Link here.

By Gordon Hahn, Russian and Eurasian Politics, 8/15/23

It is being reported that Ukrainian President Volodomyr Zelenskii met with Chief of the Ukrainian Armed Forces Gneral Staff Viktor Zalyuzhnii and Chief of the Ukrainian Ground Forces Oleksandr Syrskii and that they discussed continuing the counteroffensive in the south towards Melitopol and the Azov Sea, demanding it be intensified. Zalyuzhnyi reportedly repeated his opposition to this operation because of the heavy losses. Zelenskiy responded that at the Vilnius summit NATO gave Ukraine until November to make progress in the counter-offenisive, after which time the West will begin reducing its material support for the war and expect Kiev to begin negotiations with Moscow (https://t.me/rezident_ua/18743; see also the first minutes of the Military Summary report of 14 July 2023, http://www.youtube.com/watch?v=hlTcEvkXcmg&ab_channel=MilitarySummary).

Faced now with a likely military disaster as they press ahead with a failing venture now in haste, Kiev is certain to face collapsing support from the West. As a consequence, Zelenskiy finds himself caught between several hot burning flames. On the one hand, he cannot override the opposition to negotiations with Moscow among Ukraine’s ubiquitous nationalists, ultra-nationalists, and neo-fascists, even if he has the united support for such a step from the West, which is highly unlikely at least this year. The above-mentioned nationalist and fascist elements are often as anti-Western as they anti-Russian. Thus, not just because of demands for the West but for domestic political survival, Zelenskiy must continue the counteroffensive, indeed somehow intensify it given the lack of results thus far at the present level of intensity.

Not surprisingly, the attitude prevailing in the President’s Office or ‘Bankovaya’ (as it is called locally in allusion to its location on Bankovaya Street in Kiev) is dismal, according to one source: “(O)n Bankovaya everyone realized at the NATO summit that they began to throw us under the bus, but they do it in a Jesuitical style, they smile in our face, and they negotiate with the Kremlin behind our backs. The most insulting thing for Zelensky is that we were thrown under the bus by the British, who last year did not allow us to sign the Istanbul peace treaty, and now they are talking about military assistance” (https://t.me/rezident_ua/18742). The reference to the ‘Istanbul peace treaty’ is to Boris Johnson’s March 2022 ‘mission to Kiev’, likely made at Washington’s behest, in which the West sent the message to Zelenskiy that Kiev must not sign any agreement with Moscow that had stipulations that would put an end to NATO expansion to Ukraine.

As Kiev and Washington alienate each other, blaming each other for the faulire of NATO’s Ukrainian project there are at least two potential reactions inside the Ukrainian elite. One is that the ultranationalist and neofascist wings will strengthen, with moderates and moderate nationalists becoming ultra-nationalists and ultra-nationalists becoming neo-fascists. These will lead to the fascization of the regime which Moscow has claimed is already fascist. Instead of having coopted the ultra-nationalists and neo-fascists, the Maidan regime will move fully into ultranationalist-neofascist mode. The other path is full-bore inter-factional conflict and even internecine warfare, as the regime already is beginning to eat itself in ever more accusatory mutual recriminations. Thus, on the one hand, Zelenskiy takes a grave risk in moving to talks with Moscow, which will be regarded as treason by hardliners. But on the other hand, he will be blamed by some for being duped by the West for not taking a chance on the Istanbul peace or at least ceasefire when there was a chance in April 2022 only two months into the war.

Infighting is already mounting. Kiev’s mayor and a founding force of the Maidan regime Vitalii Klichko publicly stated that Zelensky is initiating police searches of his political rivals and possible presidential candidates. Klichko is currently under investigation for alleged corruption, while Zelenskiy’s money laundering from criminal oligarch Ihor Kolomoiskii has been left unexamined. In reacting to an interviewer’s question regarding rumors that he himself could become a nominee in presidential elections, which Zelenskiy recently said cannot be held as scheduled but only after the war, Klichko responded: “Such questions are often asked to me. And then Vladimir Aleksandrovich Zelensky starts to get nervous, and then secret police searches (obyski) begin against me or other people after such questions about the presidency” (https://t.me/rezident_ua/18745). This is further confirmation of our assertions that Ukraine’s democracy was a very weak one at best and would fully self-destruct during the war (https://gordonhahn.com/2022/03/29/were-all-authoritarian-now/ and https://gordonhahn.com/2022/04/18/the-iraq-scenario-the-specter-of-ukrainian-instability-and-chaos/). But the point here is that in such desperate conditions, power struggles and coup plots find fertile soil. I have already noted the civil-military tensions in Kiev (https://gordonhahn.com/2023/07/13/cracks-in-natos-ukraine-project/). Adding intra-civilian political warfare adds another layer of instability to the dynamic.

If the situation at the front deteriorates significantly, we can expect political disturbances in Kiev that could lead to a complete collapse of the Maidan regime and Ukraine’s defenses and even spark a civil war embedded within the present interstate war. In that event, the Russians will be able to mount a decisive counteroffensive, but this will not necessarily mean an end to the chaos. Moscow may be left with a series of nationalist warlords and insurgencies to quell for several years to come. Ukraine will be awash in weapons and no small numbers of outraged ultra-natinalists and neo-fascists even after a Russian victory no matter how one might define one. This will be especially true in very anti-Russian and russophobic western Ukraine. NATO will be more than happy to finance, arm and equip the Ukrainian neofascist underground and any other insurgent elements in order to complicate Moscow’s task and keep it bogged down and unable to drive to the Polish border.

In sum, for the last 18 months the Ukrainian time bomb has only just begun to explode. Things can get far nastier for all the parties involved, but they will nastiest of all for the Ukrainian people in the broader, now quaint civic sense of the phrase that includes both Ukrainians, Russians, and the few remaining Crimean Tatars.

Link here.

Prigozhin’s Plane Crash: Conspiracies & Consequences

By Andrew Korybko, Substack, 8/24/23

Wagner chief Yevgeny Prigozhin and elite members of his group’s leadership were killed in a plane crash Wednesday evening outside Moscow in circumstances that have yet to be fully determined. Before debunking the popular conspiracy theory that President Putin was responsible and discussing the possible consequences of this incident, it’s important to clarify the deceased’s relationship to the Russian state. Here are a few relevant analyses that will then be summarized for the reader’s convenience:

* “Prigozhin Blinked After Putin Mercifully Gave Him A Final Chance To Save His Life”

* “Prigozhin Was The West’s ‘Useful Idiot’”

* “How Putin Averted A Civil War In Russia After Wagner’s Coup Attempt”

* “Lukashenko’s Suggestion To Learn From Wagner Doesn’t Mean That The Coup Was ‘Maskirovka’”

* “There’s Nothing Conspiratorial About Putin Meeting With Wagner Leaders After The Failed Coup”

In brief, Wagner’s long-running rivalry with the Defense Ministry finally spiraled out of control in late June, but President Putin peacefully resolved the crisis by de facto pardoning those involved. Some then went to Belarus while others traveled to Africa. This outcome aligned with Russia’s national interests but was spun by some members of the Alt-Media Community (AMC) as proof of a “false flag coup”. What’s indisputable, however, is that Wagner continued functioning as an instrument of the Russian state.

Prigozhin had just published a video from the Sahel in the days before he died where he declared that he was “making Russia even greater on all continents! And Africa even more free.” The regional context concerned the spate of anti-French revolts there in recent years that took the form of patriotic military coups, with the most recent one being in Niger, which is now threatened by a French-backed Nigerian-led ECOWAS invasion. Here are some analyses about Russia’s growing role in that part of the world:

* “Africa’s Role In The New Cold War”

* “Axios Exposed France’s Infowar Against Russia In Africa”

* “Analyzing President Putin’s Vision Of Russian-African Relations”

* “Russia’s Newfound Appeal To African Countries Is Actually Quite Easy To Explain”

* “American Officials Told Politico Their Plan For Waging Hybrid War Against Wagner In Africa”

And here are a couple pieces about the new West African Crisis:

* “The Nigerien Coup Could Be A Game-Changer In The New Cold War”

* “West Africa Is Gearing Up For A Regional War”

* “The Mainstream Media’s New Narrative Is That Niger Is Now A Global Epicenter Of Terrorism”

* “France Reportedly Thinks That The US Backstabbed It During Nuland’s Trip To Niger”

* “Why’s US Media Talking About Nigerien General Moussa Barmou All Of A Sudden?”

These last ten analyses are relevant to Wednesday’s incident since Wagner’s growing role in helping Sahelian states safeguard their sovereignty was speculated by some to be the reason why the West allegedly assassinated that group’s leader. While no evidence has yet to emerge in support of that theory, the previously shared analysis from early July regarding President Putin’s meeting with Wagner leaders explains why their African operations would still continue even without Prigozhin at the helm.

Having detailed the most relevant developments leading up to Prigozhin’s plane crash, it’s now time to draw attention to the AMC’s and their putative Mainstream Media (MSM) rivals’ conspiracy theory implying that President Putin had a hand in his death. The first has been pushing an old video on social media where the Russian leader says that he can’t forgive betrayal while the second has reminded everyone of US officials’ prior warnings that Prigozhin’s life was in danger.

Each camp strongly suggests that the Russian leader was responsible for Wednesday’s incident, with the AMC hinting that this was due to personal reasons while the MSM wants their targeted audience to believe that it was yet another “political killing” in a long line of many. Each requires accepting that President Putin supposedly lied when he said on national television that “I will keep my promise” to let those involved in late June’s events decide their own futures without fear of state retribution.

Not only that, but this conspiracy theory’s adherents also think that he then ordered Prigozhin’s death in one of the most dramatic ways possible, which irresponsibly risked harming innocent civilians on the ground. There are compelling reasons to doubt this version of events. For starters, the outcome of what happened and the optics connected with it are both disadvantageous to Russia’s national interests, and it’s absurd to imagine that President Putin plotted to undermine his own country like this.

Eliminating Prigozhin and elite members of this group’s leadership would be a blatant violation of the promise that he gave them on national television, and this could incite Wagner’s rank-and-file along with their supporters in the armed forces and civil society to consider anti-state actions in response. Those who are influenced by this conspiracy theory might convince themselves that they could be next, hence why they have to “act first out of self-defense”, thus setting into motion a self-fulfilling prophecy.  

It’s therefore in the West’s interests to weaponize this false perception for the purpose of manipulating highly trained forces and their sympathizers into functioning as “useful idiots” for destabilizing Russia through either another coup/mutiny attempt, terrorism, and/or a Color Revolution. Even if these scenarios don’t come to pass, the optics are still very damaging to Russia’s reputation at the leadership and state levels.

The MSM can maximally amplify speculation that President Putin signed Prigozhin’s death warrant to sow suspicions about his sincerity in signaling earlier this summer that he’s still interested in politically resolving the NATO-Russian proxy war in Ukraine. Likewise, this can also be done to mislead the international community about Russia’s political stability by making them falsely think that there’s a bloody power struggle taking place behind the scenes among competing military-intelligence factions.

On that note, it’s time to segue into the consequences of Prigozhin’s plane crash, beginning with what’s unlikely to happen before sharing a few words about what could soon follow. As was earlier written, Wagner’s African operations probably won’t be affected since it was always unrealistic to imagine that he and a few elite members were micromanaging dozens of tactical teams on the ground across various countries in real time. Morale might take a temporary hit, but the rank-and-file will eventually recover.

The West’s Hybrid War plot that was described in the preceding paragraphs isn’t expected to transpire, but even if some movement is made in that direction, then the threat to Russia’s security and stability would be manageable so nobody should prepare for “Balkanization”, civil war, or regime change. That said, the ongoing investigation will surely explore whether Wednesday’s incident was due to foul play, including scenarios of Kiev’s involvement but also possibly a rogue military-intelligence faction.

It’s premature to jump to conclusions in order to avoid functioning as the West’s “useful idiots” by either giving Kiev credit for kills that it wasn’t responsible for or sowing seeds of suspicion about Russian stability respectively, but both also can’t confidently be ruled out at this time either. After all, if there was a bomb on board like some speculate, then that would represent a major security lapse. Even if a rogue military-intelligence faction was involved, however, there’s no chance that they’ll destabilize Russia.

All told, while it remains unclear exactly what caused Prigozhin’s plane crash, President Putin certainly didn’t have a hand in it, but some in the AMC and especially the MSM will still imply otherwise. In the event that foul play was responsible, then Russia’s security services will definitely get to the bottom of it, though the state might decide that its interests are best served by not acknowledging this if it happened. In any case, this incident won’t destabilize Russia nor hinder its African activities or special operation.

By Petr Levrenin, RT, 8/14/23

If you Google “the end of the Cold War,” the search engine will instantly tell you that this event occurred on December 26, 1991, the day when the Soviet Union ceased to exist. However, this isn’t really true. Two years prior to that, the leaders of the US and the USSR officially declared the end of the confrontation that had lasted for over 40 years.

The tension that grew between the two superpowers in the 1980s was eventually eased through joint diplomatic efforts. The trust established between the Kremlin and the White House in those years not only inspired the United States to consider integrating the USSR into the new system of international relations in the early ‘90s, but also moved it to prevent the collapse of the ‘Red Empire’. 

But why did Washington suddenly become a friend of its sworn enemy? And at what point did this friendliness give way to uncompromising statements about winning the Cold War and the United States’ triumphant ‘dance’ on the ashes of its deceased enemy?

A thorny path

In the last decade of the Cold War, the situation on the global chessboard did not play out in favor of the USSR. The Soviet economy was considerably weakened by a protracted arms race, which the US only accelerated. At the end of 1983, Washington placed the first battery of Pershing II missiles in Europe. These could reach targets in the western part of the USSR in only six to eight minutes. 

At the same time, the US started talking about a new type of nuclear strike against the USSR – a ‘decapitation’ (or ‘blinding’) attack that would remove the country’s leadership before the decision to conduct a retaliatory strike could be made. In 1984, then-president Ronald Reagan launched the ‘Star Wars program’, which threatened to expand the Soviet-American conflict into outer space.

But even before these events, the Soviet leadership feverishly sought a compromise with the United States. Yury Andropov, the then general secretary, tried to reach an agreement with Washington, but his initiative was scuppered by the tragic downing of a Korean Air Lines Boeing 747, after which Reagan made his famous speech, calling the USSR an “evil empire.”

Hopes of ending the conflict instantly disappeared. Tension only increased and reached a record, 30-year high. At that point, the USSR decided continuing negotiations would be a sign of weakness on its part. The dialogue came to naught, and left both parties fearing a nuclear strike.

Everything changed when Mikhail Gorbachev came to power. Contrary to the military’s advice and without any pressure from the United States, he decided to take the first step and make concessions. First, in 1985, the leadership of the Soviet Union unilaterally imposed a moratorium on the deployment of ‘Oka’ operational-tactical missile complexes in Czechoslovakia and the German Democratic Republic (GDR). This was followed in January 1986 with the announcement by the USSR of a step-by-step worldwide nuclear disarmament campaign.

Gorbachev said at the time.

This put the ball in Washington’s court. Whether the gesture by the Soviet leader would initiate the end of the lengthy conflict depended only on the US. Ronald Reagan took the ball and ran with it. 

Long-awaited detente

A special relationship soon developed between the two leaders, and the USSR and US quickly moved from strategic arms restrictions to a more radical disarmament policy. The first joint document was the Intermediate-Range Nuclear Forces Treaty (INF), signed in December 1987, which banned short and medium-range and intermediate-range missiles. The parties pledged to destroy all complexes of ballistic and ground-launched cruise missiles of intermediate (1000-5500 kilometers) and short-medium (500-1000 kilometers) range, and not to produce, test, or deploy such missiles in the future.

At the Malta Summit in late November/early December 1989, Gorbachev and Reagan’s successor George H.W. Bush announced the end of the Cold War. The representative of the USSR’s Ministry of Foreign Affairs, Gennady Gerasimov, stated that the Yalta Agreements of 1945 (i.e., the post-war division of Europe into areas of influence) had been replaced by what he called the ‘Sinatra Doctrine’, giving the former Eastern European satellite nations the freedom to do things “their way.” The Yalta Agreements were officially buried. 

In 1990, the USSR agreed on the reunification of Germany within the framework of NATO – which essentially meant that the socialist East was swallowed up by the capitalist West. The USSR promised to withdraw its troops from the East German territories within four years, and from other countries of the Warsaw Pact even sooner. 

In the same year, Gorbachev also signed the Treaty on Conventional Armed Forces in Europe (CFE), which drastically reduced the number of Soviet troops in other parts of Europe and eliminated the possibility of a large-scale surprise attack. Within the framework of the CFE Treaty, the Soviet side had to drastically reduce its military presence and obey strict restrictions on the movement of troops. The USSR also had to carry out a large-scale redeployment of its military contingents. The new non-hostile relations between the countries of the Euro-Atlantic region were enshrined in the declaration signed in November 1990 – ‘The Charter of Paris for a New Europe’.

Gorbachev’s policy was inspired not only by altruism and a desire for peace. The main reason he revised the USSR’s foreign policy course was because he wanted to slow down the arms race, which had placed an unbearable burden on the Soviet economy.

The latter, however, does not diminish the Soviet leader’s courage. Behaving in a restrained manner and not allowing the United States – which was economically and technically superior to the USSR – to drag the country into another round of an intensifying arms race was a policy that past generations of Soviet leaders could not even imagine.

Hungry hawks

Gorbachev’s calculations seemed to be right. In May 1991, George H.W. Bush declared that the United States wanted to move away from the policy of containment and “integrate the Soviet Union into the commonwealth of the peoples.” At the time, he had a series of meetings with Gorbachev that largely determined the further actions of both sides.

The process of stabilizing international relations continued, and in the summer of the same year, the START-I treaty was signed, which significantly limited the nuclear arsenals of both powers.

Not everyone, however, was happy with how things were going. Despite the fact that many positive changes occurred and the threat of a global nuclear war was resolved, Bush was criticized in the United States for treating the USSR too favorably. For example, before the August Coup [an attempt by Soviet reactionaries to carry out a coup d’état and remove Gorbachev from power – RT], the White House had been reluctant to contact president of the Russian Soviet Federative Socialist Republic (RSFSR) Boris Yeltsin and his entourage, and, in July 1991, Mikhail Gorbachev was even invited to London for the G7 summit. 

All this greatly displeased the ‘hawks’ in the US (for example, then-secretary of defense Dick Cheney and former president Richard Nixon), who believed that with the technology and loans provided to it, the USSR could pose an even greater threat than before. These circles of the American establishment wanted to take advantage of the internal problems that came up during democratic reforms in the Soviet Union and thereby secure its collapse.

However, Bush preferred negotiations with the socialist regime over its imminent collapse. The White House feared that, if civil war were to break out in the USSR, its nuclear arsenal could be dispersed all over the world.

The US president’s position was clearly stated in his August 1, 1991 speech in Ukraine, which journalists dubbed the ‘Chicken Kiev speech’.

Supporters of an independent state eagerly anticipated the US leader’s arrival in the capital and hoped that he would support democratic trends in the republic. But the White House decided otherwise. Bush declared that the separation of the Ukrainian SSR or other Union republics from the USSR was inadmissible. “Americans will not support those who seek independence in order to replace a far-off tyranny with a local despotism. They will not aid those who promote a suicidal nationalism based upon ethnic hatred,” Bush said during a solemn meeting of the Supreme Soviet of the Ukrainian SSR.

Nevertheless, the USSR collapsed a few months after Bush’s Kiev visit. Some 23 days after his speech, Kiev adopted the ‘The Act of Declaration of Independence of Ukraine’ and, four months later, it was confirmed by referendum. Soon enough, the other republics also left the Soviet Union.

A world without peacemakers

The events of 1991 took not only the USSR, but also the US by surprise. For over 40 years, American elites wanted to win the Cold War, but it turned out that they were completely unprepared for victory. The Bush administration was even forced to support Gorbachev in his struggle against Yeltsin and other Republican leaders who wanted to dissolve the Soviet Union. 

Except for some fierce ‘hawks’, no one in the USA really wanted the USSR to collapse. The US goal was to dismantle the socialist system outside of the Soviet Union. Americans were interested in dissolving the Warsaw Pact and the Council for Mutual Economic Assistance (COMECON). They wanted Soviet troops to withdraw from the socialist countries in Eastern Europe and for the USSR to stop providing military and economic assistance to regimes in Africa, Asia, and Latin America.

In fact, all the key issues of the Soviet-US confrontation were resolved in favor of the United States even before 1991, and prior to the collapse of the USSR. In the last years of the ‘80s, arms limitation treaties were signed, the Warsaw Pact and COMECON were dissolved, and the USSR began gradually withdrawing its troops from Europe. In 1990, the article of the USSR Constitution on the leadership role of the CPSU was abolished – the ‘Red Empire’ was no longer the ‘moral authority’ for socialist regimes worldwide. 

The collapse of the USSR, however, brought a risk of political instability to Europe (considering not only the nuclear, but also the conventional weapons remaining in Soviet arsenals) and would deprive the United States of a 300 million-strong sales market united by common economic chains and a joint customs space. If the Soviet Union had not collapsed, American corporations would have had access to its huge reserves of oil, gas, and other minerals. Moreover, preserving the USSR in a weakened state was also beneficial for the US foreign policy model. The Soviet Union was no longer strong enough to challenge the United States, but it could have become a convenient partner for solving global security problems.

In the first years after the Cold War, the United States was in no hurry to attribute victory to itself and adopted the stance of an equal partner towards the Russian state.

According to the director General and member of the Presidium of the Russian Council for International Affairs, Andrey Kortunov, the victory of the US wasn’t as important as the defeat of the USSR for the Bush administration. However, under the administration of his successor, Bill Clinton, Americans adopted the concept of a ‘unipolar world’. Declaring that they had defeated the Soviet Union, they attempted to instill ‘democratic’ doctrines in the Middle East and Central Asia.

In 1992, the Clinton administration embarked on a much more aggressive course in the post-Soviet space, consolidating its position as the winner of the Cold War and establishing US dominance. Under Clinton, the policy of containing Russia became more systematic and intense. The United States tried not only to make the most of the collapse of the USSR, but also attempted to prevent the emergence of a Russian-centric economic and political space in of the former Soviet empire.

By Petr Lavrenin, Odessa-born political journalist and expert on Ukraine and the former Soviet Union

Below are a few different articles and sources regarding the BRICS Summit taking place from 8/22 to 8/24. – Natylie

BRICS summit aims to challenge Western hegemony

The BRICS summit will attempt to create a new play in the world order amongst the members of the Global South that can challenge the Western hegemony

By Ben Aris, Intellinews, 8/21/23

On the eve of the BRICS summit, which got underway in South Africa on Tuesday (August 22), Russian Foreign Minister Sergey Lavrov wrote in an article for the local magazine Ubuntu that the meeting would begin the process of expansion of the bloc in order to create “a just world”.

Many outsiders have scoffed at the idea of the BRICS bloc (Brazil, Russia, India, China and South Africa) becoming a potent political force in the world as its member countries have little in common, other than they are big and underdeveloped.

Jim O’Neill, the legendary Goldman Sachs analyst who coined the term in 2001, called the idea of a political bloc “ridiculous” in a recent interview with the Financial Times. BRIC as a political entity was founded in 2006 in an inaugural summit in Russia’s Yekaterinburg. O’Neill pointed out that his original criteria for being a “BRIC” included being a big country, have a big GDP and have a lot of people.

By this measure, he says that South Africa, which joined in 2010, should never have qualified, as it is dwarfed by its peers, but an expanded BRICS would make more sense if the Kingdom of Saudi Arabia (KSA) is included.

However, the one thing that does unite all the countries is they are developing fast and feel that the emerging world is under-represented in the global architecture, which remains dominated by the developed world, led by the United States.

In other words, they agree with Russian President Vladimir Putin’s complaints about the “unipolar” world run by Washington and want a “multipolar” world where they have their proper say in how the world is run, given the EMs now collectively are richer than the West (in PPP terms) and have more people.

The salient point here is that increasingly the EMs are not “emerging” anymore. Countries such as Russia and China have already emerged, albeit with a lot of work left to do before they can be called “mature”.

In this context, this BRICS summit is extremely important as its members are just starting to work on how they will cooperate to counter the West. And “counter” is what they are going to do as the West has made it clear it is not willing to “cooperate”; the West feels it’s entitled to rule the world rather than embrace the new world on equal terms.

Several things point to these rising tensions. US Secretary of State Antony Blinken’s first policy speech naming Russia a “threat” and China a “rival”. French President Emmanuel Macron’s attempt to mediate in Ukraine, by suggesting not that the European Union embrace East and West but emerge as a “third superpower” – in other words, the EU joins the US as a co-hegemon.

What Putin has been arguing for (rhetorically at least) is a truly global community of cooperation and mutually beneficial trade and investment that is governed by something like the UN. The political models are also very different, which is another source of tension. Russia and China have rejected the so-called Washington consensus, where individual freedoms lie as a foundation, and are pushing a Moscow consensus alternative which emphasises the state over the individual, among other things.

However, Putin is the only one that has crystallised this rivalry to the point where he was prepared to go to war with the West and break off relations completely. Putin assumes that he can build a future by doing business with the non-aligned countries of the world. And while there is plenty of business to be done in the Global South, he has also reduced Russia’s growth potential as a result of sanctions and many economists believe the Russian economy will stagnate in the long-term as a result.

Building blocs

The desire of the emerging Global South to have a seat at the world’s top table and Russia’s clash with the West have catalysed some frenetic global diplomacy as Western and Russian diplomats are travelling the world trying to shore up support.

China is playing a major role in promoting the BRICS, as bne IntelliNews reported. Although it is Russia that is in direct conflict with the West, China openly challenged the US role as leader of the world with a three-day trip to Moscow in March, when Beijing openly backed Russia in its conflict with the West. China also released a 12-point peace plan for Ukraine on the anniversary of the start of the war, seeking to position itself as an impartial mediator in the dispute.

Together with Russia, China is actively promoting the idea of a BRICS bloc that can be extended to a BRICS+ group that can stand up to the existing US-led Western hegemony.

Africa has become an important part of this way and is relevant in a way that it was never before, as bne IntelliNews described in a deep dive titled “Russia in Africa”.

The confrontational nature of what the BRICS summit is intended to achieve has also been highlighted by the fact that both France and the US, amongst other Western powers, applied for accreditation to attend the BRICS summit and were refused.

Against that South Africa bent over backwards to allow Putin to attend in person, but an International Criminal Court (ICC) warrant for his arrest for kidnapping children from Ukraine meant that Pretoria would have been forced to arrest him if he did attend. In the end, he will join by video link.

None of the other countries in the Global South are prepared to follow Russia into open conflict with the West and would prefer to maintain their good relations with the West. South African President Cyril Ramaphosa was explicit the day before the summit started, saying Pretoria “will not choose sides in a fractured world.”

The Global South agrees with Putin that the West needs to be challenged but at the same time they concede they are still behind the West on many counts, so they want to continue to cooperate. The upshot is at the BRICS summit the Global South members need to work out how they can better work together to improve their collective bargaining position in future negotiations, as well as to make the basic decision on what sort of organisation BRICS wants to be: a trade club or a political challenger to the existing world order.

It’s not for nothing that the main debate at the meeting will be on who else to let in and what are the criteria for admitting new members.

On August 21, Nelson Kgwete, a spokesman for the agency, told TASS that leaders from over 40 countries would take part in the BRICS summit from August 22-24 and a decision may be made to expand this club from its original five members. Some 23 countries have submitted official applications for joining BRICS, according to the South African foreign ministry.

Who gets in and what the criteria will be to judge applicants remains the main item on the summit’s agenda. There is currently no consensus on how to admit new members, nor even what sort of organisation they are trying to build.

The frontrunners for membership are Argentina, Saudi Arabia and Indonesia. Iran’s application is also making headway, Iran’s deputy foreign minister for economic diplomacy, Mehdi Safari, said on August 1.

Iran is suffering from the same pariah status as Russia and even if it doesn’t become a full member of the BRICS, Tehran will continue to actively expand its relations with the group which have already begun, Iranian Foreign Minister Hossein Amir Abdollahian said on August 8.

Algeria is currently doubling its efforts to join the BRICS group of emerging markets as the North African country’s President Abdelmadjid Tebboune pushed for the move during a four-day visit to China in July. Morocco formally submitted an application to join in August, and Brazilian President Luiz Inácio Lula da Silva has been championing membership for Venezuela, another victim of US sanctions.

Yaroslav Lisovolik, a well-known Russian analyst and founder of BRICS + Analytics, says that the inclusion of Indonesia and the KSA are the most compelling, as of all the candidate regions of the Global South, only the Middle East and Southeast Asia are not represented in the BRICS core group.

Ramaphosa said on the eve of the summit that his country supports the expansion of the alliance. “An expanded BRICS will represent a diverse group of countries with different political systems that share a common desire for a more balanced world order,” he said. According to Ramaphosa, “the value of BRICS goes beyond the interests of its current members.”

But Ramaphosa added a common caveat, saying that his country “will not be embroiled in rivalry between world powers”, and adding that South Africa remains committed to a policy of non-alignment.

While all the BRICS members are open to expanding the group, very basic questions on how to go about this remain unanswered. India and China, in particular, have very different visions of what the bloc should look like.

The key question is: should BRICS be a club that protects only the economic interests of developing countries, or should it become a real political force that openly challenges the West?

China, which has openly supported BRICS expansion, along with Russia, wants the bloc to be political and to challenge the West directly. India, like South Africa, prefers the first option of mutual respect and improved commerce, and will work to avoid conflict with the West. Brazil has real qualms about an expansion, arguing that adding too many members would dilute the power and authority of the group.

Amongst the ideas being discussed include strengthening economic cooperation through the New Development Bank (NDB), TASS sources reported: countries admitted to membership of the development bank will be able to participate in various formats of the BRICS group without formally joining the group. Another concept involves the direct acceptance of new countries as permanent members of the association based on sponsorship by existing members.

And even if the political model is not adopted, the economic argument is compelling in its own right. In 2023 the BRICS countries will provide a greater contribution to global economic growth than the G7 countries – 32.1% versus 29.9%, reports Bloomberg. According to forecasts, by 2040 the BRICS countries will account for half of world industrial production – twice as much as the G7 countries. The global centre of gravity is already moving inexorably eastwards.

BRICS currency

The process of building an alternative to the Western hegemony amongst the members of the Global South is right at the start and it will face many practical problems. None highlights the challenges better than the problem of setting up an alternative currency to the dollar for international trade.

Russia and China want to de-dollarise their economies and have already gone a long way towards switching their mutual trade to national currencies. But the BRICS members have called for a new “BRICS currency” to be introduced similar to the euro.

The idea is popular with many countries, particularly those that have found themselves under US sanctions. Russia and China are already settling increasing amounts of their mutual trade in their own currencies. And the Iranian government has backed the creation of a gold-backed currency to compete with the US dollar, IRNA reported on July 9.

One of the unintended consequences of the SWIFT sanctions that were imposed only days after Russia’s invasion of Ukraine in February is the rest of the world has been unsettled by the realisation that the US can arbitrarily freeze their international reserves as so many countries have invested these reserves in US treasury bills that were considered to be the safest investment in the world. That is no longer true, and while the dollar remains the dominate currency for settling international trade deals, its share in sovereign international reserves has already started to fall.

However, the issue of introducing a single currency is not on the agenda of the upcoming summit. As bne IntelliNews reported, introducing a BRICS currency still faces many major hurdles and won’t appear anytime soon. What will happen at the summit is that many BRICS+ countries will agree in principle to the more active use of national currencies in trade settlements among themselves.

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Putin’s BRICS Speech

Link here. Written transcript here.

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Putin’s Speech At The BRICS Business Forum Was Fair & Balanced

By Andrew Korybko, Substack, 8/23/23

President Putin delivered a fair and balanced speech at the BRICS Business Forum on Tuesday that can be read in full at the official Kremlin website here. It defied the Mainstream Media’s expectations by only mildly criticizing the West but not haranguing it, while some multipolar supporters might have been dissatisfied with his moderate vision of the alternative economic-financial system that BRICS is building, which avoided the hype that many have pushed. The present piece will elaborate on this and more.

The Russian leader’s criticisms of the West concerned its irresponsible fiscal policies during the pandemic, illegal sanctions, and other unilateral violations of “norms and rules that not so long ago seemed immutable.” As for his observations about the emerging order, he focused mostly on BRICS’ growing use of national currencies in intra-organizational trade and investments, its role in facilitating the Global South’s development, and Russia’s two new logistics corridors across Eurasia.

Before going any further, some clarifications are in order regarding the impressive statistics about BRICS that President Putin shared in his speech, which are republished below for the reader’s convenience:

“The figures speak for themselves. Over the last decade, mutual investments among the BRICS countries have increased six-fold. Their overall investments in global economy have doubled, and their total exports have reached 20 percent of the world exports.

As for Russia, the trade volume with our BRICS partners has increased by 40.5 percent, reaching a record of over 230 billion US dollars. In the first half of this year, it grew by 35.6 percent compared with the same period in 2022 and constituted 134.7 billion US dollars.

I would also like to point out that the share of the BRICS countries, with their population totaling more than three billion people, now accounts for nearly 26 percent of the global GDP; our five countries are ahead of the G7 in terms of purchasing power parity (the forecast for 2023 is 31.5 percent against 30 percent).

The objective and irreversible process of the de-dollarization of our economic ties is gaining pace. We are working to fine-tune effective mechanisms for mutual settlements and monetary and financial control. As a result, the share of US dollar in export and import operations within BRICS is declining: last year it stood at only 28.7 percent.”

All of this is true, but left unsaid is that it’s largely attributable to China’s outsized economic-financial role in each of the other four BRICS economies.

The six-fold increase in mutual investments among the BRICS countries and their doubling of global investments isn’t due to Brazil, Russia, India, or South Africa. Rather, it’s the direct result of China’s Belt & Road Initiative (BRI) investments in BRICS (except India) and the rest of the world in the decade since this series of global megaprojects was unveiled in 2013. The same can be said about de-dollarization, which is mostly driven by the growing use of the yuan in bilateral trade with China.  

To be sure, the ruble is also being used more frequently nowadays in the 18 months since the start of Russia’s special operation and the West’s imposition of sanctions, as is the rupee when it comes to India’s unprecedented imports of its decades-long strategic partner’s newly discounted energy. Nevertheless, this recent trend alone doesn’t suffice for explaining the impressive de-dollarization statistic that President Putin referenced in his speech.

The reader should also bear in mind that BRICS’ 20% share of global exports, more than three billion people, 26% of global GDP, and high purchasing power parity is largely due to China and to a lesser extent India, which is now the world’s fifth-largest economy and the fast-growing major one worldwide. If China was removed from these calculations, not to mention India as well, then BRICS’ statistics would be a lot less impressive.

These clarifications aren’t to suggest that BRICS is dominated by China nor that it’s doomed to fail in its noble goal of gradually reforming the global financial system, but simply to point out the leading role that the People’s Republic has thus far played in leading the aforesaid process. The other members and the rest of the Global South are eager to do more since they have a shared interest in equally shaping the emerging Multipolar World Order at this unique historical moment.

Unipolarity has indisputably ended after the West failed to coerce the Global South into complying with its demands to sanction Russia and arm Ukraine, but multipolarity has yet to fully form. It’s in the midst of this global systemic transition that BRICS is holding its 15^th summit, hence why many have such high expectations about this event, some of which are unrealistic and were clarified by Russian officials here and here. President Putin’s speech shed more light on how Russia envisages everything unfolding.

From the Kremlin’s perspective, it’s imperative to expand logistics cooperation with China and India via the Northern Sea Route and the North-South Transport Corridor (NSTC) respectively since these three Great Powers’ RIC format serves as the de facto core of BRICS. The latter initiative is especially significant since President Putin also foresees it “providing opportunities to increase cargo transportation between Eurasian and African countries.”

On that topic, the Russian leader also reaffirmed that his country will remain a reliable provider of agricultural products, fertilizer, and energy to Africa, with this of course being facilitated by the NSTC and future logistics projects on that continent itself. Altogether, President Putin’s approach to BRICS can be summarized as prioritizing logistics cooperation with the group’s RIC core, diversifying Russia’s commodities-driven role in Africa’s development, and supporting more de-dollarized South-South trade.

The last part is where BRICS as a whole can help the most if its other members begin scaling their multidimensional engagement with the Global South (primarily Africa) in parallel with giving these same countries a greater say in the emerging financial system by formalizing the group’s relations with them. India and Russia are leading efforts to gently diversify from BRICS’ present Sino-centricity in all respects while Russian geo-economic guru Yaroslav Lissovolik’s BRICS+ concept satisfies the second objective.

All told, President Putin’s fair and balanced speech at the BRICS Business Forum went a long way towards correcting the slew of false perceptions that many have of this group and Russia’s vision of its future. He essentially conceptualizes it as RIC+ in the sense that Russia, India, and China are coordinating their efforts to accelerate financial multipolarity processes with a view towards creating an inclusive South-South integration platform. It’ll take time to complete, but everything’s moving in the right direction.