Yevgeny Prigozhin, the head of the Russian mercenary group known as Wagner, has claimed that his fighters have seized the city of Bakhmut in eastern Ukraine. However, the Ukrainian military has denied the claim, insisting that battles continue to be fought in the region. The seizure of Bakhmut, which was initially believed to have a population of over 70,000, has taken on significant symbolic value in Russia’s ongoing conflict in the region.
US cities with military bases risk economic damage in debt ceiling fight
CNN
23-05-20 14:00
US cities with large military bases could experience a significant economic fallout if the US defaults on its debt within two weeks, which would mean the government would be unable to meet its financial obligations. Over a sixth of government spending is dedicated to national defence, which encompasses salaries to federal workers and payments to social security recipients. If the country is unable to pay its national defence bills, cities with large military bases would potentially experience missed payments and rising debt, as well as a significant pullback in spending, which would cut local businesses’ bottom lines.
White House and Republican negotiators failed to make progress in raising the federal debt ceiling after a second meeting broke up late on Friday. US Treasury has warned that the federal government could be unable to pay all its debts from 1 June, potentially triggering a default which could cause financial chaos and spike interest rates. Republicans want sharp spending cuts in exchange for increasing the federal government's borrowing limit, while Democrats want to keep spending steady at this year's levels, with a wide swathe of government spending being cut by at least 8% next year.
The chief of Russian mercenary group Wagner, Yevgeny Prigozhin, claimed on 12 June that his fighters had captured Bakhmut, Donetsk Oblast, in eastern Ukraine. However, the Ukrainian military denied the claim, saying that fighting was ongoing in the city. An extended battle has been fought over Bakhmut, which is the longest and bloodiest confrontation of Russia's war in Ukraine so far. Prigozhin repeated allegations that he had previously made, saying that his troops suffered excessively due to a lack of support from Moscow. He also threatened earlier this month to withdraw his fighters, blaming Defense Minister Sergei Shoigu for the high death rate among his troops due to inadequate support.
The Group of Seven (G7) summit held in Hiroshima this week has focused on the Ukraine crisis, as well as the growth of China and the associated rising threat to Taiwan. The discussions have incorporated a range of issues, including energy and economic security and supply chains. The attendance of nations such as India, Indonesia, Vietnam and Australia has ensured a focus on developing countries. Earlier this week, speaking at the summit, Indian Prime Minister Narendra Modi suggested that the creation of a system focused on food security, particularly for “marginal farmers” must be given priority, and suggested that there was a need to strengthen global “fertilizer supply chains” while curtailing “the expansionist mindset controlling fertilizer resources.” The summit has also covered artificial intelligence, nuclear weapons and non-proliferation, and climate change. It had been hoped that discussion of global health issues would also feature. The G7 comprises Canada, France, Germany, Italy, Japan, the UK and the US. The summit concludes today.
Negotiations between the White House and House Republicans over raising the borrowing limit came to a standstill heading into a weekend during which US President Joe Biden was attending a meeting of global leaders in Japan. The sides face a deadline as soon as 1 June to raise the spending limit, with Republicans demanding spending cuts the Democrats oppose. Talks briefly resumed on Saturday morning only to be interrupted later in the day. The market soured as negotiations hit pause, with experts warning that even the threat of a debt default could spark a recession.
Russian private army Wagner has claimed that it has captured Bakhmut in the east of Ukraine. However, this was dismissed as inaccurate by Ukrainian officials who stated that fighting within the city is ongoing, with scraps of land still under Ukrainian control. Heavy fighting resulted in the destruction of large parts of Bakhmut, where the longest and costliest battle of the almost 15-month long Russian-Ukrainian conflict occurred. Russian head of Wagner, Yevgeny Prigozhin, reportedly taunted Ukrainian President Volodymyr Zelenskyy and President Joe Biden by saying "kiss [Biden] on the top of his head, say hi to him from me."
Japan, India, Australia and the US have pledged to create a resilient and well-connected Indo-Pacific, launching a series of initiatives while looking to establish an area “free from coercion” on the sidelines of the Hiroshima Group of Seven summit. The announcements, which came amid growing concerns over China’s influence in the region, include support for their own undersea network of cables for what the group called “trusted and secure” communications services, and scholarships aimed at bolstering infrastructure. In addition, the new initiatives include a health security partnership, while the Indo-Pacific Partnership for Maritime Domain Awareness will be expanded. While Beijing has derided the grouping as an Asian version of Nato, it is a broader partnership that includes infrastructure, health and climate cooperation.
Russian Deputy Foreign Minister Alexander Grushko has warned against the possibility of the West supplying Ukraine with F-16 fighter jets, saying that the decision carries “colossal risks”. Ukraine has long sought these more advanced aircraft to replace its obsolete Soviet-era fleet, while Western countries have been holding back in their support because it risks escalating its tensions with Russia. The US President has now said the US will support a joint effort with allies to train Ukrainian pilots on F-16s.
The Quad alliance, consisting of the US, India, Japan, and Australia, is to expand its remit to boost infrastructure development and telecommunications networks in the Asia-Pacific area, according to an announcement by the four prime ministers. The group's new focus represents an attempt to neutralise China’s growing influence in the region, especially the $1tn Belt and Road Initiative. The leaders also pledged to place the interests of southeast Asian nations and the Pacific Islands at the centre of their strategies, amidst criticism from Beijing of the grouping as elitist and disconnected from developing countries.
The UK government has promised that its support for Ukraine will “never waver” after Chancellor Rishi Sunak met Ukrainian president Volodymyr Zelensky during the G7 summit in Hiroshima. Sunak updated Zelensky with “very positive progress” on fighting jets, which the US has approved for donation to the Ukrainian military. Zelensky expressed confidence that “peace will become closer today”. The G7 leaders endorsed continued support for Ukraine and vowed to raise the costs for those involved on Russia’s side of the conflict, as well as criticising China for its aggression towards Taiwan. Russian deputy foreign minister Alexander Grushko warned the “escalation” carries “enormous risks” for the countries involved, while Defence Secretary Ben Wallace claimed it underlined “how serious this situation still is”. The UK has supplied Ukraine with equipment including Challenger tanks and long-range missiles.
Leaders of the Quad group – Australia, India, Japan and the United States – have criticised China's actions in a thinly veiled swipe at Beijing. While attending a summit in Hiroshima, the leaders referenced Beijing's economic tactics to gain leverage over poorer countries and its military expansion in the Pacific by emphasising "peace and stability in the Indo-Pacific maritime domain.” In a joint statement, they criticised "unilateral actions that seek to change the status quo by force or coercion", and expressed concern over the "militarisation of disputed features" and maritime harassment. They also called attention to the urgent need to support undersea cable networks.
US President Joe Biden is set to meet with Ukrainian President Volodymyr Zelenskiy on Sunday and also hold a joint meeting with the leaders of South Korea and Japan, according to a US official. The three countries are expected to discuss deepening three-way ties, including military "interoperability," and the economic "coercion" they face from China. The official also said that Washington hopes Beijing will use its influence to end Russia's war in Ukraine.
Leaders from the G7 countries will end their festivities in Hiroshima centred on Russia and managing China following Ukrainian President Volodymyr Zelensky's appearance. The western leaders used the forums to implement new sanctions against Russia while increasing cash flow to the Ukrainian military. The talk will transition to China as the most robust Asian ally of Russia, as the leaders implicitly remind President Xi Jinping that if he bullies them or changes the status quo in self-ruled Taiwan or the disputed South China Sea, China will experience the same resolve as Russia's attempt to redraw Ukraine's borders.
Australian Prime Minister Anthony Albanese has indicated that he plans to improve relations with China, despite trade sanctions and the detention of two Australians. Albanese has not yet confirmed a date for his visit to Beijing, but said that “Australia is in dialogue with China. You need dialogue to get understanding.” Australia's federal opposition urged him to delay his trip until China lifts trade restrictions, including those on wine and barley. Former US secretary of state Hillary Clinton recently praised Australia's role in forcing China to “re-evaluate” its position in the Asia Pacific region.
The leaders of Japan and South Korea have laid flowers at a memorial for Korean atomic bomb victims in Hiroshima. This move follows steps by South Korean President Yoon Suk Yeol to resolve the countries' disputes over Japan's 1910-1945 colonial occupation of the Korean Peninsula, in order to work more closely with the US to avoid threats from North Korea. Japan is seen as using the joint visit by Kishida and Yoon to acknowledge historical relations between the countries and highlight the devastating effects of nuclear war.
President Joe Biden and Republican leaders are struggling to reach an agreement to increase the nation’s debt limit, a decision that is quickly approaching. The Republican party is demanding sweeping spending cuts, a move that the Democrats have deemed too severe. However, the two parties have until 1 June to come to a decision before the country is at risk of a catastrophic federal default. Any bargains must gain the approval of both the Republicans and Democrats before they come into force. Nancy Pelosi, the Speaker of the United States House of Representatives, warned on Friday that such failure would plunge the country into "a Republican-made disaster," destroying the economy.
The White House and Republicans have engaged in mutual recrimination over proposals to raise the US debt limit, with Republican House Speaker Kevin McCarthy claiming the White House has backtracked in talks. It is believed that agreement is needed this week for the government to keep making payments, while Treasury Secretary Janet Yellen has warned payments could stop from 1 June. Stocks fell on Friday after the Republicans walked out of talks. McCarthy said he doesn't expect any progress until President Joe Biden returns in person from the G7 summit. The Democrats want to avoid making all of the spending cuts demanded by Republicans.
The US is set to sign agreements with Pacific island nations Palau and Micronesia, with hopes to do so with the Marshall Islands in the coming weeks. The new Compact of Free Association (COFA) accords are part of the US’ efforts to counter China’s influence in the Pacific. The US originally reached the COFAs with the three island states in the 1980s granting strategic access to the Pacific while, in return, Washington provided economic assistance and took on the responsibility of their defence. China has increased business in many Pacific island nations and is looking to expand its influence in the region.
Russia and China have criticised Group of Seven leaders in Hiroshima for their joint statement, following US President Joe Biden’s first in-person talks with Moscow’s Vladimir Putin days earlier in Geneva of working to “ensure predictability and stability” in world affairs amid “a new and challenging strategic landscape.” Moscow described the G7 statement as pushing the Ukraine war towards infliction of a strategic defeat upon Russia, while Beijing accused Washington of “coercive diplomacy,” claiming US sanctions against China and decoupling and disrupting industrial and supply chains made the US the real coercer. The G7 leaders pledged joint diplomatic, financial, humanitarian, and military support for Ukraine in the document. The statement also pledged they would “starve Russia of G7 technology, industrial equipment and services that support its war machine”, and that the G7 would continue to shield agricultural, medical and humanitarian products from the measures. Critics have accused the emerging rivalry between the G7 and China/Russia of creating two global blocks and a new Cold War, with third-world countries forced to take sides.
