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Catherina

(35,568 posts)
Mon Mar 10, 2014, 11:31 PM Mar 2014

Ukraine crisis is about Great Power oil, gas pipeline rivalry

Ukraine crisis is about Great Power oil, gas pipeline rivalry
Resource scarcity, competition to dominate Eurasian energy corridors, are behind Russian militarism and US interference



Russia's armed intervention in the Crimea undoubtedly illustrates President Putin's ruthless determination to get his way in Ukraine. But less attention has been paid to the role of the United States in interfering in Ukrainian politics and civil society. Both powers are motivated by the desire to ensure that a geostrategically pivotal country with respect to control of critical energy pipeline routes remains in their own sphere of influence.

...

But US efforts to turn the political tide in Ukraine away from Russian influence began much earlier. In 2004, the Bush administration had given $65 million to provide 'democracy training' to opposition leaders and political activists aligned with them, including paying to bring opposition leader Viktor Yushchenko to meet US leaders and help underwrite exit polls indicating he won disputed elections.

...

What direction might that be? A glimpse of an answer was provided over a decade ago by Professor R. Craig Nation, Director of Russian and Eurasian Studies at the US Army War College's Strategic Studies Institute, in a NATO publication:

"Ukraine is increasingly perceived to be critically situated in the emerging battle to dominate energy transport corridors linking the oil and natural gas reserves of the Caspian basin to European markets... Considerable competition has already emerged over the construction of pipelines. Whether Ukraine will provide alternative routes helping to diversify access, as the West would prefer, or 'find itself forced to play the role of a Russian subsidiary,' remains to be seen."

A more recent US State Department-sponsored report notes that "Ukraine's strategic location between the main energy producers (Russia and the Caspian Sea area) and consumers in the Eurasian region, its large transit network, and its available underground gas storage capacities", make the country "a potentially crucial player in European energy transit" - a position that will "grow as Western European demands for Russian and Caspian gas and oil continue to increase."

Ukraine's overwhelming dependence on Russian energy imports, however, has had "negative implications for US strategy in the region," in particular the strategy of:

"... supporting multiple pipeline routes on the East–West axis as a way of helping promote a more pluralistic system in the region as an alternative to continued Russian hegemony."

...

Dr. Nafeez Ahmed is a bestselling author, investigative journalist and international security scholar. He is executive director of the Institute for Policy Research & Development, and author of A User's Guide to the Crisis of Civilization among other books. He writes for the Guardian on the geopolitics of environmental, energy and economic crises on his Earth insight blog

http://www.theguardian.com/environment/earth-insight/2014/mar/06/ukraine-crisis-great-power-oil-gas-rivals-pipelines
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Ukraine crisis is about Great Power oil, gas pipeline rivalry (Original Post) Catherina Mar 2014 OP
Good read, indeed. dixiegrrrrl Mar 2014 #1
Thanks. I'm assembling a collection of these starting from the Orange Revolution n/t Catherina Mar 2014 #3
self-delete. wrong place n/t Catherina Mar 2014 #2
this, as always, is the real story yurbud Mar 2014 #4
I dunno Catherina Mar 2014 #5
were the protesters carrying around signs that said that? yurbud Mar 2014 #7
In favor of 50% pension cuts? Hell no. Catherina Mar 2014 #9
Two nouns: Igel Mar 2014 #6
which pipeline are you referring to that replaced the Afghan one? The one through Iran? yurbud Mar 2014 #8

Catherina

(35,568 posts)
5. I dunno
Tue Mar 11, 2014, 02:04 AM
Mar 2014

I keep hearing it's about democracy and a better way of life that includes great things like the 50% pension cuts “Kommersant-Ukraine" just wrote about today based on a draft publication by the Ministry of Finance to meet the EU Austerity demands.

yurbud

(39,405 posts)
7. were the protesters carrying around signs that said that?
Tue Mar 11, 2014, 12:46 PM
Mar 2014

those are the kind of details that make the whole thing look like a put up job.

Catherina

(35,568 posts)
9. In favor of 50% pension cuts? Hell no.
Tue Mar 11, 2014, 01:57 PM
Mar 2014

Of course not which is why this put up job isn't going to go as smoothly as our media pretends.

Here are few pictures of the first time they cut SOME pensions in 2011 as dictated by the IMF.

Thousands protest pension and benefits cuts in Ukraine
Tuesday Sep 20, 2011 8:32 AM



Protesters clash with police in front of Ukrainian parliament in Kiev, Ukraine, September 20. More than 10,000 people, among them Afghanistan war veterans, demonstrated in the Ukrainian capital Kiev to protest proposed benefit cuts, with some of the marchers attempting to break police cordons around the national parliament building. Veterans of the 1986 Chernobyl nuclear power accident also participated in the street protests. Like Afghanistan war veterans, Ukraine's Chernobyl victims face reduced pensions and medical payments if parliament passes a cost-cutting bill currently under debate. Protesters shouted ‘Shame’ along with insults, as police struggled to keep demonstrators from overturning barriers. The International Monetary Fund (IMF) officials have said cash-strapped Ukraine must reduce numbers of people receiving social payments and the size of those payments, to obtain further IMF financing.




Protesters stand in front of Ukrainian parliament after their clash with police in Kiev, Ukraine, on September 20. Veterans of the 1986 Chernobyl nuclear power accident also participated in the street protests. Like Afghanistan war veterans, Ukraine's Chernobyl victims face reduced pensions and medical payments if parliament passes a cost-cutting bill currently under debate. Protesters shouted ‘Shame’ along with insults, as police struggled to keep demonstrators from overturning barriers.



Relatives of the 1979-89 Soviet Afghan war victims react as they take part in a protest rally against Ukrainian authorities' initiative to cut social benefits near the Parliament headquarters in Kiev on September 20. Hundreds of Ukrainians, mostly veterans of the 1979-89 Soviet Afghan war protesting against plans to cut their payouts and subsidies, tried to storm into the parliament building and scuffled with police on Tuesday.

http://photoblog.nbcnews.com/_news/2011/09/20/7857736-thousands-protest-pension-and-benefits-cuts-in-ukraine


They've been at this IMF Western takeover since the break of the Soviet Union. So people know. This is why they refused to wait for the whole country to weigh in with real elections and they went for the putsch instead. Similar to the Bush 2000 coup in the US. Ukraine's working class is vehemently opposed to this Austerity neoDemocracy.

Ukraine to cut large pensions as part of reform
June 1, 2011

Ukraine has redrafted a pension reform bill with the aim of cutting large payouts already assigned to a number of pensioners, Deputy Prime Minister Sergei Tigipko said on Wednesday. The aim of the move is to share the pain of pension reform more equitably and defuse public discontent that some better-off current pensioners are being treated too generously compared to others.

The move could help the former Soviet republic's government to win parliamentary approval for the law, unlocking access to a frozen $15 billion International Monetary Fund facility and starting a long overdue reform of the crumbling pension system.

President Viktor Yanukovich's government had promised the IMF to pass the law by the end of last year but missed the deadline after public criticism of the proposed reform which would raise the retirement age for women by five years to 65.

...

Separately, Yanukovich on Wednesday sacked Deputy Prime Minister Viktor Tikhonov who was responsible for utilities. Raising energy prices for households is another step agreed under Ukraine's IMF programme that the government has so far been hesitant to implement.

http://www.kyivpost.com/content/ukraine/ukraine-to-cut-large-pensions-as-part-of-reform-105798.html


If at first you don't succeed, try try again eh? This time they're going straight for a 50% cut in all worker pensions. From $160 to $80 a month. And Yanukovich, for the IMF increased the retirement age for women from 55 to 60 yrs old but that wasn't good enough for the IMF and this new gang is raising it to 65. They even demanded that Ukraine switch to pension privatization which Yanukovich refused.


...

More importantly, the IMF provided guidance for macroeconomic policy and used its leverage on Ukraine to implement painful austerity measures. Yet, because the government was unable to implement long-awaited reforms in the energy sector, for instance, and because it continued to make populist decisions, such as implementing wage and pension increases despite the fund’s warnings, the IMF suspended the program in the fall of 2009.

...

Pension reform was initially included in President Yanukovych’s reform agenda. It provided for several changes to the pension system, including an increase of the minimum required insurance period from five to fifteen years, the gradual increase of the pension age for women from 55 to 60 years old, and the increase of the qualification period for receiving full pension benefits by ten years. The same provisions were included in the Letter of Intent and Memorandum of Economic and Financial Policies that was signed by Prime Minister Azarov and sent into the IMF on July 16, 2010.9 The government promised to enforce these changes by the end of December 2010.

....

An IMF mission visited Kyiv on November 3–15, 2010 to conduct discussions on the first review under its Stand-by Arrangement with Ukraine. It became clear during the review that without pension reform, the government would not receive the next disbursement. The draft of the pension reform law was then submitted to the parliament on December 13, 2010 (as stipulated in a second Letter of Intent dated December 10, 2010), but in the best Ukrainian political tradition, the text was not made available to the general public. Sergey Tigipko, vice prime minister responsible for social reforms, refused to explain the main provisions of the document and stressed that the public discussion of the pension reforms would be conducted when they were considered in the parliament. Some politicians and experts had concerns that the government would not fulfill its obligations to the IMF and would not increase the retirement age because it was such a sensitive issue.

Eventually, the Ukrainian government put pension reform on hold, and as a result the IMF suspended its program in the spring of 2011. The draft of the pension reform law was resubmitted to the parliament in June 2011. On July 8, the parliament voted for the reform bill and President Yanukovych signed it into law on September 9.

...

http://carnegieendowment.org/2012/04/02/reforming-ukrainian-economy-under-yanukovych-first-two-years/a63h?reloadFlag=1


The fury of Ukranian workers over the IMF concessions Yanukovych made before he said fuck no, changed his mind and took Russia's $15 Billion deal is nothing compared to what's coming when they see what the putsch gang in Kiev will do, with no foot-dragging and without even the benefit of referendums or elections- just a putsch. No successful Eastern European government has ever been asked to impose a dramatic austerity and reform program prior to democratic elections. This is a total put job. And its very said to see some of the people wailing the loudest about how the Bush administration destroyed our social programs cheering for even worse to be done to the Ukrainian people.


It is true that Ukrainian households need to be weaned off absurdly large energy subsidies, which amounted to 7.5% of GDP in 2012. But, in a cold country where most of the population needs heating subsidies to survive and massive investments are required to increase energy efficiency, abruptly withdrawing support to households is politically unfeasible. No government that cuts heating subsidies suddenly will survive. The subsidies must be phased out and compensated by targeted cash benefits – the Ukrainian government estimates that it will cost €100 billion ($139 billion) to fix its energy policy – and these reforms need to be enacted after the upcoming election.

In addition, one-third of official income in Ukraine comes from government “transfer” payments of various sorts, but mainly pensions paid to elderly women, given that the country’s men rarely live much beyond the official retirement age. These women often use their pensions to subsidize their children and grandchildren. As a result, a majority of the country benefits from government transfer payments, and many households cannot do without them.

Yet cutting them ahead of the election – or announcing sharp cuts – is exactly what the IMF wants and what the interim Ukrainian government plans to do; in the words of Prime Minister Arseniy Yatsenyuk, “We don’t have any other options.” Yatsenyuk may be willing to sign away his political future, but the West should not let him do it. Not now.

The IMF and Western governments need to give Ukraine some breathing room. Ukraine’s economy was growing rapidly in the years before the global financial crisis, driven by exports of basic industrial goods, such as steel. Any emergency financial package must enable the government to survive through the May election and signal a commitment to reviving economic growth.

http://tradingweeks.blogspot.com/2014/03/will-imf-lose-ukraine.html


I'm sorry this was so long.

Igel

(35,320 posts)
6. Two nouns:
Tue Mar 11, 2014, 10:52 AM
Mar 2014

Nord Stream and South Stream. Currently about 1/3 of Russia's NG exports go through Ukraine.

Nord Stream bypasses land and goes through the Baltic to provide a northern supply of natural gas. It accounts for a large portion of the NG supply in the north.

South Stream should be on-line in a couple of years and will go under the Black Sea, not through Ukraine. At that point, you'll see that percentage going through Ukraine drop by half, at least. The country's infrastructure's ageing badly and Russia simply doesn't trust Ukraine.

Unless Europe's population explodes and its carbon efficiency declines precipitously, Ukraine's natural gas pipelines won't be all that essential. Since Europe is working on increasing carbon efficiency and using renewable energy and its population is stable or declining, that seems unlikely--and will make Ukraine's infrastructure even less important.


That's what happens when you base your desired results on the state of affairs more than a decade old. At the time, Nord and South Stream weren't even a glimmer in Gazprom's eye. Mostly because Putin hadn't consolidated economic power in the Russian state, between outright claiming it or merely controlling the oligarchs that helped bring him to power. (This is a common enough occurrence: It happened in Germany in the '30s when there was a kind of Nazi/industrial consortium, but while big business never lost all authority within a decade the industrialists were basically puppets.)

People do the same with some sort of pipeline that was proposed 20 or 30 years ago through Afghanistan. They still argue it's a crucial bit of information and the real reason for the war there. The project was abandoned, an alternative proposed, and the alternative built in that time--making the Afghan pipeline unnecessary, unwanted, unfunded, de-proposed. Yet the meme lives on.

However NG is playing a role in the Russian/Ukrainian affair. Because of the furor over the Russian occupation of Krym what you get is a blocking of work on South Stream. It's a joint project and right now Europe is basically preventing work for reasons of geopolitics. In a nutshell: Ukraine. The short-term stoppage isn't mucking with the schedule very much, but other sticking points are looming larger as the two sides move further apart on resolution of the issues. Russia's assuming that Europe's dependence on Russia will break the standoff so there's no real need to compromise. They can strong-arm Ukraine *and* Europe because the best way to defend yourself is to get an opponent down and keep on kicking. Tak delal Stalin, i ego predok Groznyi tsar'. I Zolotoe igo, ikh obshchii uchitel'.

yurbud

(39,405 posts)
8. which pipeline are you referring to that replaced the Afghan one? The one through Iran?
Tue Mar 11, 2014, 12:48 PM
Mar 2014

Oddly, about the time that deal came together with Pakistan and Iran, our government was suddenly shocked, SHOCKED to finally notice that Pakistan supported al Qaeda.

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