Pedro Gonzalez: Servant of the Corrupt (Zelensky)

Volodymyr Zelensky in the television show Servant of the People

By Pedro Gonzalez, IM1776.com, 5/27/22

In February 2021, by order of President Volodymyr Zelensky, Ukraine shut down three domestic television channels, accusing them of spreading Russian “propaganda.” Three months later, Zelenksky arrested Viktor Medvedchuk, who was at the time leading the second-biggest party in Ukraine’s national parliament, the pro-Russia and Eurosceptic Opposition Platform for Life (OPZZh).

Zelensky didn’t have trouble incinerating vaunted democratic norms well-before Russia crossed the Rubicon into Ukraine this year. So it was no surprise when he did it again amid the war in late March, invoking emergency powers under martial law to nationalize TV channels and ban 11 opposition parties, including OPZZh — all supposedly done in the name of combatting Russian misinformation and Russian sympathizers, even though OPZZh’s then-chairman, Yuriy Boyko, denounced the war and called for a ceasefire and the withdrawal of Russian troops from Ukraine. Zelensky, however, wouldn’t miss another opportunity to clip the wings of political opposition in his country, certainly not now that Western media rationalizes and glorifies his every move.

But the portrait of the Ukraine President as a democratic paragon whitewashes the real Zelensky and conceals a vast web of corruption and international skullduggery of which Ukraine is situated in the centre. Understanding the real Zelensky, requires seeing him as a creation of Ukrainian oligarch Ihor Kolomoisky. He is, in truth, a puppet of intrigue.

The Pandora Papers

It might be hard to believe now, but revelations from documents in the Pandora Papers — millions of files from offshore service providers leaked to the International Consortium of Investigative Journalists and shared with partners around the world — sent Zelensky reeling last year, threatening to end his political career. Though the actor-turned-politico campaigned as an anti-corruption reformer, the Pandora Papers showed him to be just as crooked as his predecessors.

Of more than 300 politicians and public officials, including several current and former national leaders, in more than 91 countries and territories to whom the documents were linked, Ukraine was home to more secret offshore holdings than any other, including Russia. The Organized Crime and Corruption Reporting Project (OCCRP), which contributed to the investigation, found that just before Zelensky was elected president, “he gifted his stake in a key offshore company, the British Virgin Islands-registered Maltex Multicapital Corp., to his business partner — soon to be his top presidential aide. And in spite of giving up his shares, the documents show that an arrangement was soon made that would allow the offshore to keep paying dividends to a company that now belongs to his wife.”

As it was with crackdowns on free speech and political opposition, Zelensky’s office attempted to justify the use of offshores by blaming the specter of Russian aggression. An adviser to Zelensky’s chief of staff said the offshores were necessary to “protect” the group’s incomes against the “aggressive actions” of the “corrupt” regime of former President Viktor Yanukovych, who was ousted in a US-backed color revolution in 2014. The expensive properties acquired by Zelensky associates in the center of London with the offshores, it seems, were but humble havens for persecuted Ukrainians.

It was true that Zelensky and his partners in a television production company, Kvartal 95, set up a network of offshore firms dating back to at least 2012. That was also the year the company began producing regular content for TV stations owned by Kolomoisky, Ukraine’s most flamboyant oligarch and Zelensky’s key backer.

The Raider

Kolomoisky is known to have intimidated guests by feeding a live shark he kept in a huge aquarium at his Dnipropetrovsk office, and has even reportedly ordered contract killings. If he did not exist, Richard Marcinko would likely have invented him as a villain in one of his Rogue Warrior novels.

Kolomoisky co-founded and was until 2016 the main owner of PrivatBank, Ukraine’s largest commercial bank, as well as PrivatBank Group, a global business coalition whose control extends across thousands of companies in virtually every industry from Ukraine, the European Union, Georgia, Russia, the United States and elsewhere. He denies having or needing influence over the President, but when the International Monetary Fund ended talks with Zelensky’s government after failing to reach a new lending agreement in 2019 (citing pervasive corruption) Kolomoisky, asked in an interview who would win if Zelensky was forced to choose between him and IMF loans, answered: “I would.” Ukrainian media has noted that Kolomoisky has not denied financing Zelensky’s campaign.

Kolomoisky built his enormous fortune atop PrivatBank primarily as a ‘raider’. In a story for Harper’s Magazine about Zelensky’s backer, Andrew Cockburn colored in the meaning of that term with the help of Matthew Rojansky, director of the Kennan Institute at the Woodrow Wilson Center for International Scholars. There are firms in Ukraine “registered with offices and business cards, firms [that specialize in] various dimensions of the corporate raiding process, which includes armed guys to do stuff, forging documents, bribing notaries, bribing judges,” said Rojansky to Cockburn. And according to Rojansky, Kolomoisky is “the most famous oligarch-raider, accused of having conducted a massive raiding campaign over the roughly ten years up to 2010.” At some point, he managed to end up on the United States’ visa ban list, prohibiting him from entering the country.

But the interests of the oligarch go well-beyond cutthroat business dealings, overlapping with Washington’s affairs in the region.

Between 2013 and 2014, the U.S. backed a color revolution in Ukraine that resulted in regime change. It also triggered a civil war between government forces and pro-Russian separatists in the eastern part of the country who declared independence from Kiev. Amid this crisis, acting President Oleksandr Turchynov appointed Kolomoisky governor of Dnipropetrovsk Oblast. He turned his workforce into a private army to combat the separatists. Yet even as Kolomoisky morphed into a warlord, he did not neglect his business empire.

Washington-Approved Oligarch

In 2014, the IMF approved emergency aid to Ukraine and injected billions into the National Bank of Ukraine — the country’s central bank — to support local commercial banks. Through a globe-spanning scheme involving PrivatBank accounts and PrivatBank Group companies and a corrupt Ukrainian court system, Kolomoisky looted billions in IMF aid. The con, as revealed in a series of court judgments, was outlined as follows by Cockburn:

Forty-two Ukrainian firms owned by fifty-four offshore entities registered in Caribbean, American, and Cypriot jurisdictions and linked to or affiliated with the Privat group of companies, took out loans from PrivatBank in Ukraine to the value of $1.8 billion. The firms then ordered goods from six foreign “supplier” companies, three of which were incorporated in the United Kingdom, two in the British Virgin Islands, one in the Caribbean statelet of St. Kitts & Nevis. Payment for the orders — $1.8 billion — was shortly afterwards prepaid into the vendors’ accounts, which were, coincidentally, in the Cyprus branch of PrivatBank. Once the money was sent, the Ukrainian importing companies arranged with PrivatBank Ukraine that their loans be guaranteed by the goods on order.

But the foreign suppliers invariably reported that they could not fulfill the order after all, thus breaking the contracts, but without any effort to return the money. Finally, the Ukrainian companies filed suit, always in the Dnipropetrovsk Economic Court, demanding that that foreign supplier return the prepayment and also that the guarantee to PrivatBank be cancelled. In forty-two out of forty-two such cases the court issued the identical judgment: the advance payment should be returned to the Ukrainian company, but the loan agreement should remain in force.

During this period, Kolomoisky kept his portfolio of activities diverse. Twenty fourteen was also the year when then-Vice President Joe Biden’s son, Hunter Biden, reportedly joined the board of Burisma, a Ukrainian energy company to which Kolomoisky has been connected with a controlling interest, according to the New York Post. Emails obtained by the Post revealed that Vadym Pozharskyi, a Kolomoisky protégé, communicated with Hunter in 2015 about a meeting between Pozharskyi and then-Vice President Biden. Further, bank records of Hunter (lawfully obtained according to D&A Investigations) show payments made to him by PrivatBank.

By 2015, Kolomoisky was onto his next controversy, the one that would ultimately lead to Zelensky’s rise.

In March of that year, Kolomoisky’s men physically seized control of Ukrnafta, the largest oil and gas producer in the country, and UkrTransNafta, which controls virtually all oil pipelines in Ukraine. This was Kolomoisky’s way of showing his disapproval of the government’s timid reform efforts, which posed a direct threat to then-President Petro Poroshenko’s power. Poroshenko thus turned to Washington for help — namely, then-Assistant Secretary of State for European and Eurasian Affairs Victoria Nuland and Geoffrey Pyatt, who was U.S. Ambassador to Ukraine at the time.

Nuland is an interventionist married to arch-neoconservative Robert Kagan. She’s been called “the architect of American influence in Ukraine,” was instrumental in regime change, and has served in every presidential administration except Trump’s since Bill Clinton’s days. People like Nuland are why presidents come and go, but interventionist foreign policy always remains.

With D.C.’s help, in exchange for him backing down, Poroshenko successfully removed Kolomisky from the visa ban list, among other things. Importantly, Pyatt and Nuland looked the other way on Kolomisky’s IMF scheme, even as Washington persecuted other oligarchs.

Meanwhile, at the same time that it ignored Kolomoisky’s corruption, the State Department attempted to extradite Ukrainian oligarch Dmitry Firtash for a bribery incident that allegedly took place in India. However, his real crime was holding ties to the government Nuland had a role in toppling as well as his association with deposed Ukrainian President Viktor Yanukovych. When Firtash appealed against his extradition, a European judge agreed and concluded that “America obviously saw Firtash as somebody who was threatening their economic interests.” Nevertheless, Washington has a long memory, and Firtash may end up standing trial in the U.S after all.

Even as he was removed from the U.S. banned list, Kolomoisky allegedly continued to embezzle and defraud PrivatBank of huge sums. Some of his schemes spilled over onto American soil.

According to the Justice Department, from approximately 2008 through 2016, Kolomoisky obtained fraudulent loans and lines of credit as part of a massive scheme totaling at least $5.5 billion, i.e. roughly equal to five percent of Ukraine’s gross domestic product at the time. In the U.S., millions of those dollars were allegedly laundered through commercial real estate purchases from Ohio to Kentucky and Texas. Furthermore, Zelensky’s benefactor allegedly purchased a dozen steel mills in small towns across America, leaving in his wake bankrupt factories, unpaid taxes, rotting buildings, and hundreds of steelworkers out of jobs.

By nationalizing PrivatBank in 2016, Ukraine effectively put the burden of a multi-billion dollar bailout on the shoulders of taxpayers.

The Servant of the People

Kolomoisky would have his revenge for what happened in his domain. The confrontation with Poroshenko, which was seen as humiliating for the oligarch, concluded in March 2015.

By October, the first episode of a new show, Servant of the People aired on Ukraine’s 1+1 channel, in which Zelensky played the leading role: a high-school history teacher who unexpectedly becomes President of Ukraine and is committed to fighting government corruption. 1+1 is owned by the 1+1 Media Group, one of the largest Ukrainian media conglomerates, whose owner, according to the Atlantic Council, is none other than Kolomoisky himself, giving him “significant political influence in today’s Ukraine. His media assets were used to promote the 2019 election campaign of President Zelenskyy, whose hit shows previously aired on Kolomoisky’s network.”

The Servant of the People series itself was produced by Kvartal 95, the company founded by Zelensky, whose partners were implicated in a network of offshores by the Pandora Papers. After Zelensky’s ascension, key figures of Kvartal 95 joined Zelensky’s administration. Ivan Hennadiyovych Bakanov, for example, went from head of the production studio to the leader of the Security Service of Ukraine under Zelensky.

The show literally created Zelensky’s presidential persona, effectively allowing him to build an unofficial campaign against the incumbent administration until March 2018, when a political party named after the television series was registered with the Ministry of Justice. In December 2018, Zelensky officially announced his presidential candidacy on 1+1.

Zelensky, the creation of an oligarch, campaigned for president as the character he played in a comedy series with a party named after the show to victory in 2019. During the race, Volodymyr Ariev, a political ally of incumbent President Poroshenko, posted a chart on Facebook claiming it showed how Zelensky and his television production partners were beneficiaries of a constellation of offshore firms which allegedly received millions from Kolomoisky’s PrivatBank.

The allegations were dismissed as baseless at the time, but the Pandora Papers revealed that information on several companies in the network corresponded with Ariev’s chart, the OCCRP noted.

Shortly after taking the reins, Zelensky and his Servant of the People party began firing, supposedly for inefficiency, Ukrainian ministers with reputations as anti-corruption reformers. Daria Kaleniuk, head of Ukraine’s Anti-Corruption Action Center, told the Washington Post in March 2020 that the affair sent the message that Zelensky “can fire a person who takes a risk, for doing the right things, and blame this person for inefficiency.” Kiev-based reform reporter Oleg Sukhov echoed the sentiment last year, writing that “Zelensky has consistently protected corrupt officials from prosecution and killed anti-corruption reforms.” On the other hand, when faced with a petition calling for his dismissal, Zelensky refused to fire Oleh Tatarov, his deputy chief of staff, who had been charged with bribery.

The people put on the chopping block were also the ones most likely to threaten the power of oligarchs like Kolomoisky, from whom Zelensky may have learned a thing or two.

In a 2020 press conference, he remarked that he wanted to be “remembered as the president who built good roads in Ukraine.” One of the handful of construction companies that have received a significant share of state funds for building public roads during his tenure is PBS LLC, which is linked to Skorzonera LLC, a company co-owned by Kolomoisky, according to corporate records.

PBS has been accused by Ukrainian investigators of misappropriating millions in state funds for road work. A ruling by a court in Ivano-Frankivsk Oblast noted that together with the Kolomoisky-controlled Skorzonera it is connected as part of a web of related business entities with overlapping addresses and personnel. PBS and Skorzonera had even sent their tax declarations from the same IP address.

Notably, former Customs Minister Maxim Nefyodov was one of the reformers fired by Zelensky. Nefyodov is most well-known for having created ProZorro, a system designed to tackle corruption in Ukraine’s public procurement sector.

After dismissing Nefyodov, Zelensky’s party used its majority to pass legislation that would allow the most expensive road construction project in modern Ukrainian history to be built with zero oversight, ProZorro exempt. Last June, the Kyiv Post reported how Zelensky “has doubled spending on road repairs, reaching into the pocket of the COVID relief fund and spending money Ukraine has won in international courts.” An interesting source of cash, considering that the IMF approved a multi-billion dollar aid package in 2020 “to help Ukraine to cope with COVID-19 pandemic challenges by providing balance of payments and budget support.” Is it possible that Zelensky has taken a page out of Kolomoisky’s book by taking liberties with international aid? It’s hard to say for certain.

Also unclear, is why the State Department decided to once again sanction Kolomoisky last March after he was taken off the bad list despite his own international scheming. In a press statement, Secretary of State Anthony Blinken said the reason was “due to his involvement in significant corruption.” But they were aware of that when they put him on and took him off the list the first time. Stranger still, Blinken specifically cited the years 2014 to 2015, when Kolomoisky “was involved in corrupt acts that undermined rule of law and the Ukrainian public’s faith in their government’s democratic institutions and public processes, including using his political influence and official power for his personal benefit.”

Again, this is not a revelation, considering that Nuland played a role in getting Kolomoisky off the list the first time during that period, back when Blinken served as Deputy National Security Advisor under Obama. Blinken didn’t even mention Kolomoisky’s alleged plundering in America.

Puppet of Intrigue

In 2019, just after Zelensky won his election, Kolomoisky signaled that he was prepared to pour oil over troubled waters and make peace with Russia. The civil war in eastern Ukraine has so far claimed more than 14,000 lives. The oligarch said it was enough: “They’re stronger anyway. We have to improve our relations,” he said about Russia and Ukraine according to the New York Times. But he also saw an obstacle: “People want peace, a good life, they don’t want to be at war. And you [Washington] are forcing us to be at war, and not even giving us the money for it.”

Did the U.S. sanction Zelensky’s patron, the way it did Firtash, to nudge him in the right direction?

In the latter case, the U.S. threatened to arrest Firtash for bribery to pressure Yanukovych into signing a trade deal with the EU. But the deal was, in reality, a ploy to destabilize Russia’s economy.

Despite being characterized as merely “pro-Russian,” Yanukovych, as The Economist explained, preferred “to preserve the status quo and refrain from joining either camp while continuing to milk [the EU and Russia].” And so the United States squeezed his friend to encourage Yanukovych to tilt in the desired direction. “If Yanukovych were to be persuaded to change his mind, threatening to put his sponsor Dmitry Firtash behind bars was a potent lever to apply,” wrote Cockburn. “Four days later, Yanukovych signaled he was ready to sign, whereupon Washington lifted the request to shackle his billionaire ally.”

But Yanukovych changed course and accepted a counteroffer from Moscow, a moment that became the flashpoint for a color revolution. Still Cockburn: “Street protests in Kiev followed, eagerly endorsed by Nuland, who subsequently distributed cookies in gratitude to the demonstrators.”

Yanukovych fled Kiev on February 22. Four days later, Washington renewed its efforts to arrest Firtash. “They duly did. Briefly imprisoned, Firtash posted the equivalent of $174 million bail and waited for a court to rule on his appeal against extradition.”

Whether something similar happened with Zelensky’s oligarch is another good question; likely one that won’t be answered anytime soon.

The Big Lie

The war has completely reinvented Zelensky, thus saving his scandal-plagued presidency marked by broken promises. As a Kyiv International Institute of Sociology poll showed, just 24 percent of voters supported him in late January. But now, thanks to the West’s embracement of the actor’s new persona which often places him beyond reproach, Zelensky has become the recipient of unqualified adoration and enormous amounts of international aid money. “Before the war the U.S. was sending $300 million per year to Ukraine,” said to NPR Mark Cancian, a senior adviser at the Center for International and Strategic Studies. “Now, we’re providing $100 million a day” to what was until recently considered “the most corrupt nation in Europe,” reports (of all newspapers) The Guardian.

As of today, the United States government alone is on track to deliver more than $50 billion in total aid to Ukraine. For comparison, the Department of Homeland Security estimated that Trump’s proposed border wall would cost roughly $21.6 billion. Republicans in particular, spent the first two years of Trump’s term resisting his efforts to fund and build the wall, before reluctantly agreeing to support just a fraction of what they approved for Ukraine at the drop of a hat, even challenging the patriotism of their critics.

What is the likelihood that those billions in international aid will vanish into well-connected pockets?

No one is asking these or any other important questions. Just like no one asked if it was odd when Zelensky stated that Russia would have to “kill all residents” in Ukraine’s capital to take it and get to him. That, seems the high price that the ‘servant of the people’ is willing to let Ukrainians pay; and one that Washington is happy to let Americans subsidize.

Padro Gonzalez is a senior writer at Chronicles: a magazine of American culture, and the author of the Contra newsletter.

SCOTT RITTER: Phase Three in Ukraine

Donbass (2015–2022).svg by Goran tek-en and RGloucester (Wikimedia Commons)

By Scott Ritter, Consortium News, 5/30/22

Russia’s “Special Military Operation”, which began on Feb. 24, is entering its fourth month. Despite stiffer than expected Ukrainian resistance (bolstered by billions of dollars of western military assistance and accurate, real-time battlefield intelligence by the U.S. and other NATO members) Russia is winning the war on the ground, and in a big way.

After more than ninety days of incessant Ukrainian propaganda, echoed mindlessly by a complicit western mainstream media that extolls the battlefield successes of the Ukrainian armed forces and the alleged incompetence of the Russian military, the Russians are on the cusp of achieving the stated goal of its operation, namely the liberation of the newly independent Donbass Republics of Lugansk and Donetsk, which Russia recognized two days before its invasion.

The Russian victory in Donbass comes after weeks of intensive combat that saw the Russian military shift gears away from what has become known as Phase One. That was the month-long opening act which, according to Russian President Vladimir Putin in his Feb. 24 address, was tasked with taking “actions throughout the territory of Ukraine with the implementation of measures for its demilitarization and denazification.”

Putin said the purpose was to restore “the DPR [Donetsk People’s Republic] and the LPR [Lugansk People’s Republic] within the administrative borders of the Donetsk and Lugansk regions, which is enshrined in the constitutions of the republics.”

On March 25, the head of the Main Operational Directorate of the General Staff of the Armed Forces of the Russian Federation, Colonel General Sergei Rudskoy, declared that “the main objectives of the first phase of the operation have been achieved. The combat capabilities of Ukraine’s Armed Forces have been significantly reduced, which allows us, once again, to concentrate our main efforts on achieving the main goal – the liberation of Donbass.”

According to Rudskoy, Phase One’s objectives were to cause:

“Such damage to military infrastructure, equipment, personnel of the Armed Forces of Ukraine, the results of which allow not only to shackle their forces and do not give them the opportunity to strengthen their grouping in the Donbass, but also will not allow them to do so until the Russian army completely liberates the territories of the DPR and LPR. All 24 formations of the Land Forces that existed before the start of the operation suffered significant losses. Ukraine has no organized reserves left.”

Russia has completed Phase One despite the efforts of the U.S., NATO, and the E.U. to supply Ukraine with a significant amount of lethal military assistance, primarily in the form of light anti-tank and anti-aircraft weapons. “We consider it a vast mistake,” Rudskoy concluded, “for Western countries to supply weapons to Kiev. This delays the conflict, increases the number of victims and will not be able to influence the outcome of the operation.”

‘Extremely Bad’

The history of the conflict so far has proven Rudskoy correct — no amount of western military aid has been able to prevent Russia from achieving its military objective of liberating the entire territories of both Lugansk and Donetsk.

As Ukrainian Foreign Minister Dmitry Kuleba admitted at the World Economic Forum in Davos, Switzerland, “I don’t want anyone to get the feeling that the war is more or less OK. The situation in Donbass is extremely bad.”

Gone are the bold pronouncements made on the eve of the May 9 Victory Day celebrations, when Russia’s many detractors proclaimed that Rudskoy’s Phase Two offensive in the Donbas had stalled, and that Russia would, in short order, be compelled to transition from the attack to a defensive posture, signally the beginning of a retreat that the Ukrainians claimed would culminate not only in the recapture of all territory lost so far, but Crimea as well.

Such fanciful thinking has given way to the kind of hard reality that ignores propaganda and favors the dirty task of destroying the enemy through firepower and maneuver. Complicating this task, however, was that during the eight years of incessant conflict in the Donbass, which precipitated Russian’s invasion, the Ukrainian military had prepared a defensive belt that was, General Rudskoy noted in his March 25 briefing, “deeply echeloned and well-fortified in engineering terms, consisting of a system of monolithic, long-term concrete structures.”

According to Rudskoy, offensive operations against this defensive belt were, by necessity, “preceded by a heavy fire attack on the enemy’s strongholds and their reserves.”

The Russian advantage in artillery was a key factor in the victorious outcome of its Phase Two operations, pulverizing the Ukrainian defenses and opening the way for the infantry and armor to finish off the survivors.

According to the daily briefings provided by the Russian Ministry of Defense, the Ukrainians are losing the equivalent of a battalion’s worth of manpower every two days, not to mention scores of tanks, armored fighting vehicles, artillery pieces, and trucks.

Indeed, several observers of this conflict, myself included, projected that based upon predictive analysis drawn from the basic military math regarding actual and projected casualty levels, there was a real expectation that Russia, upon completion of Phase Two, would have been able to claim, with justification, that it had accomplished most, if not all the political and military objectives set out at the start of the operation.

Logic dictated that the Ukrainian government, stripped of a viable military, would have no choice but a modern-day version of the surrender of France in June 1940, following decisive battlefield victories by the German army.

While Russia continues to position itself for a decisive military victory in eastern Ukraine, it may likely confine itself to the liberation of the Donbass, seizures of the land bridge connecting Crimea with the Russian Federation mainland (via Donbass), and the expansion of the Kherson bridgehead to secure fresh water resources to Crimea which had been cut off by the Ukrainian government since 2014.

The State of Russia’s Objectives

In his classic treatise, On War, Prussian military theorist Carl Von Clausewitz penned what has become one of the ultimate truisms of conflicts involving nations, namely that “war is a continuation of politics by other means.” This holds as true today as when it was published in 1832.

Putin articulated two principle political objectives for the military operation: to keep Ukraine out of NATO and to create the conditions for NATO to agree to Russia’s demands set forth in a pair of draft treaties presented to the U.S. and NATO on Dec. 17, 2021. Those treaty proposals set out a new European security framework by demanding the withdrawal of NATO military power back to the borders that existed in 1997. Both NATO and the U.S. rejected Russia’s demands.

When it comes to military objectives, in addition to the liberation of Donbass, Putin declared in his Feb. 24 speech, announcing the invasion, that Russia “will seek to demilitarize and denazify Ukraine, as well as bring to trial those who perpetrated numerous bloody crimes against civilians, including against citizens of the Russian Federation.”

While the defeat of the Azov Regiment and other neo-Nazi formations during the Battle of Mariupol represented a decisive step toward the accomplishment of that goal, several thousand neo-Nazi fighters, organized into a variety of military and paramilitary formations, continue to fight on the frontlines in eastern Ukraine and carry out security operations in Ukrainian rear areas.

Denazification, however, has an important political component that, at the moment, is not being addressed by Russia’s military operation, namely the continued existence of Ukraine’s far-right and neo-Nazi political parties at a time when all other political activity has been shut down under martial law.

If anything, the “Nazification” of Ukrainian political life has expanded exponentially since Russia’s invasion, with Ukraine more under the influence of the ideology of Stepan Bandera, the Ukrainian nationalist whose followers killed hundreds of thousands of Jews, Gypsies, Poles, and Russians while fighting alongside Nazi Germany in World War Two.

Whereas Russia may have earlier been able to conceive a political settlement that saw the Ukrainian government right-wing political parties and their militarized progeny, the fact is today the Ukrainian government has increasingly aligned itself with the neo-Nazi movement to strengthen its rule in the face of growing domestic political opposition to war with Russia.

True denazification, in my view, would require Russia to remove the Zelensky government from power and replace it with a new political leadership that will aggressively sustain the Russian objective of an eradication neo-Nazi ideology in Ukraine. So far there is no indication that that is a Russian objective.

Re-Militarization

Likewise, demilitarization has become much more difficult since the invasion of Feb. 24. While military aid provided to Ukraine by the U.S. and NATO before that date could be measured in terms of hundreds of millions of dollars, since Phase Two operations began this aid has grown to the point where total military aid provided to Ukraine by the U.S. alone approximates $53 billion.

Not only has this aid had a measurable impact on the battlefield in terms of Russian military personnel killed and equipment destroyed, but it has also enabled Ukraine to reconstitute combat power, which had been previously destroyed by Russian forces.

While this massive support will not be able to reverse the tide of inevitability concerning the scope and scale of the Russian military victory in the Donbass, it does mean that once Russia has fulfilled its stated objective of liberating the breakaway republics, demilitarization will still not have taken place. Moreover, given the fact that demilitarization is premised on Ukraine being stripped of all NATO influence, including equipment, organization, and training, one can make a case that Russia’s invasion has succeeded in making Ukraine a closer partner of NATO than before it began.

The Legal Questions

If Russia were the United States, operating under the notion of a “rules based international order,” the issue of outstripping the legal justification for a conflict would not represent a problem — one only needs look at how a succession of U.S. presidential administrations abused the Congressional authorization for the use of military force (AUMF) passed in the aftermath of the 9/11 attacks by wrongfully using it to justify operations that fell outside its legal authorities.

A party can get away with such inconsistencies if they are responsible, like the United States, for making and implementing the rules of the game (i.e., the so-called “rules-based international order.”) However, Vladimir Putin, when meeting with Chinese President Xi Jinping during the opening of the Winter Olympic games, committed himself on a policy course which sees Russia, together with China, rejecting the rules based international order that defines the vision of a unipolar world dominated by the U.S., and instead replace it with a multi-polar “law based international order” grounded in the United Nations Charter.

Putin was very careful in trying to link Russia’s military operation to the legal authorities that existed under Article 51 of the United Nations Charter governing self-defense. The specific construct involved — which cited what amounts to a claim of preemptive, collective self-defense — hinges on Russian claims that “the Armed Forces of Ukraine were completing the preparation of a military operation to take control of the territory of the people’s republics.”

It is the imminent threat posed by this alleged Ukrainian military operation that gives legitimacy to Russia’s claim. Indeed, both Phase One and Phase Two of Russia’s operation were specifically tailored to the military requirements necessary to eliminate the threat posed to Lugansk and Donetsk by the buildup of Ukrainian military power in eastern Ukraine.

A problem, however, emerges when Russia completes its task of destroying, dismantling, or dispersing the Ukrainian military in the Donbass region. While one could have previously argued that an imminent threat would continue to exist so long as the Ukrainian forces possessed sufficient combat power to retake Donbass region, such an argument cannot be made today.

At some point soon, Russia will announce that it has defeated the Ukrainian military forces arrayed in the east and, in doing so, end the notion of the imminent threat that gave Russia the legal justification to undertake its operation.

That came about because of the major battlefield successes of the Russian military. But it will leave Russia with a number of unfulfilled political objectives, including denazification, demilitarization, permanent Ukrainian neutrality, and NATO concurrence with a new European security framework along the lines drawn up by Russia in its December 2021 treaty proposals. If Russia were to call a halt to its military operation at this juncture, it would be ceding political victory to Ukraine, which “wins” by not losing.

Phase Three

The challenge facing Russia going forward, therefore, is how to define the scale and the scope of Phase Three so that it retains the kind of legal authority it asserted for the first two phases, while assembling sufficient combat power to accomplish its tasks. Among these would appear to me to include overthrowing the Zelensky government and replacing it with one willing and able to outlaw the ideology of Stepan Bandera. It might also entail launching a military operation into central and western Ukraine to completely destroy the reconstituted elements of the Ukrainian military along with the surviving neo-Nazi affiliated forces.

As things currently stand, Russia’s actions are being implemented upon the limited legal authorities granted to Putin by the Russian Duma, or parliament. One of the most constraining aspects of these authorities is that it limits Russia’s force structure to what can be assembled under peacetime conditions. Most observers believe Russia is reaching the limit of what can be asked of these forces.

Any large-scale expansion of Russian military operations in Ukraine,which seeks to push beyond the territory conquered by Russia during Phase One and Phase Two, will require additional resources which Russia may struggle to assemble under the constraints imposed by a peacetime posture. This task would become virtually impossible if the Ukrainian conflict were to spread to Poland, Transnistria, Finland and Sweden.

Only Russia’s leaders can decide what is best for Russia, or what is deemed to be viable militarily. But the combination of an expired legal mandate, unfulfilled political objectives, and the possibility of a massive expansion of the scope and the scale of combat operations, which could possibly include one or more NATO members, points to an absolute need for Russia to articulate the mission of Phase Three and why it needs one.

Failure to do so opens the door to the possibility that Russia puts itself in a position where it is unable to successfully conclude a conflict that it opted to initiate at the end of February.

Scott Ritter is a former U.S. Marine Corps intelligence officer who served in the former Soviet Union implementing arms control treaties, in the Persian Gulf during Operation Desert Storm and in Iraq overseeing the disarmament of WMD.

WaPo: The secret planning that kept the White House a step ahead of Russia

Reads like a love letter to Biden. Interesting that it’s under the opinion section of the paper and not the news section. – Natylie

By David Ignatius, Washington Post, 5/27/22

The first instruction that Secretary of State Antony Blinken got from President Biden was to “reset” America’s alliances and partnerships abroad so that the United States could deal with the challenges ahead. That strategy would prove decisive in combating Russia’s aggression against Ukraine.

Blinken and other officials gave me new details this week, describing a series of behind-the-scenes meetings over the past year that helped forge the U.S.-led coalition to support Ukraine. His narrative validates President Dwight D. Eisenhower’s observation in a 1957 speech: “Plans are worthless, but planning is everything.”

The Biden administration’s secret planning began in April 2021 when Russia massed about 100,000 troops on the Ukrainian border. The buildup turned out to be a feint, but Blinken and other officials discussed U.S. intelligence about Russia’s actions with leaders of Britain, France and Germany at a NATO meeting in Brussels that month. Their message was, “We need to get ourselves prepared,” a senior State Department official said.

Germany was a reluctant but essential ally, and the Biden administration made a controversial decision last summer that was probably crucial in gaining German support against Russia. Biden gave Germany a pass on an initial round of sanctions against a company building the Nord Stream 2 pipeline in exchange for a pledge from Chancellor Angela Merkel that if Russia invaded, Nord Stream 2 would be scrapped. When the invasion came, Merkel was gone but her successor, Olaf Scholz, kept the promise.

By avoiding a crisis with Germany early on, Blinken said, “the net result was that the foundation was in place when the Russians went ahead with the aggression.”

This U.S. diplomacy gets high marks from Emily Haber, the German ambassador to Washington. “The wording in the joint statement [about Nord Stream] was vague, but the administration trusted the old — and later the new — chancellor to follow up on it. Which is what happened,” she told me. “A sublime form, I thought, of partnership management.”

The Ukraine threat got red-hot in October, when the United States gathered intelligence about a renewed Russian buildup on the border, along with “some detail about what Russian plans for those forces actually were,” Blinken said. This operational detail “was really the eye opener.” The Group of 20 nations were meeting at the end of October in Rome, and Biden pulled aside the leaders of Britain, France and Germany and gave them a detailed readout on the top-secret evidence.

“It was galvanizing enough that there was an agreement … to fleshing out the consequences for Russia if it went ahead with the aggression,” Blinken said.

CIA Director William J. Burns traveled to Moscow on Nov. 1 to warn President Vladimir Putin that the United States and its allies were prepared to arm Ukraine and impose crippling sanctions on Russia if he invaded. Putin apparently thought Biden wouldn’t be able to deliver.

Persuading Ukrainian President Volodymyr Zelensky to take the invasion danger seriously wasn’t easy, initially. Blinken spoke to him at the COP 21 climate summit in Glasgow in early November and provided a summary of intelligence about Russia’s plans. “I basically had the task of telling him that we thought it was likely that his country was going to be invaded,” Blinken recalled. Zelensky was skeptical, according to a State Department official.

Threatening sanctions can be an empty diplomatic ritual. But in December, Blinken and his colleagues began seriously discussing with allies what steps they would take. The initial venue was a Group of Seven foreign ministers meeting in Liverpool, England, on Dec. 11. The attendees publicly committed that there would be “massive consequences and severe costs,” Blinken remembered. As a result, he said, “when the aggression actually happened, we were able to move immediately.”

NATO military planning accelerated along with the diplomacy. Air Force Gen. Tod Wolters, the NATO commander, told me that his colleagues began preparing in December and January the “ground lines of communication” that would allow rapid shipment of arms into Ukraine. They studied entry points for supplies and other practical details. This weapons pipeline delivered Stinger and Javelin missiles before the invasion began Feb. 24 and has transferred huge numbers of heavier weapons since then.

U.S. intelligence provided Ukraine with a preview of Putin’s battle plan. Though Russia had surrounded Ukraine with 150,000 troops, Putin’s real strategy was a lightning, decapitating strike on Kyiv by a relatively small group of elite special forces. The Russians planned to seize Antonov Airport in Hostomel, west of the capital, and then use it to quickly pump troops into Kyiv.

The Ukrainians knew the Russians were coming. Burns had secretly traveled to Kyiv in January to brief Zelensky on the Russian plan, according to two knowledgeable officials. The Ukrainians used the U.S. intelligence to devastate the attacking force at Hostomel, in what may turn out to be the decisive battle of the war. “The Russians had no Plan B,” explained Marek Menkiszak, a Polish intelligence analyst with the Centre for Eastern Studies in Warsaw.

Menkiszak explained the significance of the intelligence coup that revealed the decapitation plan: “The Russians trapped themselves. … It was not meant to be a full-scale war but a special operation” that would topple Zelensky’s government and install a pliant, pro-Moscow regime.

Through the buildup to war, Biden sometimes seemed to misspeak. But he had a clear-eyed view of the evolving strategic terrain. Early on, for example, Biden concluded that the best way to derail Putin’s hope for dividing NATO would be the accession of two strong new members, Finland and Sweden.

Biden wooed Finnish President Sauli Niinisto. He called him in December and then in January to talk about the Russian threat, Blinken said. Biden then invited Niinisto to visit the White House in March, and while they were sitting in the Oval Office, Biden suggested they call Swedish Prime Minister Magdalena Andersson, reaching her late at night. By May, the two were visiting the White House together, celebrating their countries’ plans to join NATO.

The Biden administration’s organization of this coalition to support Ukraine may look simple in retrospect. But it was a complicated coordination of diplomatic, military and intelligence resources that pulled together dozens of nations at what may prove to be a hinge point in modern history. Putin thought he could roll through Biden and the West to an easy victory in Kyiv. The Russian leader made a catastrophic mistake in overvaluing his own strength and underestimating the resolve of Biden and his team.

Arnaud Bertrand: Is America the Real Victim of Anti-Russia Sanctions?

By Arnaud Bertrand, Tablet, 5/24/22

Arnaud Bertrand is an entrepreneur and commentator on economics and geopolitics. He founded HouseTrip and Me & Qi.

Remember the claims that Russia’s economy was more or less irrelevant, merely the equivalent of a small, not very impressive European country? “Putin, who has an economy the size of Italy,” Sen. Lindsey Graham, R-S.C., said in 2014 after the invasion of Crimea, “[is] playing a poker game with a pair of twos and winning.” Of increasing Russian diplomatic and geopolitical influence in Europe, the Middle East, and East Asia, The Economist asked in 2019, “How did a country with an economy the size of Spain … achieve all this?”

Seldom has the West so grossly misjudged an economy’s global significance. French economist Jacques Sapir, a renowned specialist of the Russian economy who teaches at the Moscow and Paris schools of economics, explained recently that the war in Ukraine has “made us realize that the Russian economy is considerably more important than what we thought.” For Sapir, one big reason for this miscalculation is exchange rates. If you compare Russia’s gross domestic product (GDP) by simply converting it from rubles into U.S. dollars, you indeed get an economy the size of Spain’s. But such a comparison makes no sense without adjusting for purchasing power parity (PPP), which accounts for productivity and standards of living, and thus per capita welfare and resource use. Indeed, PPP is the measure favored by most international institutions, from the IMF to the OECD. And when you measure Russia’s GDP based on PPP, it’s clear that Russia’s economy is actually more like the size of Germany’s, about $4.4 trillion for Russia versus $4.6 trillion for Germany. From the size of a small and somewhat ailing European economy to the biggest economy in Europe and one of the largest in the world—not a negligible difference.

Sapir also encourages us to ask, “What is the share of the service sector versus the share of the commodities and industrial sector?” To him, the service sector today is grossly overvalued compared with the industrial sector and commodities like oil, gas, copper, and agricultural products. If we reduce the proportional importance of services in the global economy, Sapir says that “Russia’s economy is vastly larger than that of Germany and represents probably 5% or 6% of the world economy,” more like Japan than Spain.

This makes intuitive sense. When push comes to shove, we know there is more value in providing people with the things they really need to survive like food and energy than there is in intangible things like entertainment or financial services. When a company like Netflix has a price-earnings ratio three times higher than that of Nestlé, the world’s largest food company, it’s more likely than not a reflection of market froth than of physical reality. Netflix is a great service, but as long as an estimated 800 million people in the world remain undernourished, Nestlé is still going to provide more value.

All of which is to say that the current crisis in Ukraine has helpfully clarified how much we’ve taken for granted the “antiquated” side of modern economies like industry and commodities—prices for which have surged this year—and perhaps overvalued services and “tech,” whose value has recently crashed.

The size and importance of Russia’s economy is further distorted by ignoring global trade flows, in which Sapir estimates that Russia “may account for maybe as much as 15%.” While Russia is not the largest producer of oil in the world, for example, it has been the largest exporter of it, ahead even of Saudi Arabia. The same is true for many other essential products such as wheat—the world’s most important food crop, with Russia controlling about 19.5% of global exports—nickel (20.4%), semi-finished iron (18.8%), platinum (16.6%), and frozen fishes (11.2%).

Such commanding importance in the production of so many essential commodities means that Russia, like few other countries on the planet, is in many respects a linchpin of the globalized production chain. Unlike “maximum sanctions” on a country like Iran or Venezuela, attempting to cut the Russian link has meant and will likely continue to mean a dramatic reorganization of the global economy.

Now that President Joe Biden has publicly renounced America’s decades-old policy of “strategic ambiguity” with regard to Taiwan, it’s worth thinking about what China’s economy looks like when we remove the same blinkers with which we’d always viewed Russia. If we consider the Chinese economy based on exchange rates—by simply converting China’s GDP from Chinese yuan to U.S. dollars—it is valued at about $17.7 trillion (as of 2021), compared to $23 trillion for the United States and $17 trillion for the European Union.

But if we adjust for PPP, we see that the Chinese economy reached almost $27.21 trillion in 2021, compared with $20.5 trillion for the EU and $23 trillion for the United States. In terms of PPP, in fact, China’s economy overtook America’s back as much as six years ago.

And what if we reduce the proportional importance of the service sector relative to industry and commodities? Services account for approximately 53.3% of China’s GDP, even less than in Russia (56.7%). If we roughly apply Sapir’s ratio of doubling the valuation of the nonservice sector to China, we may have to consider that in a very real and relevant way, the Chinese economy accounts for something like 25%-30% of the global economy on a PPP basis, rather than the current estimates of 18%-19%. That would put the combined Chinese and Russian economies at about 30%-35% of the global economy (again, adjusting for PPP and the overvaluation of the service sector)—a behemoth and likely unsustainable challenge for a trans-Atlantic community that looks increasingly focused on using maximalist economic sanctions to punish bad actors and achieve desired policy outcomes. That challenge becomes even more daunting when we consider that the service sector accounts for roughly 77% of the U.S. economy and 70% of the EU’s—suggesting a potentially significant degree of overvaluation in Western economic heft, and far more parity in relative economic power with China and Russia.

How much does any of this hairsplitting matter? For one, the war in Ukraine and tensions in the Pacific look to be accelerating a division of the world into Cold War-like political and economic blocs. But whereas the West accounted for over 50% of global GDP at the beginning of the Cold War—with the United States dominating global manufacturing and running huge annual trade surpluses—the West looks to be in a weaker if more entrenched position of power today, and its major adversaries stronger in certain ways than the communist bloc was in 1948.

Before we enthusiastically embrace a new Iron Curtain, therefore, it’s worth pausing to consider how many countries in the world will voluntarily place themselves on our side. The countries of what we consider “the West” will—for ideological and historical reasons, in addition to economic and military enmeshment—undoubtedly remain relatively united. But the West only accounts for about 13% of the world’s population, with China and Russia together making up about 20%. That leaves about two-thirds of humanity “nonaligned,” a position that most of them would like to maintain. If we force them to choose a side, we may be surprised by many of the results.

A tally of the countries participating in current sanctions on Russia, in fact, makes it hard to say whether a new Iron Curtain is being drawn around our adversaries or around the West itself. Countries and nominal U.S. allies as significant as India and Saudi Arabia have been particularly vocal in their refusal to take sides in the conflict in Ukraine.

One telling barometer for this dynamic is oil. With Western oil sanctions on the world’s largest oil exporter, prices have predictably skyrocketed, rising from around $75 a barrel at the beginning of the year up to over $110 today. But countries that have refused to participate in sanctions are now taking advantage of the opportunity to negotiate for Russian energy deliveries at steep discounts. If Russia is still able to sell oil around the world, countries like India are able to negotiate for below-market prices, and Western consumers are being hammered with inflated prices, who is really being sanctioned? A similar principle applies to the weaponization of the U.S. dollar and the Western financial system in general: If non-Western countries are increasingly told that access to dollars and transaction systems like SWIFT are conditional on policies made in Washington that may not necessarily be in their own self-interest, the result may be a de-dollarization of the global economy, not a strengthening of the Western order.

None of this is to say that the brutal invasion of Ukraine has been anything less than an atrocity, and that extraordinary measures may indeed be called for in order to counter Russian expansionism and its implications for global peace and stability. But it’s possible that the West, in a fit of self-righteousness and a need to satisfy various domestic demands, may be diving headlong into a future in which the global South and many others besides feel increasingly pressured to make a choice they don’t want to have to make, and which may leave the West more isolated than ever before in modern times.

Analysis & Book Reviews on U.S. Foreign Policy and Russia