Apartment block and warehouses hit in missile attack
President Zelenskiy condemns strike on his hometown
Air strike is latest of many since Russia invaded
KRYVYI RIH, Ukraine, June 13 (Reuters) – Eleven civilians were killed in a Russian missile attack that struck an apartment building and warehouses in Ukrainian President Volodymyr Zelenskiy’s hometown of Kryvyi Rih on Tuesday, local officials said.
Emergency services said four were killed in the apartment block and seven at the warehouses, where officials said a private company stored goods such as fizzy drinks. Mayor Oleksandr Vilkul said none of the targets had military links.
A further 25 people were wounded, two of whom suffered severe burns and were in critical condition, the chief doctor of one of Kryvyi Rih’s hospitals told reporters.
Residents sobbed outside the burnt-out apartment block, from which smoke billowed after the early-morning attack on the central Ukrainian city.
Olha Chernousova, who lives in the five-storey apartment block, said she was woken by an explosion which sounded like thunder and thrown out of her bed by a violent blast wave.
“I ran to my front door, but it was very hot there… the smoke was heavy,” she said.
“What could I do? I was sat on the balcony, terrified I would lose consciousness. Nobody came for a long time… I thought I would have to jump into a tree.”
[1/6] Police officers stand next to the bodies of people killed by a Russian missile strike, amid Russia’s attack on Ukraine, in Kryvyi Rih, Dnipropetrovsk region, Ukraine June 13, 2023. REUTERS/Andrii Dubchak
Around her, the street and courtyard were strewn with glass and bricks. At least five cars were ruined husks.
Ihor Lavrenenko, who lives in a different part of the building, said he heard two blasts.
“I woke up from the first bang, a weak one, and went straightaway onto the balcony. Then the second one erupted overhead, I watched from my balcony as hot debris fell,” he said.
Zelenskiy, who was born in Kryvyi Rih, condemned the attack.
“Russian killers continue their war against residential buildings, ordinary cities and people,” he wrote on the Telegram messaging app. “Terrorists will never be forgiven, and they will be held accountable for every missile they launch.”
Russia has repeatedly struck cities across Ukraine since its full-scale invasion in February 2022 but denies targeting civilians. Moscow has also accused Ukraine of cross-border shelling as Kyiv carries out counter-offensive operations.
Ukraine’s military command said air defences had destroyed 10 out of 14 cruise missiles, and one of four Iranian-made drones, fired at Ukraine overnight.
Additional reporting by Lidia Kelly, Anna Pruchnicka and Aleksandar Vasovic; Editing by Timothy Heritage
AMSTERDAM, June 13 (Reuters) – A Dutch intelligence agency tipped off the CIA about an alleged Ukrainian plan in June 2022 to blow up the Nord Stream pipeline, Dutch national broadcaster NOS reported on Tuesday.
The NOS report, which was compiled with help from leading German media outlets, did not identify its sources.
It said that the Dutch military intelligence agency MIVD had warned the CIA of the existence of such a plan, leading to a warning from Washington to Kyiv not to attack the pipeline.
Unexplained explosions ruptured both Nord Stream 1 and the newly built Nord Stream 2 pipelines, carrying gas from Russia to Germany under the Baltic Sea, in September.
The blasts occurred in the economic zones of Sweden and Denmark. Both countries said the explosions were deliberate, but have yet to determine who was responsible. Those countries and Germany are investigating.
Washington and NATO called the incident “an act of sabotage”. Moscow accused investigators of dragging their feet and trying to conceal who was behind the attack. Ukraine denies responsibility.
The MIVD could not immediately be reached for comment.
Reporting by Toby Sterling; Editing by Conor Humphries
Putin: Russia may create ‘sanitary zone’ in Ukraine
MOSCOW, June 13 (Reuters) – President Vladimir Putin said on Tuesday that any further mobilisation would depend on what Russia wanted to achieve in the war in Ukraine, adding that he faced a question only he could answer – should Russia try to take Kyiv again?
More than 15 months since Putin sent troops into Ukraine, Russian and Ukrainian forces are still battling with artillery, tanks and drones along a 1,000-km (600-mile) front line, though well away from the capital Kyiv.
Using the word “war” several times, Putin offered a barrage of warnings to the West, suggesting Russia may have to impose a “sanitary zone” in Ukraine to prevent it attacking Russia and saying Moscow was considering ditching the Black Sea grain deal.
Russia, he said, had no need for nationwide martial law and would keep responding to breaches of its red lines. Many in the United States, Putin said, did not want World War Three, though Washington gave the impression it was unafraid of escalation.
But his most puzzling remark was about Kyiv, which Russian forces tried – and failed – to capture just hours after Putin ordered troops into Ukraine on February 24 last year.
“Should we return there or not? Why am I asking such a rhetorical question?” Putin told 18 Russian war correspondents and bloggers in the Kremlin.
“Only I can answer this myself,” Putin said. His comments on Kyiv – during several hours of answering questions – were shown on Russian state television.
Russian troops were beaten back from Kyiv and eventually withdrew to a swathe of land in Ukraine’s east and south which Putin has declared is now part of Russia. Ukraine says it will never rest until every Russian soldier is ejected from its land.
Putin last September announced what he said was a “partial mobilisation” of 300,000 reservists, triggering an exodus of at least as many Russian men who sought to dodge the draft by leaving for republics of the former Soviet Union.
Asked about another call-up by state TV war correspondent Alexander Sladkov, Putin said: “There is no such need today.”
MOBILISATION?
Russia’s paramount leader, though, was less than definitive on the topic, saying it depended on what Moscow wanted to achieve and pointing out that some public figures thought Russia needed 1 million or even 2 million additional men in uniform.
[1/6] Russian President Vladimir Putin attends a meeting with war correspondents at the Kremlin in Moscow, Russia June 13, 2023. Sputnik/Gavriil Grigorov/Kremlin via REUTERS
“It depends on what we want,” Putin said.
Though Russia now controls about 18% of Ukraine’s territory, the war has underscored the fault lines of the once mighty Russian armed forces and the vast human cost of fighting urban battles such as in Bakhmut, a small eastern city one twentieth the area of Kyiv.
Putin said the conflict had shown Russia had a lack of high-precision munitions and complex communications equipment.
He said Russia had established control over “almost all” of what he casts as “Novorossiya” (New Russia), a Tsarist-era imperial term for a swathe of southern Ukraine which is now used by Russian nationalists.
At times using Russian slang, Putin said Russia was not going to change course in Ukraine.
Russia’s future plans in Ukraine, he said, would be decided once the Ukrainian counteroffensive, which he said began on June 4, was over.
Ukraine’s offensive has not been successful in any area, Putin said, adding that Ukrainian human losses were 10 times greater than Russia’s.
Ukraine had lost over 160 of its tanks and 25-30% of the vehicles supplied from abroad, he said, while Russia had lost 54 tanks. Ukraine said it has made gains in the counteroffensive.
Reuters could not independently verify statements from either side about the battlefield.
Putin further said Ukraine had deliberately hit the Kakhovka hydro-electric dam on June 6 with U.S.-supplied HIMARS rockets, a step he said had also hindered Kyiv’s counteroffensive efforts. Ukraine says Russia blew up the dam, which Russian forces captured early in the war.
Putin said Russia needed to fight enemy agents and improve its defences against attacks deep inside its own territory, but that there was no need to follow Ukraine’s example and declare martial law.
“There is no reason to introduce some kind of special regime or martial law in the country. There is no need for such a thing today.”
Reporting by Reuters; editing by Andrew Osborn, Gareth Jones and Mark Heinrich
As Moscow bureau chief, Guy runs coverage of Russia and the Commonwealth of Independent States. Before Moscow, Guy ran Brexit coverage as London bureau chief (2012-2022). On the night of Brexit, his team delivered one of Reuters historic wins – reporting news of Brexit first to the world and the financial markets. Guy graduated from the London School of Economics and started his career as an intern at Bloomberg. He has spent over 14 years covering the former Soviet Union. He speaks fluent Russian.
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June 13 (Reuters) – Russia’s Defence Ministry released video footage on Tuesday of what it said were German-made Leopard tanks and U.S.-made Bradley Fighting Vehicles captured by Russian forces in a fierce battle with Ukrainian troops.
Reuters was able to confirm that the vehicles seen in the video were Leopard tanks and Bradley Fighting Vehicles, but was not able to independently verify the location or date of the footage.
The Defence Ministry said the armoured vehicles and tanks were captured on the Zaporizhzhia front in southern Ukraine, one of the areas where Ukrainian forces have been trying to counter-attack.
Two Leopard tanks were shown in the footage, which was released on the ministry’s official channel on the Telegram messaging application, along with two damaged Bradley Fighting Vehicles.
A still image from a video, released by Russia’s Defence Ministry, shows what it said to be a German-made Leopard tank captured by Russian forces in a battle with Ukrainian forces in the course of Russia-Ukraine conflict, in the Zaporizhzhia region of Ukraine, in this image taken from a handout footage released June 13, 2023. Russian Defence Ministry/Handout via REUTERS
The ministry in a short statement accompanying the footage called the captured military hardware “our trophies” and said the video showed soldiers from its Vostok (East) military grouping inspecting the equipment.
It noted that the engines of some of the vehicles were still running, evidence it said of how quickly their Ukrainian crews had fled.
Reuters cannot verify such battlefield accounts.
Ukraine said on Monday its troops had recaptured a string of villages from Russian forces along an approximately 100-km (60-mile) front in the southeast since starting its long-anticipated counteroffensive last week.
Unconfirmed reports from Russian military bloggers suggest Russian forces may have recaptured some territory which they ceded in recent days.
Reporting by Andrew Osborn and Felix Light
Editing by Gareth Jones
WASHINGTON, June 13 (Reuters) – A vast majority of Republicans believe federal criminal charges against Donald Trump are politically motivated, according to a Reuters/Ipsos poll completed on Monday that also showed him far ahead of his nearest rival in the race for the Republican presidential nomination.
The polling, which began on Friday, a day after Trump was indicted, found that 81% of self-identified Republicans said politics was driving the case, reflecting the deep polarization of the U.S. electorate. President Joe Biden, a Democrat, has repeatedly said he has no involvement in the case brought by the Department of Justice.
The number of Republicans who believe the former president is being unfairly targeted vastly exceeds the 30-35% of Trump supporters who are estimated by political analysts to make up his core base.
Some 62% of respondents in the Reuters/Ipsos poll, including 91% of Democrats and 35% of Republicans, said it was believable that Trump illegally stored classified documents at his home in Florida as alleged by prosecutors.
The indictment did not appear to dent Trump’s standing in the Republican nominating contest for the 2024 presidential election. The specific charges, including obstruction of justice, became public on Friday afternoon when the indictment was unsealed.
Some 43% of self-identified Republicans said Trump was their preferred candidate, compared to 22% who picked Florida Governor Ron DeSantis, Trump’s closest rival.
In early May, Trump led DeSantis 49% to 19%, but that was before DeSantis formally entered the race.
The rest of the Republican field, which includes former Vice President Mike Pence who declared his candidacy last week, had low single-digit levels of support.
Trump flew to Miami on Monday to face federal charges of unlawfully keeping U.S. national security documents and lying to officials who tried to recover them. Trump, who will appear in court on Tuesday, has proclaimed his innocence and vowed to continue his campaign to regain the presidency in the November 2024 general election.
Many Republican contenders in the 2024 race have accused the U.S. Justice Department of political bias and say it is being “weaponized” against Biden’s biggest Republican challenger. The department says all investigative decisions are made without regard to partisan politics.
Trump also faces charges in New York in a state criminal case related to alleged hush money payments to a pornographic film star. A Reuters/Ipsos poll in March found that Republicans also saw that investigation as politically motivated.
Biden’s approval rating stood at 41% last week, close to the lowest level of his presidency. Trump had a 40% approval rating at this point in his 2017-2021 presidency.
The latest poll included responses from 1,005 adults nationwide and had a credibility interval, a measure of precision, of 4 percentage points for all voting-age Americans and between 6 and 7 percentage points for Republicans.
Reporting by Jason Lange; Editing by Andy Sullivan, Ross Colvin and Howard Goller
TAIPEI, June 3 (Reuters) – China’s military rebuked the United States and Canada for “deliberately provoking risk” after the countries’ navies staged a rare joint sailing through the sensitive Taiwan Strait.
The U.S. Navy’s 7th Fleet said the guided-missile destroyer USS Chung-Hoon and Canada’s HMCS Montreal conducted a “routine” transit of the strait on Saturday “through waters where high-seas freedoms of navigation and overflight apply in accordance with international law”.
“Chung-Hoon and Montreal’s bilateral transit through the Taiwan Strait demonstrates the commitment of the United States and our allies and partners to a free and open Indo-Pacific,” it said in a statement.
The Eastern Theatre Command of China’s People’s Liberation Army said its forces monitored the ships throughout and “handled” the situation in accordance with the law and regulations.
“The countries concerned deliberately create incidents in the Taiwan Strait region, deliberately provoke risks, maliciously undermine regional peace and stability, and send the wrong signal to ‘Taiwan independence’ forces,” it said late Saturday.
Taiwan’s defence ministry said the two ships sailed in a northerly direction through the strait and that it had observed nothing unusual.
While U.S. warships transit the strait around once a month, it is unusual for them to do so with those of other U.S. allies.
The mission took place as the U.S. and Chinese defence chiefs were attending a major regional security summit in Singapore.
At that event, U.S. Secretary of Defense Lloyd Austin rebuked China for refusing to hold military talks, leaving the superpowers deadlocked over Taiwan and territorial disputes in the South China Sea.
There was no immediate response to the sailing from China’s military, which routinely denounces them as a U.S. effort to stir up tensions.
The last such publicly revealed U.S.-Canadian mission in the narrow strait took place in September.
China has been ramping up military and political pressure in an attempt to force Taiwan to accept Beijing’s sovereignty claims, which the government in Taipei strongly rejects.
Reporting by Ben Blanchard; Editing by William Mallard and Nick Zieminski
BAHANAGA, India, June 3 (Reuters) – At least 288 people have died in India’s worst rail crash in over two decades, officials said on Saturday, after a passenger train went off the tracks and hit another one in an accident a preliminary report blamed on signal failure.
One train in Friday’s accident also hit a freight train parked nearby in the district of Balasore in Odisha state in the east of the country, leaving a tangled mess of smashed rail cars and injuring 803.
The death toll has reached 288, said K. S. Anand, chief public relations officer of the South Eastern Railway.
Dead bodies are still trapped in the mangled coaches and the rescue operation is continuing, a Reuters witness said, while the death toll is expected to rise.
A preliminary report indicates that the accident was the result of signal failure, Anand said.
“The Coromandel Express was supposed to travel on the main line, but a signal was given for the loop line instead, and the train rammed into a goods train already parked over there. Its coaches then fell onto the tracks on either side, also derailing the Howrah Superfast Express,” he said.
Surviving passenger Anubha Das said he would never forget the scene. “Families crushed away, limbless bodies and a bloodbath on the tracks,” he said.
Video footage showed derailed train coaches and damaged tracks, with rescue teams searching the mangled carriages to pull the survivors out and rush them to hospital.
Dead bodies were lying on the bloodstained floor of a school used as a makeshift morgue, and police helped relatives identify the bodies, covered with white cloths and placed inside chained bags.
Prime Minister Narendra Modi arrived at the scene, talked to rescue workers and inspected the wreckage. He also met the survivors at hospitals.
“(I) took stock of the situation at the site of the tragedy in Odisha. Words can’t capture my deep sorrow. We stand committed to providing all possible assistance to those affected,” Modi said.
A witness involved in rescue operations said the screams and cries of the injured and the relatives of those killed were chilling. “It was horrific and heart-wrenching,” he said.
Families of the dead will receive 1 million rupees ($12,000), while the seriously injured will get 200,000 rupees, with 50,000 rupees for minor injuries, Railway Minister Ashwini Vaishnaw said. Some state governments have also announced compensation.
[1/20] Rescue workers search for survivors at the site of a train collision after the accident in Balasore district in the eastern state of Odisha, India, June 3, 2023. REUTERS/Adnan Abidi
“It’s a big, tragic accident,” Vaishnaw told reporters after inspecting the accident site. “Our complete focus is on the rescue and relief operation, and we are trying to ensure that those injured get the best possible treatment.”
At least 261 people died in an accident involving two long-distance passenger trains in eastern Indian state of Odisha on June 2.
DISMEMBERED BODIES
“I was asleep,” an unidentified male survivor told NDTV news. “I was woken up by the noise of the train derailing. Suddenly I saw 10-15 people dead. I managed to come out of the coach, and then I saw a lot of dismembered bodies.”
Video footage from Friday showed rescuers climbing on one of the mangled trains to find survivors, while passengers called for help and sobbed next to the wreckage.
“We rescued at least 30 people, and some of them managed to survive, but three or four of them died,” said Sanjeev Rout, an electrician. A few metres away, rescue workers tried to cut their way into a damaged red-coloured coach.
The collision occurred at around 7 p.m. (1330 GMT) on Friday when the Howrah Superfast Express from Bengaluru to Howrah in West Bengal collided with the Coromandel Express from Kolkata to Chennai.
Indian Railways says it transports more than 13 million people every day. But the state-run monopoly has had a patchy safety record because of ageing infrastructure.
Odisha Chief Minister Naveen Patnaik described the crash as “extremely tragic”.
Opposition Congress party leader Jairam Ramesh said the accident reinforced why safety should always be the foremost priority of the rail network.
Modi’s administration has launched high-speed trains as part of plans to modernise the network, but critics say it has not focused enough on safety and upgrading ageing infrastructure.
Experts said Friday’s train accident came as a blow to Modi’s makeover plans for railways.
India’s deadliest railway accident was in 1981 when a train plunged off a bridge into a river in Bihar state, killing an estimated 800 people.
Canadian Prime Minister Justin Trudeau, British Prime Minister Rishi Sunak and French President Emmanuel Macron expressed condolences over the accident.
($1 = 82.40 rupees)
Additional reporting by Akriti Sharma, Subrata Nag Choudhury, Mayank Bhardwaj, Sakshi Dayal, Anirudh Saligrama, Baranjot Kaur, Nandini S, Adnan Abidi and Sunil Kataria; Editing by Edwina Gibbs, William Mallard, Mark Potter and Giles Elgood
WASHINGTON, May 24 (Reuters) – The central pillar of any debt-ceiling agreement between President Joe Biden and House Republican Kevin McCarthy is shaping up to be “discretionary spending” – the chunk of the United States’ roughly $6 trillion annual federal budget that is set annually by Congress.
Talks are fluid as Biden and McCarthy work towards a deal to raise the $31.4 trillion debt ceiling and avoid a default as soon as June 1. But cuts to Social Security and Medicare programs that eat up most of the U.S. budget are already off the table.
Instead, funds for programs from education to rail safety to law enforcement could be cut, trims that economists warn will slow U.S. economic growth.
WHAT IS THE US DISCRETIONARY BUDGET?
Congress sets funding levels for discretionary spending every year, which powers a wide swath of military and domestic programs.
In 2022, discretionary spending reached $1.7 trillion, accounting for 27% of the overall $6.27 trillion spent, according to federal figures.
Military spending typically accounts for roughly half of that total, though the amount varies from year to year.
The other half is devoted to domestic programs like law enforcement, transportation, housing and scientific research.
Estimated U.S. government discretionary spending for fiscal year 2023, in billion US dollars
Discretionary spending as a share of U.S. gross domestic product peaked in the late 1970s, and cuts have served as the backbone for several landmark budget deals since the 1980s.
Reuters Graphics
HOW COULD DISCRETIONARY CUTS WORK?
Biden and Democrats have offered to hold discretionary spending flat from the current 2023 fiscal year, a cut from Biden’s 2024 budget, and then cap spending in future years.
House Republicans passed a plan last month that would save $3.2 trillion by capping growth at 1% annually for 10 years.
Republicans say they will not accept a deal unless it results in the government spending less money than it did in the last fiscal year, and are pushing for cuts to 2022 levels.
Both sides are also at odds over how long any spending caps should last, with Republicans now offering caps for six years, and the White House only two.
Negotiators are avoiding the main driver of U.S. debt: rising retirement and health costs, driven by an aging population.
The Social Security pension program is projected to increase by 67% by 2032, and the Medicare health program for seniors will nearly double in cost during that period, according to the nonpartisan Congressional Budget Office. Together, these programs account for roughly 37% of current federal spending.
U.S. spending on health, retirement and other benefit programs has climbed steadily in recent decades, but negotiators in debt-ceiling talks look to cut other domestic and military spending.
MORE BATTLES AHEAD
If they can hammer out a general agreement on these levels and caps, if could help the United States avoid default, but would likely set up another series of budget battles, as lawmakers would still have to agree on funding levels for everything from fighter-plane construction to border enforcement.
Republicans have said they do not want to cut spending on national defense and veterans’ care, which would require other programs to shoulder steeper cuts.
The Republican-led House Appropriations Committee has unveiled legislation that would boost spending on veterans’ care, border security, and other priorities next year.
That would likely require cuts of more than 13% in other areas like scientific research and environmental protection if they want to keep overall spending at the same level as this year, according to the Center on Budget and Policy Priorities, a left-leaning think tank.
The Democratic-controlled Senate is not likely to accept those figures – which could lead to a government shutdown if the two sides do not reach agreement by Sept. 30, the end of the fiscal year.
POLITICS OF CUTS
While Republicans on the federal level have generally pushed for funding cuts to these discretionary items and Democrats to increase them, Republican-leaning states tend to benefit more from federal domestic spending, according to a Reuters analysis.
“Spending restraint always sounds good in the abstract and sounds less good when you’re talking about specifics,” said Jan Moller, head of the Louisiana Budget Project, a nonpartisan think tank.
Even if Biden and McCarthy agree to spending caps in the years ahead, Congress might not stick to the agreement.
In 2011, Democratic President Barack Obama reached a deal with Republicans to save $1.8 trillion over 10 years through discretionary spending caps. But lawmakers opted to bypass those caps in the years that followed.
In the end, the agreement only saved $1.3 trillion, according to Brian Riedl, a fellow with the conservative Manhattan Institute.
Reporting by Jarret Renshaw and Andy Sullivan; Editing by Heather Timmons and Andrea Ricci
Andy covers politics and policy in Washington. His work has been cited in Supreme Court briefs, political attack ads and at least one Saturday Night Live skit.
MbS sends reminder to US on who calls the shots in region
Mbs a player whom Washington can neither disregard nor disavow
He is forging ties with other powers, reshapes foes relations
He reasserts Saudi place as energy giant in oil-reliant world
May 24 (Reuters) – Once labelled a pariah, Saudi Crown Prince Mohammed bin Salman took centre stage as master of ceremonies last week when Arab states readmitted Syria to the Arab League, signaling to Washington who calls the regional shots.
His effusive greeting of President Bashar al-Assad at the Arab summit with kissed cheeks and a warm embrace defied U.S. disapproval at Syria’s return to the fold and capped a turnabout in the prince’s fortunes spurred by geopolitical realities.
The prince, known as MbS, seeks to reassert Saudi Arabia as a regional power by using his place atop an energy giant in an oil-dependent world consumed by the war in Ukraine.
Shunned by Western states after the 2018 killing of journalist Jamal Khashoggi by a Saudi hit squad, the prince has now emerged as a player whom Washington can neither disregard nor disavow, but must deal with on a transactional basis.
Skeptical of U.S. promises on Saudi security and tired of its scolding tone, MbS is instead building ties with other global powers and, regardless of Washington’s consternation, remaking his relations with their shared foes.
His blithe confidence on the world stage was not only visible in his reception of Assad. Ukrainian President Volodymyr Zelenskiy came to the Jeddah meeting and MbS offered to mediate between Kyiv and fellow oil producer Moscow.
To be sure Saudi Arabia still depends militarily on the United States, which saved it from possible invasion by Saddam Hussein’s Iraq in 1990, monitors Iranian military activity in the Gulf and provides Riyadh with most of its weapons.
Still, with Washington seemingly less engaged in the Middle East and less receptive to Riyadh’s anxieties, MbS is pursuing his own regional policy with less apparent deference to the views of his most powerful ally.
“This is a strong signal to America that ‘we’re reshaping and redrawing our relations without you’,” said Abdulaziz al-Sager, Chairman of the Gulf Research Center, of the summit.
“He is not getting what he wants from the other side,” Sager added, saying Saudi Arabia’s ententes with regional foes were based on Riyadh’s approach to regional security.
DIPLOMATIC OFFENSIVE
MbS’ position strengthened last year when Western economies turned to Saudi Arabia to help tame an oil market destabilized by the war in Ukraine. It created the opportunity for MbS to launch a diplomatic offensive that included high profile summit appearances.
That effort was aided when Washington declared MbS immune from prosecution for Khashoggi’s killing despite his being directly implicated in it by U.S. intelligence.
A visit by U.S. President Joe Biden last July had already demonstrated Riyadh’s returning influence: The American leader left empty handed while the prince enjoyed a public display of U.S. commitment to Saudi security.
The Saudi pivot away from reliance on the United States was meanwhile evident when China mediated this year a settlement between Riyadh and its arch regional foe Iran after years of hostility.
The deal was not made from a position of Saudi strength: Iran’s allies had come out stronger than those of the kingdom in Iraq, Syria and Lebanon, and held most of the populated territory in Yemen.
Still, it showed Riyadh was able to cut its losses and work with U.S. rivals and foes to shore up its regional interests such as cooling the Yemen war where Saudi forces have been bogged down since 2015.
Meanwhile the prince has improved ties with Turkey and ended a boycott of Qatar, a neighbour he considered invading in 2017 according to diplomats and Doha officials.
“Over the past three years, the hatchet was buried and relations were repaired,” said Saudi columnist Abdulrahman Al-Rashed in Asharq Al-Awsat newspaper.
TRANSACTIONAL RELATIONSHIP
A Gulf official said the new, more directly transactional, relationship with the United States had replaced the old oil-for-defence model because of what Riyadh saw as a shakier security umbrella after the Arab revolts of 2011.
A senior State Department official said the relationship is “an important eight-decade one that spans generations, across administrations in our own country and across leaders in Saudi Arabia”.
“We have multiple interests when it comes to our relationship with Saudi Arabia…Our policy and engagement will seek to ensure that our relationship remains sound and able to meet our shared challenges of the future.”
Riyadh thought Washington had abandoned old allies during the revolts and might abandon the Al Saud dynasty too. At the same time it believed the U.S. pursuit of a nuclear deal with Tehran had led Washington to ignore the growing activity around the region of Iranian proxies seen by Riyadh as a threat.
That impression has strengthened. A Saudi source close to the ruling inner circle pointed to what he saw as lax enforcement of sanctions on Iran and a drawdown in Syria, where a small U.S. contingent has denied territory to Iran’s allies.
“I think countries in the region, as a consequence, will do what is best for them,” he said.
Meanwhile, Riyadh was annoyed that the U.S. pulled its support for Saudi operations in Yemen, launched after Washington repeatedly urged the kingdom to take responsibility for its own security.
Without direct American intervention or support for its own military efforts, Riyadh had little choice but to strike a deal with Iran even if that annoyed Washington, the source said.
“This is a consequence of the U.S. action,” he added.
Each side has a list of requests that the other is not willing to grant, the Gulf official said.
However both sides may have little choice but to put aside their grudges.
The kingdom may see the U.S. security umbrella as weakened, but still views it as crucial to Saudi defence. Western states have meanwhile remembered that Riyadh’s influence in a volatile oil market requires them to banish their qualms and deal with its de facto ruler and future king.
Writing by Samia Nakhoul; Editing by Angus McDowall
WASHINGTON, May 23 (Reuters) – Florida Governor Ron DeSantis suffered a chaotic start to his 2024 presidential election race on Wednesday when glitches marred an online forum hosted by Twitter owner Elon Musk that was meant to showcase DeSantis’ fitness for the job.
The Twitter broadcast of the hour-long interview , which had been intended as the formal launch for the DeSantis campaign, lost sound for extended stretches and thousands of users were either unable to join or were dropped.
It was an inauspicious start for a campaign predicated on the governor’s executive competence.
“We must end the culture of losing that has infected the Republican Party in recent years,” DeSantis said in the event with Musk once the problems were largely resolved. The hashtag #DeSaster was trending on Twitter.
DeSantis’ entrance in the Republican contest sets up a showdown with his one-time ally, former President Donald Trump, who lost the 2020 presidential election to Democrat Joe Biden.
The Florida governor framed himself as a get-it-done executive who stood up to the federal government over COVID policies and who has put an indelibly conservative stamp on his home state.
He defended his efforts in Florida to prohibit the teaching of concepts such as gender identity and systemic racism as protecting young children and pushing back against progressive ideology.
With a rising national profile and what are expected to be deep financial resources, DeSantis, 44, immediately became Trump’s biggest rival for the Republican nomination.
“Government is not about entertainment, not about building a brand,” DeSantis said, taking a veiled swipe at Trump. Notably he never mentioned Trump by name during the event.
Trump, 76, didn’t hesitate to mock DeSantis on his social media platform, Truth Social, over the stumbling start to his campaign.
“My Red Button is bigger, better, stronger, and is working (TRUTH!)” Trump posted, “Yours does not.”
Musk conceded there had been “technical issues because of the sheer scale” of the event, but added that “it’s just really great for the people to hear directly from presidential candidates.”
[1/6] Florida Governor Ron DeSantis speaks as he announces he is running for the 2024 Republican presidential nomination in this screen grab from a social media video posted May 24, 2023. Twitter @RonDeSantis/Handout via REUTERS
At one point, the Twitter event drew more than 600,000 listeners. By its conclusion, there were fewer than 300,000.
DeSantis’ campaign spokesman Bryan Griffin said on Twitter that enthusiasm for DeSantis had “literally busted up the internet.”
The campaign raised $1 million in an hour, Griffin said.
TRUMP AHEAD IN POLLS
Polls show Trump with more than a 2-to-1 edge over the Florida governor, who has long been considered a Republican rising star and the herald of a new generation of leaders in the party. Trump, who announced in November, also has a head start in organizing his campaign in key early voting states.
DeSantis’ central argument for his candidacy likely will be that he is the only Republican who can defeat Biden.
“Our president, while he lacks vigor, flounders in the face of our nation’s challenges and he takes cues from the woke mob,” DeSantis said.
Mainstream Republicans will be watching DeSantis carefully to see if he can recover from his missteps on foreign policy, such as his initial reluctance to express support for Ukraine in its war with Russia.
In the weeks leading up to his presidential bid, DeSantis toured the country, visiting states such as Iowa and New Hampshire that will hold early nominating contests. He has boasted of his record as Florida’s governor, including his battles with the federal government over pandemic policies.
DeSantis and his advisers were determined to wait to enter the race until the Florida Legislature could hand him a series of policy victories – and lawmakers have done just that.
He signed measures that severely restricted abortions in the state, made it easier for residents to carry concealed weapons, expanded a voucher program to allow students to attend private schools and eliminated funding for diversity programs at public universities, among other things.
DeSantis remains in a pitched battle with Walt Disney Co (DIS.N) over the company’s criticism of laws prohibiting the teaching of gender identity concepts in public schools. The company has filed a federal lawsuit accusing DeSantis of weaponizing state government to punish its operations.
Other declared Republican candidates include Nikki Haley, former U.S. ambassador to the United Nations, and Tim Scott, a U.S. senator from South Carolina.
[1/3] Members of the University of North Carolina’s diverse student body mingle and make their way across campus as the Supreme Court weighs the issue of race-conscious admissions to colleges, in Chapel Hill, North Carolina, U.S., March 28, 2023. REUTERS/Jonathan Drake/File Photo
WASHINGTON, May 24 (Reuters) – In 1998, the year a voter-approved measure barring the use of race-conscious admissions policies for public colleges and universities in California took effect, the percentage of Black, Hispanic and Native American students admitted at two of the state’s elite public schools plummeted by more than 50%.
Those figures for UCLA and the University of California, Berkeley offer a cautionary tale as administrators at schools around the United States await a Supreme Court decision due by the end of June that is expected to prohibit affirmative action student admissions policies nationwide.
That potential outcome in cases involving Harvard University and the University of North Carolina has brought new urgency to efforts by schools to maintain or increase racial and ethnic diversity in their student populations, according to interviews with senior administrators at a dozen colleges and universities.
“We cannot afford as a nation to regress on our goals to create an educated and equitable society,” said Seth Allen, head of admissions at Pomona College in California. “So it’s incumbent on higher education to figure out how to work collectively together to ensure that we’re not furthering the enrollment gap among different groups of students.”
Many selective U.S. colleges and universities for decades have used some form of affirmative action to boost enrollment of minority students, seeing value in having a diverse student population not only to offer educational opportunity but to bring a range of perspectives onto campuses.
Affirmative action refers to policies that favor people belonging to certain groups considered disadvantaged or subject to discrimination, in areas such as hiring and student admissions.
Schools are exploring numerous options. Administrators said they are drafting strategies to expand their recruitment of diverse applicants, remove application barriers and increase the rate of minority students who accept their admissions offers.
An official at Rice University in Houston said the school will lean on student essay responses to ensure it admits students from diverse backgrounds. The U.S. Air Force Academy will focus on recruiting more students from diverse congressional districts.
The president of Skidmore College in New York said connecting with high school counselors will become “more important than ever” to broaden the school’s applicant pool.
Many schools said they already have waived fees, made standardized testing optional and are looking to improve financial aid offers – steps that could help boost minority enrollment.
All of the administrators said their plans could change to comply with the scope of the Supreme Court’s reasoning in the Harvard and UNC cases. Some acknowledged that whatever steps schools take to circumvent a ban on race-conscious admissions policies might face legal challenges of their own.
“We’re likely to see a whole new generation of lawsuits arise from the new admission standards that will be adopted by colleges and universities,” said Danielle Holley, current dean of Howard University School of Law in Washington and incoming president of Mount Holyoke College in Massachusetts.
Lawsuits backed by an anti-affirmative action activist accused Harvard and UNC of unlawful discrimination in student admissions either by violating the U.S. Constitution’s promise of equal protection under the law or a federal law barring discrimination based on race and other factors.
UNC was accused of discriminating against white and Asian American applicants. Harvard was accused of bias against Asian American applicants. The schools denied these allegations.
GOING LOCAL
Many of the school administrators said they plan to focus resources on recruitment, a part of the admissions cycle they do not expect the court will restrict.
Admissions officers said they were broadening their outreach to high schools and community-based organizations in neighborhoods with lower incomes and educational attainment – places often populated by racial minorities.
Yvonne Berumen, vice president of admissions at Pitzer College in California, said her team might run essay workshops at high schools in those targeted zip codes – postal regions – in hopes of generating applications.
Chris George, dean of admissions at St. Olaf College in Minnesota, said high school data from national organizations like the College Board, which offers information on neighborhood income and housing stability, will help guide which high schools the college sends representatives to visit and the recruitment events they attend.
Community-based organizations that identify local students who show academic promise and help them apply to college will be crucial partners for identifying and recruiting potential applicants from diverse backgrounds, the administrators said.
“They become extensions of our recruiting and admissions team in many ways, and we’re seeing each year a bigger and bigger percentage of our students come from those community-based organizations,” said Kent Devereaux, president of Goucher College in Maryland.
Administrators at schools located in or near major cities, including Pomona College near Los Angeles and Sarah Lawrence College in New York, said they would hope to draw more students from racially diverse local high schools and take more transfer students from local community colleges.
Colonel Arthur Primas Jr., the U.S. Air Force Academy’s admissions director, said his racially diverse recruiting team will continue to visit schools in U.S. congressional districts with heavy concentrations of minorities and will try to encourage more students to seek nominations to the academy from their local members of Congress.
“The Air Force Academy has had a long tradition of actively recruiting diverse candidates,” Primas said. “But we’re going to have to really be expansive.”
Reporting by Gabriella Borter; Additional reporting by Donna Bryson; Editing by Will Dunham and Colleen Jenkins
Gabriella Borter is a reporter on the U.S. National Affairs team, covering cultural and political issues as well as breaking news. She has won two Front Page Awards from the Newswomen’s Club of New York – in 2020 for her beat reporting on healthcare workers during the COVID-19 pandemic, and in 2019 for her spot story on the firing of the police officer who killed Eric Garner. The latter was also a Deadline Club Awards finalist. She holds a B.A. in English from Yale University and joined Reuters in 2017.
OSLO, May 24 (Reuters) – The world’s largest aircraft carrier, the USS Gerald R. Ford, sailed into Oslo on Wednesday, a first for such a U.S. ship, in a show of NATO force at a time of heightened tension between NATO and Russia over the war in Ukraine.
The ship and its crew will be conducting training exercises with the Norwegian armed forces along the country’s coast in the coming days, the Norwegian military said.
“This visit is an important signal of the close bilateral relationship between the U.S. and Norway and a signal of the credibility of collective defence and deterrence,” said Jonny Karlsen, a spokesperson for the Norwegian Joint Headquarters, the operational command centre of the military.
At one spot on the Oslo fjord, dozens of people of all ages gathered on the shore to observe the vessel as it cruised by, taking pictures and videos.
Norwegian media reported the aircraft carrier would sail north of the Arctic Circle. Karlsen declined to comment on the reports.
The Russian embassy in Oslo condemned the aircraft carrier’s Oslo visit.
“There are no questions in the (Arctic) north that require a military solution, nor topics where outside intervention is needed,” the embassy said in a Facebook post.
“Considering that it is admitted in Oslo that Russia poses no direct military threat to Norway, such demonstrations of power appear illogical and harmful.”
NATO member Norway shares a border with Russia in the Arctic and last year became Europe’s largest gas supplier after a drop in Russian gas flows.
The Norwegian military and NATO allies have been patrolling around offshore oil and gas platforms since the autumn, following explosions on the Nord Stream pipelines in the Baltic Sea.
Reporting by Gwladys Fouche
Editing by Bernadette Baum
Oversees news coverage from Norway for Reuters and loves flying to Svalbard in the Arctic, oil platforms in the North Sea, and guessing who is going to win the Nobel Peace Prize. Born in France and with Reuters since 2010, she has worked for The Guardian, Agence France-Presse and Al Jazeera English, among others, and speaks four languages.
Hit finance ministry, president’s office, spy agency and others
Sources believe Beijing was seeking info on debt
NAIROBI, May 24 (Reuters) – Chinese hackers targeted Kenya’s government in a widespread, years-long series of digital intrusions against key ministries and state institutions, according to three sources, cybersecurity research reports and Reuters’ own analysis of technical data related to the hackings.
Two of the sources assessed the hacks to be aimed, at least in part, at gaining information on debt owed to Beijing by the East African nation: Kenya is a strategic link in the Belt and Road Initiative – President Xi Jinping’s plan for a global infrastructure network.
“Further compromises may occur as the requirement for understanding upcoming repayment strategies becomes needed,” a July 2021 research report written by a defence contractor for private clients stated.
China’s foreign ministry said it was “not aware” of any such hacking, while China’s embassy in Britain called the accusations “baseless”, adding that Beijing opposes and combats “cyberattacks and theft in all their forms.”
China’s influence in Africa has grown rapidly over the past two decades. But, like several African nations, Kenya’s finances are being strained by the growing cost of servicing external debt – much of it owed to China.
The hacking campaign demonstrates China’s willingness to leverage its espionage capabilities to monitor and protect economic and strategic interests abroad, two of the sources said.
The hacks constitute a three-year campaign that targeted eight of Kenya’s ministries and government departments, including the presidential office, according to an intelligence analyst in the region. The analyst also shared with Reuters research documents that included the timeline of attacks, the targets, and provided some technical data relating to the compromise of a server used exclusively by Kenya’s main spy agency.
A Kenyan cybersecurity expert described similar hacking activity against the foreign and finance ministries. All three of the sources asked not to be named due to the sensitive nature of their work.
“Your allegation of hacking attempts by Chinese Government entities is not unique,” Kenya’s presidential office said, adding the government had been targeted by “frequent infiltration attempts” from Chinese, American and European hackers.
“As far as we are concerned, none of the attempts were successful,” it said.
It did not provide further details nor respond to follow-up questions.
A spokesperson for the Chinese embassy in Britain said China is against “irresponsible moves that use topics like cybersecurity to sow discord in the relations between China and other developing countries”.
“China attaches great importance to Africa’s debt issue and works intensively to help Africa cope with it,” the spokesperson added.
THE HACKS
Between 2000 and 2020, China committed nearly $160 billion in loans to African countries, according to a comprehensive database on Chinese lending hosted by Boston University, much of it for large-scale infrastructure projects.
Kenya used over $9 billion in Chinese loans to fund an aggressive push to build or upgrade railways, ports and highways.
Beijing became the country’s largest bilateral creditor and gained a firm foothold in the most important East African consumer market and a vital logistical hub on Africa’s Indian Ocean coast.
By late 2019, however, when the Kenyan cybersecurity expert told Reuters he was brought in by Kenyan authorities to assess a hack of a government-wide network, Chinese lending was drying up. And Kenya’s financial strains were showing.
The breach reviewed by the Kenyan cybersecurity expert and attributed to China began with a “spearphishing” attack at the end of that same year, when a Kenyan government employee unknowingly downloaded an infected document, allowing hackers to infiltrate the network and access other agencies.
“A lot of documents from the ministry of foreign affairs were stolen and from the finance department as well. The attacks appeared focused on the debt situation,” the Kenyan cybersecurity expert said.
Another source – the intelligence analyst working in the region – said Chinese hackers carried out a far-reaching campaign against Kenya that began in late 2019 and continued until at least 2022.
According to documents provided by the analyst, Chinese cyber spies subjected the office of Kenya’s president, its defence, information, health, land and interior ministries, its counter-terrorism centre and other institutions to persistent and prolonged hacking activity.
The affected government departments did not respond to requests for comment, declined to be interviewed or were unreachable.
By 2021, global economic fallout from the COVID-19 pandemic had already helped push one major Chinese borrower – Zambia – to default on its external debt. Kenya managed to secure a temporary debt repayment moratorium from China.
In early July 2021, the cybersecurity research reports shared by the intelligence analyst in the region detailed how the hackers secretly accessed an email server used by Kenya’s National Intelligence Service (NIS).
Reuters was able to confirm that the victim’s IP address belonged to the NIS. The incident was also covered in a report from the private defence contractor reviewed by Reuters.
Reuters could not determine what information was taken during the hacks or conclusively establish the motive for the attacks. But the defence contractor’s report said the NIS breach was possibly aimed at gleaning information on how Kenya planned to manage its debt payments.
“Kenya is currently feeling the pressure of these debt burdens…as many of the projects financed by Chinese loans are not generating enough income to pay for themselves yet,” the report stated.
A Reuters review of internet logs delineating the Chinese digital espionage activity showed that a server controlled by the Chinese hackers also accessed a shared Kenyan government webmail service more recently from December 2022 until February this year.
Chinese officials declined to comment on this recent breach, and the Kenyan authorities did not respond to a question about it.
‘BACKDOOR DIPLOMACY’
The defence contractor, pointing to identical tools and techniques used in other hacking campaigns, identified a Chinese state-linked hacking team as having carried out the attack on Kenya’s intelligence agency.
The group is known as “BackdoorDiplomacy” in the cybersecurity research community, because of its record of trying to further the objectives of Chinese diplomatic strategy.
According to Slovakia-based cybersecurity firm ESET, BackdoorDiplomacy re-uses malicious software against its victims to gain access to their networks, making it possible to track their activities.
Provided by Reuters with the IP address of the NIS hackers, Palo Alto Networks, a U.S. cybersecurity firm that tracks BackdoorDiplomacy’s activities, confirmed that it belongs to the group, adding that its prior analysis shows the group is sponsored by the Chinese state.
Cybersecurity researchers have documented BackdoorDiplomacy hacks targeting governments and institutions in a number of countries in Asia and Europe.
Incursions into the Middle East and Africa appear less common, making the focus and scale of its hacking activities in Kenya particularly noteworthy, the defence contractor’s report said.
“This angle is clearly a priority for the group.”
China’s embassy in Britain rejected any involvement in the Kenya hackings, and did not directly address questions about the government’s relationship with BackdoorDiplomacy.
“China is a main victim of cyber theft and attacks and a staunch defender of cybersecurity,” a spokesperson said.
Reporting by Aaron Ross in Nairobi, James Pearson in London and Christopher Bing in Washington
Additional reporting by Eduardo Baptista in Beijing
Editing by Chris Sanders and Joe Bavier
West & Central Africa correspondent investigating human rights abuses, conflict and corruption as well as regional commodities production, epidemic diseases and the environment, previously based in Kinshasa, Abidjan and Cairo.
Reports on hacks, leaks and digital espionage in Europe. Ten years at Reuters with previous postings in Hanoi as Bureau Chief and Seoul as Korea Correspondent. Author of ‘North Korea Confidential’, a book about daily life in North Korea. Contact: 447927347451
Award-winning reporter covering the intersection between technology and national security with a focus on how the evolving cybersecurity landscape affects government and business.
Kyiv parodies past Kremlin denials of military involvement
Girding for counteroffensive against Russian invasion
LONDON/KYIV, May 24 (Reuters) – A two-day incursion from Ukraine into Russia’s western borderlands could force the Kremlin to divert troops from front lines as Kyiv prepares a major counteroffensive, and deal Moscow a psychological blow, according to military analysts.
Though Kyiv has denied any role, the biggest cross-border raid from Ukraine since Russia invaded 15 months ago was almost certainly coordinated with Ukraine’s armed forces as it prepares to attempt to recapture territory, the experts added.
“The Ukrainians are trying to pull the Russians in different directions to open up gaps. The Russians are forced to send reinforcements,” said Neil Melvin, an analyst at the Royal United Services Institute (RUSI).
Ukraine says it plans to conduct a major counteroffensive to seize back occupied territory, but Russia has built sprawling fortifications in its neighbour’s east and south in readiness.
The incursion took place far from the epicentre of fighting in Ukraine’s eastern Donbas region and around 100 miles (160 km) from the front lines in the northern Kharkiv region.
Reuters Image
“They’ll have to respond to this and put troops there and then have lots of troops all along the border area, even though that may not be the way the Ukrainians are coming,” Melvin said.
Russia’s military said on Tuesday it had routed militants who attacked its western Belgorod region with armoured vehicles the previous day, killing more than 70 “Ukrainian nationalists” and pushing the remainder back into Ukraine.
Kyiv has said the attack was carried out by Russian citizens, casting it as homegrown, internal Russian strife. Two groups operating in Ukraine – the Russian Volunteer Corps (RVC) and Freedom of Russia Legion – have claimed responsibility.
The groups were set up during Russia’s full-scale invasion and attracted Russian volunteer fighters wanting to fight against their own country alongside Ukraine and topple President Vladimir Putin.
Mark Galeotti, head of the London-based Mayak Intelligence consultancy and author of several books on the Russian military, said the two groups comprised anti-Kremlin Russians ranging from liberals and anarchists to neo-Nazis.
“They’re hoping that in some small way they can contribute to the downfall of the Putin regime. But at the same time, we have to realise that these are not independent forces … They are controlled by Ukrainian military intelligence,” he said.
Ukrainian presidential aide Mykhailo Podolyak repeated Kyiv’s position that it had nothing to do with the operation.
The United States says it does not “enable or encourage” Ukrainian attacks on Russian territory, but that it is up to Kyiv to decide how it conducts military operations.
A view shows damaged buildings, after anti-terrorism measures introduced for the reason of a cross-border incursion from Ukraine were lifted, in what was said to be a settlement in the Belgorod region, in this handout image released May 23, 2023. Governor of Russia’s Belgorod Region Vyacheslav Gladkov via Telegram/Handout via REUTERS/File Photo
Several similar incursions into Russia have occurred in recent months, and although this week’s was the largest known so far, it is still tiny when compared to frontline battles.
ECHOES OF 2014?
Alexei Baranovsky, a spokesperson for the political wing of the Freedom of Russia Legion, told Reuters in Kyiv that he could not disclose the number of troops involved in the operation, but that the legion had four battalions in total.
Baranovsky denied there had been heavy losses, and he dismissed Russian reports of large casualties as disinformation.
He said the unit was part of Ukraine’s International Legion and therefore part of its armed forces, but denied the incursion was coordinated with Ukrainian authorities.
“These are the first steps in the main objective of overthrowing Putin’s regime through armed force. There are no other alternatives,” he said.
Galeotti said the incursion looked like a Ukrainian battlefield “shaping” operation ahead of Kyiv’s planned counteroffensive.
“… This is really a chance to do two things. One is to rattle the Russians, make them worried about the possibility of risings amongst their own people. But secondly, force the Russians to disperse their troops,” he said.
Melvin noted that the operation also served to boost morale in Ukraine.
Kyiv officials have mimicked the Kremlin’s rhetoric surrounding Russia’s annexation of Crimea in 2014 when it initially denied the troops involved were Russian.
Podolyak blamed the Belgorod incursion on “underground guerrilla groups” comprising Russian citizens and said: “As you know, tanks are sold at any Russian military store.”
The remark appeared to echo Putin’s response in 2014 when asked about the presence of men wearing Russian military uniforms without insignia in Crimea: “You can go to a store and buy any kind of uniform.”
On social media, Ukrainians made reference to what they called the “Belgorod People’s Republic” – a nod to events in eastern Ukraine in 2014, when Russia-backed militias declared “people’s republics” in Ukraine’s Donetsk and Luhansk regions.
Ukrainians also circulated a video of President Volodymyr Zelenskiy delivering his famous “I am here” video address from Kyiv at the beginning of the invasion in February 2022. But instead of the presidential office in Kyiv, the background showed the welcome sign to the city of Belgorod.
Additional reporting by Max Hunder in Kyiv and Agnieszka Pikulicka-Wilczewska in Warsaw; editing by Mike Collett-White and Mark Heinrich
BRUSSELS, May 13 (Reuters) – Washington and the EU will pledge joint action to tackle concerns focused on China about non-market practices and coordinate their export controls on semiconductors and other goods at a meeting this month, a draft statement showed.
U.S. Secretary of State Antony Blinken, European Commission Vice-President Margrethe Vestager and other senior officials are due to meet for the fourth edition of the EU-U.S. Trade and Technology Council (TTC) in Lulea, Sweden, on May 30-31.
The draft statement seen by Reuters said the two sides would address non-market practices and economic coercion, and aim to hold regular talks on efforts to stop their companies’ knowledge linked to outbound investment supporting technologies of strategic rivals – an oblique reference to China.
They will also coordinate on their export controls on “sensitive items” – including goods that have a military use – and semiconductors, said the statement, which only mentions China twice and could still be changed before the meeting.
Brussels says it considers China a partner in some fields, an economic competitor and a strategic rival. The European Union plans to recalibrate its China policy, recognising coordination with a more hawkish United States is essential.
Highlighting the medical devices sector in China, the document said the transatlantic partners are “exploring possible actions” over the threat posed by non-market policies and practices.
They also aim to cooperate on efforts to counter foreign manipulation of information, including “China’s amplification of Russian disinformation narratives about the war” in Ukraine.
The two sides also said they were committed to working with the G7 to coordinate action to counteract acts of economic coercion, such as the trade restrictions the EU says China has imposed on EU member Lithuania.
Reporting by Philip Blenkinsop
Editing by Helen Popper
TORONTO, May 14 (Reuters) – Signs of recovery in Canada’s housing market after a year-long slump, just as higher borrowing costs are expected to slow much of the rest of the economy, could raise inflation and delay a shift by the central bank to interest rate cuts, analysts said.
The housing market’s upturn comes after the Bank of Canada paused its interest rate hiking campaign last month, leaving the benchmark rate at a 15-year high of 4.50% since January.
In addition, analysts say higher borrowing costs have so far caused less financial stress for homebuyers than they had expected, so the market has not had to accommodate a flood of supply from forced sellers.
The BoC is counting on slower economic growth to return inflation to its 2% target. A rebound in the housing market could boost activity and contribute directly to price pressures.
“The Bank of Canada at the end of the day is probably not going to be too thrilled if the housing market really starts to ramp up,” said Robert Kavcic, a senior economist at BMO Capital Markets. “From a shelter cost perspective, you are going to start to see more upward push on inflation in the second half of this year.”
The cost of shelter has the highest weighting in Canada’s consumer price index, accounting for 30%. And, home prices tend to be highly visible, so an increase could have a pronounced impact on inflation expectations, analysts say.
The average price for a home in the Greater Toronto Area, Canada’s most populous metropolitan region, rose in April on a month-over-month basis for a third straight month, while sales also moved higher. Other major markets have also showed gains.
Despite higher borrowing costs, mortgage delinquency rates have remained low for now in Canada after mortgage borrowers were put through a stress test showing they could manage if interest rates were 2 percentage points higher than the rate on their loan.
In addition, variable-rate borrowers have been sheltered from higher interest rates after lenders temporarily extended the period over which their debt is amortized, keeping their payments the same.
“One of the reasons the market has been able to stabilize so quickly is because there’s just no forced selling,” Kavcic said.
Things could change – Royal Bank of Canada recently warned of the risk that mortgage delinquencies rise by more than a third over the coming year.
The other worry is that stress in the U.S. regional banking sector could spill over to Canada. Clues on that front could come from the BoC’s Financial System Review – an annual checkup of financial system tensions – which is due for release on Thursday.
But there are also tailwinds to support a recovery, including supply shortfalls, record immigration and labor market strength, analysts said.
Wage growth could cool over the coming months, helping to lower inflation, but the Bank of Canada “is unlikely to be in a rush to cut interest rates if house prices are roaring higher again,” Stephen Brown, senior Canada economist at Capital Economics, said in a note.
Reporting by Fergal Smith; Editing by Steve Scherer and Jonathan Oatis
KATHMANDU, May 14 (Reuters) – A Nepali sherpa guide climbed Mount Everest for the 26th time on Sunday, hiking officials said, becoming the world’s second person to achieve the feat.
Pasang Dawa Sherpa, 46, stood atop the 8,849-m (29,032-ft) peak, sharing the record number of summits with Kami Rita Sherpa, said Bigyan Koirala, a government tourism official.
Kami Rita, who is also climbing on Everest now, could set another record if he makes it to the top.
Pasang Dawa reached the top with a Hungarian client, said an official of his employer Imagine Nepal Treks, a hiking company.
“They are descending from the top now and are in good shape,” the official, Dawa Futi Sherpa, told Reuters.
Sherpas, who mostly use their first names, are known for their climbing skills and make a living mainly by guiding foreign clients in the mountains.
Dawa Futi said a Pakistani woman, Naila Kiani, who also climbed the peak on Sunday, was the first foreign climber to summit Everest in this year’s climbing season, which runs from March to May.
This could not be independently confirmed as many foreign climbers are now headed for the peak, a day after the ropes to the top were fixed.
Kiani, a 37-year-old banker based in Dubai, had climbed four of the world’s 14 highest mountains before Everest, the Himalayan Times newspaper said.
Nepal has issued a record of 467 permits this year for foreign climbers seeking to reach the summit of Everest.
Each climber is usually accompanied by at least one sherpa guide, fuelling fears that a narrow section below the summit, known as the Hillary Step, could get crowded.
Everest has been climbed more than 11,000 times since it was first scaled by Sir Edmund Hillary and Sherpa Tenzing Norgay in 1953, with about 320 people dying in the effort, according to a Himalayan database and Nepali officials.
Reporting by Gopal Sharma; Editing by Clarence Fernandez
WASHINGTON, May 13 (Reuters) – President Joe Biden said on Saturday that talks with Congress on raising the U.S. government’s debt limit were moving along and more will be known about their progress in the next two days.
“I think they are moving along, hard to tell. We have not reached the crunch point yet,” Biden told reporters at Joint Base Andrews.
“We’ll know more in the next two days,” he said.
Biden is expected to meet with Republican House Speaker Kevin McCarthy and other congressional leaders early next week to resume negotiations.
The leaders had canceled a planned meeting on Friday to let staff continue discussions.
Aides for Biden and McCarthy have started to discuss ways to limit federal spending as talks on raising the government’s $31.4 trillion debt ceiling to avoid a catastrophic default creep forward, Reuters has reported.
The Treasury Department says it could run out of money by June 1 unless lawmakers lift the nation’s debt ceiling.
Reporting by Jeff Mason; Writing by Eric Beech; Editing by David Gregorio
Zelenskiy visits The Hague, says Putin must face justice
Diplomats work on extending Black Sea grains deal
KYIV, May 4 (Reuters) – Russian drones attacked the Ukrainian capital Kyiv on Thursday evening, the fourth assault in as many days subjecting residents to spasms of gunfire and explosions, and at least one drone was shot down.
City authorities had declared an alert for Kyiv and the surrounding area. Residents who had gone to air raid shelters said the drones arrived more quickly than usual after the alerts were declared. Reuters witnesses heard gunfire and repeated heavier explosions near the city centre.
The attacks started just after 8 p.m. (1700 GMT) and lasted around 20 minutes. Ukraine’s air force said in a statement that it had destroyed one of its own drones after the drone lost control over Kyiv region, probably because of a technical failure. It wasn’t clear how many drones in total were destroyed.
Russia said on Thursday that the United States was behind a purported drone attack on the Kremlin aiming to kill President Vladimir Putin. Washington and Kyiv denied involvement.
Putin will head a scheduled meeting of Russia’s Security Council on Friday and the Kremlin incident could be on the agenda, TASS news agency reported.
Ukrainian President Volodymyr Zelenskiy, speaking in The Hague after visiting the International Court of Justice, said Putin must be brought to justice over the war and that Kyiv would work to create a new tribunal for this purpose.
In other diplomacy, U.S. Ambassador to the United Nations Linda Thomas-Greenfield said on a visit to Brazil that she encouraged the government to include Ukraine in any attempt to negotiate an end to the war. She was referring to President Luiz Inacio Lula da Silva’s comments calling on the West to stop arming Ukraine to allow peace talks to start.
There are currently no peace talks to end the war, which has devastated Ukrainian towns and cities, killed thousands of people and driven millions from their homes.
FRONTLINE ACTION
Nearly 50 Russian attacks were repelled along the main sectors of the front line in eastern and southern Ukraine, the General Staff of the Ukrainian Armed Forces said on Thursday evening. The heaviest fighting is still in Bakhmut and in Maryinka, further south in Donetsk region, it said.
Russian forces also launched 66 air raids and engaged in 33 shelling episodes on Ukrainian positions and on towns and villages, causing casualties and damaging infrastructure, the report said.
Smoke rises over the city after remains of a shot down Russian drone landed on buildings, amid Russia’s attack on Ukraine, in Kyiv, Ukraine May 4, 2023. REUTERS/Stringer
Reuters was not able to verify the battlefield accounts.
MOSCOW CITES ‘US ORDERS’
Putin’s spokesman Dmitry Peskov, without providing evidence, said Ukraine had acted on U.S. orders to attack the Kremlin citadel in the early hours of Wednesday.
White House national security spokesperson John Kirby dismissed Russian “lies” and said there still was no conclusive evidence as to the authenticity of a video showing the drone at the Kremlin.
“Attempts to disown this (attack on the Kremlin), both in Kyiv and in Washington, are, of course, absolutely ridiculous. We know very well that decisions about such actions, about such terrorist attacks, are made not in Kyiv but in Washington,” Peskov told reporters.
Peskov said an urgent investigation was under way and that any response would be carefully considered and balanced.
Russia has increasingly accused the United States of being a direct participant in the war, intent on inflicting a “strategic defeat” on Moscow. Washington denies this, saying it is arming Kyiv to defend itself and retake illegally seized land.
KYIV, ODESA TARGETED
Earlier on Thursday, Russia fired two dozen combat drones at Ukraine, hitting Kyiv and also striking a university campus in the Black Sea city of Odesa. There were no reports of casualties. Russia denies targeting civilians in Ukraine.
Diplomats, meanwhile, are still working to keep a package deal for Ukrainian and Russian agricultural exports alive beyond May 18. Technical personnel from Turkey, Russia, Ukraine, and the United Nations will meet on Friday to discuss the deal, Turkish Defence Minister Hulusi Akar said.
Russia has a list of demands it wants met for continuation of the Black Sea grains pact, which the U.N. said helps tackle a global food crisis aggravated by Russian forces invading neighbouring Ukraine in February 2022.
Zelenskiy has vowed to drive all invading Russian forces back to the borders set in 1991 following the collapse of the Soviet Union. He said on Thursday the whole of Ukrainian society was preparing for a counteroffensive, which he said would be successful against what he called a “demotivated” Russia.
Reporting by Kyiv, Moscow and Amsterdam buros
Writing by Gareth Jones
Editing by Nick Macfie
Kremlin administration shifts focus from Kyiv to Washington
Allegation goes beyond previous accusations against U.S.
Washington denies accusation
Security experts: incident implausible as assassination attempt
Incident came six days before Victory Day showcase on Red Square
May 4 (Reuters) – Russia accused the United States on Thursday of being behind what it says was a drone attack on Moscow’s Kremlin citadel intended to kill President Vladimir Putin.
A day after blaming Ukraine for what it called a terrorist attack, the Kremlin administration shifted the focus onto the United States, but without providing evidence. The White House was quick to reject the charge.
Ukraine has also denied involvement in the incident in the early hours of Wednesday, when video footage showed two flying objects approaching the Senate Palace inside the Kremlin walls and one exploding with a bright flash.
“Attempts to disown this, both in Kyiv and in Washington, are, of course, absolutely ridiculous. We know very well that decisions about such actions, about such terrorist attacks, are made not in Kyiv but in Washington,” said Putin’s spokesman Dmitry Peskov.
He said the United States was “undoubtedly” behind the incident and added – again without stating evidence – that Washington often selected both the targets for Ukraine to attack, and the means to attack them.
“This is also often dictated from across the ocean … In Washington they must clearly understand that we know this,” Peskov said.
White House national security spokesman John Kirby told MSNBC television the Russian claims were false, and that Washington does not encourage or enable Ukraine to strike outside its borders.
Russia has said with increasing frequency that it sees the United States as a direct participant in the war, intent on inflicting a “strategic defeat” on Moscow. The United States denies that, saying it is arming Ukraine to defend itself and retake territory that Moscow has seized illegally in more than 14 months of war.
CALLS TO KILL ZELENSKIY
However, Peskov’s allegation went further than previous Kremlin accusations against Washington.
Putin was not in the Kremlin at the time, and security analysts have poured scorn on the idea that the incident was a serious assassination attempt.
But Russia has said it reserves the right to retaliate, and hardliners including former president Dmitry Medvedev have said it should now “physically eliminate” Ukrainian President Volodymyr Zelenskiy.
Peskov declined to say whether Moscow saw Zelenskiy as a legitimate target.
He said Russia had an array of options and the response would be carefully considered and balanced. He said an urgent investigation was under way.
Putin was in the Kremlin on Thursday and staff were working normally, he said.
The incident took place less than a week before Russia’s May 9 Victory Day celebrations marking the defeat of Nazi Germany in World War Two – an important public holiday and an opportunity for Putin to rally Russians behind what he calls Russia’s “special military operation” in Ukraine.
Peskov said air defences would be tightened, and this was happening anyway for the military parade on Red Square, the centrepiece of the holiday, just over the Kremlin wall from the site of the alleged attack.
He said the parade would go ahead as normal, and include a speech from Putin.
Chief writer on Russia and CIS. Worked as a journalist on 7 continents and reported from 40+ countries, with postings in London, Wellington, Brussels, Warsaw, Moscow and Berlin. Covered the break-up of the Soviet Union in the 1990s. Security correspondent from 2003 to 2008. Speaks French, Russian and (rusty) German and Polish.
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