Tag Archives: russia

Stratfor: Russia’s economy burns; they have no good options.

Summary: As Obama’s military requests vast new sums to defend against Russia, Stratfor examines Russia’s crashing economy — and its few options for recovery. Russia is largest casualty of the financial world war begun by the Saudi Princes (bet on them to win). While this great conflict burns the US military dances away to its own delusional but profitable tune.

Stratfor

Russia Has Few Options for Turning Its Economy Around

Stratfor, 5 February 2016

Forecast

  • The Central Bank of Russia will try to reduce high inflation and encourage growth to counter the economy’s rapid deterioration.
  • However, the bank probably will not be able to rely on its biggest tool — the interest rate — to do so, instead turning to less effective means that will have little impact on inflation.
  • While the central bank’s efforts to reform the banking sector will not yield many immediate gains, they could spur growth in the long run by encouraging investment in Russian businesses.
  • Meanwhile, the Kremlin will use its limited resources to prop up Russia’s most important sectors, including agriculture and the military.
  • Still, unrest will likely grow throughout the year as inflation continues to put pressure on the Russian people.

Analysis

Low oil prices have thrown a wrench in many of the world’s economies, but perhaps nowhere more so than Russia. Depressed energy prices have sent the value of the Russian ruble tumbling and inflation soaring, and much of the Russian population is struggling to make ends meet.

The Central Bank of Russia, under pressure to find a solution to the country’s deepening economic crisis, is exploring all of the monetary policy options at its disposal. But the bank will find that its primary tool for combating the inflation wreaking havoc on the Russian economy — adjusting the country’s key interest rate — may be difficult to actually use under the current circumstances. As a result, bank officials will likely be forced to turn to secondary, less effective measures to keep the Russian economy from sliding even further into disrepair.

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Stratfor looks at the Caucasus: A Crucible for Conflict

Summary: Stratfor looks at the Caucasus, where some of Europe’s fault lines cross. These border regions are often unstable, and have birthed many of Europe’s wars. The Caucasus nations are heating up, with no signs of resolution in sight.

Stratfor

The Caucasus: A Crucible for Eurasian Powers

Stratfor, 31 December 2015

Summary

Where the boundaries of Europe and Asia meet, a relatively new arena has emerged in the competition between Russia and the West: the Caucasus. The region, which comprises Georgia, Azerbaijan and Armenia, rests outside mainland Europe and is surrounded by regional powers. A wave of separatist movements since the fall of the Soviet Union has played an influential role in how the Caucasus countries view Russia, which has consistently lent its support to disputed territories.

In the coming decades, the Caucasus will continue to be an important battleground for Russia and the West as other regional powers like Turkey and Iran are drawn into the competition for influence. And as Georgia, Armenia and Azerbaijan align more closely with their chosen sides, all signs point to a Western-backed alliance gaining ground.

Analysis

Where the boundaries of Europe and Asia meet, a relatively new arena has emerged in the competition between Russia and the West: the Caucasus. The region, which comprises Georgia, Azerbaijan and Armenia, rests outside mainland Europe and is surrounded by regional powers. A wave of separatist movements since the fall of the Soviet Union has played an influential role in how the Caucasus countries view Russia, which has consistently lent its support to disputed territories.

In the coming decades, the Caucasus will continue to be an important battleground for Russia and the West as other regional powers like Turkey and Iran are drawn into the competition for influence. And as Georgia, Armenia and Azerbaijan align more closely with their chosen sides, all signs point to a Western-backed alliance gaining ground.

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The first financial world war has begun, over oil. Bet on the Saudi Princes to win.

Summary: We have not begun a new era of low oil prices, fruits of new tech and a beneficent Fate. Low oil prices are the wreckage of an ongoing war — a financial war waged by the Saudi Princes for control of the world oil markets. We can predict who will win but only guess at the effects.

It's an Oil World

Nukes made conventional interstate war among great powers as obsolete as jousting. But war is protean, always assuming new forms. Fourth generation warfare is one form, as non-state actors use asymmetric tactics to defeat larger and better financed state forces. We might be in the midst of the first financial world war, waged by the Saudi Princes for control of the world oil market. The outcome seems likely to reshape the world, inflicting massive damage on nations relying on oil income — with Brazil, Venezuela, Russia, Iraq, and Iran among the notable casualties. A major victory by the Saudis — making them leader of a stronger OPEC — might reshape the Middle East and the world more than our 14-years of wars since 9/11.

To understand this new age of war I recommend reading Unrestricted Warfare, published in 1999 by Qiao Liang (乔良) and Wang Xiangsui (王湘穗), Colonels in the air force of the People’s Liberation Army. They describe the 1997 attack on the currencies of Southeast Asia by George Soros and other hedge funds as the first financial war. Here’s a key excerpt…

“When people begin to lean toward and rejoice in the reduced use of military force to resolve conflicts, war will be reborn in another form and in another arena, becoming an instrument of enormous power.

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Did NATO betray Russia, breaking the deal to stay out of Eastern Europe?

Summary:  The news that “NATO invites Montenegro to join alliance, defying Russia” has sparked return (again) of stories that the US broke its deal with the Soviet Union to stay out of Eastern Europe. These accusations by Putin and other Russian leaders frame and poison relations with the West. Here are the facts.

Trust broken

Putin’s claims of perfidious behavior by the West show his understanding that the moral high ground is, as so often the case, of value. His most vehement accusations are that the NATO’s expansion into Eastern Europe violates agreements made in 1989 and 1990. In his February 2007 speech to the Munich Security Conference he said…

“And we have the right to ask: against whom is this [NATO] expansion intended? And what happened to the assurances our Western partners made after the dissolution of the Warsaw Pact? … I would like to quote the speech of NATO General Secretary Mr. Woerner in Brussels on 17 May 1990. He said at the time that: ‘the fact that we are ready not to place a NATO army outside of German territory gives the Soviet Union a firm security guarantee.” Where are these guarantees?”

In his March 2014 speech justifying Russia’s annexation of Crimea (we’re bad, so he’s bad)…

“{Western leaders} have lied to us many times, made decisions behind our backs, placed before us an accomplished fact. This happened with NATO’s expansion to the east, as well as the deployment of military infrastructure at our borders.”

Many on the US Left take Putin’s claims seriously, an example of the Left’s long affection for tyrants (shared, of course, by the US Right). These claims have have only a weak basis in fact. The last years of the Soviet Union were marked by remarkably hasty and poorly thought-out actions by its leaders. Their reliance on a vague verbal agreement — between Secretary of State James Baker and the USSR’s Foreign Minister, Eduard Shevardnadze — was poor statecraft (but by no means their worst errors).

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Stratfor: a Grand Bargain remains elusive in Ukraine

Summary: Stratfor provides a status report on the Ukraine civil war, a festering boil in the heart of Europe and spark that hawks on both sides are using to restart the cold war. These conflicts usually end in diplomacy; that point seems far away.

Stratfor

For Ukraine, a Grand Bargain Is Still Elusive
Stratfor, 14 October 2015

Forecast

  • Because of political considerations, Kiev will not fully submit to separatist and Russian demands for amnesty and “special status” powers in eastern Ukraine.
  • Europe will encourage the Ukrainian government to be accommodating, but the United States will push for a hard-line approach.
  • Russia will keep its options open and will not abandon the possibility of ramping up militant activity if Kiev and the West are uncooperative.

Analysis

After a year of slow-burning conflict in eastern Ukraine, the relationship between Kiev and Moscow seems to finally be improving. Fighting on the ground has dissipated, there have been positive developments in talks over the past few weeks and both sides began to pull heavy weaponry back from the line of contact in early October. Moreover, Russia and Ukraine have agreed on a temporary natural gas deal and will begin direct negotiations on Kiev’s terms of repayment for a bond that matures in December. And in a major concession to Kiev and its Western backers, the separatist territories of Donetsk and Luhansk announced Oct. 6 that they would postpone local elections.

These developments signal progress toward ending the standoff between Russia and the West over Ukraine. However, a broader settlement will still be difficult to achieve and is unlikely to be reached before the end of the year.

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Stratfor: The Loyalist Offensive Begins in Syria, with Russia’s help

Summary: As regional and global powers search for a solution to the Syrian civil war, fighting on the ground appears to be on the verge of worsening. Both loyalist and rebel forces are preparing for two new offensives within the coming months that will greatly influence the trajectory of the conflict ahead. This report by Strafor looks at the combined Russia – Syrian government offensive.

Russia’s military deployment to Syria was carried out with the permission of Damascus, and is “completely legal and legitimate under international law.” “The difference with Russian presence and presence of all these special forces that are now operating in Syria is that the US was not asked by the legitimate Syrian government to interfere and they were in breach of Syrian sovereignty.”

— Dirk Adriaensens (actiist, bio here).

Stratfor

In Syria, the Loyalist Offensive Begin

Stratfor, 8 October 2015

The Syrian government’s long-expected offensive against the country’s rebel forces has begun. On Oct. 7, loyalist troops advanced against rebel-held positions in northern Hama with the support of numerous Russian airstrikes as well as both rocket and tube artillery fire. Initial reports from the battlefield suggest that the rebels, primarily the Free Syrian Army, are putting up an effective defense in spite of heavy shelling. The rebels’ liberal use of improvised explosive devices and anti-tank guided missiles has taken a heavy toll on loyalist armor; several reports say rebels destroyed 17 armored fighting vehicles on the first day of the fight, and combat footage has confirmed the destruction of at least nine vehicles.

Despite the initial setback, the loyalists’ Russian-backed offensive has only just begun. Already there have been heavy airstrikes in the Al-Ghab plain, signaling the spread of the offensive to other areas of Hama. Loyalists are also preparing to assault the northern Homs pocket and to push toward the Kweiris air base, where several allied groups are still engaged in fighting with Islamic State forces.

Russian airstrikes in Syria

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Stratfor shows that the Russians Are Coming – to Syria

Summary: The United States has almost 800 bases in 70 nations around the world, so it’s natural that Russia building a base in Syria would spark hysteria among Americans. So rather than pay attention to our special operations units, active in 135 nations this past year, let’s focus on the Russians in Syria. Stratfor provides the satellite photos and analysis that tell you what you need to know. Use the knowledge wisely.

Stratfor

Explaining Russia’s True Presence in Syria

Stratfor, 25 September 2015

Stratfor has been closely tracking the Russian buildup of military power at Bassel al Assad air base in Syria, charting the uptick of forces throughout September. Aside from the air assets and defensive ground capacity identified at the air base, reports indicate potential Russian activity at several other locations across the Syrian coastal region.

Widely circulated satellite photography dated Sept. 13 revealed construction at the Istamo weapons storage facility and the appearance of tents at the al-Sanobar military facility south of Latakia. Though this led to conclusions of a possible Russian military presence at those facilities, more recent and detailed imagery provided by our partners at AllSource Analysis seems to contradict this assertion.

Satellite imagery of the al-Sanobar military complex from Sept. 23 does not show any sign of a notable Russian military presence. The tent camp that was present in the Sept. 13 imagery is nowhere to be seen. Also, no particular Russian military equipment or vehicles can be identified.

Russian forces likely move through the area frequently because of their continued activity at the port of Latakia, the activity at the nearby Bassel al Assad air base, and the transit of Russia advisers and trainers to the Syrian front lines, where they are embedded with military units. Because of this, it is possible that the Sept. 13 imagery caught a temporary encampment of Russian forces operating in the Syrian coastal area, as opposed to a more sustained deployment of combat forces to the al-Sanobar complex.

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