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Putin Gobsmacks Obama and Euro-Leaders with Surprise Natural Gas Deal

Politics / GeoPolitics Dec 07, 2014 - 03:51 PM GMT

By: Mike_Whitney

Politics

On Monday, Russian President Vladimir Putin clinched a groundbreaking deal with Turkish President Recep Tayyip Erdoğan that will strengthen economic ties between the two nations and make Turkey the major hub for Russian gas in the region. Under the terms of the agreement, Russia will pump additional natural gas to locations in central Turkey and to a “hub at the Turkish-Greek border” which will eventually provide Putin with backdoor access to the lucrative EU market, although Turkey will serve as the critical intermediary. The move creates a de facto Russo-Turkey alliance that could shift the regional balance of power decisively in Moscow’s favor, thus creating another formidable hurtle for Washington’s “pivot to Asia” strategy.  While the media is characterizing the change in plans (Putin has abandoned the South Stream pipeline project that would have transported gas to southern Europe) as a “diplomatic defeat” for Russia, the opposite appears to be the case.  Putin has once again outmaneuvered the US on both the energy and geopolitical fronts adding to his long list of policy triumphs. Here’s a brief summary from Andrew Korybko at Sputnik News:


“Russia has abandoned the troubled South Stream project and will now be building its replacement with Turkey. This monumental decision signals that Ankara has made its choice to reject Euro-Atlanticsm and embrace Eurasian integration.

 In what may possibly be the biggest move towards multipolarity thus far,..Turkey, has done away with its former Euro-Atlantic ambitions. A year ago, none of this would have been foreseeable, but the absolute failure of the US’ Mideast policy and the EU’s energy one made this stunning reversal possible in under a year. Turkey is still anticipated to have some privileged relations with the West, but the entire nature of the relationship has forever changed as the country officially engages in pragmatic multipolarity.

Turkey’s leadership made a major move by sealing such a colossal deal with Russia in such a sensitive political environment, and the old friendship can never be restored…The reverberations are truly global.”  (“Cold Turkey: Ankara Buckles Against Western Pressure, Turns to Russia”, Sputnik News)

Korybko seems to be alone in grasping the magnitude of what happened in Ankara on Monday, although –judging by the Obama administration’s silence on the topic–the gravity of the transaction is beginning to sink in.  Grandmaster Vlad’s latest move has caught US powerbrokers flat-footed and left them speechless. This is a scenario that no one had anticipated and, if it’s not handled correctly, could turn out to be a real nightmare. Here’s more on Monday’s press conference from Russia Today:

“Putin said that Russia is ready to build a new pipeline to meet Turkey’s growing gas demand, which may include a special hub on the Turkish-Greek border for customers in southern Europe.

For now, the supply of Russian gas to Turkey will be raised by 3 billion cubic meters via the already operating Blue Stream pipeline…Moscow will also reduce the gas price for Turkish customers by 6 percent from January 1, 2015, Putin said.

“We are ready to further reduce gas prices along with the implementation of our joint large-scale projects,” he added.”  (“Putin: Russia forced to withdraw from S. Stream project due to EU stance”, RT)

How can this happen? How can Putin waltz into Ankara, scribble his name on a few sheets of paper, and abscond with a key US ally right under Washington’s nose?  Isn’t there anyone at the White House who’s smart enough to anticipate a scenario like this or have they all been replaced with warmongering ding-dongs like Susan Rice and Samantha Powers?

The Obama administration has been doing everything in its power to control the flow of gas from east to west and to undermine Russian-EU economic integration. Now it looks like the nimble Putin has found a way to avoid the economic sanctions, (Turkey rejected sanctions on Russia)  avoid US coercion and blackmail (which was used on Bulgaria, Hungary, and Serbia), and avoid Washington’s endless belligerence and hostility, and achieve his objectives at the same time.   But– then again– isn’t that what you’d expect from a level-headed martial arts pro like Putin?

“I won’t beat you,” says Bad Vlad.  “I’ll let you to beat yourself.”

And, so he has. Just ask the befuddled Obama who has yet to prevail in any of his encounters with Putin.

But why the silence? Why hasn’t the White House issued a statement about the big Russian-Turkey gas deal that everyone’s talking about?

I’ll tell you why. It’s because they don’t know what the hell just hit them, that’s why. They were completely blindsided by the announcement and can’t quite figure out what it means for the issues that are on the very top of their foreign policy agenda, like the pivot to Asia, or the wars in Syria and Ukraine, or the much-ballyhooed gas pipeline from Qatar to the EU, that was supposed to transit– you guessed it– Turkey.  Is that plan still in the works or has the Putin-Erdogan alliance put the kibosh on that gem too?   Let’s face it, Putin has really knocked it out of the park this time. Team Obama is clearly out of its league and has no idea of what’s going on. If Turkey turns eastward and joins the growing Russian bloc, US policymakers are going to have to scrap the better part of their strategic plans for the coming century and go back to Square 1. What a headache.

There’s a good article in Wednesday’s New York Times that summarizes Washington’s ambivalence towards South Stream perfectly. Here’s an excerpt:

“Moscow has long presented the project, proposed in 2007, as making good business sense because it would provide a new route for Russian gas to reach Europe. Washington and Brussels have opposed the project on the grounds that it was a vehicle for cementing Russian influence over southern Europe and for bypassing Ukraine, whose price disputes with Gazprom twice interrupted supplies to Europe in recent years.”

Putin’s Surprise Call to Scrap South Stream Gas Pipeline Leaves Europe Reeling”, New York Times)

This has been the argument from the get-go, that selling gas to people in the EU somehow strengthens Putin’s maniacal grip on the continent. What a joke. Would you, dear reader, be willing turn off the heat, tear up your energy bill, and freeze to death in the dark to prove to your gas company that you’re not willing to capitulate to their tyrannical rule?

Of course not, because the idea is ridiculous. Just like blocking South Stream is ridiculous. Putin is selling gas, not tyranny.  He doesn’t want people clicking their heels and goosestepping to work. That’s just propaganda from the people in the oil industry who lost the competition for supplying fuel to the EU. Call it sour grapes if you want, because that’s what it is. Their pipeline failed, (Nabucco) and Putin’s won. End of story. It’s called capitalism. Deal with it.

And here’s another thing: The countries that South Stream would have served, do not have a back-up supplier to meet their growing gas needs. So by following Washington’s lead, they’ve basically shot themselves in the foot. Analysts figure that any replacement for Russian gas will probably be 30 percent more expensive then they would have paid Gazprom.

Hurrah for the US! Hurrah for stupidity!

The US has been determined to sabotage South Stream from the very beginning, mainly because Washington wants its corporations and banks to control the flow of gas to the EU market through privately-owned pipelines in Ukraine. That way they can rake in bigger profits for their moneybags shareholders. Without going into too much detail about the various methods the US has used to torpedo the project, there’s one story that’s worth a look. This is from Zero Hedge:

 “…two months before the Ukraine government was overthrown the prime  minister of Bulgaria, Plamen Oresharski,  ordered a halt to work on the South Stream on the recommendation of the EU. The decision was announced after his talks with US senators.

“At this time there is a request from the European Commission, after which we’ve suspended the current works, I ordered it,” Oresharski told journalists after meeting with John McCain, Chris Murphy and Ron Johnson during their visit to Bulgaria on Sunday. “Further proceedings will be decided after additional consultations with Brussels.”

At the time McCain, commenting on the situation, said that “Bulgaria should solve the South Stream problems in collaboration with European colleagues,” adding that in the current situation they would want “less Russian involvement” in the project.

“America has decided that it wants to put itself in a position where it excludes anybody it doesn’t like from countries where it thinks it might have an interest, and there is no economic rationality in this at all,” (said)Ben Aris, editor of Business New Europe told RT.”  (“Europe Gives Bulgaria A Bank System Lifeline As Battle Over “South Stream” Pipeline Heats Up”, Zero Hedge)

Let me get this straight: Madman McCain strolls into town and immediately starts ordering people around telling them he wants  “less Russian involvement”, and that’s enough to bring South Stream to a screeching halt? Is that what you’re telling me?

Yep. Sure sounds like it.

Does that help you see what’s really going here? This isn’t about Putin. It’s about gas, and who’s going to profit from that gas, and in whose currency that gas will be denominated. That’s what it’s about. The rest of the nonsense about “Russian involvement” or terrorism or human rights or national sovereignty is just gibberish. The people who run this country (like McCain), don’t care about that kind of stuff.  What they care about is money; money and power. That’s it.

So what are they going to do now?  How are the big powerboys in Washington going to express their rage over this new threat created by Putin and Erdogan?

It doesn’t take a genius to figure that one out, after all, we’ve seen it a million times before.

They’re going to go after Erdogan hammer and tongs. That’s what they always do, isn’t it?

The only reason they haven’t started in already is because they’re getting their propaganda ducks in a row, which usually takes a day or two. But as soon as that’s taken care of, they’ll start dismantling old Recep one excruciating headline at a time. Erdogan is going to be the new Hitler and the greatest threat to humanity the world has ever seen.  You can bet on it.

Whistleblower Sibel Edmonds thinks that Washington has had-it-in for Erdogan a long time now, dating back to a  dust up he had with the CIA a few years back. In any event, she gives a pretty good account of what we can expect now that Erdogan is on Washington’s enemies list.  Here’s a clip from her post at Boiling Frogs:

“We all know what happens to those puppets when they end up in a rift with the CIA. Don’t we? The rift always brings expiration. Once a puppet is considered expired, then lo and behold, all of a sudden, the reversal branding and marketing begins: All old skeletons are dug out of the deep closets and leaked to the media. His previously overlooked human rights violations are looked at and scrutinized under a microscope. The terrorist card is brought into the equation. And the list goes on…

… All Empire-installed puppets and regimes must commit to the Empire’s commandments….Thou shall not violate the Imperial commandments. Because if you do, thou shall be disgraced, exposed, uninstalled, and may even be given death. All you have to do is look at the past century’s history. See what happens when an installed puppet gets too confident and inflicted with hubris, and ignores one or more commandments. This is when they are reborn as dictators, despots, torturers, and yes, terrorists. This is when their backyards get dug up to find a few grams of weapons of mass destruction.”…

No matter how we look at it Erdogan’s days are numbered … Anyone who ever dares to be this reckless will be punished and made an example for all other installed-puppets…”  (“Turkish PM Erdogan: The Speedy Transformation of an Imperial Puppet”, BFP)

So there it is. That’s what you can expect by the end of the week when the media starts their full-throttle demonizing of Erdogan, the man who dared to act independently and put the interests of his own people above those of the Washington mob bosses.  As anyone who’s followed US foreign policy for the last 60 years will tell you; that’s a big no-no.

By Mike Whitney

Email: fergiewhitney@msn.com

Mike Whitney lives in Washington state. He is a contributor to Hopeless: Barack Obama and the Politics of Illusion (AK Press). Hopeless is also available in a Kindle edition. He can be reached at fergiewhitney@msn.com.

© 2014 Copyright Mike Whitney - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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