Showing posts with label Vladimir Putin. Show all posts
Showing posts with label Vladimir Putin. Show all posts

Friday, September 7, 2012

Why is Putin stockpiling gold?



Commentary: Russia is bulking up its gold reserve

By Brett Arends

I can’t imagine it means anything cheerful that Vladimir Putin, the Russian czar, is stockpiling gold as fast as he can get his hands on it.

According to the World Gold Council, Russia has more than doubled its gold reserves in the past five years. Putin has taken advantage of the financial crisis to build the world’s fifth-biggest gold pile in a handful of years, and is buying about half a billion dollars’ worth every month.

It emerged last month that financial gurus George Soros and John Paulson had also increased their bullion exposure, but it’s Putin that’s really caught my eye.

No one else in the world plays global power politics as ruthlessly as Russia’s chilling strongman, the man who effectively stole a Super Bowl ring from Bob Kraft, the owner of the New England Patriots, when they met in Russia some years ago.

Putin’s moves may matter to your finances, because there are two ways to look at gold.

On the one hand, it’s an investment that by most modern standards seems to make no sense. It generates no cash flow and serves no practical purpose. Warren Buffett has pointed out that we dig it out of one hole in the ground only to stick it in another, and anyone watching this from Mars would be very confused.

You can forget claims that it’s “real” money. There’s no such thing. Money is just an accounting device, a way of keeping track of how much each of us produces and consumes. Gold is a shiny and somewhat tacky looking metal that is malleable, durable and heavy. A recent research paper by Duke University’s Campbell Harvey and co-author Claude Erb raised serious questions about most of the arguments in favor of gold as an investment.

But there’s another way to look at gold: As the most liquid reserve in times of turmoil, or worse.
The big story of our era is not that the Spanish government is broke, nor is it that Paul Ryan apparently feels the need to embellish his running record. It’s that the United States, which has dominated the world’s economy for several lifetimes, is in relative decline.

As was first reported here in April of last year, according to International Monetary Fund calculations, the U.S. is on track to lose its status as the world’s biggest economy—when measured in real, purchasing-power terms—to China by 2017.

We will soon be the first people in two hundred years to live in a world not dominated by either Pax Americana or Pax Britannica. This sort of changing of the guard has never been peaceful. The declines of the Spanish, French and British empires were all accompanied by conflict. The decline of British hegemony was a leading cause of the First and Second World Wars.

What will happen as the U.S. loses its pre-eminence?

Maybe this will turn out better than similar episodes in the past. Maybe the Chinese will embrace an open society and the rule of law. If you believe that, there is probably no reason to hold any gold.
On the other hand, we may be about to enter a much more turbulent and dangerous era of power politics and international competition.

Not long ago, world gold reserves were mainly in the hands of the U.S. and the Europeans, which accumulated their holdings during their centuries at the top. The U.S. has 75% of its currency reserves in gold. Many other first world powers have comparable proportions.

Thursday, August 30, 2012

Russia is disengaging from Syria: Arms shipments stopped, warships exit Tartus



DEBKAfile Exclusive Report

Russian naval vessels have unexpectedly departed the Syrian Mediterranean port of Tartus and Russian arms shipments to Syria have been suddenly discontinued. debkafile’s military sources reveal that those and other steps indicate that the Russians are rapidly drawing away from the Syrian arena to avoid getting caught up in the escalating hostilities expected to arise from military intervention by the US, Europe and a number of Arab states. Russian intelligence appears to have decided that this outside intervention is imminent and Moscow looks anxious to keep its distance for now.
According to our military and Russian sources, these drastic steps must have been personally ordered by President Vladimir Putin. He is believed to have acted over the objections of some of his army and naval chiefs. This would explain the mixed statements issuing from Moscow in recent days about the disposition of Russian personnel at the naval base in Tartus and Russian military personnel in Syria.

Wednesday, Aug. 22, Commander of the Russian Navy Vice Adm. Viktor Chirkov said that if the fighting in Syria reached Tartus, Moscow may decide to evacuate the base. He stressed that this decision would have to be taken on the authority of President Putin. He was the first Russian official to suggest the possibility of an evacuation.

A week later, Aug. 28, Russian chief of staff Gen. Nikolai Makarov denied anything had changed in the working procedures of Russian military personnel in Syria or that there were any plans to evacuate the Russian naval base in Tartus:

"I think it's too early to draw conclusions [from the situation in Syria]," said the general. "No one is running away from there.”

When a Russian journalist pressed the general and ventured to ask whether Moscow was terminating its military involvement in Syria, Marakov retorted, “Why are you so worried about Syria?"
But he didn’t answer the question.

debkafile's military sources disclose that the Russians have taken five significant military steps with regard to Syria in the last two weeks:

1. They cancelled a large-scale naval exercise dubbed “Caucasus 2012” scheduled to start mid-August in the eastern Mediterranean opposite the Syrian coast;

2. Warships from three fleets - the Northern, Baltic and Black Sea – concentrated opposite Syria have dispersed and returned to their bases;

3. Syrian President Bashar Assad was notified that Moscow was halting military aid to his army - except for intelligence updates and advice on logistics from Russian military advisers;

4.  Moscow has not clearly announced a freeze on arms shipments, including replacement parts for Russian weapons, which make up the bulk of the Syrian army's weaponry. Officials have only said, “There are no large Russian weapons shipments planned in the near future to Syria."

5. The only Russian naval ship left in Tartus - a floating Russian Navy PM-138 shipyard – is also under orders to depart Tartus and return to the Black Sea in September.

A Russian source disclosed that all the remaining Russian personnel in Tartus have gathered on the floating shipyard, except for two officers on shore. This vessel and the remaining personnel are evidently packed up and ready to sail at any moment out of the Syrian port.

Tuesday, August 14, 2012

A Secret Putin Palace on Russia’s Black Sea?



Extravagant mansions are popping up along Russia’s Black Sea coast. Activists say one belongs to the president—and that it was built with illicit state funds. Anna Nemtsova reports.

On a recent morning, in the village of Praskoveyevka, located on the northern coast of Russia's Black Sea, a few hours’ drive from Sochi, host of the 2014 Winter Olympics, a group of activists—some in bathing suits, others in the nude—went for a swim at a public beach. Their goal: to get a closer look at an extravagant mansion, set in the middle of a nearby forest. The house, with its black, iron gate and Soviet era façade, looked surreal, as if someone had transported it from Moscow and dropped it in the middle of nowhere.

As the activists swam toward the mansion, two security guards in black uniforms spotted them from a distance. Soon a motor boat with more men in black appeared, its engine growling ominously as it sped over the water. Hoping to make an escape, activists swam toward a dredge with a “Spetcstroi Rossii” sign on its side, for the special state construction company of the Russian government. Yet as the boat approached, the guards realized that some of the activists were naked. Disgusted, they gave up pursuit. On that day at least, they had no desire to take nude prisoners; instead they simply ordered them to return to the shore. "Tell us when you plan to visit us next time," one of the guards said snidely.

For months, the activists have been camping in the woods near the mansion, sneaking past the guards and the "No Trespassing" signs to photograph the massive home. Last week, they posted photos online of its lush courtyard and Tsar-like bedroom on their popular blog. On paper, the house and the surrounding 40 acres are owned by Indocopas, a mysterious company without a Web site or even a phone number. Yet two years ago, a disgruntled investor named Sergei Kolesnikov, who is not involved in the project, sent a public letter to then-President Dmitry Medvedev claiming that state money was being used to build the private mansion on state-owned land. Its real owner, he said: current President Vladimir Putin. (Department for Presidential Affairs did not return calls for comment).

Since then, more people have come forward alleging that the construction of Putin's Palace on the Black Sea, as it's commonly known, and the construction of summer homes belonging to other Russian luminaries, have involved the illegal use of state funds and the violation of environmental regulations. Meanwhile, Russia's growing political opposition has cast a spotlight on these extravagant mansions, which have come to be viewed as symbols of official corruption. "Historically, each Russian tsar built himself a new palace," said Andrei Petrov, a researcher for Green Peace in Moscow. "But our current leaders' appetites seem wild [by comparison]. They are destroying the most beautiful parts of the country."

The trend allegedly began in 2001, when President Putin decided to turn Strelna Palace outside of St. Petersburg into one of his summer homes (though unlike the Black Sea mansion, this one is open to the public). By 2005, a building rush had begun, critics say, as other top Russian officials sought similarly posh seasonal residences. Today, activists count as many as 26 new mansions across the country with picturesque views of the ocean or nearby rivers or lakes—all allegedly built by oligarchs or politicians on protected public land using Russian tax dollars. "We find Putin's palaces in the most beautiful spots of the Russian federation, from Siberia's Altai, where he has a huge villa, to my hometown on the Volga River," said Sergei Mitrokhin, the leader of the opposition Yabloko Party.

New mansions continue to spring up along the coast. Not far from Putin's alleged home, in Divnomorsky, is another enormous white stone residence, set on a 49 acres of land that opposition leaders say belongs to Patriarch Kirill, the leader of Russia's Orthodox Church. (Kirill’s office denies this, saying it is a southern administrative center for the church.) Photographs of the building, which were reviewed by The Daily Beast, show a house with an onion-like dome awkwardly stuck on top of multiple verandas. Greek columns and large arched windows decorate the front.

Determining precisely who owns these mansions is difficult. Public documents show that the Russian government owns some of them, but others appear to belong to private companies, which activists say are little more than fronts for politicians and other luminaries. Robert Schlegel, a deputy in Putin's ruling United Russia party said that it's "close to impossible" to receive an official comment explaining details about Putin's mansions, or anyone else's for that matter, as "nobody in the Kremlin's press service has authority to talk about that."

Tuesday, July 17, 2012

Russia accuses West of blackmail on Syria plans



MOSCOW (AP) — Russia on Monday accused the West of effectively trying to use blackmail to secure a new UN Security Council resolution that would authorize the use of force in Syria. 

Foreign Minister Sergey Lavrov's comments came ahead of a meeting with Kofi Annan, the United Nations and Arab League envoy for Syria whose plan for halting the fighting is weakening amid escalating violence.

The council is debating a new resolution on Syria, spurred by the July 20 expiration of the mandate for the UN observer force there and the failure of the Annan plan.

Russia opposes any resolution that can be enforced militarily.

“To our great regret, there are elements of blackmail,” Lavrov said at a news conference. “We are being told that if you do not agree to passing the resolution under Chapter 7 of the UN Charter, then we shall refuse to extend the mandate of the monitoring mission.”

“We consider it to be an absolutely counterproductive and dangerous approach, since it is unacceptable to use monitors as bargaining chips,” he said.

Throughout the 16-month Syrian crisis, Russia has adamantly opposed international military intervention, fearing a repeat of the type of international action that helped drive Libya's Moammar Gaddafi out of power.

That position has put Moscow under intense criticism. Russia has rejected the criticism by saying it does not overtly support Assad, Russia's longtime ally, and by strongly backing Annan's plan.

Russia says any change of power in Syria must be achieved through negotiation, but the Syrian opposition has repeatedly said no negotiations with the Assad regime are possible unless he first leaves power.

Lavrov reiterated Moscow's position on Monday, saying it was unrealistic to try to persuade Assad to resign.

“He won't leave, not because we are defending him, but simply because a very significant part of the population in Syria stands behind him,” he said.

Comments by Annan last week indicated he favors the British resolution draft and it was unclear if he would have any significant leverage to exert on Russia during his two-day trip to Moscow, which also includes a meeting with President Vladimir Putin on Tuesday.

Lavrov said he would not characterize the situation as a stalemate, but expressed dismay with the continuing fighting.

“What is happening in Syria is horrible,” he said.

Tuesday, June 26, 2012

British forces in Syria, Assad presidential compound said under attack



DEBKAfile Exclusive Report

Unconfirmed first reports from British, French and Turkish sources say British special operations forces crossed from Turkey into northern Syria Tuesday, May 26, and advanced up to 10 kilometers inside the country. The same sources report heavy fighting around the Presidential Guards compound on the outskirts of Damascus.

debkafile’s military sources note that this compound exists to defend Bashar Assad’s presidential palace on Mount Qaisoun overlooking Damascus.

British and Gulf TV stations are again running interviews with dozens of Syrian soldiers taken prisoner by rebel forces and transferred to Free Syrian Army centers in South Turkey. But this time, they are being aired in conjunction with those two developments, indicating pivotal and coordinated military action inside the embattled country, or even the start of western intervention against the Assad regime.

Later Tuesday, Gulf military sources confirmed the presence of British special forces in Syria.

Our military sources estimate that the British military drive into Syria, if confirmed, is designed to establish the first safe zone along the Syrian-Turkish border, to be followed by more Western military incursions to establish additional zones of safe asylum in other parts of Syria.

This follow-up action would depend substantially on Syrian, Russian and Iranian (+ Hizballah) responses to the initial stage of the operation.

The reported British incursion, if confirmed, occurred at the tail end of Russian President Vladimir Putin’s 24-hour visit to Israel Tuesday morning and would have posed a direct challenge to his repeated warning that Moscow would not tolerate Western military intervention in Syria and actively prevent it. Similar warnings have issued from Tehran.

As for the timing, the double military drive against Assad also occurred hours before a NATO “consultation” in Brussels on the shooting down of a Turkish warplane by Syria last Friday, June 22, which Ankara stated Monday “must not go unpunished.”

The two-pronged operation - the reported British incursion and major clash at the front door of Assad’s presidential palace - would appear to be designed to widen the cracks in his regime and speed its final breakup.

Monday, June 25, 2012

Putin-Netanyahu talks to focus on rising Islamist power: Cairo then Damascus



DEBKAfile Exclusive Analysis

The Muslim Brotherhood’s rise to power in Egypt – and soon, possibly, in Syria - will have pushed to the sidelines such obvious topics as Iran and gas when Monday, June 25, Russian President Vladimir Putin on a short visit to Israel meets Prime Minister Binyamin Netanyahu.

On this subject at least, the Russian and Israeli leaders will find common ground: Both are concerned, to put it mildly, by the chain of Muslim Brotherhood governments rolling out along Middle East shores – Libya, last year; Egypt, yesterday; and Syria, tomorrow. In their view, this process is a menace to regional stability which rivals even that of a nuclear-armed Iran.

Putin counts US President Barack Obama’s sponsorship of Muslim Brotherhood power as a strategic threat to Russian national security because of it could be the match which lights the flame of radical Islam in the Caucasus and among the Russian Muslim populations of the Volga River valleys.

As for Netanyahu, his calm-sounding congratulations for the new, democratically-elected Egyptian president, disguise trepidation. After one domino fell in Cairo, he fears another will fall in Damascus leaving Jordan vulnerable to having its king pushed over by the kingdom’s powerful Muslim Brotherhood.

Israel would then be under siege from three Islamist-ruled neighbors - “moderate” in Obama’s eyes, alarmingly “extremist and expansionist” in the view of Putin and Netanyahu.

In contrast to the Israeli prime minister, the Russian president makes no bones about his utter disapproval of the US President’s “pro-Islamic” policies. His blunt words in support of Syria’s Bashar Assad at the G20 in Mexico Sunday, June 18, were meant as a monkey wrench for US plans to continue to install Muslim power in Arab lands.

Not surprisingly, their conversation on the summit sidelines was described as “candid” – a euphemism for “difficult” – and must have raised a stop sign against the “reset” of ties heralded last year by Washington.

The Israeli Prime Minister keeps on smiling to Obama while grinding his teeth over the security avalanche set in motion at Israel’s front and back doors and wracking his brains for a plan of cooperation with Moscow to arrest the slide.

Israel has already had a foretaste of the trouble to come from Cairo. It bounced all the way from Libya’s Islamist regime to land this month with a sinister bang across Egyptian Sinai’s border with southern Israel.

In the past year, since a new regime took power in Tripoli, the strategic peninsula has been transformed into a major smuggling eden for the distribution of contraband arms and infiltrating Islamist terrorists, including Muslim Brotherhood adherents, into the Hamas-ruled the Gaza Strip and onward to other countries in the region.

For Putin the math is simple: If Libyan Islamists can travel 1,360 kilometers to reach Israel’s borders without anyone stopping them, why not 2,558 kilometers to the Russian Caucasian?

Ironically, the victim of the first suicide attack the Libyan terrorists mounted inside Israel from Sinai was an Israeli Muslim from Haifa, Said Fashasha, who died in a bombing-shooting ambush on Route 10 to Eilat Sunday, June 18. On the same day, the “candid” Obama-Putin conversation also took place at Los Cabos.

Now as then, President Obama continues to push the Russian leader to accept the compromise of Syria’s Vice President Farouk al-Sharaa, a Sunni Muslim, replacing Bashar Assad, with Assad’s brother-in-law, deputy chief of staff Gen. Shawqat Asif, serving alongside him. With those chips in place, Washington believes Assad might be persuaded to go into exile in Moscow.

What Putin hears is that Obama is so eager to have a Sunni Muslim installed in Damascus that he is willing to put up with retaining the Assad clan in power, even Gen. Asif, a chief instigator of the regime’s bloody savagery.

So both Putin and Netanyahu, when they talk in Jerusalem Monday, know they are stumped for a strategy to hold back the Islamist tide washing across this region and potentially farther afield – any more than a diplomatic solution has been found to stall Iran’s nuclear plans.

Saturday, June 2, 2012

Putin warns of worsening Syria conflict




By Anna Smolchenko / AFP

Russian President Vladimir Putin warned Friday of an "extremely dangerous" situation in Syria and emerging signs of a civil war but rejected a military intervention as he met with European leaders.

Amid mounting pressure for Moscow to drop its resistance to tougher UN action on Syria, Putin met with German Chancellor Angela Merkel and had arrived in Paris for talks with newly elected French President Francois Hollande.

In Berlin, Putin appeared to strike a more conciliatory tone, warning of the escalating danger from the Syrian conflict and refraining from openly backing President Bashar al-Assad's regime.

"Today we are seeing emerging elements of civil war," Putin said after arriving in Berlin from Belarus. "It is extremely dangerous."

But he also continued to defy calls for tougher UN action to stop the violence, warning at a joint press conference with Merkel: "You cannot do anything by force and expect an immediate effect."

And he hit back at suggestions Moscow was supplying weapons for use in the internal conflict, after the United States condemned Russian arms deliveries to Syria as "reprehensible".

"As far as arms supplies are concerned, Russia does not supply the weapons that could be used in a civil conflict," Putin told reporters, as he continued his first foreign tour since returning to the Kremlin.

Putin's brief trips to Berlin and Paris came amid mounting outrage in the West against Assad's regime after a massacre of 108 people, including women and children, in the town of Houla last week.

UN rights chief Navi Pillay said the massacre could be a crime against humanity.

In Moscow the foreign ministry blamed the Houla massacre on foreign assistance to Syrian rebels, including arms deliveries and mercenary training.

"The tragedy in Houla showed what can be the outcome of financial aid and smuggling of modern weapons to rebels, recruitment of foreign mercenaries and flirting with various sorts of extremists," the ministry said in a statement.

Putin said Russia, Germany and their partners would do their utmost to stop the violence from escalating and help UN-Arab League envoy Kofi Annan, who has brokered a peace plan for Syria, achieve "positive results".

"We both made clear that we are pushing for a political solution, that the Annan plan can be a starting point but that everything must be done in the United Nations Security Council to implement this plan," Merkel said.

Putin said Moscow was not taking sides in the deadly strife rocking Syria, where the Britain-based Syrian Observatory for Human Rights says 13,000 people have been killed since Assad's regime launched a brutal crackdown on the opposition in March last year.

"There is a need to find a convergence of these interests and have them sit down at a negotiating table. That's the direction we are going to work in."

Merkel earlier greeted Putin with military honours as demonstrators waving Syrian flags shouted and whistled outside.

Putin was to hold a one-on-one meeting and dinner with Hollande, who has refused to rule out foreign military intervention as long as it is carried out with UN backing, followed by a press conference.

British Foreign Secretary William Hague also said Syria was on the verge of a civil war and risked collapsing into sectarian strife after meeting members of the Syrian opposition based in Istanbul.

Germany, France, Britain, the United States and other Western nations expelled Syrian diplomats in protest at the slaughter in Houla.

Syria allies China and Russia, which have both blocked previous attempts at the UN Security Council to condemn Damascus, joined other council members on Sunday in backing a statement condemning the Houla killings.

But US Secretary of State Hillary Clinton on Thursday warned that Russia's policy of propping up the Assad regime could contribute to a civil war and even lead to a wider proxy war because of Iran's support for Damascus.

And she claimed Friday that Russia had continued to supply arms to the Assad regime, raising "serious concerns" in the United States.

"We know there has been a very consistent arms trade, even during the past year, coming from Russia to Syria. We also believe the continuous supply of arms from Russia has strengthened the Assad regime," Clinton told a news conference in Oslo.

Amnesty International demanded that Putin immediately stop Russian weapons deliveries to Syria, while Human Rights Watch called on Putin to make human rights a priority at home and abroad.