Wednesday, March 02, 2022

Germany May Extend Coal Use to Replace Russian Gas

Angela Cullen and Birgit Jennen
Mon., February 28, 2022




Germany is getting ready to prolong the use of coal as the country seeks to reduce its reliance on Russian energy in the aftermath of Moscow’s invasion of Ukraine.

Coal plants could run beyond 2030 -- when Germany currently targets an end for the fuel -- but the ultimate goal is greater energy independence through renewable power, said Robert Habeck, vice chancellor and minister for economy and energy.

“Energy policy is security policy,” Habeck said on Monday prior to talks with European Union counterparts. “Strengthening our energy sovereignty strengthens our security. Therefore, we must first overcome the high dependence on Russian imports of fossil fuels -- a warmonger is not a reliable partner.”

Germany, which gets more than half of its gas from Russia, has undergone a rapid shift in policy in reaction to the assault on Ukraine. Alongside a massive boost in defense spending, Chancellor Olaf Scholz announced on Sunday plans to build two new liquefied natural gas terminals, signaling a longer term realignment of Germany’s energy sector.

Even before the invasion, Scholz halted the certification process for the Nord Stream 2 pipeline built to bring more Russian gas directly to Germany and bypass transit through Ukraine.

Germany is now looking at short- and long-term measures to safeguard its energy market from any possible abrupt cutoff of Russian gas. Habeck, the former co-leader of the anti-nuclear Green party, even said he wasn’t “ideologically opposed” to extending the use of the country’s last reactors, but safety is a concern.

“There are no taboos,” Habeck said in an interview late Sunday with public broadcaster ARD. “The real path to independence in terms of energy policy is actually to phase out fossil fuels. The sun and the wind don’t belong to anyone.”

The Economy Ministry is proposing that Germany generate all of its electricity from renewable sources by 2035, 15 years earlier than originally planned, according to a tweet from a ministry official.

The energy rethink has broad backing in Germany’s ruling coalition. Finance Minister Christian Lindner -- from the business-friendly Free Democrats -- on Sunday called renewable power “freedom energy” as it would help reduce reliance on Russia and said he supports the efforts to push ahead with an expansion of hydrogen and synthetic fuels.

“I strongly urge that we review our foreign energy policy,” he said in an ARD interview late Sunday. “This is now all the more pressing.”

‘Pick and Choose’


Germany wants to reach a point where it can “pick and choose which countries we want to build energy partnerships with,” Habeck told ARD. “Being able to choose also means that you can become independent from Russian gas, coal or oil.”

While Germany can manage without Russian gas for the coming months, the country would have to expand its purchasing strategy significantly for next winter, he said.

Read More: European Gas Jumps as Sanctions Spur Energy Shortage Concerns

Coal could help offset the use of Russian gas, but relying on the most polluting fossil fuel also has its own security risks, Habeck said.

“Running for longer means a longer dependence on coal, possibly also from Russia. Or we get it somewhere else,” he said. “But it’s another form of dependence.”

Foreign Minister Annalena Baerbock -- also a former co-leader of the Greens -- said an extended use of coal is “the price that we all have to pay for this war.”

Nuclear is unlikely to be a short-term fix, since the country’s last three reactors are already in the process of being wound down.

“The preparations for shutting down are at such an advanced stage that the atomic power plants could only be operated for longer under the highest security concerns and possibly with fuel supply that hasn’t yet been secured,” Habeck said. “That’s certainly 

©2022 Bloomberg L.P.
Nuclear, coal, LNG: 'no taboos' in Germany's energy about-face

Christoph Steitz, Riham Alkousaa and Maria Sheahan
Sun., February 27, 2022

FILE PHOTO: Woman cleans inside of exhibit representing natural gas pipeline during final preparations at the Hannover Messe industrial trade fair in Hannover


BERLIN (Reuters) -Germany signalled a U-turn in key energy policies on Sunday, floating the possibility of extending the life-spans of coal and even nuclear plants to cut dependency on Russian gas, part of a broad political rethink following Moscow's invasion of Ukraine.

Europe's top economy has been under pressure from other Western nations to become less dependent on Russian gas, but its plans to phase out coal-fired power plants by 2030 and to shut its nuclear power plants by end-2022 have left it with few options.

In a landmark speech on Sunday, Chancellor Olaf Scholz spelled out a more radical path to ensure Germany will be able to meet rising energy supply and diversify away from Russian gas, which accounts for half of Germany's energy needs.

"The events of the past few days have shown us that responsible, forward-looking energy policy is decisive not only for our economy and the environment. It is also decisive for our security," Scholz told lawmakers in a special Bundestag session called to address the Ukraine crisis.

"We must change course to overcome our dependence on imports from individual energy suppliers," he said.

This will include building two liquefied natural gas (LNG) terminals, one in Brunsbuettel and one in Wilhelmshaven, and raising its natural gas reserves.

These plans will likely be a boon for Germany's top utility RWE, which has been backing efforts by German LNG Terminal, a joint venture of Gasunie, Oiltanking GmbH and Vopak LNG Holding, to build an LNG terminal in Brunsbuettel.

Separately, the German government has asked RWE's smaller rival Uniper to revive plans to build an LNG terminal in Wilhelmshaven, Handelsblatt newspaper reported on Sunday, after the company scrapped such plans in late 2020.

Uniper was not immediately available for comment and the Economy Ministry declined to comment.

Earlier this week Germany halted the $11 billion Nord Stream 2 Baltic Sea gas pipeline project, Europe's most divisive energy project after Russia formally recognised two breakaway regions in eastern Ukraine.

Russia has since invaded Ukraine, prompting the West to slap further sanctions on Moscow and making the energy supply issue even more pressing.

The revamp of energy priorities comes alongside a paradigm shift in German foreign and defence policy, with Scholz also announcing a dramatic hike in military spending.

'NO TABOOS'


Germany last year embarked on an ambitious shift towards solar and wind power and Greens member Oliver Krischer on Sunday said a draft law to ensure renewables will account for 100% of Germany's power supply by 2035 already was completed.

Germany will also increase the volume of natural gas in its storage facilities by 2 billion cubic metres (bcm) via long-term options and will buy additional natural gas on world markets in coordination with the European Union, Scholz said.

Germany has 24 bcm of underground caverns of gas storage, which are currently around 30% full, according to industry group Gas Infrastructure Europe data.

Germany is also weighing whether to extend the life-span of its remaining nuclear power plants as a way to secure the country's energy supply, the country's economy minister Robert Habeck, a member of the Greens, said.

Asked by German broadcaster ARD whether he could imagine allowing nuclear plants to run longer than planned under Germany's exit plan, which foresees shutting the country's three remaining plants by the end of 2022, he said: "It is part of my ministry's tasks to answer this question ... I would not reject it on ideological grounds."

Isar 2, Emsland and Neckarwestheim 2 are the last remaining nuclear plants producing power in Germany after the country a decade ago decided to phase out the fuel in the wake of Japan's Fukushima disaster.

The three plants are owned by German energy firms E.ON, RWE and EnBW, respectively.

Habeck also said letting coal-fired power plants to run longer than planned was an option, throwing into doubt Germany's ambitious exit from coal, which is planned for 2030.

"There are no taboos on deliberations," Habeck said, adding that it was Germany's goal to ultimately choose which country will supply its energy.

"Being able to choose also means, in case of doubt, saying goodbye to Russian gas, coal or oil. And should Russia wilfully cut off this supply, then the decision has of course been made," Habeck said.

"In that case they will never be rebuilt. I think the Kremlin knows that, too."

(Reporting by Christoph Steitz, Riham Alkousaa and Maria Sheahan; Editing by Sarah Marsh, Jan Harvey, Raissa Kasolowsky and Alison Williams)

Explainer-Could Germany keep its nuclear plants running?

By Christoph Steitz and Markus Wacket
© Reuters/Alex Grimm FILE PHOTO: Security route in front of the generator of a nuclear reactor block

FRANKFURT (Reuters) - German Chancellor Olaf Scholz and economy minister Robert Habeck on Sunday mapped out potentially radical changes to the country's energy system, going as far as floating the possibility to keep nuclear power plants running for longer.

© Reuters/Thilo Schmuelgen FILE PHOTO: E.ON headquarters in Essen

WHY BOTHER?

Germany depends massively on Russian gas but Moscow's invasion of Ukraine has caused a political rethink in Berlin.

Overall, gas accounts for more than a fifth of Germany's energy mix, and Russia supplies 38% of it with Norway ranking second at 35%.

Alternatives are now under consideration, including more solar and wind power, liquefied natural gas (LNG) terminals, gas- and coal-fired power plants as well as possibly a return to nuclear power.

WHAT'S HAPPENING WITH GERMANY'S NUCLEAR PLANTS?


Nuclear-fired power plants, which still supplied 12% of Germany's gross electricity generation in 2021, remain controversial in Germany, which decided to shut them down after Japan's Fukushima disaster in 2011.

Of the 17 nuclear power plants Germany had at the time, only three remain in operation now: Isar 2, Emsland and Neckarwestheim 2, which are operated by German energy firms E.ON, RWE and EnBW, respectively.

Under current plans, the plants, with combined capacity of 4,200 gigawatts (GW), will be shut down by the end of 2022.

WOULD IT BE POSSIBLE TO KEEP THE PLANTS RUNNING?


It's politically tricky given opposition from the rank and file of the ecologist Greens party, but not impossible.

Under current legislation the remaining operators will lose the right to operate the plants beyond Dec. 31, 2022, the effective end-date for the stations.

Should Germany's network regulator, which is part of the Economy Ministry, decide that they are critical to Germany's security of supply it could allow them to run for longer, which they could technically do.

"Yes, you can extend the life-span of the nuclear-fired power plants ... if there's the will and the operators are on board," said Dirk Uwer, partner at law firm Hengeler Mueller.

Achieving this would still be complex and require parliament to change existing laws, most notably a 2017 deal under which the utilities transferred their decommissioning funds to a public trust.

"There are no longer any prohibitions on thinking," said Marc Ruttloff, partner at law firm Gleiss Lutz, who has advised E.ON on various matters related to nuclear energy policy.

Due to the hurdles, however, chances for an extension are rather low, with Germany's minister for nuclear safety - of the Greens party of which Habeck is also a member - saying on Monday such a move was irresponsible and unsafe.

WHAT ARE THE OPERATORS SAYING?


They're not euphoric.

"For years, we have been doing nothing other than preparing both technically and organisationally for the decommissioning of our plants," a spokesperson for E.ON's nuclear division PreussenElektra said.

The group neither has the nuclear fuel nor the staff that would be required to keep plants going, the spokesperson added.

RWE said its Emsland plant was scheduled to be decommissioned at the end of 2022, by which time its fuel will have been used up, adding there would be high hurdles to overcome, both technically and in terms of getting the necessary approvals, to extend the life-span.

EnBW, however, is less opposed.

"If it is necessary for the security of supply, EnBW is of course prepared to examine measures in an open-minded manner and to provide advice to the German government," it said in e-mailed comments.

(Reporting by Christoph Steitz in Frankfurt and Markus Wacket in Berlin; Editing by Emelia Sithole-Matarise)
Western arms supplies for Ukraine: How are they getting there?

In an unprecedented move, the EU is financing the purchase and delivery of arms and weapons to Ukraine. Other Western countries are committing to arms deliveries, too. But how will they get there and how quickly?


The West is increasing its shipments of lethal arms to Ukraine but faces mounting logistical obstacles

The EU has earmarked €450 million ($503 million) for lethal arms, which include air-defense systems, anti-tank weapons, ammunition, and other military equipment for Ukraine's armed forces. A further €50 million will be spent on providing non-lethal supplies such as fuel, protective gear, helmets, and first-aid kits.

As EU treaties do not allow it to tap into its normal budget for military purposes, the bloc is activating a vehicle called the European Peace Facility, which allows it to provide military aid up to a ceiling of €5 billion.

It comes after a paradigm shift in Germany's defense policy, which saw it sign off on providing lethal weapons to Ukraine, including 1,000 anti-tank weapons and 500 "Stinger" class surface-to-air missiles, thereby reversing its ban on supplying lethal weapons to a war zone.

The US is also stepping up its shipments and providing an additional $350 million (€313 million) in military assistance, including Javelin antitank missiles, Stinger anti-aircraft missiles, small arms and ammunition.

That brings the total of US military aid to Ukraine to $1 billion over the past year and to more than $2.5 billion since 2014.



The logistical challenges

While this signals a huge boost for Ukraine in its effort to repel Russian forces, there are concerns about the logistics involved and the potential obstacles. Questions surround the timing and the routes.

So far, military aid from the West has been delivered by land or air, depending on the type of weapon.

But the airspace over Ukraine is now controlled by Russian fighter jets that could intercept the shipments "predominantly by airstrikes and missile strikes. If they know the routes they can take them under surveillance and look for the specific means of transportation," Gustav Gressel, an expert on Eastern Europe and defense policy with the European Council on Foreign Relations think tank, told DW via email.

The prospect of such a disruption puts the spotlight on Poland, which shares a 535-kilometer (332-mile) long border with Ukraine. The US Army, in particular, has a long history of dispatching forces and equipment through Poland.

And the onus on Poland is increasing following Hungary's refusal to allow lethal arms to transit its territory.



Poland's role

"All of this equipment is basically massing on the Polish border at the moment. Even if Slovakia, for example, wanted to, it's not an easy route because of the geography of the mountain ranges that move from Slovakia down through Romania. So there are two routes: One is close to the Belarusian border, then there's one slightly south," Ed Arnold, a research fellow for European Security at the Royal United Services Institute, a London-based think tank, told DW.



Marc Finaud, head of Arms Proliferation at the Geneva Center for Security Policy, notes that the dynamics on the ground could shift very quickly. "If these convoys or transports would be stopped — if Western countries are under attack, whether they are within NATO or already across the border into Ukraine — that could increase the tensions and the escalation," he told DW.

Arnold says the danger of such an escalation is currently holding back the Russians because "you would be targeting Western resupply."

Still, he says he's surprised that they haven't cut it off "because actually that would useful for their strategy if they could take those two routes. The Russians have the option of moving from the south-west of Belarus and interdicting all of this equipment that's coming in."

Time is of the essence

The other crucial factor is time, which is running out fast for reinforcements to get Ukrainian forces in Kyiv and Kharkiv.

This, says Arnold, is particularly problematic for "the Ukrainian forces on the eastern line of contact who are potentially going to be cut off if they don't move to the west of the Dnieper River soon. They will need to resupply because they're doing the heaviest fighting and they are the best Ukrainian troops from the 95th Air Assault Brigade."

So is there any other way to get the western arms systems to the front lines in Ukraine? "The other possibility is that Ukrainian or foreign fighters could pick things up in Poland and then move over the border, but that's not in great numbers," said Arnold.

At this stage the danger of ammunition supplies drying up is critical, says Arnold. "There's maybe five days left of ammo for the heavier systems the Ukrainians have. The other option they have is to capture Russian abandoned weapons, which will sustain them for a little while, but not a huge amount of time."
Ukraine: The risks of war in a nuclear state

The fear that Russia's invasion of Ukraine could escalate to a nuclear war is real. But what happens if any of the country's 15 nuclear power reactors get caught in the crossfire?

An army helicopter tries to help diffuse radiation during the 1986 Chernobyl nuclear disaster. Now the military could threaten a meltdown if nuclear plants are caught up in the Ukraine war


When the Chernobyl nuclear site in Ukraine was captured by Russian forces last week, the Ukrainian Foreign Ministry warned of the possibility of "another ecological disaster."

Normal radiation levels in the Chernobyl Exclusion Zone — which includes four closed reactors, one of which melted down in 1986 and spread radioactive waste across Europe — were exceeded according to Ukraine's state nuclear regulator, reportedly because of military activity in the area.

But, beyond the Chernobyl plant, there are concerns that some of Ukraine's 15 active nuclear reactors could be caught in the crossfire.

"It is a unique situation in the history of nuclear power — in fact in history — that we have a situation where a nation is operating 15 nuclear reactors and is in the middle of a full-scale war," Shaun Burnie, nuclear specialist with Greenpeace East Asia, told DW. The plants provide about half of Ukraine's electricity, though right now only nine of the 15 reactors are operating, Burnie said.

"The idea of building in protection in the event of a full-scale war was never part of a nation's planning, at least in terms of commercial nuclear power," he added.


Though some Cold War-era reactors in the Soviet Union were built underground to ward off military threats, the "enormous facilities" in Ukraine were all built above ground, Burnie said.

"A nuclear power plant is one of the most complex and sensitive industrial installations, which require a very complex set of resources in ready state at all times to keep them safe. This cannot be guaranteed in a war," Burnie and Greenpeace East Asia colleague Jan Vande Putte wrote in a briefing to be released Wednesday on the vulnerability of nuclear plants during military conflict.
Disabled cooling systems could spark radiation leaks

Operating reactors are especially vulnerable in the event of a electricity grid shutdown during wartime. If a plant's power supply was incapacitated due to heavy bombardment in the region, this could disable reactor cooling — and the cooling of spent fuel storage that is is contained within relatively light walls.

In a worst-case scenario, this could lead to a Fukushima-like meltdown and "massive releases of radioactivity," Burnie said.

These anxieties are being fueled by increased military activity to the south of the Zaporizhzhia plant — one of the two largest plants in Europe, it has six reactors and a storage facility for high-level nuclear spent fuel. Armed conflict in the region of Zaporizhzhia "raises the specter of major risks," states the briefing.

The site is already vulnerable, the authors say, as some aging reactors were built and designed half a century ago in the 1970s. Roger Spautz, nuclear campaigner at Greenpeace France and Luxembourg says the original 40-year lifespan of these reactors has already been expanded — as is also the case in France.

"The biggest risk is that spent fuels are hit by a missile or can't be cooled due to the disabled energy system," Spautz said. "You need electricity running 24 hours a day," he said, noting that diesel backup generators may not be able to run for several weeks, which may be necessary in wartime.

There is an unlikely chance of a direct attack, Burnie said, but structures built for spent-fuel containment could be "destroyed accidentally" in the crossfire.
'Installations containing dangerous forces'

"Nuclear power plants are defined as 'installations containing dangerous forces' under international humanitarian law and should never be attacked," said Doug Weir, research and policy director of the UK-based Conflict and Environment Observatory, referring to the Geneva Convention.



Burnie believes that Russia, which has more than twice as many reactors as Ukraine, understands the consequences of a direct attack on these facilities — including nuclear contamination of Russia itself if winds blow in a easterly direction.

"We do not expect to see the deliberate targeting of sites like Zaporizhzhia, but the kinds of heavy weapons that Russia is deploying are not particularly precise," Weir said. "Fighting around such sites must be avoided at all costs."

On Monday, Petro Kotin, head of Ukraine's state-run nuclear power plant operator Energoatom, expressed concern to the the International Atomic Energy Agency about Russian columns of military equipment and artillery "moving in the immediate vicinity" of nuclear facilities.

Informing the IAEA of shelling near the Energoatom plants, Kotin said "highly undesirable threats across the planet" could be the consequence.

In response, he called on the IAEA to intervene and support a 30-kilometer (18-mile) nonconflict zone around the nuclear power plants.


Spautz said another concern was that the Russian military could capture a power plant and not have the staff required to properly manage it. "You need several hundred technical staff who know the plant," he said.

The Greenpeace briefing on the vulnerability of nuclear plants in Ukraine notes that staff will be needed in the event of flooding from the Dnieper river, which flows through the vicinity of the Zaporizhzhia plant.

Should the system of Dnieper dams and reservoirs that provide the cooling water for the Zaporizhzhia reactors be damaged and the supply of water limited, nuclear fuel could begin to overheat and release radiation.

"All these facilities need constant monitoring," Burnie said. "They are not passively safe."


DW RECOMMENDS

Opinion: The real cost of nuclear energy for humans and the planet

Nuclear power will soon be classified as environmentally friendly under the new EU taxonomy. But nothing about it is green or safe, says DW's Jeannette Cwienk.


Going nuclear: Should nations unilaterally decide?

As nations like France extend the life of ageing nuclear energy infrastructure, bordering countries that could suffer most from a meltdown have little say.

ExxonMobil, Apple, Boeing latest US giants to cut ties with Moscow


Apple was among the large US companies to announce moves to exit or freeze business in Russia (AFP/Chris DELMAS) (Chris DELMAS)


Tue, March 1, 2022

Apple, ExxonMobil and Boeing announced Tuesday in rapid succession steps to withdraw or freeze business in Russia as more US corporate giants take action after the Ukraine invasion.

The moves -- in diverse industries and following earlier announcements by Disney, Ford, Mastercard and others -- highlight the rising economic toll on Russia after its assault on Ukraine unleashed massive sanctions across Western governments.

ExxonMobil will begin a phased withdrawal from the giant Sakhalin offshore oilfield that it has operated since 1995, saying "we deplore Russia's military action that violates the territorial integrity of Ukraine and endangers its people."


The US company operates in Russia on behalf of a consortium including Russian, Indian and Japanese companies, its only major project in Russia, after it pulled out of two joint ventures during the previous round of sanctions against Russia following its annexation of Crimea in 2014.

ExxonMobil's move follows earlier decisions by British energy group BP and Shell to pull out of joint projects in Russia. France's TotalEnergies said it would stay in Russia, but refrain from investing more money there.

ExxonMobil stressed that "the process to discontinue operations will need to be carefully managed and closely coordinated with the co-venturers in order to ensure it is executed safely."

- Focus on security of staff -

Earlier, Apple said it would halt all product sales in Russia and limit the use of Apple Pay and other services in the country.

"We are deeply concerned about the Russian invasion of Ukraine and stand with all of the people who are suffering as a result of the violence," Apple said.

Ukraine's defiant government, which has urged its people to battle Russian forces, has asked for help from all quarters, including Apple's CEO Tim Cook.

"I appeal to you... to stop supplying Apple services and products to the Russian Federation, including blocking access to the Apple Store!" Ukraine's digital minister Mykhailo Fedorov wrote in a letter he posted to Twitter Friday.

Boeing for its part said it was suspending its support for Russian airlines and its operations in Moscow, saying it was "focused on ensuring the safety of our teammates in the region."

The action could weigh heavily on flag carrier Aeroflot, which flies the Boeing 737 and 777, and last week announced it was suspending flights to Europe in response to the flight ban.

The United States and European allies have put tough sanctions on Moscow in recent days, including by cutting selected Russian banks from the SWIFT messaging system, while Washington has announced measures specifically targeting the country's central bank.

There has also been a stampede of large US companies in recent days away from Russia affecting nearly every sector.

Disney and WarnerMedia were among the entertainment giants to suspend new film releases in Russia, while tech heavyweights such as Facebook, TikTok and Microsoft moved to curb the reach of Russian state-linked news outlets, which stand accused of pushing misinformation about Moscow's invasion of Ukraine.

General Motors suspended vehicle exports to Russia, while Detroit rival Ford aid it was suspending its remaining operations in Russia, including commercial van manufacturing.

Credit card companies including Visa, Mastercard and American Express announced they were blocking Russian banks from their payment networks following international sanctions.

On Tuesday, Moscow announced plans for presidential decree aimed at preventing foreign investment exiting the country.

"In the current sanctions situation, foreign investors will be guided not by economic factors, but by political pressure," Prime Minister Mikhail Mishustin said.

"To enable businesses to make informed decisions, a draft presidential decree has been prepared to introduce temporary restrictions on exiting Russian assets."

He added: "We still consider foreign business as potential partners."

jum-jmb/jh


European subsidiary of Russia's Sberbank 
to enter bankruptcy

Western sanctions were levelled against the bank in response to Moscow's invasion of Ukraine (AFP/Jure Makovec) (Jure Makovec)


Tue, March 1, 2022

The European subsidiary of Russia's Sberbank will be wound up after coming under pressure from Western sanctions levelled against the bank in response to Moscow's invasion of Ukraine, European banking regulators said Tuesday.

The Austrian subsidiary of Russia's biggest lender Sberbank Europe AG would be allowed to enter "normal insolvency proceedings" while branches in Croatia and Slovenia were sold to local banks, the Single Resolution Board, part of the European Union's system to maintain financial stability, said in a statement.

Depositors at the Austrian subsidiary would be protected up to 100,000 euros ($111,265), in line with European legislation, while those in Croatia and Slovenia would be covered "with no limits".

Sberbank AG suffered financing issues following the announcement of tough European Union sanctions aimed at choking off Russian banks' access to capital markets.

The European Central Bank reported Monday that the European affiliate was "failing or likely to fail" after it "experienced significant deposit outflows as a result of the reputational impact of geopolitical tensions".

Support for the Austrian subsidiary from its parent was not possible since the Russian central bank prohibits financial institutions from sending cash to countries that have imposed sanctions.

Sberbank Europe AG -- which is 100 percent owned by the bank's Russian parent company -- also has subsidiaries in Bosnia and Herzegovina, the Czech Republic, Hungary and Serbia, which are not overseen by European regulators.

In the case of the Austrian subsidiary, the SRB determined letting the bank fail would "not have a negative impact on financial stability". The subsidiaries in Croatia and Slovenia would open again as normal on Wednesday.

sea/jfx


Visa, Mastercard block Russian financial institutions after sanctions

Maria Ponnezhath
Mon., February 28, 2022

FILE PHOTO: Illustration photo of a Mastercard logo on a credit card


By Maria Ponnezhath

(Reuters) -U.S. payment card firms Visa Inc and Mastercard Inc have blocked multiple Russian financial institutions from their network, complying with government sanctions imposed over Moscow's invasion of Ukraine.

Visa said on Monday it was taking prompt action to ensure compliance with applicable sanctions, adding that it will donate $2 million for humanitarian aid. Mastercard also promised to contribute $2 million.

"We will continue to work with regulators in the days ahead to abide fully by our compliance obligations as they evolve," Mastercard said in a separate statement late on Monday.

In 2021, about 4% of Mastercard's net revenues were derived from business conducted within, into and out of Russia. Meanwhile, business conducted within, into and out of Ukraine accounted for 2% of its net revenues, according to a filing on Tuesday.

The government sanctions require Visa to suspend access to its network for entities listed as Specially Designated Nationals, a source familiar with the matter told Reuters. The United States has added various Russian financial firms to the list, including the country's central bank and second-largest lender VTB.

On Saturday, the U.S., Britain, Europe and Canada announced new sanctions on Russia - including blocking certain lenders' access to the SWIFT international payment system.

Russians rushed to ATMs and waited in long queues on Sunday and Monday amid concerns that bank cards may cease to function, or that banks would limit cash withdrawals.

Russia calls its actions in Ukraine a "special operation".

Many Western banks, airlines and more have cut ties with Russia, calling the country's actions unacceptable. European nations and Canada have shut their airspace to Russian aircraft.

(Reporting by Maria Ponnezhath in Bengaluru; Editing by Christian Schmollinger, Kenneth Maxwell, Kirsten Donovan)
Swiss Wyss mulls chance to buy Chelse

Robin MILLARD
Wed, March 2, 2022,

Hansjorg Wyss one of Switzerland's richest men says he has been offered the chance to buy Premier League side Chelsea with present Russian owner Roman Abramovich coming under growing scrutiny due to Russia's invasion of Ukraine (AFP/Ian KINGTON) (Ian KINGTON)


Chelsea

Hansjorg Wyss, one of Switzerland's richest men, said Wednesday he had been offered the chance to buy Chelsea, with the European football champions' Russian owner Roman Abramovich under growing scrutiny.

Wyss, 86, who founded the medical device manufacturing firm Synthes, told the Swiss newspaper Blick that he and three others had been sounded out on Tuesday.

But Wyss wants Abramovich to lower his asking price for the English Premier League side.

Abramovich revealed Saturday that he plans to place his ownership of the Blues into the "stewardship and care" of the Chelsea Foundation's trustees.

Abramovich has not been named on a growing British sanctions list targeting Russian banks, businesses and pro-Kremlin tycoons in the wake of Moscow's invasion of Ukraine.

But British Prime Minister Boris Johnson has been pressed on why Abramovich has not been cited, given his familiarity with Russian President Vladimir Putin.

"Abramovich is among Putin's closest advisers and friends," Wyss told Blick.

"Like all the other oligarchs, he is panicked. Abramovich is currently trying to sell all his villas in England. He also wants to get rid of Chelsea quickly. Along with three other people, I received an offer on Tuesday to buy Chelsea from Abramovich.

"I have to wait four or five days. Abramovich is asking too much right now. Chelsea owes him £2 billion ($2.7 billion, 2.4 billion euros). But Chelsea has no money. This means that those who buy Chelsea must compensate Abramovich.

"We do not yet know the exact sale price. I can very well imagine myself joining Chelsea with partners. First I have to look carefully at the conditions.

"I certainly wouldn't do such a thing alone. If I buy Chelsea, it will be with a consortium of six to seven investors."

- Silence at Stamford Bridge -


Contacted in London, Chelsea refused to comment, while a spokeswoman for Abramovich did not immediately respond.

Chelsea defeated Brazil's Palmeiras 2-1 in the Club World Cup final in Abu Dhabi last month, meaning the Blues have now won every possible trophy since Abramovich bought the west London side in 2003.

Johnson was asked in Warsaw on Tuesday why Abramovich has not been personally sanctioned by Britain, as several UK lawmakers have demanded.

In response, Johnson did not mention the Chelsea owner, but said Britain would be "tightening the economic noose" further around the Russian regime.

In parliament on Tuesday, opposition Labour lawmaker Chris Bryant said Abramovich seemed "terrified of being sanctioned, which is why he's already going to sell his home".

Wyss praised the West's "excellent approach" in imposing sanctions on Russian interests.

"The fact that the Russian oligarchs are targeted by the Americans and Europeans is absolutely essential, because they may have an influence on Putin," he told Blick.

- Medical devices fortune -


Forbes magazine's 2021 annual list of the world's dollar billionaires put Wyss in 451st place, with a fortune of $6 billion.

The Harvard Business School graduate was the chairman and president of Synthes, one of the world's major manufacturers of instruments and implants to mend bone fractures.

In 2012, Synthes was bought by US healthcare giant Johnson & Johnson. It now forms part of J&J's DePuy division, with the acquisition creating one of the world's largest orthopaedic and neurological businesses.

Wyss is also a well-known philanthropist, with his charitable foundation worth over $2 billion.

In 2018, he pledged to donate $1 billion to conservation programmes.

Stephen Taylor Heath, head of sports law at Manchester-based lawyers JMW Solicitors, said it was understood that Abramovich controls the corporate entities that own Chelsea rather than the club directly.

"Any would-be buyer would need to undertake due diligence which would establish the ownership structure and any issues with the club. And so a very quick immediate sale would be very difficult in practice," he said.

rjm-burs/pi

Fighting rages in Ukraine as Russian troops claim city

This handout picture released by the State Emergency Service of Ukraine, shows firefighters extinguishing a fire in the Kharkiv regional police department building, which is said was hit by recent shelling, in Kharkiv on March 2, 2022. (Photo: AFP)


Wednesday, March 02, 2022

KYIV, Ukraine (AFP)— Russian forces said they had captured a port on the Black Sea on Wednesday as Russian and Ukrainian troops battled for another city and Ukraine's leader said Moscow wanted to "erase" his country.

The Russian army said it had taken control of Kherson, as its troops advanced and pounded cities across southern and eastern Ukraine, defying sanctions and international isolation.

Russian paratroopers also landed in Kharkiv, Ukraine's second-biggest city, triggering clashes in the streets, Ukrainian forces said.

The emergency services said four people were killed in the city on Wednesday and there was now "mass shelling and bombing" in the centre.

In a video address, Ukrainian President Volodymyr Zelensky said Russian forces wanted to "erase our country, erase us all".

Zelensky said Tuesday's strike on a television mast in the capital Kyiv demonstrated Russia's threat to Ukrainian identity.

Five people were killed in the attack on the tower at Babi Yar, the site of a Nazi massacre in which over 33,000 people were killed -- most of them Jews.

The 44-year-old Zelensky, who is himself Jewish, urged Jewish people around the world to speak up.

"Nazism is born in silence. So, shout about killings of civilians. Shout about the murders of Ukrainians," he said.

- 'Russian dictator' -

Ukraine says more than 350 civilians, including 14 children, have been killed in the conflict and the International Criminal Court has opened a war crimes investigation against Russia.

The UN said 836,000 people have fled since the conflict began seven days ago, including many students and migrant workers from Africa and the Middle East who had been living in Ukraine.

"We left everything there as they came and ruined our lives," said Svitlana Mostepanenko, a refugee registering in Prague. 

"Our families, they're bombing even... houses where there are kids, small kids, children, they die now," she added.

In his first State of the Union address on Tuesday, US President Joe Biden warned the sanctions campaign to cripple Russia's economy would escalate and its oligarchs were being targeted.

Biden hailed the resolve of the Western alliance and voiced solidarity with Ukraine as lawmakers in the US Congress gave a standing ovation to the Ukrainian people.

"A Russian dictator, invading a foreign country, has costs around the world," Biden told lawmakers, promising "robust action to make sure the pain of our sanctions is targeted at Russia's economy."

- Fight for Kharkiv -

Russian troops rolled into Ukraine last week to achieve Putin's mission of overthrowing Zelensky's government and "denazifying" the pro-Western country.

But Ukrainian troops have fought back hard and prevented Russia from capturing any the country's biggest cities.

On Wednesday, however, Russian defence ministry spokesman Igor Konashenkov said Russian forces were in now "full control" of Kherson, a city with a population of 290,000 people.

He said talks were under way between the Russian army and local authorities on maintaining order, protecting the population and keeping public services functioning.

Ukraine's army said there was a battle in the country's second city Kharkiv, in northeast Ukraine near the Russian border with a population of 1.4 million.

"There is an ongoing fight between the invaders and the Ukrainians," the army said on messaging app Telegram.

AFP saw rocket damage on security, police and university buildings in Kharkiv.

Ukrainian forces said Russian strikes hit a residential block and a government building in the city on Tuesday killing 18 people, drawing comparisons to the massacres of civilians in Sarajevo in the 1990s and condemnation for what Zelensky called a "war crime".

As the civilian death toll mounts, there is growing opposition to the conflict within Russia, with thousands detained for taking part in anti-war protests.

"I am urging everyone to take to the streets and fight for peace," jailed Kremlin critic Alexei Navalny said in a statement posted on Facebook.

He called on Russians not to be afraid of going to prison.

"Everything has a price and now, in the spring of 2022, we should pay that price."

- 'Russia will be a pariah' -

Western countries have imposed crippling sanctions on Russia's economy and there have been international bans and boycotts against Russia in everything from finance to tech, from sports to the arts.

In the latest development, the EU banned broadcasts of Russian state media RT and Sputnik and excluded seven Russian banks from the global SWIFT bank messaging system.

The list did not name two major Russian banks, Sberbank and Gazprombank, which were left connected to SWIFT to allow EU countries to pay for Russian gas and oil deliveries.

Sberbank, Russia's largest lender, said Wednesday it was leaving the European market after coming under pressure from Western sanctions.

The EU and NATO members have also sent arms and ammunition to Ukraine, although they have made clear that they will not send troops and the EU has dampened Zelensky's hopes of membership of the bloc.

In response to the invasion, Western companies have also withdrawn from projects in Russia, deepening the economic toll on Moscow that saw the ruble collapse this week.

Apple, Boeing, Disney, ExxonMobil and Mastercard announced Tuesday in rapid succession steps to withdraw or freeze business in Russia.

German logistics giant DHL joined them on Wednesday, saying it would stop deliveries to Russia and Belarus, which has allowed the passage of Russian troops to attack Ukraine.

"Going forward, Russia will be a pariah, and it's hard to see how they can restore anything resembling normal interactions in the international system," said Sarah Kreps, professor at Cornell University.

The invasion has sent global markets into a spiral, with crude surging past $110 a barrel Wednesday and equities sinking.

Aluminium and gas prices hit record highs on supply fears and the Moscow Stock Exchange failed to open for a third day running.

- 'We are going to fight' -

Initial talks between Russia and Ukraine on Monday failed to yield any breakthrough.

Since then, strikes have been reported in Konstantinovka in eastern Ukraine, Bordodyanka near Kyiv and Zhytomyr in central Ukraine.

In an important strategic victory, Russian troops attacking from the Crimean peninsula said they had linked up along the Azov Sea coast with pro-Moscow separatists in eastern Ukraine.

The city of Mariupol was reportedly encircled.

The separatists have been fighting Ukrainian government forces since 2014 in a conflict that has killed more than 14,000 people.

US satellite images show that Russia has massed artillery and armoured cars near Kyiv, raising fears of an imminent assault. 

"The enemy is drawing up forces closer to the capital," Kyiv's mayor Vitali Klitschko said in a video address.

"Kyiv is holding and will hold. We are going to fight," he said.


Ukrainian artist makes heartfelt appeal: Let's take a stand and assert that 'nobody wants the war'


As Russia wages war on Ukraine, artists are taking a stand and making themselves heard in a variety of ways. Nikita Kravtsov joins France 24 to discuss his role as a Ukrainian artist and activist: publishing a book, collaborating with art students, and organizing demonstrations in major cities across Europe. Mr. Kravtsov has a lofty objective in mind: to remind people all over the world that this war is "not only the problem of Ukraine." He is here to tell us that democracy itself is at stake worldwide, and that Russia's assault on Ukraine is a stark warning to the world that "nobody is safe."

New Zealand protesters burn camp after riot police move in
 
New Zealand police deploy a forklift truck to remove cars and campervans that were used by anti-vaccine protesters to jam the streets of downtown Wellington
 (AFP/Dave Lintott)





The numbers of protesters had dwindled to around 300 from around 3,000 two weeks ago (AFP/Marty MELVILLE)

Neil SANDS
Tue, March 1, 2022,

New Zealand anti-vaccination demonstrators set alight their own protest camp outside parliament Wednesday after riot police moved to end their weeks-long occupation of the legislative precinct.

Police abandoned their light-touch approach, with hundreds of officers using perspex shields, pepper spray and water jets to force back protesters, who responded by hurling bottles, bricks and paint bombs.

When it became clear police were winning control of the makeshift tent city that sprang up on parliament's lawns three weeks ago, the demonstrators torched it themselves.

"This is not over," one man yelled, while others chanted "Shame on you" at advancing officers as a thick pall of black smoke enveloped the area.

Police deployed an ear-splitting sonic cannon and high-pressure water hoses to help disperse the crowd, although a few dozen regrouped and fought running battles with police on nearby streets into the evening.

Prime Minister Jacinda Ardern backed the force's tough tactics, angrily denouncing the violence as a "desecration" of parliament's grounds.

"It was an attack on our frontline police, it was an attack on our parliament, it was an attack on our values, and it was wrong," she told reporters in parliament as rioting continued a few hundred metres (yards) away.

She said what began as a movement against coronavirus vaccine mandates -- inspired by similar protests in Canada -- had turned toxic and the demonstrators' conduct was "disgraceful".

Ardern said the protesters represented a small group whose extremism was fuelled by conspiracy theories and misinformation.

"We have a difficult journey in front of us, to address the underlying cause of what we have seen here today -- but in doing so, we will never, ever excuse it," she said.



New Zealand anti-vaccine protesters torch their own camp outside parliament as police move in (AFP/Marty MELVILLE)

- 'It needs to end' -


Police launched a pre-dawn push to clear roads around the legislature, using a large forklift truck to remove cars and campervans that arrived in the capital in a convoy on February 8 and were used to jam downtown streets.

In the afternoon, they turned to the protest's epicentre on the lawns of parliament, where around 3,000 people congregated at the height of the demonstration about two weeks ago.

Numbers have since dwindled to a hard core of about 300 who police commissioner Andrew Coster said had shown a willingness to use violence not shared by legitimate demonstrators.


Residents have complained about being abused by protesters for wearing masks, while schools and businesses close to the camp had closed for safety reasons 
(AFP/Marty MELVILLE)

"We've seen tactics (from protesters) today including spraying fire extinguishers at the police line, the throwing of paint, early on we saw weapons," he said.

He said police were not seeking confrontation but added: "This protest has now tipped over a balance and it now needs to end."

At least three officers were hospitalised with "non-life threatening" injuries in the operation to clear the parliamentary precinct, which left a few dozen angry protesters milling on nearby streets hurling stones.


New Zealand police move to clear anti-vaccination occupation
 (AFP/Marty MELVILLE)

The show of force came after vocal criticism from Wellington locals about the hands-off approach previously adopted towards the demonstrators.

Residents have complained about being abused by anti-vax activists for wearing masks, while schools and businesses close to the camp have closed for safety reasons.

In recent weeks, police have accused protesters of hurling human faeces at them, spraying a "stinging substance" at officers and slashing tyres on police cars.

Parliamentary officials initially tried to clear the grounds by playing pop music and children's song "Baby Shark" on a loop, but stopped after police criticised the tactic.

Coster said Wednesday's operation came after efforts to "de-escalate" the situation and end the protest peacefully had stalled.

"We reached the stage where protest leaders were unwilling or unable to effect meaningful change," he said.

ns/arb/mtp


COVID digest: New Zealand police clash with anti-vaccine mandate protesters

Protesters burned tents as police used pepper spray in New Zealand's capital. US President Joe Biden said he will "never just accept living with COVID" during his State of the Union address. DW has the latest.



New Zealand police on Wednesday clashed with hundreds of protesters who have been camped outside the Parliament in Wellington for about three weeks.

Violence broke out in the afternoon as police tried to clear up the protest camp. Protesters set fire to a number of tents, sending thick black smoke into the air. They also hurled objects such as tent poles at the police.

Forces used pepper spray on some of the demonstrators, and began towing some of the cars, vans and trucks that protesters have used to block streets in the area. Police Commissioner Andrew Coster said 36 protesters had been arrested for trespassing, obstruction and other offences.

It was the most significant use of force to date by authorities against the protesters, who oppose coronavirus vaccine mandates.

"We've become concerned that those with good intentions are now outnumbered by those with a willingness to use violence to effect their means," he said, adding that de-escalation was the preferred option.

New Zealand imposed tough anti-virus curbs since the beginning of the pandemic and has had low infection and death rates. But cases of the omicron variant have been on the rise. About 95% of eligible people are vaccinated with two doses.

Here are the latest coronavirus developments from around the world:

Americas

President Joe Biden said the United States will "never just accept living with COVID," during his State of the Union address.

Biden said the country would continue fighting the virus. "Thanks to the progress we have made this past year, COVID-19 need no longer control our lives," he said, but asked people not to let their guard down yet, as there could be more variants.

The White House said it will announce a COVID preparedness plan on Wednesday. The plan will be unveiled by Anthony Fauci and other top White House advisers, and map out how "to move forward safely and get back to our more normal routines."

Hawaii will soon lift its quarantine requirement for travelers this month. From March 26, those arriving from other places in the US will not have to show a vaccine certificate or negative test.

International travelers would still require proof of vaccination or a negative test result.

It is the only American state to implement a program of this kind. Hawaii has one of the lowest infection rates in the country.

Governor David Ige said the indoor mask mandate would still be in action, at least till March 25. The state department of health would then take a call after reviewing CDC recommendations, he added.

Asia


Thousands of Filipinos celebrated Ash Wednesday at churches this year, as the Philippines lifted most of its COVID-19 restrictions. Low infection rates and high vaccination numbers in the past weeks allowed people to resume social contact and gatherings.

Devotees came to receive the ash cross on their foreheads, a ritual that marks the beginning of Lent. During the past two years, churches have sprinkled it in people's hair, due to COVID restrictions amid its ongoing omicron surge.

The government of Hong Kong asked its citizens not to "panic nor scramble or stockpile the relevant supplies," as it decides whether to impose restrictions.

Authorities said any decision about a lockdown would keep in mind the financial hub's status and ensure basic needs of residents were met. The government was still deliberating on a compulsory universal testing scheme, sometimes referred to as CUT.

"The experience of implementing a CUT initiative in other parts of the world shows that the basic needs of citizens such as food, necessities and the seeking of medical attention outside home should be addressed," said the government.

Infections in Hong Kong have soared to around 30,000 per day. Experts are expecting the wave to peak in the coming week.

tg/jsi (dpa, AP, Reuters)

In Cameroon's arid north, climate stress boosts ethnic strife


One of the makeshift huts i at the Bogo camp 
(AFP/Daniel Beloumou Olomo)


Adrien MAROTTE
Wed, March 2, 2022, 3:05 AM·4 min read

Their homes are a scattering of huts made of branches and dry leaves that seem to almost dissolve into the arid landscape.

A group of men sit on a rug, conversing in the shade of a tree, while women perching on stones under the scorching Sahel sun prepare a meal with the few ingredients they have to hand, as children play nearby.

These are some of the 4,000 ethnic Arabs in a makeshift camp at Bogo in Cameroon's Far North region.

They fled after violence erupted near Kousseri, a river town about 100 kilometres (60 miles) from Lake Chad.



The fighting flared in August, then again in December, pitting Choa Arab herders against Mousgoum fishermen in a fight over access to water, a precious but dwindling resource in this region.

The Mousgoum dig pools to capture water and keep fish -- a practice that often causes friction with Arab herders seeking water points for cattle, but which this time spiralled out of control.

At least 67 people died and hundreds were injured, the town's cattle market was destroyed and around 100,000 people fled.

Many crossed into neighbouring Chad or headed towards Maroua, the Far North's capital, lying more than 800 kilometres (500 miles) northeast of the capital Yaounde.

Mahamat Sale, 60, is the leader of the group in Bogo, who say they walked some 175 kilometres (110 miles) to reach a place they consider safe. They have lost everything.

"We prefer to stay here rather than go back," said Sale. "Here, we are tolerated. Over there, the Mousgoums consider us to be invaders."


A woman starts building a shelter in Bogo (AFP/Daniel Beloumou Olomo)


- Climate stress -

Rising temperatures and scarcer, more unpredictable rainfall are acknowledged factors in inflaming ancestral tensions in the Lake Chad area.

In a 2019 report, the Europe-based think tank Adelphi warned of "a feedback loop" -- a vicious circle, in non-technical speech -- between climate change and conflict dynamics.

Climate stress increases pressure on communities, which undermines their ability to cope.

This in turn makes those communities more vulnerable to climate impacts and heightens competition for resources.

Armel Sambo, a professor of history at the University of Maroua, said "When the economic situation deteriorates, people fall back on their ethnicity, religion and identity issues," inflaming the risk of violence.

"Historically, the Mousgoums are the natives and the Arabs are nomadic herders, regarded as people who come along and occupy the land as intruders."

Lake Chad is an expanse of shallow water and swamps that at one time was the size of Lake Erie, extending its shores to four countries — Cameroon, Chad, Niger and Nigeria.

But it has lost more than 90 percent of its surface area in six decades, reduced from 26,000 square kilometres (10,000 square miles) in 1963 to less than 1,500 square kilometres today.

Increased irrigation and human demand for freshwater, along with less rainfall, have driven the shinkage.

The lake basin and its countless islets have also become the main haven for jihadist fighters from Nigeria's Boko Haram and its dissident branch, the Islamic State in West Africa Province (ISWAP), but the Kousseri area has thus far been spared from their attacks.

A crucial water source, Lake Chad has lost more than 90 percent of its surface area in six decades (AFP/MICHELE CATTANI)

- Solutions -

At a village near Kousseri, Mahamat Djidda Mahamat, a 20-year-old resident, said the situation had calmed down after last year's clashes.

"I don't know if it's over. I lost my father, my house, loved ones... I just want to live in peace," he said, adding that he avoided the Arabs.

"People are going home. We have secured the area," said Bakari Midjiyawa, the governor of the Far North region.

But, said Sambo, what was needed was a long-term system of water allocation and mediation so that disputes between herders and fishermen did not turn bloody.

"Efforts are being made but are not enough," he said.

"Seasonal livestock trails should be marked out, water points should be created for each community and there should be monitoring to ensure proper application of these measures," he said.

"The government must become more involved, ensure the safety of movements of people in this region and promote mediation by traditional chiefs."

More widely, the disappearance of Lake Chad -- a hypothesis deemed credible by experts -- would deprive millions of water needed to survive through fishing, agriculture, livestock and trade.

"The effects of global warming and the problems of access to water have catalysed tensions," said Xavier Bourgois, spokesperson for UNHCR, the UN's refugee agency.

"Now we must bring all the players around the table to find the roots of the problem and put in place solutions for adapting."

amt/gir/nb/pvh/ri