live in autarky. We are always open to dialogue, including on normalising our economic and political relations. We are counting here on the pragmatic approach and position of business communities in the leading countries.

Some are saying today that Russia is supposedly turning its back on Europe – such words were probably spoken already here too during the discussions – and is looking for new business partners, above all in Asia. Let me say that this is absolutely not the case. Our active policy in the Asian-Pacific region began not just yesterday and not in response to sanctions, but is a policy that we have been following for a good many years now. Like many other countries, including Western countries, we saw that Asia is playing an ever greater role in the world, in the economy and in politics, and there is simply no way we can afford to overlook these developments.

Let me say again that everyone is doing this, and we will do so to, all the more so as a large part of our country is geographically in Asia. Why should we not make use of our competitive advantages in this area? It would be extremely shortsighted not to do so.

Developing economic ties with these countries and carrying out joint integration projects also creates big incentives for our domestic development. Today’s demographic, economic and cultural trends all suggest that dependence on a sole superpower will objectively decrease. This is something that European and American experts have been talking and writing about too.
Perhaps developments in global politics will mirror the developments we are seeing in the global economy, namely, intensive competition for specific niches and frequent change of leaders in specific areas. This is entirely possible.

There is no doubt that humanitarian factors such as education, science, healthcare and culture are playing a greater role in global competition. This also has a big impact on international relations, including because this ‘soft power’ resource will depend to a great extent on real achievements in developing human capital rather than on sophisticated propaganda tricks.
At the same time, the formation of a so-called polycentric world (I would also like to draw attention to this, colleagues) in and of itself does not improve stability; in fact, it is more likely to be the opposite. The goal of reaching global equilibrium is turning into a fairly difficult puzzle, an equation with many unknowns.

So, what is in store for us if we choose not to live by the rules – even if they may be strict and inconvenient – but rather live without any rules at all? And that scenario is entirely possible; we cannot rule it out, given the tensions in the global situation. Many predictions can already be made, taking into account current trends, and unfortunately, they are not optimistic. If we do not create a clear system of mutual commitments and agreements, if we do not build the mechanisms for managing and resolving crisis situations, the symptoms of global anarchy will inevitably grow.
Today, we already see a sharp increase in the likelihood of a whole set of violent conflicts with either direct or indirect participation by the world’s major powers. And the risk factors include not just traditional multinational conflicts, but also the internal instability in separate states, especially when we talk about nations located at the intersections of major states’ geopolitical interests, or on the border of cultural, historical, and economic civilizational continents.

Ukraine, which I’m sure was discussed at length and which we will discuss some more, is one of the example of such sorts of conflicts that affect international power balance, and I think it will certainly not be the last. From here emanates the next real threat of destroying the current system of arms control agreements. And this dangerous process was launched by the United States of America when it unilaterally withdrew from the Anti-Ballistic Missile Treaty in 2002, and then set about and continues today to actively pursue the creation of its global missile defence system.

Colleagues, friends, I want to point out that we did not start this. Once again, we are sliding into the times when, instead of the balance of interests and mutual guarantees, it is fear and the balance of mutual destruction that prevent nations from engaging in direct conflict. In absence of legal and political instruments, arms are once again becoming the focal point of the global agenda; they are used wherever and however, without any UN Security Council sanctions. And if the Security Council refuses to produce such decisions, then it is immediately declared to be an outdated and ineffective instrument.

Many states do not see any other ways of ensuring their sovereignty but to obtain their own bombs. This is extremely dangerous. We insist on continuing talks; we are not only in favour of talks, but insist on continuing talks to reduce nuclear arsenals. The less nuclear weapons we have in the world, the better. And we are ready for the most serious, concrete discussions on nuclear disarmament – but only serious discussions without any double standards.

What do I mean? Today, many types of high-precision weaponry are already close to mass-destruction weapons in terms of their capabilities, and in the event of full renunciation of nuclear weapons or radical reduction of nuclear potential, nations that are leaders in creating and producing high-precision systems will have a clear military advantage. Strategic parity will be disrupted, and this is likely to bring destabilization. The use of a so-called first global pre-emptive strike may become tempting. In short, the risks do not decrease, but intensify.

The next obvious threat is the further escalation of ethnic, religious, and social conflicts. Such conflicts are dangerous not only as such, but also because they create zones of anarchy, lawlessness, and chaos around them, places that are comfortable for terrorists and criminals, where piracy, human trafficking, and drug trafficking flourish.

Incidentally, at the time, our colleagues tried to somehow manage these processes, use regional conflicts and design ‘colour revolutions’ to suit their interests, but the genie escaped the bottle. It looks like the controlled chaos theory fathers themselves do not know what to do with it; there is disarray in their ranks.

We closely follow the discussions by both the ruling elite and the expert community. It is enough to look at the headlines of the Western press over the last year. The same people are called fighters for democracy, and then Islamists; first they write about revolutions and then call them riots and upheavals. The result is obvious: the further expansion of global chaos.

Colleagues, given the global situation, it is time to start agreeing on fundamental things. This is incredibly important and necessary; this is much better than going back to our own corners. The more we all face common problems, the more we find ourselves in the same boat, so to speak. And the logical way out is in cooperation between nations, societies, in finding collective answers to increasing challenges, and in joint risk management. Granted, some of our partners, for some reason, remember this only when it suits their interests.

Practical experience shows that joint answers to challenges are not always a panacea; and we need to understand this. Moreover, in most cases, they are hard to reach; it is not easy to overcome the differences in national interests, the subjectivity of different approaches, particularly when it comes to nations with different cultural and historical traditions. But nevertheless, we have examples when, having common goals and acting based on the same criteria, together we achieved real success.

Let me remind you about solving the problem of chemical weapons in Syria, and the substantive dialogue on the Iranian nuclear programme, as well as our work on North Korean issues, which also has some positive results. Why can’t we use this experience in the future to solve local and global challenges?

What could be the legal, political, and economic basis for a new world order that would allow for stability and security, while encouraging healthy competition, not allowing the formation of new monopolies that hinder development? It is unlikely that someone could provide absolutely exhaustive, ready-made solutions right now. We will need extensive work with participation by a wide range of governments, global businesses, civil society, and such expert platforms as ours.

However, it is obvious that success and real results are only possible if key participants in international affairs can agree on harmonising basic interests, on reasonable self-restraint, and set the example of positive and responsible leadership. We must clearly identify where unilateral actions end and we need to apply multilateral mechanisms, and as part of improving the effectiveness of international law, we must resolve the dilemma between the actions by international community to ensure security and human rights and the principle of national sovereignty and non-interference in the internal affairs of any state.

Those very collisions increasingly lead to arbitrary external interference in complex internal processes, and time and again, they provoke dangerous conflicts between leading global players. The issue of maintaining sovereignty becomes almost paramount in maintaining and strengthening global stability.

Clearly, discussing the criteria for the use of external force is extremely difficult; it is practically impossible to separate it from the interests of particular nations. However, it is far more dangerous when there are no agreements that are clear to everyone, when no clear conditions are set for necessary and legal interference.

I will add that international relations must be based on international law, which itself should rest on moral principles such as justice, equality and truth. Perhaps most important is respect for one’s partners and their interests. This is an obvious formula, but simply following it could radically change the global situation.

I am certain that if there is a will, we can restore the effectiveness of the international and regional institutions system. We do not even need to build anything anew, from the scratch; this is not a “greenfield,” especially since the institutions created after World War II are quite universal and can be given modern substance, adequate to manage the current situation.

This is true of improving the work of the UN, whose central role is irreplaceable, as well as the OSCE, which, over the course of 40 years, has proven to be a necessary mechanism for ensuring security and cooperation in the Euro-Atlantic region. I must say that even now, in trying to resolve the crisis in southeast Ukraine, the OSCE is playing a very positive role.

In light of the fundamental changes in the international environment, the increase in uncontrollability and various threats, we need a new global consensus of responsible forces. It’s not about some local deals or a division of spheres of influence in the spirit of classic diplomacy, or somebody’s complete global domination. I think that we need a new version of interdependence. We should not be afraid of it. On the contrary, this is a good instrument for harmonising positions.

This is particularly relevant given the strengthening and growth of certain regions on the planet, which process objectively requires institutionalisation of such new poles, creating powerful regional organisations and developing rules for their interaction. Cooperation between these centres would seriously add to the stability of global security, policy and economy. But in order to establish such a dialogue, we need to proceed from the assumption that all regional centres and integration projects forming around them need to have equal rights to development, so that they can complement each other and nobody can force them into conflict or opposition artificially. Such destructive actions would break down ties between states, and the states themselves would be subjected to extreme hardship, or perhaps even total destruction.

I would like to remind you of the last year’s events. We have told our American and European partners that hasty backstage decisions, for example, on Ukraine’s association with the EU, are fraught with serious risks to the economy. We didn’t even say anything about politics; we spoke only about the economy, saying that such steps, made without any prior arrangements, touch on the interests of many other nations, including Russia as Ukraine’s main trade partner, and that a wide discussion of the issues is necessary. Incidentally, in this regard, I will remind you that, for example, the talks on Russia’s accession to the WTO lasted 19 years. This was very difficult work, and a certain consensus was reached.

Why am I bringing this up? Because in implementing Ukraine’s association project, our partners would come to us with their goods and services through the back gate, so to speak, and we did not agree to this, nobody asked us about this. We had discussions on all topics related to Ukraine’s association with the EU, persistent discussions, but I want to stress that this was done in an entirely civilised manner, indicating possible problems, showing the obvious reasoning and arguments. Nobody wanted to listen to us and nobody wanted to talk. They simply told us: this is none of your business, point, end of discussion. Instead of a comprehensive but – I stress – civilised dialogue, it all came down to a government overthrow; they plunged the country into chaos, into economic and social collapse, into a civil war with enormous casualties.

Why? When I ask my colleagues why, they no longer have an answer; nobody says anything. That’s it. Everyone’s at a loss, saying it just turned out that way. Those actions should not have been encouraged – it wouldn’t have worked. After all (I already spoke about this), former Ukrainian President Yanukovych signed everything, agreed with everything. Why do it? What was the point? What is this, a civilised way of solving problems? Apparently, those who constantly throw together new ‘colour revolutions’ consider themselves ‘brilliant artists’ and simply cannot stop.

I am certain that the work of integrated associations, the cooperation of regional structures, should be built on a transparent, clear basis; the Eurasian Economic Union’s formation process is a good example of such transparency. The states that are parties to this project informed their partners of their plans in advance, specifying the parameters of our association, the principles of its work, which fully correspond with the World Trade Organisation rules.

I will add that we would also have welcomed the start of a concrete dialogue between the Eurasian and European Union. Incidentally, they have almost completely refused us this as well, and it is also unclear why – what is so scary about it?

And, of course, with such joint work, we would think that we need to engage in dialogue (I spoke about this many times and heard agreement from many of our western partners, at least in Europe) on the need to create a common space for economic and humanitarian cooperation stretching all the way from the Atlantic to the Pacific Ocean.

Colleagues, Russia made its choice. Our priorities are further improving our democratic and open economy institutions, accelerated internal development, taking into account all the positive modern trends in the world, and consolidating society based on traditional values and patriotism.

We have an integration-oriented, positive, peaceful agenda; we are working actively with our colleagues in the Eurasian Economic Union, the Shanghai Cooperation Organisation, BRICS and other partners. This agenda is aimed at developing ties between governments, not dissociating. We are not planning to cobble together any blocs or get involved in an exchange of blows.

The allegations and statements that Russia is trying to establish some sort of empire, encroaching on the sovereignty of its neighbours, are groundless. Russia does not need any kind of special, exclusive place in the world – I want to emphasise this. While respecting the interests of others, we simply want for our own interests to be taken into account and for our position to be respected.
We are well aware that the world has entered an era of changes and global transformations, when we all need a particular degree of caution, the ability to avoid thoughtless steps. In the years after the Cold War, participants in global politics lost these qualities somewhat. Now, we need to remember them. Otherwise, hopes for a peaceful, stable development will be a dangerous illusion, while today’s turmoil will simply serve as a prelude to the collapse of world order.

Yes, of course, I have already said that building a more stable world order is a difficult task. We are talking about long and hard work. We were able to develop rules for interaction after World War II, and we were able to reach an agreement in Helsinki in the 1970s. Our common duty is to resolve this fundamental challenge at this new stage of development.

Thank you very much for your attention.

VLADIMIR PUTIN (commenting on statements by former Prime Minister of France Dominique de Villepin and former Federal Chancellor of Austria Wolfgang Schuessel): I would like to begin by saying that overall I agree with what both Wolfgang and Dominique have said. I fully support everything they said. However, there are a few things I would like to clarify.

I believe Dominique referred to the Ukrainian crisis as the reason for the deterioration in international relations. Naturally, this crisis is a cause, but this is not the principal cause. The crisis in Ukraine is itself a result of a misbalance in international relations.
I have already said in my address why this is happening, and my colleagues have already mentioned it. I can add to this, if necessary. However, primarily this is the outcome of the misbalance in international relations.

As for the issues mentioned by Wolfgang, we will get back to them: we will talk about the elections, if necessary, and about the supply of energy resources to Ukraine and Europe.
However, I would like to respond to the phrase “Wolfgang is an optimist, while life is harder for pessimists.” I already mentioned the old joke we have about a pessimist and an optimist, but I cannot help telling it again. We have this very old joke about a pessimist and an optimist: a pessimist drinks his cognac and says, “It smells of bedbugs,” while an optimist catches a bedbug, crushes it, then sniffs it and says, “A slight whiff of cognac.”

I would rather be the pessimist who drinks cognac than the optimist who sniffs bedbugs. (Laughter)
Though it does seem that optimists have a better time, our common goal is to live a decent life (without overindulging in alcohol). For this purpose, we need to avoid crises, together handle all challenges and threats and build such relations on the global arena that would help us reach these goals.

Later I will be ready to respond to some of the other things mentioned here. Thank you.
BRITISH JOURNALIST SEUMAS MILNE (retranslated from Russian): I would like to ask a two-in-one question.

First, Mr President, do you believe that the actions of Russia in Ukraine and Crimea over the past months were a reaction to rules being broken and are an example of state management without rules? And the other question is: does Russia see these global violations of rules as a signal for changing its position? It has been said here lately that Russia cannot lead in the existing global situation; however, it is demonstrating the qualities of a leader. How would you respond to this?
VLADIMIR PUTIN: I would like to ask you to reword the second part of your question, please. What exactly is your second question?

SEUMAS MILNE (retranslated from Russian): It has been said here that Russia cannot strive for leading positions in the world considering the outcomes of the Soviet Union’s collapse, however it can influence who the leader will be. Is it possible that Russia would alter its position, change its focus, as you mentioned, regarding the Middle East and the issues connected with Iran’s nuclear program me?

VLADIMIR PUTIN: Russia has never altered its position. We are a country with a traditional focus on cooperation and search for joint solutions. This is first.
Second. We do not have any claims to world leadership. The idea that Russia is seeking some sort of exclusivity is false; I said so in my address. We are not demanding a place under the sun; we are simply proceeding from the premise that all participants in international relations should respect each other’s interests. We are ready to respect the interests of our partners, but we expect the same respect for our interests.

We did not change our attitude to the situation in the Middle East, to the Iranian nuclear programme, to the North Korean conflict, to fighting terrorism and crime in general, as well as drug trafficking. We never changed any of our priorities even under the pressure of unfriendly actions on the part of our western partners, who are lead, very obviously in this case, by the United States. We did not even change the terms of the sanctions.

However, here too everything has its limits. I proceed from the idea that it might be possible that external circumstances can force us to alter some of our positions, but so far there have not been any extreme situations of this kind and we have no intention of changing anything. That is the first point.

The second point has to do with our actions in Crimea. I have spoken about this on numerous occasions, but if necessary, I can repeat it. This is Part 2 of Article 1 of the United Nations’ Charter – the right of nations to self-determination. It has all been written down, and not simply as the right to self-determination, but as the goal of the united nations. Read the article carefully.

I do not understand why people living in Crimea do not have this right, just like the people living in, say, Kosovo. This was also mentioned here. Why is it that in one case white is white, while in another the same is called black? We will never agree with this nonsense. That is one thing.
The other very important thing is something nobody mentions, so I would like to draw attention to it. What happened in Crimea? First, there was this anti-state overthrow in Kiev. Whatever anyone may say, I find this obvious – there was an armed seizure of power.

In many parts of the world, people welcomed this, not realising what this could lead to, while in some regions people were frightened that power was seized by extremists, by nationalists and right-wingers including neo-Nazis. People feared for their future and for their families and reacted accordingly. In Crimea, people held a referendum.

I would like to draw your attention to this. It was not by chance that we in Russia stated that there was a referendum. The decision to hold the referendum was made by the legitimate authority of Crimea – its Parliament, elected a few years ago under Ukrainian law prior to all these grave events. This legitimate body of authority declared a referendum, and then based on its results, they adopted a declaration of independence, just as Kosovo did, and turned to the Russian Federation with a request to accept Crimea into the Russian state.

You know, whatever anyone may say and no matter how hard they try to dig something up, this would be very difficult, considering the language of the United Nations court ruling, which clearly states (as applied to the Kosovo precedent) that the decision on self-determination does not require the approval of the supreme authority of a country.

In this connection I always recall what the sages of the past said. You may remember the wonderful saying: Whatever Jupiter is allowed, the Ox is not.

We cannot agree with such an approach. The ox may not be allowed something, but the bear will not even bother to ask permission. Here we consider it the master of the taiga, and I know for sure that it does not intend to move to any other climatic zones – it will not be comfortable there. However, it will not let anyone have its taiga either. I believe this is clear.

What are the problems of the present-day world order? Let us be frank about it, we are all experts here. We talk and talk, we are like diplomats. What happened in the world? There used to be a bipolar system. The Soviet Union collapsed, the power called the Soviet Union ceased to exist.
All the rules governing international relations after World War II were designed for a bipolar world. True, the Soviet Union was referred to as ‘the Upper Volta with missiles’. Maybe so, and there were loads of missiles. Besides, we had such brilliant politicians like Nikita Khrushchev, who hammered the desk with his shoe at the UN. And the whole world, primarily the United States, and NATO thought: this Nikita is best left alone, he might just go and fire a missile, they have lots of them, we should better show some respect for them.

Now that the Soviet Union is gone, what is the situation and what are the temptations? There is no need to take into account Russia’s views, it is very dependent, it has gone through transformation during the collapse of the Soviet Union, and we can do whatever we like, disregarding all rules and regulations.

This is exactly what is happening. Dominique here mentioned Iraq, Libya, Afghanistan and Yugoslavia before that. Was this really all handled within the framework of international law? Do not tell us those fairy-tales.

This means that some can ignore everything, while we cannot protect the interests of the Russian-speaking and Russian population of Crimea. This will not happen.

I would like everyone to understand this. We need to get rid of this temptation and attempts to arrange the world to one’s liking, and to create a balanced system of interests and relations that has long been prescribed in the world, we only have to show some respect.

As I have already said, we understand that the world has changed, and we are ready to take heed of it and adjust this system accordingly, but we will never allow anyone to completely ignore our interests.

Does Russia aim for any leading role? We don’t need to be a superpower; this would only be an extra load for us. I have already mentioned the taiga: it is immense, illimitable, and just to develop our territories we need plenty of time, energy and resources.

We have no need of getting involved in things, of ordering others around, but we want others to stay out of our affairs as well and to stop pretending they rule the world. That is all. If there is an area where Russia could be a leader – it is in asserting the norms of international law.
QUESTION: The peaceful process between the Palestinians and Israelis has completely collapsed. The United States never let the quartet work properly. At the same time, the growth of illegal Israeli settlements on the occupied territories renders impossible the creation of a Palestinian state. We have recently witnessed a very severe attack on the Gaza Strip. What is Russia’s attitude to this tense situation in the Middle East? And what do you think of the developments in Syria?

One remark for Mr Villepin as well. You spoke of humiliation. What can be more humiliating than the occupation that Palestine has been experiencing all these years?

VLADIMIR PUTIN: Regarding Palestine and the Israeli conflict. It is easy for me to speak about this because, first, I have to say and I believe everyone can see that our relations with Israel have transformed seriously in the past decade. I am referring to the fact that a large number of people from the former Soviet Union live in Israel and we cannot remain indifferent to their fate. At the same time, we have traditional relations with the Arab world, specifically with Palestine. Moreover, the Soviet Union, and Russia is its legal successor, has recognised Palestinian statehood. We are not changing anything here.

Finally, regarding the settlements. We share the views of the main participants in international relations. We consider this a mistake. I have already said this to our Israeli partners. I believe this is an obstacle to normal relations and I strongly expect that the practice itself will be stopped and the entire process of a peaceful settlement will return to its legal course based on agreement.

We proceed from the fact that that Middle East conflict is one of the primary causes of destabilisation not only in the region, but also in the world at large. Humiliation of any people living in the area, or anywhere else in the world is clearly a source of destabilisation and should be done away with. Naturally, this should be done using such means and measures that would be acceptable for all the participants in the process and for all those living in the area.
This is a very complicated process, but Russia is ready to use every means it has for this settlement, including its good relations with the parties to this conflict.

DIRECTOR, KIEV CENTER FOR POLITICAL AND CONFLICT STUDIES MIKHAIL POGREBINSKY: Mr President, I have come from Ukraine. For the first time in 70 years, it is going through very hard times. My question has to do with the possibility of a settlement. In this connection, I would like to go back in history. You mentioned that there was a moment when a trilateral format was under consideration: Russia-Ukraine-Europe. Back then, Europe did not agree to it, after which a series of tragic events took place, including the loss of Crimea, the death of thousands of people and so forth.

Recently, Europe together with Ukraine and Russia agreed that this format is possible after all; moreover, a corresponding resolution was passed. At that moment, there was hope that Russia together with Europe and Ukraine would manage to reach agreement and could become the restorer of peace in Ukraine. What happened next? What happened between Moscow and Brussels, Moscow and Berlin – because now the situation seems completely insane? It is unclear what this might lead to. What do you think happened to Europe?

VLADIMIR PUTIN: You know, what happened can be described as nothing happened. Agreements were reached, but neither side complied with them in full. However, full compliance by both sides might be impossible.

For instance, Ukrainian army units were supposed to leave certain locations where they were stationed prior to the Minsk agreements, while the militia army was supposed to leave certain settlements they were holding prior to these agreements. However, neither is the Ukrainian army withdrawing from the locations they should leave, nor is the militia army withdrawing from the settlements they have to move out of, referring, and I will be frank now – to the fact that their families remain there (I mean the militia) and they fear for their safety. Their families, their wives and children live there. This is a serious humanitarian factor.

We are ready to make every effort to ensure the implementation of the Minsk agreements. I would like to take advantage of your question to stress Russia’s position: we are in favour of complete compliance with the Minsk agreements by both sides.

What is the problem? In my view, the key problem is that we do not see the desire on the part of our partners in Kiev, primarily the authorities, to resolve the issue of relations with the country’s southeast peacefully, through negotiations. We keep seeing the same thing in various forms: suppression by force. It all began with Maidan, when they decided to suppress Yanukovych by force. They succeeded and raised this wave of nationalism and then it all transformed into some nationalistic battalions.

When people in southeast Ukraine did not like it, they tried to elect their own bodies of government and management and they were arrested and taken to prison in Kiev at night. Then, when people saw this happening and took to arms, instead of stopping and finally resorting to peaceful dialogue, they sent troops there, with tanks and aircraft.

Incidentally, the global community keeps silent, as if it does not see any of this, as if there is no such thing as ‘disproportionate use of force’. They suddenly forgot all about it. I remember all the frenzy around when we had a complicated situation in the Caucasus. I would hear one and the same thing every day. No more such words today, no more ‘disproportionate use of force’. And that’s while cluster bombs and even tactical weapons are being used.

You see, under the circumstances, it is very difficult for us in Russia to arrange work with people in southeast Ukraine in a way that would induce them to fully comply with all the agreements. They keep saying that the authorities in Kiev do not fully comply with the agreements either.
However, there is no other way. I would like to stress that we are for the full implementation of the agreements by both parties, and the most important thing I want to say – and I want everyone to hear that – if, God forbid, anyone is again tempted to use force for the final settlement of the situation in southeast Ukraine, this will bring the situation to a complete deadlock.

In my view, there is still a chance to reach agreement. Yes, Wolfgang spoke about this, I understood him. He spoke of the upcoming elections in Ukraine and in the southeast of the country. We know it and we are constantly discussing it. Just this morning I had another discussion with the Chancellor of Germany about it. The Minsk agreements do stipulate that elections in the southeast should be held in coordination with Ukrainian legislation, not under Ukrainian law, but in coordination with it.

This was done on purpose, because nobody in the southeast wants to hold elections in line with Ukrainian law. Why? How can this be done, when there is shooting every day, people get killed on both sides and they have to hold elections under Ukrainian law? The war should finally stop and the troops should be withdrawn. You see? Once this is achieved, we can start considering any kind of rapprochement or cooperation. Until this happens, it is hard to talk about anything else.

They spoke of the date of the elections in the southeast, but few know that there has been an agreement that elections in southeast Ukraine should be held by November 3. Later, the date was amended in the corresponding law, without consulting anyone, without consulting with the southeast. The elections were set for December 7, but nobody talked to them. Therefore, the people in the southeast say, “See, they cheated us again, and it will always be this way.”

You can argue over this any way you like. The most important thing is to immediately stop the war and move the troops away. If Ukraine wants to keep its territorial integrity, and this is something we want as well, they need to understand that there is no sense in holding on to some village or other – this is pointless. The idea is to stop the bloodshed and to start normal dialogue, to build relations based on this dialogue and restore at least some communication, primarily in the economy, and gradually other things will follow. I believe this is what should be achieved first and then we can move on.

PROFESSOR OF POLITICAL SCIENCE, DIRECTOR OF THE CENTER FOR GOVERNANCE AND PUBLIC POLICY AT CARLETON UNIVERSITY (OTTAWA) PIOTR DUTKIEWICZ: Mr President, if I may I would like to go back to the issue of Crimea, because it is of key importance for both the East and the West. I would like to ask you to give us your picture of the events that lead to it, specifically why you made this decision. Was it possible to do things differently? How did you do it? There are important details – how Russia did it inside Crimea. Finally, how do you see the consequences of this decision for Russia, for Ukraine, for Europe and for the normative world order? I am asking this because I believe millions of people would like to hear your personal reconstruction of those events and of the way you made the decision.

VLADIMIR PUTIN: I do not know how many times I spoke about this, but I will do it again.
On February 21, Viktor Yanukovych signed the well-known documents with the opposition. Foreign ministers of three European countries signed their names under this agreement as guarantors of its implementation.

In the evening of February 21, President Obama called me and we discussed these issues and how we would assist in the implementation of these agreements. Russia undertook certain obligations. I heard that my American colleague was also ready to undertake some obligations. This was the evening of the 21st. On the same day, President Yanukovych called me to say he signed the agreement, the situation had stabilized and he was going to a conference in Kharkov. I will not conceal the fact that I expressed my concern: how was it possible to leave the capital in this situation. He replied that he found it possible because there was the document signed with the opposition and guaranteed by foreign ministers of European countries.

I will tell you more, I told him I was not sure everything would be fine, but it was for him to decide. He was the president, he knew the situation, and he knew better what to do. “In any case, I do not think you should withdraw the law enforcement forces from Kiev,” I told him. He said he understood. Then he left and gave orders to withdraw all the law enforcement troops from Kiev. Nice move, of course.

We all know what happened in Kiev. On the following day, despite all our telephone conversations, despite the signatures of the foreign ministers, as soon as Yanukovych left Kiev his administration was taken over by force along with the government building. On the same day, they shot at the cortege of Ukraine’s Prosecutor General, wounding one of his security guards.

Yanukovych called me and said he would like us to meet to talk it over. I agreed. Eventually we agreed to meet in Rostov because it was closer and he did not want to go too far. I was ready to fly to Rostov. However, it turned out he could not go even there. They were beginning to use force against him already, holding him at gunpoint. They were not quite sure where to go.

I will not conceal it; we helped him move to Crimea, where he stayed for a few days. That was when Crimea was still part of Ukraine. However, the situation in Kiev was developing very rapidly and violently, we know what happened, though the broad public may not know – people were killed, they were burned alive there. They came into the office of the Party of Regions, seized the technical workers and killed them, burned them alive in the basement. Under those circumstances, there was no way he could return to Kiev. Everybody forgot about the agreements with the opposition signed by foreign ministers and about our telephone conversations. Yes, I will tell you frankly that he asked us to help him get to Russia, which we did. That was all.

Seeing these developments, people in Crimea almost immediately took to arms and asked us for help in arranging the events they intended to hold. I will be frank; we used our Armed Forces to block Ukrainian units stationed in Crimea, but not to force anyone to take part in the elections. This is impossible, you are all grown people, and you understand it. How could we do it? Lead people to polling stations at gunpoint?

People went to vote as if it were a celebration, everybody knows this, and they all voted, even the Crimean Tatars. There were fewer Crimean Tatars, but the overall vote was high. While the turnout in Crimea in general was about 96 or 94 percent, a smaller number of Crimean Tatars showed up. However 97 percent of them voted ‘yes’. Why? Because those who did not want it did not come to the polling stations, and those who did voted ‘yes’.

I already spoke of the legal side of the matter. The Crimean Parliament met and voted in favour of the referendum. Here again, how could anyone say that several dozen people were dragged to parliament to vote? This never happened and it was impossible: if anyone did not want to vote they would get on a train or plane, or their car and be gone.

They all came and voted for the referendum, and then the people came and voted in favour of joining Russia, that is all. How will this influence international relations? We can see what is happening; however if we refrain from using so-called double standards and accept that all people have equal rights, it would have no influence at all. We have to admit the right of those people to self-determination.

Link to this page: http://eng.news.kremlin.ru/news/23137

Washington is defaming Putin

The issue of manipulation of news by intelligence services has been in the news recently with revelations that the CIA and German Secret Service (GSS) have long-running programs to influence how media executives and top journalists convey and interpret the news, including direct cash payments.

Here is a translation of Putin’s address at Valdai.

At the Valdai International Discussion Club meeting in Sochi, Russia’s President Putin correctly and justifiably denounced Washington for destabilizing the world in order to serve its own narrow and selfish interest and the interests of the private interest groups that control Washington at the expense of the rest of the world. It is about time a world leader denounced the thuggish neocon regime in Washington. Putin described Washington’s double standards with the Roman phrase: “What is allowed for God [the US] is not allowed for cattle [the rest of the world].”

RT reports on Putin’s address here.

RIA Novotsi reports here.

Curiously, the Russian media has not, at this time of writing, produced an English translation of Putin’s full remarks. Perhaps the Russian media do not realize the importance of Putin’s words. Too much of the Russian media is owned by foreign interests who use the access to Russian readers to attack and discredit the Russian government. It is amazing that the Russian government allows Washington’s propaganda within its own ranks. Perhaps Moscow accepts Washington’s propaganda among Russians in order to protect the broadcasts in the US of RT, RIA, and Voice of Russia. But the balance is uneven. The Russian broadcasts in the West report otherwise unreported news; they do not defame America.

See also:

Putin: world leaders blackmailed.

Putin: US escalates worldwide conflict.

German MP: sanctions without proof.

I did not see any reporting of Putin’s address in the US print and TV media. Clearly in the US there is an absence of public discussion of US foreign policy and foreign reaction to it. A country in which propaganda and silence rule out awareness and public discussion is not a democracy regardless of what it calls itself.

Washington long ago learned the dark art of silencing truth with defamation. Washington used defamation to overthrow Iran’s elected leader, Mossadegh in 1953, to overthrow Congo’s prime minister Patrice Lumumba in 1960, to overthrow Guatemala’s President Arbenz in 1954, to overthrow Venezuela’s President Hugo Chevez in 2002, a coup that was cancelled by the Venezuelan people and military who threw out Washington’s stooge replacement and reinstalled Chavez, to overthrow Ukraine’s elected President Yanukovych in 2013, to overthrow Honduras President Manuel Zelaya in 2009 , to overthrow in 2013 Mohamed Morsi, president of the first democratically elected government in Egypt’s history, to overthrow Gaddafi in Libya, Saddam Hussein in Iraq, in ongoing efforts to overthrow Assad in Syria and the government of Iran, and in failed attempts to overthrow Indonesia’s Sukarno, Ho Chi Minh in Vietnam, and Castro in Cuba.

Today Washington’s target is Vladimir Putin. This is the height of folly and hubris. Putin’s public support far exceeds that of any American president in history. Currently, the level of public support for the Obama regime and the US Congress is far too low to be compatible with a functioning democracy. If the US is actually a democracy, it is the most dysfunctional democracy in world history. Practically no one, except the powerful private interest groups who own Washington, supports the US government. Everyone else despises Washington.

As the result of 13 years of murderous destruction of life and property in the Middle East and Africa, a dysfunctional and collapsing US economy, and a display of unrivaled arrogance, Washington has destroyed America’s soft power. Abroad only the deluded few and those paid by US-financed NGOs still have a good opinion of the United States.

In all world polls, the US ranks as the greatest threat to world peace. Washington has made our country a despised nation, and we the people have done nothing about it.

You would never know this from the US print or TV media or even from most of the UK and Western European media. As I reported on October 16, Udo Ulfkotte, a former editor of one of Germany’s most important newspapers, the Frankfurter Allgemeine Zeitung, has written a best-selling book in which he reports that the CIA owns everyone of significance in the major European media. In his own words Udo Ulfkotte says that he was “taught to lie, to betray and not to tell the truth to the public.”

As a former Wall Street Journal editor, Business Week columnist, columnist for the Scripps Howard News Service, columnist for a German magazine and French and Italian newspapers, I observed and experienced the gradual impoundment of any dissent from Washington’s line. It became clear that the path to journalism success in the West was to lie for the Establishment in Washington, largely a private establishment along with the dark off-budget “security” agencies bolstered by the neoconservative ideology of US world hegemony.

Much of Russian media and Putin’s advisors are fully aware of Washington’s media campaign to defame President Vladimir Putin.  The internet site Russia Insider today asked the pertinent question: “Is the CIA Running a Defamation Campaign Against Putin?” As Russia Insider makes clear, the answer is most certainly.

Click the URL above and view the front pages of the UK Sun, Daily Mirror, and Daily Express. I would bet that these are front pages designed in Washington or Langley and are in fact paid ads by the CIA or National Endowment for Democracy or by one of the Republican or Democrat organizations that sponsor Washington’s overseas propaganda.

Of course, these UK rags can be dismissed as sensational junk comparable to the US versions that are for sale at grocery store checkout counters–”movie star abducted by aliens in UFO.” So scroll down the page of the above URL and look at the covers of Newsweek and The Economist. Once these were respected publications. Today I would bet that no one reads them and that they are dependent on CIA subsidies for their existance. Nevertheless, they impact the European, Canadian, Australian, and Japanese media and no doubt the media of other countries on the borders of the US empire. A number of gullible fools still think that America has a free press.

Be sure to notice this section of the report from Russia Insider:

“The issue of manipulation of news by intelligence services has been in the news recently with revelations that the CIA and German Secret Service (GSS) have long-running programs to influence how media executives and top journalists convey and interpret the news, including direct cash payments.

“Here are some examples they point to:

Portraying him [Putin] as a scheming dictator trying to rebuild a repressive empire.
Claiming he personally ordered the murder of a number of journalists, and personally ordered a KGB defector to be murdered with radiation poisoning.
Frequently citing unsubstantiated rumors he is having an affair with a famous gymnast.
Allegations that he has stashed away billions for his personal benefit, without providing evidence.
Recent article in newsweek claiming he leads a luxurious and lazy lifestyle, sleeping late.
Recent article in NYT focusing on a supposed personal arrogance.
Hillary Clinton mentioning in speech after speech that he is a bad guy, a bully, that one must confront him forcefully.
Frequently using pejoratives to describe his person – “a jerk and a thug” (Thomas Friedman this week in the NYT)
Mis-quoting him on his regret about the collapse of the Soviet Union.
Articles about a supposed super-luxury villa built for him in southern Russia.
The over-the top headlines in the western media (they were worst of all in Germany) portraying him personally responsible for murdering the victims of MH17.
And soft stuff – magazine covers making him look sinister, monstrous, etc.”

Be sure to read the interview with Saker, which is at the bottom of the article:

Every day readers ask me what they as individuals can do. Some possibly are government trolls who hope I will answer “overthrow the government” so that I can be arrested as a terrorist. My answer to the question is that people are powerless until enough of them are informed. If people become informed and will take a stand, then the people can force the government back under their control. If this does not or cannot happen, democracy in America is dead, and our life as a free people protected by the Constitution and law against the power of the state is finished.

Possibly America is already finished and will now finish the rest of the world in its insane neoconservative drive to establish Washington’s hegemony over the entire world. Russia and China are not going to submit to being Washington’s vassals and India had enough of being a colony under Great Britain. If the crazed hegemons in Washington persist, nuclear war will be the outcome.

Putin visits Berlusconi

Russian President Vladimir Putin perhaps couldn’t resist an invite from his Italian chum, former Premier Silvio Berlusconi, in the early hours of Friday to his mansion in Milan, according to the WSJ.

A Russian presidential spokesman said Mr. Putin visited “his old friend” Mr. Berlusconi following an invite from the Italian politician. Mr. Berlusconi heads Italy’s biggest opposition party.

President Putin, 62, must have felt the need to relax after his meeting with Ms. Merkel at 1.36 a.m. CET on Friday. He drove off with a large police escort, which included dark limousines, to Mr. Berlusconi’s house and stayed there until roughly 3 a.m.

Putin is in Italy for peace talks with European Union leaders after Ukraine threatened the flow of natural gas. The government in Kiev wants to divert fuel for domestic use as it cannot pay for gas, Bloomberg reported.

“There are big transit risks,” Putin said yesterday in Belgrade, Serbia. If Russia sees its Ukrainian partners “are starting to siphon off our gas from the export pipeline network, we will respond by reducing flows by the amount stolen.”

Italy is the major terminal for South Stream.

The Italian EU presidency is in favour of the Russian pipeline, South Stream, which would circumvent Ukraine to bring gas to south-east Europe.

“We think South Stream should go ahead, as it would improve the diversification of gas routes to Europe,” Italy’s state secretary for EU affairs Sandro Gozi said in July during a press event in Brussels.

He echoed statements made by Italian foreign minister Federica Mogherini who visited Moscow in the same month and met with her Russian counterpart.

South Stream would deprive Ukraine of transit revenues from the gas pipelines that cross its territory and bring about 80 percent of Russian gas exports to EU countries.

It would also enable it to cut off supplies to Ukraine to exert political pressure, without affecting its EU gas clients.

Michael Gonchar, a former executive at Ukraine’s gas distribution firm, Naftogaz, told EUobserver, that, together with Nord Stream, Russia’s recently-built pipeline to Germany, South Stream would give Moscow “a 100 percent monopoly on shipments of gas to Europe from the east”.

He added that it would make it less likely that the EU will ever build a gas pipeline to the Caspian Sea, the so-called Southern Corridor, to diversify supplies.

Farage’s EFDD group collapses

The Europe of Freedom and Direct Democracy (EFDD) group in the European Parliament, headed by UKIP leader Nigel Farage, has been disbanded following the defection of a Latvian MEP.

The EFDD has existed for three months, including the August break.

If the EFDD can find a new MEP from a country not already in the group, it could re-form. The UK, the Czech Republic, Italy, France, Lithuania and Sweden are already represented in the group.

If the group is unable to re-form it could create a vacuum for Le Pen to restart her efforts to create a group, which she had planned to name the the ‘European Alliance for Freedom’.

Other groups in the Parliament welcomed the development. Manfred Weber, the leader of the centre-right European Peoples Party (EPP), called it “the first defeat for Eurosceptics”

A spokesperson for the EFDD group did not return calls for comment. All staff working for the EFDD group will lose their jobs unless the group can re-form.

Parliamentary groups must have at least 25 MEPs from seven different member states in order to be officially recognised by the Parliament. Iveta Grigule was the only Latvian MEP in the group, and her departure means that the EFDD does not have representation from enough member states. The group’s dissolution was officially announced today at a meeting of the conference of presidents (the group leaders).

The group was formed by UK Independence Party (UKIP) leader Farage in 2009 under the name Europe of Freedom and Democracy. Most of its MEPs came from UKIP, with a handful from six other countries. It managed to stay intact for the full 2009-14 term.

Facing competition from Marine Le Pen’s efforts to create a new right-wing group in the Parliament, UKIP joined forces with the anti-establishment Five Star Movement in Italy and changed the group’s name, adding the word ‘direct’. In the new configuration, the 17 Italian MEPs shared the spotlight with UKIP’s 24 MEPs, and it is now co-led by Farage and Five Star MEP David Borrelli.

Grigule’s office said they were not yet aware of the reason for the defection. It may be related to the government-formation process in Latvia. Grigule is from the Union of Greens and Farmers party and there are ongoing talks about who is joining the government. The EFDD is seen as being pro-Putin and her membership in it may not have been palatable in a domestic context.

Learn more about the Five Star – UKIP alliance in this video interview with MEP Fabio Massimo Castaldo.

“Radicals and populists are utterly divided,” he said on Twitter. “No constructive work for citizens. Good that EFDD is no longer playing an official role.”

Catherine Bearder, the one British Liberal Democrats MEP left in the European Parliament after the party lost 10 seats in this year’s election, said it was “not surprising that UKIP has lost friends and alienated people in the European Parliament.” She said the development will make Farage a backbench MEP in the European Parliament, much like Douglas Carswell, who for the first time won a seat for UKIP in the British Parliament last week.

“Just like his new MP, Nigel Farage will now have to shout from the back benches – that is if he actually bothers to turn up,” she said.

Source: European Voice

In the hope that Washington hears

In an interview today with Politika, a Serbian newspaper, Russia’s president, Vladimir Putin, said that it is futile and dangerous for the US and its European puppets to blackmail Russia and that the Exceptional Nation and its vassals should consider the risks that are inherent in aggressive disputes between countries heavily armed with nuclear weapons.

Putin noted that Obama took a hostile attitude toward Russia in Obama’s UN speech to the General Assembly on September 24 when Obama declared Russia to be one of the three threats to the world along with the Islamic State and ebola.

President Putin said that unilateral and punitive actions taken against Russia can provoke a crisis, and that if Washington’s purpose is to”isolate our country, it is an absurd and illusory goal.”

Here are some of President Putin’s direct quotes:

“How can we talk about de-escalation in Ukraine while the decisions on new sanctions are introduced almost simultaneously with the agreements on the peace process?”

“Together with the sanctions against entire sectors of our economy, this approach can be called nothing but hostile.”

“We hope that our partners will realize the futility of attempts to blackmail Russia and remember what consequences discord between major nuclear powers could bring for strategic stability.”

If we don’t all die from nuclear blasts, radiation, and nuclear winter, it will be because of the humanity and common sense–both of which are missing in Washington–of the President of Russia.

Look around you. The economies and stock markets of Western civilization are in retreat. Stupid and incompetent public authorities have brought ebola into America. And what is Washington doing? The energies of the Exceptional Government are focused on combating the Islamic State, a creature created by Washington itself, and on demonizing Russia.

Has any country, anywhere on the fact of the earth, at any period of history been so totally misruled as the United States?

Americans need to understand that their government is not merely incompetent and immoral, but that it is evil. Washington hides behind moral language but is itself devoid of moral conscience. There is no evil of which Washington is incapable. Those who support Washington support evil.

Paul Craig Roberts served as an Assistant Secretary of the Treasury in the Reagan Administration. He was associate editor and columnist for The Wall Street Journal and columnist for Business Week and the Scripps Howard News Service. In 1992 he received the Warren Brookes Award for Excellence in Journalism. In 1993 the Forbes Media Guide ranked him as one of the top seven journalists in the United States. He is also chairman of The Institute for Political Economy.

Putin stresses importance of unblocking South Stream

It is important to unblock the situation around the South Stream gas pipeline that will make a weighty contribution to Europe’s energy security, Vladimir Putin said on Wednesday in an interview with the Serbian newspaper Politika.

“I feel confident this project will contribute considerably to the comprehensive energy security of Europe,” he said. “Everyone stands to gain from it – Russia and the European consumers including Serbia as well.

The problem of gas transit via Ukraine is still in place and its obvious solution is to diversify gas supply routes, Putin said.

“If we speak about further prospects of Russian gas exports to Europe, obviously, the problem of transit via the Ukrainian territory still exists,” he said. “One of the evident solutions is to diversify supplies routes.”

He stressed that Russia was ready to “continue constructive talks on those subjects”.

Also Putin hopes the European Commission (EC) will soon settle the issue of using the OPAL gas pipeline to full capacity.

“We hope that the European Commission will finally settle the issue of the full-capacity use of the OPAL gas pipeline,” he said in an interview with newspaper Politika.

South Stream gas pipeline project is expected to bring new investment to Serbia and to beef up its energy security, believes Russian President Vladimir Putin.

He said it on Wednesday in an interview with the Serbian daily Politika on the eve of his official visit to Belgrade.

“Implementation of the South Stream project should bring in no less than 2 billion to Serbia in the form of new investment and to beef up its energy security considerably,” Putin said.

South Stream is a global infrastructural project steered by Russia’s major producer and exporter of natural gas, OAO Gazprom. The pipeline that is destined to have a throughput capacity of 63 billion cubic meters /bcm/ will stretch across the floor of the Black Sea to reach the countries of Southern and Central Europe.

Its land-surface part will cross the territories of Bulgaria, Serbia, Hungary, Slovenia, and Austria.

In autumn 2013, the European Commission launched what it called an antitrust investigation targeting the South Stream, which it said stood at variance with the norms of the EU’s “third energy package”.

Earlier on Wednesday, Putin’s aide Yuri Ushakov said the South Stream project would come under discussion at the talks in Belgrade and preparations for building the Serbian section of the future pipeline were underway.

“The Serbs are making it clear that implementation of the project without consent from Brussels will be impossible in principle although they are fully ready for this /implementation/ and the project is of big interest for them,” Ushakov said.

Russian President Vladimir Putin hopes that Russian-Serbian trade will reach 2 billion dollars this year.

He said that a free trade regime existing between the two countries was contributing to steady development of Russian-Serbian economic ties.
“Our reciprocal trade turnover grew by 15% to reach 1.97 billion dollars in 2013. It grew by another 16.5% to reach 1.2 billion dollars in the first half of 2014. We hope to reach the figure of 2 billion dollars this year” Putin stressed.

Positive dynamics can be seen in the sphere of investments. The total volume of Russian capital investments in Serbia has exceeded 3 billion dollars, the bulk of which was channeled into the strategically important energy sector, Putin told Politika.

“The Naftna Industrija Srbije (NIS) oil company is a graphic example of our successful cooperation. It was a loss-making company that has turned into the main donor to the Serbian state budget,” Putin stressed.

The Russian head of state also said that the Russian Railways Company and the Russian credit support were enabling Serbia to modernize its railway infrastructure.

“I am glad that Serbian businessmen are active conquering the Russian market. For example, they are supplying quality agrarian and industrial products,” Putin stressed.

Earlier this month, Serbia suggested introducing a free trade regime for food products. According to Serbian Foreign Minister Ivica Dacic, Russia is thinking of lifting import duties for sugar, cigarettes, alcohol and poultry meat. The Russian Agriculture Ministry is considering a possibility of granting preferences to agricultural imports from Serbia.

Russia continues to regard Europeans as partners despite statements from Brussels, Russian foreign minister Sergei Lavrov said.

Source: ItarTASS

Happy birthday President Putin!

Russian President Vladimir Putin will celebrate his birthday on October 7 in the Siberian taiga, a vast forested area in the northern regions of Russia covering hundreds of thousands of square miles, Presidential spokesman Dmitry Peskov told journalists on Monday.

“Putin has booked a holiday for tomorrow. Tonight he will fly over to Siberia, to the Siberian taiga, 300-400 kilometers away from the nearest town or village, where he will relax on his birthday,” Peskov said.

Peskov added that no “official meetings” were planned for Russian leader’s birthday.

“Most likely, everyone will send their best wishes to the President tomorrow. Although I cannot tell you who he will be with, because I do not know,” Peskov said.

“Everyone who can, will be able to reach him by phone. Also everyone who wants to will be able to send telegrams, just like they do every year. We receive a huge number of letters, best wishes, telegrams, etc.,” Peskov commented.

When journalists asked the Presidential spokesman, why Putin decided to take time-off on his birthday for the first time, Peskov said that “everything is evolving… this year he decided to spend it this way.”

“You know that in the past his birthdays were busy with official meetings, you know this year his timetable is not simply tight, but extremely tight, sometimes he gets close to a 24-hour-long busy schedule with a very large area to travel,” Peskov explained.

Vladimir Putin was born on October 7, 1952 in Saint Petersburg (formerly Leningrad, in the Russian Soviet Federative Socialist Republic). On Tuesday, the Russian leader will celebrate his 62nd birthday.

Washington’s War Against Russia

The new sanctions against Russia announced by Washington and Europe do not make sense as merely economic measures. I would be surprised if Russian oil and military industries were dependent on European capital markets in a meaningful way. Such a dependence would indicate a failure in Russian strategic thinking. The Russian companies should be able to secure adequate financing from Russian Banks or from the Russian government. If foreign loans are needed, Russia can borrow from China.

If critical Russian industries are dependent on European capital markets, the sanctions will help Russia by forcing an end to this debilitating dependence. Russia should not be dependent on the West in any way.

The real question is the purpose of the sanctions. My conclusion is that the purpose of the sanctions is to break up and undermine Europe’s economic and political relations with Russia. When international relations are intentionally undermined, war can be the result. Washington will continue to push sanctions against Russia until Russia shows Europe that there is a heavy cost of serving as Washington’s tool.

Russia needs to break up this process of ever more sanctions in order to derail the drive toward war. In my opinion this is easy for Russia to do. Russia can tell Europe that since you do not like our oil companies, you must not like our gas company, so we are turning off the gas. Or Russia can tell Europe, we don’t sell natural gas to NATO members, or Russia can say we will continue to sell you gas, but you must pay in rubles, not in dollars. This would have the additional benefit of increasing the demand for rubles in exchange markets, thus making it harder for speculators and the US government to drive down the ruble.

The real danger to Russia is a continuation of its low-key, moderate response to the sanctions. This is a response that encourages more sanctions. To stop the sanctions, Russia needs to show Europe that the sanctions have serious costs for Europe.

A Russian response to Washington would be to stop selling to the US the Russian rocket engines on which the US satellite program is dependent. This could leave the US without rockets for its satellites for six years between the period 2016 and 2022.

Possibly the Russian government is worried about losing the earnings from gas and rocket engine sales. However, Europe cannot do without the gas and would quickly abandon its participation in the sanctions, so no gas revenues would be lost. The Americans are going to develop their own rocket engine anyhow, so the Russian sales of rocket engines to the US have at most about 6 more years. But the US with an impaired satellite program for six years would mean a great relief to the entire world from the American spy program. It would also make difficult US military aggression against Russia during the period.

Russian President Putin and his government have been very low-key and unprovocative in responding to the sanctions and to the trouble that Washington continues to cause for Russia in Ukraine. The low-key Russian behavior can be understood as a strategy for undermining Washington’s use of Europe against Russia by presenting a non-threatening face to Europe. However, another explanation is the presence inside Russia of a fifth column that represents Washington’s interest and constrains the power of the Russian government.

Strelkov describes the American fifth column here.

Saker describes the two power groups inside Russia as the Eurasian Sovereignists who stand behind Putin and an independent Russia and the Atlantic Integrationists, the fifth column that works to incorporate Russia in Europe under US hegemony or, failing that, to help Washington break up the Russian Federation into several weaker countries that are too weak to constrain Washington’s use of power.

Russia’s Atlantic Integrationists share the Brzezinski and Wolfowitz doctrines with Washington. These doctrines are the basis for US foreign policy. The doctrines define the goal of US foreign policy in terms of preventing the rise of other countries, such as Russia and China, that could limit Washington’s hegemony.

Washington is in a position to exploit the tensions between these two Russian power groups. Washington’s fifth column is not best positioned to prevail. However, Washington can at least count on the struggle causing dissent within the Eurasian Sovereignists over Putin’s low-key response to Western provocations. Some of this dissent can be seen in Strelkov’s defense of Russia.

Russia, thinking the Cold War ended with the collapse of the Soviet Union, opened herself to the West. Russian governments trusted the West, and as a result of Russia’s gullibility, the West was able to purchase numerous allies among the Russian elites. Depending on the alignment of the media, these compromised elites are capable of assassinating Putin and attempting a coup.

One would think that by now Putin’s government would recognize the danger and arrest the main elements of the fifth column, followed by trial and execution for treason, in order that Russia can stand united against the Western Threat. If Putin does not take this step, it means either than Putin does not recognize the extent of the threat or that his government lacks the power to protect Russia from the internal threat.

It is clear that Putin has not achieved any respite for his government from the West’s propaganda and economic assault by refusing to defend the Donbass area from Ukrainian attack and by pressuring the Donetsk Republic into a ceasefire when its military forces were on the verge of a major defeat of the disintegrating Ukrainian army. All Putin has achieved is to open himself to criticism among his supporters for betraying the Russians in eastern and southern Ukraine.

The European politicians and elites are so deeply in Washington’s pocket that Putin has little chance of courting Europe with a Russian show of good will. I have never believed that this strategy could work, although I would be pleased if it did. Only a direct threat todeprive Europe of energy has a chance of producing within Europe a foreign policy independent of Washington. I do not think Europe can survive a cutoff of the Russian natural gas. Europe would abandon sanctions in order to guarantee the flow of gas. If Washington’s hold on Europe is so powerful that Europe is willing to endure a major disruption of its energy supply as the price of its vassalage, Russia will know to cease its futile attempts at diplomacy and to prepare for war.

If China sits on the sidelines, China will be the next isolated target and will receive the same treatment.

Washington intends to defeat both countries, either through internal dissent or through war.

Nothing said by Obama or any member of his government or any influential voice in Congress has signaled any pullback in Washington’s drive for hegemony over the world.

The US economy is now dependent on looting and plunder, and Washington’s hegemony is essential to this corrupted form of capitalism.

Dr. Paul Craig Roberts was Assistant Secretary of the Treasury for Economic Policy and associate editor of the Wall Street Journal. He was columnist for Business Week, Scripps Howard News Service, and Creators Syndicate. He has had many university appointments. His internet columns have attracted a worldwide following. Roberts’ latest books are The Failure of Laissez Faire Capitalism and Economic Dissolution of the West and How America Was Lost.

Total CEO says sanctions against Russia a mistake

Implementation of sanctions against Russia is a mistake, French oil and gas company Total Chief Executive, Christophe de Margerie said in his interview to Sueddeutsche Zeitung newspaper.

“We cannot let them persuade us that Russia is our enemy. Our energy supply depends on this country. If Americans, based on the historical reasons and internal political motives, want to escalate the conflict, then it is their choice. But we, Europeans, have to deal with this crisis in a different way, not painting everything in black and white only,” de Margerie said as quoted by the Sueddeutsche Zeitung.

De Margerie also stated that he does not believe that Russian President Vladimir Putin plans to annex Ukraine.

Over the past few months, the United States and the European Union introduced several rounds of targeted sanctions against the Russian economy, unjustifiably blaming Moscow for meddling in Ukraine’s internal affairs.

As the Ukrainian crisis escalated, the United States persuaded its allies to add Russian individuals and entities to their own blacklists.

Earlier today, US Deputy National Security Adviser Ben Rhodes said that US President Barack Obama and leaders of several European countries agreed that more sanctions should be imposed on Russia.

Russia has repeatedly referred to the language of sanctions “counterproductive,” saying that such measures “threaten international peace and stability.”

Source: RIA Novosti

Kiev, militia agree on ceasefire

Kiev officials and representatives of the two self-proclaimed republics in southeastern Ukraine have agreed to a ceasefire, as the contact group met behind closed doors in Belarus.

Ukrainian President Petro Poroshenko has confirmed the ceasefire agreement on his Twitter account.

The truce agreement comes into force starting 6 pm local time (15:00 GMT).

The president has ordered to cease fire starting at the time stated in the protocol.

“I give the order to the chief of the General staff of the Ukrainian Armed Forces to cease fire, starting from 18.00 [local time] on September 5,” Poroshenko’s statement says.

Poroshenko then called on both the Ukrainian Foreign Ministry and the OSCE to provide international monitoring of compliance with the bilateral ceasefire.

“We must do everything possible and impossible to stop bloodshed and put an end to people’s suffering,” the president said in a statement posted on his official website.

Poroshenko expressed hope that both sides would comply with the ceasefire agreement.

The self-proclaimed Donetsk People’s Republic earlier confirmed the ceasefire agreement on its official Twitter account.

Both Donetsk and Lugansk have said they are ready to lay down arms starting from 15:00GMT.

Representatives of the rebel forces have said they will obey the ceasefire if Kiev follows suit.

“Most of the points of the protocol correspond with our demands,” Lugansk’s leader Igor Plotnitsky said.

“However, the ceasefire does not mean a shift from our course of breaking away from Ukraine. This is a compulsory measure,” he said.

The OSCE’s Heidi Tagliavini has welcomed the agreement saying “it is good news.”

She has revealed that the protocol consists of 12 points, and “the ceasefire is the chief one.”

The participants in the talks will prepare another document – a memorandum on settling the situation in Ukraine, a Donetsk representative said.

The two sides accompanied by representatives of Russia and the OSCE were meeting in the Belorussian capital, Minsk, in an attempt to end the bloodshed in eastern Ukraine.

In their recent phone call on September 3, the presidents of Russia and Ukraine, Vladimir Putin and Petro Poroshenko, showed a willingness to find an agreement to resolve the months-long conflict in the southeastern Ukraine.

Following the conversation with his counterpart, President Putin laid out a seven-point plan that could help find a solution.

Source: RT

Warning: Washington and its NATO, EU vassals are insane

By Paul Craig Roberts.

Herbert E. Meyer, a nutcase who was a special assistant to the CIA director for a period during the Reagan administration, has penned an article calling for Russian President Putin’s assassination. If we have “ to get him out of the Kremlin feet-first with a bullet hole in the back of his head, that would be okay with us.”

As the crazed Meyer illiustrates, the insanity that Washington has released upon the world knows no restraint. Jose Manual Barroso, installed as Washington’s puppet as European Commission President, misrepresented his recent confidential telephone conversation with Russia’s President Putin by telling the media that Putin issued a threat: “If I want to, I can take Kiev in two weeks.”

Clearly, Putin did not issue a threat. A threat would be inconsistent with Putin’s entire unprovocative approach to the strategic threat that Washington and its NATO puppets have brought to Russia in Ukraine. Russia’s permanent representative to the EU, Vladimir Chizhov, said that if Barroso’s lie stands, Russia will make public the full recording of the conversation

Anyone familiar with the disparity between the Ukrainian and Russian militaries knows full well that it would take the Russian military 14 hours, not 14 days, to take all of Ukraine. Just remember what happened to the American and Israeli trained and equipped Georgian Army when Washington set its stupid Georgian puppets on South Ossetia. The American and Israeli trained and equipped Georgian army collapsed under Russian counterattack in 5 hours.

The lie that Washington’s puppet Barroso told was not worthy of a serious person. But where in Europe is there a serious person in power? Nowhere. The few serious people are all out of power. Consider the NATO Secretary General, Anders Rasmussen. He was a prime minister of Denmark who saw he could rise beyond Denmark by serving as Washington’s puppet. As prime minister he strongly supported Washington’s illegal invasion of Iraq, declaring that “we know that Saddam Hussein has weapons of mass destruction.” Of course, the fool didn’t know any such thing, and why would it matter if Iraq did have such weapons. Many countries have weapons of mass destruction.

According to the rule that anyone who serves Washington is elevated, the cipher Rasmussen was elevated.

The problem with elevating unprincipled fools is that they risk the world for their career. Rasmussen has now put the entirety of Eastern and Western Europe at risk of annihilation. Rasmussen has announced the creation of a blitzkrieg spearhead force capable of blitzkrieg attack on Russia. What Washington’s puppet calls “the Readiness Action Plan” is justified as a response to “Russia’s aggressive behavior in Ukraine.”

Rasmussen’s “lightening spearhead force” would be wiped out along with every European capital. What kind of idiot provokes a nuclear superpower in this way?

Rasmussen asserts “Russia’s aggressive behavior” but has no evidence of it. Russia has stood on the sidelines while Washington’s puppet government in Kiev has shelled and bombed civilian housing, hospitals, schools and issued a constant stream of lies against Russia. Russia denied the requests of the now independent eastern and southern provinces of Ukraine, former Russian territories, to be reunited with Russia. As readers know, I regard Putin’s decision as a mistake, but events might prove me wrong and that is OK with me. For now, the fact is that every act of aggressive behavior is the result of the US and EU support of the Kiev nazis. It is the Ukrainian nazi militias that are attacking civilians in the former Russian territories of eastern and southern Ukraine. A number of regular Ukrainian military units have defected to the independent republics.

Yes, nazis. Western Ukraine is the home of the Ukrainian SS division that fought for Hitler. Today the militias organized by the Right Sector and other right-wing political organizations wear the nazi insignia of the Ukrainian SS divisions. These are the people that Washington and the EU support. If the Ukrainian nazis could win against Russia, which they cannot, they would turn on the West, just as has the Washington-funded ISIS that Washington unleashed on Libya and Syria. Now ISIS is remaking the Middle East, and Washington appears helpless.

William Binney, a former high level official in the US National Security Agency, and colleagues from the CIA and military intelligence services have written to German chancellor Merkel advising her to beware of Obama’s lies at the upcoming NATO summit in Wales. The US intelligence officials advise Merkel to remember Iraq’s “weapons of mass destruction” and don’t again be deceived, this time into conflict with Russia.

The question is: who does Merkel represent? Washington or Germany? So far Merkel has represented Washington, not German business interests, not the German people, and not Germany’s interests as a country. Here is a protest in Dresden where a crowd prevents Merkel’s speech with shouts of “kriegstreiber” (warmonger), “liar, liar,” and “no war with Russia.”

My Ph.D. dissertation chairman, who became a high Pentagon official assigned to wind down the Vietnam war, in answer to my question about how Washington gets Europeans to always do what Washington wants replied: “Money, we give them money.” “Foreign aid?” I asked. “No, we give the European political leaders bagfuls of money. They are for sale, We bought them. They report to us.” Perhaps this explains Tony Blair’s $50 million fortune one year out of office.

The Western media, the largest brothel on earth, is desperate for war. The editorial board of the Washington Post, now a trophy newspaper in the hands of Amazon.com’s billionaire owner, ran an editorial on August 31 that projected all of Washington’s (and the Post’s) lies upon Putin.

Amazon.com’s owner might know how to market products on the Internet, but he is hopeless when it comes to running a newspaper. His editors at the Washington Post have made his trophy a worldwide laughing stock.

Here are the mindless accusations against Putin from the editors that the billionaire put in charge of his trophy newspaper:

Putin, bitterly resentful at the loss of power from the Soviet collapse, has “resurrected the tyranny of the Big Lie” in order to reconstitute the Russian Empire.

“Russian sponsored militias in Ukraine” are responsible for the “shoot-down of the Malaysian airliner in July.” The “Russian state-controlled media” lied and misrepresented to the Russian people the party responsible for downing the airliner.

“In the absence of independent and free reporting, few Russians realize that Russian soldiers and armaments are in action in eastern Ukraine, albeit (as in Crimea) in uniforms and vehicles stripped of their identifying insignia and license plates. With no free media, Russians are left to fend for themselves against a firestorm of falsehoods.”

“Mr. Putin’s Big Lie shows why it is important to support a free press where it still exists and outlets like Radio Free Europe that bring the truth to people who need it.”

As a former Wall Street Journal editor, I can say with complete confidence that such extraordinary propaganda posing as an editorial would have resulted in the immediate firing of all concerned. In my days on the Congressional staff, the Washington Post was regarded as a CIA asset. Today the Post has sunk far below this status.

I have seen much media propaganda in my day, but this Washington Post editorial takes the cake. The editorial shows that either the editorial writers are completely ignorant or they are completely corrupt and also assume that their readers are completely ignorant. If Russian military units were in action in eastern Ukraine, the situation would be precisely as Alexander Zakharchenko and Dmitry Orlov describe. Ukraine would no longer exist. Ukraine would again be part of Russia where it was for centuries prior to Washington taking advantage of the Soviet collapse to tear Ukraine away from Russia.

The question before us is: how long will Russia’s patience last with the West’s enormous lies and provocations? No matter how restrained Russia is, Russia is accused of the worst. Therefore, Russia might as well inflict the worst.

At what point will the Russian government decide that Washington’s mendacity, and that of its European puppets and corrupt Western media, render hopeless Russia’s efforts to resolve the situation with diplomacy and unprovocative behavior? As Russia is constantly accused falsely of invading Ukraine, when will the Russian government decide that as Western propaganda has established that Russia has invaded Ukraine and has imposed sanctions and new military bases on Russia’s borders because of the alleged invasion, Russia might as well go ahead and rid themselves of the problem Washington has brought to Russia and invade Ukraine?

There is nothing that NATO could do about it if Russia decides that Ukraine in Washington’s hands is too much of a strategic threat to Russia and reincorporates Ukraine again into Russia where it has resided for centuries. Any NATO force sent would start a war that NATO can’t win. The German population, remembering the consequences of war with Russia, would overthrow Washington’s puppet government. NATO and the EU would collapse as Germany departed the absurd construct that serves Washington’s interest at the expense of Europe.

Once this happens, the world will have peace. But not until.

For those who care to understand how the land of lies works, Washington’s puppet government in Kiev attributes the defeat of its military forces by the Donetsk Republic to the presence in the Donetsk army of Russian military units. This is the propaganda that has gone out to western Ukraine and to the presstitute western media, a collection of whores that echo the propaganda without any investigation whatsoever. However, Kiev has a different story for the IMF. Kiev cannot receive IMF money with which to pay off its Western creditors if Ukraine is at war. Therefore, Ukraine tells the IMF the opposite story: Russia has not attacked Ukraine.

The Western media remains uninterested in any facts. Just the lies. Only the lies.

The Washington Post, the New York Times, CNN, Fox “news,” Die Welt, the French press, the British press all plead: “please Washington give us more sensational lies that we can trumpet. Our circulation needs it. Who cares about war and the human race if only we can regain financial stability.”

Justin Raimondo warns that Washington is planting the seeds of World War III.


Dr. Paul Craig Roberts was Assistant Secretary of the Treasury for Economic Policy and associate editor of the Wall Street Journal. He was columnist for Business Week, Scripps Howard News Service, and Creators Syndicate. He has had many university appointments. His internet columns have attracted a worldwide following. Roberts’ latest books are The Failure of Laissez Faire Capitalism and Economic Dissolution of the West and How America Was Lost.