Moscow to Respond if West Lifts Restrictions on Deep Strikes Inside Russia – Nebenzia
Sputnik – 13.09.2024
UNITED NATIONS – The NATO countries will be in direct war with Russia is they lift the restrictions on the use of long-range weapons to strike deep inside Russia and Moscow will take “relevant decisions”, Russian Ambassador to the UN Vassily Nebenzia said on Friday.
“If the decision to lift the restrictions is really taken, that will mean that from that moment on NATO countries are conducting direct war with Russia. In this case, we will have to take, as you understand, relevant decisions with all the consequences for this that the Western aggressors would incur,” Nebenzia said during a meeting of the UN Security Council.
The Russian ambassador also said that the US is responsible for pinning all the blame elsewhere but it will not be able to succeed because “there is intelligence from US and EU satellites.”
The UN Security Council meeting was requested by Russia and focuses on the issue of Western supplies of weapons to the Kiev regime.
Israel far from defeating Hamas in Rafah, ‘Israel’ in an ‘endless tunnel’
Al Mayadeen | September 13, 2024
The Israeli military has not managed to defeat even a single battalion or company of the Hamas Resistance forces in Rafah, a member of the Israeli Knesset’s Foreign Affairs and Security Committee said on Saturday.
Amit Halevi’s criticism came after the Israeli occupation forces (IOF) announced on Thursday that it had “defeated Hamas’ Rafah Brigades,” and that it now has “completed operational control over the entire urban area.”
Halevi, quoted by the Israeli Channel 7website, stated that the army claims to have killed over 2,000 fighters in Rafah, however, the actual number is significantly lower, noting that the inflated figure “doesn’t even represent 25%” of the Resistance’s fighting force.
He further highlighted that “Israel” had only destroyed a small fraction of the underground tunnels in Rafah, adding however that “even those (tunnels) were not all destroyed, but rather sealed, making it easy for Hamas to reactivate them.”
The senior Israeli official noted that the Resistance in Rafah holds a massive stockpile of weapons, and the amount uncovered by the IOF is minimal in comparison. He emphasized that “Israel remains far from defeating or destroying Hamas.”
Elsewhere in his criticism, Halevi described the messages coming from the Israeli army spokesperson as misleading for the public and the government.
“Every soldier who entered Khan Younis for the fourth time or the al-Zaytoun neighborhood for the fifth time knows that nothing has been defeated,” he said in reference to the repeated Israeli incursions into these areas, despite previous declarations that they were “under control” and claims that the Resistance groups there had already been “defeated”.
“With the current operational methods, the matter will never be settled, because for every [Resistance fighter] killed, two more are born; for every injured [fighter], three new fighters are recruited; and for every piece of weaponry seized by the Israeli army, five more are produced underground in Gaza.”
Halevi further remarked that the method the occupation army uses in the “war of shafts,” as described by the head of Shin Bet, cannot lead to defeating Hamas in quantitative terms, referring to the number of fighters and the weapons they possess in Gaza.
Therefore, “Israel” has no strategic achievements but is instead in an “endless tunnel,” according to Halevi.
Israeli forces restrict access to scene of Turkish-American activist’s killing
Press TV – September 13, 2024
The Israeli regime’s forces have restricted access to the murder scene of a Turkish-American activist, who was killed by the Israeli military last week while protesting the regime’s illegal settlement construction activities.
Reporting on Friday, the official Palestinian Wafa news agency said the forces had placed military checkpoints at intersections in the town of Beita, south of the city of Nablus, in the northern part of the occupied West Bank.
Mahmoud Barham, head of the Beita Municipal Council, said the troops would prevent Palestinians from crossing the intersections to reach Mount Sabih, where the atrocity had taken place.
The activist, Aysenur Ezgi Eygi, was killed last Friday while protesting alongside locals in Beita against the settlement of Evyatar.
An autopsy report confirmed that the 26-year-old had been killed by an Israeli sniper’s bullet to the head, Nablus Governor Ghassan Daghlas said on Saturday.
The Israeli military has alleged that Aysenur was killed during an effort by the forces to quell a “riot.”
Available footage of the protest as well as numerous witness accounts, however, contradict the claim.
The United Nations has called for an investigation of the crime.
“I can tell you that we would want to see a full investigation of the circumstances and that people should be held accountable,” UN spokesman Stephane Dujarric said at a news conference following the activist’s death.
According to Wafa, Aysenur is one of 17 people who have been killed since the Evyatar settlement’s emergence in 2021.
Blinken alleges RT engaged in ‘covert info ops., military procurement’
Al Mayadeen | September 13, 2024
US Secretary of State Antony Blinken accused on Friday state media organization RT of possessing cyber capabilities and engaging in covert information, influence operations, and military procurement.
Blinken told reporters that the United States is imposing sanctions on three entities and two individuals over Russia’s alleged “covert influence operations in the media domain, including interference in Moldova’s democracy, and its upcoming elections.”
In response, Russian Foreign Ministry spokeswoman Maria Zakharova mockingly told Sputnik she suggests “treating Blinken’s actions as a blockchain.”
‘There will be a response’
The news website’s Deputy Director of English-Language Information Broadcasting Andrey Kiyashko, Digital Media Projects Manager Konstantin Kalashnikov, and numerous other employees were also added to the sanctions list.
Zakharova said on Tuesday that Russia will respond to US sanctions targeting Russian media and all its other adversarial actions.
“They (US) will have to understand that no action against our country will remain unanswered,” Zakharova said on the Solovyev LIVE show.
US authorities charged Kalashnikov and her fellow colleague Elena Afanasyeva with money laundering conspiracy and Foreign Agents Registration Act (FARA) violations.
The US State Department also implemented stricter regulations for Rossiya Segodnya (RT) and its subsidiaries, deeming them “foreign missions.” With this measure, the organization is obligated under the Foreign Missions Act to notify the department of all employees working in the US and disclose all their owned properties.
US authorities also announced restrictions on issuing visas to individuals believed to be “acting on behalf of Kremlin-supported media organizations.” However, the Department of State did not reveal the names of the individuals subject to the new restrictions.
Free Speech Group Slams Pennsylvania Gov. Shapiro’s Gag Order on Public Employees
By Didi Rankovic | Reclaim The Net | September 13, 2024
The Foundation for Individual Rights (FIRE) has condemned a new executive order issued in Pennsylvania as unconstitutional, where that pertains to the First Amendment speech protections.
Governor Josh Shapiro’s move, described by the group as a “sweeping gag order” targeting public employees, is believed to be so egregious that FIRE is at the same time urging those affected across the state to join forces and challenge it in court.
The executive order prohibits anyone in the public sector – teachers, librarians, those working for utility companies among them – from making statements that can be interpreted as “scandalous” or “disgraceful.”
These changes to the code of conduct were added in May, in an “under-the-radar” fashion, but with rather significant impact: the code of conduct was now being extended to cover speech as well.
And these amended rules apply both to employees while at work, and off duty, FIRE remarks, bringing up a key question: who will decide what’s scandalous and disgraceful to the point that it must be punished?
“Impossibly vague” is how FIRE treats the wording of the order, which it believes merits a class action suit to overturn what is condemned as unconstitutional government overreach.
“No elected official can slap a gag order like this on state workers,” said FIRE’s director of public advocacy, Aaron Terr, adding that the group regards it as an abuse of power and hopes to team up with those affected for a legal battle.
In August, FIRE tried to communicate to the Pennsylvania governor that the rules were violating the First Amendment, in the hope of avoiding a lawsuit.
The August letter was ignored by Shapiro’s office. Back in May, those behind the contested changes made it obvious what prompted them: a war in the Middle East.
We obtained a copy of the second letter for you here.
In order to bring “moral clarity” into the way people are allowed to speak about that, concepts like “antisemitism, Islamophobia, and other forms of hate speech” are mentioned as being on the rise in Pennsylvania, the US, and the whole world.
But Tarr is unimpressed. “The state is strategically putting all the chess pieces in place to punish everyday Americans for nothing more than saying something the government doesn’t like,” is his take on the true nature of all this.
And, Tarr added, “Our job is to smack those pieces off the board before someone gets fired for speaking their mind.”
Demoralization is deepening Ukraine’s armed forces as its situation in Donbass deteriorates
By Dmitri Kovalevich | Al Mayadeen | September 12, 2024
The economic situation in Ukraine has deteriorated sharply in recent months. According to Bloomberg News on September 4, the Western countries have begun to reduce their financial support to the government in Kiev, while the IMF is ‘recommending’ that the government devalue the currency at a faster rate, cut interest rates, and strengthen tax-raising efforts to fill the country’s budget gap.
This occurred just ahead of a planned visit by Kiev regime head Volodymyr Zelensky to New York to attend the 79th session of the UN General Assembly, which opened on September 10. While in New York, Zelensky will meet with U.S. government officials, and he says he wants to visit both camps in the current U.S. presidential election. Diplomatic niceties aside, a key reason for the visit is to press for more funding and more weapons for the regime’s key role as a proxy for the NATO countries’ war against Russia.
Former MP and right-wing nationalist Igor Mosiychuk is sure that the U.S. government will opt for caution over its continued military aid to Kiev because so much of that aid is being lost in battle or being destroyed by Russia’s missile defense before it arrives in the battle theatre. The degree of destruction of U.S. and other Western weaponry makes for a very big public relations problem for those arms manufacturers. It is hardly to the credit of their military technology that even their most modern and advanced weapons—tanks, armored personnel carriers, missile systems—are routinely being destroyed by Russia and otherwise not coming close to tipping the military balance.
Mosiychuk writes, “My sources in this delegation [the one traveling to Washington] say that there will be no large-scale assistance announced for the near future. That is, military supplying will continue as is. That’s because of the failure to defend Pokrovsk and because so much of the equipment that was thrown into the Kursk incursion has been destroyed,” the online Politnavigator reports on September 3.
Pokrovsk is a small city that is a key supply and transport depot for the war being prosecuted by Ukraine and its Western backers in the Donbass region. It lies some 80 km west of Donetsk city.
Of note recently is the inadvertent confirmation in early September that the British government of the day did, indeed, press Kiev to abandon the peace negotiations with Russia that took place in Istanbul in March and April 2022. Then-British prime minister Boris Johnson was caught out in an interview recently by the two, notorious Russian pranksters Vladimir ‘Vovan’ Kuznetsov and Alexei ‘Lexus’ Stolyarov, as reported on September 4 in Britain‘s Daily Mirror.
Today, Johnson is saying that Ukraine needs an even-harsher, compulsory military conscription and it needs more young men to fill the trenches and other defensive works along the front lines of the war. There are too many older soldiers and not enough young ones in Ukraine’s armed forces, Johnson says. “They haven’t called up many of their young people yet,” he said, referring to Ukraine’s age of military service being 25 (already lowered from 27 to 25 amidst huge controversy in April 2024).
The exchange by Johnson with the two pranksters was cringeworthy for many reasons, not least for the claim by Johnson that he wishes he could lead a legion of foreign mercenaries in Ukraine but lacks the military training to do so. He came much closer to reality when he cautioned against the entry of NATO-country soldiers into Ukraine. “I normally have a very high and healthy appetite for risk, but I think that would take risk to a new level and we don’t need to do that.” He added his view that while Zelensky might have accepted the loss of Donbass and Crimea at the negotiations in Istanbul in April 2022, that would be politically impossible today.
Zelensky is now actively requesting that the NATO countries supply long-range missiles capable of striking deep inside Russia. A formal request to the G7 countries to that effect was adopted by the Ukrainian legislature (Verkhovna Rada) on September 3.
Ukrainian political scientist Ruslan Bortnik believes that behind the request for more advanced missile and missile-defense weaponry is a desire to drag NATO directly into the conflict with Russia, as Ukraine cannot prevail by itself. “The path to victory considered possible in Ukraine is to draw as many of our Western allies into this war as possible. By themselves, long-range missiles will not solve anything, but they can help achieve a balance of power for a couple of weeks, maybe for a month,” he said.
He added, importantly, “Given that Ukraine cannot fire these missiles on its own, that it also needs training and assistance with guidance, programming, and reconnaissance, the use of such missiles deep into Russian territory will create an excuse for Russia to strike back not only at Ukrainian territory but also at certain military bases of Western countries, for example in Poland or Romania. This raises the hope that the West will then get directly involved in the war.”
Ukrainian MP Oleksandr Dubynskyy writes that if the U.S. fails to permit the Kiev regime to strike Russia with more advanced missiles when President Biden meets with Zelenskyy in New York, this will be the sunset of Ukraine’s military campaign and the start of peace talks.
Who pays for Ukraine’s costly war?
Lesya Zaburanna, a member of the Verkhovna Rada’s budget committee, said on Aug. 30 that potential creditors are demanding that her committee and the Ukraine legislature as a whole look for more sources of military funding from within their own country. The war is becoming more and more expensive not only for the governing regime in Kiev Ukraine regime but also for its Western masters. “Both the IMF and a number of our partners are urging us to look for more internal resources [to pay for budget deficits],” the legislator said. That ‘internal resource’ is none other than the civilian population, to be robbed even further through higher taxes and service fees.
The price of drones for the Ukrainian military, for example, has gone up since September 1. Drones (UAVs—unmanned aerial vehicles) have come to play a significant, nay crucial, role in this NATO proxy war. Significantly fewer of them are available on the open market due to export restrictions introduced last year by China for drones capable of military use. China has recently eased export restrictions for drones serving civilian purposes but further tightened restrictions for drones capable of military tasks.
As reported by Ukraine’s Strana news outlet on August 29, the commander of the tactical aerial reconnaissance group of the Armed Forces of Ukraine, Robert Brovdi, says military radios and electronic warfare systems are also being further restricted. According to Strana, the entirety of Ukraine’s arsenal of military drones is purchased from manufacturers in China.
Brovdi believes that restrictions on drone supply will push Kiev into negotiations. “I think that these restrictions will be one of the components of sitting us down to the negotiating table, but not at all on parity terms,” he says.
As it turns out, the West is unable to quickly establish mass production of military drones. According to a report in Al Jazeera in January 2024, “Data from the Stockholm International Peace Research Institute shows China has delivered some 282 combat drones to 17 countries in the past decade, making it the world’s leading exporter of the weaponised aircraft. By comparison, the United States, which has the most advanced UAVs in the world, — has delivered just 12 combat drones in the same period, all of them to France and Britain. The U.S., however, still leads in the export of unarmed surveillance drones.”
Similar, extreme shortages apply also to artillery shells for Ukraine. Recently, South Africa blocked its supply of ammunition to Poland in order to prevent it from reaching Ukraine, as reported in the Polish daily Rzeczpospolita. Warsaw had ordered 155-mm shells from German defense giant Rheinmetall, to be manufactured by Denel Munition, a subsidiary of the company in the Republic of South Africa.
The Czech Republic buys another portion of shells for Ukraine, in its case from Turkey. But it is significantly increasing its price for resale to Kiev, as was reported by the supplier company Czechoslovak Group at the end of August. According to the company, Turkish manufacturers sell the shells for 2,700 US dollars equivalent, but the company itself takes 500 dollars on top because it “provides a rather complicated service adding significant value”.
Deteriorating war front in Donbass region
It is a rare Ukrainian military officer, politician or expert of late who has not been panicking about the collapse of the Ukrainian Armed Forces in Donbass and the rapid advance of the Russian armed forces in the region. Ukrainian military and Telegram channels note that the Russian armed forces are steadily taking towns and villages in Donbass and there is none of the total destruction that took place in the heavily fortified cities of Bakhmut and Avdeevka, which fell in 2023 and 2024, respectively. (The towns and cities of Ukraine-controlled Donbass were heavily fortified in the years following 2015, when Ukraine was supposed to be implementing the Minsk 2 peace agreement it signed with the pro-autonomy movement in Donbass on February 15, 2015 then proceeded to sabotage. (The ‘Minsk-2’ agreement, text here in Wikipedia, was endorsed by no less than the UN Security Council on February 17, 2015.)
Oleksiy Arestovich, a former advisor to the office of the Ukraine president, calls the pace of Russian advances in and around Pokrovsk an operational crisis for the AFU; it is demoralizing the entire Ukrainian military. “Rumors are growing among the troops (and this is the worst part) that the Donetsk region is simply being surrendered by quiet agreement with the Kremlin. Such rumors are signs of very serious demoralization,” he says.
Roman Ponomarenko, a cadre of the former, neo-Nazi ‘Azov Battalion’ (today fully integrated into the Ukraine armed forces and national guard) talks about the same thing, stressing that forcibly conscripted Ukrainians do not want to fight. “For now, it looks like our front in Donbass has collapsed. The defense by the Ukrainian Armed Forces is disorganized, the troops are tired and weakened, and many units are demoralized. The replenishments do not help, due to their inexperience and limited training. In fact, they only complicate the combat work of the existing units. The Russians are not breaking through deeply because their troops are as exhausted as ours. But they retain a significant, quantitative advantage in numbers and weaponry. They have unlimited supplies of ammunition, and therefore, their offensive continues. We cannot stop it yet.”
Igor Mosiychuk has also spoken about the demoralization of the Ukrainian troops. “My friends who are fighting confirm to me that what is happening now among the troops is just a horror—personnel issues, defensive strategy, the movements and rotations of units—it’s just a horror.”
He also notes that in Pokrovsk, where the Russian army is approaching, many Ukrainian citizens, including those from Kiev, are now hastily registering to obtain Russian passports.
Demoralization in the Ukrainian army is caused not only by the fact that most of the army is made up of recruits conscripted against their will in a dubious ‘fight for democracy’. The fact is that neither officers nor soldiers understand the logic of the Ukrainian command’s actions, for example, its incursion into Russia’s Kursk region. To many of them, military decisions seem irrational and have led to unnecessary deaths, and all this plays a role in the army’s decomposition.
Towns and small cities in Donbass where fortifications have been built since 2014 (the year of the far-right coup in Kiev) are suddenly being abandoned and military units are being transferred for an offensive in Kursk, only to be exposed to crushing air strikes there due to the lack of fortifications. In the summer of 2023, Ukrainian troops were sent head-on into a highly publicized ‘counter-offensive’ against carefully prepared Russian defense lines; large numbers were killed or taken prisoner.
Periodically, the Ukrainian command orders groups of commandos to go on raids for public relations purposes, from which many do not return. The purpose of such raids is beyond the comprehension of many military strategists. Soldiers are tasked with staging a ‘breakthrough’ of a small group to a deserted coastline in Crimea, planting a flag and taking a photo, and then leaving, if possible. The cost of a brief video with accompanying photos is human lives.
A captured Ukrainian commando, Oleksandr Lyubas, who survived a failed raid on Crimea, told a court in Russia in early September, “Our training was on scooters, so that disembarkation and advancing could go quickly. There were scooters everywhere. All of us were trained, but the training didn’t last long, maybe three days. We trained in Vilkovo, Odessa region, and were then tasked with entering Crimea, putting up a flag, making a speech and then moving away.”
The timing of such operations, as military leaders have noted in various interviews, is also unclear to the soldiers. The chosen dates are not based upon what can be most effective but, rather, to coincide with some visit somewhere by a Western leader, or when a major international event is to take place.
The Ukrainian telegram channel ‘Rubicon’ warns that if the Ukrainian Armed Forces do not demonstrate significant successes in the near future, skeptical assessments in the Western press of their activities will only gain momentum. It says that in today’s post-modern society, keeping a public’s attention on something for two and a half years is an extremely difficult task and not to be trivialized. This is what the Western governments and media have been trying to do through the ‘serialization’ of information, as in a television series. Loyal media presents to its readers or viewers a series of loosely connected stories, each of which they try to ‘sensationalize’ to maximize public attention. Totally absent are analytical reports, offering a strategic forecast for the future.
In 1914-1917, during World War I, discontent and unrest in the Russian army of the day often arose precisely because offensives and operations were carried out at the wrong time and lacked military logic or visible purpose. They were staged solely at the behest of the allies (Great Britain and France) and treated as a ‘working off’ of the Western loans undertaken by the Tsarist government of the day.
A retired colonel of Ukraine’s SBU (secret police) and military expert, Oleh Starikov believes that in two months’ time, there will be “some kind of capitulation”, and this will lead to big changes in Ukraine’s political landscape. “November will be the end of the war, but what the new beginning will be, I cannot say. It will be the beginning of ‘something’, but no one knows what, exactly. Ukraine will be different; the structure of society and the elites of society will be completely different. Those elites who are now in the Verkhovna Rada will no longer be there. Whether that is for the better or worse is a separate conversation, but for sure Ukraine will be different.”
Thus is Ukraine entering a period of strong political and economic turbulence. This is a direct consequence of its complete dependence—economic and military—on the United States and on the outcome of its presidential election in November.
In the meantime, Western leaders and bankers are advising Ukraine to catch ever-more people with its military conscription and ship them off to the front while raising taxes on everyone and looking for yet more financial resources to repay loans for the whole imbroglio.
There is a joke circulating in Ukraine that for a cow to give more milk while eating less, it needs to be fed less and milked more. This is a rather ironic summary of what Western imperialism is holding out for the future of Ukraine.
Ukrainian (Western-backed) drone terrorism in my southeastern Moscow district
Eva Bartlett | September 13, 2024
Starting early Tuesday, September 10, Russian air defense shot down 144 Ukrainian drones in 9 regions, including 72 drones above Bryansk Region and 20 above Moscow Region, according to the Ministry of Defence.
Three drones managed to hit three different apartment buildings in the Ramenskoe district, one impact tragically killing a 46 year old woman and injuring at least three other civilians. These were completely civilian, residential, areas. Ukraine sending drones to strike there was pure terrorism.
Just over one week prior, on September 1, Russian air defense shot down or intercepted 158 drones, some of those again in the Ramenskoe region.
From my nearby district just after 2:15am Tuesday, I heard the first air defense blasts targeting drones, followed by several more until daylight.
On Wednesday, I went to the area within Ramenskoe district where the drones impacted. Irina Medvedeva, a friend’s sister, was in an apartment next to one of the buildings struck. She witnessed the first explosion which killed Zinaida Akhmetovna.
While there, we met a man who had come from Kursk (which Ukraine started attacking last month) for a week of quiet. He said he would go back to Kursk, in spite of Ukraine’s continued (failed) attacks on the city, spoke of how the people there support their army and said Russia would defeat the Ukrainian terrorism.
Related links here: https://t.me/Reality_Theories/20594
Four Americans convicted for ‘conspiring’ with Russia
RT | September 13, 2024
Four US black rights activists have been convicted of conspiring to act as unregistered Russian agents, the Justice Department has announced. They have been acquitted, however, of a more serious charge of acting as agents of a foreign government.
A Florida jury found four defendants – Omali Yeshitela, Penny Hess, Jesse Nevel, and Augustus C. Romain Jr. – guilty “of conspiracy to act as agents of a foreign government,” the Justice Department said on Thursday.
“Each defendant faces a maximum penalty of five years in prison. A sentencing date has not yet been set,” it added.
The trial was part of longer-running US legal proceedings against Russian human rights activist Aleksandr Ionov, who heads the Russian Anti-Globalization Movement. According to prosecutors, the four defendants carried out actions in the US between 2015 and 2022 on behalf of the Russian government and received money and support from Ionov, who was allegedly in contact with Russian intelligence.
Yeshitela, Hess, and Nevel had also been charged with the more serious crime of acting as agents of a foreign government, although jurors cleared them of those charges.
The Justice Department claimed that the Americans all knew Ionov, who has also been indicted in the US in connection with the case but is not under arrest, worked for the Russian government.
All four of those convicted are or were affiliated with the African People’s Socialist Party and Uhuru Movement, which defends the rights of African people. They include the movement’s 82-year-old leader, Yeshitela, as well as members Hess, 78 and Nevel, 34. Former member Romain, 38, founded the Atlanta-based Black Hammer Party in 2018.
The defense, meanwhile, claimed that the government had prosecuted the accused simply for their pro-Russian views.
“This case has always been about free speech,” Hess’ attorney, Leonard Goodman, told the AFP news agency.
In an interview with RT last week, Ionov said that in the absence of any evidence, the US government had leveraged its foreign agents laws.
“Over two years, our counterparts have been unable to find any evidence” and used “the entire list of restrictions and limitations that could be imposed,” he claimed.
Yeshitela, speaking to a crowd outside the courthouse after the trial, said it was important that “they were unable to convict us of working for anybody except black people.” He stressed that he was “willing to be charged and found guilty of working for black people.”
The defense noted that none of the 12 jurors was black. After the dismissal of a black woman from the original line-up in week two of the trial, the judge refused the defense’s request to replace her with an alternate black juror.
Russian ‘Force Majeure’ on Resource Exports Could Clobber Western Economies: Here’s Why
By Ilya Tsukanov – Sputnik – 12.09.2024
President Putin has asked the government to consider restrictions on the export of strategic materials like nickel, titanium and uranium in response to unfriendly countries’ actions. Sputnik asked investment experts specializing in resource markets how these restrictions would impact the world economy. In short: it wouldn’t be pretty for the West.
Investors and market experts are buzzing over the Russian president’s instructions to Prime Minister Mishustin to whip up a report on measures Russia could take to limit the export of certain strategic minerals in response to Western sanctions policy, with uranium stocks enjoying an immediate price surge, and observers warning of shortages and hefty price increases for strategic metals if were to Moscow move forward with restrictions.
Along with nickel, titanium and uranium, Putin hinted that “other” resources may be affected, while emphasizing that restrictions should be considered so long as “this does not harm us.”
A resource superpower, Russia is endowed with substantial reserves of virtually all the primary commodities required to keep a modern economy functioning.
- The country possesses up to 12% of the world’s oil reserves, 32% of its natural gas, 8% of all untapped uranium, and 11% of the planet’s coal.
- Russia accounts for 25% of global iron reserves, 33% of nickel, 15% of zinc and titanium, 11% of tin, 10% of lead and rhodium, 8% of chromium, 7% of copper, 3% of cobalt, 2% of bauxite and about 1% of gallium, plus substantial amounts of beryllium, bismuth, and mercury. Russia also has about 12% of global potash (used in an array of areas, from agriculture and industrial chemicals to pharmaceuticals).
- Up to 23% of the world’s gold, 12% of silver, up to a fifth of platinum group metals, and as much as 55% of diamonds are buried under Russia’s soil.
- Russia is also a potential world leader in the production of rare earth minerals (which are used in an array of modern high-tech devices, communications systems and advanced weaponry). While it only accounts for about 2% of rare earths production today, Russia has the second-largest reserves, constituting up to 28.7 million metric tons, and has committed to major investments in production and processing. Known rare earths possessed by Russia include samarium, europium, gadolinium, lanthanum, neodymium, promethium, and cerium.
World’s Dependence on Russian Resources
Russia’s detractors have often played up its resource exports as a sign of the country’s lagging development or low place in the global hierarchy of ‘developed vs. underdeveloped’ nations. However, the partial breakdown in ties with Western countries after 2022 showed that while Russia can definitely survive without Western technological and consumer goods, the same cannot be said of the West when it comes to Russian oil, gas, uranium, fertilizers and other materials.
The US, for instance, continues to rely on Russian uranium to fuel its nuclear power plants, vowing to wean itself off its dependency only by 2028. Europe, having largely cut itself off from Russia’s cheap and dependable pipeline-delivered natural gas, is currently buying record volumes of Russian LNG amid shortages of US and Gulf-sourced supplies. Furthermore, major Western agricultural producers including the US, Germany, France and Poland have carved out special exceptions for themselves to allow the continued purchase of Russia’s world-class nitrogen fertilizers, which are energy-intensive to produce.
“The pain” of a Russian freeze on strategic resource exports “would be felt by both the US and the EU, and all countries listed as ‘unfriendly’ to Russia, as they would have to source the required elements from third country suppliers, and that would entail an appreciable price increase for the commodity, and the extended supply chain costs that entails,” Paul Goncharoff, general director of consulting firm Goncharoff LCC, told Sputnik, commenting on Putin’s proposal.
“In this case, most if not all alternative suppliers would be countries listed as ‘friendly’ to Russia. This is a value-added benefit for those countries,” Goncharoff added.
“In every instance the end user pays this mandatory unlegislated tax bill in the form of even higher inflation,” Goncharoff said, hinting that the higher commodity prices would add to the pain already being experienced by producers and consumers in many Western countries as a consequence of the two-and-a-half-year-old hybrid war against Russia.
The US and Europe should expect a 15-20% bump in the costs of its strategic resource imports if Moscow moves ahead with the restrictions, especially since Russia is in a unique position globally in the production of high-quality nickel, aviation-grade titanium, and enriched uranium, says Maxim Khudalov, chief strategist at Vector X, a Moscow-based investment and brokerage firm.
For instance, while Russia today accounts for ‘only’ about 8% of total global nickel output, it accounts for about 20% of the production of “high-grade nickel used to produce high-quality stainless steel and nickel-containing alloys, which are needed for space, aviation and defense technologies,” Khudalov explained.
The same goes for high quality titanium, Khudalov said, pointing out Russia’s titanium giant VSMPO-AVISMA in Sverdlovsk region is “unique in the world” as far as its ability to produce vast amounts of aviation-grade titanium is concerned.
Finding a replacement supplier would take time, including running a gauntlet of quality and safety testing and recertification which could take years, and in the case of aviation-grade titanium be required to meet strict temperature, bending, pressure load and other requirements, the expert noted.
“In an airplane, you can’t just say ‘well, I don’t like this supplier of an element used for the wing, I’ll take it from somewhere else.’ Nothing of the kind. If you replace the element used in the wing, you change the airplane, and have to retest it, because it’s no longer safe for civilian use,” Khudalov explained. “The conclusion here is that it is very difficult to replace Russian supplies in the aviation industry, requiring significant recertification efforts.”
If Europe loses access to Russian aviation-grade titanium, that would add to Airbus’s production costs, affecting the aviation giant considerably in its high-stakes rivalry with Boeing.
Meanwhile, higher nickel costs would mean higher prices for virtually all of Europe’s high-tech products, from electronics to specialized mechanical engineering products, Khudalov said, emphasizing that “all of this will become more expensive in Europe and again allow their American ‘friends’ to grab the remainder of their markets.”
“In this sense, Europe is more vulnerable than the US, because the US, with all its capabilities, can afford to increase production costs, at least because their energy is cheap. Europe cannot afford any increase in production costs and will objectively lose,” Khudalov said.
In the case of enriched uranium, the situation is even more complex, according to Khudalov, because it is a restricted resource typically exported to a specific customer for a specific use, and planning for the replacement of suppliers is a long and painstaking process, since nuclear power plants can’t simply be turned on and off at will.
“The French are the second player after Russia in uranium enrichment, but Russian enrichment technology is head and shoulders above anyone else in the world, and our enrichment costs are 35-40% cheaper than anywhere in the world. So if a country is forced to switch to French-sourced material, it will have to pay a very hefty premium,” Khudalov emphasized.
In that sense, France could meet increased US demand over time, but not overnight, since it would have to ramp up its own enrichment capacity.
“The US themselves were planning on disconnecting from our uranium starting in 2028. Well, we could ‘help them’, so to speak, to implement their decision by making deliveries more regulated,” Khudalov suggested.
Short-Term Losses, Long-Term Win
Russia, over the short term, could lose a bit of its export revenues if resource exports to the West were suddenly curtailed, Khudalov noted.
“But on the other hand, what do we need export revenues for? Generally speaking, the whole point of international trade for us is to sell raw materials in exchange for technology. Western countries have refused to supply us with technology basically going back to 2014. Then the question is: why do we continue to supply them with strategic raw materials? To get some green pieces of paper which they then seize from us? This is a rather strange position. Therefore, here it is turning out that since they limit our access to technology, we are starting to limit their access to raw materials,” Khudalov said.
“It can’t be said that all these possible restrictions on the Americans and the Europeans are critical and would kill their industry. It won’t. But it will add very serious difficulties, first and foremost of an organizational nature, because they would have to look for a supplier of comparable quality, and of course, pay a price they’re not accustomed to paying. Because when a force majeure occurs on the market, and for them this would constitute a force majeure, any normal businessman will be obliged to take advantage of their status as an alternative supplier. Most of the alternative suppliers are located in China, with whom the Americans are in the process of kicking off a global trade war,” the observer stressed.
“The cherry on the cake is that the president’s proposal sounded like a proposal to limit the supply of strategic metals to unfriendly countries, but probably implies no restrictions for friendly countries. In that case, we would deliver a nice pass to China, whose entire industry is aimed at producing high-tech equipment, and would effectively get a 15-20% advantage on the cost of strategic materials over Western competitors,” benefiting Beijing in its push to put “pressure on Europe and the US in all markets” globally, Khudalov said.
Russia, meanwhile, will be able to reorient its strategic metals exports to other major alternative markets as well, including India, according to the expert.