March 1, 2011

Will Russia betray Gaddafi?


The developments in Libya continue the chain of bloody revolutions in Africa and Middle East of last months.  Libyan and other nations’ refugees are trying to escape, more than 140 000 people already left the country. The majority gathered at Tunisia’s border (it’s still open). Egypt border is closed.  Meanwhile today UN have suspended Libya's membership of the UN Human Rights Council.
According to BBC reports, witnesses said pro-Gaddafi forces tried to retake the western cities of Zawiya, Misrata and Nalut on Monday but were repulsed by rebels helped by defecting army units. Earlier France said there would be no international military action against Libya without a 'clear mandate' from the United Nations but US and Britain seem to be ready to  storm into the country.
While watching so-called king of kings, Mr Gaddafi’s interview to BBC,  one can only lift his hands. Either he is crazy or else world media is making him so, along with the whole situation around poor Libya.
Well, “poor’ in which sense? Millions of poor people, who have no job, education and social care, as it happens in most of African countries? Or maybe we should feel sorry for poor Gaddafi, as U.S. Treasury Department official said on Monday that about $30 billion of Libyan assets in the United States had been blocked from access by Libyan leader and his family.
Libya is a serious oil exporter. According to BP Statistical Review of World Energy June 2010, oil production of Libya reaches around 75-77 million tons a year, and only 7-8 million Libya consumes itself, the rest goes for export to Europe and USA.
Sound good for such countries as Russia, for example. Analysts are waiting for new petrodollars maximums. If the civil war in Libya will last for more than 2 month (it has started about three weeks ago), the question of changing the supplier will soon arise. And not only Libya is involved, as all Middle East is boiling up.
On 1 March, Brent crude rose above $116 a barrel as supply disruptions persist and political violence spreads in the Middle East and North Africa. Meanwhile, at the same day an expert of Russian Finance ministry announced that the price of Russian crude Urals reached the level of $81 and this price will be considered in budget plans (earlier the price of $75 had been built into the state budget).
It should be noted that before today Russia was gentle, evaluating the developments in Libya. That’s not a secret that Russia signed several contracts with Libya, including $2 billion contract for arms supplement and a contract for rail road construction. Nevertheless, today evening the source of Interfax agency in Kremlin told that “Gaddafi is a live political dead body which has no room for him in the civilized world”.

Photo from: http://archive.kremlin.ru/eng/events/details/2008/04/16_164138.shtml

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