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The likely war between Iran and Saudi Arabia

Giancarlo Elia Valori

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With a view to better understanding what might happen in the future between the Shi’ite Republic of Iran and the   Wahhabi and Sunni stronghold represented by Saudi Arabia, we need to examine a wide range of geoeconomic, political, ideological, strategic and military data and conditions.

Both geopolitical players, namely Iran and Saudi Arabia, may appear irrational to Western observers and decision-makers, but they are used to analyze their strategic equation down to the smallest detail.

Firstly, let us analyze the issue of oil prices and their geopolitical significance.

In principle, the oil price per barrel at around or below 30 US dollars should increase slowly, although Saudi Arabia has oriented and directed the rest of OPEC Sunni countries towards temporary overproduction, so as to further lower prices and damage Iran. And damage Russia, as well – a small simultaneous favor to the American friends which, however, is a very ambiguous token of friendship: at a price below 30 US dollars/barrel, the US shale oil is totally uneconomical and many US shale oil companies (reportedly 40%) are already on the verge of bankruptcy.

But none of OPEC members, let alone the US shale oil industry can go on – for a long period of time – with this pace of plant over-pumping, which reduces the life cycle of wells and leads to huge costs for crude oil storage, in a situation of low economic growth of oil consumers.

The United States have accepted this policy only to damage the Russian Federation, which has an economy still linked to the oil system.

If we look at data and statistics, in recent months Saudi Arabia has reached an extraction record level: 10.24 million barrels/day. And the more the economic crisis worsens, the more Saudi Arabia will be interested in pumping at full blast, so as to have the immediate cash and liquidity it needs.

Even Iraq, Kuwait and, oddly enough, Libya have increased the pace of their daily extractions. Apart from Iraq where oil is in Kurdish areas, they are the new region of Saudi hegemony – the conditioning to oil overproduction to destroy Shi’ite competitors and convince the United States to give up the shale oil extraction.

In geopolitical terms, the Sunni world tries to flood the Western markets with its oil, which will replace the oil of Iran and Shi’ite areas (including Iraq).

In the downward war of the oil barrel, the winner is the one that expels the opponent from the end markets – and this obviously tends to damage more the countries which are most dependent on oil flows.

Nevertheless, with so low oil barrel prices, all OPEC producing countries do not succeed in maintaining internal social peace, their military spending and their hard currency reserves.

With a view to earning an acceptable margin, Nigeria – for example – needs an oil barrel price equal to 122 US dollars. In order to survive, Venezuela – which now has a “Weimar-style” inflation – should price the oil barrel at 117 US dollars, while the Shi’ite Republic of Iran should charge an oil barrel price equal to 130 US dollars in order to cover costs and reach such an average margin of revenues as to allow the market allocation of the new capital in the domestic oil sector. The greater the damage by Sunnis, the greater the Iranian presence in proxy wars against Saudi Arabia and its allies.

Obviously the Western investors will take action in this regard, now that the sanctions against Iran have just been lifted.

Iran, however, will always have a primary oil customer, namely China, while all analysts forecast an increase in Iranian oil extraction this year and next year. If China is and remains the first customer of Shi’ite oil and if, together with Azerbaijan – where oil extraction is less expensive than elsewhere – it is connected with Iran, the damage caused by OPEC to Iran will be limited.

This year the Iranian amount of oil will be 3,133 million barrels but, with a view to taking advantage of the new post-sanction situation, the government plans to reach 550,000 bpd, with a program for increasing its daily production up to 4-7 million bpd within 2020. This means that Iran wants to conquer almost all Saudi Western markets.

Hence a struggle between the two rivals to retain the new markets conquered, by reducing prices, and a struggle to prevail in maintaining the internal balance of power at a time of budgetary constraints. Finally a struggle to prevail in keeping military spending high and, above all, pushing the regional opponent in as many regional proxy wars as possible – wars which exhaust forces, deplete resources and force the players to sell oil at any price just to “make money” and have cash available.

In order to better understand this issue and this situation, Algeria should sell its oil barrel at 130.5 US dollars; Kuwait at 54, Qatar at 60, Saudi Arabia – as we have already seen – at 106 and Russia at 100. Currently no one really earns on oil sales, and everybody is strongly damaged by low prices, including consumers.

Russia is playing its game in Syria also for this reason.

It does not want to cut production because it needs liquidity, but its wells are aging and “getting obsolete” quickly. The extraction of Siberian oil has been decreasing since 2007, while Russia needs capital to play the card of Arctic oil.

Hence the Sunnis need the US production to decline and the oil extracted by Iran and its Shi’ite allies not to reach Western markets at a reasonable cost, in large quantities and competitive with the Sunni oil.

Incidentally, it is precisely the Mesopotamia’s axis, where Syria is present, which is the major corridor of Shi’ite oil and, in many respects, of Russian oil.

Therefore the proxy war between Daesh/Isis and Assad’ Syrian Arab Army, backed by Russian forces, will last until the Saudi oil market stabilizes itself at an acceptable price which, according to the most informed and knowledgeable analysts, should be 80-90 US dollars per barrel.

The problem lies in that fact that – through regional wars – Saudi Arabia wants to avoid the Iranian oil benefitting from the same price increase.

Conversely, Iran wants to “retain” the Alawite Syria to secure the autonomous control of a channel for the transit of oil and gas not touching the Sunni-dominated areas.

The territories currently at war are and will increasingly be used as taps to be turned on or off so as to open or close the transit of their own or other countries’ oil.

Is this, however, the background of a direct confrontation between Sunnis and Shi’ites? Let us analyze the issue carefully.

Now that Iran is coming back onto the global economic scene, Saudi Arabia obviously wants to avoid the Shi’ite expansion into the Greater Middle East.

The 2011 uprising in Bahrain, in which a Shi’ite majority was brutally repressed by the Sunnis in power with the Saudi support, was probably the beginning of the final confrontation between Iran and Saudi Arabia for hegemony over the Middle East region.

The 2014 Shi’ite uprising in the Kingdom was then seen as a practice run for the likely Shi’ite secession in the Saudi universe, where the Al Hasa Shi’ite area was conquered by the Saudi security forces only in 1913, while the Shi’ites around Medina were eliminated later, in 1926.

In the Hejaz region there are still pockets of resistance to the Saudi Wahhabi fundamentalism, while – in the Eastern province of Al Islahiyyah – traditionalist groups, in good relations with the Shi’ites, have long been present and could unite the opposition to the Al Saud’s Kingdom, which has never succeeded in gaining fully hegemony over the Southern part of the Arabian Peninsula. Osama Bin Laden’s hatred for the Royal Family dated back to long time ago and was related to his family’s origin from the Hadhramaut region, at the border with Yemen – a region which has never really submitted to the Al Saud family.

In other words, Iran, but also the Saudi Kingdom, has to manage Shi’ite or Sunni minorities or majorities in a situation in which, throughout the Middle East, States are actually falling apart or, anyway, hardly manage to face the severe threats posed to their survival.

Obviously, in this situation, each of the two major contenders tries to make the other collapse by initially destabilizing the peripheries of both areas of influence and, later, possibly hit the core of the enemy’s power, when the peripheral disintegration process is over.

Nevertheless Saudi Arabia is and will always be a Sunni-majority country, as Iran will always be a nation where the “Party of Ali” is almost completely present.

What about converting the enemy? It is a likely option. In Indonesia the Shi’ite refugees are forced to convert to the Sunni Islam line before having any other economic support, while Iran itself was converted to the “Party of Ali”, namely the Shi’a, only with the Savafid dynasty in 1501 – the same dynasty that rebuilt Iran as an independent State.

Formerly Shi’ism was widespread also in the areas of which the Iranian universe was composed within the Ottoman Empire, such as Dagestan and other Caucasus areas, which are now a stronghold of the Sunni jihad inside the area of Russian influence.

During that Savafid period also Azerbaijan was converted to Shi’ism, as well as most of Iraq, with the Shi’ite reconquest of Baghdad in 1624 which caused the destruction of the Sunni majority of its inhabitants.

Currently the number of fast conversions to Sunnism is remarkable also in Iran itself and it is obvious that the Iranian authorities regard this phenomenon as a deadly danger.

Furthermore the Wahhabi – and hence Sunni – Salafism is used in Iran as a tool for insurgency against the Ayatollahs’ regime.

The expansion of the Hezbollah linked to the Iranian “Revolutionary Guards”, from the Lebanon to Jordan, is a further factor destabilizing the Sunni universe.

In Iran, the Ayatollahs’ statements on the pan-Islamism which must characterize the Iranian policy have decreased for years. On the contrary all Sunnis are increasingly accused of being at the origin of the global jihad which, according to Iranian leaders, is targeted both against the West and against Imam Ali’s followers.

It is a zero-sum game which does not provide for a balance, except for the possible destruction of the areas through which both Sunni and Shi’ite oil transit – and this is the only reason why sometimes the war between the two Mohammedan traditions goes through slack periods.

In other areas, an expansion of conversions to the Shi’ite line is recorded as a tool of political fight against the local authoritarian regimes: in Bahrain, Egypt, Jordan, as well as in Islamic emigration or in the ancient Islamic Mohammedan communities in Canada or in the United States.

Both in the Saudi and Iranian cases, the expansion of conversions to either Islamic line is a direct tool for hegemony.

If this happens in the Middle East, the Shi’ite or Sunni conversions lead directly to the creation of minorities, sooner or later organized for the armed struggle, as currently happens in Yemen or in Syria.

Which is, however, the military potential of either lines of Koran interpretation and tradition?

Saudi Arabia increased its military spending by 14% in 2014, despite budgetary constraints, which is over 10% of its GDP.

If the pace of Saudi Arabia’s rearmament is maintained, and in the absence of new developments on oil markets, the Saudi military spending could lead to a severe economic recession in the Kingdom within 2017.

This is the reason why it is useful for the enemies of the Saudi dynasty to trigger off a small destabilization southward and eastward, as well as preserve the “small wars” in Yemen, in the Syrian Sunni area, as well as in Iraq or in the Pakistani Shi’ite areas in the near future.

In 2015 Iran spent 10 billion US dollars, 60% of which was allocated to the Revolutionary Guards.

Considering the Iranian specific situation and the economic crisis induced by a long regime of sanctions, the growth of military spending will be contained at around 10-15%.

If the tension between Iran and Saudi Arabia turns into an open conflict, this will be the end of the Russian plans of regional hegemony to offset the US withdrawal. This could recreate a strategic relationship between the United States and Saudi Arabia, in view of a new and more difficult Iranian regionalization after the lifting of sanctions.

In this regard, Israel maintains covered and highly confidential – albeit fruitful – relations with both Islamic contenders.

It is worth recalling, however, that neither Islamic country has an interest in giving up the project of “wiping out” the Jewish State and, in a future phase of confrontation, both Islamic countries could create a casus belli for encircling Israel from the North, from Sinai and the PNA Territories, where the Saudi presence is increasingly significant.

Hence we need to rebuild – with the help of the Russian Federation and the United States – a status quo in the Middle East entailing the definition of new and more rational borders, as well as negotiations on regional disarmament and a new Summit – along the lines of the old Madrid Agreements – resuming and following up the policy to make Israel safer, by recognizing a new great power status to Russia and a new NATO’s intervention doctrine in the region.

Advisory Board Co-chair Honoris Causa Professor Giancarlo Elia Valori is an eminent Italian economist and businessman. He holds prestigious academic distinctions and national orders. Mr Valori has lectured on international affairs and economics at the world’s leading universities such as Peking University, the Hebrew University of Jerusalem and the Yeshiva University in New York. He currently chairs "La Centrale Finanziaria Generale Spa", he is also the honorary president of Huawei Italy, economic adviser to the Chinese giant HNA Group and member of the Ayan-Holding Board. In 1992 he was appointed Officier de la Légion d'Honneur de la République Francaise, with this motivation: "A man who can see across borders to understand the world” and in 2002 he received the title of "Honorable" of the Académie des Sciences de l'Institut de France

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Saudi engagement in Iraq: The exception that confirms the rule?

Dr. James M. Dorsey

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Stepped up Saudi efforts to forge close diplomatic, economic and cultural ties to Shia-majority Iraq in a bid to counter significant Iranian influence in the country appear to be paying off. The Saudi initiative demonstrates the kingdom’s ability to engage rather than exclusively pursue a muscular, assertive and confrontational policy towards the Islamic republic and its perceived allies. It raises the question whether it is a one-off or could become a model for Saudi policy elsewhere in the region.

The kingdom’s recent, far more sophisticated approach to Iraq is testimony to the fact that its multi-billion dollar, decades-long support for Sunni Muslim ultra-conservatism that at times involved funding of both violent and non-violent militants had failed in Iraq. It constitutes recognition that Saudi Arabia’s absence effectively gave Iran a free reign.

Saudi Crown Prince Mohammed bin Salman’s Iraqi charm offensive amounts to a far more concerted and successful effort than attempts more than a decade ago by then Saudi King Abdullah to reach out to Iraqi Shiite leaders, including firebrand Muqtada al-Sadr and involving the organization of a meeting in Mecca between Sunni and Shia Iraqi religious leaders. King Abdullah’s efforts did not at the time involve a crackdown on funding by Saudi sources of a devastating Sunni Muslim insurgency.

King Abdullah’s initiative notwithstanding, Saudi policy towards Iraq for more than a decade since Iraq’s Shiite majority emerged from the shadow of Saddam Hussein’s minority Sunni Muslim rule as a result of the 2003 US invasion was one of non-engagement, sectarianism, and support of the country’s Sunni minority.

It took the kingdom 11 years to open its first embassy in post-Saddam Iraq, the kingdom’s first diplomatic presence in the country since it broke off diplomatic relations in 1990 because of Saddam’s invasion of Kuwait. Even then, relations got off to a rocky start with Iraq demanding the replacement of the kingdom’s first ambassador, Thamer al-Sabhan, after he publicly criticised Iranian involvement in Iraqi affairs and the alleged persecution of Iraqi Sunni Muslims.

The emergence in 2014 of Iraqi prime minister Haider al-Abadi, who succeeded Nuri al-Maliki, seen by the Saudis as an Iranian pawn, coupled with the rise of Prince Mohammed and the Saudi charm offensive in the wake of the defeat of the Islamic state has produced a remarkable turnaround that holds out the prospect of the kingdom becoming an influential player in the reconstruction of war-ravaged Iraq.

Beyond the opening of the embassy, Saudi Arabia is slated to open a consulate in Basra as well as in Najaf, widely seen as Shia Islam’s third most holy city that rivals Iran’s Qom as a centre of Shiite learning. Unconfirmed reports suggest that Prince Mohammed may visit Najaf after Iraqi elections scheduled for May 12.

The two countries have reopened their Arar Border Crossing that was closed for 27 years and restored commercial air traffic for the first time in more than a quarter of a century. More than 60 Saudi companies participated earlier this year in the Baghdad International Fair.

A Saudi Arabia-Iraq Coordination Council, inaugurated last year aims to strengthen security ties as well as economic and cultural relations envisions student and cultural exchanges and Saudi investment in oil and gas, trade, transport, education, light industry, and agriculture. Saudi Arabia pledged $1.5 billion for Iraqi reconstruction at a donors’ conference in Kuwait in February.

Saudi Arabia garnered substantial brownie points in February by playing its first soccer match in Iraq in almost three decades, boosting Iraqi efforts to persuade world soccer body FIFA to lift its ban on Iraqi hosting of international matches. The kingdom subsequently promised to build a 100,000-seat football stadium in Baghdad.

In shifting gears in Iraq, Prince Mohammed appears to have broken with decades of Saudi efforts to primarily confront Iran in proxy and covert wars. It remains, however, unclear to what degree Prince Mohammed’s policy shift in Iraq is an indication of a broader move away from sectarianism and support for ultra-conservative militants and towards engagement.

The record is mixed. Saudi Shiite activists see little positive change and, if anything, assert that repression in their heartland in the kingdom’s Eastern Province has increased since Prince Mohammed’s rise.

“Bin Salman is already acting like he’s the king of Saudi Arabia. He keeps telling the West that he will reform Islam, but he keeps raiding the homes of Shia and stripping us of any political rights,” one activist said.

Nonetheless, a Saudi-funded Bangladeshi plan to build moderate mosques to counter militancy, the kingdom’s relinquishing of control of the Grand Mosque in Brussels, and the newly found propagation of tolerance and inter-faith dialogue by the government-controlled World Muslim League that for decades funded ultra-conservatism globally would suggest that Saudi money may be invested in attempting to curb the impact of the kingdom’s decades-long support of ultra-conservatism.

There are, however, also indications that Prince Mohammed is not averse to funding militants when it suits his geopolitical purpose. Saudi funds have flowed since his rise in 2015 to militant religious seminaries in the Pakistani province of Balochistan at a time that the kingdom was drafting plans to destabilize Iran by exploiting grievances and stirring unrest among Iran’s ethnic minorities, including the Baloch. Those plans have not left the drawing board and may never do so, but ultra-conservative militants figure prominently in them.

Nevertheless, the magnitude of the shifting of gears in Saudi policy towards Iraq as well as other steps that Prince Mohammed has taken to curb, redirect, and reduce, if not halt, Saudi support for militant ultra-conservatism is highlighted by the conclusions of a 2002 study of funding of political violence conducted by the New York-based Council of Foreign Relations.

Coming in the wake of the 9/11 attacks when Saudi funding and counter-terrorism cooperation with the United States was put under the magnifying glass, the study suggested that the kingdom’s global support for ultra-conservatism was woven into its fabric.

“It may well be the case that if Saudi Arabia…were to move quickly to share sensitive financial information with the United States, regulate or close down Islamic banks, incarcerate prominent Saudi citizens or surrender them to international authorities, audit Islamic charities, and investigate the hawala system—just a few of the steps that nation would have to take—it would be putting its current system of governance at significant political risk,” the study warned.

In many ways, Saudi support for the Iraqi insurgency was a textbook example of the decades-long, $100 billion Saudi campaign to confront Iran globally by promoting ultra-conservatism and sectarianism and in a minority of countries – Afghanistan, Pakistan, Bosnia Herzegovina, Iraq and Syria – funding violence.

Nawaf Obaid, a Saudi scholar with close ties to the government, said Saudi options at the height of the Sunni Muslim insurgency included supplying the insurgents with the same type of funding, arms and logistical support that Iran was giving to Shiite armed groups. Another option, he said, was to create new Sunni brigades to combat the Iranian-backed militias.

“Saudi engagement in Iraq carries great risks — it could spark a regional war. So be it: The consequences of inaction are far worse,” Mr. Obaid said in 2006.

US and Iraqi officials at the time suspected Saudi Arabia of covertly supporting sectarian Sunni jihadist insurgents opposed to the US military presence in the country and the rise of a Shia-dominated government. While there was no evidence of government assistance, the lines between the actions of private citizens and authorities were and remain often blurred in the kingdom.

An Iraq Study Group report in 2006 at the height of the Sunni Muslim insurgency concluded that “funding for the Sunni insurgency comes from private individuals within Saudi Arabia and other Gulf states.”

Without identifying them, Iraqi officials asserted that funds were also flowing from Saudi charities that often operated as governmental non-government organizations. They said some of the funds had been channelled through Saudi clerics who decided who the beneficiary would be.

Truck drivers at the time described transporting boxes of cash from Saudi Arabia that were destined for insurgents. The transports frequently coincided with pilgrimages to Mecca.

“They sent boxes full of dollars and asked me to deliver them to certain addresses in Iraq. I know it is being sent to the resistance, and if I don’t take it with me, they will kill me,” one driver said. He said he was instructed to hide the money from authorities at the Iraqi border.

One official said $25 million was sent by a Saudi religious scholar to a senior Iraqi Sunni cleric who bought Russian Strela shoulder-fired anti-aircraft missiles on the black market in Romania.

Baath Party loyalists claimed at the time that a US Air Force F-16 jet that crashed while flying in support of American soldiers fighting insurgents in Anbar province had been downed by a Strela. The US military denied the claim.

“We have stockpiles of Strelas and we are going to surprise them (the Americans),” a spokesman for the party, said.

The Iraqi cleric involved in the purchase of the missiles was suspected to be Sheikh Harith Sulaiman al-Dhari, a tribal chieftain dubbed “the Spiritual Leader of the Iraqi Resistance” with a lineage of opposition to foreign rule dating back to the killing in 1920 of a British colonel by his father and grandfather. Iraqi authorities issued an arrest warrant for Mr. Al-Dhari in late 2006, who has since passed away, on charges of inciting sectarian violence after he visited Saudi Arabia.

Saudi Arabia’s approach to Iraq has come a long way since the days of the insurgency. The question is whether the kingdom will draw a lesson from its success in the way it manages its regional rivalry with Iran. So far, there is little indication that Iraq is more than the exception that confirms the rule.

Said political analyst Hussein Ibish in a just published study of Saudi-Iraqi relations: “Iraq is the only major regional battleground at present in which Saudi Arabia is relying almost entirely on carrots rather than sticks. Yet, arguably, more has been accomplished by Riyadh over the past year in Iraq than, for example, in either Yemen or Lebanon… Saudi Arabia’s outreach in Iraq, particularly in 2017, belies the stereotype of a rash, reckless, and uncontrolled new major regional actor, showing instead that Saudi Arabia can be deft and delicate when it wants to. That’s an important lesson for the rest of the world, but also for Saudi Arabia itself, to ponder.”

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Syria’s future

Giancarlo Elia Valori

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Many sources think that the most significant clashes in Syria are likely to end late this year.

Probably the small clashes between the various ethnic groups and hence among their external points of reference  will not end yet. The bulk of armed actions, however, will certainly finish since now the areas of influence are stabilized.

The first fact that stands out is that, despite everything, Bashar al-Assad’s forces have won.

All the international actors operating on the ground -be they friends or foes – have no difficulty in recognizing it.

Certainly neither Assad nor Russia alone have the strength to rebuild the country, but Western countries – especially those that have participated in the fight against Assad – and the other less involved countries plan to participate in the reconstruction process, with a view to influencing Syria, although peacefully this time.

The military start of Assad’s victory was the Northwest campaign of the Syrian Arab Forces from October 2017 to February 2018.

Operations against what the United States calls “rebels” -namely, in that case, Isis and Tahrir al-Sham – focused at that time on the intersection between the provinces of Hama, Idlib and Aleppo.

It is extremely difficult for a regular army to conduct operations against guerrilla organizations, but Assad’ Syrian Arab Army has succeeded to do so.

The subsequent destruction of Isis-Daesh pockets south of Damascus, in Eastern Ghouta and Idlib was decisive to later establish stable and undisputed hegemony of the Syrian forces throughout the Syrian territory – and above all in traditionally Sunni areas.

There is also the issue of Al-Rastan, the ancient town of Arethusa on the Orontes river, located on the side of the bridge uniting Hama and Homs. From the beginning of hostilities, it has been a basis for the jihadism of the so-called “rebels”.

Another military problem is the opening of the bridge and the commercial passage on the border between Syria and the Lebanon, namely Al-Nasib, which is essential for Syria’s trade with Jordan and the Gulf countries.

Conquering the Al-Nasib pass means conquering also the road between Deraa and Damascus, as well as the Syrian side of the Djebel Druze.

Between the Deraa-Damascus road and the Golan, the situation is still largely frozen thanks to the agreement reached by the Russian Federation with the United States and Israel, in which the former guaranteed to the Jewish State that Iran and Hezb’ollah would not get close – up to the limit of 25 miles (40 kilometers) – to the old ceasefire line established in 1973.

Moreover, even though the representatives of the Democratic Federation of Northern Syria, commonly known as Rojava, were never accepted in the negotiations between the parties in conflict, the Kurds – already abandoned by the United States – know that the territories they freed from Isis-Daesh will be returned precisely to the Sunni Arabs, but in exchange for the autonomy of the traditionally Kurdish districts of Afrin, Kobane and Qamishli.

Furthermore, since the Sochi Conference on the Congress of Syrian National Dialogue held at the end of January 2018, Russia has convinced the 1,500 participants from the various parts of Syria to accept the fact that every ethnic and religious area and every group of Syrian society must be respected and protected by the new Constitution. A break with the old Ba’athist and centralist tradition of the Syrian regime, but without reaching the Lebanese paradox, i.e. permanent civil war.

The political process envisaged by Russia is a process in which the Westerners still present in the Syrian territory had no say in the matter.

Nor will they have it in the future.

The going will be really tough when the time of reconstruction comes.

Reconstruction is the most important future lever for external influence on the long-suffering Syrian Arab Republic, where conflict has been going on for seven years.

The World Bank estimates the cost of reconstruction at  250 billion dollars.

Other less optimistic, but more realistic estimates point to a cost for Syrian national reconstruction up to 400 and even 600 billion US dollars.

Syria does not even dream of having all these capital resources, which even the Russian Federation cannot deploy on its own.

Six years after the outbreak of the conflict, in 2011, the great diaspora of Syrian businessmen met in Germany in late February 2017.

Hence the creation of the Syrian International Business Association (SIBA).

With specific reference to the great Syrian reconstruction, the Russian, Iranian and Chinese governments are already active and have already secured the largest contracts in the oil and gas, minerals, telecommunications, real estate and electricity sectors.

As far as we know, there is no similar investment by Western countries, which will still leave the economic power they planned to acquire in the hands of other countries, after having caused the ill-advised but failed “Arab Spring” in Syria.

Also the BRICS and countries such as the Lebanon, Armenia, Belarus and Serbia invest in Syria, or at least in the regions where peace has been restored and the “Caliphate” does no longer exist.

Usually collaboration takes place through the purchase of pre-existing companies in Syria – something which now  happens every day- or through bilateral collaborations with Syrian companies.

With specific reference to regulations, Syria is continuously changing the rules regarding the structure of operating companies, work permits, imports and currency  transfers.

State hegemony, in the old Ba’athist tradition – the old Syrian (but also Egyptian) national Socialism which, however, adapts itself to the structure of current markets.

It is estimated that Syrian companies can already provide 50% of the 300 billion US dollars estimated by the World Bank as cost for Syria’s reconstruction.

An estimate that many still think to be rather optimistic.

Nevertheless, it will take at least thirty years to bring Syrian back to the conditions in which it was before  hostilities began.

With rare effrontery and temerity, the United States and the European Union are already putting pressure on the Syrian government to be granted economic and political concessions, but Assad has no intention of giving room to its old enemies.

In any case, the Syrian reconstruction will need at least 30 million tons of goods per year from sea lines, while the Latakia and Tartus airports can – at most – allow loads of 15 million tons/year.

From this viewpoint, the Lebanon is organizing a Special Economic Zone around the port of Tripoli, already adapted by China to the international transport of vast flows of goods in cargoes and containers.

Obviously the companies going to work in Syria must also take the physical safety of their workers and their offices into account, as well as the need to have constant, careful and close relations with local authorities.

Furthermore, the US sanction regime also favours President Trump’s plan to topple the Syrian regime through economic pressure, which would make also the work of European companies in Syria very difficult or even impossible.

However what is the need for destroying Syria economically? For pure sadism? The current US foreign policy is not unpredictable, it is sometimes crazy.

The US sanctions, however, concern the new investment of US citizens in Syria; the re-exporting or exporting of goods and services to Syria; the importing of Syrian oil or gas into the United States;the transactions of Syrian goods and services carried out by non-US citizens also involving a US citizen.

Other sanctions will soon be imposed by President Trump on the Russian Federation due to its “tolerance” for the increasingly alleged factories of nerve gas and materials.

Obviously the fact that the Syrian regime is the winner of military confrontation, along with Russia and Iran, is now a certainty.

Nevertheless, loyalist Syrians are still badly supplied, both at military and civilian levels, and they are severely dependent on external aid, which is decisive also for their survival and for preserving their strategic and military superiority.

Without Russia and Iran, Bashar al-Assad would have collapsed within two months since the beginning of the  “Syrian spring”, when the Muslim Brotherhood organized by the United States was demonstrating in the streets violently.

Hence, in the current stability of the Syrian regime, nothing must be taken for granted: the end or decrease of Russian support and the fast return back home of the Iranian Pasdaran and Afghan Shiites organized by Iran would bring Assad’s military and civilian power back to the 2011 level.

Nevertheless Syria does no longer exist as a Soviet-style centralized State.

In Assad-led Syria the centralized economy does no longer exist, for the excellent reason that four primary military powers operate in the country, namely Russia, Iran, Turkey and the United States.

They collectively control all the Syrian resources on which the Syrian national government no longer has any power.

As can be easily imagined, the United States holds oil reserves by means of their occupation – through the Kurds – of Raqqa and the Northeastern region.

Turkey holds a nominally Syrian region of approximately 2,400 square kilometers between Aleppo and Idlib, in the area of the “Euphrates Shield” operations.

Russia and Iran already hold the majority of reconstruction contracts, while they will acquire most of the public sector to repay the military expenses they incurred to keep Bashar al-Assad’s regime in power.

Hence if no agreements are reached between Russia and the United States, each area of influence will have different reconstruction and development plans.

As early as the 1945-1958 period, Syria had been the  target of expansionist designs that were anyway bound to fragment its territory.

The two Hashemite Kingdoms of Iraq and Jordan thought they could together take control of the whole Syrian State,  while their eternal rivals, namely the Saudi-Egyptian axis, thwarted their designs.

Great Britain and France, still powerful in Syria, operated through their Arab points of reference.

CIA collaborated with the Syrian dictator, Husni Zaim.

Zaim was of Kurdish origin and had taken power in 1949. He had organized a regime not disliked by the Ba’ath Party – a Westernizing and vaguely “Socialist” dictatorship.

After Husni Zaim’s fall, Syria was divided as usual: the collective leadership was held by the Sunni urban elite who had fought harshly against France.

Nevertheless, the unity of the nation – which was decisive for the Sunnis themselves – found it hard to bring together the Alawites, the Druze, the Shiites and the thousands of  religious and ethnic factions that characterized Syria at that time as in current times.

The nationalist union between Syria and Egypt created in 1958 and soon undermined by Syria’s defection in 1961, experienced its Ba’athist-nationalist coup in 1963, with a military take-over.

Hafez El Assad – the father of the current Syrian leader, who ruled Syria from 1963 to 2000, the year of his death – immediately emerged among the military.

Long-term instability, medium-term political stability. That is Syria, from the end of the French domination to current times.

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How the Guardian newspaper fulfills George Orwell’s prediction of ‘Newspeak’

Eric Zuesse

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On Sunday April 15th, Britain’s Guardian bannered “OPCW inspectors set to investigate site of Douma chemical attack” and pretended that there was no question that a chemical attack in Douma Syria on April 7th had actually occurred, and the article then went further along that same propaganda-line, to accuse Syria’s Government of having perpetrated it. This ‘news’ story opened [and clarificatory comments from me will added in brackets]:

UN chemical weapons investigators were set on Sunday to begin examining the scene of a chemical attack in the Syrian city of Douma, which had prompted the joint US, French and British strikes against military installations and chemical weapons facilities near the capital, Damascus.

The arrival of the delegation from the Organisation for the Prohibition of Chemical Weapons (OPCW) came as the Syrian military announced that it had “purified” [no source provided, but this — from 7 March 2018 — is the only source that existed prior to the April 14th missiles-invasion of Syria, and its meaning is very different: the region of eastern Ghouta, of which Douma is a part, after a two-month campaign that killed nearly 2,000 civilians [no source provided as regards either the number, or that all of them were ‘civilians’ and that none of them were jihadists or “terrorists”], following years of siege.

The propaganda-article continued directly: “Units of our brave armed forces, and auxiliary and allied forces, completed the purification of eastern Ghouta, including all its towns and villages, of armed terrorist organisations,” the general command statement said.

No source was provided for that, but this sentence is a sly mind-manipulation, because here is what the Syrian Government’s General Command had actually said: “Statement of the Army General Command declaring Eastern Ghouta clear of terrorism” as headlined by the Syrian Government itself.

In other words: the Guardian’s ‘journalist’ had substituted the word “clear” by the word “purify” and did this after having already asserted but not documented, that the Government had just completed “a two-month campaign that killed nearly 2,000 civilians.” When the Syrian Government announces that an area has been “cleared of terrorists (or of terrorism),” the U.S.-allied propagandist uses the word “purify,” such as “purified the region of eastern Ghouta” or “the purification of eastern Ghouta, including all its towns and villages, of armed terrorist organisations.” But by the time that the reader gets there to “purification … of armed terrorist organisations,” the reader has already been doctrinated to believe that Syria’s Government is trying to “purify” land, or perpetrate some type of ethnic-cleansing. That’s professional propaganda-writing; it is not professional journalism.

Later, the article asserts that, “The OPCW mission will arrive in Douma eight days after the chemical attack, and days after the area fell to the control of Russian military and Syrian government forces. That delay, along with the possibility of the tampering of evidence by the forces accused of perpetrating the attack, raises doubts about what the OPCW’s inspectors might be able to discover.” However, a fierce debate is being waged over whether this was not any real “chemical attack” but instead a staged event by the jihadists in order to draw Trump back into invading Syria. In other words: any journalistic reference yet, at this time, to the event as “the chemical attack” instead of as “the alleged chemical attack” is garbage, just as, prior to the guilty-verdict in a murder trial, no journalistic reference may legitimately be made to the defendant as “the murderer,” instead of as “the defendant.” That is lynch-mob ‘journalism’, which Joseph Goebbels championed.

The Joseph-Goebbels-following ‘journalist’ has thus opened by implying that the Russia-allied Syrian Government is trying to crush a democratic revolution, instead of the truth, that the U.S.-allied Governments are trying to overthrow and replace the Russia-allied Syrian Government. It’s a big difference, between the lie, and the truth.

Another story in the April 15th Guardian was “Pressure grows on Russia to stop protecting Assad as US, UK and France press for inquiry into chemical weapons stockpiles” and this one pretended that the issue is for “Russia to stop protecting Assad,” who is the democratically elected and popular President of Syria, and not to stop the invasion of Syria since 2011 by U.S. and Saudi backed foreign jihadists to overthrow him. Furthermore, as regards “press for inquiry into chemical weapons stockpiles,” the real and urgent issue right now is to allow the Organization for the Prevention of Chemical Weapons (OPCW) into Douma to hold an independent and authoritative investigation into the evidence there. Russia pressed for it at the U.N. Security Council and the U.S. and its allies blocked it there. But the OPCW went anyway — even after the U.S.-allied invasion on April 14th — and this courageous resistance by them against the U.S. dictatorship can only be considered heroic. Now that they are there, the remaining jihadists in Douma are firing shots at them to drive them away.

That type of ‘news’-reporting is virtually universal in The West, among the U.S. and its allied governments, which refer to themselves as ‘democracies’ and refer to any Government that they wish to overthrow and replace by their own selected dictator, as ‘dictatorships’, such as these regimes had referred to Iraq in 2003, Libya in 2011, Syria forever, and Ukraine in 2014. It’s Newspeak.

first published at strategic-culture.org

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