UK rich list includes two South Africans

Two South Africans have made it into the respected Sunday Times Rich List released on Sunday, with Ukrainian businessman Len Blavatnik taking the top spot with a personal wealth of £13.17bn (R240bn).

South-African born Swazi business mogul Nathan Kirsh claimed 17th position and is said to be worth £5.06bn (R93bn), while Nicky Oppenheimer and family made it to 19th position with £4.55bn (R83.6bn) in their wealth coffers.

Blavatnik, an investor in several industries including oil, petrochemicals and media and who was in 4th place last year, added £3bn to his fortune to oust brothers Sri and Gopi Hinduja.

Despite adding £1.1bn to their fortune, the brothers, who run a multinational conglomerate of the same name, fell £0.17bn short of meeting Blavatnik’s fortune.

The index found that Britain’s 1 000 richest individuals and families now have a combined fortune of over £547bn, more than double the wealth of ten years ago.

It is also no longer easy for ordinary millionaires or even multi-millionaires to make it into the top 1 000, as people now need to be worth at least £100m to make the list. That is £15m more than last year’s minimum, while 18 years ago you only needed £15m to cut the grade, according to The Sunday Times Rich List.

Other famous names featuring on the list include Lakshmi Mittal and family (7th; £9.2bn), owners of ArcerlorMittal, Roman Abramovich (10th; £7.29bn), the Russian oligarch who owns Chelsea Football Club, and Richard Branson (20th; £4.1bn), the British entrepreneur behind the Virgin brand. Lakshmi is also a major stakeholder in Queens Park Rangers Football Club.

Formula One driver Lewis Hamilton was named Britain’s richest sportsman in the separate Sunday Times Sport Rich List and is said to be worth £88m, according to AFP.

He was followed by Manchester United and England footballer Wayne Rooney on £72m and fellow racing driver Jenson Button on £71m.

Chelsea manager Jose Mourinho was named the richest manager in British sport with a £40m fortune.

The top 20 on The Sunday Times Rich List are:

1. Len Blavatnik (£13.17bn)
2. Sri and Gopi Hinduja (£13bn)
3. Galen and George Weston and family (£11bn)
4. Alisher Usmanov (£9.8bn)
5. David and Simon Reuben (£9.7bn)
6. Ernesto and Kirsty Bertarelli (£9.45bn)
7. Lakshmi Mittal and family (£9.2bn)
8. Kirsten and Jorn Rausing (£8.7bn)
9. The Duke of Westminster (£8.56bn)
10. Roman Abramovich (£7.29bn)
11. John Fredriksen and family (£7.24bn)
12. Charlene de Carvalho-Heineken and Michel de Carvalho (£7.145bn)
13. Sir David and Sir Frederick Barclay (£6.5bn)
14. Hans Rausing and family (£6.4bn)
15. Mohamed Bin Issa Al Jaber and family (£5.935bn)
16. Carrie and Francois Perrodo and family (£5.8bn)
17. Nathan Kirsh (£5.06bn)
18. Earl Cadogan and family (£4.8bn)
19. Nicky Oppenheimer and family (£4.55bn)
20. Sir Richard Branson and family (£4.1bn)

Nemtsov’s role in plundering Russia

Murdered opposition figure Boris Nemtsov apparently liked to accuse Putin of things he himself was busy with.

“Russia is rapidly becoming a colony of China. Russia is losing sovereignty. This is the main point of modern foreign policy of the Kremlin” Nemtsov ranted about Putin’s stance towards China.

He had clearly forgotten that back in 1997 as Deputy Prime Minister he personally initiated a peculiar diplomacy towards Beijing, arriving a day ahead of President Yeltsin to finalize the hushed agreement on the gas pipeline from the Kovyktinskij gas field in Irkutsk and from Western Siberia to China.

His signature is actually on the agreement between the governments of Russia and China for the transportation of crude oil from Eastern Siberia to China. Nemtsov even participated in the negotiations on the demarcation of the Russian-Chinese border, which ended with the signing of a disadvantageous treaty for Russia.

After Nemtsov’s direct meddling, many Russians, to their astonishment, ended up on Chinese territory.

And what about the agreement with Japan “about some cooperation in the field of harvesting live marine resources”?

Business publications briefly reported that the Japanese were allowed by Nemtsov to fish in Russian waters without having to worry about strict Russian legislation. After only seven years the damage to Russia was then estimated at $10 billion.

The Deputy Prime Minister also aided the Chechen terrorists. He personally signed an agreement on the transit of oil through Chechnya, through which the militants received about $10 million in excess fees for oil transit from the federal budget.

This instrument of financial support for terrorism from the state worked swimmingly before Putin put an abrupt end to it. The Antlanticist press predictably only howled about human rights violations in Chechnya and remained mum on state sponsored terror.

In one interview Nemtsov admitted that he had agreed to become first Deputy Prime Minister under pressure from Boris Berezovsky’s allies. Nemtsov later denied this, but the jury from the High Court of England came to a different conclusion.

Boris and Boris admittedly had quarreled about a stake in Svyazinvest. Berezovsky wanted to buy it, but Nemtsov sold it to Soros!

In 1998 Nemtsov founded “The National Fund for Regional Policy” for the transfer of money from offshore companies, including TNK and YUKOS of the criminal Mikhail Khodorkovsky. Part of the funds went to Nemtsov.

The loss to the state was estimated at 370 billion rubles. But everything remained on the fringes of the law, since after October 1993, the laws were written by scoundrels for scoundrels, and approved by the cohort of senators whom Nemtsov had joined in December of the same year.

His election to the Council of Federation [Russian Senate] was financed by a businessman with a criminal background, Andrey Klimentyev.

Translated from Russian

The neoconservative threat to international relations

This week I was invited to address an important conference of the Russian Academy of Sciences in Moscow. Scholars from Russia and from around the world, Russian government officials, and the Russian people seek an answer as to why Washington destroyed during the past year the friendly relations between America and Russia that President Reagan and President Gorbachev succeeded in establishing. All of Russia is distressed that Washington alone has destroyed the trust between the two major nuclear powers that had been created during the Reagan-Gorbachev era, trust that had removed the threat of nuclear armageddon. Russians at every level are astonished at the virulent propaganda and lies constantly issuing from Washington and the Western media. Washington’s gratuitous demonization of the Russian president, Vladimir Putin, has rallied the Russian people behind him. Putin has the highest approval rating ever achieved by any leader in my lifetime.

Washington’s reckless and irresponsible destruction of the trust achieved by Reagan and Gorbachev has resurrected the possibility of nuclear war from the grave in which Reagan and Gorbachev buried it. Again, as during the Cold War the specter of nuclear armageddon stalks the earth.

Why did Washington revive the threat of world annihilation? Why is this threat to all of humanity supported by the majority of the US Congress, by the entirety of the presstitute media, and by academics and think-tank inhabitants in the US, such as Motyl and Weiss, about whom I wrote recently?

It was my task to answer this question for the conference. You can read my February 25 and February 26 addresses below. But first you should understand what nuclear war means. You can gain that understanding here:

The Threat Posed to International Relations By The Neoconservative Ideology of American Hegemony,
Address to the 70th Anniversary of the Yalta Conference, Hosted by Institutes of the Russian Academy of Sciences and Moscow State Institute of International Relations, Moscow, February 25, 2015, Hon. Paul Craig Roberts

Colleagues,

What I propose to you is that the current difficulties in the international order are unrelated to Yalta and its consequences, but have their origin in the rise of the neoconservative ideology in the post-Soviet era and its influence on Washington’s foreign policy.

The collapse of the Soviet Union removed the only constraint on Washington’s power to act unilaterally abroad. At that time China’s rise was estimated to require a half century. Suddenly the United States found itself to be the Uni-power, the “world’s only superpower.” Neoconservatives proclaimed “the end of history.”

By the “end of history” neoconservatives mean that the competition between socio-economic-political systems is at an end. History has chosen “American Democratic-Capitalism.” It is Washington’s responsibility to exercise the hegemony over the world given to Washington by History and to bring the world in line with History’s choice of American democratic-capitalism.

In other words, Marx has been proven wrong. The future does not belong to the proletariat but to Washington.

The neoconservative ideology raises the United States to the unique status of being “the exceptional country,” and the American people acquire exalted status as “the indispensable people.”

If a country is “the exceptional country,” it means that all other countries are unexceptional. If a people are “indispensable,” it means other peoples are dispensable. We have seen this attitude at work in Washington’s 14 years of wars of aggression in the Middle East. These wars have left countries destroyed and millions of people dead, maimed, and displaced. Yet Washington continues to speak of its commitment to protect smaller countries from the aggression of larger countries. The explanation for this hypocrisy is that Washington does not regard Washington’s aggression as aggression, but as History’s purpose.

We have also seen this attitude at work in Washington’s disdain for Russia’s national interests and in Washington’s propagandistic response to Russian diplomacy.

The neoconservative ideology requires that Washington maintain its Uni-power status, because this status is necessary for Washington’s hegemony and History’s purpose.

The neoconservative doctrine of US world supremacy is most clearly and concisely stated by Paul Wolfowitz, a leading neoconservative who has held many high positions: Deputy Assistant Secretary of Defense, Director of Policy Planning US Department of State, Assistant Secretary of State, Ambassador to Indonesia, Undersecretary of Defense for Policy, Deputy Secretary of Defense, President of the World Bank.

In 1992 Paul Wolfowitz stated the neoconservative doctrine of American world supremacy:

“Our first objective is to prevent the re-emergence of a new rival, either on the territory of the former Soviet Union or elsewhere, that poses a threat on the order of that posed formerly by the Soviet Union. This is a dominant consideration underlying the new regional defense strategy and requires that we endeavor to prevent any hostile power from dominating a region whose resources would, under consolidated control, be sufficient to generate global power.”

For clarification, a “hostile power” is a country with an independent policy (Russia, China, Iran, and formerly Saddam Hussein, Gaddafi, Assad).

This bold statement struck the traditional American foreign policy establishment as a declaration of American Imperialism. The document was rewritten in order to soften and disguise the blatant assertion of supremacy without changing the intent. These documents are available online, and you can examine them at your convenience.

Softening the language allowed the neoconservatives to rise to foreign policy dominance. The neoconservatives are responsible for the Clinton regime’s attacks on Yugoslavia and Serbia. Neoconservatives, especially Paul Wolfowitz, are responsible for the George W. Bush regime’s invasion of Iraq. The neoconservatives are responsible for the overthrow and murder of Gaddafi in Libya, the assault on Syria, the propaganda against Iran, the drone attacks on Pakistan and Yemen, the color revolutions in former Soviet Republics, the attempted “Green Revolution” in Iran, the coup in Ukraine, and the demonization of Vladimir Putin.

A number of thoughtful Americans suspect that the neoconservatives are responsible for 9/11, as that event gave the neoconservatives the “New Pearl Harbor” that their position papers said was necessary in order to launch their wars for hegemony in the Middle East. 9/11 led directly and instantly to the invasion of Afghanistan, where Washington has been fighting since 2001. Neoconservatives controlled all the important government positions necessary for a “false flag” attack.

Neoconservative Assistant Secretary of State Victoria Nuland, who is married to another neoconservative, Robert Kagan, implemented and oversaw Washington’s coup in Ukraine and chose the new government.

The neoconservatives are highly organized and networked, well-financed, supported by the print and TV media, and backed by the US military/security complex and the Israel Lobby. There is no countervailing power to their influence on US foreign power.

The neoconservative doctrine goes beyond the Brzezinski doctrine, which dissented from Detente and provocatively supported dissidents inside the Soviet empire. Despite its provocative character, the Brzezinski doctrine remained a doctrine of Great Power politics and containment. It is not a doctrine of US world hegemony.

While the neoconservatives were preoccupied for a decade with their wars in the Middle East, creating a US Africa Command, organizing color revolutions, exiting disarmament treaties, surrounding Russia with military bases, and “pivoting to Asia” to surround China with new air and naval bases, Vladimir Putin led Russia back to economic and military competence and successfully asserted an independent Russian foreign policy.

When Russian diplomacy blocked Washington’s planned invasion of Syria and Washington’s planned bombing of Iran, the neoconservatives realized that they had failed the “first objective” of the Wolfowitz Doctrine and had allowed “the re-emergence of a new rival . . . on the territory of the former Soviet Union” with the power to block unilateral action by Washington.

The attack on Russia began. Washington had spent $5 billion over a decade creating non-governmental organizations (NGOs) in Ukraine and cultivating Ukrainian politicians. The NGOs were called into the streets. The extreme nationalists or nazi elements were used to introduce violence, and the elected democratic government was overthrown. The intercepted conversation between Victoria Nuland and the US ambassador in Kiev, in which the two Washington operatives choose the members of the new Ukrainian government, is well known.

If the information that has recently come to me from Armenia and Kyrgyzstan is correct, Washington has financed NGOs and is cultivating politicians in Armenia and the former Soviet Central Asian Republics. If the information is correct, Russia can expect more “color revolutions” or coups in other former territories of the Soviet Union. Perhaps China faces a similar threat in Uyghurstan.

The conflict in Ukraine is often called a “civil war.” This is incorrect. A civil war is when two sides fight for the control of the government. The break-away republics in eastern and southern Ukraine are fighting a war of secession.

Washington would have been happy to use its coup in Ukraine to evict Russia from its Black Sea naval base as this would have been a strategic military achievement. However, Washington is pleased that the “Ukraine crisis” that Washington orchestrated has resulted in the demonization of Vladimir Putin, thus permitting economic sanctions that have disrupted Russia’s economic and political relations with Europe. The sanctions have kept Europe in Washington’s orbit.

Washington has no interest in resolving the Ukrainian situation. The situation can be resolved diplomatically only if Europe can achieve sufficient sovereignty over its foreign policy to act in Europe’s interest instead of Washington’s interest.

The neoconservative doctrine of US world hegemony is a threat to the sovereignty of every country. The doctrine requires subservience to Washington’s leadership and to Washington’s purposes. Independent governments are targeted for destabilization. The Obama regime overthrew the reformist government in Honduras and currently is at work destabilizing Venezuela, Bolivia, Ecuador, and Argentina, and most likely also Armenia and the former Central Asian Soviet Republics.

Yalta and its consequences have to do with Great Power rivalries. But in the neoconservative doctrine, there is only one Great Power–the Uni-power. There are no others, and no others are to be permitted

Therefore, unless a modern foreign policy arises in Washington and displaces the neoconservatives, the future is one of conflict.

It would be a strategic error to dismiss the neoconservative ideology as unrealistic. The doctrine is unrealistic, but it is also the guiding force of US foreign policy and is capable of producing a world war.

In their conflict with Washington’s hegemony, Russia and China are disadvantaged. The success of American propaganda during the Cold War, the large differences between living standards in the US and those in communist lands, overt communist political oppression, at times brutal, and the Soviet collapse created in the minds of many people nonexistent virtues for the United States. As English is the world language and the Western media is cooperative, Washington is able to control explanations regardless of the facts. The ability of Washington to be the aggressor and to blame the victim encourages Washington’s march to more aggression.

This concludes my remarks. Tomorrow I will address whether there are domestic political restraints or economic restraints on the neoconservative ideology.

Paul Craig Roberts, Address to the 70th Anniversary of the Yalta Conference, Moscow, February 26, 2015

Colleagues,

At the plenary session yesterday I addressed the threat that the neoconservative ideology poses to international relations. In this closing session I address whether there are any internal restraints on this policy from the US population and whether there are economic restraints.

Just as 9/11 served to launch Washington’s wars for hegemony in the Middle East, 9/11 served to create the American police state. The Constitution and the civil liberties it protects quickly fell to the accumulation of power in the executive branch that a state of war permitted.

New laws, some clearly pre-prepared such as the PATRIOT Act, executive orders, presidential directives, and Department of Justice memos created an executive authority unaccountable to the US Constitution and to domestic and international law.

Suddenly Americans could be detained indefinitely without cause presented to a court. Habeas corpus, a constitutional protection which prohibits any such detention, has been set aside.

Suddenly people could be tortured into confessions in violation of the right against self-incrimination and in violation of domestic and international laws against torture.

Suddenly Americans and Washington’s closest allies could be spied on indiscriminately without the need of warrants demonstrating cause.

The Obama regime added to the Bush regime’s transgressions the assertion of the right of the executive branch to assassinate US citizens without due process of law.

The police state was organized under a massive new Department of Homeland Security. Almost immediately whistleblower protections, freedom of the press and speech, and protest rights were attacked and reduced.

It was not long before the director of Homeland Security declared that the department’s focus has shifted from Muslim terrorists to “domestic extremists,” an undefined category. Anyone can be swept into this category. Homes of war protesters were raided and grand juries were convened to investigate the protesters. Americans of Arab descent who donated to charities–even charities on the State Department’s approved list–that aided Palestinian children were arrested and sentenced to prison for “providing material support to terrorism.”

All of this and more, including police brutality, has had a chilling effect on protests against the wars and the loss of civil liberty. The rising protests from the American population and from soldiers themselves that eventually forced Washington to end the Vietnam War have been prevented in the 21st century by the erosion of rights, intimidation, loss of mobility (no-fly list), job dismissal, and other heavy-handed actions inconsistent with a government accountable to law and to the people.

In an important sense, the US has emerged from the “war on terror” as an executive branch dictatorship unconstrained by the media and barely, if at all, constrained by Congress and the federal courts. The lawlessness of the executive branch has spread into governments of Washington’s vassal states and into the Federal Reserve, the International Monetary Fund, and the European Central Bank, all of which violate their charters and operate outside their legal powers.

Jobs offshoring destroyed the American industrial and manufacturing unions. Their demise and the current attack on the public employee unions has left the Democratic Party financially dependent on the same organized private interest groups as the Republicans. Both parties now report to the same interest groups. Wall Street, the military/security complex, the Israel Lobby, agribusiness, and the extractive industries (oil, mining, timber) control the government regardless of the party in power. These powerful interests all have a stake in American hegemony.

The message is that the constellation of forces preclude internal political change.

Hegemony’s Archilles heel is the US economy. The fairy tale of American economic recovery supports America’s image as the safe haven, an image that keeps the dollar’s value up, the stock market up, and interest rates down. However, there is no economic information that supports this fairy tale.

Real median household income has not grown for years and is below the levels of the early 1970s. There has been no growth in real retail sales for six years. The labor force is shrinking. The labor force participation rate has declined since 2007 as has the civilian employment to population ratio. The 5.7 percent reported unemployment rate is achieved by not counting discouraged workers as part of the work force. (A discouraged worker is a person who is unable to find a job and has given up looking.)

A second official unemployment rate, which counts short-term (less than one year) discouraged workers and is seldom reported, stands at 11.2 percent. The US government stopped including long-term discouraged workers (discouraged for more than one year) in 1994. If the long-term discouraged are counted, the current unemployment rate in the US stands at 23.2 percent.

The offshoring of American manufacturing and professional service jobs such as software engineering and Information Technology has decimated the middle class. The middle class has not found jobs with incomes comparable to those moved abroad. The labor cost savings from offshoring the jobs to Asia has boosted corporate profits, the performance bonuses of executives and capital gains of shareholders. Thus all income and wealth gains are concentrated in a few hands at the top of the income distribution. The number of billionaires grows as destitution reaches from the lower economic class into the middle class. American university graduates unable to find jobs return to their childhood rooms in their parents’ homes and work as waitresses and bartenders in part-time jobs that will not support an independent existence.

With a large percentage of the young economically unable to form households, residential construction, home furnishings, and home appliances suffer economic weakness. Cars can still be sold only because the purchaser can obtain 100 percent financing in a six-year loan. The lenders sell the loans, which are securitized and sold to gullible investors, just as were the mortgage-backed financial instruments that precipitated the 2007 US financial crash.

None of the problems that created the 2008 recession, and that were created by the 2008 recession, have been addressed. Instead, policymakers have used an expansion of debt and money to paper over the problems. Money and debt have grown much more than US GDP, which raises questions about the value of the US dollar and the credit worthiness of the US government. On July 8, 2014, my colleagues and I pointed out that when correctly measured, US national debt stands at 185 percent of GDP.

This raises the question: Why was the credit rating of Russia, a country with an extremely low ratio of debt to GDP, downgraded and not that of the US? The answer is that the downgrading of Russian credit worthiness was a political act directed against Russia in behalf of US hegemony.

How long can fairy tales and political acts keep the US house of cards standing? A rigged stock market. A rigged interest rate. A rigged dollar exchange value, a rigged and suppressed gold price. The current Western financial system rests on world support for the US dollar and on nothing more.

The problem with neoliberal economics, which pervades all countries, even Russia and China, is that neoliberal economics is a tool of American economic imperialism, as is Globalism. As long as countries targeted by Washington for destabilization support and cling to the American doctrines that enable the destabilization, the targets are defenseless.

If Russia, China, and the BRICS Bank were willing to finance Greece, Italy, and Spain, perhaps those countries could be separated from the EU and NATO. The unraveling of Washington’s empire would

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.

For the illustrated version go here:

Oligarchs, seed companies benefit from land redistribution

The federal government has admitted that national and international companies in Ukraine benefit from EU subsidies and loans. Fertile lands in Ukraine are being transferred to Ukrainian oligarchs and international seed companies, and in return the Kiev government receives international loans.

The inquiry of the parliamentary group of the Left Party, submitted on January 19, 2015, criticizes the ‘land grabbing’, i.e. the ‘landgrab by states and major national and international companies’ in Ukraine.

Concerned citizens are outraged over a planned redistribution of land:

‘In the shadow of the Ukrainian crisis we can observe an alarming transfer of land to Ukrainian oligarchs, but also Western publicly owned agricultural companies and non-Western states. In the past Ukraine was considered a breadbasket of the Soviet Union and thanks to the considerable amount of black earth is known to be particularly fruitful and productive. With 32 million hectares of crop land Ukraine has twice as much crop area as ​​Germany. Ukrainian and foreign agroholdings already control about half of the Ukrainian agricultural land, which is about 17 million hectares. The lessors generate low income due to the low rent payments and are sometimes even paid in kind’.

Seed producers have a strong interest in Ukrainian lands:

‘Ukraine is one of the auspicious growth markets for seed producers Monsanto and DuPont. It is feared that Monsanto exercises great pressure on the authorities in Ukraine to force through its demands for development of production of biotechnology and genetically modified organisms (GMOs). Last year Monsanto invested 140 million to increase the capability for future production’.

German companies also benefit from the ‘land grabbing’:

‘One of the German companies that profit from land grabbing in Eastern Europe, is AGRARIUS AG, founded in 2007 with headquartered in Bad Homburg, which offers ‘investment in farmland’ and services related to the purchase of land. In Hamburg German agricultural CEE GmbH lures with returns of 100 percent in the ‘most interesting agricultural market in the world’, and KTG Agrar SE, also based in Hamburg, advertises organic products because they promise a much higher profit margin’.

International and national companies receive financial, developmental and EU subsidies. In the past ten years agricultural corporations have been increasingly cultivating rapeseed in Ukraine. This is connected with the increased needs of the EU for biofuels. About 90 percent of rape is exported to the EU and processed there. The federal government reported as part of the inquiry that the European Bank for Reconstruction and Development (EBRD) had awarded 2,014 loans to a total of 131 Ukrainian and 55 international agroholdings.

To the question of whether the agricultural concerns DuPont and Monsanto would receive KfW loans for its operations in Ukraine, the federal government was not willing to give a clear answer.

It is stated in the response:

‘The publication of information on granting of credit by the KfW bank group affects trade and business secrets of the concerned companies. The public response to the question of whether and to what extent a company finances its business activities and by which type of loan is generally suitable to give competitors information not only about the financial resources of a company, but also about its strategy and positioning in the market’.

Source: German Economic News

Pussy Riot is porn and oligarch a swindler, says Czech president

The President of the Czech Republic Miloš Zeman said not everyone being called political prisoners had this status.

President Miloš Zeman has responded in a rather unusual way to the call of the son of civil rights activist Natalya Gorbanevskaya to voice his opinion on human rights issues in Russia. Today, he said in the Talks in Lany interview on Czech Radio that not everyone being called political prisoners had this status, referring to disgraced Russian oligarch Mikhail Khodorkovsky.

President Zeman considers Khodorkovsky a swindler, and he called the Russian female punk band Pussy Riot a porno group.

Zeman said he proceeded from the Soviet-era definition of political prisoners, when those people were called prisoners of conscience.

He believes that such people end up in prison for their political views, but that Khodorkovsky and Pussy Riot do not fit into this category.

“They say that in the 1990s, Mr. Khodorkovsky carried plastic bags filled with millions of rubles, and that he obtained some assets just like Mr. Kožený, Mr. Krejcir, Mr. Pir and others did,” Zeman noted.

The Czech president says he has no reason so far to consider Khodorkovsky a political prisoner, although this is a wonderful pretext for cleansing oneself. He instead believes that Khodorkovsky was a swindler. The only thing that Zeman does not like about the Putin regime is that Putin did not imprison other oligarchs together with Khodorkovsky.

The president also lashed out against the Pussy Riot band. As he sees it, this porno band has, at least, been convicted by a criminal court for committing outrages at an Orthodox Church cathedral, although one of its members was in the last stage of pregnancy.

Moreover, the president sarcastically called them ideal political prisoners and commented on the band’s name. The English word “pussy” is a vulgar term denoting a female organ, and the word “riot” means an uprising. The word “pussy” can be found in every one of their songs, he said.

He said that when he comes to Russia for negotiations, he would be ready to defend all real political prisoners.

Ukraine: The IMF’s Big Lie

Waiting for the IMF
Waiting for the IMF

Like government leaders everywhere, Russia’s Vladimir Putin often lies. But when he tells an uncomfortable truth, few people in the US or Europe bother to listen. Take what he said about Ukraine back in 2007, when Time magazine interviewed him as their “Person of the Year.”

The Russians subsidize Ukraine, Putin explained. They sell it natural gas and other energy resources at $3 billion to $5 billion a year below international market prices. At the same time, the US “somehow decided that part of the political elite in Ukraine is pro-American and part is pro-Russian, and they decided to support the ones they consider pro-American, the so-called orange coalition.”

Why, Putin asked, should Russia continue to subsidize Ukraine? “If you want to support someone, you pay for it. Nobody wants to pay.”

Putin had it right. In their proposed economic agreement with Ukrainian president Viktor Yanukovych, the Europeans offered very little money. In their negotiations with him during the Euromaidan protests, they and their allies in Washington continued to offer far less than the estimated $20 billion to $35 billion that the country needed.

In February, about a week before Yanukovych ran away, the Christian Science Monitor summed up the situation. Ukraine’s international currency reserves were falling at a vertiginous rate. The national currency, the hryvnia, had lost value, and the international credit rating agency Fitch had downgraded the country’s sovereign debt. How would Ukraine pay what it owed – primarily to Western banks and Russia’s Gasprom? How would it pay salaries, pensions, and social benefits?

The EU agreement looked to a major infusion of capital from the International Monetary Fund. But that would come only after the Ukrainians agreed to what IMF managing director Christiane Lagarde later called a “profound transformation,” especially of its fiscal policy, monetary policy, and policies on energy.

“Nobody is willing to give economic support, from the United States or from the IMF or from Europe, to an unreformed Ukraine,” US State Department’s Victoria Nuland said in Kiev on February 7.

The Westerners had good reason for being tight-fisted. They knew that the incredibly corrupt Yanukovych and the Ukrainian oligarchs would take the money and stay put. That is how the country’s oligarchic system works, with or without Yanukovych. Most of the new billionaires – including the leading candidate to become the new president, Petro Poroshenko – made their first big money by “privatizing” formerly state-owned enterprises.

“Ukraine’s oligarchs got rich during the privatization sales of former Soviet-owned industries and factories shortly after independence in 1991,” explained the Monitor. “The country’s main industries of mining, metals, chemical production, and energy distribution were snatched up by individuals, who then reaped millions in profits.”

The Monitor did not mention one significant fact. Privatization only came about the way it did with what one academic study called “the support and cajoling of Western donors.” Will foreign meddlers never learn?

Nor did the Western-backed rip-off stop with the original sin. Several analysts tell the same story, none more succinctly than the Monitor. “Many of the oligarchs’ businesses – particularly in the mining, heavy industry, and energy distribution industries – operate in dilapidated, Soviet-era facilities that are extremely energy-inefficient, and heavily dependent on government subsidies.”

In other words, when would-be reformers talk about Ukraine’s corruption, they mean the oligarchic system. Not necessarily personal corruption, but a pervasive systemic corruption.

“Corruption and politics have always had a close relationship in Ukraine,” explains the Monitor. “The oligarchs have benefitted for two decades from close relations with government officials, who have at times turned a blind eye to the activities in exchange for support. At other times, politicians have enabled their oligarch supporters to get richer through key government appointments and a lack of transparency in government contracts.”

Systemic corruption also gobbled up foreign assistance. Ukraine has gotten far more aid than any county in the former Soviet Union, energy specialist Emily Holland told Bloomberg Businessweek. And where has it gone? “Into the pockets of an incredibly corrupt political elite and oligarchs.”

The Russians, with their own oligarchic system, continued to subsidize Ukraine’s energy imports. They also agreed in December to buy $15 billion in Ukrainian Eurobonds, and actually laid out the first $3 billion.

“The economy of Ukraine was going into the wall and was heading for disaster,” the IMF’s Lagarde told PBS Newshour. “Without the support that they were getting from this lifeline that Russian had extended a few months ago, Ukraine was heading nowhere.”

Mounting violence from the protesters, continuing refusal of Brussels and Washington to come up with serious money, and increasing loss of support from the oligarchs convinced Yanukovych to jump ship. Putin responded by stopping the subsidies, which meant raising the price Ukraine had to pay for its energy imports.

Brussels and Washington were left holding the bag, as Putin had suggested they should. So, at warp speed, the IMF and Ukraine’s Western-backed interim government came to terms. The Ukrainians would agree to “profound transformation.” The IMF would give them something between $14 billion and $18 billion over time.

Having worked as a private banker, central banker, and Minister of Economy, Prime Minister Yatsenyuk knew from the start what lay ahead. “To be in this government is to commit political suicide,” he predicted even before the Russians moved into Crimea.

The biggest challenge, he told an investor’s conference in Kiev last week, will be to sell Ukrainians on the need for “painful economic reforms.” Unpegging the hryvnia from the dollar will likely cause a 3% drop in GDP, he explained. Cutting the public sector by 10% will put a lot of people out of work. Losing the Russian subsidy on energy and simultaneously cutting domestic fuel subsidies will greatly increase the cost of living, though the government would provide “some sort of subsidy” to the poorest five to eight million households.

Yats understood how this would breed discontent, especially in the east and south, where people lean more toward Russia. He knew Moscow was telling them that they would enjoy higher living standards in Russia, with higher wages and better pensions and without the austerity that the Kiev government was now offering. “They’re saying: if you go to Russia, you’ll be happy, smiling, and not living in a Western hell.”

That is Russian propaganda, no doubt. But the message rings true, doesn’t it?

Yats has a much bigger problem. He and his Western-backed interim government have gone to great lengths to give the oligarchs even greater power – far more than to the Svoboda Party or followers of Stepan Bandera in Yatsenyuk’s Fatherland Party. In one of their first acts in office, they appointed oligarchs like Ihor Kolomoisky and Serhiy Taruta as governors in Eastern Ukraine, and are already working closely with the country’s likely new president, Petro Poroshenko.

Many in the West welcome “the Chocolate King’s” presence, especially since he was the highest-profile oligarch to support the Euromaidan protest. Western “deciders” have looked kindly on him for years, as journalist Andriy Skumin wrote in March 2012, just after Yanukovych appointed Poroshenko Minister of Trade and Economic Development.

“European circles, blindly searching for any adequate Western-thinking individuals within Ukraine’s establishment, have a favorable opinion of Poroshenko as a person who is reliable, can be charged with introducing changes in Ukraine and ending the deadlock in EU–Ukraine relations” Skumin wrote. But “the preservation of the monopolistic oligarchy will not allow for any European integration or even domestic transformations using European patterns. The only thing that could be done is perhaps only an outward European appearance.”

“Profound transformation” requires killing the oligarchic system, which no one in the game – least of all Poroshenko – has come close to suggesting. This is the IMF’s big lie. Lagarde talks of changing Ukraine, but the people she has entrusted to make those changes are the precisely the ones whose power the country most needs to curtail.

To crib from Vladimir Putin, Poroshenko and his fellow oligarchs are neither pro-American, pro-European, nor pro-Russian. They are not even necessarily pro-Ukrainian, though a bit of patriotic fervor may help them shove austerity down the throats of their underlings. Ukrainian oligarchs, like American plutocrats, are simply pro-themselves.

A veteran of the Berkeley Free Speech Movement and the New Left monthly Ramparts, Steve Weissman lived for many years in London, working as a magazine writer and television producer. He now lives and works in France, where he is researching a new book, “Big Money and the Corporate State: How Global Banks, Corporations, and Speculators Rule and How to Nonviolently Break Their Hold.”

Source: Reader Supported News

Ukrainian leadership to hire US mercenaries to suppress eastern regions

 Igor Kolomoisky has deep pockets
Igor Kolomoisky has deep pockets

A private military company will be in charge of suppressing protest movements in Eastern Ukraine, said a source in the country’s Security Service. According to him, the name of the company is Greystone Limited.

According to a source cited by ITAR-TASS, Ukrainian authorities believe that the Security Service is not able to suppress the protest mood and neutralize the leaders and activists of the pro-Russian movement in the eastern regions. In particular, the source said, the acting president Alexander Turchinov shares this opinion.

“Therefore it was decided to attract foreign mercenaries, who will serve as political police and state security protection, ” said the representative of the Security Service.

He informed that the initiative to attract mercenaries belongs to oligarchs Igor Kolomoisky and Sergei Taruta, appointed governors of Dnepropetrovsk and Donetsk regions.

Not so long ago, during a meeting with Turchinov, a plan to stop the protest movements in the eastern regions was discussed. Kolomoysky noted: “why reinvent the wheel if there are real people who understand how and how much to pay,” said the source.

According to publicly available information Greystone Limited is a structural part of Blackwater, that was later renamed into Academi. According to military experts, the company is associated with the CIA and the US Defense Department. Its employees participated in the war in Afghanistan after the fall of Saddam Hussein’s regime in 2003, the company has appeared in Iraq and became involved in training the new Iraqi armed forces and police, as well as support of the occupation forces.

Source: Voice of Russia, TASS

Ukraine: The coup to install billionaires

oligarchs-ukraineBy Dmitri Menin.

It has long been known that revolutions are carried out by romantics, and their fruits harvested by cynics. But Ukraine has now put them all to shame with the unbelievable speed with which it has rushed from romanticism to cynicism. The final few dazed revolutionaries are still wandering across Maidan Square shouting «Down with thieves and oligarchs!» and «Long live the government of national confidence», while at the same time it is these same oligarchs who are confidently taking up the more substantial government posts, such as multimillionaire Arsen Avakov, for example, who has been appointed Minister of Internal Affairs, as well as getting entire regions to feed on, such as billionaires Ihor Kolomoyskyi in Dnepropetrovsk and Sergey Taruta in Donetsk. The other appointees may have fewer millions at the moment, but they will soon catch up. New changes are also afoot. The New York Times reports that the nomination of Vadim Novinsky, the owner of Smart Holding Company whose net worth is estimated to be USD 1.9 billion, for the post of Kiev’s representative to Crimea is on the cards.

There is a rumour that the author of this ‘forced’ staffing strategy is former prisoner Yulia Tymoshenko, who went to see the people on Maidan Square in a wheelchair, but who was able to stand and walk about in the American Embassy. It turns out that is the place where one can breathe the salubrious air of freedom. It is assumed that the oligarchs, who represent the country’s business elite, will be able to exert a controlling influence over workers in eastern Ukraine. Yuriy Lutsenko, an ally of the magically-cured maiden Yulia Tymoshenko, has said that the reason oligarch’s are being appointed is so that big business can be as involved as possible in protecting the country’s territorial integrity, which will not just make use of public resources, but all available private resources as well. Only now, something tells us that this plan is far from spontaneous and that this is exactly the reason why the turmoil and undertaking took place to begin with. And as far as which citizens are primarily going to be saved by these private and public resources, there is absolutely no doubt at all – the most worthy, which is to say the oligarchs themselves. In essence, the era of the complete triumph of the oligarchy in Ukraine has arrived. Masks are being thrown off even more quickly than any kind of decency allows. There is a terrible hurry before the people befuddled by the incense of the burning tyres finally see the light. By then, however, it may very well be too late.

Simon Jenkins, a journalist for The Guardian, writes: «Romantics sometimes refer to the «wisdom of crowds», but they ignore the capacity of totalitarians to manipulate the masses to their will. They forget the hysteria and cruelty of which programmed crowds are capable. Any upheaval can offer the hope of better times. But history is always a sceptic».

Despair is discernible in the words of one of those who took part in the events in Ukraine: «In any case, good intentions like these without any constructive suggestions to take and create a people’s council, popular control or a people’s government are going to be faced with the fact that foreigners are once again going to end up in these public offices.

«Because the trend of Ukrainian desperation lies in the fact that the vermin we for some reason keep electing to govern us do not come from outer space. They live among us! Which is why any recombination of elements that make up the current system of power, which is represented by a political circle of particularly active, deceitful and cynical vermin, is going to come to nothing».

Another disillusioned revolutionary believes that «Maidan is probably waiting for the next grandiose ‘flop’ – something like what happened in 2005. There is no ‘elite’ in Ukraine that would be able to replace the corrupt domestic bedlam. The ‘Donetsk clan’ has been moved aside, and the ‘liubi druzi’ (the ‘dear friends’ of Viktor Yushchenko) are returning. What’s more, they are clearly hungry for revenge and in the mood for it. These are the same ‘liubi druzi’ that successfully ‘carved’ and ‘sawed’ under Tymoshenko in the previous attempt. Except that while they came to power in 2005 under the slogan ‘the Orange Revolution’, now they are chomping at the bit under the rhetoric of Maidan. Tymoshenko was released after all the human fatalities, and she and Turchynov were immediately hoisted to the top of the power pyramid. What is that about? Why such an unprecedented honour? Who exactly are these Elders of Zion? Whilst averting their eyes, some deputies say that such figures exist. All the rest are a closely guarded secret».

But they are not being kept secret any more. Let us look at two of them now.

The new head of the Dnipropetrovsk Regional State Administration is Israeli citizen Ihor Kolomoyskyi, a well-known Ukrainian businessman and head of the European Jewish Council. He is ranked the second richest person in Ukraine (2013) with a net worth of USD 3.645 billion. He is a member of various supervisory boards, the co-owner of PrivatBank, the Neftekhimik-Prykarpattya oil refinery, and the oil and gas extracting company Ukrnafta, the vice-president of the Football Federation of Ukraine, and, according to a number of political analysts, one of the most influential people in Ukraine. It was Kolomoyskyi who was always the financial sponsor of the ‘Yulia Tymoshenko’ political project. He lives in Switzerland. The fact that his PrivatBank was one of the first major lending institutions in the country to stop issuing money to the people because of the ‘Maidan troubles’ is evidence of how much of his own money Kolomoyskyi is willing to share with the people of Ukraine. In reality, he needs additional money himself to rectify affairs in his business empire. Much to the joy of Kiev’s new rulers, he has already registered his presence through his offensive remarks towards Russian president Vladimir Putin. Evidently there will be no point waiting for money, only insults.

Sergey Taruta has been appointed the governor of Donetsk region and is co-owner of the Industrial Union of Donbas Corporation, as well as president of FC Metalurh Donetsk. In February 2008, his net worth was USD 2.65 billion and Taruta ranked 8th in the Top-130 Richest Ukrainians. After the global financial crisis, however, his net worth fell dramatically to approximately USD 750 million. He is urgently in need of fresh infusions to restore his former greatness and save his assets. Governing a region as affluent as Donetsk will give him a good chance to do this, where he will be busy collecting objects of ‘high antiquity’. For this reason, he has spent a long time getting closer to former Ukrainian president Viktor Yushchenko.

Looking at these men, and knowing that it is these men who are standing behind the regime’s main figures, you start to wonder why Turchynov and Yatsenyuk are referring to themselves as a «kamikaze government» quite so insistently, and giving themselves a political life of 3-4 months. Why had it been necessary to rush to power quite so fiercely? Acting President Alexander Turchynov says that the provisional government is doomed because it will have to implement unpopular decisions. «Not those promised by the populists, but those that are needed to save Ukraine from default and restore the faith of creditors and investors. It will be criticised and vilified, but it must fulfil its duties and burn for the sake of Ukraine». Once again there is the question of whether it is for the sake of Ukraine or for the sake of its most worthy sons like Kolomoyskyi, Taruta and others. Yatsenyuk has already announced the unconditional acceptance of all IMF conditions, which will have a serious impact on the further deterioration of life for the Ukrainian people. But then on the other hand, fresh money will be received to save big business, which will then move along the already familiar route to offshore accounts and precious safety deposit boxes that will be hidden much more securely than those of the simpleton Yanukovych. It seems that the ‘kamikaze’ of Turchynov and Yatsenyuk is not going to involve anything except cutting out coupons to transfer power to the oligarchs.

And as far as Maidan’s «Circle of National Trust» is concerned, do they really believe in this fairytale about the fat cats being saviours of the homeland? After until, until fairly recently its leaders had been saying that Ukraine’s new government of national confidence would be closed to anyone on the list of the 100 richest people in Ukraine. Well what are they keeping quiet for?

They, for example, announced that they were going to convene a national popular assembly on Maidan Square on 2 March to listen to a report on the first results of the new government’s work. «And let Turchynov, Yatsenyuk, Tyahnybok, Klitschko and Avakov just try not to come!» it said in a statement on their social network site. People did actually gather on the square. But what did they talk about? About deflecting the threat of Russian ‘aggression’, both invented and over-exaggerated, seemingly so that no kind of report could be given. In truth, nobody has stuttered anything at all about the results of the new government’s work. And maybe nobody is going to ask, either. So what did the young people from the «Heavenly Hundred» and Berkut actually die for?