Letter To Editor | Ukrainian Conflict And Western Oil Cartels

Representational Photo

THE conflict in Ukraine is not about national sovereignty, aggression but it's ultimately about oil cartels establishing monopoly over setting oil prices. Let me explain: right now Germany and Russia have already built the Nordstream2 pipeline. Germany only needs to initiate it, but it won't. Why?

In order to understand Germany's decision not to initiate Nordstream2 yet, we need to understand the current global capitalist order that we call "imperialism". It is when large scale banks and massive cartels (or corporations) privately own much of the global capitalist economy.

The U.S Empire's economic hegemony is based on Western oil cartels having a collective monopoly over oil and its prices determine the value of the U.S dollar. Anything that breaks this collective monopoly undermines the economic hegemony of the U.S Empire. Moreover, economic aggression against Iran by U.S and allies is a living example of what the U.S can do to someone who denies the hegemony of "Petrodollar". But what does this have to do with Nordstream2?

If Germany sets up the Nordstream2 pipeline, the western Oil cartels based in the U.S and Britain no longer have the collective monopolistic power to fix the price of oil worldwide. If they don't collectively control the price of oil worldwide, they can't maintain/enhance the value of the U.S dollar. Furthermore, Germany and Russia breaking this monopoly could potentially undermine the value of the US dollar. This gives them a new found leverage.

The U.S Empire and the western oil cartels don't want this new arrangement, where Germany and Russia have this new leverage, so they're giving Germany an ultimatum: Either you stay in NATO with us by giving up Nordstream2 or you're on Russia's side and face dire consequences like Iran.

The U.S Empire and western oil cartels are pushing for the war on Ukraine because they want to cancel Nordstream2 pipeline and force Russia to become reliant on Ukraine to transport its oil. This maintains western oil cartel's monopoly over the price of oil.

Furthermore, as long as Russia owns its own oil, the western oil cartels and the U.S Empire's monopoly over the price of oil is potentially vulnerable because Russia has so much oil, so they want to expand NATO into Ukraine as a first step towards colonising Russia.

They want to privatize all of Russia's natural resources including and especially oil in order to guarantee that western oil cartels based in the U.S and U.K maintain their monopoly over oil and control prices to maintain/ augment the value of the U.S dollar.

Doing this meant that they've to get rid of the Russian Federal Government, where much of the natural resources including oil are state owned assets that are used for economic stability. This means privatizing State-Owned assets and reducing Russia to its 1991 state.

If we look through the prism of Islam on this matter as we should , we oppose this global capitalist order that we call "imperialism",  based on Lenin's writings "imperialism is the highest stage of capitalism". We wish to undermine the monopoly of western oil cartels that is the economic basis of U.S hegemony.

The reason why Ukraine is so important to Oil cartels is that since oil from Russia to Europe is currently delivered through Ukraine, controlling Ukraine means controlling the land pipelines in Ukraine. All the oil that passes through can be taxed to match the global oil prices set by western oil cartels. As long as oil cartels don't own oil in Russia, they can only control the amount of oil that Russia can deliver to the world and at what price and this is the reason why this system is called "Petrodollar".

It's pretty simple that even a common man in any country can't buy oil without and unless it's purchased with U.S dollar, this is the reason why the U.S dollar has any value in the first place. Countries that wish to purchase oil must convert their currency to U.S dollars to buy oil, this gives a ton of value to the U.S dollar.

In effect, controlling Oil prices and the supply of oil is essential to the strength and survival of the U.S dollar hegemony. Similar is the case in many middle eastern countries and African countries, where the U.S is spending billions of dollars to maintain the hegemony of "Petrodollar", by creating proxies and fake enemies to enter any state and exploit the resources of any resourceful country.

In Conclusion, it's the duty of every free human to understand the oppression of U.S and western Oil cartels and fight against it.

Majid Rizvi 

[email protected]

Follow this link to join our WhatsApp group: Join Now

Be Part of Quality Journalism

Quality journalism takes a lot of time, money and hard work to produce and despite all the hardships we still do it. Our reporters and editors are working overtime in Kashmir and beyond to cover what you care about, break big stories, and expose injustices that can change lives. Today more people are reading Kashmir Observer than ever, but only a handful are paying while advertising revenues are falling fast.



Leave a Reply

Your email address will not be published.