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Greece's Tsipras heads to Russia for some love by Holly Ellyatt and Geoff Cutmore CNBC, June 18 <http://www.cnbc.com/id/102768552> With Greece's relations with its European counterparts at a low ebb, Greek Prime Minister Alexis Tsipras will head to Russia on Thursday and meet President Vladimir Putin at the St. Petersburg International Economic Forum (SPIEF). Tsipras' visit comes at a crisis point for Greece, with reforms-for-rescue talks between the country and its international lenders in deadlock. He is due to meet with Russian President Vladimir Putin on Friday afternoon, the Greek government said in a statement Thursday, and ahead of that meeting will make a keynote speech at the forum. Tsipras' government has already warned it will not have the money to pay a debt of 1.5 billion euros to the International Monetary Fund (IMF) without an agreement, prompting increasing concern that Greece will default and eventually leave the euro zone. However on Thursday, Russian Deputy Finance Minister, Sergei Storchak, said Greece had not asked the Russian Finance Ministry for financial assistance, Dow Jones reported. The ministry would not comment on the remarks when contacted by CNBC. The head of the IMF, Christine Lagarde, said that Greece would be in default at the start of July if it fails to make a repayment on June 30 because there is no grace period or possibility to delay, Reuters reported. "It will be in default, it will be in arrears vis-a-vis the IMF on July 1, but I hope it is not the case, I really do," Lagarde told reporters following a meeting with the Luxembourg finance minister. Russia's Central Bank Governor Elvira Nabiullina told CNBC Russia had considered the implications of such a scenario – for example, its impact on money flow in Europe – and was worried. "We do consider that scenario as one of possible risks which would increase turbulence in the financial markets in the European market, bearing in mind the fact the European Union is one of [our] major trading partners, and we are definitely worried by it," she told CNBC this week. Voicing the fears of European politicians who are keen to avoid contagion spreading throughout the euro zone, Nabiullina said a "Grexit" was a possibility – and Russia too could be affected. "There is a possibility of this kind of sentiment becoming stronger, which could reduce the rate of the development of the recovery of the European economy, and bring down the demand for our products," she said There is speculation that talks between the leaders will focus on the proposed construction of a gas pipeline through Greece and the country's potential participation in a new BRICS development bank, set up by Brazil, Russia, India, China and South Africa with a reserve fund for emergency situations. Tsipras is travelling to Russia with the Greek economy minister and alternate finance minister, among others, plus some business leaders, the Greek government said. Russia invited cash-strapped Greece to participate in the new bank in May. The Greek and Russian governments' warming relations have not come as a surprise to some Europe-watchers. "Ever since he became premier, Mr Tsipras has gone to great lengths to accentuate Greece's cultural and historical ties to Russia as part of his efforts to reorient Greece's economic and foreign policies away from conventional euro zone-centric ones," Nicholas Spiro, managing director of Spiro Sovereign Strategy, told CNBC Thursday. "He's playing the nationalist card and cosying up to Russia is part of his brinkmanship with Greece's creditors. This is music to the ears of Mr Putin who already has good relations with a number of EU leaders, notably Hungary's, and wants to showcase Russian influence in Europe," he said. "All this adds to fears that if Greece exits the euro zone, Russia is waiting in the wings." Russia won’t comment on possible aid to Greece by Nataliya Vasilyeva Associated Press, Salt Lake Tribune, June 18 <http://www.sltrib.com/home/2640327-155/russia-wont-comment-on-possible-aid> . . . Tsipras is traveling with four cabinet ministers, arrived Thursday and is due to stay in St. Petersburg until late Friday, when he will meet Putin. Asked by The Associated Press whether Russia is going to offer Greece money, Deputy Prime Minister Arkady Dvorkovich said he "cannot comment on specific decisions." The Greek economy has also been hit by Russia's EU food imports ban, depriving it of millions of euros in agricultural exports, and although the Kremlin has indicated it could relax the restrictions on Greece, there has been no decision to do so. Speaking on the sidelines of an investment forum in St. Petersburg, Dvorkovich said it is not surprising that the new Greek leader should visit Russia so often because Moscow and Athens "have both good political dialogue and specific investment projects and trade opportunities." But he added that the visit could be interpreted as a message to Greece's creditors in Europe. "For Europe it's also a signal from the Greek government that they are open to cooperation with any party," he said. Greece's sudden rapprochement with Russia has given rise to speculation that Moscow might be using Greece and other countries to get a voice on its side when the EU meets to discuss whether to prolong the sanctions against Russia. Dvorkovich said he hopes that Greece, Hungary, the Czech Republic and other nations could help Russia in the EU as he expects they "will be pushing politicians on both sides to gradually lift the sanctions." When Tsipras visited Moscow in April for talks with Putin, Russia wouldn't offer any direct financial aid and the talks focused on joint economic projects, including a Greek extension of the prospective gas pipeline that would come from Russia to Turkey. Putin said then that the pipeline would allow Greece to become a major gas transit hub, helping it increase its clout and earn it hundreds of millions of dollars in transit payments. Russia's Energy Minister Alexander Novak said Thursday in televised remarks that he and his Greek counterpart will sign a memorandum Friday on building the pipeline. Tsipras to discuss gas, BRICS bank in Russia I Kathimerini, Athens, June 17 <http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_1_17/06/2015_551143> Greek Prime Minister Alexis Tsipras will meet Russian President Vladimir Putin on Friday in Saint Petersburg where the pair are expected to affirm plans to see the construction of “Greek Stream,” an extension to the pipeline that would supply natural gas to Europe. The Russian leader is also expected to invite Greece to participate in a new development bank for BRICS countries which also includes Brazil, India, China and South Africa. Greece has already backed the EU’s decision to extend sanctions on Russia over the Ukraine crisis, but this does not seem to have bothered Moscow. According to sources, Athens is mulling the idea of paying a token amount to the new bank before the debt-wracked country can receive financing for infrastructure projects. On top of the economic benefits, the move would also tap into the desire of the leftist-led government to find alternative sources of financing. It is not clear what commitments Greece would have to make in order to borrow from the Shanghai-based bank, whose establishment is seen by observers as a move to challenge the global economic governance dominated by the International Monetary Fund and the World Bank. Meanwhile, the TurkStream pipeline project is also uncertain. Turkey, Serbia and Former Yugoslav Republic of Macedonia (FYROM) have not yet taken a clear stand on the issue. The same applies to the European Commission. Greece and Russia to Sign Political Deal on TurkStream Extension by A. Makris The Greek Reporter, June 16 [Sputnik news] <http://greece.greekreporter.com/2015/06/16/greece-and-russia-to-sign-political-deal-on-turkstream-extension> A Greek delegation intends to sign a political Russia-Greece agreement on the support of a pipeline with Russian gas on the territory of Greece during the St. Petersburg International Economic Forum, Greek Energy Minister Panagiotis Lafazanis said. . . . The proposed TurkStream project is a 1,090-kilometer (677-mile) Russian-Turkish natural gas pipeline running via the Black Sea. Its annual capacity after the anticipated December 2016 date of operability is estimated at 63 billion cubic meters. Up to 47 billion cubic meters are expected to reach the planned Turkish-Greek gas hub near the Ipsala border checkpoint. European Union member-states are then free to implement their own transport capacity for further gas distribution across their territory. Athens hopes the project, agreed to in December 2014, will allow it to purchase gas at lower prices and benefit from transit revenues. Greek energy minister rejects US concerns over TurkStream I Kathimerini, Athens, June 5 <http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_1_05/06/2015_550741> Energy Minister Panayiotis Lafazanis on Friday hit back angrily at comments by US energy official Amos Hochstein maintaining that the potential extension of Russia’s as yet unbuilt TurkStream gas pipeline through Greece could create a “problem area.” “Greece is not a plot of land and cannot be blackmailed, nor does it believe that its energy-related choices could become any kind of problem area,” he said. On the contrary, he said, “the decision to support a pipeline with Russian gas on Greek territory is beneficial for the nation and the economy.” . . . Greece Breaks US Heart, to Sign Deal on Russian Pipeline MINA News, Macedonia, June 2 <http://macedoniaonline.eu/content/view/27511/46> Greece has received what The New York Times recently described as “dueling sales pitches” on two proposed natural gas pipelines. One proposal comes from Russia, where the Kremlin is keen to use the tumultuous negotiations between Athens and creditors to advance Moscow’s energy and geopolitical interests. Moscow hopes to essentially buy Athens’ participation in the Turkish Stream pipeline which, as a reminder, will allow Russia to bypass Bulgaria by piping gas through Turkey, then through Greece, Macedonia, Serbia, and Hungary straight to the Austrian central hub. Some have suggested over the past several months that Athens may be able to secure an advance on its potential profits from the pipeline, thus giving Greece some much needed breathing room in what have a series of suffocating negotiations with the troika. This would suit Vladimir Putin just fine as it would allow him to solve the South Stream ‘problem’ while securing a Greco-Russo economic and energy alliance just as Europe debates how to proceed with regard to the conflict in Ukraine. For its part, Europe has responded by filing antitrust charges against Gazprom. The US proposal involves The Southern Gas Corridor, a project aimed at “improving the diversity of the EU’s energy supply” — in other words, it’s an attempt to help break Gazprom’s stranglehold. Essentially, the corridor will allow the EU to tap into Caspian gas via a series of connecting pipelines running from Azerbaijan to Italy. Early last month, US State Department envoy Amos Hochstein met with Greek foreign minister Nikos Kotzias to make the pitch and told Greece that participating in The Southern Gas Corridor would help make the country attractive to investors again. It appears Moscow may have made the better sales pitch (or perhaps it was the fact that Russia lobbied Athens far more aggressively) because Greece is set to sign an MOU for the Greek portion of The Turkish Stream pipeline in June. RT has more: Greece plans to sign a document on political support for Gazprom’s Turkish Stream project at the St. Petersburg International Economic Forum in June, its Energy Minister announced on Monday. The country plans to invest $2 billion in its construction. A memorandum on political support for the gas pipeline project will be prepared by June 18-20, when the International Economic Forum (SPIEF-2015) will be held in Russia’s St. Petersburg, Greek Energy Minister Panagiotis Lafazanis announced on Monday… Greece’s part of the pipeline, which will be delivering Russia’s gas on from the Turkish border, will cost some $2 billion, Lafazanis said in an interview with the Rossiya24 channel. The minister said that a Greek state company will be involved in the project, adding that there has been “big interest” from many companies wishing to take part in the construction and future operation of the pipeline… The new pipeline, which Gazprom plans to build from Turkey to the border with Greece, will be part of the Turkish Stream project aimed at delivering Russian gas to Europe without the participation of Ukraine. Russia intends to completely abandon its gas supplies through Ukraine by 2019. The EU would construct the pipelines leading further on from Greece. According to Lafazanis, the Western-backed proposal and The Turkish Stream are not competitors and Greece will, if it can, participate in both initiatives. Via The Greek Reporter: [Lafazania said] “We do not consider them to be rivals. On the contrary, we think they both contribute to energy supply of European countries. That’s why it is odd that the Russian project is raising concern and doubts in the US and the European Union. We will not submit to the interests and wishes of any third country. Greece is nobody’s property. We move based on the interests of our people and our national interests. The country must become a development hub for Europe’s energy supply." The US and Europe of course do not see things that way as indicated by the following quote from The US Embassy in Athens: "The United States is concerned that Greek consideration of an extension of a 'Turkstream' pipeline across Greece will not increase energy diversification, may be of concern to EU competition authorities, and is not a long-term solution to Greece’s energy needs." Vladimir Putin sees it a bit differently: "Just because Greece is debt-ridden, this does not mean it is bound hand and foot, and has no independent foreign policy." Greek Energy Min. Lafazanis: Greece Will Probably Submit Request to Participate in BRICS Bank by A. Makris The Greek Reporter, May 30 <http://greece.greekreporter.com/2015/05/30/greek-energy-min-lafazanis-greece-will-probably-submit-request-to-participate-in-brics-bank> Greece is preparing and will probably submit a request to participate in the new development bank for BRICS countries and has secured Russia’s support on the issue, Productive Reconstruction, Greek Environment and Energy Minister Panagiotis Lafazanis told ANA-MPA. “During my meeting with Russian Deputy Finance Minister Sergey Storchak, we secured the decisive Russian support to Greece’s request for participation in the new development bank of BRICS countries. The relevant request for Greece’s participation…will be symbolic and will be paid in installments, while right after operations begin, it will be able to accept financial support,” the minister said. Lafazanis added that technical details were also discussed on how to submit the request so that it will be accepted after discussions within the Greek government conclude. In addition, he noted that he also discussed the credit facility that will be provided by Russian banks to the Greek company which will undertake the construction of the new gas pipeline which will cross Greece. “Repayment of the Russian loan will be achieved by the profits made through the operation of the pipeline and this facility is not related to loans or economic assistance between states,” he said. (source: ana-mpa) Greece to Escape West’s Chokehold by Joining BRICS Bank - European Lawmaker Sputnik News, Moscow, May 18 <http://sputniknews.com/europe/20150518/1022287013.html> *Last week, Russia invited Greece to become the sixth member of the BRICS New Development Bank.* [Earlier this week, Russian Deputy Finance Minister Sergei Storchak invited Greece to join the BRICS New Development Bank as its sixth member. The agreement on the bank's creation was signed in mid-2014 and established a $100-billion reserve currency pool to maintain the financial stability of BRICS member states.] Greece could climb out of the debt hole created for it by International Monetary Fund (IMF) and the World Bank if it accepts Russia's proposal to join the BRICS New Development Bank (NDB), Sofia Sakorafa, a member of the European Parliament from the Greek ruling Syriza party, told Sputnik on Monday. Five major developing economies — Brazil, Russia, India, China and South Africa — signed an agreement to establish the NDB at a summit in Fortaleza, Brazil in July 2014. The bank is expected to become an alternative to Western-dominated financial institutions and will focus mainly on funding infrastructure projects. She stressed, that in order to make this attempt successful, the NDB must stick to its commitment to economic development instead of trying to strangle the Greek people as their Western creditors are currently doing. "The participation of Greece, therefore, in the new development bank of BRICS, with the objective to finance development projects, is an interesting alternative option that should be evaluated with great seriousness by the Greek government," the Greek Member of the European Parliament stressed. Earlier, a source in the Greek government told Sputnik that Prime Minister Tsipras would have an opportunity to discuss Athens' accession to the bank with the leaders of the BRICS group in St. Petersburg during an economic forum to be held there on June 18-20. Russia Reportedly Proposes Co-Manufacturing Kalashnikov Rifles in Greece by Philip Chrysopoulos The Greek Reporter, May 31 <http://greece.greekreporter.com/2015/05/31/russia-reportedly-proposes-co-manufacturing-kalashnikov-rifles-in-greece> Russia has sent an official proposal to the Greek Defense Ministry to co-manufacture Kalashnikov rifles in Greece, according to an onalert.gr report. The verbal proposal was made during the recent visit of Greek Defense Minister Panos Kammenos in Moscow, where he discussed several defense issues with the Russian side. According to the report, Moscow expects a formal reply by August. Allegedly, the first time such proposal was made to Greece was in 2006, when Russia had suggested the establishment of weapons production factories in Greece for exports to third countries. According to the report, Russian officials requested to visit the Hellenic Defense Systems (EAS) facilities in Aigio, Peloponnese. They found that the manufacturing facilities are efficient and reiterated the proposal. An official letter to the General Directorate for Defense Investment and Armaments (GDDIA) followed, according to the report, containing a detailed plan for the co-manufacturing of Kalashnikov rifles at the EAS factory. However, there are some substantial hurdles that will make such a deal rather difficult, onalert.gr said. First and foremost is Greece’s alliance with NATO and the United States. It will be hard for allies to accept such an agreement. Secondly, co-manufacturing Kalashnikov might mean that the Greek army will have to replace the existing G3 rifles that are designed in Germany. This will not go very well with Greece’s European allies and creditors. Thirdly, the EAS staff have been drastically reduced since the onset of the economic crisis, while there are rumors that the manufacturing facilities will be shut down altogether. However, GDDIA officials said that even the existing staff are sufficient for the arms’ co-production. Russia has given Greece enough time to respond to the proposal. The Greek government has to make a decision until August. According to the report, what might be a determining factor is that Kalashnikov rifles were given to the Greek Navy Seals to test and their response was enthusiastic. _________________________________________________________ Full posting guidelines at: http://www.marxmail.org/sub.htm Set your options at: http://lists.csbs.utah.edu/options/marxism/archive%40mail-archive.com
