How the EU Funds Putin's War

A recent think tank study by CREA ( Centre For Research on Energy and Clean Air) reveals that the Czech Republic, far from aiding the Ukraine in its fight against Putin, is arming the Russian Federation. This reveals the Janus faced approach of Europe in general, and also Britain, with one economic foot in Europe and one in alliance with Russia.

The report entitled 'Tapping the Loophole' shows how some European states are abusing the exemption given to them following the EU's ban from importing oil and petroleum products. The Czech Republic, Slovakia and Hungary are the three offenders, benefiting their own industries at the cost of thousands of lives lost in Ukraine. Rather than seeking the agreed alternative sources of fuel, the Czech Republic has doubled down in mendacity. Imports rose to 60% of all Czech imports in 2023, an increase of 56% from 2022. The Czech Republic has spent a whopping $7.62 billion on Russian oil and gas since the invasion of Ukraine began. Aid given to Ukraine was a mere 1.29 billion euros. The report says that 'the Czech Republic had 'ample alternative non-Russian supply options'. There are alternative pipeline sources; one in Italy (Transalpine Pipeline) and another via Hungary (non-Russian crude oil via the Adria pipe). The report adds that the 'Czech Republic does not need to import any Russian pipeline gas to maintain the security of its supply...it can import enough gas from Norway via the pipeline routes in Germany'. The upshot of the report is to persuade the EU to cancel the exemption of dealing with Putin.

This softly softly approach to the Russians means that there is no real pressure on Putin to end the war. Strategic, if small, advances in East Ukraine mean Russia is in no hurry to consider peace. Trump has been given a lesson in 'realpolitik' by Putin and Lavrov. The Russians hold most of the cards, and the Czech Republic has given them a 'full house'. It appears like a vision from Kafka's 'The Castle' when the land surveyor, 'K', turns up to work in a village of labyrinthine bureaucracy, unable to find method or answers. The Czech Republic plays this ambivalent role well in the modern period; at once wanting to be 'part of Europe' but with a large cloud from the past hanging over Prague, with thundery outbursts. President Pavel was a member of the Communist Party before conveniently jettisoning that position to stand for election as President. Unlike 'K', he was able to achieve his dream of working in Prague Castle.

The sanctions hypocrisy is not exclusive to The Czech Republic. Whilst the talk is 'gung ho' vis a vis the Russian threat, the reality is trading crude and breaking the 60$ cap on Russian oil. British tankers are routinely breaking the price cap according to a new report:

'Between October and December 2023, no shipments of Russian crude oil departing from the port of Novorossiysk were traded below the price cap. In this same period, 8 of 26 shipments of Urals crude from the port were covered by UK Protection & Indemnity (P&I) insurance. There is strong evidence to suggest that these tankers conducted trades that were in direct violation of the EU/G7 sanctions, trading Russian crude oil above the USD 60 per barrel price cap according to customs data.'

Britain's 77% of Russian imports come from sanctions busting countries such as India, the UAE and China. The majority is jet fuel. Generation Z, especially the European woke and travel loving class are directly funding Putin's war effort. Well done Ryan Air and Easy Jet! There is a schizophrenic dichotomy in European thinking. Foreign policy within the EU is at once 'fully behind Ukraine', but in private it is business as usual.

The new geopolitical reality is 'Geoeconomics'; the world is carved up into civilisational states where resource domination is key. The US understands this, as does China and Russia. Europe meanwhile carries on with green deals, a bloated extractive public sector class and liberal agendas which are crippling countries internally. Yet the fallout is almost perpetual war as nations scramble over resources.

The EU is allergic to reform. The nomenklatura of the member states feed from the trough of public money whilst taxing small businesses and raising the retirement age. The old communist elites have merely switched allegiance. The new class are waving rainbow flags whilst Europe crumbles without a Charlemagne or a Napoleon.