[Plantagenet]

Now its getting serious between the US, Russia and Iran

US threatens more sanctions over Russia-Iran oil swap deal

The entire "petro-ruble" idea also looks crazy for now. You cannot buy anything of significance using rubles.

You don't understand. The plan isn't for Russia to buy Iranian oil using Rubles. Russia doesn't need Iranian oil and Iran does't need rubles.

The plan is for Russia to barter goods for Iranian Oil. Iran would ship oil to Russia. Russia would sell it on the world market, circumventing the sanctions on Iran. Russia would buy things for Iran with the Iranian oil money and ship them back to Iran, while keeping a cut for itself.


And for my cut of the deal, I'll take 20% off the top

[Subjectivist]

From the Iranian point of view 80% of something i a whole lot better than 100% of nothing.

[ROCKMAN]

"Iran would ship oil to Russia." Not necessarily. The Russians just buy the title to oil sitting at the Iranian terminal. Oil has an ownership title just like your car. Then the Russians can sell the title to THEIR OIL sitting in that Iranian tank farm to, let's say, the French company Total. So Total contracts a tanker company to haul THEIR OIL from Iran to France. Or to England if Total decides to sell it to the Brits. Wire transfers of oil titles have been around for a long time. And guess what: Total can sell THEIR OIL to the Shell Norco refinery in Louisiana. After all, there is no sanction restricting the French company from selling THEIR OIL to a US refinery. But, of course, the sh*t would hit the diplomatic fan if that went down. But if the oil goes to a French tank farm, mixed with oil from Nigeria, Equatorial Guinea, etc. And then some oil is shipped from there to a US refinery...where did that oil one from? I believe the operative word is fungible.

And those sanctions about Iran's nuke program: Six world powers (the so-called P5+1 -- the United States, China, Russia, Britain, France and Germany) and Iran have reached a deal on the framework for comprehensive negotiations over Tehran's nuclear program. But as punishment for Crimea Russia has been unfriended by the rest of the P5+1 and not allowed at their last slumber party. So perhaps Russia considers their pledge is now void. The rest of the P's might not agree but what are they going to do to Russia...double unfriend them? LOL.

[AndyA]

Yep Russia has this curious view of 'deals' if you don't live up to your side, they wont live up to theirs. Makes sense in a world where a coup is legit and a referendum is unacceptable.

[penury]

What I find fascinating is: On 4 April the State Department announces they are missing 6 Billion dollars. Anyone ask Victoria Nuland where it went? hen today our President announces that if Russia and Iran do barter for oil that new sanctions will be applied. Personally I think the sanction which needs to be applied is officially called impeachment.

[ROCKMAN]

Penury - I can understand DC putting out diplomatic outrage over what happens anywhere that they disagree with. But to create "sanctions" which, IMHO, most of the world views as toothless is worse then doing nothing out all. Want some meaningful sanctions: no EU country buys Russia oil, NG or manufactured items. Or at least cut back significant. The US: cut Russian imports to the US significantly. Or not allowing any Russian flag vessel into any US port. Now you're talking sanctions. Not letting a millionaire Russian by a plane ticket to NYC is a joke when compared to Russia taking control of the Crimea.

But obviously the Russians wouldn't be the only ones hurt. And then what sanctions do the Russians retaliate with? That's the problem with trying punish any country for any perceived misdeed: unless one has no dependency on that country it just leads either to ineffective actions or an escalating trade war...or worse. Sometimes when you don't have a good response to make it's better to not respond at all. But that's where our POTUS is trapped: any reaction or lack of reaction is going to draw political fire. Just one more bit of collateral damage from the partisan attitude on both sides of the aisle.

[ROCKMAN]

Russian oil firm says Asian buyers willing to use euros From: http://news.yahoo.com/russian-oil-firm- ... 00522.html

Reuters - Russian state-controlled oil producer Gazprom Neft said it had received positive responses from Asian clients about the possibility of using euros as a settlement currency instead of the dollar.
Company head Alexander Dyukov said this week Gazprom Neft had broached the idea of dropping the dollar, traditionally the currency of choice for the global energy sector, in response to a possible new round of Western sanctions over Russia's annexation of Crimea. He said the company had discussed with buyers the possibility of switching contracts to euros and that 95 percent had said they were ready to do it. Gazprom Neft ships around 30,000 barrels per day of oil eastward.

[Keith_McClary]

The Red Line and the Rat Line
Seymour M. Hersh on Obama, Erdoğan and the Syrian rebels
London Review of Books

But Erdoğan did not leave empty handed. Obama was still permitting Turkey to continue to exploit a loophole in a presidential executive order prohibiting the export of gold to Iran, part of the US sanctions regime against the country. In March 2012, responding to sanctions of Iranian banks by the EU, the SWIFT electronic payment system, which facilitates cross-border payments, expelled dozens of Iranian financial institutions, severely restricting the country’s ability to conduct international trade. The US followed with the executive order in July, but left what came to be known as a ‘golden loophole’: gold shipments to private Iranian entities could continue. Turkey is a major purchaser of Iranian oil and gas, and it took advantage of the loophole by depositing its energy payments in Turkish lira in an Iranian account in Turkey; these funds were then used to purchase Turkish gold for export to confederates in Iran. Gold to the value of $13 billion reportedly entered Iran in this way between March 2012 and July 2013.

The programme quickly became a cash cow for corrupt politicians and traders in Turkey, Iran and the United Arab Emirates. ‘The middlemen did what they always do,’ the former intelligence official said. ‘Take 15 per cent. The CIA had estimated that there was as much as two billion dollars in skim. Gold and Turkish lira were sticking to fingers.’ The illicit skimming flared into a public ‘gas for gold’ scandal in Turkey in December, and resulted in charges against two dozen people, including prominent businessmen and relatives of government officials, as well as the resignations of three ministers, one of whom called for Erdoğan to resign. The chief executive of a Turkish state-controlled bank that was in the middle of the scandal insisted that more than $4.5 million in cash found by police in shoeboxes during a search of his home was for charitable donations.