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US alliance with Gulf Decays as UAE Strengthens Ties with China and Russia

Marcus Salles

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The United States has stayed as staunched to its allies as it has remained to its foes. However, where the rivalry has been equally retaliated, some of its partners chose to maintain strategic relations. It won’t be a misconjecture to say that one of the most influential nations in the Middle East, the United Arab Emirates (UAE) has been that ally.

The Emirati sands have recently blown in a different direction altogether, as it began purchasing Chinese weapons, creating bloodbath in the MENA region. Besides, some secret meetings at Seychelles — involving Trump administration, Abu Dhabi Crown Prince Mohammed bin Zayed and Russians — also influenced the US electoral process. The meddling not just hurt the US’ national interests, but is also believed to potentially change the American perception about Democrats in future elections.

Before the partnership between these three nations, the US was the sole influential player. Going back to the early 1970s, the US-UAE relations grew into one of the greenest trees in the global garden of alliances. Besides, the major benefits have fallen into the laps of the UAE, as its de facto ruler MbZ shrewdly expanded his empire of influence by following the American lead.

The formal diplomatic relation between the two countries was established in 1972, and the bilateral cooperation has since turned stronger. Both have been partners in defence, non-proliferation, trade and law enforcement.

With vast oil and gas reserves, the UAE became the single largest exporter to the US in the MENA region. Washington, on its part, provided protection from external aggression, especially Iran, with which both share a common rivalry.

Prince MbZ used American expertise for its military training and former spies to set up its intelligence service. From 2007-2010, Prince Mohammed spent huge amounts on acquiring weapons — 80 F-16 fighters, 62 French Mirage jets and 30 Apache combat helicopters. This was more than those received by other five Gulf monarchies put together.

In the later years, the US began deploying various aircrafts at Al Dhafra Air Base in Abu Dhabi. In 2014, the United States began supplying more fighter jets as well as bombs to assist the UAE’s mission in Iraq and Syria. Even today, America is backing the Emirates’ intervention in both Yemen and Libya. It still provides weapons, intelligence and other support to the Saudi-UAE led coalition, causing the world’s worst humanitarian crisis.

In 2018 fiscal year, the US supplied more than half of its arms to the Middle East. Out of Pentagon’s total foreign sales of $55 billion, more than $30 billion worth of weapons and other military products were sold to Saudi and the UAE, in particular.

Moreover, a number of US Officials have provided such militarily or intelligence assistance to the UAE in the past. However, many have also crossed moral and legal boundaries in order to aid the Gulf monarchy. A fine example would be a CIA veteran and former US assistant secretary of defense, Mary Beth Long. In 2017, the HuffPost revealed Long’s questionable links to the UAE ambassador to US, Yousef Al Otaiba. This was revealed through leaked emails.

The US official, Mary Beth Long, is also known for having connections with general Khalifa Haftar, during Mohammed Gaddafi’s era. At the time, she was heading a group of US companies lobbying a sceptical Congress to sell weapons to Libya.

In return, the Gulf nation has not just supplied oil to Washington, but also became the first Middle Eastern country to assist the US-led mission in Afghanistan by sending its troops. In 2003, Mohammed bin Zayed willingly deployed 1,200 soldiers belonging to the Presidential Guard forces. The Emirati troops reportedly remained in Afghanistan till 2014. Moreover, the UAE also made its military facilities available for America and allied use, after the September 2001 attacks by al-Qaeda in the US.

Along the same lines as US, even the Gulf nation opted unethical practices of supporting its only friend in the White House, Donald Trump, during the 2016 presidential elections. Apart from their role in Russian meddling, Otaiba and Emirati businessman Rashid al-Malik allegedly intervened in Trump’s May 2016 speech on energy policy. The links were revealed through the emails they exchanged with Thomas J Barrack Jr, the top campaign fund-raiser and close friend of Trump.

However, the alliance tree is now on the verge of decaying, as the UAE’s interests are now spreading in varied directions. US is no longer its sole focus. The UAE has remained clear in terms of its needs, maintaining strategic ties with the US and its greatest foes— China and Russia.

China Injures US in Silence

China has been standing up to President Trump and America in multiple areas, especially in the trade sphere. While Trump continues to throw sanctions at the Asian nation, China’s confidence remains unwavering. China has been working on attaining greater support from the rest of the world. It has increasingly been successful through its Belt and Road Initiative (BRI). Along with African, European and Asian countries and the US rival Russia, the UAE is also set to play a big role in China’s BRI.

On April 27, 2019, the Dubai ruler, Mohammed bin Rashid Al Maktoum, concluded their partnership in the BRI. He announced that the deal would potentially boost existing $53 billion bilateral trade to $70 billion in 2020.

China has not just retaliated in the trade war, but has also strategically established a strong foothold in the UAE. Dubai’s tribute to the Chinese New Year from the past two years, celebrating it with a nine-days ‘Light Up’ show in Burj Khalifa, is a testimony to their growing camaraderie.

In December 2015, Crown Prince Mohammed bin Zayed visited China, which came as a major leap in relations of the two countries. He signed a memorandum of understanding (MoU) with the Chinese President, Xi Jinping, to launch a significant investment cooperation fund worth $10 billion.

The relations further strengthened when Xi visited the UAE in July 2018, and the diplomatic relations turned from a mere bilateral cooperation to a comprehensive strategic partnership. During the three-days visit, the Chinese leader also met the Dubai ruler, along with Abu Dhabi’s MbZ. Besides, the UAE President Khalifa bin Zayed Al Nahyan awarded Xi the Order of Zayed— the Emirates’ highest civil decoration.

The two nations announced 13 agreements and MoUs, which also included the approval for first Chinese state-owned financial services firm to set up in Abu Dhabi Global Market. Besides, the China National Petroleum Corporation and the Abu Dhabi National Oil Company also agreed to explore joint business opportunities.

This year, Crown Prince MbZ visited Beijing for the first time since 2015, along with a considerable delegation of government and businesses. The three-day visit from July 21-23 advanced the relations between the two nations in more practical ways.

Leaders of the two nations announced to work towards increasing bilateral trade volume to $200 billion by 2030. Besides, a total of 16 agreements and Memorandums of Understanding (MoUs) were signed, aiming to strengthen cooperation across several sectors.

The visit also induced a major change in Arab culture, where the UAE became first Gulf nation to include Chinese language in their national education system.

China has also been facilitating the UAE’s needs better than America, when it comes to the Emirates’ ongoing missions in different countries of the MENA region. Top security partner to the UAE, the States’ Conventional Arms Transfer (CAT) policy restricts the Pentagon from supplying armed drone technology to its Arab ally. On the other hand, China has displayed its weaponized drones in the market under its “no questions asked” policy.

Statistics reveal that the UAE’s defense spending grew by 10.8 per cent in a year— from $19.3 billions in 2017 to $21.4 billions in 2018. The UAE first purchased a Chinese drone, Wing Loong I, in 2016. More than a year later, in early 2018, the purchase of an upgraded and much deadlier version, Wing Loong II, was reported.

There were multiple reasons for the UAE to opt Chinese drones, particularly since America, under the Obama administration, denied to sell their armed UAVs to the Arab ally. Besides, Chinese weapons were easily available at much cheaper prices. The estimated cost of Wing Loong is about $1 million, while the US-made counterpart is sold at about $5 million.

In July 2017, The Wall Street Journal reported that the Chinese strikes and surveillance drones were being used by both UAE and Saudi Arabia in the Yemen war. A former Pentagon official and president of the US-UAE Business Council, Danny Sebright, stated that the Emiratis bought Chinese drones and equipped them with South African laser targeting systems. They have used them to guide missiles from planes for strikes in Yemen, he said.

According to the satellite images, the UAE has also used these drones to support Khalifa Haftar in Libya, who is in a battle of control against the United Nations-backed government in Tripoli.

While the US-UAE weapon trade cords were gradually rifting, the American President recently decided to win back the confidence of the Middle Eastern allies. On May 23, the Trump administration announced to sell $8.1 billion worth of munitions, aircraft parts, and other supplies to Saudi Arabia and UAE, without congressional approval. However, on July 17, the House joined the Senate and voted to block the arms sales.

UAE has also been engaging with a controversial military contractor, Erik Prince, the bother of US Secretary of Education, Betsy DaVos. He is allegedly the common link between China and the UAE. Prince is accused of training the militia for the ethnic cleansing of the Uighur Muslims in China and training the Emirati troops for showdown against the Houthis in Yemen.

China has also defeated the US in providing artificial intelligence technologies to the UAE. While such a technology faces escalated scrutiny in the States, China’s Hikvision and Huawei have been marketing biometric surveillance systems in the Gulf nation, which has made heavy investments in surveillance technology and has been using cellphone hacking software to spy journalists and dissidents.

Moreover, several Chinese firms have also been making large investments in Khalifa Industrial Zone Abu Dhabi (KIZAD), over the last two years. Earlier this month, the East Hope Group of China also proposed an investment of $10 million, which would be implemented in three stages over 15 years.

The Rising Russia-UAE Axis

Russia has been another significant rival of the United States and an emerging major ally of the UAE. The Russian President, Vladimir Putin and Crown Prince Mohammed bin Zayed, often have telephone conversations. In June this year, MbZ received a phone call from Putin. The two leaders reportedly discussed their relationship and joint co-ordination on international issues of mutual interest.

In June 2018, the Abu Dhabi ruler visited Moscow with a delegation for two days. Apart from discussing cooperation, the two nations also signed a declaration of strategic partnership in all domains, including political, economic, cultural and security.

MbZ had stated that it was crucial to “maintain a continuous coordination with Russia on regional issue to ensure security and stability”.

The Russian-UAE links were also highlighted in 2016, during a secret meeting in Seychelles that centered around influencing the US electoral process. Special counsel Robert Mueller, in his report, has mentioned the connivance between the Trump administration, MbZ, Russia and Erik Prince aimed at ensuring victory for Donald Trump.

Russia, too, has been supplying weapons to the UAE, indirectly backing the Emirates’ interests in war-torn nations like Yemen and Libya.

Russia is one of the three global producers of advanced air superiority fighters, along with China and the US, and the UAE was significantly interested in acquiring high-end fighter jets. Among the three producers, Washington has not produced a high-end fourth-generation heavy fighter, restricted the export of its fourth generation platform, the F-15C, to three clients, and has imposed a complete ban on the export of its fifth-generation platform, the F-22.

In the past, the UAE has constantly raised requests for F-35 aircrafts to the US, which have been rebuffed since 2011. China, on the other hand, remained unwilling to sell off its own air superiority platforms. Because of that, Russia became a monopoly in fourth-generation air superiority fighters, such as the Su-30 and Su-35.

In February 2017, Russia signed an agreement to sell multiple Sukhoi Su-35 Flanker-E fighter jets to the UAE, and help it develop a fifth generation platform for its Air Force. At the time, the Gulf nation also awarded a $708 million contract for anti-armor missiles to the Russian agency Rosoboron export, during the IDEX 2017.

The growing partnership between the UAE and Russia were believed to be the Emirates’ way of gaining US concessions on F-35s and other possible transactions, which according to the Congressional Research Service could have become possible due to the US concerns regarding Russia-UAE arms dealings.

The concerns slightly proved to be true on April 15 this year, when the US deployed the F-35A Lightning II stealth fighters to Al Dhafra Air Base in the UAE. The aircraft costs about $90 million and could not be redacted by radar. Besides, on April 30, the Emirates also conducted airstrikes on a Daesh tunnel network in Iraq, using the US fighter jets for the first time.

The relationship between Russia and the UAE is enhancing at a greater pace. The trade between the two nations increased by nearly 35 per cent in two years – from around $161 million in 2015 to $217 in 2017.

Earlier this month, the Russian Energy Minister, Alexander Novak, met the UAE’s minister of state, Sultan Ahmed Al Jaber, running the Abu Dhabi National Oil Company (ADNOC), to discuss cooperation in LNG projects in Moscow.

While the Trump administration is indulged in a conflict with China and Russia, these powerful global nations have been finding ways to establish strong relations with the Gulf. Several media reports have stated that it is crucial for the Pentagon to develop weapons, since both its rivals are developing hypersonic capabilities that can potentially defeat conventional anti-missile defense systems.

However, weaponry is not the sole area that is slipping from the hands of the US. Trade, energy, investments, diplomatic as well as cooperative relations, have also enhanced between the Gulf monarchy and the US foes – Russia and China. 

The UAE has been defying America by establishing stronger relations with both China and Russia. While the expanding distance with the allies is often blamed on the American policies, it could also be associated to the UAE’s nature of perceiving ties, which apparently strengthens strategic partnerships with countries facilitating its interests without a hitch.

A political analyst from Portsmouth, UK, with a specialization in politics from Middle East diaspora. A political science doctorate in modern liberalism and conservatism, emphasizing on the human rights and political connect constrained to a regional situation. Presently working as an activist and syndicated columnist.

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Middle East

“Today Saudi Arabia finally lost the war on Yemen.”

Eric Zuesse

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On August 17th, an anonymous German intelligence analyst who has perhaps the world’s best track-record of publicly identifying and announcing historical turning-points, and who is therefore also a great investigative journalist regarding international relations (especially military matters, which are his specialty) headlined at his “Moon of Alabama” blog, “Long Range Attack On Saudi Oil Field Ends War On Yemen”, and he opened:

Today Saudi Arabia finally lost the war on Yemen. It has no defenses against new weapons the Houthis in Yemen acquired. These weapons threaten the Saudis economic lifelines. This today was the decisive attack:

Drones launched by Yemen’s Houthi rebels attacked a massive oil and gas field deep inside Saudi Arabia’s sprawling desert on Saturday, causing what the kingdom described as a “limited fire” in the second such recent attack on its crucial energy industry.  …

The Saudi acknowledgement of the attack came hours after Yahia Sarie, a military spokesman for the Houthis, issued a video statement claiming the rebels launched 10 bomb-laden drones targeting the field in their “biggest-ever” operation. He threatened more attacks would be coming. 

New drones and missiles displayed in July 2019 by Yemen’s Houthi-allied armed forces

Today’s attack is a check-mate move against the Saudis. Shaybah is some 1,200 kilometers (750 miles) from Houthi-controlled territory. There are many more important economic targets within that range.  …

The attack conclusively demonstrates that the most important assets of the Saudis are now under threat. This economic threat comes on top of a seven percent budget deficit the IMF predicts for Saudi Arabia. Further Saudi bombing against the Houthi will now have very significant additional cost that might even endanger the viability of the Saudi state. The Houthi have clown prince Mohammad bin Salman by the balls and can squeeze those at will.

He went on to say that the drones aren’t from Iran but are copies from Iran’s, “assembled in Yemen with the help of Hizbullah experts from Lebanon.”

He has been predicting for a long time that this war couldn’t be won by Crown Prince Mohammed bin Salman al-Saud (MbS). In the present report, he says:

The war on Yemen that MbS started in March 2015 long proved to be unwinnable. Now it is definitely lost. Neither the U.S. nor the Europeans will come to the Saudis help. There are no technological means to reasonably protect against such attacks. Poor Yemen defeated rich Saudi Arabia.

The Saudi side will have to agree to political peace negotiations. The Yemeni demand for reparation payments will be eye watering. But the Saudis will have no alternative but to cough up whatever the Houthi demand.

The UAE was smart to pull out of Yemen during the last months.

If he is correct (and I have never yet found a prediction from him turn out to have been wrong), then this will be an enormous blow to the foreign markets for U.S.-made weapons, since the Sauds are the world’s largest foreign purchasers of those, and have spent profusely on them — and also on U.S. personnel to train their soldiers how to use them. So (and this is my prediction, not his), August 19th might be a good time to sell short U.S. armament-makers such as Lockheed Martin.

However: his prediction that “the Saudis will have no alternative but to cough up whatever the Houthi demand” seems to me to be the first one from him that could turn out to have been wrong. If the Sauds have perpetrated, say, $200 billion of physical damage to Yemen, but refuse to pay more than $100 billion in reparations, and the Housis then hit and take out a major Saudi oil well, isn’t it possible that the Sauds would stand firm? But if they do, then mightn’t it be wrong to say, at the present time, that: “Today Saudi Arabia finally lost the war on Yemen.”? He has gone out on limbs before, and I can’t yet think of any that broke under him. Maybe this one will be the first? I wouldn’t bet on that. But this one seems to me to be a particularly long limb. We’ll see!

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The message behind the release of Iranian oil tanker

Mohammad Ghaderi

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The Gibraltar court ordered the Iranian oil tanker Grace 1 to be released. The tanker was seized by the British Royal Marines about a month ago. 

This verdict was the ending of an elaborate game designed by John Bolton National Security Advisor of the United States and Mike Pompeo, carried out by the Britain government. 

With seizing the tanker, Bolton was trying to put psychological and political pressures on Iran and force other countries to form a consensus against Iran, but he couldn’t fulfill any of these goals. 

Iran’s firm, logical and wise answer to the seizure of Grace 1 (like making solid legal arguments) and the seriousness of our country’s armed forces in giving a proper response to Britain’s contemptuous act, made the White House lose the lead on reaching its ends. 

Washington imagined that the seizure of Grace 1 will become Trump’s winning card against Iran, but the release of the tanker (despite disagreement of the U.S.) became another failure for the White House in dealing with Iran.  

Obviously, London was also a total loser in this game. It is worth noting that U.S. was so persistent about keeping the oil tanker in custody that John Bolton traveled to London and insisted on British officials to continue the seizure of the ship. Their failure, however, clearly shows that the White House and its traditional ally, Britain, have lost a big part of their power in their relations with Iran. 

Clearly, the illegal seizure of the Iranian oil tanker by Britain proceeded by the seizure of a British tanker by Iran and the following interactions between the two countries is not the whole story and there is more to it that will be revealed in coming days. 

What we know for sure is that London has to pay for its recent anti-Iran plot in order to satisfy Washington; the smallest of these consequences was that Britain lost some of its legal credibility in international arena as it illegally captured an Iranian oil tanker. 

The order of the Gibraltarian court revealed that London had no legal right to seize the Iranian oil tanker and nobody can defend this unlawful action. Surely, Iran will take all necessary legal actions to further pursue the matter.  

In this situation, the Islamic Republic of Iran is firm on its position that it doesn’t have to follow the sanctions imposed by the European Union on other countries (including Syria). 

No entity can undermine this argument as it is based on legal terms; therefore, Iran will keep supporting Syrian nation and government to fight terrorism. This is the strategic policy of the Islamic Republic and will not be changed under the pressure or influence of any other third country. 

Finally, it should be noted that the release of Grace 1 oil tanker was not only a legal and political failure for Washington and London and their allies but it was also a strategic failure. Undoubtedly, the vast consequences of this failure will be revealed in near future. 

From our partner Tehran Times

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Middle East

Business and boxing: two sides of the same coin

Dr. James M. Dorsey

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What do a planned US$15 billion Saudi investment in petroleum-related Indian businesses and a controversial boxing championship have in common?

Both reflect a world in which power and economics drive policy, politics and business at the expense of fundamental rights.

And both underscore an emerging new world order in which might is right, a jungle in which dissenters, minorities and all other others are increasingly cornered and repressed.

Rather than furthering stability by building inclusive, cohesive societies both support trends likely to produce an evermore unstable and insecure world marked by societal strife, mass migration, radicalization and violence.

A world in which business capitalizes on decisions by a critical mass of world leaders who share autocratic, authoritarian and illiberal principles of governance and often reward each other with lucrative business deals for policies that potentially aggravate rather than reduce conflict.

No doubt, the planned acquisition by Saudi Arabia’s state-owned national oil company Aramco of 20 percent of the petroleum-related businesses of Reliance Industries, one of India’s biggest companies, makes commercial and strategic economic and business sense.

Yet, there is equally little doubt that the announcement of the acquisition will be read by Indian prime minister Narendra Modi, days after he scrapped the autonomous status of the troubled, majority Muslim region of Kashmir, as a license to pursue his Hindu nationalist policies that discriminate against Muslims and other minorities and fuel tensions with Pakistan, the subcontinent’s other nuclear power.

The ultimate cost of the fallout of policies and business deals that contribute or give license to exclusion rather than inclusion of all segments of a population and aggravate regional conflict could be far higher than the benefits accrued by the parties to a deal.

Underscoring the risk of exclusionary policies and unilateral moves, cross border skirmishes between Indian and Pakistani forces erupted this week along the Kashmiri frontier in which at least five people were killed.

The timing of the announcement of the Aramco Reliance deal in a global environment in which various forms of racism and prejudice, including Islamophobia, are on the rise, assures Indian political and business leaders that they are unlikely to pay an immediate price for policies that sow discord and risk loss of life.

Like in the case of Saudi and Muslim acquiescence in China’s brutal clampdown on Turkic Muslims in the troubled, north-western Chinese province of Xinjiang, the most frontal assault on a faith in recent history, the announcement risks convincing embattled Muslim minorities like the Uighurs, the Kashmiris or Myanmar’s Rohingya who are lingering in refugee camps in Bangladesh that they are being hung out to dry.

To be sure, Kashmiris can count on the support of Pakistan but that is likely to be little more than emotional, verbal and political.

Pakistan is unlikely to risk blacklisting by the Financial Action Task Force (FATF), an international anti-money laundering and terrorism finance watchdog, at its next scheduled meeting in October by unleashing its anti-Indian militants.

Anthony Joshua’s controversial fight with Andy Ruiz scheduled for December in Saudi Arabia, the first boxing championship to be held in the Middle East, pales in terms of its geopolitical or societal impact compared to the Saudi Indian business deal.

Fact is that Saudi Arabia’s hosting of the championship has provoked the ire of activists rather than significant population groups. The fight is furthermore likely to be seen as evidence and a strengthening of Crown Prince Mohammed bin Salman’s selective efforts to socially liberalize the once austere kingdom.

Nonetheless, it also reinforces Prince Mohammed’s justified perception that Saudi Arabia can get away with imprisoning activists who argued in favour of his reforms as well as the lack of transparency on judicial proceedings against the alleged perpetrators of the killing of journalist Jamal Khashoggi in the Saudi consulate in Istanbul. Saudi Arabia insists the killing was perpetrated by rogue operatives.

What Saudi investment in India and the scheduled boxing championship in the kingdom have in common is that both confirm the norms of a world in which ‘humane authority,’ a concept developed by prominent Chinese international relations scholar Yan Xuetong, is a rare quantity.

Mr. Yan employs the concept to argue without referring to President Xi Jinping, Xinjiang, China’s aggressive approach towards the South China Sea or its policy towards Taiwan and Hong Kong that China lacks the humane authority to capitalize on US President Donald J. Trump’s undermining of US leadership.

Mr. Yan defines a state that has humane authority as maintaining strategic credibility and defending the international order by becoming an example through adherence to international norms, rewarding states that live up to those norms and punishing states that violate them. Garnering humane authority enables a state to win allies and build a stable international order.

Mr. Yan’s analysis is as applicable to India and Saudi Arabia as it is to China and others that tend towards civilizational policies like the United States, Russia, Hungary and Turkey.

It is equally true for men like Anthony Joshua promoter Eddie Hearn and business leaders in general.

To be sure, Aramco is state-owned and subject to government policy. Nonetheless, as it prepares for what is likely to be the world’s largest initial public offering, even Aramco has to take factors beyond pure economic and financial criteria into account.

At the end of the day, the consequence of Mr. Yan’s theory is that leadership, whether geopolitical, economic or business, is defined as much by power and opportunity as it is by degrees of morality and ethics.

Failure to embrace some notion of humane authority and reducing leadership and business decisions to exploiting opportunity with disregard for consequences or the environment in which they are taken is likely to ultimately haunt political and business leaders alike.

Said Mr. Yan: “Since the leadership of a humane authority is able to rectify those states that disturb the international order, the order based on its leadership can durably be maintained.”

What is true for political leaders is also true for business leaders even if they refuse to acknowledge that their decisions have as much political as economic impact.

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