Russian roulette

By Rachel Ehrenfeld and Alyssa A. Lappen
Washington Times | June 1, 2006

On May 25, Norex Petroleum, a Cyprus company with Canadian shareholders, received permission to begin discovery against Alfa Group in the U.S. District Court for the Southern District of New York. Norex charges that Alfa Group, the Russian conglomerate and its many affiliates wired millions through U.S. banks, created an illegal slush fund, avoided U.S. and U.K. taxes, and fraudulently seized the oil-producing assets of Norex’s Yugraneft subsidiary, thus violating the Racketeer Influenced and Corrupt Organizations Act (RICO), among other U.S. laws.

If Norex proves its case against the Alfa Group and wins in U.S. courts, the outcome could further damage already shaky U.S. relations with purportedly capitalist, democratic Russia. Meanwhile, global investors should consider Alfa Group’s alleged behavior as a stern warning of the kind of treatment foreigners can expect from Vladimir Putin’s increasingly autocratic regime.

Mr. Putin seeks to secure his state’s role in global energy markets, and further control energy production and prices. On March 1, Mr. Putin declared, that “global energy security” is the most pressing issue facing the G8 and the world.

On May 22, he announced a Russia-Kazakhstan venture to expand capacity at Orenburg’s natural gas refinery, for 50 percent Russian ownership in the facility. Reasserting Russia’s energy might, Putin aide Igor Shuvalov stated: “We are prepared to provide Europe with oil and gas on a long-term basis and we are taking on the role of the leader…We will continue our expansion whether our European partners like it or not.” Continue reading “Russian roulette”


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Dollars For Terror

By Dr. Rachel Ehrenfeld and Alyssa A. Lappen
FrontPageMagazine.com | April 21, 2006

Humanitarian aid is universally understood to provide “assistance to victims of natural disasters, war situations or other catastrophic events.” However, now this definition is expanding to include aiding a terrorist regime. Under the guise of “humanitarian aid,” money is beginning to flow to the HAMAS government.

To date, Saudi Arabia, Iran, and Qatar have given the HAMAS led Palestinian Authority $192 million; the Saudis gave $92 million, and Qatar and Iran $50 [million] each. Russia gave another $10 million, bringing total aid to the new PA administration to just over $200 million. The U.S. says it has authorized of $245 million for “Basic humanitarian assistance — including health, food and education.”

In addition, the U.S. “will also provide $42 million to strengthen civil society and independent institutions.” UNRWA will distribute most of this aid. Since when do “education and strengthen[ing] civil society and independent institutions” qualify as “Humanitarian aid”?

HAMAS clearly has a different view of education and civil society: Culture minister ‘Atallah Abu Sabah announced, on April 8, the HAMAS government “would work to reinforce the culture of resistance [i.e., violence and terrorism directed against Israel] and to instill it in the hearts of our boys and girls so that they may continue down the same path to the liberation of the Palestinian lands.” Surely, this is not the kind of education that the Administration, or the American public should aid. Continue reading “Dollars For Terror”


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When in Rome…

By Dr. Rachel Ehrenfeld and Alyssa A. Lappen *
New York Sun | Apr. 19, 2006

Tariq Ramadan, who is barred from the U.S., is invited to speak at a conference on May 4-5, 2006, sponsored by the American Embassy in Rome, on “Immigration and Integration: Islam in Europe and Islam in the U.S.” The conference is organized by the Centro Studi Americani in Rome, which according to the Web site of its affiliate, John Cabot University, is “one of the major American institutions in Europe.” The American Ambassador, Ronald P. Spogli, is scheduled to open the conference.

Ramadan, a Swiss citizen and grandson of the founder of the Muslim Brotherhood in Egypt, Hasan al-Banna, had his visa revoked by the Department of Homeland Security on July 28,2004.The visa was revoked under the Immigration and Nationality Act, amid press speculation that the revocation stemmed from the section barring entry to persons with a “position of prominence within any country to endorse or espouse terrorist activity,” or who have “potentially serious adverse foreign policy consequences for the United States.”

While no specifics were detailed for this revocation, apparently his activities, lectures and writings in support of the Islamist agenda were the cause for this decision. According to a Spanish judge, Balatasar Garzon, Ramadan had “routine contacts” with Ahmed Brahim, an Algerian believed to be the financial chief of Al Qaeda and the financier of the 1998 U.S. embassy bombings in Kenya and Tanzania.

In 1995, during a series of terrorist attacks in Paris perpetrated by the Algerian Armed Islamist Movement, or AIM, the French interior minister, Jean Louis Debre, forbade Ramadan to enter France because of his connections to that terrorist group.

Moreover, according to the French daily newspaper Le Monde, Ramadan is also believed to have organized a 1991 meeting between Al Qaeda’s second-in-charge, Ayman al Zawahiri, and Omar Abdel Rahman, who was convicted in the 1993 bombing of the World Trade Center, which killed six people and injured more than 1,000.

Interviewed by the Italian magazine Panorama, on September 23, 2004, about “The art of ‘explaining’ the killing of Jews,” Ramadan’s answer to the question of “whether it is right to kill children and Israeli civilians because they are considered soldiers,” was that it is “contextually explicable.”

Indeed, Ramadan has given enough public speeches in mosques all over Europe, inciting his Muslim listeners against the West, that the founder of Doctors Without Borders, Bernard Kouchner, describes him as a “most dangerous man.”

The Muslim Brotherhood and Ramadan usually refrain from publicly advocating violence. However, as stated on the Muslim Brotherhood charter and its Web site, it seeks to install an Islamic totalitarian empire, a worldwide caliphate, through stages designed to Islamize targeted nations by whatever means available. This should not be a message promoted by the U.S. embassy in Rome.

If Ramadan’s invitation was not deliberate, it is a case of gross negligence on the embassy’s part. When the Department of Homeland Security ruled that he was denied entry to the U.S., presumably for endorsing and espousing terrorist activity, it was a signal that he posed a danger to U.S. interests.

Nothing that Tariq Ramadan has done since his visa was revoked in 2004 has given any reason to doubt the judgment of the Department of Homeland Security. Inviting Ramadan to a U.S.-sponsored event sends the message that his views are worth hearing out and are a valid part of the debate, even if we disagree with them.

The cultural affairs officer of the embassy, Mark Smith, gave the following response to our inquiry: “Mr. Ramadan was invited by the Centro…. The embassy is not providing any funding or other support for Mr. Ramadan’s participation in the conference.” This is an inadequate and worrisome response. The fact that the Centro Studi Americani and not the embassy invited Ramadan is irrelevant. By supporting and sponsoring the conference and using the Great Seal of the United States on the conference invitation, the embassy is conferring the prestige and approval of America upon a hearing of Ramadan’s despicable views – which the Department of Homeland Security deemed sufficiently dangerous to bar him from the country.

If America is to win the war on terrorism, we must not provide legitimacy to Islamist extremists deemed too dangerous to enter the U.S. If the American Embassy does not withdraw its sponsorship of this conference, it is likely the harbinger of a tilt in U.S. policy toward dialogue with those who wish to destroy us, or at least an indication that the State Department has a very different view of what poses a threat to this country.

* Note: As a matter of editorial policy, the New York Sun never ran double bylines or gave credit to more than one author, even when credit was due; consequently, this piece originally ran without proper credit to co-author Alyssa A. Lappen.


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Protecting U.S. Strategic Assets

By Dr. Rachel Ehrenfeld and Alyssa A. Lappen
FrontPageMagazine.com | March 24, 2006

While different port security bills have been proposed after the Dubai’s retreat from the deal, few, if any tackle the issue of foreign ownership. Yet, as Rep Christopher Shays noted, “We should want to pay particular attention to this because after 9/11 we’re not just fighting terrorism we are fighting radical Islamic terrorists.”

The failed DP World deal drew attention to the fact that most U.S. ports are managed by foreigners. Yet, while the American public was concerned about a deal with the Untied Arab Emirates (UAE), which assists the U.S. in the war on terror, but also assists HAMAS, few noticed that the Saudis have long owned a fifty percent stake in the Houston-headquartered Motiva Enterprises LLC. Saudi Arabia, of course, continues to fund the spread of radical Islam around the world.

Motiva is a joint venture of the Shell Oil Company and Saudi Refining, a subsidiary of Aramco, the Saudi government-owned company. Motiva ships petroleum products, including gasoline and aviation fuel, into Connecticut, where it owns and operates portions of the New Haven and Bridgeport ports.

Additionally, Motiva operates portions of 15 other ports nationwide, in Tampa; Fort Lauderdale; Dania, Fl.; Hollywood, Fl.; Baltimore; Lawrence and New York, N.Y.; Newark and Sewaren, NJ; Convent and Norco, La.; South Portland, Me.; Providence; Port Arthur and Port Nechas in Texas; Since 2002, Motiva received in one year alone, at least 14 port security grants totaling at least $4 million from the U.S. Department of Homeland Security, according to undated DHS documents. The grants were awarded for “surveillance” and “physical enhancement.” Finally, Motiva owns two Louisiana refineries and full or partial interests in 47 product terminals. Motiva also owns above-ground storage tanks in the port of Baltimore, as in the other ports. Motiva and its partner Shell Oil, collectively account for about 10 percent of total refining capacity and a 13 percent share of U.S. gasoline sales. Continue reading “Protecting U.S. Strategic Assets”


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The Mullah-Hamas Axis

By Dr. Rachel Ehrenfeld and Alyssa A. Lappen
FrontPageMagazine.com | March 14, 2006

“We are continuing in Khomeini’s path,” HAMAS leader Khaled Mashaal declared on March 1, 2006, while in Iran for another of his many recent visits. Mashaal emphasized that HAMAS is the spiritual offspring of the Ayatollah Khomeini—a surprising reaffirmation that the Muslim Brotherhood’s influence extends to Shiite Iran, not only to Sunni organizations.

Mashaal’s statement should have come as no surprise, considering the February 22 public reassurance of Iranian president Mahmoud Ahmadinedjad: “Since the divine treasures are infinite, you [HAMAS] should not be concerned about economic issues.”

The MB heavily influenced Ayatollah Ruhollah Khomeini, who developed the Iranian version of their ideology in the 1970s. Khomeini adhered to the teaching of Egyptian MB spiritual leader Sayyid Qutb and followed the lead of Muhammad Navab-Safavi, who fled from Iran to Egypt and was an MB guest donate a quarter of their income to HAMAS. Continue reading “The Mullah-Hamas Axis”


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Economic Jihad and U.S. Ports?

By Rachel Ehrenfeld and Alyssa A. Lappen
Washington Times | Mar. 12, 2006

Thanks to our congressmen who lined up against trusting the management and leases of U.S. ports to the sheikdom of Dubai, Dubai Ports World announced on March 9 that it will transfer its U.S. operations to an American entity. However, it is not clear that they gave up the ownership.

Our elected officials knew all along that this deal would have been a grave mistake. But even they did not realize this deal’s full implications. DP World’s acquisition of the British Peninsular and Oriental Steam Navigation (P&O;), is not merely a financial transaction. Rather, it signals a major advance in the economic jihad waged by the Islamic world against the West.

According to a fatwa issued on July 10, 2002 by Hussein Shihata, Professor of Islamic Economy at Cairo’s al-Azhar University, economic jihad’s “primary aim is to weaken the economy of the Zionists, the Crusaders and their allies, while at the same time, it strengthens the Arab and Islamic economy in a way that make it a self-dependent economy.”

The Dubai government’s recent acquisitions have serious global strategic and security implications, since it puts the Islamic city-state of Dubai, one of the United Arab Emirates (UAE), in control of major ports worldwide. On Feb. 26, while the uproar about the sale of the leases and management of 22 U.S. ports to Dubai was raging, a sister emirate, Abu Dhabi, demonstrated the real attitude toward the U.S. by confiscating a text book, ‘World Cultures,’ used at the American school there.

The Ministry of Education banned the book “for allegedly presenting Islam and the Muslim countries including Gulf States in a negative light while glorifying Israel on the other hand.” And despite repeated statements that the UAE joined the U.S. war on terrorism, after September 11, on December 4, 2002, Abu Dhabi Islamic Bank, controlled by members of the ruling family transferred $26,616.6 to Hamas’ Tulkarem Zakat and Sadaqat Committee. Another transfer on April 7, 2003 of $11,416 to the same Hamas organization, was also documented by the Intelligence and Terrorism Information Center at the Center for Special Studies. Yet the UAE is praised by members of the Bush administration as “an important ally against terrorism,” and “a good ally.”

Gaining possession of P&O;’s worldwide operation followed Dubai Ports World’s $1.15 billion 2004 purchase of the Florida-based CSX World Terminals, “a leading international container terminal developer and operator with operations in Asia, Europe, Australia and Latin America.”

The P&O; operations included “29 container terminals and logistics operations in over 100 ports, from China and India, to Argentina, Canada, the U.S., Russia, the Middle East and Africa. It also managed “freight and tourist passengers between the UK and Belgium, France, Holland, Ireland and Spain.” In addition, P&O; held property in the U.K., Europe and the United States. Now, most of these are controlled and operated by the Dubai government-owned DP World.

In Australia, for example, P&O; established “Defense Maritime Services, ” focusing “on the Government sector (with Defense, Science and Security) and the specialized bulk (port and ship) services sector.” From there, P&O;’s “primary operational regions were South East Asia, Australia, the Antarctic and Southern Oceans.” These, too, are now the possessions of the UAE through DP World. On March 9, 2006, DP World declared its purchase of P&O; complete. According to the announcement, “The deal makes DP World a top three global port operation, with 51 terminals in 30 countries across 5 continents.”

To help finance the purchase of P&O;, DP World has issued “the world’s biggest-ever Islamic bond issue,” a $3.5 billion Sukukbond — together with Dubai’s Ports Customs and Free Zone Corp. (PCFC). The Sukuk is the Islamic version of an asset-backed zero coupon bond, which pays yield and principle at maturity. This Sukuk was underwritten by the PCFC and Dubai Islamic Bank, and 30 percent of each bond is convertible into PCFC shares when the company goes public in 2007.

The Sukuk issue has attracted non-Muslim investors, including banks, asset management companies, and high-net-worth individual from across Europe and Asia. Since Islamic law governs the Sukuk, all these non-Muslim investors will subscribe to Islamic laws along with their bond purchases. This extremely attractive variable yield of 7.25 percent to 8.25 percent is some 250 to 350 basis points more than that offered on a two-year dollar Libor swap. In the current fixed-income market, where two-year U.S. Treasuries yield 4.66 percent, it is virtually impossible to find an investment-grade two-year bond with such a high interest rate anywhere else.

With such tempting returns, it is not surprising that Western investors have been lured into supporting the growing influence of the sharia-controlled Islamic financial system. This is one way in which the West weakens its financial underpinnings while strengthening “the Arab and Islamic economy in a way that make it a self-dependent economy,” as advocated by Hussein Shihata’s fatwa.

How long will it take for Islamic companies running Western ports and the banking institutions funding them to demand that all products shipped through these ports meet Islamic laws? How long before pork and alcohol are banned from ships going through ports controlled by Islamic companies and laws?

The purchase of P&O; promises Islamic interests a head start on gaining control over the majority of global shipping facilities, and marks an important step in the growing Islamic financial network.

Rachel Ehrenfeld is the director of American Center for Democracy and a member of the Committee on the Present Danger. Alyssa A. Lappen is a senior fellow at the American Center for Democracy.


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