TRUMP'S DODGY DEALS
A year ago the message from the White House was firm. Europe must stop buying Russian oil because it was funding Russia's war machine. Once Europe does its part, implied the White House, then the United States might start to take their pro-Ukrainian position seriously and commit more resources to ending 'Europe's war'. It was always a disingenuous argument.
With arrant hypocrisy, Trump last week announced a deal to purchase diesel from Russia. In his words it was 'a great announcement for Americans and the world.' He said the parties had agreed that Russia would release 300,000 tonnes immediately, followed by 500,000 tonnes in November, and millions more tonnes after that. 'Diesel prices will be coming down in record numbers,' he trumpeted, 'and fast.'
The part he won't mention is that the reason diesel prices are so high is his decision to start a war in the Middle East. Oil prices were below $70/barrel when the US started bombing Iran; now they are hovering around $100/barrel. Diesel, which is made from crude oil, has gone up in lockstep: from an average price at US pumps of under $4/gallon in February to over $6/gallon today (source).
Only a fortnight earlier Trump announced a deal to buy potash from Belarus. Since this makes no economic sense – Canada has long met nearly all US demand far more inexpensively – the main motivation behind the US decision is to harm Canadian exports at a time of tensions between the two neighbours.
With these agreements, the US is cutting off its nose to spite its face. It is damaging its alliances, leaving Europeans exasperated with the unreliability of the current US administration. For years the US lobbied Europeans to put more sanctions on Russia and Belarus, now Trump is loosening US sanctions, cutting deals behind allies' backs, and expecting everyone to praise him for his clumsy dealmaking.
How dare they!
Think back to last September. The context was European leaders' efforts to obtain security guarantees for Ukraine at a time when the US was withdrawing much of its support to Kyiv. The Europeans desperately wanted the US onside and President Donald Trump joined an online meeting of the 'coalition of the willing' chaired by France's Emmanuel Macron. Reuters quoted a White House source: 'President Trump emphasised that Europe must stop purchasing Russian oil that is funding the war – as Russia received 1.1 billion euros in fuel sales from the EU in one year.'
