The acting interior minister of Russia-controlled Ukraine's Luhansk area, Igor Kornet, was severely injured, along with seven others, when a grenade was thrown at a barbershop in Luhansk. Footage showed the interior of the shop was destroyed. Kornet, who is in a coma, is a high-profile figure who has primary responsibility for the security services in the area.
The possibility of the US defaulting on its debts makes world leaders “look at the US and see a damning portrait. In this broken system, many elected officials do not respect the results of a presidential election and permit policy and ideological differences to stand in the way of honouring the government’s financial obligations”, warns an op-ed in The Financial Times. The editorial notes that the US needs a long-term solution where debt ceiling theatrics are replaced with coherent long-term budgeting. It highlights the fact that efforts by Democratic presidents to lower prospective deficits in the past have merely allowed Republicans to slash taxes when they returned to power; and that the Republicans are using threats of default to achieve cuts in spending and taxes rather than in deficits, for which they have been unable to secure decisive electoral victories. This in turn, makes it increasingly more likely that the crash will eventually happen.
Russia has claimed to have destroyed a key US-supplied Patriot air defence system in Ukraine with a hypersonic Kinzhal missile. If verified, the news would come as a costly blow to Ukraine. However, Kiev says that it managed to down all six "unstoppable" Kinzhal missiles fired overnight. The six Kinzhals were among 18 ballistic missiles Russia launched right after its drone and missile volleys this month, which Ukraine has been widely shooting down. It was the first time Ukraine had claimed to have taken down a volley of multiple hypersonic missiles.
A conversation on Allied Burden Sharing in Ukraine, between the CSIS Project on Prosperity and Development and the CSIS Europe, Russia, and Eurasia Program, has discussed the role of European partners in supporting Ukraine. While the US is the world's largest financier of foreign aid and military assistance for Ukraine, the country's European partners are contributing similar amounts on a per capita basis, with the US ranking tenth overall. European burden-sharing has also been substantial on energy and trade, with the continent suffering from vulnerability to global market dynamics and reductions in energy consumption, and potential trade disruption in areas such as food. To ensure Ukraine emerges victorious, the US and Europe will need to collectively carry these burdens.
The EU’s high representative for foreign policy, Josep Borrell, has urged the European Union to take action to close a loophole that enables India to be a centre for Russian oil that is resold as refined fuels to Europe, violating sanctions on Russia following its invasion of Ukraine. India has emerged as a top purchaser of Russian oil in the past year, which has been rejected by western states such as the US and its allies. Access to cheap oil has enabled Indian refineries to boost profits by exporting refined fuel to Europe.
The effectiveness of international sanctions is being challenged as Russia, China and Iran implement alternative financial systems, which blunts the impact of US policies and allows them to hide questionable behaviour. While the alternative financial system is currently limited, more nations will enter Beijing's orbit as China's economy grows, and the alternatives to the dollar will rise in popularity. It is essential that the US revitalises domestic manufacturing and makes and keeps friends. The US must build a coalition of its own to balance Beijing’s growing anti-American coalition, and to keep the dollar as strong as possible.
The US Department of Commerce and Federal Bureau of Investigation have assembled a “technology strike force” to target countries deemed a threat to US national security. Officials are specifically targeting opaque networks channeling technology and goods from the US through international middlemen to undermine American sanctions or technological restrictions, and are tracing global movements of funds, goods, and data. The move follows the announcement on Tuesday that the Biden administration had brought charges as part of five cases of sanctions evasion and technology espionage involving Russia, China, and Iran. Oleg Patsyula and Vasilii Besedin were charged under accusations of supplying aircraft parts to Russia, contravening sanctions imposed after Russia’s invasion of Ukraine. A further case targeted Chinese companies which had secured the confidential technology of rival firm Apple, including in relation to its autonomous vehicle. In addition, a California-based engineer is accused of coordinating theft of source code for military aircraft and submarine parts to sell to Chinese companies.
The US State Department has condemned the arrest of former US mission employee Robert Shonov on allegations he illegally collaborated with foreigners, calling the claims "without merit". Shonov was employed by the US Consulate General locally in Vladivostok for more than 25 years before Russia ordered the termination of the local staff. He was then employed by a company contracted by the US embassy in Moscow. The US consulate in Vladivostok has been closed since 2020 amid worsening relations between Russia and the US.
A conversation on Allied Burden Sharing in Ukraine, between the CSIS Project on Prosperity and Development and the CSIS Europe, Russia, and Eurasia Program, has discussed the role of European partners in supporting Ukraine. While the US is the world's largest financier of foreign aid and military assistance for Ukraine, the country's European partners are contributing similar amounts on a per capita basis, with the US ranking tenth overall. European burden-sharing has also been substantial on energy and trade, with the continent suffering from vulnerability to global market dynamics and reductions in energy consumption, and potential trade disruption in areas such as food. To ensure Ukraine emerges victorious, the US and Europe will need to collectively carry these burdens.
The London Metal Exchange is making incremental progress in restoring investor confidence after the disruption caused to trading by the increase in nickel prices after the Russian invasion of Ukraine in 2016. CEO Matthew Chamberlain said the exchange had introduced measures, such as daily price limits, as well as introducing an "action plan" on 30 March. LME, owned by Hong Kong Exchanges and Clearing, will be hoping the two-year project will accelerate its advance into Asia.
Japan's GDP figures for the first quarter are set to be the highlight for Asian markets on Wednesday, with expectations of annualised growth of 0.7%, the fastest rate in three quarters, leading to Tokyo stocks opening up 0.2%. China's weaker than expected economic data for April has resulted in slumps across Chinese financial assets, with April house prices also due on Wednesday. Although offshore investors have a new scheme to link Hong Kong with the mainland in order to access interest rate derivatives to help hedge their Chinese bond exposure, concerns about debt demand have cast extra doubt over the yuan's ability to gain reserve currency status.
A survey by the UK’s Financial Conduct Authority showed the number of Britons failing to meet credit commitments or miss payments on domestic bills rose from 4.2 million to 5.6 million in the six months to January 2023 due to recession. Research highlighted the "real impact" of inflation, said Sheldon Mills from the FCA. Experts also warned households are facing the "convergence of higher living costs and higher interest rates" pushing personal finances "right to the edge and sometimes over". The watchdog has urged lenders to provide tailored support for those struggling to meet payments.
The register of damages created by a summit of the Council of Europe will record Russia's "harm and destruction" in Ukraine, with the aim of using it for future compensation. The register will hold the tangible costs Russia has demanded from Ukraine over the last 15 months. Ukraine's President Volodymyr Zelensky used a video address to the summit to call for more air defence systems and missiles, as the register was launched in The Hague. Zelensky received defence pledges from France, Germany and Britain but is unable to equip Ukraine with advanced fighter aircraft.
A conversation on Allied Burden Sharing in Ukraine, between the CSIS Project on Prosperity and Development and the CSIS Europe, Russia, and Eurasia Program, has discussed the role of European partners in supporting Ukraine. While the US is the world's largest financier of foreign aid and military assistance for Ukraine, the country's European partners are contributing similar amounts on a per capita basis, with the US ranking tenth overall. European burden-sharing has also been substantial on energy and trade, with the continent suffering from vulnerability to global market dynamics and reductions in energy consumption, and potential trade disruption in areas such as food. To ensure Ukraine emerges victorious, the US and Europe will need to collectively carry these burdens.
China is looking to Central Asia for a new energy partner source to offset growing tensions between it and the US-led West. Leaders from Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan join President Xi in China, where the main focus will be the joint projects between the nations aimed at pushing forward cooperation in other areas from the economy to security and politics. Beside abundant reserves of traditional fossil fuels, there is huge untapped hydropower potential in Tajikistan and Kyrgyzstan. Piped natural gas from Central Asia to China is traditionally considered to be more secure and cheaper than other countries, especially the US. Central Asia supplied over two-thirds of China's pipeline gas imports in 2017, with the bulk of it coming from Turkmenistan, which has the world's fourth-largest gas reserves after Qatar, Iran and Russia.
US President Joe Biden is expected to emphasise unity and Washington's dedication to the Asia-Pacific during his planned trip for the G7 Summit in Japan whilst navigating a delicate balance between countering China's economic coercion and avoiding further division among US allies. Biden also seeks to build a "little Nato" in Asia to contain Russia and China. While the G7 is expected to outline proposals on countering China's "economic coercion", it is important to not inflame nationalistic tendencies or put smaller countries in a difficult position where they become the target of coercive activities. The trick, according to experts, is to build more robust trade agreements, maritime security measures, and reinforcing supply chains rather than setting up divisions. China carried out 73 incidents of economic coercion aimed at 19 countries between 2020 and 2022, including trade sanctions, investment restrictions, tourism bans and popular boycotts.
UK businesses could benefit from hiring overseas workers as labour shortages continue to impact industries such as agriculture and hospitality, according to British Chambers of Commerce Director-General Shevaun Haviland. The government should adopt a “shortage occupation list” to secure the necessary labour, she suggested. Social care, fruit picking and meat processing also face labour shortages and the National Farmers' Union has called for a rolling five-year worker scheme to address the absence of seasonal workers on British farms.
Sam Altman, CEO of OpenAI, the company behind the human-like chatbot ChatGPT, told a US Senate hearing that the creation of a U.S. or global agency that could provide licences for the most powerful AI systems would be vital to mitigating the risks of advancing AI. The agency would also be tasked with ensuring compliance with safety standards, and be able to withdraw licences. Altman's comments expanded on earlier concerns over cyber-cheating mechanisms, to reflect a wider range of concerns ranging from misinformation to breaching copyright protections and job dislocation. Altman's proposals echo initiatives under way in Europe.
A conversation on Allied Burden Sharing in Ukraine, between the CSIS Project on Prosperity and Development and the CSIS Europe, Russia, and Eurasia Program, has discussed the role of European partners in supporting Ukraine. While the US is the world's largest financier of foreign aid and military assistance for Ukraine, the country's European partners are contributing similar amounts on a per capita basis, with the US ranking tenth overall. European burden-sharing has also been substantial on energy and trade, with the continent suffering from vulnerability to global market dynamics and reductions in energy consumption, and potential trade disruption in areas such as food. To ensure Ukraine emerges victorious, the US and Europe will need to collectively carry these burdens.
African countries, including Zambia, Senegal, Egypt and South Africa, have drawn up a peace initiative to put an end to the conflict in Ukraine. The proposed mission will visit Moscow and Kiev as part of the peace process. South African President Cyril Ramaphosa, who represented the initiative, also said that UN Secretary-General Antonio Gruterres and the African Union (AU) had been briefed and welcomed the initiative.
