UK Secretary of State for Business, Energy and Industrial Strategy, Kwasi Kwarteng, has called for greater UK and US collaboration on energy security. Speaking ahead of his address at America's largest civil nuclear conference in Washington DC, Kwarteng emphasised the importance of both countries working together on state-of-the-art technologies and creating the conditions for renewable businesses to thrive. Kwarteng argued that the UK was already demonstrating its energy innovation, citing the country's large offshore wind farms and potential for reviving nuclear power.
It is unclear whether Ukraine's counteroffensive against Russia has begun. Analysts suggest that while Ukraine is conducting local counteroffensives in and around the city of Bakhmut, it is still engaging in shaping operations to position itself better before the real action starts. Russia's forces had taken a defensive posture in Bakhmut, which means Ukraine risks losing equipment and soldiers. Kiev has been securing military support from European allies like France and Germany, hoping that a successful campaign could force Russia to negotiate peace terms.
Russian missile strikes on May 16 may have damaged the US-made Patriot missile defence system, which is currently used by Ukraine, according to two anonymous US officials. Though the system has not been destroyed, the two countries are reportedly discussing the best way to repair it without having to remove it from Ukraine. The alleged damage follows a warning from Vladimir Putin to target and destroy anti-missile defence systems supplied by the West to Ukraine. The Patriot system is designed to counter a range of threats, from ballistic missiles and cruise missiles to aircraft.
Russia has been ramping up the number of missiles it fires in order to confuse and overwhelm Ukraine’s air defences. However, according to one US official, this may have worked to Ukraine’s advantage as it forced Russia to go through more of its limited supply of precision weaponry that can home in on targets. Meanwhile, Ukraine’s President Volodymyr Zelensky spoke at a summit of the Council of Europe, where he said that recent battlefield successes showed that Ukraine could achieve anything as long as it was united. These included shooting down 18 Russian missiles overnight, including a volley of six Kinzhals, which Russia claims have hypersonic capabilities.
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 has developed "watchdog" technology to limit the use of its drones in military attacks on its territory. According to a source, all Chinese combat and reconnaissance UAVs have been constructed to recognise an "electric geofence" around China. This means that the drones automatically stop flying or launching weapons when nearing Chinese borders. The technology is included in the implantable components of the UAVs and is declared in developers' instruction books. China, which is now the world leader in drone development after the US, is said to have delivered 220 drones to 16 countries over the past decade.
Zambia raises key interest rate to 9.5% to tame inflation
Reuters
23-05-17 09:52
The Bank of Zambia has increased its key interest rate by 25 basis points from 9% to 9.5% due to high inflation in the copper-rich country. The bank said that inflation was expected to remain above the 6%-8% target band until the last quarter of next year. Zambia was the first African country to default on its sovereign debt during COVID-19 and has struggled to agree a relief deal with its external creditors. It secured a $3bn IMF funding last August. The central bank warned that further delays in external debt restructuring negotiations and tighter global financial conditions could pose risks to the inflation outlook.
The Council of Europe (CoE) has approved a “Register of Damage” to identify financial compensation owed for damage in Ukraine caused by Russian forces. Marija Pejcinovic Buric, Council head, called the register an “urgent, necessary, first step.” The US, Canada, and Japan, as well as over 40 countries, backed the register. German Chancellor Olaf Scholz said it would be important in punishing “war crimes of Russian occupiers” while supporting potential future legal proceedings. The Dutch Prime Minister Mark Rutte and the British Prime Minister Rishi Sunak also pledged to provide a coalition giving Ukraine combat air capabilities.
An opinion poll of 1,100 people in Kazakhstan has shown that 15% now believe that neighboring Russia may invade, double the percentage that held this view 6 months ago, a result of the ongoing war in Ukraine. Kazakhstan shares its longest continuous border with Russia, and has maintained neutrality in the Ukrainian conflict, though remains close in historical, economic and security ties with Moscow.
Ukrainian air defences using US-made Patriot interceptors neutralised a heavy Russian missile attack against Kyiv, with six KH-47M2 Kinzhal air-launched missiles reported to have been stopped by Patriots. However, the Kinzhal missiles are modified air-launched versions of the ground-launched Iskander short-range ballistic missile developed three decades ago, and do not incur the additional hypersonic boost-glide system of manoeuvrable hypersonic descent hypersonic weapons that can be fired atop booster rockets, making them harder to intercept. Therefore, while Patriots can indeed stop Kinzhal missiles, they cannot necessarily intercept swerving-and-jinking weapons. Additionally, Russia has been developing an Avangard hypersonic glide vehicle, deployed on Russian ICBMs, capable of descending at Mach 20 and outpacing any interceptors. China is also said to be developing similar weapons.
The Chinese embassy in London has warned that Britain risks "serious consequences" after former PM Liz Truss's high-profile visit to Taiwan. Truss is the first former British leader to visit the island since Margaret Thatcher in 1996. Truss urged the UK to use “hard power” to deter China and to "get real" about military cooperation with Taiwan. Beijing called it a “dangerous political show”. Britain amended its foreign and defence policy in March to describe China as a “epoch-defining challenge”.
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.
Activist jailed for 7 years in Russia for "justifying terrorism"
Reuters
23-05-17 13:53
A Ukrainian-born activist, Mikhail Krieger, has been sentenced to seven years in prison by a Russian court. He was found guilty of "justifying terrorism" in social media posts made last year praising two men who attacked buildings of Russia's Federal Security Service. Prosecutors accused him of "inciting hatred" in statements on social media that President Vladimir Putin should be hanged. Krieger denied the charges and used the trial as an opportunity to speak out against the war in Ukraine. Russian rights groups have designated him a political prisoner.
The European Union’s head of enlargement, Oliver Varhelyi, has cautioned Bosnia-Herzegovina that EU allies should not visit Russia, leading to speculation that the Balkans nation’s application to join the EU could be in jeopardy. Bosnia-Herzegovina was granted candidate status in December, in part due to concerns that the Ukraine conflict could have destabilising effects in the Balkans. However, there is no unified stance on foreign policy within the country, with Serb nationalist leader Milorad Dodik maintaining close relations with President Vladimir Putin of Russia.
An international deal for Ukraine to continue exporting agricultural products including grain to other markets via the Black Sea, known as the Black Sea Grain Initiative, has been extended by two months. Russia has demanded that the Russian Agricultural Bank be readmitted to the international transfer system, SWIFT and has called for the resumption of supplies of agricultural machinery and the lifting of restrictions on insurance and access to ports for Russian ships and cargo. Although there were no specific sanctions on Russian agricultural exports, William Moseley of Macalester College noted that any failure to renew the deal would hurt Russia's ability to cultivate friends in the Middle East and Africa.
The Duke and Duchess of Sussex were involved in a "near catastrophic car chase" involving paparazzi photographers. Kensington Palace has issued a statement condemning the "relentless pursuit”, which lasted over two hours and resulted in multiple near collisions involving other drivers on the road, pedestrians and two NYPD officers. The trio were forced to seek refuge in multiple police stations as they tried to lose the photographers. The couple had been attending an event in New York.
Hungary will block the next tranche of EU military support for Ukraine, as well as any fresh sanctions against its erstwhile ally Russia unless Kiev drops Hungarian bank OTP from its list of war sponsors. Ministers in Brussels are trying to resolve the dispute and ascertain whether Kiev has blacklisted OTP in its entirety or just its Russian branch. Hungary has demanded guarantees that other regions — such as the Balkans and North Africa — will get funding amid a proposal to allocate a further €500m ($550.4m) from the European Peace Facility to military aid for Ukraine.
The European Commission is to sign a deal agreeing regulatory co-operation with the UK, signalling improving relations between the two parties since the Northern Ireland trade dispute was settled earlier this year. The draft memorandum of understanding will lay the groundwork for voluntary regulatory co-operation, and will include the creation of a joint EU-UK Financial Regulatory Forum. The MOU is aimed at enhancing the flow of dialogue when making equivalence decisions, increasing co-operation in international regulatory bodies, and sharing regulatory updates and market analysis. The partnership is expected to be built on a shared commitment to preserve market integrity, financial stability, and protect investors and consumers. Despite the agreement, the memorandum “does not deal with the access of UK-based firms to the single market”, a spokesperson for the commission said, adding that this could still lead to the adoption of equivalence decisions.
Stellantis has become the first carmaker to urge the UK to renegotiate the terms of its Brexit deal. The parent company of car brands including Alpha Romeo, Peugeot, Vauxhall and Chrysler has called for a delay to beefed-up European Union (EU) “rules of origin”, saying that these could lead to it having to close its Ellesmere Port factory. The factory could be forced into closure as electric vans produced there, which comprise over 70% imported components, face a 10% tariff when they are exported to the EU from next year. Stellantis warned rising costs of raw materials, supply chains and the conflict in Ukraine had prevented it from meeting its planned content standards when announcing the expansion of the Cheshire plant in 2021. Car manufacturers across the UK and continental Europe have echoed its concerns over the rules of origin, which they claim will raise costs for EV drivers and reduce uptake.
UK Chancellor Rishi Sunak has said that he wants to reduce legal migration as figures are expected to balloon to around 700,000 next week. However, Prime Minister Boris Johnson has refused to promise that he will meet his manifesto pledge of getting migration below 2019 levels. Cabinet splits are reportedly emerging, with Home Secretary Suella Braverman calling for more British workers to be trained in industries with shortages instead of relying on foreign workers. Chancellor Jeremy Hunt has said the UK needs to be “pragmatic” about filling shortages with foreign workers. An official report, expected to be released next month, is predicted to show that annual net migration has tripled since the Brexit promise was made in 2019. Sunak was repeatedly asked whether he was committed to reducing net migration to the quarter of a million figure promised in the Conservative manifesto, but declined to say it would be met.
Leaders from the Group of 7 (G7) countries are to meet and discuss the global economy this week at the annual G7 summit in Japan. However, the US’ nearing debt default of two weeks may be cause for concern. President Joe Biden hopes to promote an optimistic tone after the White House sent two special aids to negotiate with Republicans to raise the debt. Upcoming discussions are also set to focus on Ukraine and China. European allies are pressing the US administration to give American-made F-16 jets to Ukraine after gaining territory around the city of Bakhmut. Nevertheless, the Biden administration is worried about escalating the situation and the potential costs and time issues that would arise. Discussions on China will focus on handling the threat of its economic, technological and military rise. The summit will also include talks on how to stabilise the global economy and limit devaluations of currencies.
