FACT SHEET: Joined by Allies and Partners, the United States Imposes Devastating Costs on Russia

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February 25, 2022

The White House
Statements and Releases
February 24, 2022

Russia to Face Massive Costs from its Isolation from the Global Financial and Trade System and Cutting-Edge Technology

Today, the United States, along with Allies and partners, is imposing severe and immediate economic costs on Russia in response to Putin’s war of choice against Ukraine. Today’s actions include sweeping financial sanctions and stringent export controls that will have a profound impact on Russia’s economy, financial system, and access to cutting-edge technology. The sanctions measures impose severe costs on Russia’s largest financial institutions and will further isolate Russia from the global financial system. With today’s financial sanctions, we have now targeted all ten of Russia’s largest financial institutions, including the imposition of full blocking and correspondent and payable-through account sanctions, and debt and equity restrictions, on institutions holding nearly 80% of Russian banking sector assets. The unprecedented export control measures will cut off more than half of Russia’s high-tech imports, restricting Russia’s access to vital technological inputs, atrophying its industrial base, and undercutting Russia’s strategic ambitions to exert influence on the world stage. The impact of these measures will be significantly magnified due to historical multilateral cooperation with a wide range of Allies and partners who are mirroring our actions, inhibiting Putin’s ambition to diversify Russia’s brittle, one-dimensional economy. The scale of Putin’s aggression and the threat it poses to the international order require a resolute response, and we will continue imposing severe costs if he does not change course.

Putin’s threatening actions and now his unprovoked aggression toward Ukraine are being met with an unprecedented level of multilateral cooperation. The United States welcomes the commitments by Australia, Canada, the European Union, Japan, and the United Kingdom that they will also take similarly forceful actions to hold Russia accountable – demonstrating the strength of our partnerships and deepening the impact on Russia more than any action we could have taken alone. This follows our joint action earlier this week to impose a first tranche of severe sanctions on Russia.

As a result of Putin’s war of choice, Russia will face immediate and intense pressure on its economy, and massive costs from its isolation from the global financial system, global trade, and cutting-edge technology. This includes cutting off Russia’s largest bank from the U.S. financial system – a significant blow to its ability to function and process global trade. It also includes full blocking sanctions on Russia’s second largest bank – freezing any of its assets touching the U.S. financial system. Russia’s ability to access global markets, attract investment, and utilize the U.S. dollar will be devastated.

Russia’s economy has already faced intensified pressure in recent weeks; just today its stock market sunk to its lowest level in four and a half years, and the ruble weakened beyond its weakest daily settlement price on record – before additional sanctions were even imposed. With these new stringent measures, these pressures will further accumulate and suppress Russia’s economic growth, increase its borrowing costs, raise inflation, intensify capital outflows, and erode its industrial base. The United States and our Allies and partners are unified and will continue to impose costs, forcing Putin to look to other countries that cannot replicate the financial and technology strengths of Western markets.
Today, the United States carried out the following actions:

Severing the connection to the U.S. financial system for Russia’s largest financial institution, Sberbank, including 25 subsidiaries, by imposing correspondent and payable-through account sanctions. This action will restrict Sberbank’s access to transactions made in the dollar. Sberbank is the largest bank in Russia, holds nearly one-third of the overall Russian banking sector’s assets, is heavily connected to the global financial system, and is systemically critical to the Russian financial system.
Full blocking sanctions on Russia’s second largest financial institution, VTB Bank (VTB), including 20 subsidiaries. This action will freeze any of VTB’s assets touching the U.S financial system and prohibit U.S. persons from dealing with them. VTB holds nearly one-fifth of the overall Russian banking sector’s assets, is heavily exposed to the U.S. and western financial systems, and is systemically critical to the Russian financial system.
Full blocking sanctions on three other major Russian financial institutions: Bank Otkritie, Sovcombank OJSC, and Novikombank- and 34 subsidiaries. These sanctions freeze any of these institutions’ assets touching the U.S financial system and prohibit U.S. persons from dealing with them. These financial institutions play a significant a role in the Russian economy.
New debt and equity restrictions on thirteen of the most critical major Russian enterprises and entities. This includes restrictions on all transactions in, provision of financing for, and other dealings in new debt of greater than 14 days maturity and new equity issued by thirteen Russian state-owned enterprises and entities: Sberbank, AlfaBank, Credit Bank of Moscow, Gazprombank, Russian Agricultural Bank, Gazprom, Gazprom Neft, Transneft, Rostelecom, RusHydro, Alrosa, Sovcomflot, and Russian Railways. These entities, including companies critical to the Russian economy with estimated assets of nearly $1.4 trillion, will not be able to raise money through the U.S. market — a key source of capital and revenue generation, which limits the Kremlin’s ability to raise money for its activity.
Additional full blocking sanctions on Russian elites and their family members: Sergei Ivanov (and his son, Sergei), Nikolai Patrushev (and his son Andrey), Igor Sechin (and his son Ivan), Andrey Puchkov, Yuriy Solviev (and two real estate companies he owns), Galina Ulyutina, and Alexander Vedyakhin. This action includes individuals who have enriched themselves at the expense of the Russian state, and have elevated their family members into some of the highest position of powers in the country. It also includes financial figures who sit atop Russia’s largest financial institutions and are responsible for providing the resources necessary to support Putin’s invasion of Ukraine. This action follows up on yesterday’s action targeting Russian elites and their family members and cuts them off from the U.S. financial system, freezes any assets they hold in the United States and blocks their travel to the United States.
Costs on Belarus for supporting a further invasion of Ukraine by sanctioning 24 Belarusian individuals and entities, including targeting Belarus’ military and financial capabilities by sanctioning two significant Belarusian state-owned banks, nine defense firms, and seven regime-connected official and elites. We call on Belarus to withdraw its support for Russian aggression in Ukraine.
Sweeping restrictions on Russia’s military to strike a blow to Putin’s military and strategic ambitions. This includes measures against military end users, including the Russian Ministry of Defense. Exports of nearly all U.S. items and items produced in foreign countries using certain U.S.-origin software, technology, or equipment will be restricted to targeted military end users. These comprehensive restrictions apply to the Russian Ministry of Defense, including the Armed Forces of Russia, wherever located.
Russia-wide restrictions to choke off Russia’s import of technological goods critical to a diversified economy and Putin’s ability to project power. This includes Russia-wide denial of exports of sensitive technology, primarily targeting the Russian defense, aviation, and maritime sectors to cut off Russia’s access to cutting-edge technology. In addition to sweeping restrictions on the Russian-defense sector, the United States government will impose Russia-wide restrictions on sensitive U.S. technologies produced in foreign countries using U.S.-origin software, technology, or equipment. This includes Russia-wide restrictions on semiconductors, telecommunication, encryption security, lasers, sensors, navigation, avionics and maritime technologies. These severe and sustained controls will cut off Russia’s access to cutting edge technology.
Historical multilateral cooperation that serves as a force multiplier in restricting more than $50 billion in key inputs to Russia- impacting far more than that in Russia’s production. As a result of this multilateral coordination, we will provide an exemption for other countries that adopt equally stringent measures. Countries that adopt substantially similar export restrictions are exempted from new U.S. licensing requirements for items produced in their countries. The European Union, Australia, Japan, Canada, New Zealand and the United Kingdom, have already communicated their plans for parallel actions. This unprecedented coordination significantly expands the scope of restrictions on Russia. Further engagement with Allies and partners will continue to maximize the impact on Russia’s military capabilities.

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Remarks by President Biden Of the United States on Russia’s Unprovoked and Unjustified Attack on Ukraine

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Staff

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February 25, 2022

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The White House
Speeches and Remarks
February 24, 2022

THE PRESIDENT: Sorry to keep you waiting. Good afternoon. The Russian military has begun a brutal assault on the people of Ukraine without provocation, without justification, without necessity.

This is a premeditated attack. Vladimir Putin has been planning this for months, as I’ve been — as we’ve been saying all along. He moved more than 175,000 troops, military equipment into positions along the Ukrainian border.

He moved blood supplies into position and built a field hospital, which tells you all you need to know about his intentions all along.

He rejected every good-faith effort the United States and our Allies and partners made to address our mutual security concerns through dialogue to avoid needless conflict and avert human suffering.

For weeks — for weeks, we have been warning that this would happen. And now it’s unfolding largely as we predicted.

In the past week, we’ve seen shelling increase in the Donbas, the region in eastern Ukraine controlled by Russian-backed separatists.

Rus- — the Russian government has perpetrated cyberattacks against Ukraine.

We saw a staged political theater in Moscow — outlandish and baseless claims that Ukraine was — Ukraine was about to invade and launch a war against Russia, that Ukraine was prepared to use chemical weapons, that Ukraine committed a genocide — without any evidence.

We saw a flagrant violation of international law in attempting to unilaterally create two new so-called republics on sovereign Ukrainian territory.

And at the very moment that the United Nations Security Council was meeting to stand up for Ukraine’s sovereignty to stave off invasion, Putin declared his war.

Within moments — moments, missile strikes began to fall on historic cities across Ukraine.

Then came in the air raids, followed by tanks and troops rolling in.

We’ve been transparent with the world. We’ve shared declassified evidence about Russia’s plans and cyberattacks and false pretexts so that there can be no confusion or cover-up about what Putin was doing.

Putin is the aggressor. Putin chose this war. And now he and his country will bear the consequences.

Today, I’m authorizing additional strong sanctions and new limitations on what can be exported to Russia.

This is going to impose severe costs on the Russian economy, both immediately and over time.

We have purposefully designed these sanctions to maximize the long-term impact on Russia and to minimize the impact on the United States and our Allies.

And I want to be clear: The United States is not doing this alone. For months, we’ve been building a coalition of partners representing well more than half of the global economy.

Twenty-seven members of the European Union, including France, Germany, Italy — as well as the United Kingdom, Canada, Japan, Australia, New Zealand, and many others — to amplify the joint impact of our response.

I just spoke with the G7 leaders this morning, and we are in full and total agreement. We will limit Russia’s ability to do business in Dollars, Euros, Pounds, and Yen to be part of the global economy. We will limit their ability to do that. We are going to stunt the ability to finance and grow Rus- — the Russian military.

We’re going to impose major — and we’re going to impair their ability to compete in a high-tech 21st century economy.

We’ve already seen the impact of our actions on Russia’s currency, the Ruble, which early today hit its weakest level ever — ever in history. And the Russian stock market plunged today. The Russian government’s borrowing rate spiked by over 15 percent.

In today’s actions, we have now sanctioned Russian banks that together hold around $1 trillion in assets.

We’ve cut off Russia’s largest bank — a bank that holds more than one third of Russia’s banking assets by itself — cut it off from the U.S. financial system.

And today, we’re also blocking four more major banks. That means every asset they have in America will be frozen. This includes V.T.B., the second-largest bank in Russia, which has $250 billion in assets.

As promised, we’re also adding names to the list of Russian elites and their family members that are sanctioning — that we’re sanctioning as well.

As I said on Tuesday, these are people who personally gain from the Kremlin’s policies and they should share in the pain. We will keep up this drumbeat of those designations against corrupt billionaires in the days ahead.

On Tuesday, we stopped the Russian government from raising money from U.S. or European investors.

Now, we’re going to apply the same restrictions to Russia’s largest state-owned enterprises — companies with assets that exceed $1.4 trillion.

Some of the most powerful impacts of our actions will come over time as we squeeze Russia’s access to finance and technology for strategic sectors of its economy and degrade its industrial capacity for years to come.

Between our actions and those of our Allies and partners, we estimate that we’ll cut off more than half of Russia’s high-tech imports.

It will strike a blow to their ability to continue to modernize their military. It’ll degrade their aerospace industry, including their space program. It will hurt their ability to build ships, reducing their ability to compete economically. And it will be a major hit to Putin’s long-term strategic ambitions.

And we’re preparing to do more. In addition to the economic penalties we’re imposing, we’re also taking steps to defend our NATO Allies, particularly in the east.

Tomorrow, NATO will convene a summit — we’ll be there — to bring together the leaders of 30 Allied nations and close partners to affirm our solidarity and to map out the next steps we will take to further strengthen all aspects of our NATO Alliance.

Although we provided over $650 million in defensive assistance to Ukraine just this year — this last year, let me say it again: Our forces are not and will not be engaged in the conflict with Russia in Ukraine. Our forces are not going to Europe to fight in Ukraine but to defend our NATO Allies and reassure those Allies in the east.

As I made crystal clear, the United States will defend every inch of NATO territory with the full force of American power. And the good news is: NATO is more united and more determined than ever.

There is no doubt — no doubt that the United States and every NATO Ally will meet our Article 5 commitments, which says that an attack on one is an attack on all.

Over the past few weeks, I ordered thousands of additional forces to Germany and Poland as part of our commitment to NATO.

On Tuesday, in response to Russia’s aggressive action, including its troop presence in Belarus and the Black Sea, I’ve authorized the deployment of ground and air forces already stationed in Europe to NATO’s eastern flank Allies: Estonia, Latvia, Lithuania, Poland, and Romania.

Our Allies have also been stepping up, adding — the other Allies, the rest of NATO — adding their own forces and capabilities to ensure our collective defense.

And today, within hours of Russia’s unleashing its assault, NATO came together and authorized and activated — an activation of response plans.

This will enable NATO’s high-readiness forces to deploy and — when and where they’re needed to protect our NATO Allies on the eastern boundaries of Europe.

And now I’m authorizing additional U.S. forces and capabilities to deploy to Germany as part of NATO’s response, including some of U.S.-based forces that the Department of Defense placed on standby weeks ago.

I’ve also spoken with Defense Secretary Austin and Chairman of the Joint Chiefs, General Milley, about preparations for additional moves should they become necessary to protect our NATO Allies and support the greatest military alliance in the history of the world — NATO.

As we respond, my administration is using the tools — every tool at our disposal to protect American families and businesses from rising prices at the gas pump.

You know, we’re taking active steps to bring down the costs. And American oil and gas companies should not — should not exploit this moment to hike their prices to raise profits.

You know, in our sanctions package, we specifically designed to allow energy payments to continue.

We are closely monitoring energy supplies for any disruption. We have been coordinating with major oil-producing and consuming countries toward our common interest to secure global energy supplies.

We are actively working with countries around the world to elevate [evaluate] a collective release from the Strategic Petroleum Reserves of major energy-consuming countries. And the United States will release additional barrels of oil as conditions warrant.

I know this is hard and that Americans are already hurting. I will do everything in my power to limit the pain the American people are feeling at the gas pump. This is critical to me.

But this aggression cannot go unanswered. If it did, the consequences for America would be much worse. America stands up to bullies. We stand up for freedom. This is who we are.

Let me also repeat the warning I made last week: If Russia pursues cyberattacks against our companies, our critical infrastructure, we are prepared to respond.

For months, we have been working closely with our private — with the private sector to harden their cyber defenses, sharpen our ability to respond to Russian cyberattacks as well.

I spoke late last night to President Zelenskyy of Ukraine and I assured him that the United States, together with our Allies and partners in Europe, will support the Ukrainian people as they defend their country. We’ll provide humanitarian relief to ease their suffering.

And in the early days of this conflict, Russian propaganda outlets will keep trying to hide the truth and claim success for its military operation against a made-up threat.

But history has shown time and again how swift gains in territory eventually give way to grinding occupations, acts of mass civil — mass civil disobedience, and strategic dead-ends.

The next few weeks and months will be hard on the people of Ukraine. Putin has unleashed a great pain on them. But the Ukrainian people have known 30 years of independence, and they have repeatedly shown that they will not tolerate anyone who tries to take their country backwards.

This is a dangerous moment for all of Europe, for the freedom around the world. Putin has a — has committed an assault on the very principles that uphold global peace.

But now the entire world sees clearly what Putin and his Kremlin — and his Kremlin allies are really all about. This was never about genuine security concerns on their part. It was always about naked aggression, about Putin’s desire for empire by any means necessary — by bullying Russia’s neighbors through coercion and corruption, by changing borders by force, and, ultimately, by choosing a war without a cause.

Putin’s actions betray his sinister vision for the future of our world — one where nations take what they want by force.

But it is a vision that the United States and freedom-loving nations everywhere will oppose with every tool of our considerable power.

The United States and our Allies and partners will emerge from this stronger, more united, more determined, and more purposeful.

And Putin’s aggression against Ukraine will end up costing Russia dearly — economically and strategically. We will make sure of that. Putin will be a pariah on the international stage. Any nation that countenances Russia’s naked aggression against Ukraine will be stained by association.

When the history of this era is written, Putin’s choice to make a totally unjustifiable war on Ukraine will have left Russia weaker and the rest of the world stronger.

Liberty, democracy, human dignity — these are the forces far more powerful than fear and oppression. They cannot be extinguished by tyrants like Putin and his armies. They cannot be erased by people — from people’s hearts and hopes by any amount of violence and intimidation. They endure.

And in the contest between democracy and autocracy, between sovereignty and subjugation, make no mistake: Freedom will prevail.

God bless the people of a free and democratic Ukraine. And may God protect our troops.

Q President Biden —

THE PRESIDENT: Associated Press, Zeke.

Q Chris Megerian. So, do you have any plans to speak with President Putin at this point? And what interactions have you had with the Russian government?

THE PRESIDENT: I heard the first part: Do I have any plans to speak with Putin at this point. And what?

Q What communications have you had with the Kremlin as far as military (inaudible) in Ukraine and making sure this does not spiral into a larger conflict?

THE PRESIDENT: Well, it’s a large conflict already. The way we’re going to assure it’s not going to spiral to a larger conflict is by providing all the forces needed in the Eastern European nations that are members of NATO. NATO is more united than it’s ever been.

And I have no plans to talk with Putin.

Wall Street Journal, Tarina [Tarini].

Q Mr. President, you didn’t mention SWIFT in your sanctions that you announced. Is there a reason why the U.S. isn’t doing that? Is there disagreement among Allies regarding SWIFT and whether Russia should be allowed to be a part of it?

THE PRESIDENT: The sanctions that we have proposed on all their banks is of equal consequence — maybe more consequence than SWIFT — number one.

Number two, it is always an option. But right now, that’s not the position that the rest of Europe wishes to take.

Cecilia Ve- — Vega, ABC.

Q Thank you, sir. Sir, sanctions clearly have not been enough to deter Vladimir Putin to this point. What is going to stop him? How and when does this end? And do you see him trying to go beyond Ukraine?

And a second question I’ll just give to you now: This statement that he gave last night will — that the We- — the threat that he gave — the West “will face consequences greater than any you have faced in history.” Is he threatening a nuclear strike?

THE PRESIDENT: I have no idea what he’s threatening. I know what he has done, number one.

And number two, no one expected the sanctions to prevent anything from happening. That has to sh- — this is going to take time. And we have to show resolve so he knows what’s coming and so the people of Russia know what he’s brought on them. That’s what this is all about.

This is going to take time. It’s not going to occur — he’s going to say, “Oh my God, these sanctions are coming. I’m going to stand down.”

He’s going to test the resolve of the West to see if we stay together. And we will. We will and it will impose significant costs on him.

Q Will he go beyond Ukraine, sir? Do you see him going beyond Ukraine?

Q Mr. President — Mr. President —

THE PRESIDENT: (Points to reporter.) Yes.

Q Thank you. Two topics, just really quick. First, markets are down and gas prices are up. I know you always stress the difference between Wall Street and Main Street, but everybody seems to be in for some economic pain. How economically painful is it going to get for people in this country?

And I do have one more question.

THE PRESIDENT: First of all, there’s no doubt that when a major nuclear power attacks and invades another country that the world is going to respond and markets are going to respond all over the world. So, there’s no doubt about that, number one.

Number two, the notion that this is going to last for a long time is highly unlikely, as long as we continue to stay resolved in imposing the sanctions we’re going to impose on Russia, period.

What’s your next question? I’m sorry.

Q The next question is: Did you underestimate Putin? And would you still describe him the way that you did in the summer, as a “worthy adversary”?

THE PRESIDENT: At the time, he was — I made it clear he was an adversary, and I said he was “worthy.” I didn’t underestimate him.

And I’ve read most of everything he’s written. Did you read the — I shouldn’t sa- — I’m not being a wise guy. The — you heard the speech he made — almost an hour’s worth of speeches — why he was going into Ukraine.

He has much larger ambitions in Ukraine. He wants to, in fact, reestablish the former Soviet Union. That’s what this is about.

And I think that his — his ambitions are — are completely contrary to the place where the rest of the world has arrived.

Q President Biden — President Biden —

Q And — and with that — with his ambitions, you’re confident that these devastating sanctions are going to be as devastating as Russian missiles and bullets and tanks?

THE PRESIDENT: Yes. Russian bullets, missiles, and tanks in Ukraine. Yes, I am.

Q Thank you, President Biden. If sanctions cannot stop President Putin, what penalty can?

THE PRESIDENT: I didn’t say sanctions couldn’t stop him.

Q But you’ve been talking about the threat of these sanctions for several weeks now —

THE PRESIDENT: Yes, but the threat of the sanctions and imposing the sanctions and seeing the effect of the sanctions are two different things.

Q Okay, but —

THE PRESIDENT: They’re two different things. And we’re now going to — he’s going to begin to see the effect of the sanctions.

Q And what will that do — how will that change his mindset here, given he’s attacking Ukraine as we speak?

THE PRESIDENT: Because it will so weaken his country that he’ll have to make a very, very difficult choices of whether to continue to move toward being a second-rate power or, in fact, respond.

Q You said, in recent weeks, that big nations cannot bluff when it comes to something like this. You recently said that the idea of personally sanctioning President Putin was on the table. Is that a step that you’re prepared to take? And if not —

THE PRESIDENT: It’s not a bluff; it’s on the table.

Q Sanctioning President Putin?

THE PRESIDENT: Yes.

Q Why not sanction him today, sir? Why not sanction him today, sir?

Q Mr. President —

Q Mr. President, if I can, you detailed some severe and swift new sanctions today and said the impact it will have over time, but given the full-scale invasion, given that you’re not pursuing disconnecting Russia from what’s called “SWIFT” — the international banking system — or other sanctions at your disposal, respectfully, sir, what more are you waiting for?

THE PRESIDENT: Specifically, the sanctions we’ve imposed exceed SWIFT. The sanctions we imposed exceed anything that’s ever been done. The sanctions we imposed have generated two thirds of the world joining us. They are profound sanctions. Let’s have a conversation in another month or so to see if they’re working.

Yes.

Q Let me ask you about — can I ask you about Zelenskyy? Sir, you spoke to Volodymyr Zelenskyy yesterday, sir, if I could follow up —

Q What’s the risk that we are watching the beginning of another Cold War? And is there now a complete rupture in U.S. and Russian relations?

THE PRESIDENT: There is a complete rupture right now in U.S.-Russian relations if they continue on this path that they’re on.

And in terms of a Cold War, that depends. You have the vast majority of the rest of the world in total opposition to what he’s doing — from Asia to South America to Europe to acr- — around the world.

And so, it’s going to be a cold day for Russia. The idea — you don’t see a whole lot of people coming to his defense.

Q And are you — are you — if I could follow-up, sir. Are you urging China to help isolate Russia? Are you urging China to help isolate Russia?

THE PRESIDENT: I’m not prepared to comment on that at the moment.

(Cross-talk by reporters.)

Q Mr. President —

THE PRESIDENT: Wait. No, no. (Points to reporter.) Yeah.

No, no, no. He’s had his hand up a long time.

Q Thank you, Mr. President. How concerned are you that Putin wants to go beyond Ukraine into other countries and the U.S. will have to get involved if he moves into NATO countries?

THE PRESIDENT: Well, if he did move into NATO countries, he will be involved — we will be involved. The only thing that I’m convinced of is: If we don’t stop now, he’ll be emboldened. If we don’t move against him now with these significant sanctions, he will be emboldened.

Look, you know, every — well, anyway.

Q And can you talk anything more about your conversation —

(Cross-talk by reporters.)

THE PRESIDENT: I’m sorry, I can’t hear you.

Q Sir, India, which is a major defense partner of the United States — is India with — fully with you on the issue of Ukraine and Russia?

THE PRESIDENT: Does the Defense Department of the United States —

Q Sir, India is one of your major defense partners. Is India fully in sync with United States on Russia?

THE PRESIDENT: We’re going to be — we’re in consultation with — with India today. We haven’t resolved that completely.

Q One more question —

(Cross-talk by reporters.)

THE PRESIDENT: Okay, thank you all very much. Thank you.

How Russia-Ukraine conflict could influence Africa’s food supplies

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Staff

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February 24, 2022

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Wandile Sihlobo, Stellenbosch University

No man qualifies as a statesman who is entirely ignorant of the problems of wheat.
The words of the ancient Greek philosopher, Socrates.

Wheat and other grains are back at the heart of geopolitics following Russia’s invasion of Ukraine. Both countries play a major role in the global agricultural market. African leaders must pay attention.

There is significant agricultural trade between countries on the continent and Russia and Ukraine. African countries imported agricultural products worth US$4 billion from Russia in 2020. About 90% of this was wheat, and 6% was sunflower oil. Major importing countries were Egypt, which accounted for nearly half of the imports, followed by Sudan, Nigeria, Tanzania, Algeria, Kenya and South Africa.

Similarly, Ukraine exported US$2.9 billion worth of agricultural products to the African continent in 2020. About 48% of this was wheat, 31% maize, and the rest included sunflower oil, barley, and soybeans.

Russia and Ukraine are substantial players in the global commodities market. Russia produces about 10% of global wheat while Ukraine accounts for 4%. Combined, this is nearly the size of the European Union’s total wheat production. The wheat is for domestic consumption and well as export markets. Together the two countries account for a quarter of global wheat exports. In 2020 Russia accounted for 18%, and Ukraine 8%.

Both countries are also notable players in maize, responsible for a combined maize production of 4%. However, Ukraine and Russia’s contribution is even more significant in exports, accounting for 14% of global maize exports in 2020. Both countries are also among the leading producers and exporters of sunflower oil. In 2020, Ukraine’s sunflower oil exports accounted for 40% of global exports, with Russia accounting for 18% of global sunflower oil exports.

Russia’s military action has caused panic among some analysts. The fear is that intensifying conflict could disrupt trade with significant consequences for global food stability.

I share these concerns, particularly the consequences of big rises in the price of global grains and oilseed. They have been among the key drivers of global food price rises since 2020. This has been primarily because of dry weather conditions in South America and Indonesia that resulted in poor harvests combined with rising demand in China and India.

Disruption in trade, because of the invasion, in the significant producing region of the Black Sea would add to elevated global agricultural commodity prices – with potential knock on effects for global food prices. A rise in commodities prices was already evident just days into the conflict.

This is a concern for the African continent, which is a net importer of wheat and sunflower oil. On top of this there are worries about drought in some regions of the continent. Disruption to shipments of commodities would add to the general worries of food price inflation in a region that’s an importer of wheat.

What to expect

The scale of the potential upswing in the global grains and oilseed prices will depend on the magnitude of disruption and the length of time that trade will be affected.

For now, this can be viewed as an upside risk to global agricultural commodity prices, which are already elevated. In January 2022, the FAO Food Price Index averaged 136 points up by 1% from December 2021 – its highest since April 2011.

Vegetable oils and dairy products mainly underpinned the increases.

In the days ahead of Russia’s move, there was a spike in the international prices of a number of commodities. These included maize (21%), wheat (35%), soybeans (20%), and sunflower oil (11%) compared to the corresponding period a year ago. This is noteworthy as 2021 prices were already elevated.

From an African agriculture perspective, the impact of the war will be felt in the near term through the global agriculture commodity prices channel.

A rise in prices will be beneficial for farmers. For grain and oilseed farmers, the surge in prices presents an opportunity for financial gains. This will be particularly welcome given higher fertiliser costs which have strained farmers’ finances.

The Russia-Ukraine conflict also comes at a time when the drought in South America and rising demand for grains and oilseeds in India and China has put pressure on prices.

But rising commodity prices are bad news for consumers who have already experienced food price rises over the past two years.

The Russia-Ukraine conflict means that pressure on prices will persist. The two countries are major contributors to global grain supplies. The impact on prices from developments affecting their output cannot be understated.

Some countries on the continent, such as South Africa, benefit from exporting fruit to Russia. In 2020 Russia accounted for 7% of South Africa’s citrus exports in value terms. And it accounted for 12% of South Africa’s apples and pears exports in the same year – the country’s second largest market.

But from Africa’s perspective, Russia and Ukraine’s agricultural imports from the continent are marginal – averaging only US$1,6 billion in the past three years. The dominant products are fruits, tobacco, coffee, and beverages in both countries.

Ripple effects

Every agricultural role-player is keeping an eye on the developments in the Black Sea region. The impact will be felt in other regions, such as the Middle East and Asia, which also import a substantial volume of grains and oilseeds from Ukraine and Russia. They too will be directly affected by the disruption in trade.

There is still a lot that’s not known about the geopolitical challenges that lie ahead. But for African countries there are reasons to be worried given their dependency for grains imports. In the near term, countries are likely see the impact through a surge in prices, rather than an actual shortage of the commodities. Other wheat exporting countries such as Canada, Australia and the US stand to benefit from any potential near term surge in demand.

Ultimately, the goal should be to deescalate the conflict. Russia and Ukraine are deeply embedded in the world’s agricultural and food markets. This is not only through supplies but also through agricultural inputs such as oil and fertiliser.

Wandile Sihlobo, Senior Fellow, Department of Agricultural Economics, Stellenbosch University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Russia invades Ukraine – 5 essential reads from experts

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Staff

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February 24, 2022

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Naomi Schalit, The Conversation

This is a frightening moment. Russia has invaded Ukraine, and certainly those most frightened right now are the people of Ukraine. But violent aggression – a war mounted by a country with vast military resources against a smaller, weaker country – strikes fear in all of us. As a Washington Post headline writer recently wrote: The Ukraine crisis is “5,000 miles away but hitting home.”

The Conversation U.S. has spent the past couple of months digging into the history and politics of Ukraine and Russia. We’ve looked at their cultures, their religions, their military and technological capacities. We’ve provided you with stories about NATO, about cyberwarfare, the Cold War and the efficacy of sanctions.

Below, you’ll find a selection of stories from our coverage. We hope they will help you understand that today may feel both inevitable – yet inexplicable.

1. The US promised to protect Ukraine

In 1994, Ukraine got a signed commitment from Russia, the U.S. and the U.K. in which the three countries promised to protect the newly independent state’s sovereignty.

“Ukraine as an independent state was born from the 1991 collapse of the Soviet Union,” write scholars Lee Feinstein of Indiana University and Mariana Budjeryn of Harvard. “Its independence came with a complicated Cold War inheritance: the world’s third-largest stockpile of nuclear weapons. Ukraine was one of the three non-Russian former Soviet states, including Belarus and Kazakhstan, that emerged from the Soviet collapse with nuclear weapons on its territory.”

A soldier wearing a helmet peeks out of a tank. — A Ukrainian serviceman rides atop a military vehicle past Independence Square in central Kyiv on Feb. 24, 2022. Daniel Leal/AFP via Getty Images)

The 1994 agreement was signed in return for Ukraine giving up the nuclear weapons within its borders, sending them to Russia for dismantling. But the agreement, not legally binding, was broken by Russia’s illegal annexation of Ukraine’s Crimean Peninsula in 2014. And today’s invasion is yet another example of the weakness of that agreement.

2. Clues to how Russia will wage war

During the opening ceremony of the 2008 Beijing Olympics, Russia invaded Georgia, a country on the Black Sea. In 2014, Putin ordered troops to seize Crimea, a peninsula that juts into the Black Sea and housed a Russian naval base.

West Point scholar and career U.S. special forces officer Liam Collins conducted field research on the 2008 and 2014 wars in Georgia and Ukraine.

“From what I have learned, I expect a possible Russian invasion would start with cyberattacks and electronic warfare to sever communications between Ukraine’s capital and the troops. Shortly thereafter, tanks and mechanized infantry formations supported by the Russian air force would cross at multiple points along the nearly 1,200-mile border, assisted by Russian special forces. Russia would seek to bypass large urban areas.”

3. Spies replaced by smartphones

If you love spy movies, you’ve got an image of how intelligence is gathered: agents on the ground and satellites in the sky.

But you’re way out of date. These days, writes Craig Nazareth, a scholar of intelligence and information operations at the University of Arizona, “massive amounts of valuable information are publicly available, and not all of it is collected by governments. Satellites and drones are much cheaper than they were even a decade ago, allowing private companies to operate them, and nearly everyone has a smartphone with advanced photo and video capabilities.”

This means people around the world may see this invasion unfold in real time. “Commercial imaging companies are posting up-to-the-minute, geographically precise images of Russia’s military forces. Several news agencies are regularly monitoring and reporting on the situation. TikTok users are posting video of Russian military equipment on rail cars allegedly on their way to augment forces already in position around Ukraine. And internet sleuths are tracking this flow of information.”

A rocket is stuck coming through the ceiling of a damaged apartment with rubble around it. — The body of a rocket stuck in a flat after recent shelling on the northern outskirts of Kharkiv, Ukraine on Feb. 24, 2022. Sergey Bobok/AFP via Getty Images

4. Targeting the US with cyberattacks

As Russia edged closer to war with Ukraine, cybersecurity scholar Justin Pelletier at Rochester Institute of Technology wrote of the growing likelihood of destructive Russian cyberattacks against the U.S.

Pelletier quoted a Department of Homeland Security bulletin from late January that said, “We assess that Russia would consider initiating a cyberattack against the Homeland if it perceived a U.S. or NATO response to a possible Russian invasion of Ukraine threatened its long-term national security.”

And that’s not all. “Americans can probably expect to see Russian-sponsored cyber-activities working in tandem with propaganda campaigns,” writes Pelletier. The aim of such campaigns: to use “social and other online media like a military-grade fog machine that confuses the U.S. population and encourages mistrust in the strength and validity of the U.S. government.”

5. Will war sink Putin’s stock with Russians?

“War ultimately requires an enormous amount of public goodwill and support for a political leader,” writes Arik Burakovsky, a scholar of Russia and public opinion at Tufts University’s Fletcher School.

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Putin’s support among Russians has been rising as the country massed troops along the Ukrainian border – the public believes that its leaders are defending Russia by standing up to the West. But Burakovsky writes that “the rally ‘round the flag effect of supporting political leadership during an international crisis will likely be short-lived.”

Most Russians, it turns out, don’t want war. The return of body bags from the front could well prove damaging to Putin domestically.

Editor’s note: This story is a roundup of articles from The Conversation’s archives.

Want to learn more? Here’s an even bigger collection of our coverage of the crisis in Ukraine.

Naomi Schalit, Senior Editor, Politics + Society, The Conversation

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Life in the Lap of Luxury: Chairman of Parliament, Other Members and Staff Charged Personal Travel Expenses to the Taxpayers

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Staff

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February 23, 2022

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Somaliland’s new Parliament was elected amid fervor and a permeating atmosphere of hope that it will hold the Executive Branch’s feet to the fire and finally put an end to the revolving door of political expediency and corruption that has become the norm in Somaliland’s government. The fact that most of the new Members of Parliament are young and fairly educated with the bonus of the ruling party of Kulmiye losing to the opposition party has reinforced the notion that major changes were coming. Prayers finally answered and saviors finally represent the people are in office. Unfortunately, this is not the case, and the new members of parliament staff and especially the Speaker, Hon. Abdirasak Khalif has been using the public coffers t cover their personal expenses, including extended paid vacations on the taxpayer dime.

Members of Parliament are the highest-paid public officials and command salaries that are higher or equivalent to cabinet ministers but have been charging the public for their most basic personal expenses, including personal travel. This has continued in the current parliament, led by Hon. Abdirasak Khalif.

sl_parliament_salaries_01_2022 Download

Two months after winning the leadership of the newly elected parliament, the Chairman, Hon. Abdirasak Khalif went to Turkey for 28 days from October 4th to November 2nd, 2021 at the cost of 115,685,000.00 Somaliland Shillings or 13,451.74 US dollars, which comes to 480 US dollars a day. Parliamentary records state that Chairman Khalif was taking part in a conference taking place at the Turkish Parliament.

Gudoomiyaha baarlamaanka Soomaliland Mudane Abdirisaq khaliif https://t.co/TumPs5XzGi
— Somaliland In Turkey (@Somalilandturke) October 30, 2021

Only a month later, Chairman Khalif went to Turkey again for 34 days from December 1st, 2021 to January 3rd, 2022 99,441,000 Somaliland Shillings or 11,562.90 US dollars, which comes to 340 US dollars a day. Once again, the official reason for the Chairman’s visit to Turkey was to attend an unspecified conference in Turkey. This is according to congressional records examined by Somaliland Chronicle.

Multiple sources familiar with the Chairman’s trips to Turkey have confirmed the personal nature of his visit and that aside from addressing a gathering of Somaliland diaspora in Ankara on October 30th, 2021 there were no official business or conferences taking place in the Turkish Parliament that Chairman Khalif has attended and other sources have confirmed that Chairman Khalif’s family has lived in Turkey years before taking the top post of Somaliland Parliament.

Although Chairman Khalif’s election of Hon. Khalif as the Chairman of the new parliament was seen as a major win for the opposition parties, he has since moderated his rhetoric and in a speech at a banquet held by President Bihi declared that the parliament is under the command of the President and squarely falls under leadership. On the legislative agenda, the new Parliament has approved the 2022 budget with superficial changes and has passed all executive-level positions nominated by President Bihi since the election of the new parliament.

Leadership of the new Parliament is congratulated by President Bihi

As we previously reported, it has been a common practice that many government officials including ministers have their personal expenses such as housing and what are clearly personal trips overseas covered by the government. This includes the previous Chairman of the Parliament and the Chairman of the house of elders whose travels as well as all domestic expenses were paid with public funds.

It is unclear why the Speaker of the parliament, Hon. Abdirasak Khalif who commands a monthly salary of 5,445.29 US dollars and is said to be personally well off has chosen to use public funds to travel to Turkey twice for personal matters.

Amid catastrophic droughts that are ravaging Somaliland, the Parliament has taken a two-month recess which has prompted many staffers and legislators to travel to many parts of the world and as far as Kuala Lumpur for what is vaguely termed as recognition efforts and much like Chairman Khalif, all expenses in the tens of thousands of dollars are being footed by the public.

Although there is a commendable effort by some legislators to publicly grill government officials on television, some legislators privately complain of the parliament’s lack of organizational capacity to gather, analyze and formulate effective oversight and the leadership’s desire to minimize conflict with the executive branch.

In Somaliland, where many government employees, including military and law enforcement personnel, are severely underpaid, it is unclear if the lavish living expenses of some high-ranking officials are part of their compensation packages and if so, why these expense records are falsely categorized as official business.

Efforts to reach the Chairman of the Parliament Hon. Abdirasak Khalif for comments were unsuccessful.

What are false flag attacks – and could Russia make one work in the information age?

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Staff

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February 20, 2022

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Scott Radnitz, University of Washington

In the past few weeks, U.S. officials have warned several times that Russia plans to create the appearance of an attack on its own forces and broadcast those images to the world. Such a “false flag” operation, they alleged, would give Russia the pretext to invade Ukraine by provoking shock and outrage.

By exposing this plan, the Biden administration sought to undermine its emotional power and stop the Kremlin from manufacturing a casus belli, or justification for war.

But false flag attacks aren’t what they used to be. With satellite photos and live video on the ground shared widely and instantly on the internet – and with journalists and armchair sleuths joining intelligence professionals in analyzing the information – it’s difficult to get away with false flag attacks today. And with the prevalence of disinformation campaigns, manufacturing a justification for war doesn’t require the expense or risk of a false flag – let alone an actual attack.

The long history of false flag attacks

Both false flag attacks and allegations that states engage in them have a long history. The term originated to describe pirates’ wielding of friendly (and false) flags to lure merchant ships close enough to attack. It was later used as a label for any attack – real or simulated – that the instigators inflict against “friendly” forces to incriminate an adversary and create the basis for retaliation.

a large open-frame tower in a field — The Gleiwitz incident involved Nazi operatives staging an attack on a radio station near the Polish border in 1939 and blaming the attack on the Polish government as an excuse to invade Poland. Grimmi59 rade/Wikimedia Commons, CC BY-SA

In the 20th century, there were several prominent episodes involving false flag operations. In 1939, agents from Nazi Germany broadcast anti-German messages from a German radio station near the Polish border. They also murdered several civilians whom they dressed in Polish military uniforms to create a pretext for Germany’s planned invasion of Poland.

That same year, the Soviet Union detonated shells in Soviet territory near the Finnish border and blamed Finland, which it then proceeded to invade.

The U.S. has also been implicated in similar plots. Operation Northwoods was a proposal to kill Americans and blame the attack on Castro, thereby granting the military the pretext to invade Cuba. The Kennedy administration ultimately rejected the plan.

In addition to these actual plots, there have been numerous alleged false flag attacks involving the U.S. government. The sinking of the USS Maine in 1898 and the Gulf of Tonkin incident in 1964 – each of which was a critical part of a casus belli – have been claimed as possible false flag attacks, though the evidence supporting these allegations is weak.

Global visibility, disinformation and cynicism

More recent and even less fact-based is the “9/11 Truth” movement, which alleged that the Bush administration engineered the destruction of the twin towers to justify restrictions on civil liberties and lay the foundation for invading Iraq. Right-wing pundits and politicians have promoted the conspiracy theory that Democrats have staged mass shootings, such as the one at a high school in Parkland, Florida, in 2018, in order to push for gun control laws.

If people believe that false flag operations happen, it is not because they are common. Instead, they gain plausibility from the widespread perception that politicians are unscrupulous and take advantage of crises.

Furthermore, governments operate in relative secrecy and have recourse to tools of coercion such as intelligence, well-trained agents and weapons to implement their agenda. It is not a huge leap to imagine that leaders deliberately cause the high-impact events that they later exploit for political gain, notwithstanding the logistical complexities, large number of people who would have to be involved and moral qualms leaders might have about murdering their own citizens.

For example, it is not controversial to note that the Bush administration used the 9/11 attacks to build support for its invasion of Iraq. Yet this led some people to conclude that, since the Bush administration benefited politically from 9/11, it therefore must have caused the attacks, despite all evidence to the contrary.

The challenge of credibility

The willingness to believe that leaders are capable of such atrocities reflects a broader trend of rising distrust toward governments worldwide, which, incidentally, complicates matters for leaders who intend to carry out false flag attacks. If the impact of such attacks has historically come from their ability to rally citizens around their leader, false flag attacks staged today may not only fail to provoke outrage against the purported aggressor, but they can also backfire by casting suspicion on the leaders who stand to benefit.

Furthermore, investigators using open source intelligence, such as the Bellingcat collective of citizen internet sleuths, make it more difficult for governments to get away with egregious violations of laws and international norms.

Even as the Biden administration attempts to blunt Russia’s ability to seize the initiative, it too faces credibility challenges. Reporters were justifiably skeptical of State Department spokesman Ned Price’s warning about Russia’s false flag plans, especially since he did not provide evidence for the claim.

Skeptics pointed to the August 2021 drone strike during the U.S. withdrawal from Kabul, which the military initially asserted was a “righteous strike” to kill a suicide bomber but that later turned out to be a mistaken attack on an innocent man and his family. It took overwhelming and undeniable evidence from media investigations before the U.S. government admitted the mistake.

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Insofar as the Kremlin might expect to benefit from executing a false flag attack, it would be to manufacture a casus belli among Russian citizens rather than to persuade audiences abroad. Surveys have shown that the vast majority of Russians are opposed to invading Ukraine, yet they also harbor negative attitudes toward NATO.

The spectacle of a provocation aimed against Russia on state-run television might provide a jolt of support for an invasion, at least initially. At the same time, Russians are cynical about their own leaders and might harbor the suspicion that a purported attack was manufactured for political gain.

False flag alternatives

In any event, Russia has other options to facilitate an invasion. At the start of its incursion into Crimea in 2014, the Kremlin used “active measures,” including disinformation and deception, to prevent Ukrainian resistance and secure domestic approval. Russia and other post-Soviet states are also prone to claim a “provocation,” which frames any military action as a justified response rather than a first move.

By contrast, false flag operations are complex and perhaps overly theatrical in a way that invites unwanted scrutiny. Governments seeking to sway public opinion face far greater challenges today than they did in the 20th century. False flag attacks are risky, while leaders seeking to manufacture a casus belli can select from a range of subtler and less costly alternatives.

Scott Radnitz, Associate Professor of International Studies, University of Washington

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Telesom and SOMTEL Telecom Operators sign Interconnectivity Agreement

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Staff

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February 19, 2022

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According to a statement from the Ministry of Telecommunication and Technology, Telesom and SOMTEL have signed a telecom interconnect agreement that will enable users of either network to communicate with each other. The statement does not specify if the interconnectivity will cost the user additional fees.

Telecommunication operators of Somaliland have agreed on February 8th to own equal shares of the fiber optic network in Somaliland, previously owned by SOMCABLE, with a minor share purchased the government of Somaliland at the cost of 1.6 million US dollars.

2022 Budget allocation for the government’s share of the land-based fiber optic.

Unconfirmed reports indicate that Telesom, which dominates Somaliland’s mobile phone and mobile money markets, has been resisting carrier interconnectivity with SOMTEL, but stipulation in the fiber agreement includes clauses that have paved the way for today’s interconnectivity agreement.

CEOs of SOMTEL, Telesom and SOMCABLE sign Fiber agreement with the Government of Somaliland on February 8th

“The main challenge is the tough competition between the two leading operators in the country. Their competition covers every side in the telecom, like pricing, subsidization, and the infrastructure. By taking those factors into consideration, the Ministry has developed Interconnection Regulations and roadmap that will guide the telecom interconnection. Similarly, the Ministry has brought together both Telecom operators and has hosted negotiations between the operators to solve issues and start interconnection service. The parties conducted several meetings at the Ministry premises. Therefore, the Ministry is working to enable this service to the Somaliland population soon.” Dr. Abdiweli Abdillahi Soufi, the Minister of Telecommunication and Technology said on interconnectivity.

The success of ZAAD mobile money which is based on the Telesom network is largely based on its market dominance, it’s unclear if the new agreement between Telesom and SOMTEL will affect Telesom’s competitive advantage over SOMTEL which historically struggled to catch up both in cell service and mobile money. The agreement announced by the Ministry of Telecommunication and Technology did not mention if the interconnect will affect the mobile money aspects of the telecom operators.

This is not the first time the Somaliland government has announced an agreement to interconnect telecom operators. It’s unclear the agreement is legally binding and what measures the Ministry of Telecommunication and Technology will take if SOMTEL and Telesom cannot complete the interconnectivity.

Telesom Debt collection letter to the government of Somaliland

Somaliland government maintains little to no leverage over telecom operators, which are also Somaliland’s largest financial institutions and government creditors.

Although cellphone penetration in Somaliland is higher than in many countries in Africa and the developing world, some basic services such as voicemail, call waiting, and 911 equivalent systems to help first responders locate and render emergency services are not deployed by telecom operators.

Attempts to reach the Minister of Telecommunication and Technology, Dr. Abdiweli Abdillahi Soufi, and officials from SOMTEL and Telesom for comments were unsuccessful.

Somaliland-Taiwan Economic Cooperation: Challenges, Opportunities, and Prospects

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Staff

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February 15, 2022

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Abdiqani Muse Hassan
Ph.D. Candidate in International Business
Asia University, Taichung, Taiwan

In 2020, the Republic of Somaliland and the Republic of China (Taiwan) formed diplomatic relations and established representative offices in the respective capitals. Since then, the two countries have started technical assistance projects in agriculture, information technology, and medical sectors, nevertheless, the economic cooperation has yet to get momentum. The relationship between Somaliland and Taiwan is conducive to greater economic integration because of the existing industry complementarity and commitment to do business with one another. Taiwan’s government and business community have eyes on Africa and are fully aware of business opportunities and market potentials in Africa, unfortunately, the country has a few allies in the continent including Eswatini and Somaliland. Therefore, Somaliland could become a hub for Taiwan to establish economic ties with the population of 400 million-plus in the East African region. With that in mind, Taiwan has begun its efforts to engage Africa through Somaliland and has organized trade fairs that brought together businesspeople and chambers of commerce from East African countries in Hargeisa, Somaliland. Taiwan’s presence in Somaliland provides an opportunity for the Taiwanese business community to take advantage of the free trade agreements of African countries such as the African Continental Free Trade Agreement (ACFTA) and to explore investment opportunities in Africa. But for bilateral relations to be mutually beneficial, Taiwan can contribute to the development of Somaliland’s domestic economy by sharing its miraculous economic experience from the 1960s to the 1990s. If Taiwan helps Somaliland build a debt-free economy through know-how exchange and capacity building, it may convince other African countries to set up diplomatic offices in Taiwan. Aside from the importance and benefits that Somaliland-Taiwan economic ties can bring to Taiwan; the question is whether Somaliland is a place worth investing in? or is it a place where economic growth can take place?

Somaliland’s Market Potentials

Unlike some of the neighboring countries, Somaliland is a peaceful, stable, and democratic nation with a free-market economy. Somaliland locates at a strategic location which makes it an integral part of the world economy since ancient times. Somaliland’s coastal towns of Zeila, Lasqoray, and Berbera were famous for vibrant trade activities where raw materials and primary products from inland Africa were exported to other territories, and the imports from the rest of the world were received. In addition, Somaliland has plenty of untapped reserves of natural resources such as minerals (iron ore, uranium, copper, tin, bauxite, gypsum, etc.), salt, and natural gas. These numerous natural resources are yet to be exploited because of the poor infrastructure and the decades of international isolation. On the other hand, Somaliland has a predominantly young and multilingual workforce that can play an important role in economic development. In terms of physical infrastructure, Somaliland and neighboring countries are building their infrastructure to promote trade flow and connectivity such as the Berbera Corridor which aims to connect Berber, Somaliland port city, and Addis-Ababa, the capital city of Ethiopia.

UAE also invests 500 million to increase Berbera port capacity and build Berbera airport. On the other hand, Somaliland is improving its trade and investment regulations to create legal frameworks that can attract foreign partners to invest in Somaliland. There are also plenty of profitable business opportunities in the sectors of livestock production, fishery development, outsourcing manufacturing, tourism, and services. The Somaliland National Development Plan Vision of 2030 gives the highest priority to economic development; hence the government of Somaliland is committed to establishing economic cooperation with partner countries. On the other hand, the people of Somaliland are creative and entrepreneurial people who prefer to get foreign direct investment instead of foreign aid. All these factors taken together can make Somaliland an attractive investment destination for Taiwanese businesses.

Current and Future Collaborations

Despite the COVID19 restrictions and its subsequent difficulties in trade, travel, and investment flow, Somaliland and Taiwan have successfully collaborated in organizing trade fairs, matchmaking webinars, market opportunity seminars, and many more trade and investment promotion activities. Several MOUs were signed by companies and institutions from Taiwan, Somaliland, and other East African partners. Moreover, there were some import-export activities of products from Taiwan and some raw materials from Somaliland such as Frankincense. In terms of investment, China Petroleum Corporation (CPC) lead the way and pleaded to invest millions in Somaliland’s oil exploration and drilling activities. Most importantly, recent Somaliland’s delegation to Taiwan has met with the Minister of Economic Affairs of Taiwan and important trade and business associations in Taiwan to discuss future economic cooperation. To maintain these efforts, it is necessary to remove the basic barriers hindering economic cooperation and establish favorable trade and investment environment. One of the biggest challenges facing Somaliland in terms of international economic cooperation is the immature regulatory system which is sometimes incomplete or doesn’t exist at all.

Therefore, Taiwan and Somaliland authorities should prioritize collaborating in reviewing Somaliland’s trade and investment laws to establish global standard regulations which can attract international investors and can facilitate economic diversification and growth. Data and statistics are also necessary to make business and financial decisions, hence, the two countries should conduct joint feasibility studies and work together in the areas of research, exploration, and data collection. Another key element of economic development is to have a strong human infrastructure that is healthy, well-educated, and well-trained society. Taiwan can assist in the development of basic industrial human resources through establishing vocational schools, providing scholarships, training, industry visits, and exchange of human capital. In addition to the human resource development cooperation and policy reviews, Taiwan can also contribute by investing the critical infrastructure for economic development such as roads, telecommunications, water, energy, food processing manufacturers, and other sectors which are necessary to boost the country’s productivity. Taiwan has lending and investment programs for partner countries therefore funding Somaliland’s basic infrastructure can boost economic cooperation between the two countries.

As the president of Somaliland, H.E Musa Bihi has repeatedly said Somaliland’s people and government prefer to attract foreign investment and establish trade relations with friendly countries instead of receiving foreign aid. On the other hand, Taiwan understands the importance of Africa and is committed to coming back to the African continent for mutually beneficial economic cooperation. In conclusion, the existence of business and investment opportunities coupled with the recent bilateral efforts for economic cooperation and the willingness of authorities to work together can predict positive future economic collaboration.

ABOUT THE AUTHOR

Abdiqani Muse Hassan is currently a Ph.D. Candidate in International Business at Asia University in Taiwan. The author received his undergraduate degree from the University of Hargeisa in Somaliland. In 2019, the author graduated with an MBA degree from Asia University in Taiwan. The author is currently a research assistant at Asia university and a member of the Somaliland diplomatic mission in Taiwan.

Disclaimer: The viewpoints expressed by the authors do not necessarily reflect the opinions, viewpoints of the Somaliland Chronicle and its staff.

Notice: This article by Somaliland Chronicle is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License. Under this license, all reprints and non-commercial distribution of this work are permitted.

THE REPUBLIC OF SOMALILAND IS A BEACON OF AFRICAN HOPE IN THE INTERNATIONAL ORDER.

By

Staff

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February 14, 2022

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1) HISTORY OF RESILIENCE:

The people of Somaliland have a long history of resilience, determination, and selfless devotion to their country’s love. Somalilanders do not consider hardships and challenges as insurmountable barriers, but instead, they see it as opportunities for reflection, learning, growth, and development.

Somalilanders have the strength, fortitude, willpower, and determination to translate problems they experience into opportunities since they believe that the power to solve a problem or problems is always greater than the problem or problems themselves. Somalilanders’ patriotic instinct, their unyielding spirit of bravery and resilience is a true reflection of who they are as a nation.

These characteristics of resilience and perseverance have been demonstrated not only in the battlefronts but also during peacebuilding and sustained the nation’s stability in an unpredictable and volatile region. The economic, social, and democratic progress of the past 30 years is also an indisputable homemade success story. These elements and many more are something that really makes the people of the Republic of Somaliland VERY PROUD, UNIQUE, and SPECIAL!!

Somaliland’s outstanding accomplishments attained on all fronts; such as peace and stability, political, economic, and social and democratic progress constitute a MORAL CHALLENGE to THOSE WHO ARE CONTINUOUSLY DENYING Somaliland’s statehood and fundamental rights for self-determination of its people.

Further, Somaliland’s constructive engagement in regional and international issues for peace, stability, security, democracy, and development PRESENTS A HUGE MORAL AND ETHICAL DILEMMA to THOSE INTERNATIONAL BODIES (AU, IGAD, UN, EU, etc) that have shown a hardened adherence to the FICTION, UNREALISTIC AND DELUSIONAL NOTION OF A UNITY BETWEEN SOMALILAND AND SOMALIA!

2) NEVER EVER AGAIN JOIN AN UNREALISTIC UNION WITH SOMALIA!!

The international community is increasingly focusing on a country that failed to meet even the most basic criteria for statehood (SOMALIA) while ignoring a country that tremendously met all international terms and requirements to be recognized as a separate and independent country (REPUBLIC OF SOMALILAND).

The International Community must not and should not ignore the historical argument and plea of the people of Somaliland. The International Community, particularly the Western Powers need to assist a country that has succeeded in the strengthening of peace and security, democracy, respect for human rights, good governance, justice, and the rule of law for more than three decades.

Somaliland is the only functioning democracy in the region. As Ayn Rand once said, “You can ignore reality, but you cannot ignore the consequences of ignoring reality.” I believe the international community is making a very serious mistake by ignoring the reality on the ground in the Horn of Africa. Somaliland is the shining light over the horizon of the Horn of Africa and a beacon of African hope in the international order. Somaliland should have been long recognized as an independent country and it has long since deserved to be embraced by the global community.

To put it in a nutshell, the people of Somaliland have tested the real benefits and values of independence, freedom, peace, and democracy. The people of Somaliland will never ever join again whatsoever an unrealistic union with Somalia at the cost of their freedom, statehood, and independence.

ALLAH BLESS AND PROTECT THE REPUBLIC OF SOMALILAND.

ABOUT THE AUTHOR

Eng. Hussein Adan Igeh (Deyr) is the Former Minister of Trade & Investment and Former Presidential Spokesman.

Disclaimer: The viewpoints expressed by the authors do not necessarily reflect the opinions, viewpoints of the Somaliland Chronicle and its staff.

Notice: This article by Somaliland Chronicle is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License. Under this license, all reprints and non-commercial distribution of this work are permitted.

Exclusive Interview with Dr. Issa Kayd, Somaliland’s Minister of Foreign Affairs and International Cooperation

By

Staff

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February 6, 2022

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In a brief phone interview we caught up with Somaliland’s Minister of Foreign Affairs and International Cooperation Dr. Issa Kayd who was in Addis Ababa for the second time in less than a month where the African Union 35th Ordinary Summit is taking place, we asked him about the current trajectory of Somaliland’s existing and future bilateral ties, challenges, and his approach to getting the message out about Somaliland and the value it offers to the world.

Somaliland Chronicle: You have recently announced that Somaliland government is suspending the Somaliland – Somalia talks, could you tell us more about your thoughts on the talks in general and what has changed the government’s view about the talks with Somalia?

Dr. Kayd: The genesis of the talks was problematic in the first place and is no secret that the talks led nowhere and frankly the other side lacked any semblance of sincerity and made every effort to falsely repackage the talks as some sort of reconciliation between Somaliland and Somalia. The talks in their most basic form are not in Somaliland’s best interest and we have other priorities that require our full attention; we don’t want to waste our time in fruitless talks with Somalia anymore.

Somaliland Chronicle: There are many foreign ambassadors that are send to Somalia by their respective countries and Somaliland has traditionally worked with them calling them “Ambassador to Somaliland and Somalia “, doesn’t this send the wrong signal to these countries that Somaliland is seeking recognition from particularly the US and UK?

Dr. Kayd: What I can tell is is that we are reviewing many aspects of our foreign outreach and international relations but our posture is that we do not work with anyone who does not regard Somaliland as a sovereign and independent nation. The fact of the matter is that these ambassadors to Somalia do not spend a great deal of time in Mogadishu and when they are there are essentially hostages with body armor that are working in a warzone and they are well aware of the value that Somaliland has to their countries.

One example is the new US Ambassador to Somalia Mr. Larry Andre who is an experienced diplomat who was representing the United States in Djibouti recently and that uniquely positions him to understand the region and Somaliland’s strategic importance to the United States national security interest.

Somaliland Chronicle: Taiwan does not work with the US or the United Kingdom’s ambassadors to China, has Somaliland asked these countries, particularly the UK and the United States which seem to be very interested in Somaliland at the moment to send representatives exclusive to Somaliland?

Kayd: As I said, we are reviewing a lot of things and a lot of options are under consideration. We are working tirelessly to ensure Somaliland is rewarded for the amazing things it has achieved for the last 30 years.

Somaliland Chronicle: Lots of diplomatic barriers have come down in the the middle east in the wake of the Abraham Accords that resulted in many prominent Muslim and Arab countries establishing diplomatic ties with Israel and in a recent interview on i24 Dr. Edna Adan welcomed bilateral ties with Israel . Is Somaliland actively pursuing bilateral ties with the State of Israel?

First, we do not discuss what we are doing with individual countries but my answer once again, Somaliland is open for business and everyone is welcome to Somaliland.

Somaliland Chronicle: It has been a year and seven months years since Somaliland and Taiwan have established bilateral ties and signed agreements on cooperation on the sectors of Health, Agriculture and Information Technology, there is a sense that Somaliland has turned Taiwan into yet another aid agency and nothing tangible was achieved so far. What is your view on what Taiwan and Somaliland has achieved together so far and where do you see this relationship in the future?

Dr. Kayd: We have already achieved tremendous things together but there are always more opportunities for even greater cooperation between our nations. We a resource-rich country, we are asking Taiwan a hand on many fronts to fuel Somaliland’s development in responsibly exploring its abundant natural resources.

What we want from Taiwan is mainly knowledge transfer in the areas of cyber, security food and water security to ensure Somaliland is better prepared for the cyclical droughts exacerbated by climate change, commercial banking, and hydrological mapping to get a full sense of what minerals and other resources are present in our country to be able to attract and negotiate from a position of strength with extractive industry leaders.

On education, we are grateful for the scholarships that Taiwan has offered to our students but dozens of new graduates from Taiwanese universities are a drop in the bucket in the grand scheme of things and Somaliland needs thousands of subject matter experts in all sorts of disciplines so where we want to be with Taiwan is to get their higher education institutions to twin with public institutions to achieve this.

Another area that is extremely beneficial to both Taiwan and Somaliland is the Free Trade Zone where Taiwanese manufacturers can take full advantage of bringing their products closer to their end consumers in East Africa and beyond and even getting a leg up on their Chinese competitors.

Our intention is to take full control of our airspace and this is an area that Taiwan can be of great help to Somaliland, this is a priority for us and we believe we can learn from Taiwan’s vast expertise in this critical area.

Somaliland Chronicle: As the new Minister of Foreign Affairs and International Cooperation, in just few months there is a noticeable energy and a lot of things are happening what are you doing differently and what is your message to the world about Somaliland?

Dr. Kayd: What we are saying to the world is come and meet with us, come see what we have achieved, the fully-fledged multiparty-based democracy, and the organic security we have achieved. Somaliland is resilient and has unique safety nets that help resolve political disputes which are the hallmarks of democracy. We have two houses of parliament and a constitutional court which time and again have done a remarkable thing to ensure Somaliland’s hard-earned democratic bona fide remains intact. In fact, what we have achieved on our own is a template that can benefit many countries.

As a country that spends more than 30% of its budget on security and we have been an important security ally and a buffer both Djibouti and Ethiopia. We have been successful in keeping our 850km waterways free from piracy and have kept terrorism at bay.

My message to the world is very simple and it is that Somaliland is open for business; our doors are open for everyone who respects our sovereignty and wants to do business with us. Just as we extended our hand in friendship to Taiwan, we are open to establishing bilateral ties with every country on earth.

Somaliland Chronicle: Final question, you were part of President Bihi’s recent delegation to Addis Ababa, what is the purpose of your visit to Addis Ababa and is it a follow up to the previous visit and the meeting with the Ethiopian government and Prime Minister Dr. Abiy Ahmed?

Dr. Kayd: Addis Ababa is home to the African Union and is a major diplomatic hub in Africa and no, my visit is not related to our recent visit I am not going into details but this is an equally important event but unfortunately, this is not the right time to discuss it.

Investigative Reports

The White HouseStatements and ReleasesFebruary 24, 2022

The White HouseSpeeches and RemarksFebruary 24, 2022

What to expect

Ripple effects

1. The US promised to protect Ukraine

2. Clues to how Russia will wage war

3. Spies replaced by smartphones

4. Targeting the US with cyberattacks

5. Will war sink Putin’s stock with Russians?

The long history of false flag attacks

Global visibility, disinformation and cynicism

The challenge of credibility

False flag alternatives

Somaliland’s Market Potentials

Current and Future Collaborations

ABOUT THE AUTHOR

1) HISTORY OF RESILIENCE:

2) NEVER EVER AGAIN JOIN AN UNREALISTIC UNION WITH SOMALIA!!

ABOUT THE AUTHOR

Somaliland Chronicle: You have recently announced that Somaliland government is suspending the Somaliland – Somalia talks, could you tell us more about your thoughts on the talks in general and what has changed the government’s view about the talks with Somalia?

Somaliland Chronicle: Taiwan does not work with the US or the United Kingdom’s ambassadors to China, has Somaliland asked these countries, particularly the UK and the United States which seem to be very interested in Somaliland at the moment to send representatives exclusive to Somaliland?

Somaliland Chronicle: As the new Minister of Foreign Affairs and International Cooperation, in just few months there is a noticeable energy and a lot of things are happening what are you doing differently and what is your message to the world about Somaliland?

Somaliland Chronicle: Final question, you were part of President Bihi’s recent delegation to Addis Ababa, what is the purpose of your visit to Addis Ababa and is it a follow up to the previous visit and the meeting with the Ethiopian government and Prime Minister Dr. Abiy Ahmed?

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The White House
Statements and Releases
February 24, 2022

The White House
Speeches and Remarks
February 24, 2022