Sunday, December 7, 2014

“Turkish Gambit” – a Geopolitical earthquake of magnitude 9.0



I am not a chess player, so I do not know any chess terminology. But the term, “Turkish Gambit”, is being tossed around by commentators to describe Putin’s recent cancellation of South Stream and simultaneously signing of Russia-Turkey pipeline deal – an extension of the blue stream pipeline that already supplies natural gas to turkey.

This is how Merriam-Webster’s dictionary describes gambit

gam·bit

noun \ˈgam-bət\
: a planned series of moves at the beginning of a game of chess
: something done or said in order to gain an advantage or to produce a desired result

Full Definition of GAMBIT
1
: a chess opening in which a player risks one or more pawns or a minor piece to gain an advantage in position
2
a (1) : a remark intended to start a conversation or make a telling point (2) : topic
b : a calculated move : stratagem


Both the cancellation of South Stream project and the Russia-Turkey deal have sent shockwaves throughout the western world. As is the Russian wont – Russia does not issue verbal threats, they just act – President Putin dropped a bombshell on his recent visit to Turkey by announcing the shelving of south stream pipeline, citing Bulgaria’s unconstructive attitude, and simultaneously inking a deal with Turkey to bring the gas to the shores of Turkey. The gas will then be transited to other European customers, bypassing troublesome Ukrainian pipeline and the attitude of EU, i.e. it is hell bent on preventing the pipeline. No wonder, Russia finally decided that enough is enough and shelved the South Stream project.

………

At the news conference on December 1, the Russian leader said: “Taking into account the European Commission’s position, which is not conducive to implementing this (South Stream) project, taking into account the fact that we have only recently received permission from relevant authorities in the Netherlands — granted, it was a positive decision, and taking into account that we still have not received permission from Bulgaria, we feel Russia cannot continue implementing this project under the existing circumstances.”

“I mean that we now need to start the construction of this pipeline in the Black Sea, but we cannot do that until we have Bulgaria’s permission. I think it’s clear to everyone that it would be ridiculous to start the construction in the sea, reach the Bulgarian shore and stop. So we are forced to reconsider our participation in this project,” Putin said.
…….





South Stream pipeline was meant to bypass completely troublesome Ukraine which was always causing hurdles in the delivery of Russian gas to consumers in Europe. Knowing Ukraine’s attitude, Russia had devised a solution to this problem by designing two major pipelines – Nord Stream and South Stream. Nord Stream pipeline already supplies gas to Germany. The South Stream pipeline, when completed, would have completely bypassed Ukraine and provided reliable gas transit to south European consumers. 

In addition, the pipeline would have also provided a boost to the economies of the nations it traversed in the form of transit fees and jobs. But the mule-headed approach of EC - at the behest of US and eager to confront Russia, whom they perceive as a threat to their relentless march for the world domination and preservation of the dollar as the world reserve currency - scuttled it.

Again from the same article….

…..

Putin also told journalists that “with regard to South Stream, we feel that the European Commission’s position was unconstructive. It’s not that the European Commission has helped implement this project — it’s that we see obstacles being created in its implementation. If Europe does not want to implement it, then it will not be implemented.”

……


The South Stream pipeline was supposed to traverse Bulgaria. But by bending to the pressure of EU - and a desire to please Brussels – the Bulgarian Government kept on hedging on the issue. But never did they realize that Russia could, finally, say enough is enough and quash the whole project.

The pipeline would still be built under black sea, but instead of going towards Bulgaria, it will now go to Turkey which stands to benefit immensely. In addition, a transit gas hub will be built on the Turkish-Greek border which will supply the gas to European customers.

The geopolitical ramifications of this deal are enormous and will be felt throughout Europe.

Let us consider Turkey First.

For Turkey, the pipeline is a major victory.   

First, it fulfills Turkey’s desire to be energy transit hub. It also knocks the hope of building Qatari gas pipeline through Syria to Turkey for distribution to European consumers. In addition, Qatari pipeline through Syria cannot be built as long as Assad is in power. The western nations are trying to get rid of him by supporting the so-called Syrian rebels; many of whom are hard-core members of Al-Qaeda. Now that Turkey’s desire of being an energy transit hub is getting fulfilled, it remains to be seen how it reacts towards Assad regime now.

Second, in spite of being a NATO member, Turkey’s aspiration to join EU has been thwarted by various European nations on one pretext or another since 1967. The signing of the deal with Putin gives Turkey a chance to tell European nations to go pound the sand.

Third, Turkish Prime Minister Recep Erdogan, who has been relentlessly vilified in western press lately, has not taken criticism against him lightly and feels outraged. On November 26, just four days after Biden’s visit to Turkey, Erdogan was quoted as saying that he is “against impertinence, recklessness and endless demands” coming from “12,000 kilometers away”, an oblique reference to USA. The deal with Putin was a way of showing diplomatic middle finger to US and EU.

Fourth, apart from the pipeline, Russia has also agreed to develop and build the entire nuclear power sector of Turkey. To see the reaction on the faces of those clueless eggheads and boneheads, the so-called intellectual heavyweights of EU and US to this deal would be priceless.

And, finally, countries like Italy, Slovakia, and Croatia etc. would have to take their gas from Turkey. It would be hard to imagine the contortions on the faces of those feckless EU leaders that would come from having to take the gas from Turkey. It is very difficult to feel sorry for them. Their own stupid actions are responsible for their misery.

Now let us consider the Russian angle.

First, it solves their perpetual headache in the form of troublesome Ukraine and provides a mean to supply their European customers uninterrupted.

Second, by turning the pipeline towards Turkey, Russia has shown what kind of economic suicide EU nations are committing by acting not as a sovereign state but as a colony of Brussels and Washington and carrying out the diktats of EU which are detrimental to their nation’s well-being. The price of this stupidity will ultimately be borne by their economies in form of lost jobs and revenue.

Third, the move thus could lead to revolt against EU and its subsequent implosion - a necessity. Hungary has defied western pressure and refused to impose sanctions on Russia. Austria has also refused to impose sanctions on Russia. Already there are grumblings by businesses in Germany against Merkel who is beginning to find herself in hot waters. The same is true with France. By reneging on the Mistral deal, Hollande is now facing not only massive penalties but loss of international face also. In addition, the ship-workers building the mistral ships are going to be out of work, thus exacerbating the already bleak unemployment situation.

Fourth and this is a wild card, if the pipeline results in Turkey’s lessening of its opposition to Assad, it would mean Russia scoring the biggest geopolitical coup.

And finally – this again is a wild card, given the fed-up attitude of the Turks regarding NATO and US (as seen by recent anti-US demonstrations), and the independence showed by the Turks for the last 10 years (starting with 2003 Iraq war which they refused to participate in), Russia might try to orient them slowly towards SCO. Again the word is -might. But, with a chance for a major independent role on the international scene and not as a vassal one of NATO, who knows, the Turks might even go for it.

And, the biggest losers are the clueless, US, EU and NATO leaders, who have been punched in the face by the Russians. They tried to force Russia to agree to their demands of third energy package by holding South Stream pipeline hostage but it did not work. Their unconstructive attitude has blown up in their faces spectacularly.

Ukraine has also seen its role reduced to zero. Since the pipeline will go through Turkey, Ukraine has lost all the leverage it had over transit of Russian gas and, thus, its importance to EU.  

But to top it all, Putin has shown countries of EU what their membership in EU really means.

Again from the same article….

….

“Incidentally, my Bulgarian colleagues have always told me that whatever happens, they would certainly implement South Stream, because this corresponds to their national interests. But here, unfortunately, this did not come to pass,” the Russian president said.

If Bulgaria is deprived of the opportunity to act as a sovereign nation, then they should at least demand money from the European Commission to compensate for their lost profits, because direct revenues to Bulgaria’s budget alone would have been no less than 400 million Euros a year. But ultimately, this is also the choice of our Bulgarian partners; it seems they have certain obligations. Still, that’s not our business - it’s our partners’ business,” he said.
[The emphasis is mine].
………


No wonder, the western MSM is in such a twist, they do not know what to say and are putting out crap pieces in media which would even make a contortionist jealous.

A Google search would bring multitude of articles but just a couple of links would suffice.

Here is a sample:


And, here is another one.


Read it and laugh.

Since US, EU and NATO are still not able to comprehend what has hit them; the only solution they seek is more sanctions which are becoming more and more laughable. Rest of the non-NATO world sees through their antics and ignores them by forging new alliances and financial systems – like BRICS and its Bank - and leaving the oppressive but slowly dying Petrodollar system behind – a system US, EU and NATO are trying to preserve.

And, that seems to be the meaning of this “Turkish Gambit” – a geo-political earthquake of magnitude 9.0.
 

Sunday, November 30, 2014

France risks losing Rafale contract with India over Mistral row??



The unnecessary row over Mistral ship, kicked up by France, is now entering tantalizing phase. Either France delivers the ships or risks losing its international reputation and lots of money in punitive damages along with jobs.

Mistral is an amphibious assault ship, also known as Helicopter carrier Ship. The ship is capable of carrying 16 helicopters, four landing craft, 70 armored vehicles and 450 troops. In addition, the ship is also equipped with field hospital. Three ships are in the service of French military and form a part of NATO's rapid reaction force. 

The deal was signed in 2010 by then Russian President Dimitry Medvedev and President Sarkozy of France. The deal was for two ships to be built in France and three more to be built in Russia. The ships were supposed to be delivered by October 2014.

But then came the chaotic events in Ukraine, the responsibility for which rests solely with US and its allies in EU. By citing the sanctions imposed on Russia by US and EU, France refused to deliver the ship by October 2014.

Russia has already threatened lawsuit and stands to gain $3 billion in fines and the return of the items used in building of the ship. Which means the ship will have to be torn apart. What a mess! But solely of Hollande's doing. 

  Mistral



Russian foreign minister Lavrov was spot on


SOCHI, November 26 (Sputnik) — France is responsible for the controversy around the delivery of two Mistral-class amphibious assault ships to the Russian navy, Russian Foreign Minister Sergei Lavrov said on Wednesday.

French President Francois Hollande announced on Tuesday the suspension of a $1.6 billion deal with Russia in light of Moscow's alleged role in the Ukrainian conflict.

"I don't want to comment on that. These are France's problems, not ours," Lavrov told reporters in Russia's Black Sea resort of Sochi.

"We are protected by contract. If France fails to meet its contractual obligations, the litigation process will not take long, I think," Lavrov said.
.............


It seems Russians are trying to knock some sense into President Hollande's head. They are trying to impress upon him not to damage long-standing Russian-French relations for the sake of the diktats of a hegemon in decline. They seem to be trying to make him understand not to damage his country's economy as well as employment situation, which is already terrible. But whether President Hollande develops any rational sense is another matter.


SOCHI, October 23 (RIA Novosti) - Russia will sue France if Paris refuses to honor a contract on construction of two Mistral-class helicopter carriers for the Russian Navy, Kremlin Chief of Staff Sergei Ivanov said Thursday.

"We will file a lawsuit and demand compensation [if the contract is not fulfilled], as it's commonly done in a civilized world," Ivanov told reporters.

"It's up to Paris to decide whether to honor the contract or not," he said.

"We share long-running history of Russian-French relations, and we would not want to see these relations being sacrificed for the sake of fleeting [political] trends, Ivanov added.
…......
(The emphasis supplied)


But every action has unintended consequences. And, the effects of Mistral row seem to have seeped into India's deal with France for 126 Rafale fighters worth $20 billion.

Consider thisreport.

..

France risks losing a contract to supply 126 fighter jets to India due to its refusal to deliver Mistral-class ships to Russia, a leading French analyst told the Delovoi Peterburg website. French officials said this week that they will not deliver the first Mistral-class amphibious warship that Russia had ordered as part of a $1.7 billion agreement for weapons sale.

The biggest repercussion would be a loss of reputation for France as a reliable supplier, Arnaud Dubien, a Russia research associate at the Institut de relations Internationales et Strategiques said. “Officials from the French Ministry of Defence, in private conversations acknowledge that if they fail to deliver the Mistral to Russia, then France will lose its contract to supply 126 fighter jets to India,” Dubien said.

......

A source in the Indian Defence Ministry said that India was “watching the developments closely.” The source added it was too early to say if this would factor into the government’s decision to sign a contract. “When such a large amount of money is paid and then a supplier uses geopolitics to delay or suspend deliveries, it does raise eyebrows,” the source, who was not authorised to talk to the media, said. The Indian Ministry of Defense could not be immediately reached for official comment.
......

Whether such a plan is afoot in the Indian Defense Ministry, we don't know. But according to above report, it seems that Mistral row is forcing Indian government to have second thoughts about the whole Rafale deal.

                                                               Rafale Jet
Update:


Another high ranking source in Indian Defense Ministry has come forward and told Sputnik news contradicting earlier reports about India threatening to cancel Rafale deal over Mistral row.


NEW DELHI, November 27 (Sputnik) — India is not planning to cancel the deal on purchasing French Rafale jets despite earlier media reports that it would do so if France refuses to deliver Mistral helicopter carriers to Russia, a high-ranking source in Indian Defense Ministry told Sputnik Thursday.
….
According to earlier media reports, India warned in September it would cancel the $20-$22 billion contract signed with French Dassault Aviation company on the supply of126 Rafale fighter jets if Paris refuses to fulfill its obligations under the Mistral contract.
…....

Whatever the report about the Rafale deal, France's reputation as “trustworthy” supplier surely seems to have taken a hit. And the events after November 30th, if it refuses to supply Mistral ships to Russia, would certainly cement it.

Charles de Gaulle must be squirming in his grave.