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  • Taiwan or China? Paraguay’s dilemma puts election race in the spotlight

    Taiwan or China? Paraguay’s dilemma puts election race in the spotlight

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    ASUNCION, April 24 (Reuters) – From Paraguayan capital Asuncion to Taipei and Washington, diplomats, officials – and farmers – are closely watching a tight election race that could determine Paraguay’s future ties with Taiwan.

    Paraguay will vote for its next president on April 30, choosing between a ruling party candidate pledging to extend decades-long diplomatic relations with Taiwan and an opposition rival who favors switching ties to China to boost the landlocked country’s farm-driven economy.

    Pressure inside the South American nation has been rising, especially from its powerful agricultural lobby, to flip ties to China and open up the Asian country’s lucrative markets to Paraguay’s soybeans and beef, its main exports.

    “We’re a food-producing nation that is not selling to the world’s biggest buyer of food,” Pedro Galli, the head of the Paraguayan Rural Association (ARP), told Reuters. His organization represents some 3,000 local farmers.

    Were Paraguay to recognize China it would be a blow to Taiwan, which is facing an uphill battle against Beijing’s economic muscle to keep its remaining 13 allies worldwide, and a fresh sign of China’s growing clout in an area Washington has long regarded as its backyard.

    Galli cited the recognition of China by other countries in the region, which in recent years have included Panama, the Dominican Republic, El Salvador and Nicaragua. Honduras was the latest to switch sides in March.

    “We’re watching the party from the balcony,” Galli said, referring to the loss the farming sector felt in terms of exports. “It’s just us and the Guatemalans left.” 

    Opposition candidate Efrain Alegre, who represents a center-left coalition, told Reuters in January and again in April that he would favor relations with China, the world’s largest beef and soybean importer, if elected president.

    “We are going to be where it is convenient, otherwise it would be a betrayal of the country,” Alegre told Reuters in the April 17 interview. “How can I deny a relationship that is beneficial for all Paraguayans, a people that need development, need investment, need industry?”

    The ruling conservative Colorado Party candidate, Santiago Peña, has vowed to stick with Taiwan. A cross-party delegation visited the island in February, seeking to calm Taiwanese jitters.

    Taipei, which argues that it provides economic support to its allies, said last week it was “perplexed” by the position taken by Paraguay’s opposition and it would do its utmost to maintain its diplomatic ties with the country.

    China has long argued that democratically-ruled Taiwan is part of its own territory with no right to state-to-state ties, a position Taipei strongly rejects. China demands that countries with which it has ties recognize its position.

    ‘WHEN, NOT IF’

    Among diplomatic circles in Asuncion there is a sense a switch is inevitable – regardless of the election outcome.

    “With Paraguay it is a matter of when, not if,” a senior European diplomat told Reuters, adding that given the pressures from the local business community and the fragile global economy, Paraguay could switch “within the next two years.”

    Even if the ruling Colorado party were to win the election, its leaders may not have the same staunch support for Taiwan as incumbent President Mario Abdo, whose father helped forge relations with Taiwan as a political aide over six decades ago.

    “We are brotherly peoples, and we have a destiny together,” Abdo said during February’s visit.

    “Current president Abdo had a strong personal commitment to Taiwan that goes back to his father,” said Evan Ellis, who specializes in China-Latin America relations at the U.S. Army War College Institute.

    “It is not clear that the same personal depth of ties is there with whoever takes over.”

    Opinion polls in April differed widely, with Atlas ranking pro-China Alegre narrowly ahead of Peña and Grau & Associated predicting a 16-point lead for Peña.

    Paraguayan rancher Fernando Serrati, who farms corn, soybeans and cattle, said the country was “trapped” in a diplomatic conflict hurting producers and exports, while the closed door to China meant it often lost a price premium.

    A severe drought that has hit regional farm production, poorer economic prospects globally, and war in Ukraine that has affected shipments of beef to sanctioned Russia have all further dented local sentiment, spurring more Paraguayans to favor new ties with China.

    “We need to consider the real interests of our country and open up to the world,” Serrati said.

    Reporting by Lucinda Elliott and Daniela Desantis; Editing by Adam Jourdan and Rosalba O’Brien

    Our Standards: The Thomson Reuters Trust Principles.

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  • Death toll in Kenyan starvation cult rises to 73 – police

    Death toll in Kenyan starvation cult rises to 73 – police

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    • Exhumations to resume on Tuesday
    • President Ruto calls cult leader “terrible criminal”

    NAIROBI, April 24 (Reuters) – Kenyan police have recovered 73 bodies, mostly from mass graves in a forest in eastern Kenya, thought to be followers of a Christian cult who believed they would go to heaven if they starved themselves, a police officer said on Monday.

    The death toll, which has repeatedly risen as exhumations have been carried out, could rise further. The Kenyan Red Cross said 112 people have been reported missing to a tracing and counselling desk it has set up at a local hospital.

    The cult’s leader, Paul Mackenzie, was arrested on April 14 following a tip-off that suggested the existence of shallow graves containing the bodies of at least 31 of his followers.

    “The death toll now stands 73 people,” Charles Kamau, head detective in Malindi, Kilifi County, told Reuters via telephone.

    He said three more people had been arrested, without giving details. Privately-owned NTV channel reported that one of those arrested was being held on suspicion of being a close associate of the leader of the cult.

    Followers of the self-proclaimed Good News International Church had been living in several secluded settlements in an 800-acre area within the Shakahola forest.

    The Directorate of Criminal Investigations said on Twitter that 33 people had so far been rescued.

    [1/4] Body bags are seen arranged as forensic experts and homicide detectives exhume bodies of suspected members of a Christian cult named as Good News International Church, who believed they would go to heaven if they starved themselves to death, in Shakahola forest of Kilifi county, Kenya, April 22, 2023. REUTERS/Stringer

    Earlier on Monday, the country’s police chief Japhet Koome, visiting the scene, said most of the people were found in mass graves as well as eight who were found alive and emaciated, but later died.

    Koome said 14 other cult members were in police custody.

    Mackenzie was arraigned on April 15 at Malindi Law Courts, where the judge gave police 14 days to conduct investigations while he was kept in detention. Kenyan media have reported that he is refusing food and water.

    Reuters was not able to reach any lawyer or representative for Mackenzie.

    President William Ruto said Mackenzie’s teachings were contrary to any authentic religion.

    “Mr Mackenzie … pretends and postures as a pastor when in fact he is a terrible criminal,” said Ruto, who was delivering a speech at an unrelated public event just outside Nairobi.

    He said he had instructed relevant agencies to get to the root cause of what had happened and to tackle “people who want to use religion to advance weird, unacceptable ideology in the Republic of Kenya that is causing unnecessary loss of life”.

    Reporting by Hereward Holland; Writing by Estelle Shirbon; Editing by Alexander Winning

    Our Standards: The Thomson Reuters Trust Principles.

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  • Sudan factions agree to 72-hour ceasefire as foreigners are evacuated

    Sudan factions agree to 72-hour ceasefire as foreigners are evacuated

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    • At least 427 people killed since fighting began on April 15
    • Foreign nations fly military planes to extract citizens
    • U.N.’s Guterres urges Security Council to intervene

    KHARTOUM, April 24 (Reuters) – Sudan’s warring factions agreed to a 72-hour ceasefire starting on Tuesday, while Western, Arab and Asian nations raced to extract their citizens from the country.

    The Sudan Armed Forces (SAF) said the U.S. and Saudi Arabia mediated the truce. U.S. Secretary of State Anthony Blinken announced the agreement first and said it followed two days of intense negotiations. The two sides have not abided by several previous temporary truce deals.

    Fighting erupted between the SAF and Rapid Support Forces (RSF) paramilitary group on April 15 and has killed at least 427 people, knocked out hospitals and other services, and turned residential areas into war zones.

    “During this period, the United States urges the SAF and RSF to immediately and fully uphold the ceasefire,” Blinken said in a statement.

    He said the U.S. would coordinate with regional, international and Sudanese civilian interests to create a committee that would oversee work on a permanent ceasefire and humanitarian arrangements.

    The RSF confirmed in Khartoum that it had agreed to the ceasefire, starting at midnight, to facilitate humanitarian efforts. “We affirm our commitment to a complete ceasefire during the truce period”, the RSF said.

    The SAF said on its Facebook page that it also agreed to the truce deal. A coalition of Sudanese civil society groups that had been part of negotiations on a transition to democracy welcomed the news.

    Ahead of the evening truce announcement, air strikes and ground fighting shook Omdurman, one of three adjacent cities in the capital region, and there were also clashes in capital Khartoum, a Reuters reporter said.

    Dark smoke enveloped the sky near the international airport in central Khartoum, adjacent to army headquarters, and booms of artillery fire rattled the surroundings.

    U.N. Secretary-General Antonio Guterres said that the violence in a country that flanks the Red Sea, Horn of Africa and Sahel regions “risks a catastrophic conflagration … that could engulf the whole region and beyond”.

    The Security Council planned a meeting on Sudan on Tuesday.

    THOUSANDS FLEE

    Tens of thousands of people including Sudanese and citizens from neighbouring countries have fled in the past few days, to Egypt, Chad and South Sudan, despite instability and difficult living conditions there.

    [1/3] Spanish military plane and military vehicles are seen departing on tarmac as Spanish diplomatic personnel and citizens are evacuated, in Khartoum, Sudan, April 23. Spanish Defence Ministry via REUTERS

    Foreign governments have been working to bring their nationals to safety. One 65-vehicle convoy took dozens of children, along with hundreds of diplomats and aid workers, on an 800-km (500-mile), 35-hour journey in searing heat from Khartoum to Port Sudan on the Red Sea.

    For those remaining in Africa’s third-largest country, where a third of its 46 million people needed aid even before the violence, the situation was increasingly bleak.

    There were acute shortages of food, clean water, medicines and fuel and limited communications and electricity, with prices skyrocketing, said deputy U.N. spokesperson Farhan Haq.

    He cited reports of looting of humanitarian supplies and said “intense fighting” in Khartoum as well as in Northern, Blue Nile, North Kordofan and Darfur states was hindering relief operations.

    Facing attacks, aid organisations were among those withdrawing staff, and the World Food Programme suspended its food distribution mission, one of the largest in the world.

    “The quick evacuation of Westerners means that the country is on the brink of collapse. But we expect a greater role from them in supporting stability by pressuring the two sides to stop the war,” said Suleiman Awad, a 43-year-old academic in Omdurman.

    Several nations, including Canada, France, Poland, Switzerland and the United States, have halted embassy operations until further notice.

    Fighting calmed enough over the weekend for the United States and Britain to get embassy staff out, triggering a rush of evacuations of hundreds of foreign nationals by countries ranging from Gulf Arab states to Russia, Japan and South Korea.

    Japan said all its citizens who wished to leave Sudan had been evacuated. Paris said it had arranged evacuations of 491 people, including 196 French citizens and others from 36 other nationalities. A French warship was heading for Port Sudan to pick up more evacuees.

    Four German air force planes evacuated more than 400 people of various nationalities from Sudan as of Monday, while the Saudi foreign ministry said on Monday it evacuated 356 people, including 101 Saudis and people of 26 other nationalities.

    Several countries sent military planes from Djibouti. Families with children crowded into Spanish and French military transport aircraft, while a group of nuns were among the evacuees on an Italian plane, photographs showed.

    The U.N. secretary general urged the 15 members of the Security Council to use their clout to return Sudan to the path of democratic transition.

    Islamist autocrat Omar al-Bashir was overthrown in a popular uprising in 2019, and the army and RSF jointly mounted a 2021 military coup. But two years later, they fell out during negotiations to integrate and form a civilian government.

    Reporting by Sabine Siebold and Martin Schlicht in Berlin and Simon Johnson in Stockholm; Writing by Michael Georgy and Toby Chopra

    Our Standards: The Thomson Reuters Trust Principles.

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  • China says it respects sovereignty of ex-Soviet states after EU uproar

    China says it respects sovereignty of ex-Soviet states after EU uproar

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    • Chinese ambassador to Paris caused uproar in EU
    • Comments focused on Ukraine, ex-Soviet states
    • Beijing says he was expressing personal views
    • EU welcomes ‘clarification’

    LUXEMBOURG, April 24 (Reuters) – China respects the status of former Soviet member states as sovereign nations, its foreign ministry said on Monday, distancing itself from comments by its envoy to Paris that triggered an uproar among European capitals.

    Several European Union foreign ministers had said comments by ambassador Lu Shaye – in which he questioned the sovereignty of Ukraine and other former Soviet states – were unacceptable and had asked Beijing to clarify its stance.

    Asked if Lu’s comments represented China’s official position, foreign ministry spokesperson Mao Ning said that Beijing respected the status of the former Soviet member states as sovereign nations following the collapse of the Soviet Union.

    Mao told a regular news briefing that it was her remarks on sovereignty that represented China’s official government stance.

    The Chinese embassy in Paris issued a statement later on Monday to say that Lu’s comments on Ukraine “were not a political declaration but an expression of his personal views”.

    Both statements, following the backlash, appeared to be an effort to ease the tension with the EU while Washington also cited growing closeness between Beijing and Moscow.

    “Beijing has distanced itself from the unacceptable remarks by its ambassador,” Josep Borrell told a news conference, saying it was “good news”.

    The French foreign ministry said it was “taking note” of Beijing’s “clarifications” and that the minister’s chief of staff had met with Lu on Monday, told him his comments were unacceptable and urged him to speak in a way “that is in line with his country’s official stance.”

    Lu has earned himself a reputation as one of China’s “wolf warrior” diplomats, so-called for their hawkish and abrasive style.

    Asked about his position on whether Crimea was part of Ukraine or not, Lu had said in an interview aired on French TV on Friday that historically it was part of Russia and had been offered to Ukraine by former Soviet leader Nikita Khrushchev.

    “These ex-USSR countries don’t have actual status in international law because there is no international agreement to materialize their sovereign status,” Lu added.

    Czech Foreign Minister Jan Lipavsky speaks during a news conference, in Riga, Latvia April 21, 2023. REUTERS/Ints Kalnins

    ‘TOTALLY UNACCEPTABLE’

    Monday’s statements from the Chinese foreign ministry and embassy in Paris came after criticism from across the EU.

    Speaking ahead of a Luxembourg meeting of EU foreign ministers earlier in the day, Czech Foreign Minister Jan Lipavsky said Lu’s comments were “totally unacceptable”.

    “I hope the bosses of this ambassador will make these things straight,” he told reporters.

    A spokesperson for Germany’s foreign ministry said it had taken note of Lu’s comments “with great astonishment, especially as the statements are not in line with the Chinese position we have known so far.”

    Lithuanian Foreign Minister Gabrielius Landsbergis said the three Baltic countries would summon Chinese representatives to officially ask for clarification.

    He said Beijing was “sending the same message” as Moscow on questioning the sovereignty of former Soviet countries, which he described as “dangerous”.

    Lithuania and its Baltic neighbours Latvia and Estonia were incorporated into the Soviet Union in 1940, but regained independence after its break-up in 1991.

    EU leaders would discuss the bloc’s stance towards China and its future relations with Beijing during their next summit in June, EU Council President Charles Michel said.

    Lu has been summoned to France’s foreign ministry several times in the past, including for suggesting France was abandoning old people in nursing homes during the COVID-19 pandemic and for calling a respected China scholar at a French think-tank a “mad hyena”.

    Asked about Chinese officials’ comments, White House spokesperson John Kirby told MSNBC broadcaster that China and Russia are clearly aligning, adding: “These are two countries that want to challenge outright the international rules-based order … that respects sovereignty around the world.”

    “They want to undermine it. They want to reduce and diminish not only the United States and our influence around the world but also our allies and partners.”

    Reporting by Bart Meijer

    Our Standards: The Thomson Reuters Trust Principles.

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  • China respects ex-Soviet states as sovereign nations – foreign ministry

    China respects ex-Soviet states as sovereign nations – foreign ministry

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    BEIJING, April 24 (Reuters) – China respects the status of the independent sovereign nations that emerged from the collapse of the Soviet Union, the Chinese foreign ministry said on Monday, after Beijing’s envoy to Paris sparked a diplomatic storm by questioning their sovereignty.

    Ambassador Lu Shaye said in an interview aired on French television on Friday that former Soviet countries like Ukraine lacked “actual status in international law”, prompting foreign ministers from several EU member states to label his comments as totally unacceptable.

    China’s foreign ministry spokesperson Mao Ning set out the official stance of the government during a regular news conference in Beijing, when asked if China stood behind the envoy’s remarks.

    “The Chinese side respects the status of the member states as sovereign states after the collapse of the Soviet Union,” Mao said, adding that China was one of the first countries to establish diplomatic relations with those countries.

    On the issue of territorial sovereignty, China’s position is consistent and clear, she said.

    China respects the sovereignty, independence and territorial integrity of all countries and upholds the purposes and principles of the United Nations Charter, Mao said.

    Asked if China recognises Ukraine as a sovereign state, Mao said China’s position on this issue is objective and fair.

    “The Soviet Union was a federal state, and externally as a whole, it had the status of being a subject of international law, so conversely, after the dissolution of the Soviet Union, the various republics have the status of sovereign states,” she said.

    And only sovereign states can become official members of the United Nations, she said.

    “The country you mentioned is a full member of the United Nations.”

    Reporting by Beijing newsroom; Editing by Toby Chopra

    Our Standards: The Thomson Reuters Trust Principles.

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  • Airman suspected of leaking secret US documents hit with federal charges

    Airman suspected of leaking secret US documents hit with federal charges

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    BOSTON, April 14 (Reuters) – A 21-year-old member of the U.S. Air National Guard accused of leaking top secret military intelligence records online was charged on Friday with unlawfully copying and transmitting classified material.

    Jack Douglas Teixeira of North Dighton, Massachusetts, who was arrested by heavily armed FBI agents at his home on Thursday, made his initial appearance in a crowded federal court wearing a brown khaki jumpsuit.

    At the hearing, Boston’s top federal national security prosecutor, Nadine Pellegrini, requested that Teixeira be detained pending trial, and a detention hearing was set for Wednesday.

    During the brief proceeding, Teixeira said little, answering “yes” when asked whether he understood his right to remain silent.

    The judge said Teixeira’s financial affidavit showed he qualified to be represented by a federal public defender, and he appointed one.

    After the hearing, three of Teixeira’s family members left the courthouse, with a group of reporters trailing them for several blocks. They entered a car without making any comments.

    The leaked documents were believed to be the most serious U.S. security breach since more than 700,000 documents, videos and diplomatic cables appeared on the WikiLeaks website in 2010. The Pentagon has called the leak a “deliberate, criminal act.”

    This leak did not come to light until it was reported by the New York Times last week even though the documents were posted on a social media website weeks earlier.

    U.S. President Joe Biden said on Friday he ordered investigators to determine why the alleged leaker had access to the sensitive information, which included records showing purported details of Ukrainian military vulnerabilities and embarrassed Washington by revealing its spying on allies.

    Fallout from the case has roiled Washington. Senate Democratic leader Chuck Schumer has requested a briefing for all 100 senators next week while Republican House of Representatives Speaker Kevin McCarthy vowed to investigate.

    “The Biden administration has failed to secure classified information,” McCarthy said on Twitter. “Through our committees, Congress will get answers as to why they were asleep at the switch.”

    FBI agents arrest Jack Teixeira, an employee of the U.S. Air Force National Guard, in connection with an investigation into the leaks online of classified U.S. documents, outside a residence in this still image taken from video in North Dighton, Massachusetts, U.S., April 13, 2023. WCVB-TV via ABC via REUTERS

    Biden said he was taking steps to tighten security. “While we are still determining the validity of those documents, I have directed our military and intelligence community to take steps to further secure and limit distribution of sensitive information,” he said in a statement.

    MORE CHARGES EXPECTED

    A criminal complaint made public on Friday charges Teixeira with one count of violating the Espionage Act related to the unlawful copying and transmitting of sensitive defense material, and a second charge related to the unlawful removal of defense material to an unauthorized location.

    A conviction on the Espionage Act charge carries up to 10 years in prison.

    The charges are connected to just one leaked document so far, a classified record that described the status of the Russia-Ukraine conflict and included details about troop movements on a particular date.

    Experts expect more charges as investigators examine each leaked document. Teixeira could also face more counts depending on the number of times he separately uploaded and transmitted each document.

    “They are going to pick the ones (documents), I would imagine, that foreign governments have already seen,” said Stephanie Siegmann, the former national security chief for the U.S. Attorney’s office in Boston and now a partner with the Hinckley Allen law firm.

    In a sworn statement, an FBI agent said Teixeira had held a top secret security clearance since 2021 and also had sensitive compartmented access to other highly classified programs.

    Since May 2022, the FBI said, Teixeira has been serving as an E-3/airman first class in the Air National Guard and has been stationed at Otis Air National Guard Base in Massachusetts.

    Siegmann said one lingering question is why a 21-year-old National Guardsman held such a top-level security clearance.

    “That’s an issue that Department of Defense needs to now deal with,” she said. “Why would he be entitled to these documents about the Russia-Ukrainian conflict?”

    Reuters has reviewed more than 50 of the documents, labeled “Secret” and “Top Secret,” but has not independently verified their authenticity. The number of documents leaked is likely to be over 100.

    Reporting by Sarah N. Lynch in Washington and Tim McLaughlin in Boston
    Editing by Don Durfee and Alistair Bell

    Our Standards: The Thomson Reuters Trust Principles.

    Sarah N. Lynch

    Thomson Reuters

    Sarah N. Lynch is the lead reporter for Reuters covering the U.S. Justice Department out of Washington, D.C. During her time on the beat, she has covered everything from the Mueller report and the use of federal agents to quell protesters in the wake of George Floyd’s murder, to the rampant spread of COVID-19 in prisons and the department’s prosecutions following the Jan. 6 attack on the U.S. Capitol.

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  • No China, no deal: Bid to break sovereign debt logjams gets weary thumbs up

    No China, no deal: Bid to break sovereign debt logjams gets weary thumbs up

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    LONDON, April 13 (Reuters) – The latest bid by the world’s leading institutions and creditors to speed up debt restructurings and get bankrupt countries back on their feet has been greeted by a mix of cautious optimism and weary scepticism by veteran crisis watchers.

    Standoffs between major Western-backed lenders like the International Monetary Fund (IMF) and the world’s top bilateral creditor, China, have been blamed for keeping countries such as Zambia mired in default for nearly three years.

    The somewhat loose framework around sovereign restructurings has seen Beijing seek to influence the traditional rules of engagement in these processes.

    The renewed push to overcome the logjams came after a “roundtable” at the IMF Spring Meetings and included pledges from the Fund and World Bank to share assessments of countries’ troubles more quickly, provide more low-interest and grant funding and stricter timeframes on restructurings overall.

    The idea is that Beijing would then drop its insistence that the multilateral lenders take losses, or “haircuts”, on the loans they have provided or underwritten in crisis-hit countries.

    Beijing has not commented directly on the demand for multilateral lender haircuts, but in remarks published on Friday People’s Bank of China Governor Yi Gang reiterated China’s willingness to implement debt talks under the Common Framework, the platform introduced by leading G20 nations in 2020 to streamline talks with all creditors.

    “If the multilateral development banks are now making real commitments to provide fresh grants to distressed countries this is a breakthrough,” said Kevin Gallagher, director of the Boston University Global Development Policy Center.

    But he added that as the new plans lacked specific mention of China’s intentions it suggested the “lack of a strong and clear consensus” in Washington.

    The IMF’s managing director Kristalina Georgieva has stressed that with around 15% of low income countries already in debt distress and dozens more in danger of falling into it, far more urgency is needed.

    Besides members of the Paris Club of creditor nations such as the United States, France and Japan, cash-strapped nations now have to rework loans with lenders such as India, Saudi Arabia, South Africa and Kuwait – but first and foremost China.

    Beijing is now the largest bilateral creditor to developing nations, extending $138 billion in new loans between 2010 and 2021, according to World Bank data, and some estimates put total lending at almost $850 billion.

    Reuters Graphics

    HEADWINDS

    Global headwinds are about to get stronger too.

    Financially weaker countries with “junk”-grade sovereign credit ratings need to repay or refinance $30 billion worth of government bonds next year between them, compared to just $8.4 billion for the remainder of this one.

    The rise in global borrowing costs, though, means that many countries under the greatest stress are now unable to borrow in the international capital markets or, if they can, only at unsustainably high interest rates.

    The Chinese debt, meanwhile, is often opaque and muddied by arguments about whether the loans have been given by “official” entities – i.e by the government – or by “private” entities.

    Authorities in Beijing also prefer to roll over debt payments rather than write them off, and given it is an increasingly dominant creditor, it has little incentive to follow co-operative Paris Club-like principles.

    “It would be great to have China on board (with the push to speed up restructurings) but I don’t really have high hopes because there is a lot of geopolitics involved,” said Viktor Szabo, an emerging market debt manager at Abrdn in London.

    Select IMF loans to low and middle income countries by date of Board approval

    COMMON PROBLEMS

    Recent research by Boston University estimated that up to $520 billion in debt needs to be written off to help developing nations at greatest risk of default return to a sounder fiscal footing.

    But lengthy delays in Zambia, and more recently in Sri Lanka, have elicited widespread criticism of the Common Framework.

    Wednesday’s promises by the IMF to provide its assessments more quickly was an admission that the Common Framework was currently failing, Szabo added.

    “You have to make it functional. The fact that it’s been in place for three years and there is nothing to really show for it, that is really appalling.”

    Anna Ashton, director of China research at Eurasia Group, said this week’s developments underscored the benefits for China to give some ground on some of its concerns.

    “Being willing to compromise and facilitate debt restructuring right now is likely crucial to China’s continued credibility with the developing world writ large,” Ashton said.

    Patrick Curran, senior economist with Tellimer, added that China dropping demands for the big multilateral development banks (MDBs) to swallow losses on their loans could also be “a major breakthrough”.

    “There is likely to be broad support for the alternative proposal that MDBs mobilize their resources more aggressively, especially at a time when most low-income countries are locked out of the market,” Curran said.

    Germany’s finance minister Christian Lindner on Thursday too said all the talk now needed to be converted into action.

    The group that took part in Wednesday’s roundtable plans to meet again in coming weeks to address remaining issues, including how various creditors are treated, principles for cut-off dates and suspending debt payments.

    Ultimately, whether the new terms help Zambia, and countries like Sri Lanka, Ghana and Ethiopia that are also in the midst of bailout talks, finalise deals will be the only proof of whether the new terms work.

    “China is a difficult partner to talk to but we need China at the table for the solution of debt problems, because otherwise we won’t see any progress,” Lindner said.

    Reuters Graphics

    Additional reporting by Rodrigo Campos in New York and Joe Cash in Beijing
    Editing by Mark Potter

    Our Standards: The Thomson Reuters Trust Principles.

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  • North Korea says it tested new solid-fuel ICBM, warns of ‘extreme’ horror

    North Korea says it tested new solid-fuel ICBM, warns of ‘extreme’ horror

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    • Leader Kim Jong Un and family watch missile test
    • Test key to deploying missiles faster in war
    • South Korea, U.S. and Japan stage military drills

    SEOUL, April 14 (Reuters) – North Korea announced on Friday it had tested a new solid-fuel intercontinental ballistic missile (ICBM), a development set to “radically promote” its forces, which experts said would facilitate missile launches with little warning.

    Leader Kim Jong Un guided Thursday’s test, and warned it would make enemies “experience a clearer security crisis, and constantly strike extreme uneasiness and horror into them by taking fatal and offensive counter-actions until they abandon their senseless thinking and reckless acts”, North Korean state media said.

    Analysts said it was the North’s first use of solid propellants in an intermediate-range or intercontinental ballistic missile, a key task to deploying missiles faster during a war.

    South Korea’s defence ministry said North Korea was still developing the weapon, and that it needed more time and effort to master the technology, indicating that Pyongyang might carry out more tests.

    North Korean state media outlet KCNA released photos of Kim watching the launch, accompanied by his wife, sister and daughter, and the missile covered in camouflage nets on a mobile launcher. A state media video showed the Hwasong-18 missile blasting off from a launch tube, creating a cloud of smoke.

    The development of the Hwasong-18 will “extensively reform the strategic deterrence components of the DPRK, radically promote the effectiveness of its nuclear counterattack posture and bring about a change in the practicality of its offensive military strategy,” KCNA said, using the initials of the country’s official name.

    South Korea and the U.S. air forces staged drills hours after the report, involving American B-52H bombers that joined F-35A, F-15 and F-16 fighter jets, Seoul’s defence ministry said.

    “By deploying U.S. strategic assets with increased frequency and intensity, the two countries will continue demonstrating our strong alliance’s will that we will never tolerate any nuclear attack from North Korea,” the ministry said in a statement.

    North Korea has criticised recent U.S.-South Korean joint military exercises as escalating tensions, and has stepped up weapons tests in the past months.

    Japan also conducted separate air drills with two U.S. B-52 bomber jets on Friday, accompanied by four U.S. F-35 fighters and four Japanese F-15 fighters, Tokyo’s defence ministry said. It marked a second consecutive day of a Japan-U.S. joint air mission over the Sea of Japan.

    Japan asked the United Nations Security Council to convene an emergency meeting on North Korea’s ballistic missile launches, top government spokesperson Hirokazu Matsuno told a Friday press conference.

    [1/6] A view of a test launch of a new solid-fuel intercontinental ballistic missile (ICBM) Hwasong-18 at an undisclosed location in this still image of a photo used in a video released by North Korea’s Korean Central News Agency (KCNA) April 14, 2023. KCNA via REUTERS TV/via REUTERS

    Reuters Graphics Reuters Graphics

    MORE TESTS?

    Most of North Korea’s largest ballistic missiles use liquid fuel, which requires them to be loaded with propellant at their launch site – a time-consuming and dangerous process.

    “For any country that operates large-scale, missile based nuclear forces, solid-propellant missiles are an incredibly desirable capability because they don’t need to be fuelled immediately prior to use,” said Ankit Panda, a senior fellow at the U.S.-based Carnegie Endowment for International Peace. “These capabilities are much more responsive in a time of crisis.”

    North Korea will most likely keep some liquid-fuel systems, complicating the calculations of the U.S. and its allies during a conflict, Panda said.

    Vann Van Diepen, a former U.S. government weapons expert who now works with the 38 North project, said solid-fuel missiles are easier and safer to operate, and require less logistical support – making them harder to detect and more survivable than liquids.

    North Korea first displayed what could be a new solid-fuel ICBM during a military parade in February after testing a high-thrust solid-fuel engine in December.

    Analysts said the U.S. could determine between a solid- or liquid-fuelled launch with early warning satellites that can detect differences in the infrared data produced by various missile types.

    The latest launch came days after Kim called for strengthening war deterrence in a “more practical and offensive” manner to counter what North Korea called moves of aggression by the United States.

    The missile, fired from near Pyongyang, flew about 1,000 km (620 miles) before landing in waters east of North Korea, officials said. North Korea said the test posed no threats to its neighbouring countries.

    A South Korean military official said the missile’s maximum altitude was lower than 6,000 km, the apogee of some of last year’s record-breaking tests.

    “North Korea could have opted to focus on collecting data necessary to check its features at different stages than going full speed at the first launch,” said Kim Dong-yup, a professor at the University of North Korean Studies. “As it was a test that did not demonstrate its normal flight pattern, North Korea will likely conduct some more tests.”

    Reporting by Soo-hyang Choi; Editing by Leslie Adler

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  • Europe presses tough Taiwan stance after backlash against Macron comments

    Europe presses tough Taiwan stance after backlash against Macron comments

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    April 14 (Reuters) – European foreign policy officials on Friday urged China not to use force over Taiwan, taking a tough stance against Beijing’s threats over the democratically governed island, after comments by French President Emmanuel Macron were perceived as weak.

    China in recent days has held intense military drills around Taiwan, which it claims as its own, and has never renounced the use of force to bring the island under its control.

    German Foreign Minister Annalena Baerbock, addressing the issue at a press conference in Beijing alongside her Chinese counterpart Qin Gang, said any attempt by China to control Taiwan would be unacceptable and would have serious repercussions for Europe.

    EU foreign policy chief Joseph Borrell echoed her remarks in a statement prepared for a speech due to be delivered in Beijing at the Center for China and Globalization think tank on Friday that had to be cancelled after he caught COVID-19.

    “A military escalation in the Taiwan Strait, through which … 50% of world trade goes every day, would be a horror scenario for the entire world,” said Baerbock, adding it would have “inevitable repercussions” for European interests.

    In interviews published after his trip to China last week, which was meant to showcase European unity on China policy, Macron cautioned against being drawn into a crisis over Taiwan driven by an “American rhythm and a Chinese overreaction”.

    While many of the remarks were not new, the timing of their publication, and their bluntness, annoyed many Western officials.

    “The European Union’s position (on Taiwan) is consistent and clear,” Borrell said in his remarks. “Any attempt to change the status quo by force would be unacceptable.”

    UKRAINE ISSUE

    Borrell also said Europe’s future relationship with China depended on it trying to use its influence to find a political solution to the Ukraine crisis.

    “It will be extremely difficult, if not impossible, for the European Union to maintain a relationship of trust with China, which I would like to see, if China does not contribute to the search for a political solution based on Russia’s withdrawal from the Ukrainian territory,” Borrell said.

    “Neutrality in the face of the violation of international law is not credible,” Borrell said, adding an appeal for Chinese President Xi Jinping to speak to Ukrainian President Volodymyr Zelenskiy and for China to provide more humanitarian aid to Ukraine.

    Xi has met Russian President Vladimir Putin twice but not spoken with Zelenskiy since Russia invaded Ukraine in what Moscow calls a “special military operation” in February 2022.

    China stated its opposition to attacks on civilians and on nuclear facilities in a position paper on Ukraine published in February, but it has refrained from openly criticising Russia.

    “President Xi’s visit to Moscow has demonstrated that no other country has a bigger influence on Russia than China,” said Baerbock.

    “It is good that China has signalled to get engaged in finding a solution. But I have to say clearly that I wonder why China so far has not asked the aggressor Russia to stop the war. We all know President Putin has the opportunity to do so any time he wants to.”

    Poland’s prime minister warned earlier this week that Ukraine’s defeat may embolden China to invade Taiwan.

    Baerbock and Borrell also spoke about the risks of being too dependent economically on China, in line with comments made by European Commission President Ursula von der Leyen in a speech last month on the eve of her China visit.

    “We just paid a high price for our energy dependency on Russia, and it is well-known that one should not make the same mistake twice,” said Baerbock, adding that economic security is core to Germany’s strategy for China.

    Borrell said that the EU needs to diversify its value chains to reduce its dependency on China for raw materials.

    He also said that the increasing trade imbalances between the EU and China are “unsustainable” and called on China to remove market access barriers.

    Reporting by Yew Lun Tian in Beijing; Editing by Clarence Fernandez

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  • Exclusive: Chinese firm imported copper from Russian-controlled part of Ukraine

    Exclusive: Chinese firm imported copper from Russian-controlled part of Ukraine

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    • Data shows Quzhou Nova bought $7.4 mln of ingots
    • Copper plant is in Russian-annexed part of Ukraine
    • Area is subject to U.S. sanctions against Moscow
    • Russian ally China does not abide by U.S. measures

    April 14 (Reuters) – A Chinese company bought at least $7.4 million worth of copper alloy ingots from a plant in a Russian-annexed region of Ukraine that is subject to Western sanctions, according to Russian customs data reviewed by Reuters.

    China has not imposed any restrictions on trade with Russia, but the United States has threatened to blacklist companies round the world for violating its sanctions and warned Beijing against supplying Moscow with goods banned by U.S. export rules.

    The customs information, drawn from one commercial trade data provider and cross-checked with two others, show some of the first evidence of Chinese trades with Russian-annexed regions of Ukraine since the war began on Feb. 24, 2022.

    The Chinese firm, Quzhou Nova, bought at least 3,220 tons of copper alloy in ingots worth a total of $7.4 million from the Debaltsevsky Plant of Metallurgical Engineering between Oct. 8, 2022 and March 24, 2023, according to the data.

    The plant is located in the Donetsk region of eastern Ukraine, close to the border with Luhansk. Both Donetsk and Luhansk were among four Ukrainian regions that President Vladimir Putin claimed last September as part of Russia.

    Quzhou Nova, a trading and manufacturing company based in the city of Quzhou in the eastern province of Zhejiang, told Reuters it does not have any import and export business related to the trade of copper alloy in ingots.

    When Reuters showed details of the exports in the customs data to Quzhou Nova, the company said on March 23 that it “finds hard to understand the document, because this document is not stamped and signed”, and suggested contacting customs about the issue.

    The database, which collects information on all shipments worldwide, does not display stamps or signatures on its information.

    The Chinese customs service did not provide detailed information on imports. It said that “company trade data are not disclosed in our public information”.

    China imported copper and copper alloys worth $852 million from Russia between October and February, according to public customs statistics.

    A source at the Debaltsevsky plant, who spoke on condition of anonymity, said there was a non-ferrous metallurgy workshop on the territory of the factory. The source declined to comment on the issue of copper alloy shipments to China, saying the information was a “trade secret”.

    Contacted for comment, the Russian Federal customs service told Reuters that information on companies is confidential and is not disclosed by the service.

    When asked about the matter on Friday, the Kremlin said it did not know whether the Reuters news story about the transaction was true or what proof was available. The Kremlin said it had no information about the subject itself.

    The Debaltsevsky Plant did not respond to Reuters requests for comments by phone and in writing.

    Ukraine, its Western allies and an overwhelming majority of countries at the U.N. General Assembly have condemned Russia’s declared annexation of the four regions as illegal.

    SANCTIONS

    U.S. sanctions imposed on Feb. 21, 2022, three days before Russia invaded Ukraine, prohibit U.S imports from or exports to the so-called Donetsk and Luhansk People’s Republics.

    Two days later, the European Union announced measures including an import ban on goods from the two regions.

    While Chinese companies are free as far as their authorities are concerned to trade with firms in Russian-controlled regions of Ukraine, they do risk being added to Western blacklists.

    Asked about the copper shipments data, the U.S. State Department said it was concerned about China’s alignment with the Kremlin.

    “We have warned the PRC (People’s Republic of China) that assistance to Russia’s war effort would have serious consequences. We will not hesitate to move against entities, including PRC firms, that help Russia wage war against Ukraine or help Russia circumvent sanctions,” it added in a statement to Reuters, listing some Chinese companies already sanctioned.

    The European Commision did not respond to Reuters’ questions as to whether Chinese companies cooperated with the Russian-annexed Ukrainian territories and what risks such activity posed.

    China’s Ministry of Commerce did not respond to Reuters’ requests for comment about the shipments of copper alloys from the Debaltsevsky Plant or cooperation with businesses in the Donetsk region.

    The data seen by Reuters is based on shipping and customs documents like bill of lading and shipping bills and collected from several customs departments, government bodies and other partners.

    Quzhou Nova says it specialises in the export of wrapping paper. According to its website, it manufactures and trades goods for the tobacco industry, including paper, aluminium foil and polypropylene film.

    Reuters could not establish what use the copper alloy was intended for.

    The Ukrainian plant, located in the city of Debaltseve 70 km (45 miles) from the Russian-controlled Ukrainian city of Donetsk, specializes in making equipment and spare parts for ferrous metallurgy, the mining industry and cement plants, and has steelmaking and metal casting workshops, according to its website.

    Reuters was not able to find any data about the financial state of the company. It was added to the Russian state tax register in December 2022 and has yet to report financial data.

    According to a Ukrainian register, the legal status of the plant in Debaltseve has been suspended by the Ukrainian authorities. The register does not indicate when or why this happened.

    As of early 2023, its only owner was the Ukrainian Donetsk regional state administration.

    The Ukrainian government, as well as the Russian-appointed Donetsk People’s Republic administration, did not immediately comment to Reuters about cooperation with Chinese companies and shipments of goods to China.

    The copper alloy shipments from the plant were carried out via the port of Novorossiysk in southern Russia, according to the customs data.

    Reporting by Filipp Lebedev and Gleb Stolyarov in Tbilisi; Editing by Mark Trevelyan and Andrew Cawthorne

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  • Explainer: What is solid-fuel technology, and why is North Korea eager to develop it?

    Explainer: What is solid-fuel technology, and why is North Korea eager to develop it?

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    SEOUL, April 14 (Reuters) – North Korea says it has tested a new solid-fuel intercontinental ballistic missile (ICBM), its first known use of the propellant in a longer-range projectile, as it seeks the capability to launch with little preparation.

    Here are some characteristics of solid-fuel technology, and how it can help the North improve its missile systems.

    WHAT IS SOLID-FUEL TECHNOLOGY?

    Solid propellants are a mixture of fuel and oxidiser. Metallic powders such as aluminium often serve as the fuel, and ammonium perchlorate, which is the salt of perchloric acid and ammonia, is the most common oxidiser.

    The fuel and oxidiser are bound together by a hard rubbery material and packed into a metal casing.

    When solid propellant burns, oxygen from the ammonium perchlorate combines with aluminium to generate enormous amounts of energy and temperatures of more than 5,000 degrees Fahrenheit (2,760 degrees Celsius), creating thrust and lifting the missile from the launch pad.

    North Korea claims to have tested a new solid-fuel intercontinental ballistic missile (ICBM), the Hwasong-18

    WHO HAS THAT TECHNOLOGY?

    Solid fuel dates back to fireworks developed by the Chinese centuries ago, but made dramatic progress in the mid-20th century, when the U.S. developed more powerful propellants.

    The Soviet Union fielded its first solid-fuel ICBM, the RT-2, in the early 1970s, followed by France’s development of its S3, also known as SSBS, a medium-range ballistic missile.

    China started testing solid-fuel ICBMs in the late 1990s.

    South Korea said on Friday it had already secured “efficient and advanced” solid-propellant ballistic missile technology.

    SOLID VS. LIQUID

    Liquid propellants provide greater propulsive thrust and power, but require more complex technology and extra weight.

    Solid fuel is dense and burns quite quickly, generating thrust over a short time. Solid fuel can remain in storage for an extended period without degrading or breaking down – a common issue with liquid fuel.

    Vann Van Diepen, a former U.S. government weapons expert who now works with the 38 North project, said solid-fuel missiles are easier and safer to operate, and require less logistical support, making them harder to detect and more survivable than liquid-fuel weapons.

    Ankit Panda, a senior fellow at the U.S.-based Carnegie Endowment for International Peace, said any country that operates large scale, missile-based nuclear forces would seek solid-propellant missiles, which do not need to be fuelled immediately ahead of launch.

    “These capabilities are much more responsive in a time of crisis,” Panda said.

    WHAT NEXT?

    North Korea said the development of its new solid-fuel ICBM, the Hwasong-18, would “radically promote” its nuclear counterattack capability.

    South Korea’s defence ministry sought to downplay the testing, saying the North would need “extra time and effort” to master the technology.

    Panda said the North could face difficulties ensuring such a large missile does not break apart when the diameter of the booster becomes larger.

    Although the Hwasong-18 might not be a “game changer”, he said, it will most likely complicate the calculations of the United States and its allies during a conflict.

    “The most important interest the United States and its allies have is to reduce the risks of nuclear use and escalation stemming from North Korea’s possession of these weapons,” Panda said.

    Reporting by Hyonhee Shin; Additional reporting by Ju-min Park; Editing by Gerry Doyle

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  • Exclusive: India’s Bank of Baroda stops clearing payment for above-cap Russian oil – sources

    Exclusive: India’s Bank of Baroda stops clearing payment for above-cap Russian oil – sources

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    NEW DELHI, April 4 (Reuters) – India’s Bank of Baroda (BOB.NS) has stopped clearing payments for Russian oil sold above the price cap set by the West from this month, three sources with direct knowledge of the matter said, a move that could expedite transition to a rupee trade mechanism.

    Some Indian refiners were paying in the United Arab Emirates dirham currency for Russian low-sulphur crude priced above the $60 a barrel cap using Bank of Baroda, mainly to Dubai-based traders, sources said.

    The Group of Seven economies, the European Union and Australia, set the price cap late last year to bar Western services and shipping from trading Russian oil unless sold at an enforced low price to deprive Moscow of funds for its Ukraine war.

    “Bank of Baroda is extremely cautious in settling payments for Russian oil bought (at levels) above the price cap,” one of the sources said.

    “They have told us no for settling payments for above-cap barrels,” the person said.

    The state-run lender told refiners last month that it would not settle payment from Russian barrels bought above the price cap, the three sources said.

    Bank of Baroda did not respond to requests for comment from Reuters.

    Before the Ukraine war, Indian refiners rarely bought oil from Russia due to higher freight costs. After Western sanctions on Moscow for its invasion of Ukraine, Indian refiners have been gorging on discounted Russian oil.

    Russia has replaced Iraq as the top oil supplier to India in the last few months, data from trade sources showed.

    Sources anticipate that prices of Russian sweet crude such as Sokol and ESPO Blend, which was sold near $60 a barrel in recent weeks, could breach the price cap due to a sharp spike in global oil prices triggered by Sunday’s OPEC+ decision to cut output.

    Some refiners, mainly private operators, have been clearing payments in dirhams for Russian crude through private lender Axis Bank (AXBK.NS), sources told Reuters last month. It was not clear if Axis Bank had also stopped settling trades for Russian oil sold above the price cap.

    Axis Bank did not immediately respond to Reuters’ request for comment.

    Although Indian refiners buy Russian oil on a delivered basis, copies of invoices reviewed by Reuters also show shipping charges, which helps in calculating the price of crude at Russian ports.

    Sources said that problems in settling trade for Russian oil could push sellers to accept rupee payments, at least for barrels that exceed the price cap.

    “We have neither stopped nor reduced purchases of Russian oil after Bank of Baroda’s decision … we will consider using rupees to pay for oil purchased above the price cap,” another source said.

    India does not recognise the Western price cap on Russian oil, a senior oil ministry source said last month.

    SETTLEMENT MECHANISM

    India set up a mechanism to settle its international trade in rupees last year. Some Russian banks later opened vostro accounts with banks in India to facilitate rupee trade.

    The mechanism has not yet started given the lack of Russian appetite for rupees and India’s trade deficit with Moscow.

    However, during a visit last week to India, Igor Sechin, chief executive of Russian oil major Rosneft, discussed ways to expand cooperation with India across the hydrocarbons value chain, including the possibility of making payments in national currencies.

    A switch to rupee payments would help wean Russia from dollars and would save foreign exchange for India.

    Reporting by Nidhi Verma; Additional reporting by Siddhi Nayak in Mumbai; Editing by Tony Munroe and Jacqueline Wong

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  • Ukraine’s tech entrepreneurs fight war on a different front

    Ukraine’s tech entrepreneurs fight war on a different front

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    PRAGUE, April 4 (Reuters) – Eugene Nayshtetik and his five co-workers shuttered their company developing medical and biotech startups to join the defense forces days after Russia invaded Ukraine. Within two months, their commanders agreed it would be more useful if they swapped their military gear for computers.

    With the government’s blessing, Nayshtetik and his team of engineers moved to neighboring Poland where they raised initial funding from a Polish company, Air Res Aviation, to develop a new drone for the Ukrainian military.

    Jerzy Nowak, president and co-owner of Air Res Aviation, said his company’s initial investment in the drone project amounted to around $200,000.

    The Defender drone, now ready for testing, is designed to withstand strong winds to enable surveillance in bad weather, can fly vertically and carry big payloads. It’s an example of how some startups in Ukraine’s dynamic tech sector are switching to pursue military projects.

    “We had our own portfolio of medical and biotechnology civilian projects before the war,” Nayshtetik told Reuters. “We never dreamt of killing people. We wanted to heal people but the situation changed.”

    Reuters spoke to more than a dozen entrepreneurs, as well as Ukrainian and Western officials who said the shift to military innovation in Ukraine’s once-thriving technology sector has bolstered the country’s out-manned and out-gunned armed forces.

    Military experts and Ukrainian officials told Reuters that innovations developed by these startups are making a difference on the battlefield, ranging from software applications that can target enemy positions more quickly to civilian drones adapted for military use, and systems that integrate data to give commanders more detailed battlefield views.

    “The Ukrainians are outmatched by every numerical scale: in terms of numbers of forces; in terms of numbers when it comes to equipment. And yet they’re holding their own,” said a senior NATO official, who spoke on condition of anonymity. “One of the reasons they’re holding their own is that they have, in a very innovative way, integrated technology into warfighting.”

    Before Russia’s invasion, Ukraine represented one of the fastest growing tech hubs in central and eastern Europe. The enterprise value of startups soared more than 9-fold between 2017 and 2022 to reach 23 billion euros, according to data from Dealroom.com.

    Ukraine offered a host of advantages for emerging technology businesses, including a tradition of producing graduates strong in math and computer science. A low cost base also allowed entrepreneurs to do more with less.

    The country boasted 285,000 software developers in 2021 with an additional 25,000 graduating from tech universities annually, according to software development outsourcing company Softjourn.

    But with most emerging companies in Ukraine focused on the domestic market, many startups suffered a collapse in demand following the war – which has killed tens of thousands of people, reduced cities to rubble and wreaked havoc on infrastructure.

    Pavlo Kartashov, director of the Ukrainian Startup Fund (USF), a government-backed organization that seeds technology startups, told Reuters his group resumed funding in October. It hopes to finance around five to 10 emerging companies a month with grants of up to $35,000.

    Most will focus on military technology, he said.

    The fund also aims to unveil in April a new platform to connect emerging companies more closely with the military to identify the needs on the battlefield and to speed the transformation of ideas into tools that can be used in the conflict.

    “If you have something innovative and efficient it will definitely be used by the army,” he told Reuters. “We need new technology to fight the enemy and can try different approaches in real time.”

    PLOUGHSHARES INTO SWORDS

    Since the war, Western venture capital firms often have required strict term sheets that include having at least one founder and other key parts of the business located outside Ukraine. So the government has become the sole source within the country of early stage funding – the lifeblood of the technology sector – more than half a dozen founders and venture capitalists said.

    Demand from the government has driven the shift to military technology, but most of the entrepreneurs who spoke to Reuters said that patriotic duty also played a role.

    Take Kiev-based efarm.pro, a startup founded in 2016 whose GPS technology attached to tractors helps farmers more precisely monitor how fertilizer has penetrated the ground. Many of its customers are located in parts of Ukraine that became too dangerous to farm after the Russian invasion so the company adapted its product to detect mines.

    The self-driving technology is only aimed at farmers for now but could also work for military vehicles, the company’s founder Alexander Prykhodchenko told Reuters.

    “Clients were calling us in the first days of the war saying they don’t know how they can work in the field,” Prykhodchenko said. “The war started on February 24 and on February 26 we started work on the new project.”

    Currently, only three of the tractors are in use as the autonomous technology remains in the testing and development phase, Prykhodchenko said.

    Ukraine’s Minister of Digital Transformation Mykhailo Fedorov said the intensity of the fighting has meant that some concepts can flow from the drawing board to the battlefield in months, if not days.

    While acknowledging the critical role of weapons supplied by Western nations in helping to fight the Russians, he added that the ability to utilize the know-how of tech-savvy Ukrainians at home and abroad has proved invaluable.

    “One of the few areas where Ukraine has managed to stay consistently ahead of Russia is in the use of innovative military technologies,” he wrote in a February article for the Atlantic Council.

    Russia says its own weapons industry is increasing production and introducing new technology fast to meet the demands of military operations in Ukraine.

    Gregory Allen, a senior fellow at the Center for Strategic & International Studies in Washington DC, highlighted the so-called “Uber for Artillery” application developed by a network of Ukrainian programmers before the Russian invasion that networks together infantry, reconnaissance and artillery units to spot and land an artillery strike more quickly.

    He also said that a pair of anonymous Ukrainian software developers had rapidly created a program in mid-2022 that used machine learning to analyze video feeds from drones to detect more effectively military vehicles camouflaged in forests. Reuters was not able to confirm independently the details of the software.

    “I used to work in the Defense Department, and I have almost never seen high quality military machine learning systems go from an idea in someone’s head to a real system being used in war in a matter of weeks,” Allen told Reuters. “The value of the Ukrainian software systems is impressive but the speed is astonishing.”

    The Pentagon’s chief weapons buyer Bill LaPlante has described Ukraine’s use of technology in the war as a “wake up call.”

    “We are seeing true innovation on the battlefield: new combinations of technologies and concepts being developed and implemented, and the cycle from idea to prototype to a warfighter’s hands collapsed to months, if not weeks,” LaPlante told a U.S. Congressional committee last month.

    ISRAELI MODEL

    While Ukraine’s government and tech founders are focused on war-time innovation to aid the military now, they say these emerging start ups can also underpin Ukraine’s post-war economy — pointing to Israel as an example of how military technology laid the foundation for a booming technology sector.

    Government support and experience working on military projects transformed Israel into a global tech hub and propelled the nation into a leader in cybersecurity and autonomous driving vehicles — a path Ukraine officials and tech leaders like Valery Krasovsky hope to emulate for a country with a pre-war population nearly five times that of Israel.

    “There are much more ideas in military technology,” said Krasovsky, the founder and chief executive of Swedish-Ukrainian Sigma Software Group.

    For now, the scarcity of seed funding in Ukraine has forced some companies to flee to places like to neighboring Poland. Groups like the Polish-Ukrainian Start Up Bridge – a Polish-government backed venture – offer emerging Ukrainian tech companies small grants to fund basic business needs and a co-working space in Warsaw.

    “Startups have had the past year to teach themselves how to survive and adapt to the new reality,” Mykhailo Khaletskyi, an advisor for the Startup Bridge and Ukrainian government, told Reuters.

    Additional Reporting by Andrew Gray and Sabine Siebold in Brussels, Elizabeth Piper in London and Mike Stone in Washington, Editing by Daniel Flynn

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  • Russian charged with war crimes may brief U.N. Security Council

    Russian charged with war crimes may brief U.N. Security Council

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    UNITED NATIONS, April 3 (Reuters) – Russia’s commissioner for children’s rights, who is wanted by the International Criminal Court on war crimes charges, is likely to brief an informal meeting of the U.N. Security Council this week, according to a note seen by Reuters on Monday.

    Russia, which holds the monthly rotating presidency of the 15-member body for April, told council members in a note that it plans to hold an informal meeting on Wednesday on Ukraine, focused on “evacuating children from conflict zone.”

    “Participants will hear ‘first hand’ information from the Presidential Commissioner for Children’s Rights of the Russian Federation, as well as from children evacuated from the conflict area,” read the note.

    The commissioner is Maria Lvova-Belova. The International Criminal Court (ICC) last month issued an arrest warrant against Russian President Vladimir Putin and Lvova-Belova, accusing them of illegally deporting hundreds of children from Ukraine, as well as the unlawful transfer of people to Russia from Ukraine since Moscow invaded on Feb. 24, 2022.

    “They cannot invite a credible briefer because they do not have any credibility on this issue,” Britain’s Deputy U.N. Ambassador James Kariuki told Reuters in a statement. “Russian leaders have been charged by the ICC with unlawfully deporting children from Ukraine to Russia. That is a war crime.”

    Russia’s U.N. Ambassador Vassily Nebenzia said on Monday that the meeting briefers would be announced shortly. Such meetings are held at U.N. headquarters, but not in the Security Council chamber, and briefings can be done virtually.

    ‘APRIL FOOL’S JOKE’

    Moscow has not concealed a program under which it has brought thousands of Ukrainian children to Russia but presents it as a humanitarian campaign to protect orphans and children abandoned in the conflict zone.

    Nebenzia told reporters last month that the informal meeting of Security Council members to be held on Wednesday had been planned long before the ICC announcement and it was not intended to be a rebuttal of the charges against Putin and Lvova-Belova.

    While a feature of Russia’s presidency, members do not need to be the rotating monthly president to hold such meetings.

    Russian Foreign Minister Sergei Lavrov is due to travel to New York to chair formal Security Council meetings later in the month on the Middle East and on “effective multilateralism through the defense of the principles of the U.N. Charter.”

    The 193-member U.N. General Assembly has criticized Russia for violating the founding U.N. Charter by invading its neighbor and called for a “comprehensive, just and lasting peace” in line with the principles of the U.N. Charter.

    Given Russia’s Security Council presidency started on April 1, U.S. Ambassador to the United Nations, Linda Thomas-Greenfield, told reporters on Monday: “It’s like an April Fool’s joke … We expect that they will behave professionally.”

    “But we also expect that they will use their seat to spread disinformation and to promote their own agenda as it relates to Ukraine, and we will stand ready to call them out at every single moment that they attempt to do that,” she said.

    Reporting by Michelle Nichols; Editing by Don Durfee and Bill Berkrot

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  • Ukraine’s Zelenskiy aims for Western warplane coalition; Russians pressure Bakhmut

    Ukraine’s Zelenskiy aims for Western warplane coalition; Russians pressure Bakhmut

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    • Poland pledges more MiG jets for Kyiv during Zelenskiy visit
    • Zelenskiy cites difficult situation for Kyiv’s forces in Bakhmut
    • France’s Macron in China to nudge it to help end Russia’s war

    KYIV, April 5 (Reuters) – Ukrainian President Volodymyr Zelenskiy said during a trip to Warsaw on Wednesday that Poland would help form a coalition of Western powers to supply warplanes to Kyiv, adding that Ukrainian troops were still fighting for Bakhmut in the east but could withdraw if they risked being cut off.

    Neighbouring Poland is a close ally of Ukraine and helped galvanise support in the West to supply main battle tanks to Kyiv. During Zelenskiy’s visit, Poland announced it would send 10 more MiG fighter jets on top of four provided earlier.

    “Just as your (Polish) leadership proved itself in the tank coalition, I believe that it will manifest itself in the planes coalition,” Zelenskiy said in a speech on a square in Warsaw.

    Earlier in the day, Zelenskiy said Ukrainian troops faced a really difficult situation in Bakhmut and the military would take “corresponding” decisions to protect them if they risk being encircled by Russian invasion forces.

    Ukrainian forces in Bakhmut sometimes advanced a little only to be knocked back, Zelenskiy said, but remained inside the city.

    “We are in Bakhmut and the enemy does not control it,” Zelenskiy said.

    BOMBARDMENT

    Bakhmut, in Ukraine’s mainly Russian-occupied Donetsk province, has proven one of the bloodiest and longest battles of Russia’s invasion, now in its 14th month. Kyiv’s forces have held out against a Russian onslaught with heavy losses on both sides and the city, a mining and transport hub, reduced to ruin after months of street fighting and bombardment.

    “For me, the most important is not to lose our soldiers and of course if there is a moment of even hotter events and the danger we could lose our personnel because of encirclement – of course the corresponding correct decisions will be taken by generals there,” Zelenskiy said.

    He appeared to be referring to the idea of withdrawing.

    However, Deputy Defence Minister Hanna Malyar said later in that the situation at the front was “completely under control” despite repeated Russian attempts to take Bakhmut and other cities in the east.

    Reuters could not verify the battlefield reports.

    Ukrainian military commanders have stressed the importance of holding Bakhmut and other cities and inflicting losses on Russian troops before an anticipated counter-offensive against them in the coming weeks or months.

    [1/6] Ukrainian service member, Naza, 21, commander from 28th mechanised brigade repositions his machine gun during a fire exchange at the frontline, amid Russia?s attack on Ukraine in the region of Bakhmut, Ukraine, April 5, 2023. REUTERS/Kai Pfaffenbach

    Mercenaries from the Wagner group – who have spearheaded the assault on Bakhmut – said at the weekend they had captured the city centre, a claim dismissed by Kyiv.

    The U.S.-based Institute for the Study of War said the Wagner fighters had made advances in Bakhmut and were likely to continue trying to consolidate control of the city centre and push westward through dense urban neighbourhoods.

    PLAYING THE CHINA CARD

    French President Emmanuel Macron, meanwhile, was visiting China after he and U.S. President Joe Biden agreed they would try to engage Beijing to hasten the end of the Russian assault on Ukraine.

    China has called for a comprehensive ceasefire and described its position on the conflict as “impartial”, even though the Chinese and Russian presidents announced a “no limits” partnership shortly before the invasion.

    Both Macron and European Commission President Ursula von der Leyen, due in Beijing shortly after him, have said they want to persuade China to use its influence over Russia to bring peace in Ukraine, or to at least deter Beijing from directly supporting Moscow in the conflict.

    The U.S. and NATO have said China was considering sending arms to Russia, which Beijing has denied.

    ‘SHOULDER TO SHOULDER’

    Poland has played a big role in persuading Western allies to supply battle tanks and other heavy weapons to Ukraine, which helped Kyiv stem and sometimes reverse Russian advances so far.

    “You have stood shoulder to shoulder with us, and we are grateful for it,” Zelenskiy said after Polish President Andrzej Duda presented him with Poland’s highest award, the Order of the White Eagle.

    Duda said Warsaw was also working to secure additional security guarantees for Ukraine at a NATO summit to be held in the Lithuania in July.

    Russian Foreign Minister Sergei Lavrov told state TV that Moscow needed to maintain relations with Washington even though American supplies of weapons to Ukraine meant “we are really in a hot phase of the war”.

    In addition to MiG-29s, Kyiv has also pressed NATO for F-16 jet fighters but Duda’s foreign policy adviser, Marcin Przydacz, said Poland would not decide soon on whether to send any.

    Reporting by Pavel Polityuk with additional reporting by Ron Popeski, Mike Stone, Alan Charlish, Pawel Florkiewicz and Tom Balmforth; writing by Angus MacSwan, Mark Heinrich and Idrees Ali; editing by Philippa Fletcher, Nick Macfie and Grant McCool

    Our Standards: The Thomson Reuters Trust Principles.

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  • China warns US House Speaker not to meet Taiwan president

    China warns US House Speaker not to meet Taiwan president

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    • McCarthy, Tsai to meet in Los Angeles on Wednesday
    • China again warns McCarthy against meeting
    • Taiwan says China’s criticism “increasingly absurd”

    BEIJING/TAIPEI, April 4 (Reuters) – China warned U.S. House Speaker Kevin McCarthy on Tuesday not to “repeat disastrous past mistakes” by meeting Taiwan President Tsai Ing-wen, saying it would not help regional peace and stability, only unite the Chinese people against a common enemy.

    The Republican McCarthy, the third-most-senior U.S. leader after the president and vice president, will host a meeting in California on Wednesday with Tsai, during a sensitive stopover in the United States that has prompted Chinese threats of retaliation.

    China, which claims Taiwan as its own territory, staged war games around the island last August after then-Speaker Nancy Pelosi, a Democrat, visited the capital, Taipei.

    Tsai will make what is formally called a “transit” in Los Angeles on her way back to Taipei after a trip to Central America. The United States says such stopovers are common practice and there is no need for China to overreact.

    But China’s consulate in Los Angeles said it was “false” to claim it as a transit, adding that Tsai was engaging in official exchanges to “put on a political show”.

    No matter in what capacity McCarthy meets Tsai, the gesture would greatly harm the feelings of the Chinese people, send a serious wrong signal to Taiwan separatist forces, and affect the political foundation of Sino-U.S. ties, it said in a statement.

    “It is not conducive to regional peace, security nor stability, and is not in the common interests of the people of China and the United States,” the consulate added.

    McCarthy is ignoring the lessons from the mistakes of his predecessor, it said, in a veiled reference to Pelosi’s Taipei visit, and is insisting on playing the “Taiwan card”.

    “He will undoubtedly repeat disastrous past mistakes and further damage Sino-U.S. relations. It will only strengthen the Chinese people’s strong will and determination to share a common enemy and support national unity.”

    Speaking to reporters in Beijing on Tuesday, Chinese Foreign Ministry spokesperson Mao Ning said China will closely follow developments and resolutely and vigorously defend its sovereignty and territorial integrity, without giving details.

    CHINESE MILITARY ACTIVITIES

    Although Taiwan has not reported unusual Chinese movements in the run-up to the meeting, China’s military has continued activities around the island.

    Taiwan’s defence ministry on Tuesday morning reported that in the previous 24 hours it had spotted nine Chinese military aircraft in its air defence identification zone, in an area between Taiwan’s southwest coast and the Taiwan-controlled Pratas Islands at the top of the South China Sea.

    In a statement on Tuesday, Taiwan’s foreign ministry said China had no right to complain, as the People’s Republic of China has never ruled the island.

    China’s recent criticism of Tsai’s trip “has become increasingly absurd”, it added.

    “Even if the authoritarian government continues with its expansion and intensifies coercion, Taiwan will not back down,” the statement said.

    In China, prominent commentator Hu Xijin wrote on his widely followed Twitter account “the Chinese mainland will definitely react, and make the Tsai Ing-wen regime lose much more than what they can gain from this meeting.”

    Hu, who had voiced his concerns over House Speaker Nancy Pelosi’s visit to Taiwan last year, also wrote “The U.S. side is definitely not getting any real advantage either,” on his Weibo account, a Twitter-like social media platform in China.

    Hu is former editor-in-chief of Chinese state-backed tabloid the Global Times, known for its strident nationalistic stance.

    Taiwan has lived with the threat of a Chinese attack since the defeated Republic of China government fled to the island in 1949 after losing a civil war with Mao Zedong’s communists.

    Life in Taiwan has continued as normal, with shops, restaurants and tourist spots in Taipei packed during a long holiday weekend that ends on Wednesday.

    “They will certainly get angry and there will be some actions, but we are actually used to this,” said social worker Sunny Lai, 42.

    Reporting by Laurie Chen in Beijing and Ben Blanchard in Taipei; Additional reporting by Beijing newsroom and Fabian Hamacher in Taipei; Editing by Himani Sarkar, Clarence Fernandez and Gerry Doyle

    Our Standards: The Thomson Reuters Trust Principles.

    Laurie Chen

    Thomson Reuters

    Laurie Chen is a China Correspondent at Reuters’ Beijing bureau, covering politics and general news. Before joining Reuters, she reported on China for six years at Agence France-Presse and the South China Morning Post in Hong Kong. She speaks fluent Mandarin.

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  • Analysis: China’s intensifying nuclear-armed submarine patrols add complexity for U.S., allies

    Analysis: China’s intensifying nuclear-armed submarine patrols add complexity for U.S., allies

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    HONG KONG, April 4 (Reuters) – China is for the first time keeping at least one nuclear-armed ballistic missile submarine constantly at sea, according to a Pentagon report – adding pressure on the United States and its allies as they try to counter Beijing’s growing military.

    The assessment of China’s military said China’s fleet of six Jin-class ballistic missile submarines were operating “near-continuous” patrols from Hainan Island into the South China Sea. Equipped with a new, longer-range ballistic missile, they can hit the continental United States, analysts say.

    The note in the 174-page report drew little attention when it was released in late November, but shows crucial improvements in Chinese capabilities, according to four regional military attaches familiar with naval operations and five other security analysts.

    Even as the AUKUS deal will see Australia field its first nuclear-powered submarines over the next two decades, the constant Chinese ballistic missile patrols at sea pile strain on the resources of the United States and its allies as they intensify Cold War-style deployments.

    “We’re going to want to have our SSNs trying to tail them… so the extra demands on our assets are clear,” said Christopher Twomey, a security scholar at the U.S. Naval Postgraduate School in California, speaking in a private capacity. SSN is a U.S. designation for a nuclear-powered attack sub. “But the point here is that the information – the near continuous patrols – has changed so rapidly that we don’t know what else has changed.”

    The new patrols imply improvements in many areas, including logistics, command and control, and weapons. They also show how China starting to operate its ballistic missile submarines in much the same way the United States, Russia, Britain and France have for decades, military attaches, former submariners and security analysts say.

    Their “deterrence patrols” allow them to threaten a nuclear counterattack even if land-based missiles and systems are destroyed. Under classic nuclear doctrine, that deters an adversary from launching an initial strike.

    The Chinese subs are now being equipped with a third-generation missile, the JL-3, General Anthony Cotton, the commander of the U.S. Strategic Command, told a congressional hearing in March.

    With an estimated range of more than 10,000 kilometres (6,214 miles) and carrying multiple warheads, the JL-3 allows China to reach the continental United States from Chinese coastal waters for the first time, the Pentagon report notes.

    Previous reports had said the JL-3 was not expected to be deployed until China launched its next-generation Type-096 submarines in coming years.

    The Chinese defence ministry did not respond to a request for comment on the Pentagon report and its submarine deployments. The Pentagon did not comment on its earlier assessments or whether the Chinese deployments posed an operational challenge.

    The U.S. Navy keeps about two dozen nuclear-powered attack subs based across the Pacific, including in Guam and Hawaii, according to the Pacific Fleet. Under AUKUS, U.S. and British nuclear-powered subs will be deployed out of Western Australia from 2027.

    Such submarines are the core weapons for hunting ballistic missile subs, backed by surface ships and P-8 Poseidon surveillance aircraft. The U.S. also has seabed sensors in key sea lanes to help detect submarines.

    Timothy Wright, a defence analyst at London’s International Institute for Strategic Studies, said U.S. forces could probably cope with the situation now, but would have to commit more assets in the next 10 to 15 years once the stealthier Type-096 patrols begin.

    China’s rapid expansion of its nuclear forces mean U.S. strategists must contend with two “nuclear peer adversaries” for the first time, along with Russia, he added.

    “That will be of concern to the United States because it will stretch U.S. defences, hold more targets at risk, and they will need addressing with additional conventional and nuclear capabilities,” he said.

    COMMAND AUTHORITY

    China’s navy has for years been thought to have the capability for deterrence patrols, but issues with command, control and communications have slowed their deployment, the military attaches and analysts say. Communications are crucial and complex for ballistic missile subs, which must remain hidden as part of their mission.

    The Jin-class subs, expected to be replaced by the Type-096 over the next decade, are relatively noisy and easy to track, the military attaches said.

    “Something concerning command authority must have also changed, but we just don’t have very good opportunities to talk to the Chinese about this kind of stuff,” Twomey said.

    The Chinese military has emphasised that the Central Military Commission, headed by President Xi Jinping, is the only nuclear command authority.

    Hans Kristensen, director of the nuclear information project at the Federation of American Scientists, said he believed command and communications issues remained a “work in progress”.

    “While China probably has made progress on establishing secure and operationally meaningful command and control between the Central Military Commission and the SSBNs, it seems unlikely that the capability is complete or necessarily fully battle hardened,” he said, using the designation letters for a nuclear-powered ballistic missile submarine.

    Two researchers at a Chinese navy training institute in Nanjing warned in a 2019 underwater-warfare journal of poor command organisation and co-ordination among submarine forces. The paper also urged improvements in submarine-launched nuclear strike capability.

    The navy must “strengthen ballistic missile nuclear submarines on patrol at sea, so as to ensure that they have the means and capabilities to carry out secondary nuclear counterattack operations when necessary,” the researchers wrote.

    SOUTH CHINA SEA ‘BASTION’

    With the advent of the JL-3 missile, Kristensen and other analysts expect Chinese strategists to keep their ballistic missile subs in the deep waters of the South China Sea – which China has fortified with a string of bases – rather than risk patrols in the Western Pacific.

    Collin Koh, a security fellow at Singapore’s S. Rajaratnam School of International Studies, said China could keep its ballistic missile submarines in a “bastion” of protected waters near its shores.

    “If I was the planner, I would want to keep my strategic deterrence assets as close to me as possible, and the South China Sea is perfect for that,” Koh said.

    Russia is thought to keep most of its 11 ballistic missile submarines largely in bastions off its Arctic coasts, while U.S., French and British boats roam more widely, three analysts said.

    Kristensen said the more numerous Chinese submarine deployments have meant the PLA and U.S. militaries increasingly “rub up” against each other – increasing the odds of accidental conflict.

    “The Americans of course are trying to poke into that bastion and see what they can do, and what they need to do, so that is where the tension can build and incidents happen,” he said.

    Reporting By Greg Torode in Hong Kong and Eduardo Baptista in Beijing; Additional reporting by Idrees Ali in Washington; Editing by Gerry Doyle.

    Our Standards: The Thomson Reuters Trust Principles.

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  • Putin ally proposing banning ICC in Russia

    Putin ally proposing banning ICC in Russia

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    March 25 (Reuters) – Russia’s parliament speaker on Saturday proposed banning the activities of the International Criminal Court (ICC) after the court issued an arrest warrant for President Vladimir Putin, accusing him of the war crimes.

    Vyacheslav Volodin, an ally of Putin’s, said that Russian legislation should be amended to prohibit any activity of the ICC in Russia and to punish any who gave “assistance and support” to the ICC.

    “It is necessary to work out amendments to legislation prohibiting any activity of the ICC on the territory of our country,” Volodin said in a Telegram post.

    Volodin said that the United States had legislated to prevent its citizens ever being tried by the Hague court and that Russia should continue that work.

    Any assistance or support for the ICC inside Russia, he said, should be punishable under law.

    The ICC issued an arrest warrant earlier this month accusing Putin of the war crime of illegally deporting hundreds of children from Ukraine. It said there are reasonable grounds to believe that Putin bears individual criminal responsibility.

    Russian officials have cautioned that any attempt to arrest Putin, Russia’s paramount leader since the last day of 1999, would amount to a declaration of war against the world’s largest nuclear power.

    In its first warrant for Ukraine, the ICC called for Putin’s arrest on suspicion of unlawful deportation of children and unlawful transfer of people from the territory of Ukraine to the Russian Federation since Feb. 24, 2022.

    The Kremlin says the ICC arrest warrant is an outrageously partisan decision, but meaningless with respect to Russia. Russian officials deny war crimes in Ukraine and say the West has ignored what it says are Ukrainian war crimes.

    Big powers such as Russia, the United States and China are not members of the ICC though 123 countries are state parties to the Rome Statute, including Britain, France, Germany and some former Soviet republics such as Tajikistan.

    Ukraine is not a member of the ICC, although Kyiv granted it jurisdiction to prosecute crimes committed on its territory.

    Reporting by Guy Faulconbridge; Editing by Stephen Coates

    Our Standards: The Thomson Reuters Trust Principles.

    Guy Faulconbridge

    Thomson Reuters

    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.
    Contact: +447825218698

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  • Apple CEO praises China’s innovation, long history of cooperation on Beijing visit

    Apple CEO praises China’s innovation, long history of cooperation on Beijing visit

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    SHANGHAI, March 25 (Reuters) – Apple (AAPL.O) CEO Tim Cook on Saturday used his first public remarks on his visit to China to praise the country for its rapid innovation and its long ties with the U.S. iPhone maker, according to local media reports.

    Apple (AAPL.O) CEO Tim Cook on Saturday used his first public remarks in China in recent years to praise the country for its rapid innovation and its long ties with the U.S. iPhone maker, according to local media reports.

    Cook is in Beijing to attend the China Development Forum, a government-organised event being held again in full force after the country ended its COVID controls late last year.

    Besides Cook, the event is being attended by senior government officials as well as CEOs of firms such as Pfizer and BHP.

    “Innovation is developing rapidly in China and I believe it will further accelerate,” Cook was quoted by The Paper news outlet as saying.

    His visit comes at a time of rising tensions between Beijing and Washington and as Apple has been looking to reduce its supply chain reliance on China and moving production to new up and coming centres such as India.

    Last year, production at the world’s largest iPhone factory run by Apple supplier Foxconn was heavily disrupted after China’s zero-COVID policies fuelled worker unrest.

    Cook also visited an Apple Store in Beijing on Friday, pictures of which went viral on Chinese social media.

    During his speech, Cook also discussed education and the need for young people to learn programming critical thinking skills, announcing that Apple plans to increase spending on its rural education programme to 100 million yuan, the local media reports said.

    Reporting by Brenda Goh

    Our Standards: The Thomson Reuters Trust Principles.

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  • Russia’s war on Ukraine latest: Ukraine slams Putin’s nuclear weapons plan

    Russia’s war on Ukraine latest: Ukraine slams Putin’s nuclear weapons plan

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    March 26 (Reuters) – A top security adviser to Ukrainian President Volodymyr Zelenskiy said that Russian plans to station tactical nuclear weapons in Belarus would destabilise that country, which he said had been taken “hostage” by Moscow. Russian President Vladimir Putin announced the decision on Saturday, sending a warning to NATO over its military support for Ukraine and escalating a standoff with the West.

    DIPLOMACY AND SANCTIONS

    * Russia and China are not creating a military alliance and the cooperation between their armed forces is “transparent”, Putin said in comments broadcast on Sunday, days after hosting Chinese leader Xi Jinping in the Kremlin.

    * Spanish Prime Minister Pedro Sanchez said on Saturday he would push for fair peace in the war in Ukraine that included “territorial integrity”, when he visits China next week.

    * Putin held a phone call with his Turkish counterpart Tayyip Erdogan, the Kremlin said. Erdogan thanked Putin for his “positive attitude” in extending the Black Sea grain deal, the Kremlin said in a statement.

    BATTLEFIELD

    * Ukrainian forces have managed to blunt Russia’s offensive in and around the embattled eastern city of Bakhmut, where the situation is stabilising, commander in chief General Valery Zaluzhniy said on Saturday. Separately, Britain’s defence ministry said the months-long Russian assault on the city had stalled, mainly as a result of heavy troop losses.

    * The Ukraine General Staff said on Sunday Ukrainian forces had repelled 85 Russian attacks over the past 24 hours in several parts of the eastern front, including the Bakhmut area.

    * U.N. nuclear watchdog chief Rafael Grossi said on Saturday he will visit the Russian-held Zaporizhzhia nuclear power plant in Ukraine next week to assess the serious situation there.

    * More than 5,000 former criminals have been pardoned after finishing their contracts to fight in Russia’s Wagner mercenary group against Ukraine, the founder of Wagner, Yevgeny Prigozhin, said on Saturday.

    *Reuters could not independently verify battlefield reports.

    ECONOMY

    * Ukraine will no longer resort to “dangerous” monetary financing to fund the war against Russia, its central bank governor, Andriy Pyshnyi, told the Financial Times in an interview.

    RECENT IN-DEPTH STORIES

    * INSIGHT-Inside Ukraine’s scramble for “game-changer” drone fleet

    * Peace plans and pipelines: What came out of the Putin-Xi talks?

    * SPECIAL REPORT-Wagner’s convicts tell of horrors of Ukraine war and loyalty to their leader

    Compiled by Reuters editors

    Our Standards: The Thomson Reuters Trust Principles.

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