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Putin Says the West Is Taking Russia’s ‘Red Lines’ Too Lightly

Putin Says the West Is Taking Russia’s ‘Red Lines’ Too Lightly

The Russian leader says relations with US are ‘unsatisfactory’ and is open to more talks

On Thursday, Russian President Vladimir Putin said Western powers are taking Moscow’s “red lines” too lightly.

“We’re constantly voicing our concerns about this, talking about red lines, but we understand our partners — how shall I put it mildly — have a very superficial attitude to all our warnings and talk of red lines,” Putin said in a foreign policy speech.

The Russian leader has warned NATO against expanding cooperation with Ukraine, but NATO countries continue to do so. This week, the UK signed a new navy deal with Kyiv to build warships for Russia’s neighbor.

The US and NATO have stepped up military activity in the Black Sea, which Moscow views as a major provocation. Putin described this activity as going “beyond boundaries” and said a Western strategic bomber recently flew within 20 kilometers (12.5 miles) of Russia’s borders. US B1-B bombers recently flew over the Black Sea, but it’s not clear how close they were to Russian territory.

Putin said that NATO has destroyed all mechanisms for dialogue with Moscow. The military alliance recently expelled diplomats from Russia’s mission to NATO in Brussels, and Moscow responded by closing the mission.

Putin described relations with the US as “unsatisfactory,” but said he was open to more talks. “However, I want to say once again, we are open to contacts and exchanges of opinion, constructive dialogue,” he said.

 

“No Extra Gas Booked” – European Gas Prices Surge After Putin Punks Freezing Continent

“No Extra Gas Booked” – European Gas Prices Surge After Putin Punks Freezing Continent

In late October, the market rejoiced and nat gas prices puked (even as we warned this was just the latest joke the Kremlin was playing at gullible Europe’s expense) after news that Russian President Vladimir Putin had asked Gazprom to “gradually” raise volumes to Europe starting November 8. So fast forwarding to November 8, i.e., today when not only is there no gas being shipped to Germany via Russia’s anchor Yamal pipeline as of today…

… but there are there no signs the continent will get any relief any time soon, with Gazprom moments ago tightening the proverbial (and literal) squeeze on Europe’s gas supply:

  • GAZPROM DIDN’T BOOK EXTRA GAS PIPELINE CAPACITY FOR TUESDAY
  • GAZPROM OPTS AGAINST SENDING MORE GAS TO EUROPE VIA UKRAINE
  • NO PIPE SPACE BOOKED TO SHIP EXTRA GAS INTO GERMANY’S MALLNOW.

Today’s squeeze follows a supply shock on Sunday, when no extra capacity to send additional supplies to Europe was booked in auctions. That’s a disappointment for traders who had been counting on Gazprom to follow Putin’s orders to ease the continent’s supply crunch.

Oops.

Natural gas prices have more than tripled this year as Europe started the heating season with the lowest inventories in more than a decade. Russia had been keeping supplies capped, but traders were hoping for relief after Putin ordered Gazprom to send more gas to Europe from Nov. 8, when domestic storage sites were set to be full. Meanwhile, after peaking above €160 then tumbling back to €60, Dutch nat gas futures have resumed their steady climb again as the prospect of a freezing European winter once again gets all too real.

…click on the above link to read the rest of the article…

Putin Lays Cards Down: Approve Nord Stream 2 To Get More Gas

Putin Lays Cards Down: Approve Nord Stream 2 To Get More Gas

Russia could immediately increase natural gas deliveries to Europe as soon as German authorities approve the Nord Stream 2 pipeline, the Financial Times reports, citing President Vladimir Putin as saying gas can be delivered “the day after tomorrow” if approval is granted “tomorrow”.

Putin said Russia could deliver an additional 17.5 billion cu m of gas if the new pipeline gets the green light. This amount, according to the FT, is equal to a tenth of Russian gas deliveries to Europe and Turkey last year and would come not a moment too soon as Europe continues to struggle to fill up its reserves ahead of winter.

However, the Russian president’s statement is also likely to spark anger in Europe since it confirms suspicions that Russia wants to withhold additional supplies for Europe until Nord Stream 2 is approved. Moscow officials have said that Gazprom was prioritizing domestic energy security, and the company itself has repeatedly stated that it had fulfilled its delivery obligations under long-term contracts with European buyers.

Earlier this week, sources from Moscow also hinted that there would be more gas for Europe if Nord Stream 2 is approved, Bloomberg reported. But, separately, speaking to Bloomberg, a Russian MP said, “We cannot ride to the rescue just to compensate for mistakes that we didn’t commit.”

Meanwhile, top Russian officials, including Deputy Prime Minister and former Energy Minister Alexander Novak, have argued that Europe’s gas crisis was not the result of insufficient supply but a consequence of lower than usual inventories and bad decisions on the part of politicians.

At the same time, some in Brussels are accusing Gazprom of market manipulation to make prices rise. More than 40 members of the European Parliament from all political groups have reportedly urged the European Commission to launch an investigation into Gazprom over alleged market manipulation that could have contributed to the record-high natural gas prices in Europe.

Putin: $100 Oil Is “Quite Possible”

Putin: $100 Oil Is “Quite Possible”

  • It is “quite possible” that the WTI Crude oil prices reach $100 per barrel in light of growing global demand for energy commodities, Russian President Vladimir Putin said on Wednesday
  • Putin: Russia and its allies in the OPEC+ oil producer group want a stable oil market without any shock spikes in prices

It is “quite possible” that the WTI Crude oil prices reach $100 per barrel in light of growing global demand for energy commodities, Russian President Vladimir Putin said on a CNBC panel at the Russian Energy Week on Wednesday.

Asked by CNBC’s Hadley Gamble whether the U.S. benchmark could hit $100 a barrel, Putin replied “That is quite possible.”

However, Russia and its allies in the OPEC+ oil producer group want a stable oil market without any shock spikes in prices, Putin said.

“Russia and our partners and OPEC + group, I would say we are doing everything possible to make sure the oil market stabilizes,” Putin said, according to a translation.

“We are trying not to allow any shock peaks in prices. We certainly do not want to have that — it is not in our interests,” the Russian president added.

The OPEC+ group decided last week to stick to their planned 400,000 barrels per day (bpd) increase in collective production in November, despite calls from oil importing nations to add more supply and despite an expected additional demand from a gas-to-oil switch due to record high natural gas prices in Europe and Asia.

Oil prices could hit $100 in case of a colder winter, some analysts and investment banks have said in recent weeks. Record-high natural gas prices are forcing some utilities to switch to oil derivatives instead, boosting demand for crude.

…click on the above link to read the rest of the article…

Russia Says US Engineered June’s Black Sea Provocation, “We’ll Sink” Any Threat Next Time

Russia Says US Engineered June’s Black Sea Provocation, “We’ll Sink” Any Threat Next Time

In the days after the June 23 incident between the UK Royal Navy’s HMS Defender and a Russian patrol vessel and military aircraft near Crimea which resulted in warning shots fired from the Russian side, Putin asserted that a US reconnaissance plane had been nearby monitoring the dangerous close-call incident as it unfolded below. Putin had cast the whole showdown as a “provocation” in which the US aircraft was present monitor Russia’s response to the UK vessel. Moscow’s position is that the UK vessel had ventured a full three kilometers into Russian territorial waters, which was met with a Su-24M dropping bombs in the Defender’s path along with the Russian patrol ship firing warning shots.

The latest charge on Sunday, however, has gone further, with Russian presidential spokesman Dmitry Peskov accusing Washington and the UK of essentially engineering the dangerously close military encounter in order to probe and test Russia’s defense of its borders.

I think our intelligence certainly knows who made a decision there [in the situation with the British destroyer]. But certainly I think such operations are basically planned by senior partners from overseas,” Peskov was cited in TASS as saying.

UK military drills involving HMS Defender in the Mediterranean, via The Drive.

Given Putin’s prior words pointing the finger directly at Washington during his annual televised Q&A last month, this latest Kremlin statement is also no doubt a clear reference to the US (in terms of the provocative reference to “who made the decision here”). Presidential spokesman Peskov elaborated further in his Sunday statements that “in this case the destroyer was just a tool of provocation.”

…click on the above link to read the rest of the article…

German Ambassador Seconds Putin’s Fiery NS2 Remarks: “European Energy Policy Not Determined By Foreigners”

German Ambassador Seconds Putin’s Fiery NS2 Remarks: “European Energy Policy Not Determined By Foreigners”

The day after Putin announced the completion of the first leg of the Russia-to-Germany natural gas pipeline Nord Stream 2, declaring that essentially Washington’s best efforts to halt it via an avalanche of sanctions have been defeated, Germany appears to have seconded his assessment.

German Ambassador to Russia Geza Andreas von Geyr on Saturday in his own statements on the sidelines of the St. Petersburg International Economic Forum said that US efforts are illegal, going against international law. As cited in Russian media reports, the ambassador said: “At the moment, important negotiations between the American and German governments are ongoing, which include the topic of Nord Stream 2, but our stance on the matter is clear, and it will not change: we are convinced that the energy security of Europe, as well as European energy policy should be determined by Europeans only, and not by foreigners,” he stated confidently.

German Ambassador to Russia Geza Andreas von Geyr, Via FT

“As for the sanctions, our position is that such an instrument – extraterritorial sanctions – is not applicable, as it goes against international law“, he explained.

There’s nothing new in this position of Germany seeing in it a question of European sovereignty over its own energy policy. Both Russian and German sides have remain undeterred in completing the pipeline, yet interestingly it’s Washington’s position under Biden which appears to have softened and even reversed.

The Biden White House announced last month that it would waive sanctions for the German company overseeing its side of the 745-mile long pipeline project while at the same timing slapping more punitive measures on Russian vessels under Gazprom. Ostensibly an initiative to heal ties with Germany, it was clearly contradictory, as many observed…

…click on the above link to read the rest of the article…

Putin Charges US With Using Dollar To Wage “Economic & Political War”

Putin Charges US With Using Dollar To Wage “Economic & Political War”

Yesterday Russia announced the dramatic news at its own ‘Davos-style’ economic forum in St. Petersburg which is running this week that it will dump the US dollar from its $186 billion National Wealth Fund. As we detailed previously it comes as Washington continues to tighten the sanctions screws on Moscow, blaming it for everything from a series corporate cyberattacks that’s appeared to target American infrastructure to election interference to expansionist aims in Ukraine to cracking down on opposition activists.

On Friday President Vladimir Putin hinted further at the rationale behind what was obviously a retaliatory and defiant we don’t need the US strong bit of messaging from Russian Finance Minister Anton Siluanov at the forum – who emphasized the day before, “We can make this change rather quickly, within a month”. Putin followed during his address by charging the United States with using the dollar as a tool to “wage economic and political war” on rival countries. Thursday’s prior National Wealth Fund announcement had delineated it will alternately pursue investments in euro, Chinese yuan as well as gold assets.

Via Reuters

Putin in his Friday speech hung a further threat over Washington, saying according to Reuters that Russia “may consider settling transactions for oil and gas in other national currencies and the euro.” 

And further, “Putin said it would be a serious blow to the US dollar if Russia’s oil companies stopped using the currency, but that Moscow did not want to do that.” Here’s more of his comments addressing this future provocative last-ditch scenario:

Putin also said European nations should pay for Russian gas in euros, as Moscow pursues its de-dollarization efforts amid US sanctions.

“The euro is completely acceptable for us in terms of gas payments. This can be done, of course, and probably should be done,” he said.

…click on the above link to read the rest of the article…

Putin’s Warnings at the World Economic Forum

Putin’s speech at the World Economic Forum was quite insightful. He said that we “are seeing a crisis of the previous models and instruments of economic development. Social stratification is growing stronger both globally and in individual countries. We have spoken about this before as well. But this, in turn, is causing today a sharp polarisation of public views, provoking the growth of populism, right- and left-wing radicalism and other extremes, and the exacerbation of domestic political processes including in the leading countries.”

While referred to the crisis as being similar economically to the Great Depression, he pointed out that it is “inevitably affecting the nature of international relations and is not making them more stable or predictable. International institutions are becoming weaker, regional conflicts are emerging one after another, and the system of global security is deteriorating.” Indeed, the Hillary allegations that turned the 2016 election into a joke where she manufactured evidence to claim she lost because of Putin, has done far more damage as resurrected the cold war. Putin warned that “the situation could take an unexpected and uncontrollable turn – unless we do something to prevent this.” Biden has immediate sent troops to Syria and ordered the building of a new base there.

Putin elaborated: “There is a chance that we will face a formidable break-down in global development, which will be fraught with a war of all against all and attempts to deal with contradictions through the appointment of internal and external enemies and the destruction of not only traditional values such as the family, which we hold dear in Russia, but fundamental freedoms such as the right of choice and privacy.”

 

Putin Sees US & Iran Headed Toward War – Proposes Urgent World Summit To Stop It

Russia thinks war between the US and Iran is on the horizon, and is proposing steps to stop it:

Russian President Vladimir Putin on Friday proposed a video summit with the United States, Britain, France, China, Germany and Iran in a bid to avoid “confrontation and escalation” at the United Nations, where Washington is trying to extend an arms embargo on Tehran, reports Reuters.

But it’s hard to know what could be done at this point. Not only did the Trump administration void the 2015 nuclear deal (JCPOA), but long-standing hawks like Pompeo have sought to ramp up sanctions at every turn.

AFP/Getty Imags

The situation has been stalemated, with Tehran demanding easing of sanctions or erasure altogether as a condition for fresh talks, but with the White House alternately saying Iran has to first abandon all development related to nuclear power (which the US says is actually for nuclear weapons) and its ballistic missile program.

But if Gaddafi’s fate is anything to go by (who abandoned his WMD program in the early 2000s and was “brought in from the cold” as they say – only to be overthrown by US-NATO military intervention and summarily executed in the street years later), the view from Tehran is that any ‘deal-making’ with the United States is impossible.

“The issue is urgent,” Putin said of his plan in Friday comments. He explained the alternative remains “only further escalation of tensions, increasing risk of conflict – such a scenario must be avoided.”

Iranian ballistic missiles, via Iran Focus

When asked about Putin’s proposal and a press briefing on Friday, President Trump responded: “I hear there’s something, but I haven’t been told of it yet.”

However, given Iran essentially sees the US as in a state of war with the Islamic Republic – especially given the January assassination of IRGC Quds Force chief Qassem Soleimani, it will likely less than optimistic for any UN deconfliction meeting to succeed.

Russia Conducts War Drill With Hypersonic Missiles Amid Threat Of War In Middle East

Russia Conducts War Drill With Hypersonic Missiles Amid Threat Of War In Middle East

Russian President Vladimir Putin observed a war drill off the coast of Crimea on Thursday that included the launching of hypersonic missiles, the Russian Defense Ministry said.

The ministry’s Zvezda broadcasting service said Russia’s Black Sea and Northern Fleets participated in the military exercise.

Various missiles were fired during the drill, including Kalibr cruise missiles and Kinzhal hypersonic air-launched missiles.

More than 30 warships, including the Admiral Grigorovich and Admiral Makarov frigate, one submarine, and more than 40 aircraft, including Tu-95MS strategic bombers, Su-30SM fighters, and Su-24M bombers, participated in the drill.  

Two MIG-31K fighters air-launched Kinzhal hypersonic missiles while guided missile destroyers launched Kalibr cruise missiles at targets.

Putin observed much of the exercise aboard the Marshal Ustinov missile cruiser.

“The drills have been held successfully,” Admiral Nikolai Yevmenov, commander-in-chief of the Russian Navy, told Putin on Thursday. 

The drill comes as the US and Iran were on the verge of war earlier this week. Tensions have simmered down but are still elevated after Iran launched missiles at two US bases in Iraq.

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Russia is a military ally of Iran, both countries have conducted military operations in Syria, and in recent times, held maritime war drills.

Washington’s relations with Russia and Iran have deteriorated since the beginning of the Syrian civil war and even more since President Trump pulled out of the 2015 nuclear deal with Tehran.

Russia’s latest military exercise and escalating tensions in the Middle East are certainly indicating that the world is inching closer to conflict.

Russian Gas Mega-Pipeline To China Goes Online As Putin & Xi Hail Closer Ties

Russian Gas Mega-Pipeline To China Goes Online As Putin & Xi Hail Closer Ties

Late Monday Chinese President Xi Jinping and Russia’s Vladimir Putin jointly launched the major unprecedented cooperative project that had been years in the making called the ‘Power of Siberia’ gas pipeline.

The China-Russia east-route pipeline is now providing China with Russian natural gas, which according to Chinese state media is expected to reach 5 billion cubic meters in 2020 and increase to 38 billion cubic meters annually from 2024.

Crucially, S&P Global Platts estimates that total sales through the pipeline is projected to meet nearly 10% of China’s entire gas supply by 2022, ensuring vital energy security as Beijing continues to feel the pressure and uncertainty of the trade war with Washington. 

A Chinese section of the China-Russia East Route natural gas pipeline in Heihe, China. Image source: CNN/Getty Images

The ceremony to officially bring the pipeline online was held as a video call between Xi and Putin was underway. Xi told Putin: “The East-route natural gas pipeline is a landmark project of China-Russia energy cooperation and a paradigm of deep convergence of both countries’ interests and win-win cooperation.”

The deal had been cemented in May 2014 when Russian gas giant Gazprom signed a 30-year contract with China National Petroleum Corp, after which the pipeline agreements were signed with both leaders present in Shanghai in later 2014.

Gazprom CEO Alexei Miller announced to both leaders that the pipeline had been opened via video link. “Gas is flowing to the gas transmission system of the People’s Republic of China,” he said.

A 30-year deal was signed by Putin and Xi in 2014, and while a final figure has not been announced, it is believed to be worth more than $400 billion. — CNN

Gazprom will oversee operation of the mammoth pipeline which runs more than 8,100 kilometers (5,000 miles) across the two countries.

Vladimir Putin Sums Up The New World Order In 5 Words

Vladimir Putin Sums Up The New World Order In 5 Words

Russian President Vladimir Putin succinctly summarized the shifting tectonic plates of geopolitics.


Vladimir Putin: “The Dollar Enjoyed Great Trust Around The World. But For Some Reason It Is Being Used As A Political Weapon, Imposing Restrictions. Many Countries Are Now Turning Away From The Dollar As A Reserve Currency. US Dollar Will Collapse Soon.”


First he explained the status quo…

“The Dollar enjoyed great trust around the world. But, for some reason, it is now being used as a political weapon to  impose restrictions.”

Then Putin explained the consequences…

“Many countries are now turning away from the Dollar as a Reserve Currency.”

And ultimately what happens…

“US Dollar will collapse soon.”

And just like that, it was gone. Remember “nothing lasts forever”…

As Bloomberg reports, Russia’s central bank has been the largest buyer of gold in the past few years.

Source: Bloomberg

Of course, Putin is not the first (and won’t be the last) to suggest the end is nigh for the dollar…

The World Bank’s former chief economist wants to replace the US dollar with a single global super-currency, saying it will create a more stable global financial system.

“The dominance of the greenback is the root cause of global financial and economic crises,” Justin Yifu Lin told Bruegel, a Brussels-based policy-research think tank. “The solution to this is to replace the national currency with a global currency.”

Warren Buffett once explained that “for 240 years it’s been a terrible mistake to bet against America, and now is no time to start.”

We don’t mean to rain on his parade too much, but the following charts suggest time is ticking, as the world transitions from dollars to non-fiat reserves…

Source: Bloomberg

Russia To Reduce US Dollars In National Wealth Fund As Putin’s De-Dollarization Continues

Russia To Reduce US Dollars In National Wealth Fund As Putin’s De-Dollarization Continues 

Russia’s de-dollarization effort is full steam ahead, in line with President Putin’s commitment to reduce the country’s vulnerability to the continuing threat of US sanctions.

Crossing the wires early Wednesday morning, Russian Deputy Finance Minister Vladimir Kolychev, was quoted by Reuters as saying the Russian sovereign wealth fund will reduce US Dollars and is considering adding Chinese yuan. 

  • RUSSIAN DEPUTY FINANCE MINISTER KOLYCHEV SAYS SHARE OF US DOLLARS IN NATIONAL WEALTH FUND WILL BE REDUCED 
  • RUSSIAN DEPUTY FINANCE MINISTER KOLYCHEV SAYS INCLUSION OF OTHER FOREIGN CURRENCIES INCLUDING YUAN IS BEING CONSIDERED
  • RUSSIAN DEPUTY FINANCE MINISTER KOLYCHEV SAYS FINANCE MINISTRY PLANS TO CHANGE NATIONAL WEALTH FUND’S FX STRUCTURE IN 2020 

Kolychev said the change to the foreign exchange structure of the wealth fund would occur in 2020.

Ukraine and Russian-backed rebels begin troop withdrawal in eastern regions

Last month, Russian Economy Minister Maxim Oreshkin told the Financial Times that the country would continue down the path of de-dollarization and begin trading some oil transactions in Euros and roubles.

“We have very good currency, and it’s stable. Why not use it for global transactions?” Oreshkin said in a recent interview with the FT.

 “We want (oil and gas sales) in roubles at some point,” he said.

Despite less than 5% of Russia’s $687.5 billion in annual trade being with the US, it remains that over half of that trade still relies on the dollar, according to Bloomberg figures.

US sanctions have been very selective as of recent, specifically targeting Gazprom, the country’s gas giant. Sanctions have banned any US company from supplying Gazprom with equipment.

Russia’s desire to abandon the dollar is a trend that continues to gain momentum and could be fully realized by the mid/late 2020s.

A New Middle East Thanks to Putin

A New Middle East Thanks to Putin

Peace in the Middle East is coming at us fast and we’re going to have Russian President Vladimir Putin to thank for it. 

The howls of agony coming from U.S. and European foreign policy centers are deafening.  Pat Buchanan lists them in his latest article which asks if Putin is now the new king of the Middle East.

“Donald Trump Has Handed Putin the Middle East on a Plate” was the title of a Telegraph column. “Putin Seizes on Trump’s Syria Retreat to Cement Middle East Role,” said the Financial Times.

The U.S. press parroted the British: Putin is now the new master of the Mideast. And woe is us. 

Remember that the epicenter of virulent anti-Russian, pro-Israeli sentiment doesn’t begin with the Neocons along K-Street. It begins with the remnants of the British imperial class which still holds tremendous sway over British politics.

Think I’m wrong about that. Just look at Brexit.

As I pointed out the minute Trump defended his initial pullout of 50 U.S. troops to allow Turkey to cross into northern Syria, Putin has the situation mostly under control by laying the groundwork to craft win/win/win/win possibilities for everyone in the region.

Buchanan remains skeptical of this, saying that if Putin is the new king of the Middle East, will the crown lie heavy on his head?

It’s a fair question but I think it betrays Pat’s biases as an old Cold Warrior. 

Pat makes a series of comparisons between Russia’s military presence in the region and the size of the economies backing them to make his point. I think, frankly, that’s outdated analysis.

It is based on the premise that Russia has imperial aspirations in the region, similar to that of the U.S. At his core, Buchanan is still a ‘great powers theory’ kind of guy. 

 …click on the above link to read the rest of the article…

The Declining Empire of Chaos Is Going Nuts Over Iran

The Declining Empire of Chaos Is Going Nuts Over Iran 

The transition in recent years from a unipolar to a multipolar world order has created international tensions that seem to threaten to escalate into clashes between regional and global powers.

In 2014 we were almost at the point of no return in Ukraine following the coup d’etat supported and funded by NATO and involving extremist right-wing Ukrainian nationalists. The conflict in the Donbass risked escalating into a conflict between NATO and the Russian Federation, every day in the summer and autumn of 2014 threatening to be doomsday. Rather than respond to the understandable impulse to send Russian troops into Ukraine to defend the population of Donbass, Putin had the presense of mind to pursue the less direct and more sensible strategy of supporting the material capacity of the residents of Donbass to resist the depredations of the Ukrainian army and their neo-Nazi Banderite thugs. Meanwhile, Europe’s inept leaders initially egged on Ukraine’s destabilization, only to get cold feet after reflecting on the possibility of having a conflict between Moscow and Washington fought on European soil.

With the resistance in Donbass managing to successfully hold back Ukrainian assaults, the conflict began to freeze, almost to the point of a complete ceasefire, even as Ukrainian provocations continue to this day.

Tensions were then focussed on Syria, where a mercenary army of at least 200,000 men, armed and trained by the US, UK, Israel, France, Turkey, Jordan, Saudi Arabia, Qatar and the United Arab Emirates, almost managed to completely topple the country. Russian intervention in 2015 managed to save the country with no time to spare, destroying large numbers of terrorists and reorganizing the Syrian armed forces and training and equipping them with the necessary means to beat back the jihadi waves.

 …click on the above link to read the rest of the article…

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