Tuesday, May 03, 2022

Sri Lanka’s Once-Lauded Health Care System Is Now Collapsing


(Bloomberg) -- As Sri Lanka’s worst economic crisis in decades took root, prompting medical shortages and halting surgeries, Kavindya Thennakoon knew she had to do something. Before boarding a flight from San Francisco to Colombo, the Stanford graduate and co-founder of a digital education app posted on social media and asked those running low on supplies to get in touch.

More than 50 requests later, Thennakoon packed three suitcases last month with 60 kilograms (132 pounds) of over-the-counter items for a hospital that had run out of basics, including surgical masks, glucose strips and supplements for new mothers. The most distressing requests were those that she couldn’t legally fulfill, such as cancer medication and injectable drugs for premature babies.

“Hearing from these complete strangers -- begging and saying, ‘I’m going to run out of supplies in a week or two days’ -- was very heartbreaking,” said Thennakoon, 27, a Sri Lankan who lives in California. “And to realize the country has come to that was even a worse feeling.”

For weeks, Sri Lanka’s once-lauded public health system, free to its 22 million people, has come to a near standstill. As the country’s economic meltdown drags on, surgeries are being postponed and hours-long power cuts have forced doctors to operate by torchlight. With Sri Lanka’s finances battered by the worst inflation in Asia and diminished foreign-currency reserves, hospitals, clinics and pharmacies are struggling to procure lifesaving drugs and medical equipment.

Without drastic measures, medical groups warn that import disruptions could lead to thousands of deaths. Public anger at the government is reaching a fever pitch: Sri Lankans have swarmed the streets of Colombo, the capital, protesting the lack of medicine and other goods, and demanding the resignation of embattled President Gotabaya Rajapaksa. To ease shortages, Sri Lanka’s diaspora is now flying in supplies to patients and doctors, though Theenakoon said these gestures were still little more than a “band aid.” 

Read More: A Powerful Dynasty Bankrupted Sri Lanka in Just 30 Months

Last month, the government warned of dwindling supplies of more than 100 medical items. Many are subject to price controls that haven’t kept pace with the local currency’s recent devaluations, making importers reluctant to ship in pharmaceutical goods at a loss. 

Channa Jayasumana, Sri Lanka’s health minister, told Parliament that some medications may remain out of stock for as long as three months. He said lines of credit needed to purchase medicine should have been opened in January, but they were only secured in April.

Currently about 140 types of medicine are widely out of stock. That figure may rise to 250 in the coming days, according to Ravi Kumudesh, president of the Academy of Health Professionals, a local union. “I have never seen this kind of situation in Sri Lanka,” he said.

Jayasumana and the country’s former health minister, Keheliya Rambukwella, who stepped down in April, didn’t respond to requests for comment.

Improvising Solutions

Some Sri Lankans have devised workarounds to bridge the deficits. 

Nisal Periyapperuma, 26, the co-founder of Watchdog, a Sri Lankan organization set up in 2019 to counter misinformation, said he was infuriated with the government’s sluggish response to meeting shortages. The crisis was brought into sharper focus in early April, he said, when his father suffered a heart attack.

“I’m kind of terrified,” Periyapperuma said. “Can we get the next set of drugs?”

Watchdog recently launched an online database called Elixir that collates and coordinates medical requests from hospitals, the government and other donors. At the top of the list are more than 17 million sodium valproate tablets needed to treat epilepsy and bipolar disorder, along with chemotherapy drugs and anesthetic.

Still, coordinating domestic stock is only one piece of the problem. Sri Lanka imports about 85% of its medical supplies and needs hard cash to bring them into the country.

“We don’t have enough foreign currency to actually clear these orders,” Periyapperuma said. “If you go to a pharmacy and try to buy something simple, like paracetamol, it’s a bit difficult. Very basic medical supplies are missing because most of these are not produced here.”

A Preventable Crisis

The scarcities mean that around half of all surgeries -- mostly routine operations -- have been postponed in Sri Lanka, according to Rukshan Bellana, president of the Government Medical Officers’ Forum, a union representing about 2,000 doctors.

His group blamed the government for not acting months ago to secure emergency supplies from neighboring countries like India, which is one of the main providers of pharmaceuticals to Sri Lanka. With fuel shortages, many health care workers can’t even get to work, he added. 

“It could have been prevented,” Bellana said in an interview at the Colombo South Teaching Hospital, where patients snaked around the entrance one recent morning. “You may not have drugs, you may not have the doctor’s staff -- but the patients keep coming.”

In the short term, Sri Lanka could get some relief. President Rajapaksa announced last week that the World Bank will provide $600 million in financial assistance, in part so the country can buy more drugs. The government has also recently signed a $1 billion credit line with India, which pledged to send medical goods to the island soon.

Read More: Stocks in Sri Lanka Rebound as World Bank to Grant Financial Aid

But even with these infusions, Sri Lanka faces shortages of single-use items such as intravenous lines, catheters and chemical diagnostic reagents, according to Bellana. And with long lead times to procure medical products from overseas, many clinics and hospitals are expecting a prolonged wait.

In northern Sri Lanka, where ethnic Tamil separatists waged a 26-year civil war, staff at the Teaching Hospital Jaffna are anxiously consulting international health organizations about depleted stocks of around 70 medical items. With only about a month’s supply left of anesthetic, the hospital has postponed all surgeries except maternity and emergency operations.

Even during the war, which ended in 2009, “we didn’t have this crisis,” said C. Jamnunanantha, 53, a doctor and deputy director at the hospital.

“We don’t know how long we can do it,” he added.

©2022 Bloomberg L.P.

DHS watchdog says Trump's agency appears to have altered report on Russian interference in 2020 election in part because of politics

By Priscilla Alvarez and Zachary Cohen, CNN
Tue May 3, 2022

In this Sept. 23, 2020, file photo, Department of Homeland Security acting Secretary Chad Wolf makes an opening statement at his confirmation hearing before the Senate Homeland Security and Governmental Affairs Committee on Capitol Hill in Washington. (Greg Nash/Pool Photo via AP, File)

Washington (CNN)Former President Donald Trump's Department of Homeland Security delayed and altered an intelligence report related to Russian interference in the 2020 election, making changes that "appear to be based in part on political considerations," according to a newly released watchdog report.

The April 26 Homeland Security inspector general's assessment provides a damning look at the way DHS' Office of Intelligence and Analysis dealt with intelligence related to Russia's efforts to interfere in the US, stating the department had deviated from its standard procedures in modifying assessments related to Moscow's targeting of the 2020 presidential election.

The conclusion that Trump's appointee appeared to have tried to downplay Russian meddling in a key intelligence report is the latest example of how his aides managed his aversion to any information about how Russia might be helping his election prospects. According to special counsel Robert Mueller's report, Trump officials tried to avoid the topic during meetings and at hearings, because he would become enraged and upset when Russian meddling came up.

The US intelligence community announced during the 2020 campaign that Russia was actively meddling in the election to weaken then-candidate Joe Biden. At the time, Trump downplayed those findings and promoted false claims about Biden that aligned with Russia's disinformation efforts. The IG report addresses past suspicions that Trump appointees distorted some intelligence reports to foster a more Trump-friendly narrative.

The watchdog found, for example, that then-acting Homeland Security Secretary Chad Wolf had participated in the review process "multiple times despite lacking any formal role in reviewing the product," which caused delays and may have helped create the "perception" that assessments were changed for political reasons.

"We determined that the Acting Secretary's involvement led to the rare occurrence of I&A ceasing dissemination of a product after it had already been approved by the mission manager and circulated via advanced notification," the report states.
"The delays and deviation from I&A's standard process and requirements put I&A at risk of creating a perception of politicization. This conclusion is supported by I&A's own tradecraft assessment, which determined that t
he product might be viewed as politicized," it continues.

The report stems from previous allegations of the Trump administration downplaying Russian interference. CNN first reported in September 2020 a whistleblower complaint alleging that top political appointees in DHS repeatedly instructed career officials to modify intelligence assessments to suit Trump's agenda by downplaying Russia's efforts to interfere in the US.

The whistleblower claimed that Wolf had instructed DHS officials to "cease providing intelligence assessments on the threat of Russian interference" and, instead, focus their efforts on gathering information related to activities being carried out by China and Iran.
The scope of the DHS IG report was limited to the single intelligence report in question.
Initially, the IG found, the DHS Intelligence and Analysis Office had followed internal drafting and editing processes. The report was two pages in length and related to one "'current Democratic presidential candidate'" and to Russian activities to influence the presidential election. It evolved over time after receiving internal input, according to the IG report.

The IG also followed up on a July 2020 meeting mentioned by the whistleblower, who claimed Wolf had asked for the product to be held because "'it made the President look bad.'"

According to notes of the meeting obtained by the IG, one top official wrote: "AS1 -- will hurt POTUS -- kill it per his authorities." The official told the IG the notes meant the acting secretary had told him to hold the product because it would hurt Trump and the authorities cited were in reference to those possessed by the secretary.

The IG's office interviewed Wolf, who denied saying this and added that he had asked for the product to be improved.

"I tried to put myself in the position of one of our state and local partners who would be reading this and I could not see where the product, as written on July 8, would have added any value or given them any knowledge they could use. ... The product was not well written," the acting secretary told the IG's office, according to the report.
The delays and disruptions, though, put the office at risk of creating the perception of politicization, the IG report states. The IG recommended working with the Office of the Secretary and I&A oversight entities to make sure election-related reports are in line with policies and guidelines. I&A agreed with the recommendation.

CNN's Marshall Cohen contributed to this report.

Amazon, Starbucks Union Organizers Invited to White House

(Bloomberg) -- Organizers of union drives at Amazon.com Inc. and Starbucks Corp. will visit the White House on Thursday, a show of support by the Biden administration for the movement to unionize workforces at the companies. 

Vice President Kamala Harris and Labor Secretary Marty Walsh will host Christian Smalls of the Amazon Labor Union as well as officials from unions organizing workers at Starbucks, outdoor retailer REI and the video game publishing company Paizo Inc. among others, according to a White House official. 

Harris and Walsh will talk to union officials about their efforts to organize their workplaces and how they can inspire other workers to join or form their own unions, according to the official. 

Read More: Amazon Fired and Disparaged Him. Then He Started a Labor Union

In the past couple of years, workers at several of those companies have been successfully signing up coworkers and petitioning the government to hold elections on forming or joining unions that can bargain with management for better working conditions.

Smalls’s upstart Amazon Labor Union last month won a historic victory in an election to represent Amazon workers at a warehouse in New York’s Staten Island. Amazon has contested the result. The union this week lost an election at a second, smaller Amazon facility across the street. 

Senator Bernie Sanders, a longtime critic of Amazon, has proposed banning federal contracts with companies that have allegedly violated U.S. labor laws and is holding a hearing Thursday on the matter. 

Earlier: Biden Warns Amazon ‘Here We Come’ After New York Union Vote 

Amazon workers lodged 51 unfair labor-practice complaints against the company in the first four months of this year, more than quadruple the number filed in the same period a year earlier. Most of the complaints came from Staten Island and Bessemer, Alabama, where a retail union is also seeking to organize an Amazon warehouse, alleging the company illegally retaliated against or monitored activists. There have also been complaints from workers in Florida, Nevada and Amazon’s home state of Washington.

Federal labor board prosecutors have found merit in some of the claims; Amazon has denied wrongdoing.

President Joe Biden has called himself the most pro-union president in U.S. history, but the White House has largely refrained from directly intervening in union drives. 

Nonetheless, Biden took aim at Amazon last month during a speech to the North America’s Building Trades Union. 

“By the way, Amazon, here we come,” the president said. “Watch. Watch.”

White House Press Secretary Jen Psaki later said Biden was not “sending a message that he or the U.S. government would be directly involved in any of these efforts or take any direct action.”

©2022 Bloomberg L.P.

 SISTER MALL TO WEST EDMONTON MALL

American Dream Mega Mall Lost $60 Million Last Year

(Bloomberg) -- American Dream, the struggling megamall close by the New Jersey Turnpike, lost about $60 million in 2021, according to a securities filing. 

The 3.5-million-square-foot shopping and entertainment complex, home to an indoor ski slope, amusement park and water park, generated about $173 million in revenue, mainly from attractions and rent. Expenses totaled $232.4 million, according to a three-page unaudited financial report. 

American Dream was walloped by the pandemic as successive waves of the coronavirus discouraged shoppers and tourists. Mall owner Triple Five Group is seeking a four-year extension to repay $1.7 billion in construction financing, Bloomberg News has reported.

The mall was 80% leased as of April 1, according to a separate filing. 

©2022 Bloomberg L.P.

CAPITALI$M IS CRISIS

Titans Talking Crises at Milken Conference Hit Afresh With Flash Crash News

(Bloomberg) -- As the billionaires and mere multimillionaires flocked this week to Beverly Hills, California, there was no shortage of concerns to discuss: Russia’s invasion of Ukraine, surging inflation, recession risks, supply-chain woes, the lingering pandemic.

Then, as the Milken Institute’s Global Conference was barely underway, European stocks experienced a rare flash crash when a trader on Citigroup Inc.’s London desk made an error inputting a transaction. Executives at the event cited the incident as a symptom of fragility in financial markets, with bank balance sheets stretched in the wake of post-2008 regulations.

“There is more trading going on and markets are bigger, yet banks have less balance sheet,” Jason Brady, president and chief executive officer of Thornburg Investment Management Inc., said on the sidelines of the conference. “You’re going to see more and more crazy things. What you’re seeing is an increasing number of flash crashes across markets.”

The trading shock was followed later in the day by more surprising news: Abortion rights in the U.S., in place for almost a half a century, were poised to be struck down. Already the topic had been a point of discussion at the conference, with Citigroup CEO Jane Fraser asked about divisive cultural issues including the bank’s coverage for out-of-state abortion travel. “We have 220,000 employees -- we listen to them, what are their concerns, what are their needs, and the same with our customers,” she said in a Bloomberg Television interview Monday afternoon. 

A few hours later, during a conversation, one financier stopped mid-sentence, not sure the breaking Roe v. Wade story his son had just texted him was even real. On Tuesday, a biotech investor said she skipped several morning panels because friends and colleagues were contacting her about the Supreme Court’s plans. 

Even with the myriad concerns both domestic and global -- concerns that were discussed, questioned, fretted over and even, at times, joked about during speeches, panel discussions and meals -- the investors, dealmakers, politicians and power brokers in attendance found time for levity too. It was, after all, the first time that the confab, now in its 25th year, has returned to its standard spring schedule since the pandemic began. After being grounded for much of the Covid-19 crisis, the titans were ready to cut loose.

The Milken Institute’s founder, Michael Milken, and wife Lori were in the front row of the Beverly Hilton’s ballroom Monday night as David Foster, Katharine McPhee, Vonzell Solomon, the Tenors and other performers sang tunes including Whitney Houston’s “I Have Nothing” and Neil Diamond’s “Sweet Caroline,” while Tiffany Haddish offered a surprise rendition of “Proud Mary.”

Before Haddish’s number, Chris Tucker took a turn on stage.

“I’ve never seen so many rich people in my life,” the comedian said. “I’ve never heard people talk money all day long,” he added. “Look at y’all making money right now -- he just crossed his legs, he made a million dollars,” he said, pointing out hedge fund manager Jeffrey Feinberg, seated in the front row.

Michael Milken, who founded the Milken Institute in the early 1990s, worked at Drexel Burnham Lambert in the 1980s before he was convicted for securities fraud, sent to prison and banned from the securities industry for life. Former President Donald Trump pardoned him in 2020. 

Goldman, Apollo

Elsewhere Monday night, the on-again couple Jennifer Lopez and Ben Affleck were expected at a Goldman Sachs Group Inc. party, Apollo Global Management Inc. had an event on the rooftop of the Waldorf Astoria Beverly Hills and Ares Management Corp.’s Tony Ressler and controversial German financier Lars Windhorst hosted gatherings at their respective homes.

And the flash crash didn’t stop Citigroup from partying as well. On Monday evening, former Vice Chairman Ray McGuire mingled with bank clients on a nearby rooftop terrace, with sushi and chicken sliders available for snacking. Guests departing the Citigroup-hosted event were given water with electrolytes to fight potential hangovers.

Over the weekend, Napster co-founder Sean Parker threw a dinner attended by Carlyle Group Inc.’s David Rubenstein and executives from General Motors Co., Kroger Co. and other companies. Other weekend events included a gathering at the art-filled home of one-time Walt Disney Co. President Michael Ovitz -- attended by Jim Messina, deputy chief of staff under President Barack Obama, and about 40 others -- and a dinner at Point 72 Asset Management founder Steve Cohen’s house co-hosted by former U.S. Treasury Secretary Steve Mnuchin.

Even with all the partying, global concerns were inescapable. One London-based mezzanine-debt investor who’s been to several Milken conferences said the mood seemed notably more somber this year, given market volatility and recession expectations, and that it felt harder to revel in the excess than in past years.

Cyber Threats

One senior Wall Street executive, during a conversation in the hallways of the Beverly Hilton, said industry leaders have been receiving regular classified security briefings and are fielding warnings about escalating cyber threats against the financial system. Even poolside -- a site for relaxation much of the year, but a place for Apollo co-founder Leon Black to meet with Trian Partners’ Nelson Peltz and Ed Garden during Milken -- talk turned to Ukraine.

At the cabanas, one financier who’s been in the industry for decades and has attended several past Milken events said he’d just come from a meeting where former oil tycoon Mikhail Khodorkovsky talked about the decade he spent jailed, the steps Russian President Vladimir Putin would need to take to implement a nuclear attack and the likelihood of defection among his deputies. The financier called it one of the most interesting conversations he’s ever had.

As in past years, activists descended on the Milken conference as well to seek attention for their causes. Speakers at a social-impact panel Tuesday morning, entitled “Where Values Meet Value: Doing Well by Doing Good,” had to contend with the sound of United Steelworkers protesters outside. “Hey, Chevron, you’re no good, treat your workers like you should,” they chanted, demanding better contracts.

And the Covid-19 pandemic and its attendant infection risks lingered as well. Still, attendees largely went maskless, with only a few people in one room of 50 using face coverings. The Milken Institute did provide masks to those wanting them. And Michael Milken himself wore one as he walked around the conference -- one of the few people to do so.

©2022 Bloomberg L.P.

PURE SPECULATION NO REAL VALUE

Buyers in the $320 Million ‘Otherdeeds’ NFT Sale Are Underwater

(Bloomberg) -- Many purchasers of Otherdeeds, the virtual land that sparked a buying frenzy last weekend and led to skyrocketing transaction fees on Ethereum, are underwater as prices dropped after the initial euphoria wore off. 

Yuga Labs, the creator of the popular Bored Apes Yacht Club collection of NFTs, helped raise approximately $320 million on Saturday from a sale of Ethereum-based Otherdeeds NFTs, making it the biggest sale of its kind. Each purchaser paid $5,800 per NFT, plus as much as $6,000 in transaction costs or “gas fees,” which together added up to a total of roughly 4.21 Ether at current prices. 

Buyers, earlier today, could pay as little as 3.6 Ether for these NFTs on OpenSea, the world’s biggest NFT marketplace. Many buyers selling their NFTs at that price could lose $1,700 per transaction. 

“I think the Otherdeeds sale was botched, leading to user backlash,” said Aaron Brown, a crypto investor who writes for Bloomberg Opinion. “It remains to be seen whether it can recover user trust and enthusiasm.”

The drop has also prompted backlash from Twitter fans who had snapped up the NFTs.

The NFT market is volatile. NFT transactions in Decentraland, a platform where users can buy and sell virtual plots of land, are down 37% over the last 30 days, according to tracker DappRadar. NFTs have also struggled in secondary markets, and sometimes, in primary markets as well. One in three NFT collections, on average, have little to no trading activity, according to blockchain analytics firm Nansen. Another third are trading below the amount it cost issuers to mint the tokens. 

Trading volume for Otherdeeds is down 68% on Tuesday from a day earlier, despite it being the most traded NFT collection over a 24-hour window, according to DappRadar. The number of traders -- though in the thousands -- has dropped by half as well.

Each Otherdeed represents a plot of land. Some parcels feature mountains and brooks while others are made of what appear to be precious stones. The land is expected to be used in the upcoming Otherside metaverse game. Holders of the ApeCoin token who verified their identities jockeyed to buy deeds for 55,000 parcels of virtual land over the weekend. ApeCoin’s price skyrocketed last week, in anticipation of the sale, before it declined.

©2022 Bloomberg L.P.

Crypto Crowd’s Secret Gala Convenes Outside the Gates of Milken

(Bloomberg) -- No name tags and by invitation only, an exclusive cryptocurrency crowd is gathering behind closed doors at the Waldorf Astoria’s Jean-Georges restaurant in Beverly Hills.

It’s Medici LA 22, an event set up to connect crypto entrepreneurs and institutional investors amid the ballooning popularity of digital assets. The who’s who of crypto are attending, with Mike Novogratz, chief executive officer of Galaxy Digital, Anatoly Yakovenko, co-founder of Solana and Rostin Behnam, chairman of the Commodity Futures Trading Commission, among the 130 or so at the two-day meeting. The goal is to generate “actionable investment ideas” in the digital asset world, according to a copy of the conference’s program seen by Bloomberg News.

And by all accounts, tickets for the event are hard to come by. A few hundred meters away, a separate confab is in full swing but some participants at the Milken Global Institute Conference -- a mainstay event for the U.S. investing world -- are wondering how they can get access to the parallel cryptocurrency gig. 

That’s even as Milken hosts its own digital asset offering -- perhaps its most expanded yet -- with several crypto-related panels, including two on the metaverse and one on digital nationalism. Crypto executives, investors and developers such as Brian Armstrong, CEO of Coinbase Global Inc. attended at the Beverly Hilton.

Other participants at Medici, which began on Monday at a separate hotel, include Kanav Kariya, president of Jump Crypto, Mary-Catherine Lader, chief operating officer of Uniswap Labs, Adam Jackson, CEO of Braintrust and Mihailo Bjelic, co-founder of Polygon. Attendees, who don’t have to wear name tags, are discussing scaling and infrastructure, markets and DeFi, web3 and regulation and policy. Medici events are free for invited guests, according to the program. 

The Medici Network was set up about five years ago by Adam Winnick, founding partner of Finality Capital Partners and an early entrant into the crypto world. Winnick started his career on Wall Street at CIBC working on high-yield financing, according to his profile on LinkedIn. Michael Milken, the Milken Institute’s founder and billionaire “Junk Bond King” helped turn high-yield debt from a backwater of risky corporate debt into a trillion-dollar market. High-yield bonds had inspired Winnick, he said.

“At the time, high-yield bonds were a novel asset class that institutions could not buy. They were, however, an invaluable financial instrument for founders building new networks cable, mobile, fiber optics,” he said in the conference’s program. “Today, tokens are the novel instrument that are bootstrapping a whole new group of networks and we are proud to support that effort.”

©2022 Bloomberg L.P.

 

Watch: Russian state TV threatens to destroy Wales with giant tidal wave in bizarre video

03 May 2022 

Russian state TV has shown Wales being destroyed by a giant CGI tidal wave in a bizarre video.

A programme on Channel One presented by Dmitry Kiselyov suggested that one of the Russian navy’s submarines could shoot an underwater nuclear drone that would create a tidal wave large enough to completely engulf Wales and the rest of the British Isles.

It claims an explosion from the 100 megatonne warhead would cause a “gigantic tsunami wave up to 500m high”. Wales has 118 peaks over 600m.

The video ends by showing just the sea where Ireland and Britain used to be, without any suggestion as to how the tidal wave has dragged the entire landmass underwater.

Showing the simulation, the presenter says in the clip: “Another option is to plunge Britain into the depths of the sea using Russia’s unmanned underwater vehicle Poisedon.

“It approaches its target at a depth of 1km at a speed of 200km/h. There’s no way of stopping this underwater drone. The warhead on it has a yield of up to 100 megatonnes.

“The explosion of this thermonuclear torpedo by Britain’s coastline will cause a gigantic tsunami wave up to 500m high.

“Such a barrage alone also carries extreme doses of radiation. Having passed over the British Isles, it will turn what might be left of them into a radioactive desert.”

‘Reality’

Irish Taoiseach Micheál Martin has already called on the Russian government to apologise for the clip, which only mentions plunging Britain “into the depths of the sea” and makes no mention of the Republic of Ireland.

“It’s very sinister, intimidatory-type tactics by the Russian Federation but I don’t think anyone’s going to be intimidated by it. I think it reflects a mind-set that is worrying and not in touch with reality,” he said.

Political parties in Wales have been united in their condemnation of Russian’s invasion of Ukraine, supporting sanctions on Russia and measures that help Ukraine.

Wales has become a ‘super sponsor’ of Ukrainian refugees and the Senedd has passed legislation to exempt Ukrainians from charges when using health services that would otherwise apply to overseas visitors.

Japan’s Mitsui takes loss on Russian Arctic LNG stake

The company has not yet made a decision on its continued involvement in the Arctic LNG 2 project, its leader said.

1
The logo of Japanese trading company Mitsui & Co. is seen in Tokyo on January 10, 2018. (Toru Hanai / Reuters File Photo)

TOKYO — Japanese trading house Mitsui & Co Ltd booked a 20.9 billion yen loss on liquefied natural gas business in Russia in the January-March quarter, the company said on Friday, including loss tied to its stake in the Arctic LNG 2 project.

The company has not made a decision about its future involvement in the project, its CEO said.

Mitsui reported a record full-year profit on Monday as soaring metals and energy prices offset  its losses in Russian LNG amid the deepening Ukraine crisis.

“All business segments have performed well, with an overall profit reaching a significant new record high,” Mitsui Chief Executive Officer Kenichi Hori told a news conference.

Net profit for the year through March 31 surged 173 percent from a year earlier to 914.7 billion yen ($7 billion), beating its February forecast of 840 billion yen, as higher prices of iron ore, coal and gas tripled its earnings from metals and energy operations.

After reassessing fair value of its Sakhalin-2 and Arctic-2 projects to reflect a downgrade of the Russian government’s credit rating, Mitsui wrote down 80.6 billion yen on those assets and posted the one-off loss, it said.

As a result, Mitsui’s outstanding investments, loans and guarantees for its LNG business in Russia came to 404.7 billion yen as of the end of March, against 430 billion yen as of end-December.

“We’ll continue our involvement in the Sakhalin-2,” Hori said, adding the project, in which it owns 12.5 percent stake, is important for Japan’s energy supply.

Energy giant Shell in February said it would exit all its Russian operations, including the Sakhalin-2, after sanctions tightened on Moscow.

[Arctic projects must not be postponed because of sanctions, Putin orders]

The Arctic-2 is continuing as there has been no formal decision to change the plan, Hori said, even though its partner TotalEnergies has recorded an impairment of about $4.1 billion partly related to the project.

“Still, there is a good chance that various circumstances will change the project’s plan and if that happens, we’ll make an announcement after reviewing the situation and confirming what needs to be confirmed among the partners,” Hori said.

France’s Technip said last week that sanctions could have a serious impact on the project.

For the year through next March, Mitsui forecast a 13 percent decline in net profit to 800 billion yen, beating a mean forecast of 738.7 billion yen of 11 analysts, according to Refinitiv data.

“While we expect some commodity markets, such as iron ore, to normalize, we aim to achieve strong earnings that is roughly on par with the previous year by strengthening our earnings base in areas that are less susceptible to market conditions,” Hori said.

WAR IS LOOTING AND PILLAGING
Russians already stolen several hundred thousand tonnes of Ukrainian grain 


Russian invaders have already exported several hundred thousand tonnes of grain from the temporarily occupied territories in Luhansk, Donetsk, Kherson and Zaporizhzhia regions.

First Deputy Minister of Agrarian Policy and Food of Ukraine Taras Vysotskyi announced this during a nationwide telethon on Ukrainian TV channels, Ukrinform reports, referring to the ministry’s page on Facebook.

"The Russians are using the tactics of the early twentieth century to steal grain and export it from Ukraine. Today we have confirmed facts that several hundred thousand tonnes of grain have already been exported from Kherson, Zaporizhzhia, Luhansk and Donetsk regions," he said.

According to Vysotskyi, there are about 1.5 million tonnes of grain in these territories in the farm stocks accumulated for sowing and processing (for making flour, baking bread).

"This is a significant stock. At international prices, it costs hundreds of millions of dollars. And there is a great risk that it will simply be stolen and taken away in favor of Russia," said the deputy minister.

As reported, the website of the Legislative Assembly of Krasnoyarsk Krai of the Russian Federation published a text about plans to "expropriate the surplus harvest of farmers in Kherson region."

Verkhovna Rada Commissioner for Human Rights Lyudmila Denisova said that Russian aggressors were exporting grain and food products from the temporarily occupied territories.

In this regard, Ukraine demands that Russia stop the illegal theft of grain, unblock Ukrainian ports, restore freedom of navigation and allow passage of merchant ships, and calls on the international community to strengthen economic sanctions in order to stop Russia's armed aggression against Ukraine.