Monday, February 21, 2022

NatWest to End Ties to Some Clients Over Pollution: FT

(Bloomberg) --

NatWest Group Plc plans to stop doing business with a group of coal companies and it will end lending to some oil-and-gas majors over their lack of “credible” green plans, the Financial Times reported, citing a company report and James Close, its head of climate change.

Close told the newspaper the number of companies affected is “relatively small.” He said it’s “dozens and less.” The energy companies that will still be able to borrow from the British bank are mainly those “that aren’t doing any more upstream oil and gas production,” he said.

The changes are to be enforced “as soon as is practicable,” NatWest said Friday in its climate disclosure report, the FT said.

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©2022 Bloomberg L.P.

GOOD
Iraq Kurds reject court order to cede control of oil exports

Iraq's Kurdish region has rejected an order from Baghdad that they must handover control of its oil output to the federal government.

The New Arab Staff & Agencies
16 February, 2022

The Kurdish region delivers 250,000 barrels per day to Baghdad [Getty]

Iraq's autonomous Kurdish region has rejected a ruling by the country's top court ordering it to cede control over all of its oil output to the federal government in Baghdad.

Tuesday's judgement by the federal supreme court was the latest salvo in a years-old battle for control of the region's oil earnings.

"This decision by the federal supreme court is unjust, unconstitutional and violates the rights and constitutional authorities of the Kurdistan region," the regional government said in a statement late Tuesday.

"The Kurdistan regional government will not forfeit the rights of the Kurdistan region as codified in the Iraqi constitution, and will continue its attempts to reach a constitutional solution with the federal government on this matter."

Iraq's federal government has fought to regain control of output from oilfields in the Kurdistan region ever since its autonomous government began marketing it independently more than a decade ago, signing its own contracts with customers.

Ankara's role in providing an export outlet for the oil has triggered long-running tensions with Baghdad.

Under the current deal between the federal and regional governments, the Kurdish region delivers 250,000 barrels per day of its more than 400,000 bpd output to Baghdad, in return for a share of federal funds.

RELATED
Analysis Dana Taib Menmy

The money is used to pay the salaries of Kurdish civil servants and peshmerga fighters.

Following the Islamic State group's seizure of swathes of northern and western Iraq in 2014, the Kurds took control of the lucrative oil fields around Kirkuk.

But when they moved to hold a referendum on independence in 2017, federal troops took most of them back in a major blow to Kurdish revenues.

The Kurdish government promised clients their contracts would be honoured despite the latest legal tussle with Baghdad.

"The Kurdistan regional government will take all constitutional, legal and judicial measures to protect and preserve all contracts made in the oil and gas sector," its statement said.
VERITAS
Iran not seeking nuclear weapons, needs atomic energy: Khamenei

In a televised speech, Iran's Ayatollah Ali Khamenei said that his country will further develop the peaceful nuclear capacity to preserve independence amid negotiations with world powers to revive a 2015 nuclear pact.


The New Arab Staff & Agencies
17 February, 2022

Ayatollah Ali Khamenei said Iran has never sought nuclear weapons 

Iran's supreme leader said on Thursday that it will further develop peaceful nuclear capacity to preserve independence, amid negotiations with world powers to revive a 2015 nuclear pact.

Indirect talks between Tehran and Washington have been held in Vienna since April amid fears about Tehran’s nuclear advances, seen by Western powers as irreversible unless agreement is struck soon.

Other parties to the deal, which then US President Donald Trump pulled out of in 2018, have been shuttling between Iran and the United Sates. Several sources, including Iranian officials, told Reuters that the next couple of days would be crucial in determining whether gaps could be closed.

"We will sooner or later need peaceful nuclear energy. If we do not pursue it ... our independence will be harmed," Iran's highest authority, Ayatollah Ali Khamenei, said in a televised speech, supporting Tehran's hardline negotiating team in Vienna.

"Diplomatic efforts by our revolutionary brothers in trying to get rid of the sanctions are also good but the main task is to neutralise the sanctions," added Khamenei, referring to far-reaching sanctions reimposed by Trump and still in place.

Since 2019, Tehran has gradually breached the old deal's limits and gone well beyond, rebuilding stockpiles of enriched uranium, refining it to higher fissile purity and installing advanced centrifuges to speed up output.

The 2015 pact limited Iran’s enrichment of uranium to make it harder for Tehran to develop material for nuclear weapons, in return for a lifting of international sanctions.

Khamenei said Iran has never sought nuclear weapons despite such allegations from the Islamic Republic's "enemies".

(Reuters)
G7 & G20 SHOULD COMMIT
UNICEF to pay monthly stipend to Afghan teachers for two months

The children's agency said they would pay a monthly stipend for two months as Afghanistan's economic crisis has left salaries unpaid for months


Payments to the teachers will be roughly $100 per month [Getty]

The United Nations children's agency would pay Afghan teachers a monthly stipend for at least two months, the organisation said, with salaries unpaid for months as the country is plunged into economic crisis due to sanctions on the Taliban administration.

The payments, of roughly $100 per month, would be paid in the local currency to around 194,000 primary and secondary school teachers for January and February, and would be funded by the European Union, UNICEF said in a statement on Sunday.

"Following months of uncertainty and hardship for many teachers, we are pleased to extend emergency support to public school teachers in Afghanistan who have spared no effort to keep children learning," said Mohamed Ayoya, the representative for UNICEF Afghanistan.

The country has been in economic crisis since the Taliban took over last August as foreign forces withdrew. Restrictions on the banking sector due to sanctions and a drop-off in development funding left the new administration struggling to pay many public sector salaries, including for teachers.

The international community has been grappling with how to engage with the Taliban without formally recognising their government, and has made education for girls a key demand when speaking with the group, according to diplomats.

The Taliban have been vague on their plans for girls' education with many still unable to attend secondary school in a large number of provinces. However, the group has said it is working on plans to allow girls to return to school and is opening universities this month with women attending.

(Reuters)
Lebanon's 'zombie banks' scale back amid economic crisis

The New Arab Staff & Agencies
20 February, 2022
Before the onset in 2019 of a financial collapse deemed one of the world's worst since the 1850s by the World Bank, Lebanon had an oversized but prosperous banking sector.


Lebanon's currency has suffered a dizzying currency collapse [Hasan Shaaban/Bloomberg/Getty-file photo]

Once the economy's crown jewel, Lebanon's banks are shutting branches and laying off employees in droves, resizing to the bleak reality of a crisis they are widely blamed for.

Before the onset in 2019 of a financial collapse deemed one of the world's worst since the 1850s by the World Bank, the small Mediterranean country had an oversized but prosperous banking sector.

The capital Beirut was a booming regional financial hub, attracting savers keen to profit from high interest rates and banking secrecy laws.

But more than two years into the crisis, the reputation of Lebanese lenders has been shredded.

A dizzying currency collapse, coupled with banks imposing strict withdrawal limits and prohibiting transfers abroad, has left ordinary depositors watching on helplessly as their savings evaporate.

And yet bankers stand accused of bypassing those exact same capital controls - stoking the crisis by helping the political elite squirrel billions of dollars overseas.

Their trust destroyed, citizens now keep new income well away from the banks, which in turn are deprived of money they could lend.

"The whole banking system today is made up of zombie banks," said economic analyst Patrick Mardini.

"They don't work as banks anymore - they don't give loans, they don't take new deposits."

'Abandoned country'


As a result, the industry has been forced to scale back its operations.

In 2019, Lebanon ranked second in the region for bank branches per 100,000 people, according to the World Bank, and held a total of around $150 billion in deposits.

Deposits by Arab investors and Lebanese expatriates propelled the banking sector to peak at three times the value of national economic output.

But more than 160 branches have closed since the end of 2018, leaving a total of 919 branches operating across the country, according to the Association of Banks in Lebanon (ABL).

The number of employees has dropped by around 5,900, reducing the sector's workforce to roughly 20,000 late last year.

"Lebanon is an abandoned country," ABL chief Salim Sfeir told AFP, referring to negligence by the nation's authorities.

The association claims the sector has been "forced to adapt to the contraction of the economy," even as others blame the banks for overall economic activity plunging by more than half since 2019.

The Lebanese pound, officially pegged at 1,507 to the greenback since 1997, has lost more than 90 percent of its value on the black market.

The slide has prompted banks to adopt a plethora of exchange rates for transactions even though the official rate remains unchanged.

Those who hold dollar accounts have mostly had to withdraw cash in Lebanese pounds and at a fraction of the black market rate.

"If we apply international accounting standards, almost all Lebanese banks are insolvent," investment banker Jean Riachi said.

'Exit the market'

Lebanon's government defaulted on its foreign debt in 2020, stymying the country's hopes of quickly securing new international credit or donor money to stem the crisis.

The ruling elite, beset by internal rifts that have repeatedly left the country without a government, has yet to agree on an economic recovery plan with international creditors.

Disagreements between the government, the central bank and commercial banks over the scale of financial sector losses have dogged talks with the International Monetary Fund that first started nearly two years ago.

In December, the government of Prime Minister Najib Mikati set financial sector losses at around $69 billion in a crucial step towards advancing IMF talks.
But while the global lender said early this month that efforts to agree on a rescue package have progressed, it made clear more work was needed, especially in terms of "restructuring of the financial sector".

The analyst Mardini said bank restructuring proposals have been discussed by several governments.

Central bank chief Riad Salameh has said banks that are unable to lend must "exit the market".

But meaningful progress on restructuring has been impeded by a political elite who maintain large shares in some of the main banks, according to Mardini.

For out-of-pocket depositors, the details of any restructuring arrangements are a secondary concern.

"I just want to recover my savings," said Hicham, a businessman who asked to use his first name only over privacy concerns.

"All the parties concerned must assume their responsibilities."
Congo seeks to recover $2b of assets from Israeli investor

The US Treasury imposed sanctions on Dan Gertler and more than 30 of his businesses in December 2017 and June 2018, accusing him of leveraging his friendship with former Congo President Joseph Kabila to secure lucrative mining deals.

The New Arab Staff & Agencies
20 February, 2022

Cabinet minutes said President Felix Tshisekedi directed the justice ministry to analyse and sign the memorandum as soon as possible 
[AMANUEL SILESHI/AFP/Getty-archive]

The Democratic Republic of Congo is close to a deal with Fleurette Group, controlled by Israeli investor Dan Gertler, that could enable it to recover mining and oil assets worth about $2 billion, minutes of a cabinet meeting showed on Saturday.

The minutes of the Friday meeting said a commission set up to negotiate with Fleurette Group had concluded terms of a memorandum of understanding (MoU) which would also enable the government to recover a substantial part of royalties from the Kamoto Copper Company that were ceded to the group.

The minutes said President Felix Tshisekedi directed the justice ministry to analyse and sign the MoU as soon as possible to enable Congo to recover full possession of the mining and oil assets.

Fleurette Group could not be reached for comment.

The US Treasury imposed sanctions on Gertler and more than 30 of his businesses in December 2017 and June 2018, accusing him of leveraging his friendship with former Congo President Joseph Kabila to secure lucrative mining deals.

Gertler denies any wrongdoing.

Anti-corruption group Congo is Not for Sale (CNPAV), which has previously warned the mineral-rich country could lose out on $1.76 billion in potential royalty payments from copper and cobalt mining deals with Gertler's Group, said in a statement the potential MoU was a first step.

"For years we have been screaming loud and clear that Congo has already lost billions due to deals with Dan Gertler and it will only get worse if nothing is done," CNPAV spokesman Jean-Claude Mputu said in a statement.

He added there were still some crucial aspects of the deal to be clarified, particularly details of the MoU, and the final destination of the assets that will be recovered.

(Reuters)
Israel arrested countless Palestinians for 'no reason' during Lebanon war, ex-top Shin Bet agent says

Israeli forces would arrest Palestinians in Lebanon during the war between Tel Aviv and Beirut in the 1980s "for no reason", a former senior member of Israeli intelligence agency Shin Bet has said


The New Arab Staff
20 February, 2022

Former top Shin Bet official Haim Rubovitch left the agency in 2005 [AFP via Getty]

Israel's security service Shin Bet would arrest Palestinians in Lebanon during the Lebanon War in the 1980s "for no reason", a former senior member of the agency has told Haaretz.

Haim Rubovitch, formerly the third-most senior member of Shin Bet, made the admission in a series of conversations with the Israeli news outlet published earlier this week.

Rubovitch was a case officer at the time of the war, in charge of the Rashidiya refugee camp - one of the largest Palestinian refugee camps in Lebanon at the time.

"We made arrests in crazy numbers. We filled the Ansar detention camp to capacity," Rubovitch said.

"Throw a stone and you would hit a wanted person. We arrested countless people for no reason,” he said.

The Lebanon war began when Israel invaded southern Lebanon in 1982 as part of its war with the Palestinian Liberation Organisation (PLO).

The war lasted three years, and included the massacres at the Palestinian refugee camps of Sabra and Shatila, conducted by the Lebanese Phalangist militia and aided by Israeli forces.


"The truth is that the only way to survive in Lebanon in those years was for someone to join an armed militia," Rubovitch said of the situation for Palestinians at refugee camps.

Israel made a "mistake" when it did not ally itself with Lebanese figures linked to Amal, then the biggest and most influential Shia militia in Lebanon, he said.

Hezbollah, now the biggest Lebanese militia and bitter enemy of Israel, was founded in 1982.

Rubovitch said left the agency in 2005 because he had grown tired of the security sector, and had progressed as far up the chain of command as he possibly could have.

On recent events, Rubovitch said "a line was crossed" when the Israeli government last year allowed Shin Bet to use mobile phone tracing to curb the spread of the Covid-19 variant.

Shin Bet used the same technology to track down Palestinians amid unrest over Israeli incursions on the Al-Aqsa Mosque in Jerusalem. Text messages were sent to Palestinians, warning: "We will hold you accountable".
BILLIONAIRE BANANA REPUBLIC

Bukele to propose granting Salvadoran citizenship to foreign investors


SAN SALVADOR (Reuters) - El Salvador President Nayib Bukele on Sunday said he will send Congress a proposal to grant citizenship to foreigners who invest in the Central American country as well as other initiatives to reduce government hurdles in order to attract investment projects.

Bukele did not specify whether the bills would be aimed exclusively at bitcoin-linked entrepreneurs, but during the week he referred to El Salvador as "the land of #Bitcoin freedom."

"I'm sending 52 legal reforms to congress to remove red tape, reduce bureaucracy, create tax incentives, citizenship, in exchange for investments, new securities laws, stability contracts, etc," Bukele said on Twitter.

El Salvador in September became the first country in the world to establish bitcoin as legal tender, in parallel to the U.S. dollar, a decision that has triggered criticism from the International Monetary Fund (IMF) for the volatility and risks involved in the country's finances.

Bukele plans to launch 1 billion in bitcoin bonds in March with the aim of raising funds to finance the construction of a "Bitcoin City" project and buy more cryptocurrencies.

(Reporting by Nelson Renteria; Writing by Drazen Jorgic; Editing by Mark Porter)
The long, bloody history of proxy wars should be a warning to Johnson in Ukraine


It’s easy to see the prime minister starting a western-backed insurgency that, knowing him as we do, he will not finish

‘If you yourself decline to bloody your hands, should you really be egging on others to do so?’ Ukrainian civilians in military training on Sunday. 
Photograph: EyePress News/Rex/Shutterstock

Simon Tisdall
Sun 20 Feb 2022 

Indications that Britain and the US are secretly preparing to arm resistance fighters in Ukraine in the event of an invasion should raise red flags, and not just of the Russian variety. The effectiveness and wisdom of intervening in other people’s conflicts by proxy, however vital the principle and however seemingly justified the cause, are open to serious question, as much of cold war-era history suggests.

Mere mention of the word “resistance” conjures up, in some British minds at least, images of gallant bicyclists in berets, night-time airstrips lit by torches, and furtive wireless operators valiantly plotting to thwart the “Boche”. The recent film Munich: the Edge of War, in which “good” Germans conspire against “bad” ones, is a reminder that things are usually more complicated. Resistance has many faces.

Tentative plans under discussion in Washington and London to supply weapons and other military equipment to Ukrainians who object to Kremlin-enforced regime change presuppose that Vladimir Putin, Russia’s president, will launch the long-anticipated invasion and succeed in overthrowing Kyiv’s elected government. Neither eventuality is a given. Putin may continue indefinitely to mess with western heads. An invasion could be repelled.

Yet since Joe Biden, the US president, and Boris Johnson, his little trumpet boy, seem convinced the worst will happen – the “biggest war in Europe since 1945”, in the British prime minister’s melodramatic words – it’s only logical to assume the secret talks about post-invasion strategies acquired a new urgency. Jake Sullivan, the US national security adviser, reportedly briefed Congress last week on plans to deliver additional lethal aid to Ukrainians.

In truth, it’s not even a big secret. “In discussions with allies, senior Biden officials have made clear that the CIA (covertly) and the Pentagon (overtly) would both seek to help any Ukrainian insurgency,” the New York Times reported last month. Asked recently whether Britain would arm resistance fighters, Johnson replied: “It’s possible, I don’t want to rule this out.”

Most public opinion undoubtedly sympathises with the Ukrainian citizens contemplating the destruction of their country’s independence and democracy at the point of a gun. Understandably, many people’s gut instinct would be to resist by all means possible. All the same, officially encouraging what could quickly turn into an extremely violent, long-running, possibly unwinnable struggle requires careful, calm consideration.

It’s easy to agitate for a fight when someone else is doing the fighting and when it’s happening a long way away. There’s a moral issue here: if you yourself decline to bloody your hands, should you really be egging on others to do so? If that does not give pause, then think about the practical implications.

By helping Ukrainian guerrillas or freedom fighters or people’s militias (the terminology alone is problematic) to kill Russian soldiers, the US and Britain would, in effect, be waging a proxy war against Russia. Russia would know this. Would it passively accept it? Or would it return fire in similarly unpleasant, asymmetrical and hybrid ways? Of course it would. Has Johnson thought about that?


Then again, western powers are pretty hopeless at fighting proxy wars via resistance groups. Think of Ronald Reagan’s disastrous Contra war in Nicaragua in the 1980s. Think of the Cuban Bay of Pigs, or how Iraq’s Shias and Kurds were urged to revolt in 1991 by George HW Bush and subsequently betrayed. Saddam Hussein slaughtered them by the thousand. Western politicians, prating about principle then as now, utterly failed them.

Resistance groups can be hard to control. They travel unexpected paths. The most notorious example is Afghanistan, where some US-armed mujahideen groups fighting the post-1979 Soviet occupation went on to create the Taliban, who turned on their creators like Mary Shelley’s monster. Perhaps Johnson, unlike the former Texas congressman Charlie Wilson, who was behind the US covert mission, knows what he’s doing. Or is he, in familiar style, already making promises to Ukrainians he cannot and will not keep?

Proxy wars often do more harm than good, and western powers are not their only proponents. Consider the misery inflicted upon Yemen’s desperate people by the proxy fight between regional rivals Iran and Saudi Arabia. History is littered with examples of countries where liberators, in overthrowing oppression, became oppressors. Look at Iran, look at Angola.

The contrary argument, of course, is that each case is different. Ukraine is different. And so it is, at present. But a western-backed insurgency there could easily morph into civil war, spread to the neighbouring Baltic republics and elsewhere, and become in time a head-on, undisguised, unlimited confrontation with Russia. It’s easy to see Johnson starting such a fight. Knowing him as we do, it’s hard to see him finishing it.

Ukraine needs all the support it can get at this moment of enormous, looming trauma. But the best way to help – if it is generally agreed that is the right thing to do – is not to start a potentially endless dirty war of assassinations, bombings, midnight terror, disappearances, bottomless abuses, broken families and broken hearts.

If Johnson and Biden truly want to make a difference – and ensure Putin backs off – they should assume the risk themselves, by offering full Nato membership to Ukraine’s government while it still has one. Don’t send out young Ukrainians to fight and die for democracy and freedom while you sit at home, declaring how terrible it all is.

Stand up for what you say you believe, or pipe down.

Simon Tisdall is a foreign affairs commentator

Women Dominate Team USA’s Medal Count at Beijing Olympics

(Bloomberg) -- By the time the closing ceremony ended at the 2022 Beijing Olympics, women were responsible for winning the majority of Team USA’s 25 medals.

Female athletes on Team USA took home 17 medals, the most by any nation at the winter Games, with 13 from women’s events and four more in mixed-gender competitions. That included gold and silver medals in the inaugural monobob event by Kaillie Humphries and Elana Meyers Taylor, respectively. Women also dominated the snowboarding events: Chloe Kim cemented her gold in the women’s halfpipe event, Lindsey Jacobellis won gold for women’s snowboard cross, and Julia Marino took home silver for women’s slopestyle.

Even so, all the success at the Olympics is just “a veneer of gender equality’’ that hides issues that can plague women athletes, from a lack of funding to outsized scrutiny on social media platforms by viewers at home, said Michele Donnelly, a sports management professor at Brock University in Ontario. She said medal numbers alone aren’t proof of parity at the Olympics, where an estimated 45% of all athletes in Beijing were women.

“We get a really skewed sense of how far the Games have come in terms of gender equality,” Donnelly said. “We celebrate the wins and we don't often have the conversation about the fact that they're in spite of the much more limited resources that women's sports are receiving.”

For female athletes in particular, a lack of monetary support at the Olympic level can echo the disparate funding available to organizations such as the WNBA, the National Women’s Soccer League and the Premier Hockey Federation, especially when compared to their male counterparts. 


Though members of Team USA are not paid to participate n the Games, they can receive cash prizes from the U.S. Olympic and Paralympic Committee for each medal they bring home. Some athletes have lucrative endorsement deals that match their superstar status — Kim has deals with companies including Nike Inc., Toyota Motor Corp. and Monster Beverage Corp. — while others have day jobs that may or may not overlap with their sport.

The Olympic Games tend to inspire more coverage of women’s sports than is typically in the mainstream, but the difference in the ways each sport is judged can send subliminal messages to viewers about the relative skill of athletes overall. Five female skiers on Feb. 8 were disqualified from competing in the mixed-team ski jumping event due to uniforms that were considered too baggy, and some events task female athletes with different courses than male athletes. These regulations can incorrectly signal to viewers that female athletes are performing at a less elite level than men are — when, make no mistake, they are all at the same Olympic Games. 

While Donnelly is heartened by the gains made by female athletes and their teams in recent years, she cautions against potential backsliding due to complacency, as well as against treating this year’s gathering as milestone without looking at the broader context. There are fewer opportunities for women at the winter Olympics too, with 51 men’s events and 46 for women and 12 additional mixed-gender contests. Many sports, including bobsled and luge, allocate more spots for men than women.

“It's hard for me in 2022 to get excited about 45% of the athletes” being women, Donnelly said of the Beijing Games. “It's great that it is a higher number than ever before, but how are we not at, in its most basic definition, an equal number of athletes?”

©2022 Bloomberg L.P.