The world of international finance is very ambitious. In order to expand its power and influence to maximum extent, anyone laying in the way needs to be “neutralized”. After attempts with Serbia, Kyrgyzstan, Uzbekistan, Iraq and others is now Iran the focal point of this agenda. The trick is really simple. Either the CIA and adjacent organizations instigates “spontaneous protest” with crates of dollars, or it simply bombards the country and its population.

 

In the Middle East are a few countries not submitting to this greed of international finance. Palestine and Syria are examples beside Iran.

 

The surge and growth of BRIC-nations (Brazil, Russia, India and China) are a constant hindrance to the American upper class. A great deal of oil- and gas reserves are situated in nations the USA concerns as “evil”.

 

The demand for oil and gas increases worldwide. The energy production concentrates increasingly in nations with large reserves such as Russia, the Middle East, Iran, Venezuela etc. The largest world economies are increasingly dependent of energy supply from these nations. The dependence of such import will increase to over 80% for the USA, the EU, China and India. Like the other energy consumers such as South Korea and Japan, European nations (excluding Russia) will become entirely dependent of import. This meaning: The import dependence of 80% will in all likelihood increase to somewhere closer to 100%. This places European nations in an increasingly weak position. In the face of this evolution, some consistent measures would be welcome. Instead, Europe remains passive, which demonstrates the paralyzing effect the EU has on the continent.

 

There are a few important geographic aspects to keep into account: Europe as a continent (the land we inhabit); energy suppliers; its corridors (transport of energy). Our most important concern: Who delivers us the required energy and which routes does it take? The European nations are obligated to themselves to think of their own needs. Right now, this is not the case.

 

Iran and the Strait of Hormuz

 

Iran, like Russia, is an important supplier of energy. However, the country is surrounded by US-friendly governments and the resulting military bases such as in Saudi Arabia, Iraq (where the triggered chaos is now being abused by those who pulled the trigger), Pakistan and the hotbed Afghanistan. Not far away we find the warring nation of Israel.

 

Important for oil export is the Strait of Hormuz. This 21 kilometer wide water corridor connects the Persian Gulf (situated by the south coast of Iran) and the Indian Ocean. At the other side of the Persian Gulf lay Saudi-Arabia, the UA Emirates and further down, by the Gulf of Oman, we find the Sultanate of Oman. The Strait of Hormuz is one of the busiest waterways of the world. On a daily basis, 17 million barrels of oil and 31 million tons of liquid gas passes through. The production volumes of the USA, Europe, Russia and Asia will decrease over the years, meaning an increase in importance for production in the Middle East. European nations ought to prepare for this shifting situation. The International Energy Agency (IEA) predicts a doubling in the Strait of Hormuz traffic, up to 35 million barrels of oil a day. The Strait of Hormuz is well on its way to increased importance as the energy corridor of the world. Keeping this into account, one becomes clear of why the USA already has such great influence in the region and holds a tight focus on “troublesome” Iran. The USA imports 2,5 million barrels of Hormuz oil on a daily basis. The region is for the large part under US-influence. Iran is thus considered as a “danger”. Iran holds a perfect strategic position to threaten the passing through of oil and gas. Iranian leaders have threatened to block the oil transport should the country ever be attacked. Israel would take a great responsibility on its shoulders, should it ever attack Iran itself or leave it to US-forces (and the Israel lobbies are more than capable of steering the country in such a direction). The energy price increase resulting from such a catastrophe would not be beneficial to the European consumer in any way.

 

The Chinese too consider the American dominance over the Strait as a possible threat. Because of this, contracts have already been signed with Abu Dhabi in order to bypass the Strait of Hormuz. The main contractors are two daughter firms of the state-owned CNPC.

 

The Ukraine and the Black Sea

 

Gas reserves in Europe decrease considerably while demand increases. The import of gas to Europe goes predominantly through pipelines. Southern Europe is supplied by North Africa, Trinidad-Tobago and the Middle East. North-Western Europe is supplied with gas through Norway and Russia. Eastern Europe is completely dependent from Russian supply.

 

Europe already has a 25% dependency of Russian gas. 80% Enters through the Ukrainian corridor and 20% through Belarus. The large dependence of the Ukrainian corridor has already caused great hindrance to the European nations and Russia because the country let rot the pipelines during the pro-Western power struggle. Because of this, the throughput of gas has been decreasing on a yearly basis. The profits from the transit fees have for the better part disappeared in deep pockets, while virtually no maintenance was carried out. It is in the importance of all parties (Western Europe, the Ukraine, Russia) that the new government under Yanukovych restores order and fights corruption, and contributes to better relations between Russia, the Ukraine and European nations.

 

The European nations and Russia up until 2004 were in agreement there should be a Baltic pipeline to Germany. This would simply run through the Baltic Sea. Europe had a sudden change of heart, supposedly because Poland and the Baltic states were against the projects. Poland and the Baltic states have made a hobby out of “pestering Russia”. They would like to keep this up, even if it goes at the expense of a much needed economic vein. They also claim to fear missing out on the transit income. An incomprehensible anti-Russian sentiment for nations entirely dependent on Russian energy.

In order to bypass the problematic Ukrainian corridor, Russians and Italians have been working on a new route via the Black Sea and Turkey. The Black Sea is very important to Russia. A great deal of oil from the Russian mainland and the Caspian Sea passes through there. This pipeline would be a great competitor for the Nabucco-pipeline, once considered as a way to transport Iranian gas to Europe.

 

Despite this pipeline connecting Iran and Azerbaijan on one hand and Western Europe on the other, The USA was in active support of the project. One wonders if a more fitting example of US-meddling in continental affairs can be thought of. However, considering Iran doesn’t hold a reputation for pro-Atlantic sentiment, the plans were expanded with supply for Caspian states, such as Turkmenistan and Azerbaijan. However, gas from Turkmenistan is mostly imported by Russians. Most is used by the Russian market, a smaller part is passed on to other parts of Europe. European nations thus battle in two blocks – Russia against the rest of Europe – because of Caspian energy. Meanwhile, China has also made clear of their geopolitical interests and plans in the Caspian region.

 

The Xingjian corridor

 

The economic elite has shown its interest in Central Asia. Japan had strong ambitions in the region after the fall of the Soviet Union, ambitions which it had to let go because of political hindrance. China’s demand for an increasing amount of energy has led to a stop of Chinese energy transport to Japan.

 

Central Asian resources contribute to the further development of East Asia. Chinese energy companies contribute to the further development of East Asia. Chinese energy companies attempt to integrate the energy rich Xingjian region, together with its neighboring regions. Ever since 2006, oil has been flowing from Kazakhstan to China. These pipelines will be expanded up to the oil rich Caspian Sea region. China in the meantime, negotiated contracts with Uzbekistan, Turkmenistan and Kazakhstan. On top of that, Russia has a project to transport gas from Western Siberia over the Altai mountains up to Xingjian. Russia has always preferred doing business with Europe, but the EU has been dismissive under American pressure. Russia, not being as obedient, decided to look to the East instead: Central Asia and China. This scenario is very consistent with American interests: keeping Russia away from Europe and have it fall back to Asia.

 

Although Xingjian produces 25 million tons of oil and 16 million tons of gas, this does not suffice for the energy dependent Chinese coast. An energy corridor to Central Asia and Russia, Xingjian, situated in Northern China, is of great importance. The border with Pakistan has also gained increased importance. China has invested billions in the Pakistani harbor of Gwadar, situated at the Arab Sea. Who analyses the charts will see the harbor is at a mere 400 kilometers from the Strait of Hormuz. The harbor offers access to the Persian Gulf and the Oman Sea. Middle Eastern and African energy transport are considerably shorter thanks to this strategic area. Right now, a lot is still imported through the Strait of Malacca, The Strait of Malacca is the most important route between the Indian Ocean and the Pacific Ocean, here, all important Asian economies (India, China, Japan, South Korea and Taiwan) are interconnected. On a yearly basis, over 50.000 ships pass through. One can easily understand China will want to shorten this busy and lengthy route. On top of that, the Strait is not sufficiently deep – a mere 25 meters – to allow heavy oil tankers.

 

The Panama Canal

 

The Panama Canal is of great importance, mainly put in place to support the US economy. It was established in 1914 to cut the route between New York and San Francisco by half. Today, the Panama Canal forms an important energy corridor between South America and East Asia. Hugo Chavez, president of Venezuela and a staunch adversary of the USA, considers the Canal as primordial in the development of Venezuela's energy sector. Venezuela holds a good deal of raw oil and potentially many future oil fields. It could turn out to becoming the world's most important oil supplier. Chavez had all the right to nationalize the entire energy sector. The profits benefit everyone this way, instead of creating oligarchies such as in the USA and Russia. Chinese and Russian companies are taking the contracts once reserved for the USA. China is already importing many thousands of tons of oil from Venezuela and intends to increase this over time. Japan too is looking at Venezuela's oil. And all this South American oil is transported via the Panama Canal. In 1999, the USA transferred ownership of the Canal over to Panama. The company Hutchinson-Whampoa from the Hong Kong-Chinese oligarch Li Ka-Shing acquired a controlling interest over the Canal's governing entity, more specifically control over the two entrances. This way, Chinese interests are secured.

 

The USA is a dominating factor in the world. Yet competition is growing. Russia keeps increasing its governance efficiency over energy production and transit zones. China and India are knocking on the door to take the champion's belt.

 

Conclusion

 

China has understood what European countries are oblivious to: acting in your own interest. Iran is the only country of significance in the Caspian region, not dominated by the USA. The Chinese realize this and act on it. The passive European block has a choice: we can keep shirking up the back of the USA, which has been of occupational influence for 65 years, which has shamelessly violated territorial sovereignty in former Yugoslavia and which wants to serve Turkey's market interests at the cost of the European market's integrity. We can keep this up, or we can establish ties with nations that respect national sovereignty, prosperity and freedom, such as Russia, Iran and Venezuela. On top of that, should there ever be the need for a different migration policy, establishing good relationships with certain nations is always a good idea.

 

The European countries have the possibility to play a role of significance in the world of tomorrow. To play a role of significance, it should first and foremost get a decent foothold. The European Union is a construction gone completely awry and is best done away with. Instead, a coalition of voluntary, mutual interest should be established. The EU is a tool for NATO-interests, which in turn is the military wing of a world of international finance. The NATO doesn't fight to bring justice - in that case it should have been focusing on Israel for quite some time now - but instead it safeguards capital interests of a dwindling economic oligarchy.

 

Belgium and the Netherlands are completely import dependent concerning primary needs: food and energy. Our agriculture has been pushed aside by genetically modified import. Energy from the few fossil resources we had are tapped out. The European policy has tied us to the goodwill of the USA. The USA however has a political agenda of its own: to weaken Europe as much as possible. Europe is still potentially dangerous competition to them, despite everything.

 

Awaiting the deconstruction of the European Union (as an institute) and the establishment of a more loose cooperative coalition, North-Western Europe can take a leading role by stepping out before the storm hits. We can be the first to start ties with Russia, Iran, Venezuela and other nations and areas of current and future geopolitical importance.

 

 

Kris Roman

Coordinator N-SA Foreign Relations

Coordinator N-SA Geopolitical Thinktank "Euro-Rus"