Fracking the Saudi Kingdom, Cash Needed to Survive

Posted on November 9, 2017November 9, 2017 by Denise Simon

When the price of oil at the barrel hovers in the range of $50.00, oil rich nations start to see red on the balance sheets due in part to U.S. fracking.

This too is a reason that Russia and Saudi Arabia are making some desperate decisions. While Russia has no intention of altering internal operations with regard to employment and consumption, the Saudi Kingdom has countless moving parts under consideration for a long term survival strategy especially with a rather new leadership in the order of Princes.

This is not a recent condition for the Saudi royals as it began with real attempts to control the outflow of money and playboy princes spending money globally including in fraudulent and illicit activities.

The kingdom has big plans for the future to compete and must remove all internal obstacles first to gain investment money.

Rhiayad has made a decision to no longer rely on oil for economic sustainability.

The future of Saudi Arabia is described here and is known as ‘Vision 2030‘.

It was once procedure to keep chaos in the Kingdom quiet, but not so much anymore.

King Salman’s sweep may have been foreshadowed two weeks ago, when Maan al-Sanea, a raffish Kuwaiti billionaire, was arrested at his home on the eastern coast of Saudi Arabia.

An exceedingly messy affair ensued. The head of the Gosaibi family accused Sanea of opening the bank—which was called the International Banking Corporation, or T.I.B.C.—without his consent, and of systematically defrauding the family and the bank’s customers. Corporate investigators subsequently uncovered what they believed was evidence of a scheme involving forged signatures and the issuing of fake loans. Lawyers for Sanea claimed in court that the Gosaibis knew what he was doing all along, but they never explained the signatures or loans the investigators had raised questions about.

The financial complexities of the case were daunting—in part because of the opacity of the Saudi legal system. The dispute between the Gosaibis and Sanea played out in separate lawsuits in the Cayman Islands, Switzerland, Bahrain, the U.A.E., and other legal jurisdictions around the world. Yet only one jurisdiction, Sanea’s lawyers claimed, truly mattered. “Our client’s position has always been that the substantive dispute between him and the al-Gosaibi family can be dealt with properly in Saudi Arabia,” they said. More details here.

*** Then there is the case of Prince Abdul Aziz bin Fahd. Is he dead or not? The Kingdom says no he only being detained. Others say hold on….this too appears to be about flaunting money in some cases…dark corners, other places globally. Some real fascinating details are here.

Saudi Arabia has some competitors for economic survival, those being Qatar, the United Arab Emirates and Kuwait. Then there is of course Iran, an even more devilish enemy to Saudi Arabia in many cases than it is to Israel and the United States.

Saudi Arabia has been at war in Yemen due to the Iranian back Houthi rebels for a few years and still has to contend with Bahrain which too has a Shia majority, often inspired by Tehran as was seen in the 2011 Arab Spring protests.

Then there is Lebanon. While Lebanon does have a sizable Christian population, it is essentially controlled by Iran’s Hezbollah and too holds the largest number of refugees from the Syrian civil war. Lebanon’s Prime Minister took a trip to Washington DC and the Trump White House in July, likely to explain conditions in the country taking a tailspin. In early November, Prime Minister Hariri traveled then to Saudi Arabia, probably at the Kingdom’s demand and soon resigned. He is reported to still in in Rhiayad under consultation and protection as he feared for his life in Lebanon as it is reported. Hariri may be hold up at the Ritz Carlton along with the dozen other detained princes under a tight military security condition.

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Iran is controlling Lebanon, Syria and Iraq and is working to do the same in Yemen. The Saudi Mission in the United Nations has justified a new blockade on Yemen by accusing Iran of “direct military aggression”, linking Iranians and Hezbollah to a Burkan H2 missile fired by Houthi rebels towards Riyadh airport and oil facilities, as stakes raised between regional rivals. Iran’s president Rouhani declared Saudi Arabia to stay out of the business in Lebanon.

So is a larger conflict looming? The tea leaves reveal that probability. So, if that is the case, the Kingdom needs all wayward princes out of the way including those in opposition to the modernization of the Kingdom and money will be an issue. $800 billion is on the line so far and rumored to be confiscated.

What is notable is Saudi Arabia issued a declaration directly after Prime Minister Hariri resigned for all Saudi citizens in Lebanon to leave Lebanon immediately as Bahrain has done the same.

So, with regard to funds. a Saudi attorney general said legal probe underway suggests at least $100 billion has been misused in corruption and embezzlement over several decades. 208 were part of the legal probe and have been released, while others are detained and more investigations continue.

So far: The UAE, particularly its most commercially prominent emirate Dubai, is one of the main places where wealthy Saudis park their money abroad. In addition to bank accounts, they buy luxury apartments and villas in Dubai and invest in the emirate’s volatile stock market.

Huge amounts of money may be at stake. Corruption has over the years siphoned off $800 billion from Saudi state revenues, an official at the Riyadh Chamber of Commerce and Industry has estimated; bankers believe much of it is held abroad, in countries including Switzerland and Britain.

ASSETS SOLD

Some wealthy Saudi individuals have been liquidating assets within Saudi Arabia, the UAE and other Gulf countries this week, apparently in an effort to move money out of the region and escape the crackdown, private bankers and fund managers said.

*** Whenever and wherever there is political unrest, Russia is always lurking. That is part in parcel why Russia was mentioned at the top of this article.

There is little doubt that Putin’s foreign policy centers on reviving Russia as a major international power, which seeks to undermine the global American alliance that has underwritten international security since the end of the Cold War.

Stretching across Europe, Asia and the Middle East, this alliance has continually thwarted Russia’s primary foreign policy ambitions. Seeking to break Russia free from America’s preeminence, Putin persistently employs tactics below the threshold of war to fracture the global system and artfully exploits the unintended consequences this inevitably creates.

Putin’s asymmetrical moves have sought to cast doubt on the credibility of American security guarantees in Eastern Europe and in the Baltic. And while alarm bells have sounded, Putin has shied away from direct military confrontation with NATO.

Putin has also now turned to a second front by exploiting the void left by U.S. retrenchment from the Middle East. The projection of Russian military power in Syria in the summer of 2015 ushered in a new era of expansion in the Arab world – particularly through arm sales and limited military involvement. In Moscow’s view, the Middle East is ripe for disruption, with lower risks of a direct confrontation with the United States.

Putin’s show of force unsurprisingly has found him new friends and new buyers. Regional powers are hedging against U.S. unpredictability and seeking out Russian benevolence. Furthering the sense of uncertainty is the lingering crisis between the Gulf Cooperation Council states and Qatar. While the Gulf sees uncertainty, Russia sees an opportunity to prey on their doubts.

The announced sale of the S-400 missile defense system to Riyadh during the October visit of King Salman to Moscow, the first Saudi monarch to visit Russia, is a further sign of the deepening role Moscow is playing in an area of the world where the U.S. has traditionally been predominant.

This is not the first time Putin has ventured into arm sales in the Middle East, a region that is typically dominated by the U.S. weapons industry. Previous sales of the S-300 have been delivered to Iran, while Turkey recently signed a deal with Moscow to acquire the S-400 as well. Furthermore, Bahrain and Qatar, the home to the U.S.’s Fifth Fleet and the Al Udeid military base respectively, have also expressed interest in acquiring the system, according to Russian media. Its acquisition, if completed, raises important implications for the U.S.’s strategic posture in the Gulf. The proliferation of such systems is certainly not in America’s interest.

The acquisition of the S-400 by Riyadh comes after the U.S. recently sold $15 billion worth of THAAD equipment to the Kingdom. This system will be the premier ballistic missile defense system in the Middle East, with the exception of Israel’s. But for its new air defense system, Saudi Arabia felt the need to turn to Russia.

Riyadh’s rapprochement with Moscow is a way to hedge against a more uncertain U.S. engagement and to gain some leverage in its relationship with Washington. While the U.S. has tried to assuage Saudi concerns about its own steadfastness in the region, Moscow has been able to sow enough doubt in Riyadh to undermine American efforts. Riyadh is careful to show that it won’t completely fall in line either with Washington or Moscow but will try to balance one relationship with the other. While the agreement to purchase the S-400 is a signal towards Washington, it is equally telling that the sale of the THAAD missile defense system was approved amidst Salman’s visit to Moscow. More here by Andrew Bowen.

Not even a crystal ball or a higher power can really sort all of this out…but now you have some facts giving rise to some clues and can make a better estimation….right?

Testimony: Hezbollah, the Illicit Networks Global Reach

Posted on November 8, 2017November 8, 2017 by Denise Simon

Place of Origin: Lebanon

Year of Origin: 1982

Founder(s): Ali Akbar Mohtashemi—Iran’s then-ambassador to Syria; Imad Fayez Mughniyeh; Grand Ayatollah Muhammad Hussein Fadlallah; Abbas al-Musawi

Places of Operation: Lebanon, Syria, Germany, Mexico, Paraguay, Argentina, Brazil, Iran, United Arab Emirates

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Emanuele Ottolenghi
House Committee on Foreign Affairs, Western Hemisphere Subcommittee
8 November 2017

Chairman Cook, allow me first to congratulate you on your recent appointment as the new chairman of this subcommittee. Mr. Chairman, Ranking Member Sires, members of the subcommittee, thank you for the opportunity to testify on behalf of the Foundation for Defense of Democracies and its Center on Sanctions and Illicit Finance.

In 2011, the U.S. Drug Enforcement Administration (DEA) indicted Ayman Saied Joumaa, a Lebanese-Colombian dual national whose global network of companies operating out of Latin America, West Africa, and Lebanon laundered money for Mexican and Colombian cartels to the tune of $200 million a month of drug proceeds.[1] Joumaa worked with Hezbollah as the kingpin in one of many networks Hezbollah runs globally to sustain its financial needs. When his case came to light, the New York Times quoted a DEA official as saying that Hezbollah operated like “the Gambinos on steroids.”[2]

The United States cannot continue to combat a threat of such magnitude unless it leverages all its tools of statecraft in a combined, sustained, and coordinated fashion. Over the past decade, Hezbollah’s terror finance outside Lebanon has evolved from a relatively small fundraising operation involving trade-based money laundering and charitable donations into a multi-billion dollar global criminal enterprise.

Increasing quantities of Schedule 2 drugs like cocaine invade the U.S. from Latin America, adding fuel to the opioid pandemic that has already cost so many lives.[3] Cocaine consumption is as much a national epidemic as opioids, Mr. Chairman, and Hezbollah helps make it available to U.S. consumers.

This makes Hezbollah, its senior leadership, and its numerous operatives involved in running illicit drug-trafficking and money-laundering operations on a global scale the perfect candidates for Kingpin and Transnational Crime Organization designations, in addition to the terrorism and terror finance designations already in place.

The U.S. government has, over the years, developed remarkably sharp and effective tools to counteract Hezbollah’s terror finance threat, but is not using them as vigorously as it should. The Kingpin Act is one such instrument. But like all other instruments of statecraft, its impact would be much greater if used consistently and in conjunction with other tools. The challenge for Congress, the executive branch, the intelligence community, and law enforcement agencies is to leverage these tools in a manner that will outsmart Hezbollah and disrupt its cash flows enough to inflict irreparable damage to the terror group’s finances.

In pursuit of this goal, America needs to better coordinate the application and enforcement of all instruments available from the formidable toolbox created over the past two decades by legislation and executive orders, including leveraging Executive Orders 13581 and 13773 on combating transnational organized crime, Executive Order 13224 on combating sources of terror finance, the 1999 Foreign Narcotics Kingpin Designation Act, the 2015 Hezbollah International Financing Prevention Act (HIFPA), the Global Magnitsky Human Rights Accountability Act of 2016, and soon the Hezbollah International Financing Prevention Act Amendment of 2017, which is now awaiting reconciliation between its House and Senate versions and which will, once approved, expand on HIFPA.

In doing so, it should focus significantly on the Western Hemisphere, where Hezbollah’s global footprint, especially in Latin America, is most menacing.

Hezbollah’s regional operations are part of a global network of illicit financial and commercial enterprises whose goal is to fund Hezbollah’s activities in the Middle East. Where and when needed, these networks can also be activated to provide logistical support to operatives engaged in planning terror attacks. The United States therefore needs to think and act globally to disrupt Hezbollah’s illicit finance networks. Latin America is a very good place to start doing that.

In the remainder of my testimony, I will discuss evidence demonstrating the magnitude of the threat posed by Hezbollah’s terror finance to the national security of the United States. I will also provide evidence of the high-ranking nature of Hezbollah’s operatives in Latin America – a sure sign of the importance of Hezbollah’s Latin American networks to the organization’s budget. And I will discuss the impact of U.S. policy and actions on disrupting Hezbollah’s terror finance activities. The evidence I am presenting today, hopefully, will highlight both strengths and weaknesses of present U.S. policy and offer ways to improve results.

Download the full testimony here.

[1] U.S. Department of the Treasury, Press Release, “Treasury Targets Major Lebanese-Based Drug Trafficking and Money Laundering Network,” January 26, 2011. (https://www.treasury.gov/press-center/press-releases/Pagés/tg1035.aspx); see also: U.S. Department of the Treasury, Press Release, “U.S. Charges Alleged Lebanese Drug Kingpin with Laundering Drug Proceeds for Mexican and Colombian Drug Cartels,” December 13, 2011. (https://www.justice.gov/archive/usao/vae/news/2011/12/20111213joumaanr.html)

[2] Jo Becker, “Beirut Bank Seen as a Hub of Hezbollah’s Financing,” The New York Times, December 13, 2011. (http://www.nytimes.com/2011/12/14/world/middleeast/beirut-bank-seen-as-a-hub-of-hezbollahs-financing.html)

[3] Nick Miroff, “American cocaine use is way up. Colombia’s coca boom may be why,” The Washington Post, March 4, 2017. (https://www.washingtonpost.com/news/worldviews/wp/2017/03/04/colombias-coca-boom-is-showing-up-on-u-s-streets/?utm_term=.d370be3ebe9c)

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*** A short briefing from the State Department on October 10, 2017 by National Counter-terrorism Center Director, Nick Rasmussen:

Hizballah’s use of terrorism across the globe, which has persisted for several decades; second, the group’s continued effort to advance terrorism acts worldwide; and third, the fact that the organization is, in fact, focused on U.S. interests, including here in the homeland. And that is part of the reason why we are here today.

Lebanese Hizballah has repeatedly demonstrated for the world its true character. It is an organization that relies on terrorism as well as other forms of violence and coercion to achieve its goals. And this takes place in spite of the group’s attempts to portray itself as a legitimate political party. Prior to September 11th, I think everybody knows Hizballah was responsible for the terrorism-related deaths of more U.S. citizens than any other foreign terrorist organization.

Now, for many Americans, their introduction to the threat posed by this group came after Hizballah’s attack on the U.S. embassy in Beirut in April of 1983. That horrific attack killed 63 and wounded an additional 120 individuals, and it was followed by an even more deadly attack on our Marine barracks in October of 1983 which killed 241 Americans and wounded an additional 128 Americans.

So Hizballah’s penchant for violence has not changed over the last three decades. We’ve seen time and time again with its international terrorism unit, the External Security Organization, also known as the IJO, the Islamic Jihad Organization, and Unit 910, 9-1-0. But its deployment of operatives to nearly every corner of the globe continues to engage in terrorism-related activity.

In 2012 the group carried out a bomb attack in Bulgaria that killed five Israeli tourists and one Bulgarian national, and a number of Hizballah operatives have been caught laying the groundwork for attacks in places like Azerbaijan, in Egypt, in Thailand, in Cyprus, and in Peru. And there are other instances of Hizballah-related arrests and disruptions around the world that are at this point unpublicized and remain classified.

But all of this together shows us that the group seeks to develop and maintain a global capability to carry out acts of terror. I can assure you that the conversation today would be much different had some of these disrupted plots actually succeeded. Casualty counts would be higher and many innocent lives would have been forever altered. The group is also known to focus on areas populated by tourists, almost guaranteeing that with their attacks innocent victims – innocent civilians will be victims.

Now, with respect to the homeland here in the United States, let me say this. While much of our work in the government since 9/11 has focused on al-Qaida and more recently on ISIS, in the 20 years since Hizballah’s designation as a foreign terrorist organization, we have never taken our focus off of Hizballah and on the threat it represents to the homeland.

***

Syria, ISIS, and the Broader Middle East

As an Iranian proxy, Hezbollah has taken up arms alongside Syrian and Iranian forces in defense of the Syrian regime in that country’s civil war. In 2012, the U.S. Treasury levied additional sanctions on Hezbollah for its support of Syrian President Bashar al-Assad’s regime. According to Treasury, since the beginning of the Syrian civil war in early 2011,

Hezbollah provided “training, advice and extensive logistical support to the Government of Syria’s increasingly ruthless efforts to fight against the opposition.” 45

As of October 2016, Hezbollah and Syrian forces were reportedly besieging some 40,000 Syrians in three towns, preventing them access to medical treatment. 46

During an October 2016 rally in Beirut, Nasrallah promised that Hezbollah

would “continue to bear our great responsibilities of jihad” in Syria. 47

In January 2015, in response to Israeli airstrikes on alleged weapons shipments to Hezbollah in Syria, Nasrallah called the strikes an aggression against Syria’s regional allies.

As such, Syria’s allies have the right to retaliate, according to Nasrallah. 48

Hezbollah’s activity in Syria has its domestic detractors as well. Subhi al-Tufayli, Hezbollah’s first secretary-general from 1989 to 1991, has accused Hezbollah of being

a “partner in the killing of the Syrian people.” He denounced Hezbollah members who fight alongside Russians, and called on the Hezbollah leadership to heed Lebanese opposition to the group’s involvement in Syria. 49

Hezbollah’s role in Syria is not limited to fighting anti-government rebels. Under Iranian direction, Hezbollah has also fought against ISIS, which Nasrallah described as a growing threat to the region and an existential threat to Lebanon in an August 2014 interview with the Lebanese newspaper Al-Akhbar. 50

Hezbollah has also fought against the Nusra Front (Jabhat Fateh al-Sham).51

On October 19, 2016, Qassem told Hezbollah’s Al-Manar TV that Hezbollah “will not leave Syria as long as there is a need to confront takfiri groups.” 52

In November 2016, Hezbollah held a public parade in the Syrian city of Qusair to highlight its role in the conflict. The terror group showcased U.S. and Russian armored personnel carriers and tanks. The U.S. State Department issued a statement that it was “gravely concerned” and investigating how Hezbollah acquired U.S. equipment. 53

The United States provides aid to the Lebanese military, which denied that U.S.-provided weaponry had been transferred to Hezbollah 54. Read the full report here.

Khald Hiftar of Libya Hires DC Lobby Firm

Posted on November 7, 2017November 7, 2017 by Denise Simon

Col. Hiftar hires a DC lobby firm….why? To get money from the U.S. and Russia at the same time perhaps?

Khaled Khalifa Hiftar is restoring Libya to what end and before Russia fully steps in?What about the migrant crisis?

After Hiftar gained political and military legitimacy, Hifter concentrated on fighting Islamists in Benghazi, though with little initial success. His most sworn enemy was Ansar al-Sharia, the dominant terror group in Benghazi at the time, which the United States had already declared a terrorist organization after it was accused of killing the US ambassador in 2012.

Hifter relied heavily on his tribal connections in eastern Libya and capitalized on the bad security situation in Benghazi. By May 2015, he believed he had enough force to declare war on terror throughout Libya, not just Benghazi, where hundreds of former security officials, army officers and civil and political activists had been assassinated. In a way he was defending himself since he knew that he could be next on the death list.

His offensive in Benghazi stalled for a while since the army fragments he managed to reorganize were few in numbers and lacked training and equipment. Above all, many former professional officers did not join him because neither his motives nor his objectives were clear. More here.

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For months, the Kremlin has sought to draw Libya’s eastern potentate General Khalifa Hiftar into its orbit. Hiftar is currently the de facto leader of a bloc of eastern Libyan forces that oppose Libya’s internationally recognized government in Tripoli, the so called Government of National Accord. Negotiations between the two sides are going nowhere and rumors of a potential Hiftar offensive against the Tripoli government have been swirling for months.

Hiftar has been to Moscow and paid a visit to the Russian aircraft carrier Kuznetsov in the Mediterranean, during which he held a video call with Russian Defense Minister Defense Minister Sergei Shoigu. Then, last week, Moscow reportedly deployed troops to a base on Egypt’s northern coast just 60 miles from the border crossing with Libya.

There are a few ways to interpret their latest move: It could just be posturing, part of a Russian hybrid warfare strategy aimed at influencing ongoing negotiations over Libya’s future. But there are plenty of reasons to believe it may be the early phase of a Russian intervention.

Russian President Vladimir Putin is eager to underscore the challenges that U.S. pro-democracy interventions in the Middle East have faced and offer up an alternative Russian strategy that relies on authoritarian leaders that look a lot like Putin himself. The 2011 NATO intervention in Libya has long been a target of Kremlin criticism and the chance to portray Russia as Libya’s savior as Russia has attempted to do in Syria must be more than a little tempting for the Russian president.

Closer ties to Libya would also offer Russia the chance to extend its reach further along the Mediterranean’s southern littoral i.e. NATO’s southern flank. Russia could, for example, seek to deploy advanced anti-access, area-denial systems along the Libyan coast, significantly enlarging the anti-access bubble that it has already established in the Eastern Mediterranean with similar deployments in Syria a bubble that was already raising significant concern with top U.S. military commanders a year ago. More here.

Further, what was his relationship with Hillary and Ambassador Cretz? We may never know due to those still missing Hillary emails.

Downfall and exile

Gaddafi put Haftar – recently promoted to field marshal – in charge of the Libyan forces involved in the conflict in Chad in the 1980s. This proved to be his downfall, as Libya was defeated by the French-backed Chadian forces, and Haftar and 300 of his men were captured by the Chadians in 1987.

Having previously denied the presence of Libyan troops in the country, Gaddafi disowned him. This led Haftar to devote the next two decades towards toppling the Libyan leader.

He did this from exile in the US state of Virginia. His proximity to the CIA’s headquarters in Langley hinted at a close relationship with US intelligence services, who gave their backing to several attempts to assassinate Gaddafi.

Return from exile

After the start of the uprising against Gaddafi in 2011, Haftar returned to Libya where he became a key commander of the makeshift rebel force in the east.

With Gaddafi’s downfall, Haftar faded into obscurity until February 2014, when he outlined on TV his plan to save the nation and called on Libyans to rise up against the elected parliament, the General National Congress (GNC), whose mandate was still valid at the time.

His dramatic announcement was made at a time when Libya’s second city, Benghazi, and other towns in the east had in effect been taken over by the local al-Qaeda affiliate, Ansar al-Sharia, and other Islamist groups who mounted a campaign of assassinations and bombings targeting the military, police personnel and other public servants.

Although Haftar did not have the wherewithal to put his plan into action, his announcement reflected popular sentiment, especially in Benghazi, which had become disenchanted with the total failure of the GNC and its government to confront the Islamists.

Haftar’s popularity is not necessarily shared elsewhere in the country where he is remembered more for his past association with Gaddafi and his subsequent US connections.

He is also detested by Islamists who resent him for confronting them in Benghazi and elsewhere in the east.

Operation Dignity

In May 2014 Haftar launched Operation Dignity against Islamist militants in Benghazi and the east. In March 2015 Libya’s elected parliament, the House of Representatives (HoR) – which had replaced the GNC – appointed him commander of the Libyan National Army (LNA).

After a year of little progress, in February 2016 the LNA pushed the Islamist militants out of much of Benghazi. By mid-April this had been followed up by further military action that dislodged the Islamists from their strongholds outside Benghazi and as far as Derna, 250km east of Benghazi.

Operation Swift Thunder

In September 2016, the LNA launched operation “Swift Thunder”, seizing from the Petroleum Facilities Guard – an armed group aligned with the UN-brokered Government of National Accord (GNA) – the key oil terminals of Zueitina, Brega, Ras Lanuf and Sidrah, in the oil-rich heartland locally known as the Oil Cresent.

In recognition of this, the Speaker of the HoR and supreme commander of the armed forces, Agilah Saleh, promoted Haftar from lieutenant-general to field marshal. More here from BBC.

Anyone Paying Attention to Wilbur Ross, Commerce Sec?

Posted on November 7, 2017November 7, 2017 by Denise Simon

What is Wilbur Ross worth? The answer is a slippery one when you ask Wilbur to respond. There is a dispute when it comes to his financials in the ranger of a billion or two. Further, where did his wealth come from you ask? Well there were allegedly family trusts, hotels, shipping companies, steel, banking in Cyprus and even those Rothschilds. More here from Forbes.

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Wilbur Ross’ company has been moving LPG for a Russian gas giant.

But now, in what might seem almost an echo of the Red Scare that lasted in America for generations, this business relationship is seen as tainted, an ominous connection to a country that unleashed cyberwar against American democracy and the 2016 election that put Trump in the White House.

Are all connections to Russia now suspect? Or are they sometimes merely an inconvenient consequence of doing business in a country where major corporations often are controlled by the Kremlin?

The latest tie between Russia, Trump and his campaign and administration officials came to light Sunday with news that the U.S. commerce secretary is a part owner of Navigator Holdings, a shipping company that transports LPG produced by Sibur, a big Russian company with ties to the Kremlin.

Some shipping business experts who follow the company are shrugging off the news.

“Russia has a lot of commodities that need to go somewhere else,” said Benjamin J. Nolan, a financial analyst who covers Navigator for Stifel, Nicolaus & Co. He added, “Odds are, they are going to have long term contracts with Western shipping companies.”

The Russian government is a powerful factor in almost every part of the country’s economy. Some of Russia’s biggest banks, such as Sberbank and VTB are state-controlled, with their management answering directly or indirectly to the Kremlin.

Then there is Gazprom, a big gas supplier to Europe, and Rosneft, the oil producer. Both are majority state owned.

***

Two people associated with Siber are under U.S. sanctions

***

How about Venezuela? Yup…

Despite U.S. sanctions on Venezuela’s bond transactions in international markets and other restrictions against top officials, the Paradise Papers show that Secretary of Commerce Wilbur Ross has an important stake in multi-million dollar businesses related with state-oil giant Petróleos de Venezuela (PDVSA).

As reported by Newsweek on Sunday, Ross still retains interest in Navigator Holdings, a shipping company incorporated in the Marshall Islands in the South Pacific that maintains a close relationship with Russia’s energy company SIBUR, which is run by President Vladimir Putin’s son-in-law Kirill Shamalov and other individuals who have been sanctioned by the U.S. Navigator Holdings has received millions of dollars every year in earnings due to coastal shipping services provided to PDVSA.

PDVSA is no small client of Navigator Holdings. The state-oil company contributed to 10.7 percent of Navigator’s earnings during fiscal year 2014 and 11.7 percent in fiscal year 2015, according to Venezuelan newspaper El Nacional. The company’s earnings translate into $33.7 million and $36.7 million for each fiscal year thanks to PDVSA’s use of the Navigator’s 29 tankers to carry liquefied petroleum gas during those years.

As he was awaiting confirmation, Ross failed to disclose any business interests with Putin’s family and his stake in the maritime industry. James Rockas, Ross’s spokesman, told the New York Times that the secretary of commerce “recuses himself from any matters focused on transoceanic shipping vessels, but has been generally supportive of the [Trump] administration’s sanctions of Russian and Venezuelan entities.”

But Ross’s businesses pose a potential conflict of interest, ICIJ reported. Ross has “the power to influence U.S. trade, sanctions and other matters that could affect SIBUR’s owners,” the Paradise Papers report added. More here from Newsweek.

Saudi Arabia says Lebanon Declares War

Posted on November 7, 2017November 7, 2017 by Denise Simon

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It is all about Iran….

Saudi Arabia reveals list of wanted members of the terrorist Iranian militias in the region including Yemen.

What did President Trump know or what was he told?

Remarks by President Trump and Prime Minister Hariri of Lebanon in Joint Press Conference

Saudi Arabia says Lebanon declares war, deepening crisis

BEIRUT (Reuters) – Saudi Arabia accused Lebanon on Monday of declaring war against it because of aggression by the Iran-backed Lebanese Shi‘ite group Hezbollah, a dramatic escalation of a crisis threatening to destabilize the tiny Arab country.

Lebanon has been thrust to the center of regional rivalry between Saudi Arabia and Iran since the Saudi-allied Lebanese politician Saad al-Hariri quit as prime minister on Saturday, blaming Iran and Hezbollah in his resignation speech.

Saudi Gulf affairs minister Thamer al-Sabhan said the Lebanese government would “be dealt with as a government declaring war on Saudi Arabia” because of what he described as aggression by Hezbollah.

Faulting the Hariri-led administration for failing to take action against Hezbollah during a year in office, Sabhan said “there are those who will stop (Hezbollah) and make it return to the caves of South Lebanon”, the heartland of the Shi‘ite community.

In an interview with Al-Arabiya TV, he added: “Lebanese must all know these risks and work to fix matters before they reach the point of no return.”

He did not spell out what action Saudi Arabia might take against Lebanon, a country with a weak and heavily indebted state that is still rebuilding from its 1975-90 civil war and where one-in-four people is a Syrian refugee.

There was no immediate comment from the Lebanese government.

Hezbollah is both a military and a political organization that is represented in the Lebanese parliament and in the Hariri-led coalition government formed last year.

Its powerful guerrilla army is widely seen as stronger than the Lebanese army, and has played a major role in the war in neighboring Syria, another theater of Saudi-Iranian rivalry where Hezbollah has fought in support of the government.

Lebanese authorities said on Monday the country’s financial institutions could cope with Hariri’s resignation and the stability of the Lebanese pound was not at risk.

But the cash price of Lebanon’s U.S. dollar-denominated bonds fell, with longer-dated maturities suffering hefty losses as investors took a dim view of the medium- to longer-term outlook for Lebanon.

HARIRI FREE TO TRAVEL, SAUDI FM SAYS

Hariri cited a plot to assassinate him during his unexpected resignation speech broadcast from Saudi Arabia which caught even his aides off guard. He also slammed Hezbollah and Iran, accusing them of sowing strife in the Arab world.

Hezbollah leader Sayyed Hassan Nasrallah has said he will not comment on Hariri’s speech, calling it a “Saudi statement” and saying Riyadh had forced Hariri to resign.

The sudden nature of Hariri’s resignation generated speculation in Lebanon that his family’s Saudi construction business had been caught up in an anti-corruption purge and he had been coerced into resigning. More here.

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Western intelligence services warned Lebanon’s former Prime Minister Saad al-Hariri of an assassination plot against him, thus prompting him to resign on Sunday, according to Saudi news media. Hariri is a Saudi-born Lebanese politician, reputed to be one of the world’s wealthiest people. He is the second son of the late Rafiq Hariri, who ruled Lebanon for much of the 1990s but was assassinated in 2005. Saad al-Hariri spent most of his life in Saudi Arabia, the United States and France, but returned to Lebanon in 2014 to lead the Future Movement, a center-right political party supported by Sunni Muslims and some Christians. He became prime minister in 2016.

On Friday, Hariri flew from Beirut to Riyadh for a scheduled high-level visit. But on Sunday he shocked the Arab world by announcing his resignation from the post of prime minister. He did so in a surprise television address from the Saudi capital, which was broadcast live in Lebanon. Hariri told stunned Lebanese audiences that he was resigning in order to protect himself from a plot that was underway to assassinate him. He added that the political climate in Lebanon was intolerably tense and reminded him of the conditions that led to the assassination of his father 12 years ago. He also accused Iran and Hezbollah of acting as the primary destabilizing factors in Lebanon and much of the Middle East. Hariri and his supporters believe that Hezbollah was behind his father’s assassination in 2005. There was intense speculation in Lebanon on Monday that Hariri would remain in Saudi Arabia for the foreseeable future, fearing for his life if he returned to Lebanon.

On Sunday, the Saudi-based newspaper Asharq al-Awsatclaimed that Hariri decided to resign after he “received warnings from Western governments” that there would be an assassination plot against him. The newspaper did not name the Western governments, nor did it identify those who are allegedly trying to kill Hariri. Later on Sunday, Saudi television station al-Arabiya al-Hadath alleged that an assassination attempt against Hariri had been stopped at the last minute in the Lebanese capital Beirut earlier in the week. Both news media cited “sources close” to the Lebanese leader, but did not provide specific information, nor did they give details of the alleged plot or plots. It is worth noting, however, that Lebanese security officials denied these reports from Riyadh. Lebanese media quoted senior security official Major General Abbas Ibrahim as saying that no information about assassination plots had been uncovered. Major Ibrahim, who heads Lebanon’s General Directorate of General Security, said that his agency had no information about attempts to kill Hariri or other Lebanese political figures.

This could mean that the information about a possible assassination plot against Hariri was given directly to him by Western intelligence agencies, probably because the latter fear that Lebanese security agencies are infiltrated by Hezbollah sympathizers. Or it could mean that the Saudi media reports are inaccurate. Lebanon is now awaiting further details by Hariri regarding the alleged assassination plot against him. In the meantime, the already fragile political life of Lebanon appears to be entering a period of prolonged uncertainty.