Sunday, November 19, 2023

American Jewellery store chain owners decide to give 'business ownership to employees for free’

ByAdarsh Kumar Gupta
Nov 19, 2023 06:53 PM IST

The stores of the business are located in Philadelphia and New Jersey in the United States.

Owners of a Jewellery store chain are retiring and transferring ownership of the business to their employees for free. Harvey and Maddy Rovinsky, the owners of Bernie Robbins Jewelers are passing on the baton, having dedicated more than 60 years to the business. The stores of the business are located in Philadelphia and New Jersey in the United States where they deal in diamond jewellery and products from celebrated designers.

Store of Bernie Robbins Jewelers(X(formerly Twitter))

In an interaction with Fox News Digital, Harvey talked about the decision and highlighted that they needed a path for succession.

"My wife and I are not kids anymore. We don't have any family in the business, and we kind of need a path for succession. … You know, our runway is getting shorter and if we have a problem with one of us or both of us, then the business goes away," said Harvey.

"We've been looking for a way to keep it going, to keep really great people continually employed. Many of them have been with us 30 years, 25, 20 years. So these are long-term people, they're like family," added Harvey.

Harvey highlighted that they tried to sell the business but couldn't find any suitable buyer who they could believe about continuing their legacy.

"We said, ‘You know, this has been right in front of our faces all this time. Instead of trying to find a qualified buyer, why not give it to people that are successfully running it now,’" said the owner.

"They understand our culture, they understand what we want. They've been doing it, they've been running it and we've been fortunate that money aspect was not a motivation. So we're going to continue the business with the people that know how to run it," explained Harvey.

After the transition becomes official, Harvey would continue serving as the CEO of the business.

"I'm flattered and honored that they've asked me to stay on, which I will be happy to do until I annoy them enough and they fire me," he said.



Investigators focus on 'design problem' with braking system after Chicago train crash


Federal safety officials investigating a Chicago commuter train crash that injured nearly 40 people when it slammed into snow-removal equipment are focusing on a “design problem” with its braking system

By The Associated Press
November 19, 2023,

CHICAGO -- Federal safety officials investigating a Chicago commuter train crash that injured nearly 40 people when it slammed into snow-removal equipment are focusing on a “design problem” with its braking system.

National Transportation Safety Board Chairperson Jennifer Homendy said the Chicago Transit Authority train was traveling at 26.9 mph (43.3 kilometers per mile) on Thursday when it struck the snow-removal equipment, which was on the tracks conducting training for the winter season.

She said that based on preliminary information she believes that equipment, with six CTA workers onboard, was stopped when the train crashed into it.

Homendy said NTSB's initial calculations based on the train's speed and other factors such as the number of passengers on board indicate it was designed to stop within 1,780 feet (542.5 meters) to avoid something its path. But that didn't happen, and it crashed into the snow-removal equipment.

“Our team was able to determine that it was in fact a design problem. The braking distance should have been longer,” she said Saturday during a briefing with reporters, adding that a “brand new” system on the same tracks would have had 2,745 feet (837 meters) to stop to avoid a crash.

Homendy said NTSB investigators are “very focused on the design issue and the braking and why the train didn’t stop.” She said they are also reviewing CTA’s braking algorithm to determine whether or not it is sufficient.

Investigators know the train's wheels were slipping as the conductor was braking the train prior to the impact and they have found thick, black “debris residue” on the tracks that are still being assessed, she said.

Homendy said the NTSB has determined there was nothing wrong with CTA’s signal system and how it communicated with the train, but again cautioned that is a preliminary finding that could change.

CTA data shows that during November there have been 50 other times when its trains have had to slow down due to other equipment stopped on the tracks ahead, and none of those resulted in a crash, Homendy said.

She said investigators cannot say yet whether other CTA trains might also have similar braking system issues, but she stressed that CTA’s system is safe.

“I would take the train tonight, tomorrow. I have no safety concerns about taking the train,” Homendy said, noting that 43,000 Americans die in motor vehicle crashes each year.

Homendy said Friday that the NSTB will likely need a year to 18 months to produce a final report with an analysis of what happened, conclusions and recommendations.

In Thursday's crash, the CTA train was heading south from Skokie when it rear-ended the snow-removal equipment on Chicago's North Side. Thirty-eight people were hurt; 23 were taken to area hospitals. No one suffered life-threatening injuries, officials said.
Why Americans feel gloomy about the economy despite falling inflation and low unemployment


November 19, 2023

Photo by Kindel Media on Pexels.com

WASHINGTON (AP) — Inflation has reached its lowest point in 2 1/2 years. The unemployment rate has stayed below 4% for the longest stretch since the 1960s. And the U.S. economy has repeatedly defied predictions of a coming recession. Yet according to a raft of polls and surveys, most Americans hold a glum view of the economy.

The disparity has led to befuddlement, exasperation and curiosity on social media and in opinion columns.

Last week, the government reported that consumer prices didn’t rise at all from September to October, the latest sign that inflation is steadily cooling from the heights of last year. A separate report showed that while Americans slowed their retail purchases in October from the previous month’s brisk pace, they’re still spending enough to drive economic growth.

Even so, according to a poll last month by The Associated Press-NORC Center for Public Affairs Research, about three-quarters of respondents described the economy as poor. Two-thirds said their expenses have risen. Only one-quarter said their income has.

The disconnect poses a political challenge for President Joe Biden as he gears up for his re-election campaign. Polls consistently show that most Americans disapprove of Biden’s handling of the economy.

Many factors lie behind the disconnect, but economists increasingly point to one in particular: The lingering financial and psychological effects of the worst bout of inflation in four decades. Despite the steady cooling of inflation over the past year, many goods and services are still far pricier than they were just three years ago. Inflation — the rate at which costs are increasing — is slowing. But most prices are high and still rising.

Lisa Cook, a member of the Federal Reserve’s Board of Governors, captured this dynamic in recent remarks at Duke University.

“Most Americans,” Cook said, “are not just looking for disinflation” — a slowdown in price increases. “They’re looking for deflation. They want these prices to be back where they were before the pandemic. … I hear that from my family.”

That’s particularly true for some of the goods and services that Americans pay for most frequently: Bread, beef and other groceries, apartment rents and utilities. Every week or month, consumers are reminded of how far those prices have risen.

Deflation — a widespread drop in prices — typically makes people and companies reluctant to spend and therefore isn’t desirable. Instead, economists say, the goal is for wages to rise faster than prices so that consumers still come out ahead.

How inflation-adjusted incomes have fared since the pandemic is a complicated question, because it’s difficult for just one metric to capture the experiences of roughly 160 million Americans.

Adjusted for inflation, median weekly earnings — those in the middle of the income distribution — have risen at just a 0.2% annual rate from the final three months of 2019 through the second quarter of this year, according to calculations by Wendy Edelberg, a senior fellow at the Brookings Institution. That meager gain has left many Americans feeling that they have made little financial progress.


For Katherine Charles, a 40-year old single mother in Tampa, Florida, inflation’s slowdown hasn’t made it easier to make ends meet. Her rent jumped 15% in May. Over the summer, to keep her electricity bill down, Charles kept the air conditioning off during the day despite Tampa’s blistering hot weather .

She has felt the need to cut back on groceries, even though, she said, her 16-year old son and 10-year old daughter “are at the age they are eating everything in front of them.”

“My son loves red meat,” Charles said. “We cannot any longer afford it the way we used to. The economy’s not getting better for nobody, especially not for me.”

Charles, a call center representative with a company that handles customer service for the Medicare and Affordable Care Act health plans, received a raise to $18.21 an hour two years ago. But it wasn’t much of an increase. She doesn’t even remember how large it was.

This month, Charles took part in a one-day strike against her employer, Maximus. She and her co-workers are seeking higher wages and more affordable health insurance. Charles’ two children are on Medicaid, she said, because Maximus’ health insurance is too expensive.

Eileen Cassidy Rivera, a spokeswoman for Maximus, said that a recent survey of its 40,000 employees found that three-quarters of those who responded said “they would recommend Maximus as a great place to work.”


“During the past five years, we have increased compensation, reduced out-of-pocket health care expenses and improved the work environment,” Rivera added.

Rising prices have been a key driver of a wave of strikes and other forms of labor activism this year, with unions representing autoworkers, Teamsters and airline pilots winning sizable pay increases.

Other factors also play a role in why many people are still unhappy with the economy. Political partisanship is one of them. With Biden occupying the White House, Republicans are far more likely than Democrats to characterize the economy as poor, according to the University of Michigan’s monthly survey of consumer sentiment.

Karen Dynan, a Harvard economist who served in both the George W. Bush and Obama administrations, noted that distinct swings in economic sentiment occur after a new president is inaugurated, with voters from the party opposed to the president quickly switching to a more negative view.

“The partisan divide is stronger than it was before,” she said. “Partly because the country is more polarized.”

Even so, many Americans, like Charles, are still feeling the pain of inflation. The national average price of a gallon of milk reached $3.93 in October, up 23% since February 2020, just before the pandemic struck. A pound of ground beef, at $5.35, is 33% higher than it was then. Average gas prices, despite a steep decline from a year ago, are still 53% higher at $3.78 a gallon, on average.

All those increases have far outpaced the rise in overall prices, which are up nearly 19% over the same period.

Edelberg said the jump in prices for items that people typically buy most often helps explain why many people are disgruntled about the economy — even as Americans have remained confident enough to keep spending at a healthy pace.

“Their purchasing power overall,” Edelberg said, “is doing pretty well.”

Yet broad national data doesn’t capture the experiences of everyday Americans, many of whom haven’t seen their wages keep up with prices.

“In real terms, most people are probably pretty close to where they were pre-pandemic,” said Brad Hershbein, a senior economist at the Upjohn Institute. “But there are a lot of exceptions.”

Lower-income Americans, for example, have generally received the largest percentage wage gains since the pandemic. Fierce competition for front-line workers at restaurants, hotels, retailers and entertainment venues forced companies to provide significant pay hikes.

But poorer people typically face a higher inflation rate, according to economic research, because they spend a greater proportion of their income on such volatile expenses as food, gas and rent — items that have absorbed some of the biggest price spikes.

“At the lower end of the income distribution, people got somewhat higher pay raises,” said Anthony Murphy, a senior economic policy advisor at the Federal Reserve Bank of Dallas. “But I don’t think it compensates them for the fact that inflation was so much higher. They’re consuming a different bundle of goods than the average.”

Census Bureau surveys that Murphy and his colleague Aparna Jayashankar have studied show that nearly half of Americans say they’re “very stressed” by inflation, little changed from a year earlier, even though inflation has tumbled since last year.

Even for people whose incomes have kept pace with prices, research has long found that people hate inflation more intently than its economic impact would suggest. Most people do not expect their pay to keep up with rising prices. Even if it does, the higher pay may come with a time lag.

“They’re obsessing over the fact that the prices they pay for the things that are very salient — gas, food, grocery store prices, rent — those things still seem elevated, even though they’re not increasing as rapidly as they were,” Hershbein said.

“If everyone had lost a job,” he said, “we’d be focused on that.”

FREEDOM









Will Russia Ever Be Free?

Promise and peril in post-Putin Russia

AMERICAN LIBERTARIAN FANTASY
AS A BAD AS TROTSKY'S

CATHY YOUNG |
REASON MAGAZINE
 FROM THE DECEMBER 2023 ISSUE

(Illustration: antipolygon-youtube/Unsplash)

LONG READ


Eager though we all are to learn how the Ukraine war ends for Ukraine, there is another great unanswered question about the invasion: How will the war end for Russia?

Will it revert to a quasi-Soviet totalitarian past, this time with a simulacrum of capitalism and an ideology of religious nationalism instead of communism? When Vladimir Putin's death or downfall comes, will that bring a new liberal "thaw"? Or will the country slide into violent strife between warlords like the late Yevgeny Prigozhin—leading, perhaps, to an even more belligerent fascist dictatorship? Or will the Russian Federation disintegrate as the Soviet Union did 32 years ago, with some of its constituent entities breaking off into independent states? And would that reduce Russia to a shrunken, humbled, impoverished, and increasingly irrelevant country?

Russia still commands a vast nuclear arsenal, and there is no realistic scenario where that's going to change soon. Russia's sheer size, its cultural influence, its place at the intersection of Europe and Asia, and its vast network of international connections give it, like it or not, a pivotal role in global politics and development. Whether Russia moves in a liberal or anti-liberal direction, whether it embraces markets or militarism, tolerance or tyranny, will influence social trends in many other countries.

For the past decade or so, under Putin's authoritarian rule, Russia has been a superspreader of global anti-liberalism. Now the war in Ukraine has dramatically reduced Moscow's influence by severely damaging its image, its international standing, and (thanks to Western sanctions) its economic reach.

But what next? Is the idea of a free, prosperous, peaceful Russia a serious possibility or a pipe dream?


What if Russia Wins?

Russia, of course, might win the war. Here's a possible scenario after a Russian victory.


By the start of 2024, the Ukrainian offensive (or counteroffensive) fails or at least is perceived as a failure, and the West pressures Ukraine to make territorial concessions in exchange for continued aid. The peace accords allow Russia to keep Crimea and at least some of the territories annexed last year, including the land bridge to Crimea and perhaps Mariupol, which Putin appears to view as an especially valuable prize. It's enough of a victory for Putin to position himself as a winner, especially if some or all of the economic sanctions on Russia are lifted (perhaps in exchange for limited reparations to Ukraine, which Kremlin propaganda could spin as generous fraternal aid).

It is certainly possible that, as Ukraine fears, Putin and the war hawks in his entourage would view such a peace deal as a breather for a new military buildup and a new effort to bring all of Ukraine under Russian control by installing a Moscow-friendly regime in Kyiv. Some Russian propagandists talk about Ukraine as a stepping stone toward rebuilding a Russian/Soviet empire, and even some Russian military men have echoed such themes; an interview from July shows Andrey Mordvichev (who commanded Russian Army divisions at the battle for Mariupol and was recently promoted to the rank of colonel-general) talking about the alleged need to attack Eastern Europe.

But given the current state of Russian armed forces and the population's lack of appetite for war (when the Russian government tried partial mobilization in 2022, the result was a mass exodus of men), such fantasies are likely to remain fantasies. Ukraine is only likely to agree to such concessions on the condition of NATO membership, which would essentially preclude another Russian invasion, perhaps with face-saving assurances to Russia that no NATO bases will be placed in Ukraine.

In this scenario, Russia's current neo-totalitarian cocoon will only harden. Political prisoners will remain in prison (unless, perhaps, they are traded for some valuable Russian prisoners of war), and there will be new prosecutions for sharing "fake"—i.e., accurate—information about the war or about Russian war crimes. Access to truthful reporting on these topics will remain severely restricted; the Kremlin will almost certainly further tighten restrictions on the internet.

Since the myth of the righteous war will be the foundation of the regime's survival, authoritarian, anti-Western, and anti-liberal propaganda will likely intensify. A cohort of Russian children will be raised on history textbooks (already introduced at the start of this school year) that portray Russia as both the indomitable bastion of all virtues and the eternal victim of nefarious Western intrigue, that discuss the mass-murdering tyrant Josef Stalin in positive terms, that treat Soviet-era dissidents and defectors as selfish and disloyal, and that glorify the "special operation" in Ukraine as part of Russia's historical mission to vanquish Nazism.

How long would such a hardline regime survive? At least as long as Putin does—and that could be a while.

Losing the War, Winning Freedom

It's a broad consensus among Russian dissidents of all stripes—not counting hawks who "dissent" in the sense that they think Putin isn't waging war ruthlessly enough—that undoing Russia's dictatorship will be impossible unless Ukraine wins the war. As chess grandmaster and opposition activist Garry Kasparov said in February at the Munich Security Conference, "Liberation from Putin's fascism runs through Ukraine." A joint "Declaration of Russian Democratic Forces," spearheaded by Kasparov and a fellow opposition leader, former businessman Mikhail Khodorkovsky, unequivocally called for the withdrawal of Russian troops from all territories recognized as Ukrainian under international law (which would include Crimea, annexed in 2014) as well as war crimes prosecutions and compensation for "the victims of aggression."

Such an outcome would indeed be a resounding and humiliating defeat.

The idea is not that disgruntled Russians will vote out Putin and his United Russia party, which currently controls the Duma (Russia's so-called parliament) and most local governments. In September, appearing on a YouTube channel created by former staffers of an independent radio station that had been shut down days after the start of the war, Khodorkovsky argued that peaceful transition at the ballot box is currently impossible in Russia: The entire system is designed to leave no chance of that happening. Khodorkovsky thinks the peaceful protest the Russian opposition has traditionally practiced is also futile: He is outspoken in insisting the opposition must be prepared to participate in violent action.

What Khodorkovsky has in mind is not a pro-freedom, anti-Putin uprising—the level of repression and surveillance in Russia today makes organizing dissent extremely difficult—but simply chaos, which, to paraphrase Game of Thrones' Littlefinger, the opposition can use as a ladder. The most likely scenario is an "elite coup": Some people within Russia's political elites get sufficiently fed up with Putin to remove him from power one way or another. Many Russian pundits have sarcastically mentioned "the tobacco-box option," a euphemism for regime change by assassination: In March 1801, Czar Paul I was attacked in his bedchamber by a group of high-level conspirators and knocked unconscious with a tobacco box before being strangled to death with a scarf. A less drastic way of removal would be to either officially place Putin under arrest or force him to announce a sudden retirement for health reasons.

It's almost impossible to intelligently assess the probability of any of those outcomes. But massive discontent with the war and with Putin is rife among Russia's business elites. This class once accepted a deal under which they got guarantees of stability in exchange for not seeking influence as independent players in Russian politics. That "stability" worked, for better or worse, given Western countries' willingness to do business with resource-rich Russia. But the invasion of Ukraine in February 2022 spectacularly blew up that stability.

While Russian markets haven't tanked completely, thanks to continuing oil and gas purchases by non-Western partners, the rich and powerful have certainly taken a hit: Russian billionaires lost a combined $80 billion in the first week of the war. What's more, much of Russia's post-Soviet privileged class now finds itself cut off from access to its vast assets in the West. Bank accounts and investments have been frozen; luxury homes, villas, and yachts are out of reach.

Public expressions of discontent have been extremely rare, which is not surprising given how dangerous such expressions are in today's Russia. But on two occasions in the past year, leaked recordings of cellphone conversations showed B-list Russian businessmen lamenting the war, describing Putin as a "retard" who keeps saying that "everyone is an enemy, but we're going to win," and predicting that the current regime would eventually turn Russia into a "scorched desert."

Are there people with such views sufficiently high up in the Russian power structures—and with enough loyal armed men under their command—to carry out a coup, whether lethal or nonlethal? There is no way to be sure. For years, a great deal of talk has circulated about rival factions or "clans" within the regime, but all such information comes from supposed insiders or ex-insiders whose accounts cannot be confirmed. (It is alleged, for instance, that the June mutiny of Prigozhin's Wagner mercenary group was coordinated with one such faction.) But a successful coup certainly cannot be ruled out. The Prigozhin mutiny clearly showed that the Russian populace will not take to the streets to support Putin despite his nominally high approval ratings. (There was no outpouring of popular support for Putin either during or after the 24-hour rebellion, and many people in Rostov-on-Don, the city where Prigozhin's private army briefly made its headquarters, cheered for the mutinous mercenaries.)

The liberal opposition is extremely unlikely to seize power after Putin's ouster. But there is a more likely (and more morally gray) liberalization scenario. If the architects of an anti-Putin coup are people who want to rebuild good relations with liberal democracies and start reintegrating Russia into global markets and communications, they will have to demonstrate that the new regime is committed to liberal reforms. This will require holding elections with legitimacy in the eyes of the world, giving pro-freedom, pro-democracy parties and candidates meaningful opportunities to get their share of political power. A post-Putin regime might also bring at least some liberal opposition figures into the government, or into a power-sharing coalition, making them the human face of the new Russia.

Such a scenario might just mean a new crony-capitalist regime willing to use opposition leaders who are popular abroad, such as Khodorkovsky or the jailed Putin opponent Alexei Navalny, as a front for a corrupt political establishment. But any post-Putin government creates a window for meaningful change.

A Russian Spring—a fresh opportunity for political pluralism, the rule of law, civil society, and a market economy—may not seem very likely now. The liberal opposition is too small and fractured; Khodorkovsky's Open Russia movement, for instance, has been feuding with Navalny's Anti-Corruption Foundation. Support for liberal ideas after almost a quarter-century of Putinism is fairly low even among young people (though measuring public opinion in a fear-ridden authoritarian country is no easy task), and most of the population seems to be mired in a passivity that analysts have described as collective learned helplessness.

Still, it's the most optimistic scenario, and it has at least a chance.

Private Armies and Scattered Principalities

A Russian coup could also lead to a far darker outcome: open armed conflict between rival political factions—some of it based on ideology, some on raw competition for power and wealth—and the emergence of multiple regional centers of power. This scenario looks especially plausible given the expansion of so-called private military companies (a misnomer, since they are typically entangled with the state) since the start of the Ukraine war.

These companies have existed in Russia for years; Gazprom, the majority state-owned oil and gas giant, has had several as a security service. During the war, these paramilitary units gained a new visibility when Prigozhin's Wagner Group, its ranks padded with convicts recruited from penal colonies, played a pivotal role on the frontline and was elevated in official propaganda to the status of legendary heroes.

In summer 2023, as Prigozhin grew increasingly defiant, Putin took steps to bring the Wagner Group to heel by requiring all "volunteers," i.e., mercenaries, serving in the "special operation" in Ukraine to sign contracts with the Ministry of Defense. It was the Wagner Group's refusal to comply that led to Prigozhin's mutiny—a saga that ended with the Wagner Group being dismantled and with Prigozhin apparently blown up aboard his business jet.

But private military companies that do not answer to the Ministry of Defense can still legally function as long as they're not fighting in Ukraine. A month after the Prigozhin mutiny, new legislation was passed allowing regional governors to start such quasi-armies. Putin may think that they're a way to prevent or put down future rebellions, but they could easily have the opposite effect.

In other words, Russia has a lot of armed groups in the pay of corporate behemoths and government officials. It's not hard to imagine how this could go if the Putin regime collapses and the government fractures.

A protracted civil war seems unlikely, since most of the Russian population is too cowed and passive to mobilize for one side or another. But conflicts between armed groups controlled by a new breed of warlords may well lead to actual warfare, with disgruntled veterans (some of them violent ex-convicts) contributing to the turmoil. Post-Putin Russia could be an impoverished wasteland with well-protected islands of affluence, virtually autonomous cities run like medieval principalities, and roving gangs and militias. Depending on how impoverished it becomes, conflicts over resources could become frequent and brutal.

All that could lead to another frequently mentioned scenario: the dissolution of the Russian Federation.

A Russian Breakup


The Russian Federation currently has 89 distinct areas known as "federal subjects," 83 of them internationally recognized. (The other six are territories annexed from Ukraine in 2014 and 2022, portions of which Russia currently doesn't control.) That includes 21 non-Slavic "autonomous republics" such as Chechnya, Dagestan, Bashkortostan, Chuvashia, and Tatarstan, and six non-Slavic "autonomous districts," some with a population larger than some republics.

Some of these entities have previously tried to secede—most notably Chechnya (pacified through two brutal wars and a deal that allows its current president to rule it as a de facto principality) and Tatarstan (whose 1991 declaration of sovereignty was approved in a referendum but invalidated by Russia's Constitutional Court).

A May report from the Association of Accredited Public Policy Advocates to the European Union indicates that separatist movements exist in 36 of the federation's constituent entities, but they are mostly small and weak. Even in republics extensively used by the Kremlin as a source of cannon fodder for the war in Ukraine, such as Buryatia and Dagestan, there has been no clamor for liberation.

Obviously, that could change quickly if the Putin regime collapsed, the economy tanked, and the country descended into chaos. Even in regions with an ethnic Russian majority, a group of determined activists could generate a serious push for independence.

The possibility of Russia's dissolution has been extensively discussed, with vigorous disagreement on both the plausibility and the desirability of such a scenario. Some anti-Putin, pro-Ukraine pundits believe that the West's reluctance to give Ukraine enough support for a decisive victory is due in large part to fears that the collapse of the Putin regime will lead to the collapse of the Russian Federation and the proliferation of dangerous rogue statelets in its place. Warlords with nukes are the ultimate nightmare.

Many Russian opposition figures, including Khodorkovsky, believe that Russia's disintegration is extremely unlikely and would be a disaster if it happened. On the other hand, politicians, activists, and commentators from countries historically subjugated by the Russian Empire or the Soviet Union—be it Ukraine, Estonia, or Poland—often argue that Russia will remain an imperialistic menace unless it's literally cut down to size, and that its peaceful dissolution via separatism is the best chance to do that. Writing in Politico last January, Janusz Bugajski of the Jamestown Foundation even suggested that Western democracies should encourage Russia's disintegration by supporting local separatist movements.

A more dispassionate analysis of the federation's possible breakup is offered by French scholar Bruno Tertrais, deputy director of the Foundation for Strategic Research, in a March paper for the Montaigne Institute. Tetrais warns that the disintegration of the Russian Federation, which he believes is entirely possible, would not be a relatively orderly event like the breakup of the USSR into 15 constituent republics. He instead expects a prolonged and chaotic process, very possibly accompanied by bloodbaths. What's more, the conflict would likely reverberate beyond Russia's borders—Tetrais bluntly writes that "the lockdown of Russia in the pandemic-related sense of the word" would be a necessary response—and the end result could be Russia's reunification under a new totalitarian regime.

The only good news, Tetrais argues, is that nuclear proliferation is unlikely, since Russia's nuclear forces today are almost entirely located "in the heart of the Federation," in areas under Moscow's secure control. But "severe disruption" could reach even those regions.

There's also the China factor. While Bugajski's Politico piece speculated that Russia's disintegration would weaken China because Beijing would lose a valuable ally, it is entirely possible to imagine a different outcome—one where China turns Russia's battered remnants into a resource-rich de facto colony, or even annexes portions of Russian territory in the Far East. (In September, China ruffled some feathers in Moscow by publishing a "national map" that includes some disputed land which is currently Russian.) While the Chinese regime almost certainly doesn't want Russia's collapse, since it favors stability, it would also be in a position to take advantage of such a collapse if it happened.

Forecasting Through the Fog of War


With the outcome of the war still uncertain, predicting the fate of the Putin regime and of Russia is necessarily speculative. Many other scenarios besides the ones outlined above may come to pass, most of which we cannot even envision today. (Who could have predicted the Prigozhin mutiny in early 2023, when the official Russian media were hailing the Wagner Group men as a heroic force fighting at Bakhmut?)

But there is a very strong chance that in a few years the United States and other liberal democracies will find themselves in a replay of the 1990s, making difficult decisions about how to respond to sweeping, uncertain changes in Russia. We may have to decide how much to trust and help a new liberalization, whether to respond with humanitarian aid or "lockdown" to chaos and collapse, whether to lend our support to breakaway republics.

After the evil that Russia has visited on the world in 2022–2023, reviving ghosts of World War I and World War II in the heart of Europe, it is tempting for many—especially those victimized by Russian imperialism—to write off the entire country as hopelessly toxic and fit only for a cordon sanitaire. But the exiled journalist and staunch Kremlin critic Igor Yakovenko has warned emphatically against such an approach.

"The idea that you can build a mile-high fence and dig a moat filled with crocodiles…and the rest of the world can breathe a sigh of relief—this is a mistake," Yakovenko said on his YouTube channel earlier this year. "Russia isn't going to fall into a deep hole, it's not going anywhere." An authoritarian Russia will pose a threat even if temporarily weakened; a Mad Max–like Russia of chaos, desperation, and private armies will pose a different kind of threat; and the replacement of Russia with a dozen or two dozen smaller states could create an entirely new set of problems.

Optimism about Russia's future, at this point, looks absurdly naive. But forever pessimism is not only bleak but ugly; it almost invariably involves borderline-racist notions of collective guilt and inherent national character. Better to adopt a cautious realism that adapts to developments within Russia and seeks to identify genuinely liberal forces. But nothing good is apt to come from Russia unless it is defeated in the Ukraine war and Putin's regime falls.
What Do US Sanctions on Russia's Arctic LNG 2 Project Mean for the World Energy Order?

The US is poised to take the lead and dictate the terms of energy trade in the coming decades. The sanctions on the Arctic LNG 2 are believed to be a precursor of this changing scenario.


Novatek’s LNG construction centre near Murmansk.


K.M. Seet
THE WIRE, INDIA
Nov, 19,2023

LOND READ

The new bouts of sanctions the United States recently imposed on Russia apparently signal a strategic shift in the world energy order. The latest sanctions on Russia’s Arctic liquefied national gas (LNG) 2 project – imposed as a penalty for its war on Ukraine – have different ramifications. Insofar as a new geopolitical dynamic takes shape in the already volatile Arctic region, Washington appears determined to prevent Russia from gaining prominence in the global energy market.


Does the emerging strategic landscape – with the continuing war in Ukraine and the new spell of war in the Middle East – augur well for the international correlation of power dynamic, with all its attendant implications for the global energy supply chains? Though it is too early to suggest a quick revival/reversal in the coming months, the global market is expected to grapple with disruptions and shortfalls in the energy sector, in one way or the other. Perceptibly, the United States is poised to take the lead and dictate the terms of energy trade in the coming decades. The sanctions on the Arctic LNG 2 are believed to be a precursor of this changing scenario.

Obviously, Russia’s invasion of Ukraine reshaped global energy supply chains, propelling the US to the forefront of the world’s energy-exporting nations. As Europe faced challenges in its natural gas imports from Russia, US exporters redirected shipments of LNG from Asia to Europe. With Russian oil under sanctions and the European Union rejecting Moscow’s seaborne cargoes, there has been a substantial increase in US crude and refined product exports to Europe.

This shift marked a significant transformation, with the US evolving from a supplier of “military arsenal” to a major energy arsenal, as noted by John Kilduff, a partner at Again Capital. Already, indications in this direction have come from US officials.

In a special briefing on October 13, 2023, Geoffrey R. Pyatt, assistant secretary of state for energy resources, said that the US was “committed to working in lockstep both to impose a price on Russia for its brutal invasion, but also to ensure that we deny Putin the resources that he is using in order to prosecute this terrible war against the people of Ukraine”. And in the case of its G7 partners in particular, the US is “also committed to working jointly to deny Russia future energy revenues and to target in particular investments and projects which are aimed at growing Russia’s future energy revenue”. Pyatt said: “That is the reason, for instance, why you saw our last sanctions package including measures specifically targeting the Arctic LNG 2 project in Russia. Our aim there, again, is to deny Russia future energy revenue.”

On October 24, Pyatt said: “Russia’s invasion of Ukraine overturned the international energy order.” With “Russia’s weaponisation of its oil and gas resources, … [it] is never going to be viewed again as a reliable energy supplier.” Pyatt pointed out “the remarkable success with which Europe has de-risked its dependency on Russian gas”. He said “American producers have played an indispensable role in helping to fulfil European energy security …”

Pyatt further said: “Russia which until 2022 was the world’s largest oil and gas exporter, has now put itself more or less permanently into the penalty box. And I think however and whenever the tragedy in Ukraine comes to an end, the market is never again going to look at Russia as a reliable investment location or look at Russia as a reliable supplier. So that means…there is going to be continued demand for energy that the United States produces.”

In his interaction with James O’Brien and Pyatt on November 8, US Senator Chris Murphy spoke at a US Senate Foreign Relations Committee hearing on U.S. national security interests in Ukraine. He said: “But the IEA projects Russia’s share of globally traded oil is going to fall by 50% by 2030, and their net income from gas sales is going to fall from $75 billion to $30 billion. You’re spending already 6% of your GDP, and you have a potentially catastrophic fall coming in oil and gas revenue. That is one of the things, maybe the primary factor that may push Russia to the table to try to drive a conclusion to this conflict.”

Pyatt, however, pointed out that there is a “structural decline in oil and gas revenue that Russia is confronting”. He said: “We are working as hard as we can to accelerate that trend. We do that through two mechanisms; One is by accelerating our energy transition, both here in the United States but also globally, as the Biden administration has done through the Inflation Reduction Act to reduce the dependence on fossil fuels. …But the other aspect of this is what we are doing systematically to reduce Russia’s future energy revenue. Just last week, for instance, we levelled new sanctions against a project in the Arctic, Arctic LNG 2, which is Novatech’s flagship LNG project, which Novatech set in motion with the aspiration of developing Russia as the largest LNG exporter in the world. Our objective is to kill that project. And we’re doing that through our sanctions working with our partners in the G7 and beyond.”

Arctic LNG 2 project

The Arctic LNG 2 project, managed by Russia’s Novatek, focuses on natural gas extraction and liquefied natural gas (LNG) production. On November 2, the US included the Arctic LNG 2 project into its sanctions list, targeting Russia’s energy sector production and export capabilities. The project is run by LLC Arctic LNG 2, a joint venture with PJSC NOVATEK (60%), TotalEnergies consortium (10%), Chinese corporations CNPC (10%) and CNOOC (10%), and JAPAN ARCTIC LNG (a consortium of Japanese companies MITSUI and JOGMEC) (10%). These sanctions are part of a broader punitive measures by the US against Russia, emerging from the full-scale invasion of Ukraine in 2022.

Novatek has been actively advancing the Arctic LNG-2 project, a significant initiative aimed at substantially increasing LNG production. The project is envisaged to elevate Russia’s global market share in LNG to 20%, and particularly it stands as a one-of-a-kind undertaking on a global scale.

Russian President Vladimir Putin launched the first completed production line for LNG on a gravity-based platform within the Arctic LNG-2 project, situated in Murmansk. This colossal platform, weighing over 600,000 tonnes, is set to be pushed along the Northern Sea Route to the Utrenneye field on the Gydan Peninsula in the Yamal-Nenets Autonomous Area.

Upon the full realisation of the project, Arctic LNG-2 will feature three liquefaction trains capable of producing a total of 19.8 million tonnes per annum (MTPA) of LNG, along with up to 1.6 MTPA of stable gas condensate (SGC). The scale and uniqueness of this endeavour underscore its significance in Russia’s strategy to enhance its presence in the global LNG market.

Russia has dismissed the impact of Western sanctions, asserting that they are employed by the United States to eliminate Moscow as a competitor in the global energy supplies arena. These sanctions do not directly apply to the project or its shareholders. However, concerns were raised about potential complications in how Mitsui and JOGMEC provide support for the project, possibly leading to delays in production, according to Russian sources.

The Arctic LNG-2 project is distinguished by several key features. It represents the world’s inaugural initiative for the serial production of liquefied natural gas (LNG) lines based on gravity-based structures (GBS). The utilisation of this construction technology, coupled with the substantial localization of equipment and material production in Russia, ensures cost-effectiveness, boosting the competitiveness of Russian LNG globally.

According to Russia, Arctic LNG-2 also adheres to high environmental standards, as the GBS construction eliminates the need for a liquefaction plant at the production site. Instead, LNG lines are linked from the Murmansk region to the Yamal field along the Northern Sea Route (NSR), thereby reducing environmental impact. Furthermore, the project enhances energy efficiency, resulting in a more than 30% reduction in greenhouse gas emissions per tonne of LNG compared to the industry average. This positions Russia favourably amid the global transition to a low-carbon economy.

The successful commissioning of Arctic LNG-2 is anticipated to significantly increase Russia’s overall LNG production, accounting for over half of the load of the NSR by 2030, as projected by the Russian government. Moreover, the project contributes to the development of the Russian Arctic economy, involving numerous domestic enterprises and creating over 80,000 jobs across the country. Arctic LNG-2 represents Russia’s third LNG project, following the Sakhalin-2 project launched in February 2009 and the Yamal LNG project initiated in December 2017. Upon completion, Arctic LNG-2 is expected to contribute approximately 19.8 million tonnes per year, equivalent to 27 billion cubic meters of gas annually, according to Konstantin Simonov, the director-general of the National Energy Security Fund. Russia is not only a major producer of LNG but also a significant supplier of pipeline gas, solidifying its position as one of the largest energy producers globally. Despite facing Western energy embargoes in response to the commencement of the war in Ukraine, Russia continues to supply more gas to world markets, both in pipeline and liquefied forms, according to Simonov.

The major consumers of LNG are primarily Asian countries, including China, Japan, South Korea and India. Spain and France are also significant European importers of Russian LNG, particularly from the Russian Arctic. The increased capacities of the Arctic LNG-2 project are expected to amplify the volume of LNG deliveries to these countries, utilising the Northern Sea Route (NSR) as a strategic transit route. This expansion aims to enhance Russia’s position in the global gas market, enabling it to manage the challenges of reconfiguring gas exports in the current geopolitical and economic conditions.

Western sanctions have presented new challenges for Novatek, the operator of the Arctic LNG 2 project, as outlined by Simonov. The primary segment of the first line of Arctic LNG 2 was produced before the imposition of sanctions on Russia’s LNG industry. Novatek had utilised technologies from the German company Linde, with other foreign suppliers, including the American company Baker Hughes, also contributing to the project. However, post-sanctions, Baker Hughes refused to supply the full number of turbines required for the project. Critics said that rather than hindering Russia’s industrial development, Western sanctions would serve as a catalyst for boosting domestic producers and technologies

The US is actively collaborating with partner countries to address sanctions on the Russian LNG project in the Arctic. The Office of Foreign Assets Control, a division of the Treasury Department, issued a general license that permits the wind-down of transactions related to Arctic LNG-2. This authorisation is effective through January 31, 2024. The spokesperson from the State Department emphasised ongoing coordination with partner nations as the January deadline approaches.

Novatek holds a 60% stake in the Arctic LNG-2 project and aims to commence production by the end of the year. This project is pivotal for Russia’s ambitions to secure 20% of the global LNG market by 2035, up from the current 8%. The new sanctions on the Arctic LNG-2 project are specifically targeted at degrading Russia’s future energy production and export capabilities, while ensuring the continued flow of energy to global markets, according to a spokesperson from the US State Department.

The spokesperson emphasised that the US does not have a strategic interest in reducing the global supply of energy, as this would lead to increased energy prices worldwide, benefiting Moscow. Despite the sanctions, the US maintained its position as the world’s largest LNG exporter in the first six months of the current year, as reported by the Energy Information Administration. The State Department spokesperson underscored the importance of close coordination with partners on sanctions issues and affirmed the continuation of such collaboration.

Changing energy landscape

The world is currently grappling with different dimensions of the energy crisis, characterised by unprecedented challenges. Russia’s invasion of Ukraine no doubt transformed the economic recovery from the pandemic into a full-fledged energy disorder. As the largest global exporter of fossil fuels, Russia’s restrictions on natural gas supply to Europe, coupled with European sanctions on Russian oil and coal imports, are disrupting a crucial route of global energy trade. While all fuels are impacted, gas markets are at the forefront, with Russia attempting to exert influence by subjecting countries to higher energy costs and supply deficits. Spot prices for natural gas skyrocketed to unprecedented levels. The soaring prices of gas and coal contributed significantly to a 90% increase in electricity costs worldwide. To compensate for the shortfall in Russian gas supply, Europe sought to import additional quantities of LNG.

Key players in Russia’s gas production include Gazprom and Novatek, while several oil companies, including Rosneft, also contribute to gas production. Gazprom, a state-owned entity, remains the largest gas producer, although its share has decreased over the past decade due to expansions by Novatek and Rosneft. Nevertheless, Gazprom still contributed to 68% of Russian gas production in 2021. Geographically, gas production has shifted from West Siberia to areas like Yamal, Eastern Siberia, the Far East and offshore Arctic regions.

Russia’s extensive gas export pipeline network includes transit routes through Belarus and Ukraine, as well as direct pipelines into Europe (such as Nord Stream, Blue Stream and TurkStream). The completion of the Nord Stream II pipeline in 2021 faced challenges as the German government withheld certification following the Russian invasion of Ukraine. Russian natural gas accounted for a significant portion of European Union gas demand, representing 45% of imports and nearly 40% of demand in 2021, with Germany, Turkey and Italy as the primary importers.

Russia’s strategic initiatives include the Power of Siberia pipeline, a major eastward gas export pipeline connecting far east fields directly to China. With a capacity of 38 bcm, it aims to gradually increase exports to 38 bcm in the coming years. Russia is also contemplating the development of the Power of Siberia-2 pipeline, which could supply China from West Siberian gas fields.

Diversification efforts extend to LNG development, with Russia targeting 110-190 bcm/year LNG exports by 2025. In 2021, Russia ranked as the world’s fourth-largest LNG exporter, shipping 40 bcm and constituting around 8% of global LNG supply. Also, Russia’s focus on the Arctic aims to boost oil and gas production, leveraging over 80% of natural gas production and an estimated 20% of crude production. While climate change poses challenges, it also opens opportunities for expanded access to Arctic trade routes, enhancing flexibility in seaborne fossil fuel deliveries, especially to Asia.

According to estimates from both the Organisation of the Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA), global energy demand is expected to increase by 40-60% by 2040 compared to 2010 levels. In this future energy landscape, oil is anticipated to maintain a leading role, constituting 25-27% of the total supply, while gas will make up 24–26% (compared to today’s figures of 35% and 26%, respectively). Notably, a significant portion of oil and gas production in 2040 is projected to occur in deposits that have yet to be explored.

Given these forecasts and considering the potential of undiscovered oil and gas reserves in the Arctic Shelf, estimated at 90 billion barrels of oil and 47 trillion cubic meters of natural gas, the offshore resources in the Arctic could play a crucial role in sustaining current production levels and fostering future growth in the medium and long term. This underscores the strategic importance of the Arctic region in meeting global energy demands and shaping the future of the oil and gas industry. However, with the new sanctions in place, and as Washington’s ambitious energy drive gets underway, it remains to be seen if Russia will be able to appropriate the oil and natural gas reserves in the Arctic.

K.M Seethi, an ICSSR Senior Fellow, is Academic Advisor to the International Centre for Polar Studies (ICPS) and Director, Inter University Centre for Social Science Research and Extension (IUCSSRE), Mahatma Gandhi University, Kerala.

Fascists Are Racist. Yet, They Are Just as Much Sexist as Racist

 

From the East, Middle East, Eastern Europe and more, regimes want to conquer more than just people of color.


 

Most people want equality and prefer peace over aggression

Recently, former president Trump rallied support for his 2024 election by decrying “the radical left communists, Marxists, and fascists.” But, this suggests everyone who wants inclusion and social change is somehow radical, or fascist.

Most people are not.

As often noted by Medium writers Elle Beau and Katie Jgln, the patriarchy is not about men mistreating women, but about who has power and authority. Any lopsided control that portrays domination and aggression as a primary tool for social order is suspect.

It’s also very important who calls out it when it leads to inequality and even genocide.

At the recent Republican debate, several candidates — notably, as the only woman, Nikki Haley — asserted how strong and tough they were, insinuating that non-dominating politicians can’t handle the global ‘playground’ without bullying. However as a former international diplomat, Haley knows better.

At the debate, Haley even managed to even bring the subject of her high heels to the fight — as metaphorical weapons — as well as calling Ramaswamy “scum.” This may be seen as progress for women who are free to speak their mind, but it’s more nuanced than that.

Appearing tough means candidates are hawkish for war, intolerant of outsiders or foreigners having influence, and adamant that the marginalized, be they fellow women, or people of color, immigrants, or even non-combatant citizens are fair game in social, or literal, war.

This zombie idea of Social Darwinism still grabs for the throats of people around the world, and it often suggests that women, by nature, have more graspable necks.

We are so indoctrinated to think that you must be a dominating fighter to be a leader that we usually do not question such suggestions. Instead, we can blindly follow this guidebook on the road to fascism.

We fight racism more ardently than we fight sexism

In Hitler’s Germany, it was all about ‘race’. The ones who wanted white supremacists to rule as a ‘master race’ were against any ‘others’ who were Jewish, Slav, Black, Roma, or somehow not Aryan.

The master race soon won the hearts of just enough people that everyone else felt forced to comply, or possibly die.

Except that, here is the thing. It was not all about race. It was just as much about sex and gender. The Nazis did not tolerate LGBTQ+ people and they had very definite roles limiting the freedom of women.

Authoritarian regimes can, and do lead to fascism. Across the board, authoritarians fear one thing above all: the empowerment of women. Women represent the subjugated and inferior. All other “inferiors” in the acceptance of such an order also fall into place once this rule is firmly established.

In Nazi Germany, the role of women, even if it had been all about race, was to proliferate more of the master race, Aryan boys and girls. master gentlemen prefer blondes and blue eyes, if possible, but baby-makers could come in every color, size, and shape of uterus.

It’s almost a century later, why fear such fascists now? It’s important to see sexism and racism together for what they are. Today, all over the world there are those who want to limit people according to their color and their genitals.

Liberty is a woman

Please take note when speeches, or ads, or media of any kind advocate that there’s a natural order suggesting we all want to be strong and tough, but only in a ‘manly’ way that dismisses endurance, resilience, expression, and femininity.

We really truly need the strength of all sexes, genders, and colors.

We can examine the preferred role of women and LGBTQ+ people among Trumpeteers. In either case, male supremacy demands domination and/or dismissal. Even a moral code is asserted that insists gender and sexuality must be socially monitored for compliance.

Think of the ideal version hour-glass woman who has no place in the world except as a kind of trophy. Sometimes a broken trophy, but always a feminized, objectified one. The being and voice of these women only have value (temporarily) if they stick to rigid roles. Motherhood offers them another role, to create future workers to uphold the system.

Women in such a system have no bodily autonomy except as granted by men who make the rules. If you think Western women are free, just examine who decides who should have babies, and when. It tells us much.

Today, women have votes and property ownership because suffragists valiantly demanded them for more than half a century. What would our world look like without women, their science, sacrifice, steadfastness, spine, and spunk?

Why mainstream economics misjudged inflation

JAMES K GALBRAITH
, NOV 19, 2023

In his November 7, 2023, New York Times newsletter, economist Paul Krugman raises a pertinent, albeit belated, question: Why did so many economists misjudge the inflation outlook? Despite the near-consensus among mainstream economists that inflation would persist and even accelerate, justifying substantial interest-rate hikes by the US Federal Reserve, the quasi-inflation of 2021-22 turned out to be transitory.

Krugman tactfully questions the illogic of certain inflation pessimists who, long after the absorption of the 2021 fiscal stimulus packages, provided new, unrelated justifications for their belief that inflation would stubbornly remain high. With little mainstream dissent, their doomsaying dominated the discourse into 2023.

Though Krugman refrains from naming Lawrence H. Summers, who justified inflation pessimism with concerns about supposedly excessive savings, the Fed's debt purchases, and forecasts of essentially zero interest rates, Krugman dismisses these worries as nonsense. As Krugman rightly points out, savings cannot cause inflation, and a technical forecast holds no causal power.

Adopting the persona of a naïf, Krugman suggests that economists might have been searching for reasons to be pessimistic, citing two possibilities: fear that well-supported American workers might be harder to manage and the belief that high interest rates support the dollar internationally.


Inflation,And,Tax,Concept,Rising,Graph,Of,Inflation,Rats,African

Krugman acknowledges that various Fed officials have openly stated their commitment to maintaining a strong dollar, with an obsession with wages permeating Fed Chair Jerome Powell's speeches. Krugman hints at a third possibility – that some mainstream economists might advocate for high interest rates to curry favor with bankers, who benefit from larger profit margins when rates are high.

As Krugman concludes, a thorough examination of how so many economists erred in their predictions, coupled with introspection about their motivations, is warranted. However, he expresses doubt about the likelihood of such an introspective exercise within the economics profession.

Krugman notes that the economists he mentions, including himself, are very much part of the economics profession's mainstream. However, he subtly suggests a larger issue: the repeated failures of mainstream economists in predicting significant economic events, such as the 2007-09 financial crisis and the ill-advised turn to austerity in 2010.

The core of the problem, as Krugman highlights, may lie in the fact that many leading mainstream economists were trained in the 1970s, and their worldview, both in terms of facts and theory, remains fixed in that era. The influences of general equilibrium theory, inflation-unemployment trade-offs, and monetarism continue to shape their perspectives.

Notably, Krugman’s reflection on disinflation makes no mention of economists who accurately predicted the disinflation, such as Isabella M. Weber of the University of Massachusetts Amherst, and L. Randall Wray and Yeva Nersisyan of the Levy Institute. Despite their correct predictions, economists with alternative ideas often go unnamed and unrecognized, possibly due to resistance from the old guard seeking to preserve their academic, political, and media monopolies since the 1970s.

In offering a polite critique of his colleagues, Krugman diplomatically raises questions about the direction of mainstream economics. James K. Galbraith, Professor of Government and Chair in Government/Business Relations at the University of Texas at Austin, concludes by suggesting that mainstream economists should re-examine their core beliefs or perhaps consider the need for a new mainstream altogether.

James K. Galbraith, Professor of Government and Chair in Government/Business Relations at the University of Texas at Austin, is a former staff economist for the House Banking Committee and a former executive director of the Joint Economic Committee of Congress. From 1993-97, he served as chief technical adviser for macroeconomic reform to China’s State Planning Commission. He is the author of Inequality: What Everyone Needs to Know (Oxford University Press, 2016) and Welcome to the Poisoned Chalice: The Destruction of Greece and the Future of Europe (Yale University Press, 2016).


Project Syndicate 2023



THE OUTLAW OCEAN PROJECT (PART FOUR)

From bait to plate – tracking the Chinese fishing ships linked to rights and labour abuses at sea


(Image: iStock | Rawpixel)

By Ian Urbina
Follow
19 Nov 2023 
In recent decades, working aggressively to expand its might, China has transformed itself into the world’s seafood superpower. This pre-eminence has come at a grave human and environmental cost. Part Four: Preventing abuses by tracing seafood from bait to plate proves difficult.

No sooner had US President Joe Biden issued an executive order in March 2022 prohibiting the import of Russian seafood, an effort aimed at depriving billions of dollars that might go towards Putin’s war in Ukraine, than members of Congress said the ban was unenforceable. US importers often do not know where their fish is actually caught, and trade data indicate that nearly a third of wild-caught seafood imported and labelled as being from China is actually pulled from Russian waters.

The embarrassing setback highlighted the opaque nature of the world’s seafood supply chains and has since spurred calls from American legislators, ocean conservationists, consumer advocates and human rights organisations to require US importers to track their seafood from bait to plate to ensure it is not tied to labour and environmental crimes or violations of sanctions on “pariah” states like North Korea and Iran.


Since the Russian seafood import ban took effect in June 2022, at least 31 Chinese squid ships have fished in Russian waters, including several owned by companies shipping seafood to the US and the European Union, according to satellite data and export records.

China catches, processes and exports the vast majority of the planet’s seafood. It has a distant-water fleet that is more than double the size of its next competitor. More than 70% of the seafood landed by this fleet, measured by weight, is squid.

Ranked as the world’s worst purveyor of illegal and unregulated fishing and highly prone to using forced labour, this fleet has been tied to myriad crimes, including cases of raiding Argentinian waters, routinely turning off their transponders in violation of Chinese law, illegally fishing in North Korean waters in violation of UN sanctions, and engaging in violence, wage theft, severe neglect and human trafficking of foreign and Chinese crew.



A Chinese captain opened his fishing logbook, which is supposed to show where, when and what was caught. The first two pages had writing on them, but the rest were blank.

With ships so far from shore, constantly in transit, typically operating on the high seas, where national governments have limited jurisdiction, seafood supply chains are distinctly tough to track. In the many handoffs of catch between fishing boats, carrier ships, processing plants and exporters there are gaping holes in traceability, according to Sally Yozell, the director of the environmental security programme at the Stimson Center, a research organisation in Washington, D.C. “Most seafood is caught by Chinese ships or processed in China,” she said, “which makes the chain of custody even more opaque.”

Some US seafood companies that import from China say they know their seafood is untainted by crimes because they are provided with “catch certificates” by Chinese processors that indicate the provenance of the catch, detailed down to the level of which ship caught it, and where. These documents are far from foolproof, because they are self-reported, often unverifiable, and filled out at the processing plant, not on the ships themselves where the crimes occur, said Sara Lewis from FishWise, a nonprofit organisation that does seafood sustainability consulting. The catch certificates also say nothing about labour conditions.
Tracking Chinese ships

To document the nature of these traceability gaps as catch moves from bait to plate, a team of reporters followed and, in some instances, boarded for inspection, Chinese fishing ships at sea in several locations, including in the waters close to North Korea, Gambia, the Falkland Islands and the Galapagos Islands.

The team followed the ships by satellite back to ports, and then to pin down who was cleaning, processing and freezing the catch for eventual export, it tracked Chinese fishing ships as they moved their catch to refrigeration ships and carried it to ports in China, where the trucks were filmed and followed to the processing plants. The reporters used export records to track the seafood to grocery stores, restaurants and food service companies in the EU and US.



This investigation revealed examples of gaps in tracking at each handoff. Roughly 350 miles west of the Galapagos Islands, on a Chinese squid fishing ship, a deckhand opened the freezers several floors below deck to reveal stacks of frozen catch in white bags. He explained that they leave the fishing ship names off bags because that allows them to transfer cargo more easily to other fishing ships owned by the same company. This gives fishing companies greater versatility but also makes it impossible for downstream buyers to know what ship actually caught their fish.

On the bridge of another ship, a Chinese captain opened his fishing logbook, which is supposed to show where, when and what was caught. The first two pages had writing on them, but the rest were blank. “No one keeps those,” a captain said about the logs, noting that company officials on land reverse engineer the information later. In processing plants, the squid on the conveyor belts was often separated not based on the ship that caught it but instead based on weight, quality, size and type based on the market willing to pay a premium for each attribute.

***

Seafood is the planet’s last major source of wild protein and it is also the largest internationally traded food commodity. Experts cite a variety of reasons that they worry about China’s domination over this market. Political analysts like Whitley Saumweber and Ty Loft at the Center for Strategic and International Studies in Washington, D.C. say China’s near monopoly over distant-water fishing “imperils the food security of millions of people”, especially in developing countries that rely most on fish for their source of protein.

American legislators say China’s dependence on illegal practices puts domestic fishermen at a competitive disadvantage. “We cannot continue to allow countries such as China and Russia to undercut our honest fishers by abusing our oceans and fellow human beings,” said a June 2022 letter to Biden signed by Republican Jared Huffman from California, and Republican Garret Graves from Louisiana. “Addressing illegal, unregulated and unreported fishing (IUU) is an important step in ensuring that, not only are our citizens eating safe and healthy food, but that their economic interests are protected.”


There are laws meant to block products associated with trafficked, prison, Uighur, North Korean or child forced labour. These laws are particularly ineffective with seafood.

Fishing is the world’s deadliest profession and abusive conditions on these ships are well documented. Human rights advocates such as the Environmental Justice Foundation and Human Rights Watch have warned that the seafood buyers have no way of knowing whether they are tacitly complicit in these crimes. Consumer advocates cite the health risks resulting from the 15% to 30% of the seafood that winds up on American plates that is not what is listed on the label.

Because of the lack of tracking, much of the seafood that Americans eat is also of uncertain origin. That creates potential health risks, but it also means – as human rights advocates such as the Environmental Justice Foundation and Human Rights Watch have pointed out – that it’s hard to know when fish have been caught by vessels that rely on illegal fishing techniques and labour practices.

Ocean conservationists like Oceana and Greenpeace point to the duty of seafood companies to stop illegal fishing, especially as the seas are running out of fish with more than a third of the world’s stocks overfished, a number that has tripled since 1974, according to the UN agency that oversees fisheries.

A variety of supply-chain laws exist to prevent the US import of prohibited goods. Aside from the sanctions on states such as North Korea, Iran, Venezuela and Russia, there are also laws meant to block products associated with trafficked, prison, Uighur, North Korean or child forced labour. These laws are particularly ineffective with seafood, however, because there is limited information about what happens on fishing ships.

Kenneth Kennedy, a former forced-labour programme manager under the US Immigration and Customs Enforcement, said US legislators and federal agencies often lack the political will to apply most of the anti-slavery or other product-tracking laws because such investigations move painfully slowly and complicate international trade deals.

Federal efforts to monitor seafood have generally ignored the Chinese fleet, even though these ships have the greatest ties to labour and environmental crimes. More than 17% of seafood imports from China were caught illegally, according to US trade data. According to a 2021 study by the Global Initiative Against Transnational Organized Crime, a nonprofit that studies the impacts of organised crime, China ranks first and Russia second, among 152 nations engaged in illegal fishing. In 2020, the US Department of Labor said Chinese squidders are especially apt to use migrant and captive labour.

In 2016, the US government created the Seafood Import Monitoring Program, which requires that importers keep detailed records of their catch from point of harvest until entry into the US. Squid, however, was not included among the programme’s 13 monitored seafood species, which were chosen primarily because of worries about illegal fishing and fraudulent labelling, not human rights and labour abuses. In 2021, NOAA, the agency that oversees the monitoring programme, announced plans to expand the number of included species based on new criteria, including whether the fleet catching the fish is associated with human trafficking.

American customs officials today track only two or three types of squid, according to David Pearl, a foreign affairs specialist at NOAA – a problem, given that there are in fact 30 to 40 commercial species. Even when import records are kept, companies are allowed to conceal their import and export data from the public by simply asking federal regulators for an exemption, which many companies do.

In press releases, on their websites and in Security and Exchange Commission filings, some seafood retailers claim to enforce standards that ensure that their supply chains are clean of illegality or abuse. But John Hocevar, the oceans campaign manager at Greenpeace USA, said that so-called corporate responsibility programmes tend to be ineffective, because they are largely self-policing, lack third-party oversight or verification, focus on environmental not human rights concerns, and typically reach only as far as the processing plants, not the ships where crimes are most likely to occur.

According to Yozell, from the Stimson Center, even knowing what country caught the fish is tough. US federal law requires retailers to inform customers of the origin of most types of food but exempts seafood that is processed in another country and re-exported. If fish is caught on Russian boats but processed in China, it gets labelled as being a product of China.

***

Even companies that claim environmental and labour stewardship have been found to be tied to Chinese ships with crimes and risk indicators. Ruggiero Seafood, which says on its website that it does not sell illegally caught seafood, has been tied to a squid ship that was found violating UN sanctions by fishing in North Korean waters in 2019. Kroger, one of the largest supermarket chains in the US, which says on its website that it “never knowingly” buys illegally caught seafood, has been linked to a Chinese ship that fished illegally in Indonesia in 2020. Lidl, the largest supermarket in Europe, cites its commitment to responsible sourcing under the slogan “A Better Tomorrow”. But Eridanous, Lidl’s own brand of squid, is processed at a plant linked to at least three fishing companies whose vessels have a history of fishing offences, including lengthy transmission gaps in key squid fisheries in the North and South Pacific, illegal fishing in Peru’s exclusive zone, and shark finning.



Ruggiero and Kroger did not reply to requests for comment. Lidl said it is opposed to illegal, unreported and unregulated fishing, and that it raised the findings of this investigation with its supplier, Zhoushan Xifeng, which provided a statement saying it is not involved in fishing offences.

Many larger seafood companies have joined an industry programme called the Marine Stewardship Council (MSC) that offers assurance on traceability and sustainability. Jackie Marks, an MSC spokesperson, said the programme is primarily to prevent environmental crimes and tracking where fish came from, not what labour concerns might exist on ships.

Read The Outlaw Ocean Project Part One

The programme does not assess labour conditions or do inspections on fishing ships to check for crimes like wage theft, beatings, debt bondage, or human trafficking. Instead, MSC focuses primarily on determining whether processing plants are hygienic, labelling is accurate, and all ships and plants in supply chains are identifiable. To be certified under MSC, fishing and seafood companies have to submit paperwork indicating they have not been prosecuted for forced labour or related crimes in the past two years, and fishing companies must report what steps they take to prevent such crimes.

The US government has taken action in isolated cases. In December 2022, for example, the Treasury Department issued sanctions under the Global Magnitsky Act against the directors of two large Chinese fishing companies, Dalian Ocean Fishing and Pingtan Marine Enterprise, based on allegations of forced labour and illegal fishing by some of their more than 150 ships.

The US Customs and Border Protection agency has the duty to stop imports tied to forced labour entering the country, and in the past five years the agency has boosted its efforts. It has issued such orders on long-line tuna fishing vessels flagged in Taiwan, but it has never taken action against Chinese squid ships, despite the evidence that they are among the worst actors. DM

Read The Outlaw Ocean Project Part One, Part Two and Part Three

This story was produced by The Outlaw Ocean Project, a nonprofit journalism organisation in Washington, D.C. Reporting and writing was contributed by Ian Urbina, Joe Galvin, Maya Martin, Susan Ryan, Daniel Murphy and Austin Brush. This reporting was partially supported by the Pulitzer Center.