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Peru

Dispatch From The Heart Of Peru's Cocaine War

Every year, some 200 tons of pure cocaine is produced in the Peruvian valleys
Every year, some 200 tons of pure cocaine is produced in the Peruvian valleys
Frédéric Faux

PICHARI - Miguel doesn’t make a sound on his way to the plantation.

“Best to keep a low profile, put away your microphone,” he advises. The path leads all the way over the Apurímac River, whose brown waters wind through the middle of the forest, to a clearing where shrubs of coca grow across 12 square yards.

“Those are less than two years old and I can reap a harvest every three months,” explains the family man. The 80 bags of leaves are worth 6,250 sols ($2,465), four times a year. Coffee or cocoa is only worth 4,000 sols ($1,554) once a year. "Coca puts bread on the table and lets me send my children to school,” Miguel says matter-of-factly.

The same calculation is made by hundreds of settlers scattered across the foothills. This is why the Apurímac, Ene and Mantaro valleys, a region known as the VRAEM, ranks as the world’s biggest coca producer.

It’s also a time bomb for president Ollanta Humala’s police forces. Every year, some 200 tons of pure cocaine is produced in these Peruvian valleys. The army is busy fighting in this rugged terrain against the secret drug labs, as well as the Shining Path terrorist group, who are allies of convenience.

It’s in Pichari, capital of the VRAEM, where the tension is most intense. Every day, helicopters take off from the base across the river Ene, next to the city, to scan the surrounding valleys. The region has been declared a national emergency and, since Nov. 7, a law allows the military to be part of anti-drug operations.

Despite these efforts, the “narcoterrorists” of the Shining Path often have the upper hand: In April, they kidnapped 36 workers on the gas project site of Camisea, that provides 30% of Peru’s energy source. Since the beginning of 2012, at least 20 soldiers and policemen have been killed.

“The drug dealers are hidden in the mountains, I don’t know who they are,” says Miguel, in his wooden house in the small village of Natividad. “I quit my job as a driver to get a better standard of living thanks to coca. I’m not a drug trafficker. Trucks come in the afternoon, we weigh the leaves, I get paid, then they leave. Whatever happens to the coca doesn’t concern me.”

A priest's call

His neighbor, in jeans and a torn T-shirt, offers his two cents: “Would a smuggler live in such an isolated village, without electricity, where the streets turn to mud as soon as it rains?”

Most of these settlers only know how to grow coca, which is why the government launched a project in the VRAEM to “boost development,” which means applying tar to the six-hour trail leading to the nearest city of Ayacucho.

Crisostomo Oriundo, the technical head of the project in Pichari, is having doubts regarding the impact of those measures on farmers: “Today, they are no longer limiting themselves to planting. Just around the corner, you can buy plastic tarp, cement, some kerosene and, in a day, you have your soaking well. It allows you to turn coca into paste, which is the first step in cocaine cooking. A lot of them are already doing that.”

It’s not very safe to talk about these things with strangers in Pichari. Father Tomas’ preachings led to threats from angry drug traffickers in his unfinished church. “I’ve been invited to their houses several times for celebrations. They pay a lot of heed to what I might say or whom I talk with," Tomas explains. "They have a very efficient system of information, they are very careful about their business, they keep an eye on the peasants. If they stop growing coca, they have to sell their parcel and leave. We cope with this because here, everyone needs the coca business, farmers and their families, teenagers working weekends in the wells to pay for school.”

The young priest stands up to leave his sacristy, to cross the abandoned grounds leading to the church. “There’s the real issue, right here,” he concludes, pointing at a light green shrub that had randomly started to grow there – maybe from a coca-growing parishioner’s shoes. “Not only do we have Peru’s best coca, but it’s everywhere.”

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FOCUS: Russia-Ukraine War

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Photograph of Novatek's gravity-based structure platform for production of liquefied natural gas, floating on a body of water.

Russia, Murmansk Region - July 21, 2023: A view of Novatek's gravity-based structure platform for production of liquefied natural gas.

TASS/ZUMA
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In Russia, reports of gasoline and diesel shortages have been making headlines in the country for several months, raising concerns about energy supply. The situation escalated in September when a major diesel shortage hit annexed Crimea. Even before that, farmers in the southern regions of Russia had raised concerns regarding fuel shortages for their combines.

“We’ll have to stop the harvest! It will be a total catastrophe!” agriculture minister Dmitry Patrushev had warned at the time. “We should temporarily halt the export of petroleum products now until we have stabilized the situation on the domestic market.”

Stay up-to-date with the latest on the Russia-Ukraine war, with our exclusive international coverage.

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As the crisis deepens, experts are highlighting the unintended consequences of government intervention in fuel pricing and distribution.

The Russian government has long sought to control the prices of essential commodities, including gasoline and diesel. These commodities are considered "signalling products", according to Sergei Vakulenko, an oil and gas expert and fellow at the Carnegie Endowment. Entrepreneurs often interpret rising gasoline prices as a signal to adjust their pricing strategies, reasoning that if even gasoline, a staple, is becoming more expensive, they too should raise their prices.

The specter of the 2018 fuel crisis, where gasoline prices in Russia surged at twice the rate of other commodities, haunts the authorities. As a result, they implemented a mechanism to control these prices and ensure a steady supply. Known as the "fuel damper," this mechanism seeks to balance the profitability of selling fuel in both domestic and foreign markets.

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