On the front side, they are dumping weapons into a black hole in Ukraine. Every time they send different weapons they claimed it is a 'game changer'. Nothing changes. The only thing that changed is Ukraine losing more territory. Do we honestly believe those animal named tanks will change the game? And Russia will forever remember what Nato did, just like Asians not forgetting what the Japanese did during WW2. That is baggage that Nato has to carry forever for trying to threaten Russia by aiding Ukraine.
On the back side, the Europeans are solely bearing the brunt of the energy crisis. Sure, the USA is supplying energy to fill the Russian gap, but at what price? On the surface, the Europeans are sanctioning Russia's energy exports, but discreetly, they are still buying Russian energy via the back door from China, India and even Saudi Arabia.
China, India and Saudi Arabia actually have no necessity to even go to that extent of trying to resell Russian oil to the Europeans by stealth. China for example is in fact using the cheap discounted Russian oil and gas for domestic consumption, while reselling their oil sourced from the USA under long term contracts, and reselling them to the Europeans at big profits. The USA oil does not even have to be shipped to China, but goes straight from USA ports to Europe. And that is also what the Saudis are doing, using cheap discounted Russian oil for domestic usage, while selling their own oil production to the Europeans. There are always ways of getting around man made problems and hurdles. It is only a question of thinking out of the box.
Russia sells its oil to China and India at 40% discount, which is well below the US$60 a barrel price cap. China and India are making hay while the sun shines, being able to consume cheap discounted Russian oil and gas domestically and laughing all the way to the bank by reselling oil from other sources to Europe at huge profits. Don't blame them, as the USA is doing the same thing as a close ally of the Europeans. Europeans are not allies of China or even India, just trading partners.
And that is causing serious problems for European industries and hollowing out their industrial base for good. This will be a long term problem for Europe, because the European energy market now belongs to the USA, and energy will no longer be as cheap as piped gas from Russia. Moreover, Russia is unlikely to divert cheap oil and gas sales back to Europe, even if the war ends in Ukraine. Russia, even if it does do so, will not sell energy so cheaply anymore to Europe. That is a given, in order to compensate for the unreliability of the Europeans as a market for energy.
Anonymous
'After Germany and France, Italy is the third largest economy in the Eurozone. Due to COVID, the EU suspended the SGP in May 2020 for an indefinite period. In March 2022, the Italian government called for the suspension to be continued because of the situation in Ukraine. Italy’s government debt to GDP ratio is currently over 155 per cent, well beyond the 60 per cent stipulated in the SGP. The country would default if the EU stopped funding its public debt. But under current circumstances, for how long would this support be forthcoming? Should Italy withdraw permanently from the SGP, the Euro would cease to be a viable currency. Some analysts believe that if Italy defaulted, the future of the EU itself would be at stake.
Enrico Colombatto, a professor of economics, has suggested that Italy would be better off seeking financial rescue from China, in exchange for some strategic assets, in particular access to the port of Trieste. A move towards stronger links with China would imply a shift in Italy’s foreign policy from a continental focus to a Mediterranean one.'
EU sanctions against Russia have increased the cost of gas and pulverised Euro exchange rates, both further depressing living standards in Italy and increasing manufacturing costs. Italy’s gas prices have thus increased by a factor of five since 2021, prices of food and other essential goods have increased between 10-25%, and its economy could be facing approximately a 5 per cent drop in GDP next year.
This is creating a situation where, according to Indian ex-diplomat and commentator M.K. Bhadrakumar: ‘The plain truth is that the European integration project is over and done with’.
Should Italy distance itself from NATO or leave it altogether, particularly in the light of Turkey’s ambivalent stance and the possibility of a Russian victory in Ukraine, it is doubtful that the alliance would be able to survive.
If Italy’s economy and its energy security deteriorate further due to the embargo on Russian energy supplies, or should NATO troops intervene directly in the conflict, it is increasingly likely that the Italian government will consider realigning its international orientation away from a continental strategy centred on the EU and NATO and towards a Mediterranean-focused one that is closer to BRICS. It could even become the third ‘I’ in the BRICS after India and Iran, as one analyst has advocated, creating a tipping point in the global economy.
Link to article:
http://thesaker.is/mussolini-re-dux-could-italys-new-foreign-policy-trigger-a-passage-to-a-multipolar-world-order/