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Explosion Rocks Natural Gas Pipeline Connecting Lithuania, Latvia; Village Evacuated

Explosion Rocks Natural Gas Pipeline Connecting Lithuania, Latvia; Village Evacuated

Lithuania natural gas transmission operator Amber Grid told Reuters its pipeline that connects Lithuania to Latvia was rocked by an explosion on Friday.

Footage of the explosion emerged on Twitter in the last 30 minutes.

The location of the blast is in northern Lithuania. Amber Grid said an investigation is underway into the source of the explosion.

Baltic news agency BNS said police evacuated the entire town of Pasvalys, located in northern Lithuania, due to the situation.

“The gas transmission system in the area consists of two parallel pipelines, and initial data indicates that the explosion occurred in one of them,” SKY News said.

Amber Grid’s pipeline flows show where Natgas supplies have been halted.

The grid is an interconnected NatGas transmission system of four countries – Latvia, Belarus, Poland, Russia’s Kaliningrad region, the Klaipėda LNG terminal, and the systems of Lithuania’s gas distribution operators.

A statement from the grid operator read:

On Friday at around 5pm an explosion occurred in the Amber Grid gas pipeline in Pasvalys district. According to initial data, no people were injured. The explosion took place away from residential buildings. The fire is being extinguished by the fire brigades that immediately arrived on the scene.

The gas transmission system in this area consists of two parallel pipelines, and initial data indicate that the explosion occurred in one of them. The other pipeline was not damaged. The gas supply through the damaged pipeline was immediately interrupted, but the Pasvalys district consumers are already being supplied with gas through the adjacent pipeline. 

Nemunas Biknius, CEO of the gas transmission system operator Amber Grid, said: “We regret this incident in the gas pipeline system. We immediately started to investigate the circumstances of the incident and ensure gas supply to consumers…

…click on the above link to read the rest…

Lativa Banking Crisis Unfolding on Schedule – Will There Be a European Contagion?

 

The Latvian Financial Supervisory Authority is concerned announcing a resolution plan for the crisis bank ABLV that is threatening a contagion risk of further closures of financial institutions in the country with a predominantly foreign customer base. There is a serious risk of a contagion unfolding that will also force consolidation and mergers in the industry as a whole. The financial system of the Baltic country has seen a run with customers withdrawing about 500 million euros in deposits in recent weeks. There are about ten banks in Latvia who have been serving primarily foreign customers. Concerns and a decline in confidence unfolding in Europe as a whole over the banking system as a whole may force a change in the business model of Latvian banks where they must return to a reliance upon domestic deposits rather than foreign.

Latvia’s third largest financial institution, ABLV, is about to collapse after being accused by the US of being involved in money laundering by customers from neighboring Russia and Ukraine. The bank denied the allegations but simply making those allegations by New York prosecutors can have a devastating impact upon foreign banks. A run on the bank began after the allegations were made public. The European Central Bank (ECB) came to the conclusion that the bank was facing collapse. The European Agency for the Settlement of Marged Banks (SRB) classified the bank as non-systemically important and left it to its fate. In Latvia, loans are provided mainly by Scandinavian banks located in Sweden. Many Latvian banks have specialized in financing themselves mainly through deposits of foreigners rather than domestic Latvian citizens. The crisis brewing stems from the fact that about 40% of Latvian bank deposits come from abroad. Allegations of money laundering by the US authorities have been sending foreign depositors into a state of panic.

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

Bank Run Feared After ECB Unexpectedly Pulls Plug On Latvia Largest Private Bank

Last week we reported that as part of a rapidly deteriorating banking crisis in Latvia, which culminated with the detention of central bank head Ilmars Rimsevics on suspicion of accepting a bribe of more than €100,000 (which prompted both the prime minister and president to demand his resignation, something he has so far refused to do), the European Central Bank froze all payments by Latvia’s largest private bank, ABLV, following U.S. accusations the bank laundered billions in illicit funds, including for companies connected to North Korea’s banned ballistic-missile program.

Then overnight the Latvian banking crisis escalated when in a statement released early Saturday, the ECB said ABLV Bank’s liquidity had deteriorated significantly, making it unlikely to pay its debts and declaring it “failing or likely to fail.” As a result, Latvia’s third largest bank will be wound up under local laws after the European Central Bank

Following the ECB’s decision, which also included the bank’s subsidiary in Luxembourg, the WSJ reported that Europe’s banking resolution authority decided the banks didn’t represent a systemic risk for their countries or the region and should be wound up by local authorities rather than be “bailed in” under EU rules.

And so, on Saturday ABLV said it would be liquidated. In four days, the bank claimed, it had raised enough capital to meet all its depositors’ demands and keep functioning, however “Due to political considerations the bank was not given a chance to do it,” it said in a statement.

As we discussed previously, ABLV’s fall follows a move by the U.S. Treasury last week to block its access to U.S. dollars, accusing it of “institutionalized money laundering.” It said most of the bank’s customers were shell companies registered outside Latvia.

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

Latvia Bank Crisis: Central Bank In Chaos As ECB Blocks Payments By Third Largest Bank

One day after we reported that the central bank governor and ECB Governing Council member Ilmars Rimsevics was detained by Latvia’s anti-corruption authority on Saturday on suspicion of accepting a bribe of more than €100,000, prompting both Latvia’s Prime Minister and the president to call on Rimsevics to resign, Latvia appears to have a full-blown banking crisis on its hands, after the European Central Bank froze all payments by Latvia’s third largest bank, ABLV, following U.S. accusations the bank laundered billions in illicit funds, including for companies connected to North Korea’s banned ballistic-missile program.

Latvia’s Central Bank governor Ilmars Rimsevics

The troubles started on February 14, when Latvia began investigating  ABLV over suspicions of illegal trading related to North Korea’s weapons system. The investigation was launched after the Treasury Department charged the bank with having “institutionalized money laundering as a pillar of the bank’s business practices,” which proposed preventing the bank from opening an account in the U.S.

That decision immediately made ABLV a pariah to other financial institutions, effectively cutting its access to the dollar and funding flows from the world’s most important market, and forcing it to rely exclusively on the ECB as it sole-source of funds.

As the WSJ reported, in proposing the ban on ABLV, Treasury said the bank managed transactions for clients connected to several long-sanctioned North Korean firms.

These include North Korea’s Foreign Trade Bank, the institution that manages Pyongyang’s foreign-currency earnings, revenue that U.S. and United Nations officials say go directly to North Korea’s nuclear and missile programs.

According to the Treasury, ABLV’s alleged illegal activity also included funneling billions of dollars in public corruption proceeds from Azerbaijan, Russia and Ukraine through shell company accounts.

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

NATO Builds Infrastructure for Permanent Military Presence Near Russia’s Borders

NATO Builds Infrastructure for Permanent Military Presence Near Russia’s Borders

NATO Builds Infrastructure for Permanent Military Presence Near Russia’s Borders

A group of about 50 combat engineers based at Canadian Forces Base Gagetown were deployed to Latvia on April 29 as part of Operation Reassurance. The mission is to build a town for 500 soldiers. According to commanding officer Lt.-Col. Chris Cotton, the installation will have «everything you would expect in a small town, from its kitchen to its quarters, its electrical distribution system, water distribution system, internet, gym facilities that would allow people to survive over the long term in Latvia». Obviously, this is an element of vast infrastructure to provide for a long-term commitment.

In early April, a US-led battle group of 1,350 soldiers for NATO’s Enhanced Forward Presence in Eastern Europe arrived at its base near Orzysz in northeastern Poland. It took place just a few days after a NATO-Russia Council meeting took place on March 30. Secretary-General Jens Stoltenberg called the talks with Moscow «frank» and «constructive». Then the usual song and dance followed under the slogan of Russian threat.

British RAF fighters are scheduled to be stationed to Romania this May. In March the first of 800 UK troops arrived in Estonia supported by around 300 armed vehicles. Along with French and Danish forces they’ll be stationed there on what NATO leadership calls «rotational basis». In January, German and Belgian forces arrived in Lithuania near the Russian enclave of Kaliningrad.

The UK leads the Estonia Battlegroup while other NATO members are deploying forces to Latvia, Lithuania and Poland as part of the bloc’s Enhanced Forward Presence battalion. All in all, 4,000 NATO troops with tanks, armored vehicles, air support, and high-tech intelligence centers deployed to Poland, Latvia, Lithuania, and Estonia.

In accordance with the fiscal year 2017 European Reassurance Initiative budget proposal, the US Army is reopening or creating five equipment-storage sites in the Netherlands, Poland, Belgium and two locations in Germany.

 

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

NATO’s Provocative Anti-Russian Moves

NATO’s Provocative Anti-Russian Moves


Twenty-seven years after the fall of the Berlin Wall, NATO is back flexing its muscles as if nothing had changed since the days of the Soviet Union. Defense ministers from the enlarged, 28-member organization agreed recently to strengthen the alliance’s “forward presence” in Eastern Europe. If their new policy is endorsed at a summit in Poland this summer, NATO will begin deploying thousands of troops in Poland and the Baltic states, right up against Russia’s borders.

In other words, the Western alliance will redouble its military commitment to a Polish government whose right-wing, anti-Russian, and autocratic policies are so egregious that even the stanchly neo-conservative editorial page of the Washington Post saw fit to condemn the new leaders’ encroachments on democracy and the rule of law.

NATO headquarters in Brussels, Belgium.

NATO headquarters in Brussels, Belgium.

Worse yet, NATO’s provocative commitment will include a potential threat to start World War III on behalf of that government. Most Americans are unaware that NATO’s policies — reaffirmed by the Obama administration — view nuclear weapons as a “core component” of the alliance’s capacity to repel even a conventional attack on one of its member states.

An accidental clash of forces, perhaps triggered by military exercises gone awry, could potentially lead NATO to use its nuclear weapons against Russian troops on Poland’s borders. Or, just as catastrophically, it could prompt Russian forces to attack NATO’s nuclear stockpiles preemptively.

Either scenario could trigger a much wider nuclear war. The British television channel BBC Two explored such a scenario, involving Latvia, in a chilling “war game” film that aired earlier this month.

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

US Sends Over 100 US Tanks, Armor To Latvia As Nuland “Confirms” Russia Delivering Weapons

US Sends Over 100 US Tanks, Armor To Latvia As Nuland “Confirms” Russia Delivering Weapons

No lesser trustworthy character than Assistant Secretary of State Victoria Nuland explained this morning that the US can “confirm” new Russian weapons delivery to Ukraine and that they “can tell” when Russia sends in new weapons (though offering no explanation of this statement). This comment to the Senate Committee comes a day after the US delivered ‘lethal aid’ to Latvia – 120 armored units (including tanks) – with US Army General John O’Conner who witnessed the tanks arriving on Latvian soil said, “Freedom must be fought for, freedom must be defended.” And finally, one more shot in the eye of the germans, deputy under-secretary of Defense Brian McKeon said the US is “actively considering more weapons for Ukraine,” seemingly implying they alreadt sent some?

The rhetoric is heating up

  • *ASSISTANT SEC. OF STATE NULAND SPEAKS BEFORE SENATE COMMITTEE
  • *U.S. CAN CONFIRM NEW RUSSIAN WEAPONS DELIVERY TO UKRAINE:NULAND
  • *NULAND SAYS U.S. CAN TELL IF RUSSIA SENDS IN NEW WEAPONS
  • *NULAND SAYS UKRAINE LEADERS KNOW IN RACE TO REFORM GOVERNMENT
  • *DEPUTY UNDER SECRETARY OF DEFENSE BRIAN MCKEON SPEAKS TO SENATE
  • *U.S. ‘ACTIVELY’ CONSIDERING MORE WEAPONS FOR UKRAINE: MCKEON

And this comes a day after the US delivered lethal aid to Latvia…

 

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

NATO’s Russia Border Games

NATO’s Russia Border Games

When a Russian bomber flew over international waters some 25 miles off the southwest tip of England last week, UK Defense Secretary Michael Falloncalled Russia “a real and present danger.” The UK government scrambled jet fighters to meet the Russian aircraft as a show of force.

Said Secretary Fallon of the incident, “NATO has to be ready for any kind of aggression from Russia, whatever form it takes.” He added that, “NATO is getting ready,” warning particularly that Russia may soon move to invade the Baltic countries of Estonia, Latvia, and Lithuania.

Reading the feverish Twitter feed of NATO’s Supreme Allied Commander Europe, Gen. Phil Breedlove, one would get the impression that NATO is already at war with Russia. Fighter jets sit menacingly atop aircraft carriers as the General beams about NATO member countries’ commitment to contribute to the fight.

The message is clear: Russia is about to attack! NATO has, for no understandable reason, found itself in Russia’s crosshairs. NATO cannot figure out how it is that Russia could possibly feel threatened by its actions, which, unlike Russia’s are not in the slightest provocative.

Russian military plane over international waters 25 miles from the UK coast is “real and present danger” to NATO. Yet…

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

 

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