Britain, Economic, Energy, Europe, Government, Politics, Russia, Society

Energy crisis: We’re at the mercy of Putin. It’s all our fault

ENERGY

THE Berlin Wall may have been brought down more than three decades ago, but the grim politics of the Cold War are in danger of returning to Europe.

With characteristic ruthlessness, Russian president Vladimir Putin is exploiting the energy crisis to bully his neighbours, strengthen his autocracy and intimidate the West.

His chosen weapon in this renewed campaign of hostility is Russia’s control of gas supplies: the vast gas-fields and the export pipelines that bring them directly to market.

This infrastructure, often legacy assets from the Soviet empire, give the Russian president enormous political and economic leverage in his quest for ever-greater domination of the region.

Russia’s capacity to manipulate the British and European energy markets for geopolitical ends has been dramatically illustrated during the turmoil of recent days and weeks. As the price of gas contracts soared by 40 per cent in just 24 hours last week, Gazprom, Russia’s state-backed monopoly exporter of pipeline gas, was accused of flexing its muscles by both restricting supplies to Europe and keeping its European underground storage facilities at deliberately low levels.

The sense of Russian control was further reinforced when it took just a few words from Putin himself to bring an immediate fall in gas prices.

Revelling in his position as the ultimate ringmaster and wire-puller, he said with a hint of blackmail that supplies could be increased. “This speculative craze doesn’t do us any good,” he said, adding that Europe’s leaders should “settle with Gazprom and talk it over”.

RELIANCE

PUTIN might be behaving like a mafia boss in charge of a protection racket, but British and European governments have for years disastrously played into his hands with misguided, short-term policy decisions.

To be fair, the EU has taken some steps to break the Russian stranglehold, by building new international pipelines, breaking the Kremlin’s east-west transit monopoly, and by introducing drastic reforms of the energy market that have unravelled the corrupt, exploitative business model.

Europe has also pioneered the import of liquified natural gas (LNG) from destinations such as Qatar.

Yet Europe has been increasing its reliance on supplies from outside the continent by running down its own domestic energy industries. So far, renewables have not made up the gap, especially in recent months when the wind has not been blowing.

In Britain, the problem is particularly acute because we are one of Europe’s largest gas users, while we have massively reduced gas production from the rich fields of the North Sea and Irish Sea over the past 20 years.

Nor have we made use of the vast reserves of shale gas that exist across the country, even though such resources have recently made America “energy independent” once more.

Instead, Britain has exacerbated its energy vulnerability by depending on just-in-time imports from pipelines and seaborne cargoes.

In a particular act of folly, the Tory Government in 2017 decided to close the huge storage facility on the Yorkshire coast connected to the Rough gas field, believing both that supplies of LNG would always be plentiful and also because the energy companies believed that limiting storage would boost prices and thereby profits.

Some four years later, the step has backfired catastrophically, leaving us at the mercy of Putin.

Indeed, our entire energy strategy has been marked by stinginess, wishful thinking and downright complacency.

By manipulating energy markets, Putin’s immediate objective could not be clearer: he wants to pressurise Europe into approving immediately the operation of Gazprom’s controversial £8.1 billion Nord Stream 2 pipeline.

Now completed, this runs into Germany along the seabed of the Baltic Sea and bypasses Ukraine, in whose eastern regions Russia has been fighting a proxy war since 2014.

Critics say Nord Stream 2 will give too much influence to Russia over regional supplies and their prices.

But crucially, the project is backed by Germany, which puts cheap reliable supplies of Russian gas ahead of the security interests of its east European neighbours. US President Joe Biden’s administration, desperate to repair the damage done to relations with Europe under Donald Trump, has dropped American objections to the scheme.

The result is that Russia can now hold Ukraine and other Eastern European states to ransom. The Kremlin could shut down their gas without having to cut off the rest of Europe. In effect, one group of nations will be played off against the other in a fearful system of divide and rule, with Russia in command.

As Yuriy Vitrenko, the chief executive of Ukrainian energy giant Naftogaz, put it last week: “Moscow is withholding gas supplies in order to coerce Europe into accepting Nord Stream 2. Russia’s actions are the epitome of gas weaponisation. Anyone who refuses to acknowledge what Moscow is doing, especially when it does this so blatantly, is sending a dangerous message to the Russians that they can use gas to blackmail Europe and get away with it.”

TRAGEDY

GIVEN all this, it is almost inevitable that Ukraine will soon be plunged into another security crisis, perhaps even greater than the one that led to the annexation of Crimea in 2014. The fallout would be disastrous, especially in view of the fragility of Europe’s post-Covid economies.

The implications of Russia’s energy strength are brutal, leaving us relentlessly on the defensive. If, for example, Russia invaded Estonia, would NATO respond if Putin threatened to cut off Europe’s gas? The only way to break free from the shackles of energy dependency is to develop our own resources and means of storage.

In the 1970s, Western reliance on Middle Eastern oil created an era of regional conflict and economic crisis.

If today, the same were to happen because of our reliance on Russian gas, that too would be a tragedy.

. Appendage

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Britain, Government, National Security, Russia, Society, United States

The Kremlin’s power to paralyse

WESTERN SECURITY

RUSSIA’S tentacles of sinister cyber operations are snaking out across the globe and pose the gravest of threats to Western security and democracy.

Recent revelations expose the sheer scale, breadth and audacity of the Kremlin-backed plots – and our vulnerability to this new brand of warfare.

Among those who were targeted were a British television network, the Democratic Party in America, public transport hubs in Ukraine, the US engineering giant Westinghouse, and the World Anti-Doping Agency based in Montreal – apparently hacked in a brazen act of revenge for showing Russia’s systematic abuse of the testing regime at the Sochi Winter Olympics in 2014.

Perhaps the most disturbing of all, however, was the unsuccessful attacks on our own soil – at the Foreign Office and Porton Down – and the foiled attempts by four Russian agents to hack the Organisation for the Prohibition of Chemical Weapons (OPCW) in the Hague.

The OPCW is continuing to conduct investigations into the Salisbury novichok poisonings and the use of banned weapons by the Russian-backed Assad regime in Syria.

About a dozen or so “cyber-actors” have been identified as responsible, but they are all fronts for the GRU – the Russian military intelligence unit also implicated in the attempted assassination of former Russian agent Sergei Skripal and his daughter.

Given are dependence on computers, its coordinated attacks have huge implications. Everything from cash machines to home heating systems, from electricity generators to mobile phones, and to the health service which is relying more on cyber technology. We have seen many times in recent years the enormous disruption caused by a temporary breakdown in service, as happened during the botched IT upgrade at the TSB bank.

Similarly, 18 months ago the NHS was hit by a major cyber problem, prompting the mass cancellations of appointments and operations. Then the North Korean government of Kim Jong-Un was cynical enough to take the blame and the fear inspired by that. But it is clear, from the wealth of mounting evidence, that the Russians certainly have the capability and determination to launch similar attacks.

If patients’ lives were put at risk by such a cyber-attack, it would create a real global panic – the cyber equivalent of the Cuban Missile Crisis.

That is why we should be worried. What is happening now in cyberspace is even more dangerous and certainly more unpredictable than the darkest days of the Cold War.

For all the anxieties back then about a nuclear stand-off, at least the hostility between the West and the Soviet Bloc was governed by respected boundaries. The rules – such as a prohibition on assassinations – were generally upheld. Both sides communicated with each other, partly from the need to avoid a nuclear apocalypse through a catastrophic misunderstanding.

That culture has disappeared. We live in a much more fluid world where restrictions on movement – especially in Europe – hardly exist at all. At any given moment there are probably more than 100,000 Russians in Britain, most of them wholly innocent and here to work, study or by enjoying a break. Yet that transient mass also provides cover for hostile intelligence agents.

Moreover, technology makes it much easier for someone to cause mayhem. During the Cold War, if the Soviets wanted to hit a water pumping station or sabotage an aircraft, they had to send in armed agents. Today, that could be accomplished from an office in Moscow or Kiev – just as computer programs can churn out millions of emails to damage businesses, influence elections and propagate fake news and untruths.

Then there are the armies of hackers in “troll” factories who spread and disseminate destabilising information, such as Hillary Clinton’s emails or the intricate medical details of Olympic cyclist Bradley Wiggins’ asthma prescriptions. The aim is to undermine public respect for Western politicians and heroes alike.

The fall of the Berlin Wall almost three decades ago was a remarkable triumph for freedom and capitalism over totalitarianism. But that ascendency lulled Western politicians into a false sense of security.

Russia, which has an economy no bigger than that of Britain or France, is showing almost by the day that if resources are focused on a certain area – in this case cyber warfare – then a nation can still have lethal power.

And we are only just coming to terms with it. Lord Ricketts, who served as Britain’s National Security Adviser until 2012, has warned that the recent plots are just the start, “pilot projects” to test defences in advance of a full-blooded cyber assault to bring anarchy to the West.

As President Putin’s invasion of Crimea and his support for the blood-soaked Assad regime in Syria has shown, he is not a man constrained by normal democratic values. Throughout his presidency he has been pushing at boundaries, seeing what he can get away with, what will provoke the West to act.

Now his dwindling popularity at home over his domestic agenda – particularly his attempt to raise the retirement age – makes it all the more imperative for him to wrap himself in the nationalist flag with high-profile attacks on the West.

 

AT least the complacency in Europe and America is beginning to lift and we are starting to fight back – such as when the Dutch defence minister, Ank Bijeveld, and Peter Wilson, the British ambassador to the Netherlands, explained how the OPCW conspiracy was foiled.

In the context of cyber warfare, the West has unparalleled expertise. The staff of both the US National Security Agency and our own formidable base at GCHQ in Cheltenham have world-beating abilities in hacking computers and other electronic devices.

So far, the West has proved far more restrained than Russia in deploying that expertise. There is only one documented case of Western agents using a computer against an enemy state’s infrastructure. That occurred when the Israelis and the Americans worked together to release the Stuxnet virus into the computers that operated Iran’s nuclear programme. It proved what the West can do if necessary.

But any escalation in cyber warfare is fraught with risk. A miscalculation by any rogue agents, anxious to ingratiate themselves with the Kremlin, could have disastrous consequences.

The reality of the new world disorder is one in which Putin is not only promoting, but relishing. We would do well to remember that.

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Britain, Defence, Military, NATO, Russia, United States

Russia flexes its military muscles

VOSTOK-2018

RUSSIA is conducting a “worrying and alarming” build-up of military power in regions across the world.

As defence sources have warned that manoeuvres by Moscow should be regarded as a “threat to western democracy”, it has been increasing its submarine activity off British shores in a bid to gather intelligence.

And in recent weeks Russia has sent numerous warships and supply chains through the English Channel en route to the eastern Mediterranean. It is feared they are amassing ahead of an air assault on the rebel-held area of Idlib in Syria, which could risk the lives of hundreds of innocent civilians.

Despite the focus often put on Russia’s cyber-warfare capabilities, this week it will conduct its largest military exercise in 37 years, involving almost 300,000 troops, in a huge demonstration of force that is causing alarm in Whitehall. Moscow has boasted that the war games – which serve as a reminder to other nations that Russia maintains a huge conventional military arsenal – will involve 1,000 warplanes, helicopters and drones, up to 80 combat and logistics ships and around 36,000 tanks, armoured personnel carriers and infantry fighting vehicles.

The exercises, called Vostok-2018, will be held in central and eastern Russia and will also include participants from the Mongolian and Chinese militaries.

The Kremlin says the drills are justified given the “aggressive and unfriendly” attitudes towards their country. Russia’s Chief of the General Staff Valery Gerasimov said they will include “massive” mock airstrikes and tests of defences against cruise missiles.

A defence source in Britain said: “We are seeing an alarming amount of military power being brought to bear around the globe by Russia.

“We consider it a worrying build-up of conventional forces and arms. It can clearly be regarded as a threat to Western democracy. A miscalculation could very easily lead to an escalation.”

While NATO has beefed up defences in Eastern Europe, the Russians have been accused of undermining international efforts for an Afghan-led peace process by inviting the Taliban to Moscow for peace talks. And they have also been accused of indirectly arming the Taliban – something they have repeatedly denied.

Defence Secretary Gavin Williamson has warned of the disruptive influence that the Russians were having on the peace process in Afghanistan. Mr Williamson says that we’re seeing a much greater interest from Russia in Afghanistan and Afghan affairs. There is ample evidence of Moscow meddling.

Mr Williamson said: “I would describe it as them wanting the NATO mission to fail. They do not want there to be seen to be the success of both the Afghan government and NATO. What it is very much designed to do is be a disruptor to other western nations which are trying to build stability in Afghanistan.”

The scale of the Vostok-2018 war games is equivalent to the forces deployed in one of the big Second World War battles. The exercises have been compared to Soviet manoeuvres in 1981, called Zapad-81, which involved simulated attacks on NATO.

President Vladimir Putin has made military modernisation, including new nuclear missiles, a priority.

The giant drill is an important show of strength by Putin, as a demonstration that – despite Western sanctions, including ones targeting his defence sector – his country remains defiant.

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