Does Mr. Trump really not grasp that his sanctions left and right
– and now on the Russian-German gas pipeline Nord Stream 2 – is
committing economic suicide, not for himself, of course, but for the
United States? He attempts to punish not only Russia, but all the
corporations, construction companies, Russian, German and from
everywhere, which collaborated and are still working on the final
stretch of the1,250 km pipeline.
Nord Stream 2 is an under-water pipeline crossing from Kingisepp in
Russia to Greifswald in Germany, under the Baltic sea. Its cost is
estimated at more than US$ 100 billion. It parallels Nord stream 1 (see
map), and is supposed to make Germany energy secure, especially once
Germany exits from nuclear energy. After the March
2011 Fukushima nuclear disaster, Germany has already permanently shut
down eight of its 17 reactors and pledged to close the rest by the end
of 2022.
Russia will supply Germany with 55 billion cubic meters (m3) of
liquified natural gas (LNG), via Nord Stream 2, roughly the same amount
as is already delivered through Nord Stream 1, two pipelines of about
1,250 km running in parallel on the floor of the Baltic Sea. Nord Stream
2 is scheduled to begin operating in mid-2020.
The pipeline is to 90% completed and will not be stopped, come hell
or high water. If worse comes to worst, and European companies do quit
over the threat of sanctions, Mr. Peskov, the Russian Presidential
spokesperson, says Russia can finish the job with her own ships and
construction capacity.
President Trump knows it. So why dishing out sanctions? Hoping that
one or the other of the “collaborators” will jump ship – and rather work
for US fracking giants than for environmentally friendlier Russian gas?
There is certainly a risk of that happening. But how likely is that?
Well, likelier than a common-sense
reader may believe. The project’s important part of pipeline-laying work
is being carried out by the Swiss-Dutch company Allseas, which would be
directly affected by the sanctions. As a consequence, Allseas has
suspended its work last Saturday, 21 December; they say “pending
clarifications on legal, technical and environmental questions with the
US.” Other participating companies are Russia’s Gazprom and European
OMV, Wintershall Dea, Engie, Uniper and Shell. So far, they have not
reacted to the threat of sanctions.
*
On December 17, the Senate passed a Sanctions Bill, to punish any
company, German or otherwise which contributes to the construction of
the Nord Stream 2 pipeline. Don’t question the legality and the right of
the US of interfering with a business / trade transaction between two
sovereign countries. It is outrageous. Even more outrageous, though, is
that the world at large the more than 190 UN members are (almost)
silent. Many of them are also victims of US sanctions. But most don’t
even “sanction” back, peacefully, understood, but as a reply to
Washington’s breaking international laws with impunity.
The US bill will enter into effect only 30 days after it is signed
which means that work on the pipeline may well be finished when the
sanctions will become effective. However, as we know, with the US no
rule is viable and trustworthy, sanctions may be applied retroactively.
For once, Ms. Merkel seems to stand firm. She says “US sanctions
won’t stop the Nord Stream 2 project”, and so says President Putin.
Russian
Foreign Minister Sergei Lavrov, slammed the US
by saying that “US diplomacy is limited to intimidation, by imposing
sanctions, ultimatums and threats.” To that, Heiko Maas, German Foreign
Minister added “European energy policy is decided in Europe, not in the
US.”
The German- Russian Chamber of Commerce expressed yet the strongest
position, stating that this project serves Germany’s economic interest
and energy security and calling for retaliatory sanctions on the United
States. Yes, retaliatory sanctions! But will the Europeans have the guts
to do so? – And do so with meaningful sanctions, like tariffs on
American goods, or stop importing certain US goods, cars or iPhones, for
example.
The US not only wants to sell her own fracking gas – which in
addition of violating Germany’s environmental rules – is also much more
expensive than Russian LNG. Equally or more important – Washington wants
to drive yet another wedge between Germany and Russia. This will not
work.
Germany, especially Germany’s business community, has recognized that
Russia, the huge landmass of Eurasia all the way to China, is a natural
market not only for Germany, but for the whole of Europe – and has been
for hundreds of years, before the UK transplanted her empire across the
Atlantic, killing millions of indigenous people conquering North
America, hoping to have an easier time to reign over the world from her
vantage position between two shining seas.
It has almost worked. At least for a while. But now US arrogance,
greed and violence around the globe is backfiring. The world is becoming
sick and tired of the US exceptionalism. The relatively recent
indiscriminate and unlimited sanctions program against anyone, any
nation, that doesn’t bend to the whims of Washington, results in
economic warfare. It is driving more allies away than it attracts. So,
it amounts to America’s economic suicide.
Since the US economy depends on
financial hegemony and war – it will be a gradual downfall of the US
economy. It may not be a sudden collapse as many may wish, but rather a
slow but steady disappearance of the US muscle, exactly the way it ought
to be, so as not to hurt countries still depending on the US dollar,
giving them time and opportunities to diversify their markets and
monetary reserves.
*
What may the US holy sanctions for Nord Stream 2 imply? – According
to preliminary hints from the State Department they may include
individuals involved in the project having their US visas revoked and
property blocked. US visa revoked? So what, but property “blocked” –
means not just property in the US but around the globe, meaning that
property is effectively confiscated, stolen, by US authorities, as we
have seen in the case of Venezuela which has lost some 130 billion
dollars through outright US asset confiscations – theft – since the
beginning of 2017.
All this is possible only because the west is still dominated by a
fiat US-dollar run economy that has the capacity to interfere in any
western US-dollar based economy. In that sense, US sanctions have
a positive long-term effect. They drive foes and allies alike away from
the bogus US-dollar economy, towards strong eastern-run, and solid
output-based economies, with gold backed currencies, like the Chinese
Yuan and the Russian Ruble.
It is puzzling and mind-boggling – that Trump, and the entire
financial oligarchs that pull the strings behind Trump, do not see this
medium to long-term effect. Do they really believe in their untouchable
“exceptionalism” and hope with their superb arrogance, that the world
will continue to fall for sanctions, if they see and realize they can
live an eastern alternative? – Or, do they know they are doomed, but
while going down, they lash around like a dying beast to bring as many
countries as possible down with them?
*
The exceptional nation US of A displays always the same logic, either
you are with us or against us. As could have been expected, Poland
along with the Baltic states are anti-Russia and anti-EU, and therefore
pro-US. Brussels announced an agreement between the US and these states
selling them 112 billion m3 of fracking LNG starting in 2020. The US
calls it “freedom gas”. Sounds like “freedom fries’’ instead of French
fries, when the French were in a clinch with Washington in 2003 over
objecting to the US unilateral invasion of Iraq. – Remember? Same-same.
As if people wouldn’t know by now what “freedom made in USA” means.
Maybe the rest of Europe realizes that they owe some loyalty to
Russia, as the Russians, the Soviet Union at the time, was the deciding
factor in winning WWII against Hitler’s Germany, not the US and her
western allies.
*
One of Washington’s argument for fighting Nord Steam 2 says that the
US does not want to save Ukraine from possible bankruptcy if Kiev loses
the $2-3 billion it makes annually from Russian gas transit to Europe.
It implies that the new pipeline, by circumventing Ukraine, would
deprive Ukraine from the lucrative transit fees. This argument has just
become mute, as Russia, after years of legal battles and negotiations
has signed a historic agreement with Kiev on an extension to the current
gas transit agreement, which expires on December 31, 2019. The
agreement will restore the transit fees of US$ 2 – 3 billion per year.
In addition, Mr. Putin confirms that Russia is ready to give Ukraine a
25% special discount on its natural gas for domestic consumption. Quite a
concession by Mr. Putin towards a country that has in a most ugly way
turned its back to Russia, of which it was an integral part for
centuries. A laudable and brilliant Russian peace initiative that may
have positive implications throughout Eurasia, all the way to China.
In all, still more than 50% of all Russian gas to Europe will
continue to be flowing through Ukraine, this is more than 110 billion m3
/year. Both, Russia and Germany have always maintained that Nord Stream
2 was meant as a supplementary route to guarantee stable supplies to
Europe, but will not replace transit through Ukrainian territory.
Will this just agreed deal between Russia, Ukraine and the European
Commission have an impact on the US sanctions? – Most likely not,
because what Russia wants even more than the European market is
separating Europe from Russia, and in a wider sense, from Eurasia,
including China – a lost cause, of course.
A crucial question is, why does Germany or the EU for that matter not
threaten Washington with return sanctions? – Afraid of what? – Is it
NATO that runs the EU that will not allow such measures, or else? NATO
countries are already divided among themselves – with Germany or the EU
imposing sanctions against the US – and over and above NATO’s
objections, it might amount to a break-up of NATO. And Europe is not
quite ready for this step – yet.
The bottom line is – are the US serious with trying to stop Nord
Stream 2 with sanctions, or are they just testing the waters with
economic bullying, finding out ‘who is with us and who is against us’ –
and where is the limit to unabashed bullying – a lesson Washington then
may apply for developing their strategy (sic) of how to subdue Europe in
their competitive fight
West against East– again, it is a losing
proposition, as Washington and Trump’s puppeteers must know. It’s just
postponing the downfall into America’s dark doom.
*
Note to readers: please click the share
buttons above or below. Forward this article to your email lists.
Crosspost on your blog site, internet forums. etc.
This article was originally published on New Eastern Outlook.
Peter Koenig is an
economist and geopolitical analyst. He is also a water resources and
environmental specialist. He worked for over 30 years with the World
Bank and the World Health Organization around the world in the fields of
environment and water. He lectures at universities in the US, Europe
and South America. He writes regularly for Global Research; ICH; RT;
Sputnik; PressTV; The 21st Century; Greanville Post; Defend Democracy
Press, TeleSUR; The Saker Blog, the New Eastern Outlook (NEO); and other
internet sites. He is the author of Implosion – An Economic Thriller about War, Environmental Destruction and Corporate Greed – fiction based on facts and on 30 years of World Bank experience around the globe. He is also a co-author of The World Order and Revolution! – Essays from the Resistance. He is a Research Associate of the Centre for Research on Globalization.
Featured image is from NEO
The original source of this article is Global Research
Posted with permission of the author.
Blogger's note:
subterrnews.blogspot.com does not send cookies, or collect any information on
those using the blog. However, the blogspot is on google, and google may
collect information, and send cookies. Many of the links that we
connect to do not send out cookies or collect information, but some do.
You are keying in to this blog, and you have agreed to this.
The views expressed in the articles
do not necessarily represent the opinions of this blog. They are the views, and opinions of the
author(s) of the article.
