Russia-Ukraine War: Lessons that Biden Failed to Learn and Ukraine Paid Hefty Price For

Ukrainian servicemen cry near the coffin of their comrade Andrii Trachuk during his funeral service on Independence square in Kyiv, Ukraine, Friday, Dec. 15, 2023. (AP Photo/Evgeniy Maloletka)
Ukrainian servicemen cry near the coffin of their comrade Andrii Trachuk during his funeral service on Independence square in Kyiv, Ukraine, Friday, Dec. 15, 2023. (AP Photo/Evgeniy Maloletka)
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Russia-Ukraine War: Lessons that Biden Failed to Learn and Ukraine Paid Hefty Price For

Ukrainian servicemen cry near the coffin of their comrade Andrii Trachuk during his funeral service on Independence square in Kyiv, Ukraine, Friday, Dec. 15, 2023. (AP Photo/Evgeniy Maloletka)
Ukrainian servicemen cry near the coffin of their comrade Andrii Trachuk during his funeral service on Independence square in Kyiv, Ukraine, Friday, Dec. 15, 2023. (AP Photo/Evgeniy Maloletka)

As we welcome the New Year and the Russia-Ukraine conflict is approaching its second anniversary, many on both sides of the Atlantic are wondering whether the biggest war in Europe since World War II will come to an end this year. After all, Washington already has supplied to Kiev more than $113 billion in cash and high-tech weaponry, and US President Joe Biden is trying to strongarm Congress into approving another $67 billion. Regretfully, the answer is a resounding “No.”
Contrary to the hopes of many, not only will 2024 not bring peace, it will likely see more bloodshed, as the key warring parties – Russia, Ukraine, and the United States (by proxy) – are all postured for an endless war. None of the conflict participants appear to be interested in ending the hostilities. To the contrary, all three are incentivized to keep going.
Russian President Putin is increasing the maximum number of Russian armed forces by 170,000 servicemen, to its full-strength of 1,320,000 personnel. He also has recently approved a major increase in military spending. In 2024, expenditures on defense and security combined will reach 40 percent of Russia’s budget, a 70 percent increase from 2023. Russia’s 2024 revenue target of $391.2 billion is based on high oil prices. The Russian government is attracting new recruits by offering a staggering sum of money for signing to serve in the military. Contract soldiers who join the so called ‘elite combat division’ get paid a whopping one million rubles (around $11,000 ).
Despite the ultimate failure of the summer counter-offensive, Ukraine’s President Volodymyr Zelensky refuses to give up. Zelensky announced a “new phase of war” on November 30, having acknowledged persistent shortages of weaponry, shriveling forces, and the risk of losing the flow of security assistance and military hardware from the United States and Europe, as the Israel-Hamas conflict has overshadowed the Russia-Ukraine war.
“Look, we are not backing down, I am satisfied,” Zelenskyy said in an exclusive interview with The Associated Press in Kharkov in northeastern Ukraine. The Ukrainian comedian-turned- president, continues to plead the White House for more American greenbacks, having sent a delegation of his top officials to Washington last week.
“Nobody believes in our victory like I do. Nobody,” Zelensky told TIME magazine in October, despite the fact that his own top general recently admitted that the war was unwinnable. The commander in chief of Ukraine’s armed forces General Valeriy Zaluzhnyi, in an interview in The Economist on November 1st , said "there will most likely be no deep and beautiful breakthrough," speaking about the conflict’s stalemate.
Although it is clear to any serious intelligence analyst that Ukraine has no military path to victory, President Biden continues to repeat his 'as long as it takes' mantra, which pretty much summarizes the misguided and failed policy of his Administration towards the Russia-Ukraine conflict. On December 6, at the virtual meeting of the G7 nations -- comprising Japan, the United States, Canada, the United Kingdom, Germany, France, Italy and the European Union -- Biden reiterated America’s commitment to support Ukraine for “as long as it takes.”
“Do not let Putin win,” Biden implored Republicans on the same day, urging them to approve additional funding to Kiev. The US Senate blocked the $110 billion aid package for Ukraine and Israel because Republican lawmakers refused to support it without major changes to Biden’s border policy, as foreign migrants have been flooding the United States through its Southern border.
"If Putin takes Ukraine, he won’t stop there," said Biden, likely aiming to frighten everyone that Putin would attack a NATO ally. Biden threatened the possibility of American forces having to fight Russian troops, if Ukraine runs out of money. This scare tactic contradicts Washington’s own narrative that the Russian military is so weak and incompetent that it couldn’t even topple Kiev and Zelensky. Does Biden truly believe that Putin is a idiot, or a suicidal lunatic? An attack on a NATO country would trigger the Article 5 “collective defense” clause, putting Russia in a direct kinetic clash with the US and NATO forces that are conventionally superior to Moscow’s military. Unlike Biden, Putin – although a ruthless leader -- is a rational thinker and highly intelligent. Putin’s primary goal is to restore Russia’s strategic security buffer, by ensuring that no former Soviet state, other than the Baltics, will become part of NATO. Moscow finds the risk of the adversarial alliance stationing forces, bases or military hardware in close proximity to Russia’s borders unacceptable, just as Washington would find the presence of China or Russia’s military assets in Canada or Mexico equally unacceptable.
Biden may be surprised to learn this but Vladimir Putin already has won the war in Ukraine, based on his definition of victory. Putin invaded Ukraine to enforce his red line, keeping Ukraine out of NATO. He has accomplished this goal. So long as Ukrainian forces are engaged in a protracted fight with the Russians and Kiev does not control all of Ukrainian land, Ukraine does not meet the admission requirements – sovereignty, territorial integrity and absence of an on-going conflict.
Moreover, Ukraine is no longer a viable country as it cannot exist independently, without foreign financial support. Once called the “bread basket of Europe,” today, Ukraine is in ruins. Its agricultural base is destroyed and industrial foundation, including critical infrastructure, is severely damaged, as its urban centers and rural areas have been pounded, relentlessly by Russian missiles and artillery strikes, during almost two years of ground combat. To crown it all, Ukraine, the largest country on the continent, is being depopulated, with casualties approaching a quarter of a million dead or severely wounded, and millions of citizens displaced.
This unconscionable humanitarian tragedy is a result of Washington’s strategic incompetence and President Biden’s naïve and incompetent foreign policy towards Russia and Ukraine. Only historically illiterate bunch would think that inviting Ukraine -- on which Russia relied, for centuries, for its security – was a brilliant idea. Incredibly, the “experts” of Washington, the birthplace of the Monroe Doctrine, failed to anticipate that Putin who is in charge of “the second (best) army in the world,” according to Zelensky’s own admission to the Associated Press.
President Biden failed to learn from the Afghanistan fiasco that money and technology do not win wars. Strategy does. Team Biden never bothered to develop one. As a former senior official in the US Defense Intelligence Agency and one of the top three analysts on Russian doctrine and strategy in the intelligence community, I personally briefed President Obama’s White House national security staff on Putin’s plans and Russia’s war-fighting strategy multiple times. I also briefed countless top US military commanders and Pentagon officials, as well as NATO ministers and military leaders.
As vice president at the time, the go-to person on Ukraine policy, and the architect of the failed Russia "reset" strategy, Joe Biden had to be made aware of those briefings. President Biden and his team, many members of which, including his then-national security adviser and current Secretary of State Anthony Blinken, joined him in his administration, must have received similar briefings prior to and during his presidency, given Russia’s ranking by the US intelligence community as a Tier 1 threat to US security.
The US president had ample time to act to deter Putin, negotiate a peaceful solution, prevent Russia’s invasion of Ukraine, and avoid the exorbitant outflows of US taxpayers’ earnings to Kiev for what has become an unwinnable war. Instead, Biden has chosen to have Ukrainians pay for his failures with their blood. Alternatively, and quite possibly, Team Biden intentionally prolonged the Russia-Ukraine war by flowing weaponry to Kiev, in order to weaken Russia’s military and economy – just as Secretary of Defense Lloyd Austin stated a few months ago.
With Russia's population being more than three times of Ukraine's and Putin’s preparedness to throw more and more bodies at the problem, it looks like Washington will be fighting Moscow until the last Ukrainian – all in the name of upholding "freedom and democracy.”



Iran's Revolutionary Guards Extend Control over Tehran's Oil Exports

Iranians drive as smog obscures the skyline in Tehran, Iran, 18 December 2024. EPA/ABEDIN TAHERKENAREH
Iranians drive as smog obscures the skyline in Tehran, Iran, 18 December 2024. EPA/ABEDIN TAHERKENAREH
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Iran's Revolutionary Guards Extend Control over Tehran's Oil Exports

Iranians drive as smog obscures the skyline in Tehran, Iran, 18 December 2024. EPA/ABEDIN TAHERKENAREH
Iranians drive as smog obscures the skyline in Tehran, Iran, 18 December 2024. EPA/ABEDIN TAHERKENAREH

Iran's Revolutionary Guards have tightened their grip on the country's oil industry and control up to half the exports that generate most of Tehran's revenue and fund its proxies across the Middle East, according to Western officials, security sources and Iranian insiders.

All aspects of the oil business have come under the growing influence of the Guards, from the shadow fleet of tankers that secretively ship sanctioned crude, to logistics and the front companies selling the oil, mostly to China, according to more than a dozen people interviewed by Reuters.
The extent of the Iranian Revolutionary Guard Corps' (IRGC) control over oil exports has not previously been reported.

Despite tough Western sanctions designed to choke Iran's energy industry, reimposed by former US President Donald Trump in 2018, Iran generates more than $50 billion a year in oil revenue, by far its largest source of foreign currency and its principal connection to the global economy.

Six specialists - Western officials and security experts as well as Iranian and trading sources - said the Guards control up to 50% of Iran's oil exports, a sharp increase from about 20% three years ago. The sources declined to be identified due to the sensitivity of the matter.

Three of the estimates were based on intelligence documents about Iranian shipping while others derived their figures from monitoring shipping activity by tankers and companies linked to the IRGC. Reuters was unable to determine the exact extent of the IRGC's control.

The IRGC's growing domination of the oil industry adds to its influence in all areas of Iran's economy and also makes it harder for Western sanctions to hit home - given the Guards are already designated as a terrorist organization by Washington.

Trump's return to the White House in January, however, could mean tougher enforcement of sanctions on Iran's oil industry. The country's oil minister said Tehran is putting measures in place to deal with any restrictions, without giving details.

As part of their expansion in the industry, the Guards have muscled in on the territory of state institutions such as the National Iranian Oil Company (NIOC) and its NICO oil trading subsidiary, according to four of the sources.

When sanctions hit Iran's oil exports years ago, the people running NIOC and the wider industry were specialized in oil rather than how to evade sanctions, added Richard Nephew, a former deputy special envoy for Iran at the US State Department.

"The IRGC guys were much, much better at smuggling, just terrible at oil field management, so they began to get a larger control of oil exports," said Nephew, who is now a researcher at Columbia University.
The IRGC, NIOC, NICO and Iran's foreign ministry did not respond to requests for comment.
RISK APPETITE
The IRGC is a powerful political, military and economic force with close ties to Supreme Leader Ali Khamenei.
The Guards exert influence in the Middle East through their overseas operations arm, the Quds Force, by providing money, weapons, technology and training to allies Hezbollah in Lebanon, Hamas in Gaza, Yemen's Houthis and militias in Iraq.
While Israel has killed a number of senior IRGC commanders over the past year, the oil specialists in its ranks have been able to continue their operations, two Western and two Iranian sources said.
The Iranian government began allotting oil, instead of cash, to the IRGC and Quds Force around 2013, according to Nephew.
The government was under budgetary pressure then because it was struggling to export oil due to Western sanctions imposed over Iran's nuclear program.
The IRGC proved adept at finding ways to sell oil even under sanctions pressure, said Nephew, who was actively involved in tracking Iranian oil activities then.
Iranian oil revenues hit $53 billion in 2023 compared with $54 billion in 2022, $37 billion in 2021 and $16 billion in 2020, according to estimates from the US government's Energy Information Administration.
This year, Tehran's oil output has topped 3.3 million barrels per day, the highest since 2018, according to OPEC figures, despite the Western sanctions.
China is Iran's biggest buyer of oil, with most going to independent refineries, and the IRGC has created front companies to facilitate trade with buyers there, all the sources said.
Oil export revenues are split roughly evenly between the IRGC and NICO, said one source involved in Iranian oil sales to China. The IRGC sells oil at a $1-$2 barrel discount to prices offered by NICO because buyers take a bigger risk buying from the Guards, the person said.
"It depends on a buyer's risk appetite, the higher ones will go for the IRGC, which the US designates as a terrorist group."
Two Western sources estimated that the IRGC offered an even bigger discount, saying it was $5 per barrel on average but could be as much as $8.
The oil is allocated directly by the government to the IRGC and Quds Force. It's then up to them to market and ship the oil - and work out a mechanism for disbursing the revenue, according to the sources and intelligence documents seen by Reuters.
NIOC gets a separate allocation.
CHINESE FRONT
One of the front companies used is China-based Haokun. Operated by former Chinese military officials, it remains an active conduit for IRGC oil sales into China, despite Washington hitting it with sanctions in 2022, two of the sources said.
The US Treasury said China Haokun Energy had bought millions of barrels of oil from the IRGC-Quds Force and was sanctioned for having "materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, the IRGC-QF".
In one oil transaction dated March 16, 2021 involving Haokun and parties including Turkish company Baslam Nakliyat - which is under US sanctions for its trading links to the IRGC - a payment was processed via US bank JP Morgan and Turkish lender Vakif Katilim, according to the intelligence documents.
The transaction took place before the companies were sanctioned. Reuters has no indication JP Morgan or Vakif Katilim were aware of the Iranian connection - highlighting the risks of companies getting inadvertently caught up in the shadow trade.
JP Morgan declined to comment. Vakif Katilim said in a statement: "Our bank performs its activities within the framework of national and international banking rules."
Haokun declined to comment. Baslam did not respond to a request for comment.
'GHOST FLEET'
Quds Force commander Qassem Soleimani, who was killed in a US strike in Baghdad in 2020, had set up a clandestine headquarters and inaugurated that year for the unit's oil smuggling activities, initially staffed by former oil minister Rostam Ghasemi, according to the intelligence documents.
Reuters could not determine where all the oil money funneled through the IRGC goes. The IRGC headquarters and day-to-day operations has an annual budget of around $1 billion, according to assessments from two security sources tracking IRGC activities.
They estimated that the IRGC budget for Hezbollah was another $700 million a year.
"Exact figures remain undisclosed, as Hezbollah conceals the funds it receives. However, estimates are that its annual budget is approximately $700 million to $1 billion. Around 70%-80% of this funding comes directly from Iran," Shlomit Wagman, former director general of Israel’s Money Laundering and Terrorism Financing Prohibition Authority, said separately.
Hezbollah did not respond to a request for comment.
The former Secretary General of Hezbollah, Hassan Nasrallah, who was killed in an Israeli airstrike, said Iran provided the group's budget, including for salaries and weapons.
Iran's main tanker operator NITC, which previously played a key role in exports, also now provides services to the IRGC.
It executes ship-to-ship transfers of Iranian oil onto vessels operated by the IRGC to ship crude into China, according to sources and ship-tracking data. Such transfers are common practice to help disguise the origin of the oil tankers carry.
NITC did not respond to a request for comment.
In August, Israel's National Bureau for Counter Terror Financing, part of the country's defense ministry, imposed sanctions on 18 tankers it said were involved in transporting oil belonging to the Quds Force.
In October, the US Treasury slapped sanctions on 17 separate tankers it said formed part of Iran's "ghost fleet", outside of NITC vessels. It followed up with sanctions on a further 18 tankers on Dec. 3.