Sunday, 8 February 2015

News from Russia and Novorossia - 02/07/2015

The Guardian leads the media in the call to war

The Guardian issues an editorial arguing for doubling down in Ukraine with a (greater) Western supply of weapons to a Putsch regime bombing its own cities and mass murdering its own people into submitting to its openly West-backed violent overthrow of the legitimate democratically elected government less than a year ago.

Because, the Guardian's editors tell us, to fail to drag Ukraine, kicking and screaming, into the West's geopolitical orbit would at this juncture. be a "disaster" for "the European project". WTF that is a euphemism for....
- Mark Sleboda

The Guardian view on the Ukraine conflict: Swift action needed - Editorial

European leaders must be prepared to back fresh peace talks with credible threats. While supplying arms would be dangerous, it is time to consider severing Russia’s financial links

German Chancellor Angela Merkel and French President Francois Hollande visit Kiev
 German chancellor Angela Merkel (L), Ukrainian president Petro Poroshenko (C) and French president François Hollande during their meeting in Kiev, Ukraine, on 5 February 2015. Photograph: Roman Pilipey/EPA
5 February, 2015


On the eastern rims of Europe, a bad situation is getting nastier. The war in Ukraine, which has already claimed over 5,000 lives in nine months, has been threatening to take on larger dimensions. Pro-Russian separatists have been on the offensive in a big way, for the first time since August 2014. Their objective is to carve out a corridor to the Black Sea port of Mariupol, potentially opening a land bridge to Crimea, which Russia has already annexed. None of this would be possible without the increasing direct backing of the Russian military.

It is an appalling situation, which European leaders have too often dealt with by wishing it away. It is, then, to be welcomed that François Hollande and Angela Merkel on Thursday headed for Kiev, where the US secretary of state, John Kerry, had already arrived, to invest political capital in a new peace initiative. It must, of course, be hoped that subsequent talks in Moscow will bear fruit – hoped, but not assumed. There have been several seemingly promising diplomatic openings previously, most recently the Minsk accord. That multi-point plan to end the war was solemnly signed by all sides last September, but has since been systematically violated by all sides too – and the conflict has intensified.

Some will argue that the only reason why it may be possible to engage with the Russian president, Vladimir Putin, at this juncture is because of the recent noises coming out of Washington about delivering weaponry to Ukraine. Diplomacy always need to be backed by something, and on the face of it, supplying munitions might seem like the obvious threat to use. All else has failed to stop Mr Putin and his allies on the ground, so it may take guns and anti-tank missiles to do so. In 1995, western military support to Slobodan Milošević’s adversaries in Bosnia helped force the Serbian dictator into peace talks.

This argument for standing ready to arm Ukraine has one merit, but also several flaws. The one positive is that it puts some urgency behind the need to put a stop to Mr Putin’s adventures. The existing mix of sanctions and on-off diplomacy has become demonstrably ineffective. Letting the separatists capture more territory could render the Ukrainian state unviable, a disaster for Europe. Mr Putin’s power games need disrupting now, since there is no telling where he will turn next. Moldova? Or the Baltic states, where the worth of Nato’s security guarantees could be put to a dangerous test?


But there are also grave dangers of adding more weapons to a war, the danger of pouring petrol on to a fire. In a corrupt environment, replete with militias, there can be no guarantees that the kit will not fall into the wrong hands. And how do you control escalation? The Putin regime could easily up the ante, confident that it could call the west’s bluff well before tensions reached the terrifying logical extreme of direct nuclear conflict. Arms supplied by the US, especially, would be fodder for Mr Putin’s propaganda about a war against “Nato’s foreign legion”. If the crisis requires stronger action, then this should come from Europe first. After all, this is a war on European soil. Its consequences go well beyond Ukraine, undermining the European project itself. Mr Putin seeks to disrupt the international and economic norms that the EU upholds – norms that are anathema to a chauvinistic Russian regime.

Europe does have leverage, if it chooses to use it. Russia may be a geopolitical giant but its GDP is no bigger than Italy’s. It is dependent on Europe’s financial structures. Yet next to the plunging oil price, the EU sanctions thus far have had a virtually symbolic impact. Cutting Russian banks and companies from the Belgium-based Swift international transaction system would, by contrast, impose a serious jolt. It could be done quickly, but then also rolled rapidly back. It has worked before, against Iran, which entered nuclear negotiations soon after being banned from Swift in 2012. Many businesses would balk at the costs. But these would surely be easier to bear than the enduring damage done by a widening war on the European continent.

Mr Putin regards the EU as a strategic midget. He will respect it only when Russia’s predatory oligarchy is confronted with some red lines. When Mrs Merkel and Mr Hollande head for Moscow, they should put Swift on the table.


Crimea Cannot Be Blamed for Choosing to Join Russia - Sarkozy





Former French President Nicolas Sarkozy noted on Saturday that France and Russia are part of a common European civilization, and that Crimea cannot be blamed for choosing to join Russia.

Speaking on Saturday before supporters at the congress of the Union for a Popular Movement Party (UMP), Former French President Nicolas Sarkozy played a conciliatory note toward Russia, noting that Crimea could not be blamed for choosing to leave Ukraine amidst the turmoil of early 2014.

"We are part of a common civilization with Russia," Sarkozy, who serves as the president of the UMP, noted. "The interests of the Americans with the Russians are not the interests of Europe and Russia," he noted. The former president added that "we do not want the revival of a Cold War between Europe and Russia."

With regard to Crimea's referendum to leave Ukraine and join Russia in March 2014, Sarkozy noted that "Crimea has chosen Russia, and we cannot blame it [for doing so]." He added that "we must find the means to create a peacekeeping force to protect Russian speakers in Ukraine."

On Ukraine's hopes to join the European Union, Sarkozy noted that "Ukraine must preserve its role as a bridge between Europe and Russia. It is not destined to join the European Union."

On March 16, 2014, a referendum carried out in Crimea saw a vast majority of voters choosing to join Russia.


One Year Later, Crimeans Prefer Russia



As European leaders engage in shuttle diplomacy to still the armed conflict in eastern Ukraine, Crimea, where the Russian onslaught began almost a year ago, has become all but forgotten. It isn't the subject of any talks, and the international sanctions imposed on Russia for annexing the Ukrainian peninsula are light compared to the ones stemming from later phases of the conflict. Yet Crimea provides a key to understanding the crisis and its potential resolution: Ultimately, it's all about how the people in disputed areas see both Russia and Ukraine.


Doomsday Watch: Ukrainian government to seize personal savings





By Da Dzi

Translated from Russian by J.Hawk

Yatsenyuk is planning to rob Ukrainians using the “Cyprus Scenario.”

The Ministry of Finance legislative project “On Ukraine’s Financial System During the Special Period” contains a number of provisions concerning individual and corporate bank deposits.

Specifically, there the following provision: “in the event of a martial law and a moratorium on disbursement of bank deposits such deposits may be used in order to satisfy the needs of the state during the special period by including such a proportion as will be determined by the Cabinet of Ministers into the state budget.”

The legislative project also specifies that the deposits which are used in this manner are added to the national debt, and the owners of the deposits are issued state bonds. The government will fulfill their obligations to the bond holders after the special period is finished, using the national budget. What makes such a law appear necessary is the possible introduction of the martial law in Ukraine in the event of an escalation of fighting, but also serious problems with fulfilling budget obligations due to sharp drop in receipts.

This bill has already been coordinated with the National Bank, the Ministry of Economic Development, the National Financial Services Committee, the MOD, and the MVD.

The measures being discussed by the Ministry of Finance and the National Bank in order to stabilize the financial system for the duration of the special period include both the inclusion of deposits from existing accounts into the national budget, as well as the so-called “haircut” using the Cyprus scenario, when deposits above a certain threshold will be converted into shares in the afflicted banks for a certain period of time (this is the so-called bank recapitalization at the expense of the bank customers).

Martial law in the entire country or several regions may lead to a temporary confiscation of deposits of all manner of physical and legal subjects (except for defense industry enterprises). Any deposits larger than 200 thousand hryvnya could be drawn into the process of saving Ukraine’s finances.

As these deposits are being in effect sequestered, any hard currency deposits will be automatically converted into hryvnya using the official exchange rate, and will be returned to the owners in the national currency. Nobody knows what the exchange rate could be at the time that the deposits are returned.”

Ukrainians, I am not trying to frighten you. But they are planning to nakedly rob you. All of you. If you still have any deposits left, withdraw them as soon as you can. Otherwise you may be too late. 

J.Hawk's Comment: Since no international funding is forthcoming, it only makes sense for the Ukrainian government to squeeze every little bit of assets still to be found in their country. Aside from fostering discontent, it also means that any future Ukrainian government (one that appears after the "special period" is over) will be facing impossible financial demands, both to international institutions and to their own citizens. This is making Greece look like a paragon of financial health.  But it looks like the Kiev junta has in effect decided to resort to hostage-taking (except in this case the hostage is the entire population of the country) in order to get its way: either you give us what we want, or you will have a failed state in a civil war right in the middle of Europe. It's doubtful they are doing it at the behest of Washington, Berlin, or Brussels. It's more the case of puppets trying to control the puppet-masters.


It's also interesting that the original article on which this blog entry is based was published in the Ukrainian media. If Ukrainians needed any excuses to stage a bank run, they have one now. 

Finally, one should ask oneself the question who exactly in Ukraine still has sizable hard currency (i.e., euros or dollars) deposits. The list includes the country's oligarchs and any enterprises which engage in large-scale import and export operations. Ultimately it's their wealth that the proposed law would target and, frankly, annihilate, because Ukrainian government bonds do not seem like the safest vehicle for preserving wealth these days. No wonder Kolomoysky and Baloga are suddenly in favor of a referendum to determine the fate of Eastern Ukraine...

Ukraine Passes Law to Shoot Deserters

Ukrainian army
A fighter jet flies above as Ukrainian soldiers sit on an armoured personnel carrier in Kramatorsk, in eastern Ukraine April 16, 2014. 
http://www.newsweek.com/ukraine-passes-law-shoot-deserters-304911


The Ukrainian parliament has approved a motion to allow commanders in the armed forces to fire at army deserters and use force against servicemen for “negligence” or “drinking alcohol” while on duty.
The motion was discussed in a session yesterday afternoon, with 260 MPs passing it out of a total 320, according to Ukrainian news agency Unian - surpassing the necessary 226 votes needed to pass the bill. It will now be added as an amendment to the current Ukrainian legislation on the regulations imposed on commanders' actions toward their charges.


The act will allow commanders to “utilise drastic measures” - defined by the UN as the use of force and firearms - towards officers caught acting “negligently” or in violation to the code of conduct during combat duty or while they are on border patrol. The new act adds “drinking alcoholic or low-alcoholic beverages” while on duty as an offence punishable by force.......


Junta Counter-offensive


From Vladimir Suchan, via Facebook

There is a talk that the Kiev junta has launched an all-out counteroffensive along the whole frontline of the Donetsk People's Republic as of today morning, while Moscow, Germany, and France are being engaged in an attempt to put together a new "implementation" agreement on the Minsk agreements, which is to be finalized tomorrow through a conference call, which would include Kiev, but exclude the Donetsk and Lugansk People's Republics.

I saw the first mention of the counteroffensive from Strelkov here:

But since till then I saw no other confirmation I was holding on the information, while noting the eerie silence or lack of battlefield updates on Rozhin's site and elsewhere from today


From Graham Phillips

Update from Debaltseve Frontlines - 6th February





One man buried his entire family





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