Voice of the White House January 2, 2005

“I see that Putin is getting even with both the Ukraine and the U.S. for the so-called ‘Orange Revolution’ last year. We know that the CIA bribed an anti-Moscow element in the Ukraine to rebel and declare themselves free of Russian influence. Like most CIA disruptions, it was a nasty business and while it appeared to have worked, in the end it will prove to be an utter disaster. For example, the rich (in oil and coal) Donetz basin in eastern Ukraine is almost entirely Russian in population and any attempt on the part of American business interests to get their hooks into this would immediately result in a demand from the locals for a referendum to separate from the Ukraine and, when that vote passed, to request a permanent union with the Russian Republic. Putin has already agreed to do this and the main motive for the CIA-fomented revolt will be completely nullified.

This whole business has been about oil. Since I was personally involved in some of this, let me enlighten you in a brief, and perhaps simplistic way.

Regan toppled the Communist regime by using the completely fake “Star Wars” program, that would never have worked but which drove the badly shaken Soviets into eventual bankruptcy trying to keep up with it. The Soviets, by the way, were far more afraid of the U.S. launching a strike against them than they were concerned with attacking America.

Once the corrupt and over-buraucraticized Soviet Union fell apart, the United States had an unparalleled opportunity of working politically and economically, with the new Russian government. Instead, and true to form, they installed the drunken Yeltsin (who was entirely in our pocket) and then tried to take over the enormous and potentially very lucrative Russian oil and gas fields.

A group of thugs, again sponsored by the U.S., took over the newly-privatized oil and gas industry, aided by their co-religionists in the World Bank and the IMF. Once they had their hands on everything, they immediately sold out a controlling interest in their extorted holdings to a consortium of American and British oil developers.

But they entirely underestimated the apparently colorless Vladimir Putin. A former Colonel in the KGB, Putin followed the old Italian dictum that he who goes softly goes safely and he who goes safely goes far.

Little by little, Putin regained state control over the oil and gas resources, hounding the Oligarchy out of control, either jailing them or forcing them into exile. He managed to get his hands on much of the bribe money, forcing Bush to beg for its return when he met with Putin at Bratislava last year.

Putin’s response to what must have been an embarrassing question on the part of the oil-industries front man, Bush, was that since the deals had been made with the now-departed Oligarchy, perhaps the oil people might wish to sue them in Russian civil courts. He, himself, could do nothing.

At the same time this was happening, the CIA, working with the same oil people, instigated political upheavals in some of the former Soviet Republics who controlled land over which vital oil and gas pipelines had to cross to bring these products to ports where they could be shipped to the West.

They were successful in the Ukraine and Georgia but Putin struck back and regained <>de facto<> control over sufficient territory to effectively block a pipeline. Putin also began to develop the Russian oil and natural gas fields with the idea of bringing large amounts of foreign currency into the states’s coffers. He has made deals with Venezuela, China, Japan and other countries and now, in retaliation for the rebellion in the Ukraine, shut off their natural gas shipments.

Since the Ukraine has no money to pay Putin’s greatly inflated gas prices (for the Ukraine only), that state has privately appealed to the United States for financial aid but just as privately been turned down. The solid Russian control over their gas production coupled with the probable defection of the vital Donetz area has made the Ukraine very unattractive to the United States. As we did in Afghanistan and will do in Iraq, we have quietly abandoned them.

When the gas stops and the savage Russian winter grows colder, there will no doubt be another change of government in the Ukraine.

Vladimir Putin is far from stupid and Bush is far from intelligent with the result that the former’s entirely legitimate economic warfare will do more permanent damage to U.S. economy than any military attack ever could.

Since utilizing economic warfare to disrupt and control is a long-time American specialty , it is clearly apparent that Putin believes that it is indeed lawful to be taught by your enemies.”

See our Inside the White House archive: