“Circumcisiing” of Khodorkovsky

As soon as the MASS MEDIA released news on arising problems with YUKOS, the US Administration displayed keen interest in occurring events.

According to “The Kommersant” newspaper “Once the news was out on Lebedev’s detention, American businessmen anxiously attacked Michael Khodorkovsky with questions during the US Ambassador reception in Spaso-House” (№ 115 from July, 4, 2003, “Agenda” article).

Stephen Kohen, professor of the New York University has uncovered veiled reason behind close American interest in his comment to “The Independent Newspaper” (№ 133, July 4, 2003 “Russia Deprives Itself Investments” article). Although Kohen has tried to screen the US Administration from its involvement in these matters, yet he was compelled to comment on this event: “I do not know whether Khodorkovsky has serious intentions of selling YUKOS, but it doesn’t matter, for Vladimir Putin will never allow it. It is impossible for America to establish control over the largest Russian petroleum company. It will be a catastrophe”.

On July 10^th, 2003 the US Administration concerns with YUKOS affairs have elevated to the diplomatic level. That day the US Embassy in Moscow released a statement, which read: “We know about last week arrest of Russian businessman Platon Lebedev in Moscow on accusations of plunder state properties within the framework of a general investigation of YUKOS activity. We are closely tracing the situation, and our interest, as always is focused on observance of legitimacy. We do not know all the circumstances of this affair, but we hope, that the law will not be applied selectively according to political favors”. However, “The Independent newspaper” certifies (№ 139-140 July 11-12, 2003 “YUKOS is still in Dispute” Eugeny Verlin, Alexey Efimov and Ivan Sas) that Embassy’s employees could not remember any other case of expressing concerns by the American side regarding the “dispute between those in power” in Russia. Authors of the article refer to their anonymous source in US embassy that “has noted, first of all, the symbiotic character of the Russian Justice ‘selectivity’. ‘An image and rating of a leading Russian petroleum company is damaged’, — told a source on conditions of anonymity. An obvious unwillingness to comment on an overly vast verbal release by their embassy on the part of the American diplomats speaks of, probably, their fear to show excessive ‘interest’. As it is, this ‘commitment’ is way too noticeable on the American part: an unprecedented use of well known US megaphones as ‘The Washington Post’ and “The Wall Street Journal” for YUKOS’ protection against the ‘state arbitrariness’ (WSJ) speaks for itself while Western European, Japanese, and Canadian governments and businesses remain neutral. Ironically such development was forecasted in our newspaper “The Measure for Measure” in 2002 article by Shmykova S.N. “I have caused you…” (‘The Measure for Measure’ August, №30 (76) 2002), which stated that petroleum company JUKOS aspiring to reduce US dependence on oil shipments from Near East had launched its oil shipment without getting a full settlement of the oil logistics between Russia and USA. As first tank ship with oil arrived in USA on July 4, 2002 — on the Independence Day, instead of gratitude and money from the US Administration JUKOS received arrest of the proceeds for the delivered petroleum and criminal case concerning the company. In few days JUKOS got problems with the Russian law-enforcement agencies.

This was a warning from the Global Predictor (a global financial mafia) intended to show silly Russian ‘elite’ that it could be punished for its attempt of interference in global affairs, especially when its intent was to service further US freeloader appetites because nobody other than the Global Predictor had the right to distribute Earth’s limited natural resources. Under the plans of the Global Predictor it is time for USA to ‘be omitted’. Following such logic, the Global Predictor is not supporting anyone’s interests, but the interest of its own: simply GP doesn’t want to lose its imperious privileges of having the authority to distribute natural resources between nations of the planet which it has held throughout the centuries while these precious resources are vanishing… According to British Petroleum Corporation (BP) universal reserves of petroleum constitute about 143 billion tons, 36 of which are located in Saudi Arabia. Petroleum consumption for the last 2001 has constituted 3,5 billion tons. According to Association on study of a conjuncture of petroleum demand (ASPO) increase in petroleum consumption by developed and developing countries by present rates in 10 years will burst into a full-scale crisis caused by excess of demand for petroleum over its supply. Moreover, deficiency of petroleum in industrially developed countries may cause global confrontation. ‘The collapse may occur in 10-15 years’, concludes ASPO Chief executive, professors K’el’ Aleklett in his interview published in ‘The Financial News’ № 656 on 15.08.02. We are witnessing an emerging state of this collapse. For instance, the US objective for the war against Iraq is to ensure petroleum supply for many years ahead. However, pursuing its narrow “national” interests, US Administration interferes with the global politics of GP, creating a situation, which puts all mankind in danger of extinction as a result of a world war for natural resources of the planet. Such outcome is unacceptable for GP under any conditions because it has its own agenda… The Global Predictor views US nation the same way it views people of Afghanistan or a nomadic tribe because all nations of the planet according to its agenda are only means for achieving its purposes with strictly divided roles and responsibilities. Thus, regardless of better standards of living of some nations and disastrous of the others, neither have a right to choose their own destiny under GP plans. For instance, according to GP agenda the US has already fulfilled its attributed role as an international gendarme at a particular period in history and now should be executed the same way the USSR was brought to a collapse.

As a result, it was impossible for the US to put together a successful anti-Iraq coalition, not to mention to accomplish an oil extraction and export because of continuing rebel war. Increasing international isolation of the US, continual falling of the US dollar and, as a consequence, obvious loss of a leading position in the world by the US Administration is indicative of this tendency. From examples listed above it follows that Russian “elite” jeopardizes itself by siding up with US interests and entering in an open confrontation with GP that has facilitated the establishment of the Russian ‘elite’ in the first place.

Khodorkovsky and Co didn’t take note of the warning given by GP last year and continued to work within the framework of US interests. Having estimated that last year’s oil tanker route from Novorossisk to Houston appeared to be too costly, Khodorkovsky and Co came up with a plan for constructing a private oil pipeline, which would connect oil-extracting enterprises of Western Siberia to Murmansk port.

Figuratively speaking, Khodorkovsky anxious aspiration to become a more devoted Catholic than the Pope and a more patriotic American than the American Government itself in his plans to provide US with Russian petroleum has driven him to enter in open confrontation with one of the GP main instruments — the International Monetary Fund. IMF Analytics have recommended the Russian Government to increase tax rates on the resource exporters during the time of high world prices on oil. For Russian Administration it is a very painful problem, as owners of the petroleum companies practically pay nothing in the budget of the country, extorting petroleum abroad.

For example, according to SIBNEFT petroleum company report the taxation rate it falls under doesn’t not exceed 13%, which is almost twice as low as what was established by the legislation as a 24% taxation rate. Nevertheless, it is impossible to accuse SIBNEFT of tax evasion as it absolutely legally uses privileges it receives form the Chukotka region where the Governor, Roman Abramovich, is one of main founders of the company. However, what concerns Khodorkovsky the most is, in case of implementation of the IMF suggestion by the Russian Government, it means automatic cancellation of petroleum shipments by YUKOS to the US.

As the RBK news agency points out on February 05, 2003, “YUKOS President Michael Khodorkovsky has sent a letter to the main representative of IMF Moscow division, Matias Thompson, in which he stated the arguments against the strategy of further tax increase on oil exporting. In this letter it is stated that the experts have not consulted with the key players in the Russian oil market. In Khodorkovsky’s opinion, there are many factors, which were simply not taken into calculation by the expert. Businessman believes that increase in taxation of natural resources companies can create complexities not only for the companies but also could affect further relations between Russia and US.

In particular, Khodorkovsky notices, that after events of September 11, the key task of the US foreign policy became searching for petroleum sources other than restless Middle East region … In this context, Russia could have taken the role of a major petroleum supplier. Indeed to analysts it seems to be a real possibility, taking into account some of the trial oil-tanker shipments to the US by YUKOS along with its intention in coalition with other companies to create a fuel terminal of a global scale in Murmansk. Thus, Khodorkovsky warns that taxation increase will result in investments decline in petroleum business and will lead to decrease of the overall extraction of raw resources, which in turn, will threaten the prospect of petroleum shipment to USA.” Without receiving an answer from IMF, Khodorkovsky has initiated realization of his plans. As ITAR-TASS informs, at a conference on an investment climate in Russia on February 26, 2003, Khodorkovsky has declared, that “Russia can hold up to 15 percents of the American petroleum import market that is to deliver from 1 up to 2 million barrels per day… while oil extraction in Russia at 9-10 million barrels per day is ensured by reserves for 30 years ahead. It is planned for 2005-2007 depending on the world oil prices to export about 6-7 million barrels a day … He insists that Murmansk port could become the most perspective direction of Russian petroleum export to USA because the cost of transportation will add up to about 8 dollars per barrel, which is comparable to deliveries of petroleum from Near East”.

Apparently Khodorkovsky plans to export about 7/10 of oil to the US! And what is left for domestic consumption while there is still oil export to other countries? Khodorkovsky has revealed no less grandiose plans for exporting Russian gas as well. And all this petroleum Khodorkovsky plans to use for servicing the US fuel needs! Such scenario is unacceptable neither for GP and nor for Putin who is mainly concerned with Russia’s future. Therefore, Khodorkovsky and Co has no chance out of a million of avoiding painful “circumcision” procedure, that is, of course, if they don’t reconsider their outlook on what is going on in the world.