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  • CIA chief warns against underestimating Xi’s ambitions toward Taiwan

    CIA chief warns against underestimating Xi’s ambitions toward Taiwan

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    WASHINGTON, Feb 2 (Reuters) – U.S. Central Intelligence Agency Director William Burns said on Thursday that Chinese President Xi Jinping’s ambitions toward Taiwan should not be underestimated, despite him likely being sobered by the performance of Russia’s military in Ukraine.

    Burns said that the United States knew “as a matter of intelligence” that Xi had ordered his military to be ready to conduct an invasion of self-governed Taiwan by 2027.

    “Now, that does not mean that he’s decided to conduct an invasion in 2027, or any other year, but it’s a reminder of the seriousness of his focus and his ambition,” Burns told an event at Georgetown University in Washington.

    “Our assessment at CIA is that I wouldn’t underestimate President Xi’s ambitions with regard to Taiwan,” he said, adding that the Chinese leader was likely “surprised and unsettled” and trying to draw lessons by the “very poor performance” of the Russian military and its weapons systems in Ukraine.

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    Russia and China signed a “no limits” partnership last February shortly before Russian forces invaded Ukraine, and their economic links have boomed as Russia’s connections with the West have shriveled.

    The Russian invasion had fueled concerns in the West of China possibly making a similar move on Taiwan, a democratic island Beijing says is its territory.

    China has refrained from condemning Russia’s operation against Ukraine, but it has been careful not to provide the sort of direct material support which could provoke Western sanctions like those imposed on Moscow.

    “I think it’s a mistake to underestimate the mutual commitment to that partnership, but it’s not a friendship totally without limits,” Burns said.

    As Burns spoke, news came from U.S. officials that a suspected Chinese spy balloon had been flying over the United States for a few days, and that senior U.S. officials had advised President Joe Biden against shooting it down for fear the debris could pose a safety threat.

    Burn made no mention of the episode but called China the “biggest geopolitical challenge” currently faced by the United States.

    “Competition with China is unique in its scale, and that it really, you know, unfolds over just about every domain, not just military, and ideological, but economic, technological, everything from cyberspace, to space itself as well. It’s a global competition in ways that could be even more intense than competition with the Soviets was,” he said.

    There was no immediate comment from China’s Washington embassy about the remarks from Burns or the balloon flight.

    Burns said the next six months will be “critical” for Ukraine, where Moscow has been making incremental gains in recent weeks.

    He also said Iran’s government was increasingly unsettled by affairs within the country, citing the courage of what he described as “fed up” Iranian women.

    Reporting by Michael Martina, Rami Ayyub, David Brunnstrom and Phil Stewart; Editing by Christopher Cushing

    Our Standards: The Thomson Reuters Trust Principles.

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  • Erdogan to Sweden: Don’t expect Turkish support for NATO bid after Stockholm protest

    Erdogan to Sweden: Don’t expect Turkish support for NATO bid after Stockholm protest

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    ANKARA, Jan 23 (Reuters) – Sweden should not expect Turkey’s support for its NATO membership after a protest near the Turkish embassy in Stockholm at the weekend including the burning of a copy of the Koran, President Tayyip Erdogan said on Monday.

    Protests in Stockholm on Saturday against Turkey and against Sweden’s bid to join the North Atlantic Treaty Organization (NATO) have heightened tensions with Turkey, whose backing Sweden needs to gain entry to the military alliance.

    “Those who allow such blasphemy in front of our embassy can no longer expect our support for their NATO membership,” Erdogan said in a speech after a Cabinet meeting.

    “If you love members of terrorist organisations and enemies of Islam so much and protect them, then we advise you to seek their support for your countries’ security,” he said.

    Swedish Foreign Minister Tobias Billstrom declined to immediately comment on Erdogan’s remarks, telling Reuters in a written statement he wanted to understand exactly what had been said.

    “But Sweden will respect the agreement that exists between Sweden, Finland and Turkey regarding our NATO membership,” he added.

    Sweden and Finland applied last year to join NATO following Russia’s invasion of Ukraine but all 30 member states must approve their bids. Ankara has previously said Sweden in particular must first take a clearer stance against what it sees as terrorists, mainly Kurdish militants and a group it blames for a 2016 coup attempt in Turkey.

    U.S. State Department spokesperson Ned Price said Finland and Sweden are ready to join the alliance, but declined to comment on whether Washington thought Erdogan’s comments meant a definitive shutting of the door to them.

    “Ultimately, this is a decision and consensus that Finland and Sweden are going to have to reach with Turkey,” Price said.

    Price told reporters that burning books that are holy to many is a deeply disrespectful act, adding that the United States is cognizant that those who may be behind what took place in Sweden may be intentionally trying to weaken unity across the Atlantic and among Washington’s European allies.

    “We have a saying in this country – something can be lawful but awful. I think in this case, what we’ve seen in the context of Sweden falls into that category,” Price said.

    The Koran-burning was carried out by Rasmus Paludan, leader of Danish far-right political party Hard Line. Paludan, who also has Swedish citizenship, has staged a number of demonstrations in the past where he burned the Koran.

    Several Arab countries including Saudi Arabia, Jordan and Kuwait denounced the event. Turkey had already summoned Sweden’s ambassador and cancelled a planned visit by the Swedish defence minister to Ankara.

    Reporting by Ece Toksabay and Huseyin Hayatsever; Additional reporting by Niklas Pollard in Stockholm and Humeyra Pamuk in Washington; Editing by Hugh Lawson and Grant McCool

    Our Standards: The Thomson Reuters Trust Principles.

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  • Exclusive: U.S. to remove some Chinese entities from red flag list soon, U.S. official says

    Exclusive: U.S. to remove some Chinese entities from red flag list soon, U.S. official says

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    WASHINGTON, Dec 14 (Reuters) – The Biden administration plans to remove some Chinese entities from a red flag trade list, a U.S. official told Reuters on Wednesday amid closer cooperation with Beijing.

    The plan to remove them soon from the so-called “unverified” list is thanks to greater willingness from the Chinese government to permit U.S. site visits, the person said.

    The Commerce Department declined to comment.

    Reuters could not determine the number or names of entities designated for removal.

    The decision signals a degree of renewed cooperation between Washington and Beijing, the world’s largest economies which are locked in a heated trade and technology war.

    The decision, which mean U.S. exporters will no longer have to conduct additional due diligence before sending goods to the Chinese entities, may not herald a broader thaw.

    Asked about the decision at a Chinese foreign ministry briefing on Thursday, spokesman Wang Wenbin said they urged the United States to stop taking unfair and discriminatory practices against certain Chinese companies.

    “China will continue to uphold the legitimate and justified interests of Chinese companies,” he said.

    The Biden administration is also expected to add Chinese memory chipmaker YMTC to a tougher export control list as soon as this week, according to another person familiar with the matter.

    YMTC did not immediately respond to a request for comment.

    Companies are added to the unverified list because the United States cannot complete on-site visits to determine whether they can be trusted to receive sensitive U.S. technology exports. Such U.S. inspections in China require the approval of China’s commerce ministry.

    Under new rules announced in October, if a government prevents U.S. officials from conducting site checks at companies on the unverified list, Washington may after 60 days add them to the entity list, which means much tougher penalties.

    “The goal of (that rule) was to drive better behavior from countries that were not allowing end-use checks,” U.S. export control chief Alan Estevez said at an event earlier this month. “We are seeing better behavior,” he said, specifically singling out Beijing.

    In October, YMTC was added to the unverified list along with dozens of other Chinese entities, fueling widespread speculation that the company would be added to the entity list. Suppliers are barred from shipping U.S. technology to entity-listed companies unless the suppliers can attain a difficult-to-obtain license.

    A person familiar with the matter said YMTC was among some companies that received site visits in late November, suggesting that the chipmaker’s expected addition to the entity list may be related to other matters.

    YMTC was already under investigation by the Commerce Department over allegations it violated U.S. export rules by supplying chips to entity-listed Chinese telecoms equipment giant Huawei without a license.

    U.S. lawmakers from both political parties have called on the Biden administration to add YMTC to the list. Its planned addition was first reported by the Financial Times.

    Reporting by Alexandra Alper and Karen Freifeld; Additional reporting by Eduardo Baptista in Beijing; Editing by Chris Sanders, Howard Goller and Raissa Kasolowsky

    Our Standards: The Thomson Reuters Trust Principles.

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  • Russia unleashes missiles across Ukraine, drones hit bases deep inside Russian territory

    Russia unleashes missiles across Ukraine, drones hit bases deep inside Russian territory

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    • Air alerts sound across Ukraine, south and north hit, 4 dead
    • Russia striking Ukraine’s infrastructure since October
    • Moscow: Ukrainian drones attack air bases in Russia, 3 dead
    • Price cap of $60 for Russian oil comes into force

    KYIV, Dec 5 (Reuters) – Ukraine said Russia destroyed homes in the southeast and knocked out power in many areas with a new volley of missiles on Monday, while Moscow said Ukrainian drones had attacked two air bases deep inside Russia hundreds of miles from front lines.

    A new missile barrage had been anticipated in Ukraine for days and it took place just as emergency blackouts were due to end, with previous damage repaired. The strikes plunged parts of Ukraine back into freezing darkness with temperatures now firmly below zero Celsius (32 Fahrenheit).

    At least four people were killed in the Russian missile attacks, Ukrainian President Volodymyr Zelenskiy said, adding that most of some 70 missiles were shot down. Energy workers had already begun work on restoring power supplies, he said.

    Russia’s defence ministry said Ukrainian drones attacked two air bases at Ryazan and Saratov in south-central Russia, killing three servicemen and wounding four, with two aircraft damaged by pieces of the drones when they were shot down.

    Ukraine did not directly claim responsibility for the attacks. If it was behind them, they would be the deepest strikes inside the Russian heartland since Moscow invaded Ukraine on Feb. 24.

    One of the targets, the Engels air base near the city of Saratov, around 730 km (450 miles) southeast of Moscow, houses bomber planes belonging to Russia’s strategic nuclear forces.

    “The Kyiv regime, in order to disable Russian long-range aircraft, made attempts to strike with Soviet-made unmanned jet aerial vehicles at the military airfields Dyagilevo, in the Ryazan region, and Engels, in the Saratov region,” the Russian defence ministry said.

    It said the drones, flying at low altitude, were intercepted by air defences and shot down. The deaths were reported on the Ryazan base, 185 km (115 miles) southeast of Moscow.

    The Russian defence ministry called the drone strikes a terrorist act aimed at disrupting its long-range aviation.

    Despite that, it said, Russia responded with a “massive strike on the military control system and related objects of the defences complex, communication centres, energy and military units of Ukraine with high-precision air- and sea-based weapons” in which it said all 17 designated targets were hit.

    Ukraine’s air force said it downed over 60 of more than 70 missiles fired by Russia on Monday – the latest in weeks of attacks targeting its critical infrastructure that have cut off power, heat and water to many parts of the country.

    “Our guys are awesome,” Andriy Yermak, head of the Ukrainian presidential staff, wrote on Telegram.

    Kyiv’s forces have also demonstrated an increasing ability to hit strategic Russian targets far beyond the 1,100 km-long frontline in south and eastern Ukraine.

    Saratov is at least 600 km from the nearest Ukrainian territory. Russian commentators said on social media that if Ukraine could strike that far inside Russia, it might also be capable of hitting Moscow.

    Previous mysterious blasts damaged arms stores and fuel depots in regions near Ukraine and knocked out at least seven warplanes in Crimea, the Black Sea peninsula annexed by Russia from Ukraine in 2014.

    President Vladimir Putin drove a Mercedes across the bridge linking southern Russia to Crimea on Monday, less than two months since that, too, was hit by an explosion.

    Kyiv has not claimed responsibility for any of the blasts, saying only that they were “karma” for Russia’s invasion.

    “If something is launched into other countries’ air space, sooner or later unknown flying objects will return to (their) departure point,” Ukrainian presidential adviser Mykhailo Podolyak tweeted, tongue in cheek, on Monday.

    MISSILE FRAGMENTS HIT MOLDOVA

    Moscow has been hitting Ukraine’s energy infrastructure roughly weekly since early October as it has been forced to retreat on some battlefronts.

    This time, police in Moldova were reported to have found missile fragments on its soil near the border with Ukraine.

    In the Zaporizhzhia region, at least two people were killed and several houses destroyed, the deputy head of the presidential office, Kyrylo Tymoshenko, said.

    Missiles also hit energy facilities in the regions of Kyiv and Vinnytsia in central Ukraine, Odesa in the south and Sumy in the north, officials said.

    Forty percent of the Kyiv region had no electricity, regional governor Oleksiy Kuleba said, praising the work of Ukrainian air defences.

    Ukraine had only just returned to scheduled power outages from Monday rather than the emergency blackouts it has suffered since widespread Russian strikes on Nov. 23, the worst of the attacks on energy infrastructure that began in early October.

    Russia has said the barrages are designed to degrade Ukraine’s military. Ukraine says they are clearly aimed at civilians and thus constitute a war crime.

    WESTERN PRICE CAP ON RUSSIAN OIL

    A $60 per barrel price cap on Russian seaborne crude oil took effect on Monday, the latest Western measure to punish Moscow over its invasion. Russia is the world’s second-largest oil exporter.

    The agreement allows Russian oil to be shipped to third-party countries using tankers from G7 and European Union member states, insurance companies and credit institutions, only if the cargo is bought at or below the $60 per barrel cap.

    Moscow has said it will not abide by the measure even if it has to cut production. Ukraine wants the cap set lower: Zelenskiy said $60 was too high to deter Russia’s assault.

    A Russian oil blend was selling for around $79 a barrel in Asian markets on Monday – almost a third higher than the price cap, according to Refinitiv data and estimates from industry sources.

    Reporting by Nick Starkov and Reuters bureaus; Writing by Philippa Fletcher and Mark Heinrich; Editing by Peter Graff and Angus MacSwan

    Our Standards: The Thomson Reuters Trust Principles.

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  • Putin discusses West’s oil price cap with Iraqi leader – Kremlin

    Putin discusses West’s oil price cap with Iraqi leader – Kremlin

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    Nov 24 (Reuters) – Russian President Vladimir Putin on Thursday discussed Western attempts to cap the price of Russian oil during a phone call with Mohammed Shia al-Sudani, the new Iraqi prime minister, the Kremlin said in a readout of the call.

    It said Putin had told Sudani that a price cap would have serious consequences for the global energy market.

    “Attempts by a number of Western countries to impose restrictions on the cost of crude oil from Russia were touched upon,” the Kremlin’s statement said.

    “Vladimir Putin stressed that such actions contradict the principles of market relations and are highly likely to lead to serious consequences for the global energy market.”

    The European Union and United States have stepped up attempts in recent days to strike an agreement on where to set a price cap on their imports of Russian oil.

    Russia and Iraq are both major oil producers and members of the OPEC+ agreement, which sets oil production levels in a bid to manage world prices.

    Writing by Jake Cordell; Editing by Kevin Liffey

    Our Standards: The Thomson Reuters Trust Principles.

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  • Exclusive: Russians, Ukrainians met in UAE to discuss prisoner swap, ammonia, sources say

    Exclusive: Russians, Ukrainians met in UAE to discuss prisoner swap, ammonia, sources say

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    RIYADH, Nov 24 (Reuters) – Representatives from Russia and Ukraine met in the United Arab Emirates last week to discuss the possibility of a prisoner-of-war swap that would be linked to a resumption of Russian ammonia exports, which go to Asia and Africa, via a Ukrainian pipeline, three sources with knowledge of the meeting said.

    The sources said the talks were being mediated by the Gulf Arab state and did not include the United Nations despite the U.N.’s central role in negotiating the ongoing initiative to export agricultural products from three Ukrainian Black Sea ports. Ammonia is used to make fertilizer.

    However the talks aim to remove remaining obstacles in the initiative extended last week and ease global food shortages by unblocking Ukrainian and Russian exports, they added.

    The sources asked not to be named in order to freely discuss sensitive matters.

    The Russian and Ukrainian representatives travelled to the UAE capital Abu Dhabi on Nov. 17 where they discussed allowing Russia to resume ammonia exports in exchange for a prisoner swap that would release a large number of Ukrainian and Russian prisoners, the sources said.

    Reuters could not immediately establish what progress was made at the talks.

    The Ukrainian ambassador to Turkey, Vasyl Bodnar, told Reuters that “releasing our prisoners of war is part of negotiations over opening Russian ammonia exports”, adding “Of course we look for ways to do that at any opportunity”. Bodnar said he was unaware if a meeting took place in the UAE.

    Putin said on Wednesday that Russian officials would work to unblock Russian fertilisers stuck in European ports and to resume ammonia exports.

    The UAE’s foreign ministry did not respond to Reuters’ request for comment.

    Lana Nusseibeh, UAE’s Assistant Minister of Foreign Affairs and International Cooperation, said Abu Dhabi remains firmly committed to help keep channels of communication open, encourage dialogue and support diplomacy to end the war in Ukraine.

    “In times of conflict, our collective responsibility is to leave no stone unturned towards identifying and pursuing paths that bring about a peaceful and swift resolution of crises,” Nusseibeh said in a statement carried by state news agency WAM.

    Russia and Ukraine’s defence and foreign ministries did not respond to Reuters’ requests for comment.

    Asked if the United Nations were involved in the talks, a spokesperson for the organisation declined to comment.

    WESTERN PRESSURE

    The export of Russian ammonia would be via an existing pipeline to the Black Sea.

    The pipeline was designed to pump up to 2.5 million tonnes of ammonia gas per year from Russia’s Volga region to Ukraine’s Black Sea port of Pivdennyi, known as Yuzhny in Russian, near Odesa for onward shipment to international buyers. It was shut down after Russia sent its troops into Ukraine on Feb. 24.

    The export of ammonia was not part of the renewal of the U.N.-backed grains corridor deal that restored commercial shipping from Ukraine.

    Last week, Rebeca Grynspan, Secretary-General of U.N. agency UNCTAD, who leads the negotiations on fertiliser, said she was optimistic Russia and Ukraine could agree to the terms for the export of Russian ammonia via the pipeline, without giving details.

    Ukraine’s President Volodymyr Zelenskiy has publicly set several conditions before allowing Russia to resume its ammonia exports via the pipeline, including a prisoner swap and reopening of Mykolaiv port in the Black Sea.

    Neither Russia nor Ukraine have released official figures on how many prisoners of war they have taken since Russia invaded in February. On Oct. 29, Ukrainian President Volodymr Zelenskiy said that since March, Russia had freed a total of 1,031 prisoners.

    Russia and Ukraine have disclosed few details about direct meetings between representatives from the two countries following the abandonment of ceasefire talks in the first few weeks following Moscow’s invasion on February 24.

    Abu Dhabi’s efforts follow in the footsteps of Saudi Arabia, which scored a diplomatic win by securing freedom for foreign fighters captured in Ukraine in September.

    The UAE, like Saudi Arabia, is a member of the OPEC+ oil alliance that includes Russia and has also maintained good ties with Moscow despite Western pressure to help isolate Russia over the invasion of Ukraine, which Moscow calls its “special military operation”.

    UAE President Mohammed bin Zayed al-Nahyan visited Moscow last month where he discussed with President Vladimir Putin the possibility of Abu Dhabi mediating for an ammonia deal, two of the sources said.

    Ukraine is a major producer of grains and oilseeds. Russia is the world’s largest wheat exporter and a major supplier of fertilisers to global markets.

    Since July, Moscow has repeatedly said its shipments of grain and fertilisers, though not directly targeted by sanctions, are constrained because sanctions make it harder for exporters to process payments or to obtain vessels and insurance.

    Reporting by Aziz El Yaakoubi in Riyadh, Pavel Polityuk in Kiev and Jonathan Saul in London, additional reporting by Jonathan Spicer; Editing by Frank Jack Daniel and Jon Boyle

    Our Standards: The Thomson Reuters Trust Principles.

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  • Biden and Xi clash over Taiwan in Bali but Cold War fears cool

    Biden and Xi clash over Taiwan in Bali but Cold War fears cool

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    • Biden, Xi meet for 3 hours before G20
    • Both leaders stress need to get ties back on track
    • Indonesia seeks partnerships on global economy at G20
    • Ukraine’s Zelenskiy to address G20 on Tuesday

    NUSA DUA, Indonesia, Nov 14 (Reuters) – U.S. President Joe Biden and Chinese President Xi Jinping engaged in blunt talks over Taiwan and North Korea on Monday in a three-hour meeting aimed at preventing strained U.S.-China ties from spilling into a new Cold War.

    Amid simmering differences on human rights, Russia’s invasion of Ukraine, and support of domestic industry, the two leaders pledged more frequent communications. U.S. Secretary of State Antony Blinken will travel to Beijing for follow-up talks.

    “We’re going to compete vigorously. But I’m not looking for conflict, I’m looking to manage this competition responsibly,” Biden said after his talks with Xi on the sidelines of the G20 summit in Indonesia.

    Beijing has long said it would bring the self-governed island of Taiwan, which it views as an inalienable part of China, under its control and has not ruled out the use of force to do so. It has frequently accused the United States in recent years of encouraging Taiwan independence.

    In a statement after their meeting, Xi called Taiwan the “first red line” that must not be crossed in U.S.-China relations, Chinese state media said.

    Biden said he sought to assure Xi that U.S. policy on Taiwan, which has for decades been to support both Beijing’s ‘One China’ stance and Taiwan’s military, had not changed.

    He said there was no need for a new Cold War, and that he did not think China was planning a hot one.

    “I do not think there’s any imminent attempt on the part of China to invade Taiwan,” he told reporters.

    On North Korea, Biden said it was hard to know whether Beijing had any influence over Pyongyang weapons testing. “Well, first of all, it’s difficult to say that I am certain that China can control North Korea,” he said.

    Biden said he told Xi the United States would do what it needs to do to defend itself and allies South Korea and Japan, which could be “maybe more up in the face of China” though not directed against it.

    “We would have to take certain actions that would be more defensive on our behalf… to send a clear message to North Korea. We are going to defend our allies, as well as American soil and American capacity,” he said.

    Biden’s national security adviser Jake Sullivan said before the meeting that Biden would warn Xi about the possibility of enhanced U.S. military presence in the region, something Beijing is not keen to see.

    Beijing had halted a series of formal dialogue channels with Washington, including on climate change and military-to-military talks, after U.S. House of Representatives Speaker Nancy Pelosi upset China by visiting Taiwan in August.

    Biden and Xi agreed to allow senior officials to renew communication on climate, debt relief and other issues, the White House said after they spoke.

    Xi’s statement after the talks included pointed warnings on Taiwan.

    “The Taiwan question is at the very core of China’s core interests, the bedrock of the political foundation of China-U.S. relations, and the first red line that must not be crossed in China-U.S. relations,” Xi was quoted as saying by Xinhua news agency.

    “Resolving the Taiwan question is a matter for the Chinese and China’s internal affair,” Xi said, according to state media.

    Taiwan’s democratically elected government rejects Beijing’s claims of sovereignty over it.

    Taiwan’s presidential office said it welcomed Biden’s reaffirmation of U.S. policy. “This also once again fully demonstrates that the peace and stability of the Taiwan Strait is the common expectation of the international community,” it said.

    SMILES AND HANDSHAKES

    Before their talks, the two leaders smiled and shook hands warmly in front of their national flags at a hotel on Indonesia’s Bali island, a day before a Group of 20 (G20) summit set to be fraught with tension over Russia’s invasion of Ukraine.

    “It’s just great to see you,” Biden told Xi, as he put an arm around him before their meeting.

    Biden brought up a number of difficult topics with Xi, according to the White House, including raising U.S. objections to China’s “coercive and increasingly aggressive actions toward Taiwan,” Beijing’s “non-market economic practices,” and practices in “Xinjiang, Tibet, and Hong Kong, and human rights more broadly.”

    Neither leader wore a mask to ward off COVID-19, although members of their delegations did.

    U.S.-China relations have been roiled in recent years by growing tensions over issues ranging from Hong Kong and Taiwan to the South China Sea, trade practices, and U.S. restrictions on Chinese technology.

    But U.S. officials said there have been quiet efforts by both Beijing and Washington over the past two months to repair relations.

    U.S. Treasury Secretary Janet Yellen told reporters in Bali earlier that the meeting aimed to stabilise the relationship and to create a “more certain atmosphere” for U.S. businesses.

    She said Biden had been clear with China about national security concerns regarding restrictions on sensitive U.S. technologies and had raised concern about the reliability of Chinese supply chains for commodities.

    G20 summit host President Joko Widodo of Indonesia said he hoped the gathering on Tuesday could “deliver concrete partnerships that can help the world in its economic recovery”.

    However, one of the main topics at the G20 will be Russia’s war in Ukraine.

    Xi and Putin have grown close in recent years, bound by their shared distrust of the West, and reaffirmed their partnership just days before Russia invaded Ukraine. But China has been careful not to provide any direct material support that could trigger Western sanctions against it.

    Reporting by Nandita Bose, Stanley Widianto, Fransiska Nangoy, Leika Kihara, David Lawder and Simon Lewis in Nusa Dua, and Yew Lun Tian and Ryan Woo in Beijing; additional reporting by Jeff Mason and Steve Holland in Washington; Writing by Kay Johnson and Raju Gopalakrishnan; Editing by Angus MacSwan, Grant McCool, Heather Timmons and Rosalba O’Brien

    Our Standards: The Thomson Reuters Trust Principles.

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  • EXCLUSIVE G7 coalition has agreed to set fixed price for Russian oil -sources

    EXCLUSIVE G7 coalition has agreed to set fixed price for Russian oil -sources

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    WASHINGTON/LONDON, Nov 4 (Reuters) – The Group of Seven rich nations and Australia have agreed to set a fixed price when they finalize a price cap on Russian oil later this month, rather than adopting a floating rate, sources said on Thursday.

    U.S. officials and G7 countries have been in intense negotiations in recent weeks over the unprecedented plan to put a price cap on sea-borne oil shipments, which is scheduled to take effect on Dec. 5 – to ensure EU and U.S. sanctions aimed at limiting Moscow’s ability to fund its invasion of Ukraine do not throttle the global oil market.

    “The Coalition has agreed the price cap will be a fixed price that will be reviewed regularly rather than a discount to an index,” said a coalition source, who was not authorized to speak publicly. “This will increase market stability and simplify compliance to minimize the burden on market participants.”

    The initial price itself has not been set, but should be in coming weeks, multiple sources said. Coalition partners agreed to regularly review the fixed price and revise it as needed, the source said, without disclosing further details.

    Pegging the price as a discount to some index would have resulted in too much volatility and potential price swings, the source added.

    The coalition worried that a floating price pegged below the Brent international benchmark might enable Russian President Vladimir Putin to game the mechanism by reducing supply, a second source with knowledge of the discussions said.

    Putin could benefit from a floating price system because the price for his country’s oil would also rise if Brent spiked due to a cut in oil from Russia, one of the world’s largest petroleum producers. The downside of the agreed fixed price system is that it will require more meetings of the coalition and bureaucracy to review it regularly, the source said.

    U.S. Treasury Secretary Janet Yellen and other G7 officials argue the price cap, set to begin Dec. 5 on crude and Feb. 5 on oil products, will squeeze funding to Russia without cutting supply to consumers. Russia has said it will refuse to ship oil to countries that set price caps.

    Shipping services are eager to see more details about the G7 plan which is due to take effect in a month.

    A steady price cap could enable insurers to more confidently roll over contracts and initiate new ones without fear that the price could be adjusted by the countries buying Russian oil, which could have potentially exposed insurers to sanctions.

    No immediate comment was available from Treasury or the embassies of coalition members, which include the G7 rich nations, the European Union and Australia.

    Separately, The Wall Street Journal reported on Friday that the United States and its allies had agreed on further details on which sales of Russian oil will face the price cap.

    Each load of seaborne Russian oil will only be subject to the price cap when first sold to a buyer on land, the countries determined. Reuters could not immediately verify the report which cited people familiar with the matter.

    Reporting by Andrea Shalal and Timothy Gardner in Washington and Noah Browning in London; editing by Heather Timmons and Matthew Lewis

    Our Standards: The Thomson Reuters Trust Principles.

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  • Biden vows to ‘free Iran’ in West Coast campaign speech

    Biden vows to ‘free Iran’ in West Coast campaign speech

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    OCEANSIDE, Calif., Nov 3 (Reuters) – U.S. President Joe Biden on Thursday vowed to “free” Iran, and said that demonstrators working against the country’s government would soon succeed in freeing themselves.

    “Don’t worry, we’re gonna free Iran. They’re gonna free themselves pretty soon,” Biden said during a wide-ranging campaign speech in California, as dozens of demonstrators gathered outside holding banners supporting Iranian protesters.

    Biden did not expand on his remarks or specify what additional actions he would take during the remarks at MiraCosta College near San Diego.

    The White House’s National Security Council did not immediately respond to a request for comment.

    U.S. President Joe Biden speaks during a campaign fundraising event for U.S. Rep. Mike Levin (D-CA) in San Diego, California, U.S., November 3, 2022. REUTERS/Kevin Lamarque

    Seven weeks of demonstrations in Iran were ignited by the death of a 22-year-old woman, Mahsa Amini, in the custody of Iran’s morality police.

    The protests triggered by Amini’s death on Sept. 16 have shown the defiance of many young Iranians in challenging the clerical leadership, overcoming fear that has stifled dissent in the wake of the 1979 Islamic Revolution. read more

    The United States on Wednesday said it will try to remove Iran from the 45-member U.N. Commission on the Status of Women (CSW) over the government’s denial of women’s rights and brutal crackdown on protests. read more

    Iran is just starting a four-year term on the commission, which meets annually every March and aims to promote gender equality and the empowerment of women.

    Reporting by Trevor Hunnicutt, writing by Andrea Shalal; Editing by Stephen Coates

    Our Standards: The Thomson Reuters Trust Principles.

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  • Saudi Arabia ‘maturer guys’ in spat with U.S., energy minister says

    Saudi Arabia ‘maturer guys’ in spat with U.S., energy minister says

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    • OPEC+ oil output cut led to U.S., Saudi spat
    • Saudi Arabia and U.S. “solid allies” – minister
    • Big Wall St turnout at flagship Saudi investment summit

    RIYADH, Oct 25 (Reuters) – Saudi Arabia decided to be the “maturer guys” in a spat with the United States over oil supplies, the kingdom’s energy minister Prince Abdulaziz bin Salman said on Tuesday.

    The decision by the OPEC+ oil producer group led by Saudi Arabia this month to cut oil output targets unleashed a war of words between the White House and Riyadh ahead of the kingdom’s Future Investment Initiative (FII) forum, which drew top U.S. business executives.

    The two traditional allies’ relationship had already been strained by the Joe Biden administration’s stance on the 2018 murder of Saudi journalist Jamal Khashoggi and the Yemen war, as well as Riyadh’s growing ties with China and Russia.

    When asked at the FII forum how the energy relationship with the United States could be put back on track after the cuts and with the Dec. 5 deadline for the expected price-cap on Russian oil, the Saudi energy minister said: “I think we as Saudi Arabia decided to be the maturer guys and let the dice fall”.

    “We keep hearing you ‘are with us or against us’, is there any room for ‘we are with the people of Saudi Arabia’?”

    Saudi Investment Minister Khalid al-Falih said earlier that Riyadh and Washington will get over their “unwarranted” spat, highlighting long-standing corporate and institutional ties.

    “If you look at the relationship with the people side, the corporate side, the education system, you look at our institutions working together we are very close and we will get over this recent spat that I think was unwarranted,” he said.

    While noting that Saudi Arabia and the United States were “solid allies” in the long term, he highlighted the kingdom was “very strong” with Asian partners including China, which is the biggest importer of Saudi hydrocarbons.

    The OPEC+ cut has raised concerns in Washington about the possibility of higher gasoline prices ahead of the November U.S. midterm elections, with the Democrats trying to retain their control of the House of Representatives and the Senate.

    Biden pledged that “there will be consequences” for U.S. relations with Saudi Arabia after the OPEC+ move.

    Princess Reema bint Bandar Al Saud, the kingdom’s ambassador to Washington, said in a CNN interview that Saudi Arabia was not siding with Russia and engages with “everybody across the board”.

    “And by the way, it’s okay to disagree. We’ve disagreed in the past, and we’ve agreed in the past, but the important thing is recognizing the value of this relationship,” she said.

    She added that “a lot of people talk about reforming or reviewing the relationship” and said that was “a positive thing” as Saudi Arabia “is not the kingdom it was five years ago.”

    FULL ATTENDENCE AT FII

    Like previous years, the FII three-day forum that opened on Tuesday saw a big turnout from Wall Street, as well as other industries with strategic interests in Saudi Arabia, the world’s top oil exporter.

    JPMorgan Chase & Co Chief Executive Jamie Dimon, speaking at the gathering, voiced confidence that Saudi Arabia and the United States would safeguard their 75-year-old alliance.

    “I can’t imagine any allies agreeing on everything and not having problems – they’ll work it through,” Dimon said. “I’m comfortable that folks on both sides are working through and that these countries will remain allies going forward, and hopefully help the world develop and grow properly.”

    The FII is a showcase for the Saudi crown prince’s Vision 2030 development plan to wean the economy off oil by creating new industries that also generate jobs for millions of Saudis, and to lure foreign capital and talent.

    No Biden administration officials were visible at the forum on Tuesday. Jared Kushner, a former senior aide to then-President Donald Trump who enjoyed good ties with Prince Mohammed, was featured as a front-row speaker.

    The Saudi government invested $2 billion with a firm incorporated by Kushner after Trump left office.

    FII organisers said this year’s edition attracted 7,000 delegates compared with 4,000 last year.

    After its inaugural launch in 2017, the forum was marred by a Western boycott over Khashoggi’s killing by Saudi agents. It recovered the next year, attracting leaders and businesses with strategic interests in Saudi Arabia, after which the pandemic hit the world.

    Reporting by Aziz El Yaakoubi, Hadeel Al Sayegh and Rachna Uppal in Riyadh and Nadine Awadalla, Maha El Dahan and Yousef Saba in Dubai; Writing by Ghaida Ghantous and Michael Geory; Editing by Louise Heavens, Mark Potter, Vinay Dwivedi, William Maclean

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  • Germany’s Scholz calls for bigger European Union

    Germany’s Scholz calls for bigger European Union

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    BERLIN, Oct 15 (Reuters) – German Chancellor Olaf Scholz on Saturday called for an expanded European Union, telling a gathering of European social democrats that it would then be able to better pull its weight in global affairs.

    Since assuming office, Scholz has made European Union expansion to include the Balkans and others nations a major plank of his foreign policy. It has taken on more urgency since Russia’s invasion of Ukraine, which became a candidate for EU membership early this summer.

    “An EU with 27, 30, 36 states, with then more than 500 million free and equal citizens, can bring its weight to bear even more strongly in the world,” Scholz said at the congress.

    The EU currently has 27 members.

    “I am committed to the enlargement of the EU. That the EU continues to grow eastward is a win-win for all of us,” he said.

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    Reporting by Andreas Rinke; writing by Tom Sims, editing by William Maclean

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  • Biden disappointed by ‘shortsighted’ OPEC+ cut, more SPR releases possible

    Biden disappointed by ‘shortsighted’ OPEC+ cut, more SPR releases possible

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    WASHINGTON, Oct 5 (Reuters) – President Joe Biden called on his administration and Congress to explore ways to boost U.S. energy production and reduce OPEC’s control over energy prices after the cartel’s “shortsighted” production cut, the White House said on Wednesday.

    The Saudi Arabia-led OPEC+ cartel at a Vienna meeting on Wednesday ignored pleas from the White House to keep oil flowing and agreed to cut output by 2 million barrels per day, its deepest cuts in production since the 2020 COVID-19 pandemic.

    The move drew a sharp response from Biden that underscores the growing rift between the United States and Saudi Arabia on energy policy.

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    “The President is disappointed by the shortsighted decision by OPEC+ to cut production quotas while the global economy is dealing with the continued negative impact of (Russian President Vladimir) Putin’s invasion of Ukraine,” national security adviser Jake Sullivan and National Economic Council Director Brian Deese said in a statement.

    Biden warned that he will now continue to direct releases from the nation’s Strategic Petroleum Reserve “as necessary,” a shift from the White House’s previous comments that it would end the drawdown in the coming weeks.

    Earlier this year, the Biden administration announced the largest sale ever from the reserve: 180 million barrels for six months beginning in May. Last month it extended that historic sale into November as only about 155 million barrels had been sold. It now aims to sell 165 million through November.

    As a result, the amount of oil in the reserve has fallen to the lowest level since July 1984. It now holds about 416 million barrels of oil, well above what the United States is required by its membership in the International Energy Agency, at sites on the Texas and Louisiana coasts.

    Rising oil and fuel prices are a risk to Biden’s fellow Democrats as they seek to keep control of Congress in the Nov. 8 midterm elections.

    Biden also pledged to consult with Congress on additional tools to cut OPEC’s control over energy prices, a potential reference to a decades-long effort to open the cartel to antitrust lawsuits for orchestrating supply cuts.

    The so-called NOPEC bill, which has brought up numerous times over the past 20 years but never enacted, easily passed a Senate committee in May.

    The White House has previously expressed concerns about unintended consequences of the bill.

    The White House is also worried about the cut cementing Saudi Arabia’s closer cooperation with Russia, also a member of OPEC+, as oil revenues fund Moscow’s war machine in Ukraine.

    “Look it’s clear that OPEC Plus is aligning with Russia with today’s announcement,” White House spokesperson Karine-Jean Pierre told reporters aboard Air Force One on Wednesday.

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    Reporting by Susan Heavey and Jarrett Renshaw; editing by Tim Ahmann and David Gregorio

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