Peter Zeihan says the abysmal performance of the Russian Army is going to have a whole lot of ramifications around the world, many in Russia’s own near abroad. “It means that the image of the Russians as a regional power, much less a global one, is gone, and it’s not coming back.”
Some takeaways:
“The countries that had signed on to kind of a Russian Alliance, if you will, [they’re] on their own completely, and that provides opportunities for their rivals to take matters into their own hands.”
Belarus: “Here’s a country of 10 million people that has basically hitched itself to Putin’s star. And the Poles, the Latvians, the Lithuanians, the Estonians, the Finns, and the Swedes they have been chomping at the bit for years to try to take Alexander Lukashenko of Belarus down to size and basically peel Belarus out of the Russian orbit. They will now have the opportunity, and it’s unlikely that anyone in Europe or the United States is going to try to stand in the way.”
“Unless Lukashenko sues for peace with the Balts and the Nordics, very quickly we should count on seeing him being brought up on war crimes before very long. Because after all he did provide the access that was necessary for the assault on Kiev early in the war.”
Georgia: “Here I do expect things to be a little bit more circumspect. The Georgians tried to call Russia’s bluff and invade their former secessionist Republics of North Ossetia and Abkhazia several years ago in 2004, and it was a trap and the Russians were able to destroy the Georgian Army. So the Georgians are not going to do this until a couple of other countries in the region have already pulled this off successfully.”
Moldova:
There’s a small secessionist republic there called Transnistra. It’s only 10 percent of the population of a country of like three and a half million people. There’s not much going on there, but the Russians intervened decisively right at the end of the Soviet collapse to basically make sure that Transnistra could be functionally independent under Russian sponsorship, but unlike the Georgian secessionist territories, which share a land border with Russia proper, Transnistra is on its own. The only way to supply it is through Ukraine, and that has obviously stopped. So the Moldovans and their sponsors in Romania have now a vested interest in ending this historical aberration, and I would expect to see that being wrapped up within a year or two.
Israel: Without big brother Russia providing help, Syria may be screwed.
The Russians have very publicly, unfortunately for them, relocated a lot of hardware from Syria to Ukraine, specifically air defense equipment to help them with their assaults. Which means that if you are Israel, the only thing that is standing in your way of going after the Syrian regime is someone from the Biden Administration saying “You know what? We really don’t want a nuclear event to erupt because there are Russian troops involved.” Well, the tone of the Biden Administration in the last 72 hours has kind of changed. Now it’s more of “You kids go have fun” sort of vibe, so I expect us to see some very interesting pyrotechnics between the Israelis and the Syrians in a very short period of time, followed by the Syrians suing for peace. Which means that we get to revisit the entire Syrian Civil War now without the Russians being players.
Two caveats from my viewpoint: 1. Given the history of Israeli striking Syria with impunity several times over the past decade, with possibly one Israeli plane hit during that period, I don’t think Russian anti-aircraft equipment have provided any significant deterrent to Israel doing whatever it wanted in Syria. I view it more likely that Israel views a weakened Assad continually beset by a grinding civil war against numerous enemies a preferable option to taking him out entirely. 2. Not sure where Zeihan is getting his information on a change in the Biden Administration’s messaging to Israeli, but I readily concede that he likely does have better sources than I do. It may also be that the most recent failure of the asinine Iran deal has changed the collective mind of whatever passes for a Biden brain trust.
Speaking of Iran: “Tehran has lost its primary weapons sponsor, and its primary Security Council sponsor, and that is going to force the Iranians to think differently and act differently in every theater.”
Plus possible policy changes in (or toward) Cuba and Venezuela.
You may remember Peter Zeihan’s analysis of world agricultural output in the wake of of deglobalization and the Russo-Ukrainian War, and his forecast of famine late this year.
That was just before the Ukraine export deal was signed. Now he’s looked at the facts and run the numbers, and says it isn’t going to help much.
Takeaways:
“Right now the Ukrainians have about 18 million metric tons stored up in their silos at or adjacent to their ports. That’s a lot that needs to move. That is in excess of half of a normal harvest for the country.”
“On August 1st we got our first ship, the Razoni, to dock to load up and to leave for Lebanon. It’s carrying 26,000 metric tons. So we need 700 more ships of this size if we’re going to get that grain out.”
“The Ukrainian harvest starts in less than 45 days. So you’re talking about needing to get a dozen or so vessels in there every single day. So far we’ve had one. I don’t have a lot of hope for this.” (Note: Since then we’ve had four more.)
“Right now the Ukrainians have nowhere to put it. Their silos are full from last year’s harvest. They weren’t able to export because the war started back in February.
“Even if the farmers were able to work their fields and not be molested by Russian troops (and remember we’ve already had mass evacuations from eastern and southern Ukraine) the problem remains that they can’t get fuel into the country. So you’re talking about needing to harvest industrial levels of wheat without industrial equipment.”
“The likely end result here is that this is the last year that Ukraine participates in international grain markets. They simply don’t have the capacity to get stuff up at a scale. In fact the only place that they might be able to ship stuff is by rail and at most with significant upgrades that have not yet been done. They can probably only ship about one-fifth of their normal produce out that way the rail lines are just not designed for that kind of bulk cargo.”
Bottlenecks have arisen due to the different rail gauge used in Ukraine, dating back to the Soviet era. That means shipments are being transferred to new wagons at the border.
Ukrainian Infrastructure Minister Oleksandr Kubrakov has targeted the upgrading of rail infrastructure in western Ukraine as a priority the EU should focus on. “Rail transport can partially undertake all the transportation of agricultural products, particularly grain,” he said. “However, transporting goods is difficult due to western Ukraine’s low border-crossing capacity, which is not designed for transshipping such volumes.”
“Some 768,300 metric tons of Ukrainian grain was exported by rail between May 1 and May 16.”
Back to Zeihan: “And a lot of them have to transit little territory called Transnistra [in Moldavia], which is under Russian control.”
The sobering conclusion:
You remove the world’s fourth largest wheat exporter from the market and you’re going to look at cascading problems. Not just with food prices and malnutrition, but civil conflict and breakdown, most notably in the Middle East. The last time we had a doubling of global wheat prices, we saw the Arab spring back in 2011. What we’re dealing with is an order of magnitude more complicated and deeper rooted. And to think that we’re only going to have doubling of prices is ridiculously optimistic.
Well, it’s a good thing the Middle East isn’t know for having populations full of unstable hotheads looking for an excuse to kill each other at the drop of a hat…