Opinion
A Capital Outflow
A record level of capital outflow that equals 1.47 trillion rubles has taken place to the bank accounts outside Russia, in a time period between June and August, according to the Central Bank of Russia. For a comparison, the capital outflow had been recorded as 57 billion rubles in the same time period of 2021 (third quarter), which is 26 times less. For another comparison: the budget revenues for the year 2022 were recorded as 25.02 trillion rubles. This means that roughly 6 percent of all budget revenues of the nation were scooped out of the country by the bourgeoisie, only in the third quarter of the last year. Only then we can add the 543.4 billion and 550.7 billion rubles that are also scooped away in the first and the second quarters, by the “patriotic” bourgeoisie (despite all “sanctions”), who have managed to take out more than 10 percent of the national budget revenues in the last three quarters.
And the outflow did not stop after the third quarter. The Central Bank of Russia has estimated in early December that the Russian citizens had roughly 4.19 trillion rubles (or 66.65 billion USD at that time) in foreign bank accounts, as of November 1st. Also, according to the data released by the Central Bank of Russia on February 13th, the total assets of Russian citizens in foreign bank accounts have summed up to a total of 94.3 billion USD (or about 7 trillion Rubles, that is almost 30 percent of the national budget revenue of 2022). This means that the deposits in foreign bank have more than tripled over the last year. This alone is an enormous capital outflow, and it is just the tip of the iceberg. These data only shows the outflow that the Central Bank has allowed. The account deposits of Russian citizens in foreign banks had reached 0.5 billion USD in January 2022, which have risen to 4.3 billion USD in February. Almost all these transactions have taken place between February 24th and 28th. The outflow has lost its momentum between March and May, since the Central Bank of Russia had imposed harsh restrictions on foreign exchange transactions. And as soon as the banks have relaxed some these restrictions, the outflow spiked again, reaching 48.9 billion USD in the second half of the year, or making up to the 77 percent of the total annual outflow. Even this can be considered as a very modest estimate, since it is not possible to get information from the countries where the outflow has occurred to after the sanctions.
Moreover, the total capital outflow is not only these 70-100 billion USD in foreign banks. The Central Bank had estimated last July, that the total capital outflow in 2022 would be 243 billion USD. This is a record in the last 10 years, with second happening in 2014 after the annexation of Crimea, being 152 billion USD. The total capital outflow between 2012 and 2021 is around 576.5 billion USD. Capital that equals half of that in the previous 10 years, was scooped away in just one year.
Of course, this amount includes that of the foreign companies which sold their assets in Russia or, stakes that Russian companies hold in foreign countries. So, the capital outflow is often not done by carrying huge stacks of cash across the border. But it is done by shifting enormous sums to offshore companies, and that is pretty much like carrying huge bags of cash.
So, this enormous capital outflow can take place in every means and there are not much obstacles to doing this. According to the Head of the Russian Central Bank Elvira Nabiullina, who has spoken around the end of the year, saying “This is not a matter of concern for us in the current situation. We do not consider it necessary to take any special measures in this connection. “, and adding that “As confidence in macroeconomic stability, price stability strengthens, these funds will return to the Russian banking system, to rubles.”
I get goosebumps as soon as I hear “macroeconomic stability”
Another important statement from the Central Bank was that “import substitutions have been reduced to the cost of standard of living”. So, almost 400 billion USD in assets have been frozen in western banks, there has been a capital outflows close to 250 billion USD this year, but it is import substitutions were lowered to the cost of standard of living. And this statement was made right after the announcement by the US government that American companies would be 152 billion USD of subsidies in microchip production.
One of the most prominent economists in Russia Mikhail Khazin, posted an article on Telegram that “he had initially written for a media outlet, but he did not manage to get it published”, in which Glazyev immediately posted. He claimed that the Russian “fiscal bloc” (the Ministry of Finance and the Central Bank) were still represented by the liberal elite, who still wanted Russia to remain in the “necessary liberal” international community. He says, they must meet the basic requirements of the “Washington Consensus” to achieve this. Two of these requirements would be: “Prohibiting all Ruble investments and motivating further capital outflow”. And the second would be maintaining the liquidity of the global dollarization over the nation’s own interests”. Khazin explains the recent capital outflow that broke records in the first three quarters of 2022, with these theses.
And the relationship between economics and politics gets even more evident at this point, while Khazin considers this stance of the “fiscal bloc” as high treason.
Taxation Of The Grand Bourgeoisie
Putin’s speech at the Eastern Economic Forum in early September was of great programmatic importance. I have evaluated his speech under “9 crucial points” back then. And on the eighth point, I stated:
“The Kremlin keeps stressing that they have used and will continue to use ‘the market mechanisms and instruments’ to seize the ‘excess profit’ of the grand bourgeoisie. This could shows that the grand bourgeoisie has not succeeded in its lobbying efforts together with the ‘fiscal bloc”.
In his speech, Putin has described these market instruments as follows:
“These will be market instruments that are known by all: it can either be customs clearance or recovery of the excess profit in some other ways”.
The target of these words was neither the petty bourgeoisie that emerged after the crisis, nor the new middle bourgeoisie that has now started to flourish after the disqualification of the Navalniyite middle bourgeoisie after February 24th. They too, managed to accumulate an “excessive profit”, and are still accumulating, but the real target was the grand bourgeoisie, which were mainly active in the fields of telecommunications, mining industries and finances, and clearly reeked of a dangerous threat (even if Putin had given a guarantee of “private property” at the same time).
Despite Putin’s programmatic speech, the aforementioned issue has not come up for a long time. Finally, on February 15th, around four and a half months after the announcement of the program, the Deputy Finance Minister Alexey Sazanov has announced that “started working” on two resolutions on this agenda: A voluntary payment, or a kind of involuntary taxation.
Why did it take so long or why did this even come up in the end? The answer to the first question is: We would not expect the grand bourgeoisie to not resist the taxation of excess profit, imposed by the Kremlin. Moreover, the economic situation was relatively stable from the beginning of September and until December when sanctions on crude oil exports were imposed, so back then the first shock was absorbed, and the nation has turned from the brink of total collapse. This may be an exaggerated rhetoric, but definitely not a false one. The Deputy Prime Minister Andrei Belousov has clearly stated that “the economy is at risk of collapse” on December 27th when in describing the situation in March, and that he “thinks that the economy is about to go completely out of control”. Meanwhile Belousov has addressed the Ministry of Transport, Ministry of Industry and Trade and the Central Bank of Russia when crediting those who managed to reverse this doomsday scenario, but did not mention anything about the Ministry of Finance. Therefore, the resistance by the grand bourgeoisie must have gained more momentum in such atmosphere of a relative satisfaction.
And the answer to the second question is: The “fiscal bloc” had to stop further hindering this program, since the problem of financing the government budget, which is caused by a massive decline in the natural gas and oil revenues due to sanctions and the sabotage of Nord Stream 2 pipeline, keeps threatening to destroy the Russian economy.
The Finance Minister Siluanov spoke only two days after Sazanov and stated that he expects “industry giants” to make a “voluntary contribution” of 300 billion rubles to the government budget in return for their excessive profits in 2021 and 2022. Such funds would not cover the expected budget deficit since the budget deficit in 2023 is the expected to be around 2.9 trillion rubles (which is 2 percent of the GDP), and can reach 5 trillion rubles due to the large decrease in oil and gas revenues that occurred as a result of the sanctions. We can understand that the Ministry has alleviated the taxes on grand bourgeoisie to an enormous scale, and has reduced it to around 10 percent of the expected budget deficit even with the most optimistic estimations. But even this was not enough, so the minister tried to make it a “voluntary action”. Moreover, the ministry must have negotiated with some these “industry giants” and tried to get their consent, that is because according to Siluanov: “These industry giants are ready to share some of their profit, with the state”. And on top of that, Siluanov also announced the good news that oil and gas companies would not be charged an additional tax over their profits over these past years.
There seems to be a mismatch between the words of the minister and his deputy; While the deputy minister speaks of two resolutions, there is only one solution according to the minister. While his deputy also points out the hard way, the minister states that there is already an understanding with the grand bourgeoisie on this issue.
However the grand bourgeoisie does not seem convinced these days. Head of the Russian Union of Industrialists and Entrepreneurs Aleksandr Shokhin, has made it clear that voluntary action would not work out. But this was not as if “there could not be a thing called voluntary tax, we should force it properly”, but rather something like “there cannot be a tax on excess profits, since things like private property and the free market are untouchable, we should instead reduce taxes so that the free market can invest even freer and the concept of big government is nonsense anyways” etc.
An Involuntary Volunteerism
On the exact same day that Siluanov has made the voluntary tax announcement, the Kremlin press secretary Dmitry Peskov was asked about this issue at a press briefing. Peskov noted that talks are still ongoing, while similar practices are very common all over the world, and that the government is in a constant contact with representatives of large businesses on this issue, while adding: “The key word is voluntary, but, of course, the interaction between the country’s leadership and business, and the government and the business sector, is a two-way street. Therefore, of course, it is necessary that both sides, although we are all on the same side nonetheless, were clearly aware of the realities that we live in today and the needs the country has”.
That was regarded as a very diplomatic response, and although it did not imply a direct challenge to the grand bourgeoisie, which he had comforted with his message of cooperation, the warning or some may even say the threat, was clear enough. The Kremlin as it is the rational thought, has no doubt that the grand bourgeoisie will not show any voluntary willingness, therefore the formula of involuntary volunteerism must have seemed more practical. The force may bare more fruits, and with the threat of enforcing it, some giant industries may volunteer to contribute and receive a reward in the form of a state decoration, but the division of labor between those who can afford it and those who cannot is such that the Kremlin will not hesitate to introduce some new ways of encouraging volunteerism, in order to overcome the foolishness (that word can be used conditionally), of the “fiscal bloc”.
However, the “fiscal bloc” will not hesitate to look for ways to minimize the profit losses of the grand bourgeoisie. As a matter of fact, the first major move came on the exact same day, from the bloc’s one significant part, the Central Bank. Not only did the Central Bank back the Ministry’s volunteerism plan, it also proposed to cancel the debts of these companies to the government banks in return for the “voluntary contributions” of this class, that totals 300 billion Rubles (according to the report of Banksta, one of the closest affiliated outlets of the grand bourgeoisie).
This is a marvelous bribery! Let us first cancel all short, medium and long term loans, then you can “donate” us, and let us call this volunteering.
The central bank’s call for peace was quick to earn Deripaska’s approval. The owner of RUSAL wrote: “This would be a balanced decision, if not the ideal”.
The “conflicting alliance” continues, as the existence of this alliance does not stop the conflict. The Kremlin will continue its involuntary volunteerism imposition, but it can accept to cancel some of the long-term loans, while it could be a little bit difficult to cancel medium-term loans, and it will surely reject to cancel short-term loans. While it is certain that the problem cannot be solved with such negotiations, while the Kremlin will continue to go for the grand bourgeoisie to finance the government budget, the fiscal bloc will continue its efforts to fend it off, as oil and gas revenues fall rock bottom.
***
There have been two new developments confirming what I have claimed, after I have written them. So, it impossible to end this article without mentioning about them briefly.
First, Putin’s programmatic speech on February 22nd, included the announcement that they would not back down on taxation, despite the pressures from the bourgeoisie and the “fiscal bloc” (he openly admitted “things are tough”). Despite the insistence and the determination of the “fiscal bloc”, the cancellation of long-term loans was largely off the agenda after this speech.
The second is the statements made by Alexander Shokhin, the same day that of Putin’s speech. Shokhin said, they had reached an agreement with the government for a one-time “windfall tax”. The fact that this is defined as a tax, and not as a voluntary contribution, clearly shows the Kremlin’s dedication. And for Shohin, there is only one question that remains: That is how to estimate these “excess profits”.
Opinion
The caption and the guest list: What the West’s SCO coverage cannot explain about Türkiye
Thomas Karat, behavioral analyst
The photograph that Western agencies distributed from Bishkek arrived with its meaning already fixed. Above an image of the Kyrgyz president escorting China’s Xi Jinping past an honor guard, the caption read COUNTER US POWER. The image itself showed a familiar diplomatic ritual, two heads of state walking a red carpet. The caption supplied what the image did not: an adversary, a purpose, and the direction in which a Western audience was meant to orient its concern. The gap between the neutral picture and the loaded words is a useful place to begin, because it is where the framing of the entire summit was decided before a single line of analysis was written.
On Sept. 1 the Shanghai Cooperation Organization marked its twenty-fifth anniversary in the Kyrgyz capital, with ten member states, more than a dozen heads of government, and the secretary-general of the United Nations among the guests. Most European and North American outlets carried a single Agence France-Presse dispatch, which described the bloc as one that seeks to be a counterinfluence to the West. France 24 reported that the Russian and Chinese leaders had traveled to Central Asia to counter Western influence. British coverage of an earlier session of the same body called it a secretive summit of an “axis of upheaval.” In each formulation the West occupies the grammatical center of a meeting it did not attend. The organization is assigned no purpose that can be stated without reference to Washington and Brussels. It is defined entirely as a reaction to them.
Türkiye is the hole in the caption
The framing meets its first and largest obstacle in the guest list, and specifically in the presence of a NATO member at the table. Türkiye holds the status of dialogue partner in the organization, and President Recep Tayyip Erdogan has attended its summits in person. A Western reader told that the SCO is an axis assembled against his alliance is not encouraged to ask why a founding member of that alliance keeps a seat in it. The same AFP dispatch that calls the bloc a counterinfluence to the West records, several paragraphs below its lead, that the organization now counts fifteen dialogue partners including Türkiye, Saudi Arabia and Qatar. Türkiye belongs to NATO. Saudi Arabia and Qatar host the forward headquarters of United States Central Command and the largest American air base in the region. An organization built to oppose the West does not assemble this membership, and a caption that calls it one survives only for readers who do not reach the paragraph that contradicts it.
Türkiye’s position is the part of the picture that Western coverage is least equipped to interpret, because the prevailing map allows for only two teams. Ankara is not choosing the SCO over NATO. It is doing something the two-team model cannot represent, treating the organization as a venue to be worked, neither joining it nor shunning it. A state that keeps its treaty commitments in the Atlantic while cultivating standing in a Eurasian security forum is hedging against a future in which the Atlantic order no longer sets the terms alone. That behavior is legible from Istanbul and largely illegible from the outlets that produced the Bishkek caption, which is why their account of the summit reads, from this vantage, as a description of a world that has already begun to pass.
The vocabulary and its tell
The language of the coverage repays close attention. The recurring terms are “counter,” “against,” “anti-Western,” and “axis,” a vocabulary of opposition that grants the bloc no content of its own. The word “axis” carries the heaviest freight. It imports the moral architecture of the Second World War, and more recently of the “axis of evil,” and lays it over a trade-and-security forum whose membership includes a NATO government. The transfer is performed a few lines from the facts that make it untenable, and the proximity is the tell.
There is a structural habit worth naming as well. The AFP copy notes that the organization’s founding declaration describes it as not an alliance directed against other states, and then, in the following sentence, observes that the Russian and Chinese leaders have delivered anti-Western speeches at past summits. The self-description is admitted and immediately withdrawn. The skepticism applied here is selective. When a NATO communiqué describes the alliance as defensive, the same wire services do not append a reminder of its record of offensive operations. The doubt switches on for adversaries and off for partners, a selection that rests on assumption and not on evidence. Coverage outside the Western agency system handles the same material with a cooler hand. Al Jazeera quoted a regional analyst describing the SCO simply as not a coherent anti-Western alliance, a plain and accurate line that appears in no Western headline, because it does not fit the caption.
A bloc that grew in proportion to the pressure
The organization’s history explains more than its rhetoric does. It began in 1996 as a border-demarcation arrangement among China, Russia and three Central Asian republics, a technical body concerned with the settlement of frontier lines. It gained momentum in close proportion to the pressure applied to its members from the West. India and Pakistan acceded in 2017. Iran was admitted after years of sanctions had made membership useful to Tehran and to the bloc alike. The roster of dialogue partners expanded toward fifteen as American secondary sanctions and tariffs demonstrated to a widening circle of governments the value of a forum beyond Washington’s reach. At Bishkek the rotating chairmanship passed to Pakistan, another long-standing American security partner. The pattern is consistent: the organization has grown less by recruitment than by the steady conversion of states that Western policy has pressed toward the exits.
Iran offers the sharpest illustration. President Masoud Pezeshkian took his seat in Bishkek six months into a war with the United States. A week before the summit, the U.S. Treasury announced a sanctions campaign it named Operation Economic Outcast, extending secondary sanctions to five further sectors of the Iranian economy, aviation, digital assets, gold, shipping and technology, and warning in a separate alert that any party of any nationality paying Iran for passage through the Strait of Hormuz risked U.S. penalty. Secondary sanctions do not fall on the target alone. They fall on any government or firm that trades with the target, which makes them an instruction directed at the sovereign decisions of other states, enforced by the threat of exclusion from the dollar system. China, the largest purchaser of Iranian oil, responded that it would firmly defend its interests. A measure aimed at Tehran functions as a demand issued to Beijing, and Beijing traveled to Bishkek. India provides a second instance. Prime Minister Narendra Modi held a scheduled bilateral with President Vladimir Putin days after Washington imposed a 50 percent tariff on Indian goods over New Delhi’s purchases of Russian oil. The instrument intended to discipline India accompanied it to the very table it was meant to keep it from.
The divisions are real, and they are the point
An accurate account of the summit requires equal candor about the organization’s limits, and candor here is what separates analysis from a mirror image of the framing under examination. The SCO is not a unified bloc. Russia and China compete for influence across the same Central Asian ground. India and China share a contested and periodically violent border, which is why Modi and Xi appeared on the same platform but arranged no formal bilateral. India and Pakistan hold membership in the same body while remaining adversaries. A proposed development bank has been discussed for years without becoming a functioning institution. The 40 percent of humanity the organization claims to encompass is a measure of scale, not of common purpose.
These divisions do not rescue the Western frame. They sharpen the judgment it obscures. Agreement among these governments does not exist, and it is not what makes the summit notable. What makes it notable is the preference of states that distrust one another to manage their disputes inside a structure the United States does not control. The arbitration of one it does control is the option they declined. That preference is a heavier comment on the standing of the American-led order than any declaration could produce. It requires no alliance and no shared ideology. It requires only that a critical mass of states has concluded that the Western order is something to work around, and that the working-around now proceeds openly, at the level of heads of state, beneath a caption instructing Western readers to see a hostile axis where a hedging one stands.
The shrinking center
The phrase that recurs whenever Western officials describe global opinion is “the international community.” Bishkek is a reminder of how much that phrase conceals. The community it invokes is a specific and diminishing set of capitals that grew accustomed, during the brief period of unchallenged American primacy after 1991, to mistaking its own consensus for the consensus of humanity. The summit in the Kyrgyz capital assembled a NATO member, a Western-courted partner in India, the Gulf security clients of the United States, and the two most heavily sanctioned states on earth, and it did so under the observation of the United Nations secretary-general. No description of that room as an anti-Western axis can be reconciled with its composition. The description persists because it serves the audience it is written for, offering a shrinking center the reassurance that it remains the fixed point around which the world still turns.
From Ankara, and from the wider vantage of states that have watched the post-1991 order lose its monopoly, the reassurance reads as a lagging indicator. The two men in the photograph were walking to lunch. The power that could not prevent the lunch, could not hold its Indian partner at a distance from Moscow, could not isolate the state it is fighting, and could not keep the head of the United Nations from attending, is nonetheless assured by its own press that the summit was organized around opposition to it. The more accurate reading is the one Türkiye’s own conduct already reflects. The world is not arranging itself against the West so much as arranging itself without waiting for it, and the caption over the photograph is the last place that development will be admitted.
Opinion
In Bishkek, the ‘new order’ gathers to see whether it can become real
Dr. Ahmed Moustafa, Director & Founder, Asia Center for Studies & Translation, Egypt
Ten heads of states and governments, a cast of partners spanning half of Eurasia meet in the Kyrgyz capital promising a world beyond Western dominance. The summit’s quiet battles over money, media and the club’s own contradictions will matter more than its communiqué.
BISHKEK, Kyrgyzstan: This is a city that understands great powers. Soviet engineers drew its street grid. Its economy runs substantially on money earned by Kyrgyz workers in Russia. And when the Shanghai Cooperation Organization holds its annual summit here Aug. 31st to Sept. 1st 2026 the mountain-ringed capital will become, for 48 hours, the seat of this era’s most consequential open question: What does the world look like after Western dominance?
What will the world look like beyond Western dominance?
The participant list alone is enough to illustrate the scale of the stakes. Chinese President Xi Jinping, Russian President Vladimir Putin, and Iranian President Masoud Pezeshkian will lead the SCO’s ten full members, representing roughly 40 percent of humanity. They include India and Pakistan, Belarus, and the four Central Asian republics, led by Kazakhstan and its President Kassym-Jomart Tokayev, alongside dialogue partners whose presence stretches from Cairo to the Gulf and all the way to Ankara.
No Western institution has ever had to accommodate such a company under one roof. No American administration has had to watch it from the outside.
On paper, the agenda is deliberately unremarkable: counterterrorism cooperation through the organization’s Tashkent-based coordinating body, Afghanistan’s instability, trade facilitation, energy, digital development and the ritual invocation of the “Shanghai Spirit” mutual trust, mutual benefit, respect among civilizations. The organizing principle, as ever, is consensus, which is another way of saying nothing said in the plenary hall will offend anyone.
The real summit will happen in the margins, in three conversations the final declaration will not be recorded.
The first is about money and how to move it where Washington cannot reach it
No communiqué will use the word “sanctions.” Yet diplomats from three member states, speaking on the condition of anonymity to describe preparatory talks, said the financial file has consumed more negotiating time than any other: the long-delayed SCO Development Bank, given fresh impetus at last year’s Tianjin summit; the expansion of local-currency trade; the stitching together of national payment systems that would let members settle accounts without touching the Belgium-based SWIFT network and therefore without touching U.S. financial law.
The urgency is not abstract. Russia’s central bank operates under sweeping penalties. Iran has been locked out of the dollar system for a generation. Even India, a Western partner, buys Russian oil in non-dollar currencies to keep its options open. Tariffs and secondary sanctions have turned “financial inclusiveness,” in the organization’s diplomatese, into the summer’s quiet rallying cry.
The obstacles are equally concrete. The development bank has been discussed for more than a decade without being built, partly because every founding member wants it capitalized, headquartered and denominated on its own terms. “Nobody in that room is against de-dollarization,” said one economist who advises a member-state government. “Everybody in that room is against a bank China controls.”
The second conversation is about the United States absent, and everywhere
The months before the summit have seen a burst of American diplomacy conducted largely through intermediaries: reported contacts between the CIA director and Russian intelligence; a Pakistani army chief’s travels to Tehran; Gulf foreign ministers, and on one reading the Jordanian monarch, carrying messages to Beijing. Washington describes the traffic as routine management of a complicated world. In the capitals gathering in Bishkek, it is read as something more evidence that the superpower wants deals.
“Diplomacy by intermediary is either sophistication or exhaustion,” said a European ambassador in Beijing, who like others spoke on the condition of anonymity. “The Americans say the first. This summit will spend two days staging the second.”
The calendar sharpens the drama. U.S. midterm elections fall ten weeks after the leaders leave Bishkek, and a president who has staked his brand on ending wars and winning trade disputes has delivered a durable settlement of neither. Advisors openly worry that losing the House would hand the opposition subpoena power and the machinery of impeachment. Analysts expect the summit’s choreography to be calibrated accordingly: handshakes and family photos projecting an alternative order, measured carefully enough not to hand Washington an enemy at the worst possible moment.
Yet the “declining America” narrative has limits that the summit’s own design reveals. India attends in large part to ensure the organization does not become a Chinese-Russian instrument; it has blocked anti-Western language before and is expected to again. The Central Asian states hedge between Russian security, Chinese financing and Western markets. And every member’s sanctions-resistance project is, in the end, a measure of how much the dollar world still matters.
The third conversation is the one an Egyptian started
Among the more concrete proposals at Tianjin came not from a head of state but from Dr Ahmed Moustafa, an Egyptian scholar and specialist in Asian and Eurasian Affairs, who directs the Cairo-based Asia Center for Studies and Translation, attending as his country an SCO dialogue partner continues testing the club’s outer circle. His argument: the organization’s deepest deficit is neither military nor financial but informational.
The West’s real advantage runs through its media platforms and professional networks, which shape the aspirations of the very youth the organization claims to speak for. His proposal, a standing, professionally sponsored mechanism binding member-state think tanks and media, and a professional social platform for the region’s young people, “similar to or stronger than LinkedIn” circulated this summer in summit working groups.
The idea matters less as a business plan than as a diagnosis that Beijing and Moscow have reached by harder roads. For all its demographic weight, the information environment in which the organization’s citizens actually live is dominated by Western platforms and Western languages. Member states have answered with firewalls, copycat apps and an annual media forum. What they have not produced is a digital ecosystem anyone would choose.
Skeptics see a structural reason: professional networks create value through the free flow of information precisely what several member governments are professionally committed to restricting. “You can build a LinkedIn for the Shanghai Spirit,” one diplomat joked. “Good luck making anyone network in it.”
The last conversation is with itself
The family photo will not show the feuds beneath it: India and China, India and Pakistan, Iran which left Tianjin with expressions of sympathy and no security guarantees after its war with Israel and a host government whose national strategy is to be courted by all sides at once. A quarter-century after the organization’s founding, its signature achievement remains the summit itself: proof that rivals can meet, not yet proof that they can build.
“Bishkek will be perfectly staged,” said a veteran analyst of Eurasian institutions. “The question is whether anything survives the motorcades.”
When the leaders fly home over Bishkek on the first of September, they will leave behind banners, a communiqué and a claim: that a new order is not merely desired but operational.
The quieter truth of this summit is that an order cannot be declared into existence. It has to be built payment system by payment system, platform by platform, in the unphotographed rooms where the Shanghai Spirit is tested against arithmetic.
Opinion
What did the Israeli attack in Syria reveal?
Following Israel’s strike on the Abu al-Duhur Airbase in Syria on August 18, relations between Damascus and Tel Aviv have reportedly broken down. Syrian Foreign Minister Asaad Hassan Sheybani announced in the wake of the attack that all communication with Israel had been severed. “We anticipate that talks regarding a security agreement with Israel will resume in the near future. At present, we do not trust Israel. Our priority is the cessation of attacks against our sovereign territory,” he stated.
The minister’s utter helplessness reverberates through his words.
The post-Assad regime in Damascus ascended to power on the back of American and Israeli support. Consequently, the United States and Israel stand as the primary arbiters of Syria’s destiny. It is precisely for this reason that the Damascus administration has abandoned all claims to its rights over the Israeli-occupied Golan Heights—virtually resigning itself to the occupation and striking it from the agenda. Upon seizing power, it pledged immediate fealty to Washington: “We will pose no security threat to Israel, and we shall thwart anyone who attempts to do so.” It operated under the delusion that it could forge a functional relationship with Israel—led by Netanyahu, a perpetrator of genocide and a convicted war criminal—by appeasing it through concessions. It was gravely mistaken.
For Israel currently holds sway over a substantial portion of Syrian territory. It establishes military outposts across the country, carries out airstrikes at will, and deploys its armor unimpeded.
Similarly, the Israeli-backed PYD-YPG terrorist organization exercises control over an expanse of land vastly disproportionate to its actual strength—territory exceptionally rich in energy resources—solely through the patronage of the US and Israel. Leveraging that very support, it wrenches outsized political, military, and administrative concessions from the Damascus government.
Evidently, the displacement of Iranian and Russian influence in Syria by that of the United States and Israel has brought profound satisfaction to certain circles in our country. Yet what these quarters fail to see, refuse to see, or cannot bring themselves to acknowledge even when confronted with it, is this fundamental reality: Washington envisions a Middle Eastern order wherein Israel commands supremacy, projects expanding power, and dictates terms, while Türkiye raises no objection whatsoever and instead accommodates itself to this architecture. To compel Türkiye’s acquiescence, the US is actively deploying its vast and varied arsenal of leverage.
Lest we forget, the United States had already brought several Arab states to the desired threshold through the Abraham Accords. That process was ultimately intended to culminate in the open, formal consecration of the de facto rapprochement between Saudi Arabia and Israel. That trajectory has not been abandoned; it has merely been placed on ice for the time being. Behind the scenes, Washington maintains an intense flurry of diplomacy with Saudi Arabia, Qatar, Egypt, the United Arab Emirates, and Jordan. Once the wider Middle East, the Islamic world, and the Arab sphere have been fully conditioned to accept the ongoing reality in Gaza—and once the oppressed, grieving, and beleaguered Palestinian people have been driven entirely from their ancestral homeland—this shelved agenda will be revived.
We know that the Zionist establishment in Israel, aligned with American imperialism, chose not to strike Iran first before confronting the Iranian-backed Axis of Resistance, the Shia Crescent, and Tehran’s proxy forces. It executed the exact inverse: it struck first at Syria, at Hamas in Palestine, and at Hezbollah in Lebanon. Only after eroding their efficacy did it turn its sights directly upon Iran. In Syria, the previous regime held out far longer than anticipated—enduring for 13 years and 8 months. As a consequence of the civil war that erupted in March 2011, Assad was ultimately overthrown, finding refuge in Moscow.
When 61 years of Baathist rule, including 53 years of the Assad dynasty, came to a close in December 2024, the emergent regime in Damascus wasted no time in pledging its allegiance to the United States, to Israel, and to the Arab states that backed it, chief among them Saudi Arabia. It proclaimed that it would erect a bulwark against Iran, raise not the slightest objection to Israel, and execute Washington’s directives to the letter.
A broad demographic in Türkiye that welcomed this turn of events swiftly began asserting—under the banner of religious and sectarian fraternity—that this transition worked entirely in Türkiye’s favor. The sheer fallacy of this premise was exposed in short order.
And how was it exposed?
It was exposed by Israel immediately laying the groundwork for a Syria partitioned into four enclaves (Druze, Kurdish, Alawite, and Arab). It was exposed by the renewed revelation that the US-Israel axis intends, sooner or later, to carve up Syria along sectarian and ethnic fault lines—mirroring the precedents of Lebanon and Iraq—in a country roughly composed of 70 percent Sunni Arabs, 10 percent Alawites, 10 percent Kurds, 5 percent Christians, and 5 percent Druze and Turkmens.
It was exposed by the fact that the PYD-YPG terrorist organization, even if denied the entirety of its territorial ambitions, has managed to secure a portion of its political, military, and administrative demands through US–Israeli patronage, thereby being permitted to preserve its existence by settling for a reduced perimeter.
And it was exposed by the resilience of Iran, which, despite suffering immense exhaustion and attrition in the face of American and Israeli aggression, refused to capitulate and maintained its resistance. It was exposed by the failure of the US-Israel tandem to achieve its overarching political and military objectives in Iran, bringing to the fore once again the undeniable truth that Iran possesses an institutionalized state tradition, a national consciousness, and an armed force of a depth and resilience that defy any comparison to Libya, Iraq, or Syria.
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