Friday, July 04, 2025

TRUMP SELLS OUT UKRAINE
Putin hits Ukraine with largest barrage of war after Trump call

By AFP
July 4, 2025


Flames and smoke billow from buildings during a mass Russian drones and missile strike on the Ukraine's capital - Copyright AFP OLEKSII FILIPPOV

Victoria LUKOVENKO and Barbara WOJAZER

Russia launched its largest-ever drone and missile attack on Ukraine overnight on Friday just hours after a telephone call between US and Russian presidents ended without any breakthrough.

AFP journalists in the capital heard drones buzzing over Kyiv and explosions ringing out as Ukrainian air defence systems fended off the attack.

President Donald Trump said he had made no progress with Vladimir Putin on ending the war in a call, as the Kremlin insisted Russia would pursue its war aims.

Ukrainian President Volodymyr Zelensky said the air alerts had begun echoing out across the country as reports of the presidents’ call emerged.

“Yet again, Russia is showing it has no intention of ending the war and terror,” Zelensky said on social media.

“All of this is clear evidence that without truly large-scale pressure, Russia will not change its dumb, destructive behaviour,” he added, urging the United States in particular to ramp up pressure on Moscow.

He said that 23 people were wounded in the Russian barrage that the air force said included 539 Russian drones of various types and 11 missiles.

A representative of Ukraine’s air force told Ukrainian media that the attack was the largest of the Russian invasion.

– ‘Complete disregard’ –


Overnight Russia attacks have escalated over recent weeks. An AFP tally shows Moscow launched a record number of drones and missiles at Ukraine in June, as direct peace talks between Kyiv and Moscow appeared to stall.

“Putin clearly shows his complete disregard for the United States and everyone who has called for an end to the war,” Ukrainian Foreign Minister Andriy Sybiga wrote on social media after the attack.

In Kyiv, AFP journalists saw dozens of residents of the capital taking shelter in a metro station.

Russian attacks escalated as concerns mount in Kyiv over continued delivery of US military aid, which is key to Ukraine’s ability to fend off the drone and missile barrages.

The US announced this week that it was reducing some deliveries of military aid to Ukraine, in what EU chief Ursula von der Leyen said was a clear signal that the bloc needed to “step up”.

Trump’s view of the call with Putin was unusually bleak. After most of his previous five calls with Putin since returning to power in January he has given optimistic reports of progress towards a deal.

But he has shown increasing frustration with Putin after an early pivot towards the Russian leader.

Ukraine has also ramped up its drone strikes in Russia, where a woman was killed when a Ukrainian drone crashed into an apartment building, the region’s acting governor said.


Zelensky says Russia's record aerial attack on Ukraine shows Putin's 'disregard' for US, peace


Russian drones pummelled Kyiv in an all-night attack that wounded at least 23 people, set buildings and cars ablaze and damaged railway infrastructure across the city, Ukrainian authorities said Friday. Ukrainian President Volodymyr Zelensky said the massive aerial assault shows Putin's "disregard" for the US and for peace.


Issued on: 04/07/2025 -
By:  FRANCE 24

Firefighters work at the site of the Russian drone and missile strike, amid Russia's attack on Ukraine, in Kyiv, Ukraine July 4, 2025. 
© Press service of the Ukrainian state emergency services in Kiev via Reuters.


Russia pummelled Kyiv with drones in an all-night attack, injuring at least 23 people, damaging railway infrastructure and setting buildings and cars on fire throughout the city, authorities in the Ukrainian capital said early on Friday.

Air raid alerts lasted more than eight hours overnight with several waves of attacks, with Russia launching a total of 539 drones and 11 missiles targeting the Ukrainian territory, Ukraine's Air Force said.

"The main target of the strikes was the capital of Ukraine, the city of Kyiv!" the Air Force said in a post on the Telegram messaging app.

Fourteen of the injured were hospitalised, Kyiv's Mayor Vitaly Klitschko said on Telegram.

Damage was recorded in six of Kyiv's 10 districts on both sides of the Dnipro River bisecting the city and falling drone debris set a medical facility on fire in the leafy Holosiivskyi district, Klitschko said.

The Polish embassy was also damaged, though nobody was hurt.

"In a massive (Russian) attack on Kyiv, the building of our embassy's consular section was damaged," Polish Foreign Minister Radoslaw Sikorski wrote on X. "I just spoke with Ambassador Lukasiewicz; everyone is safe and sound. Ukraine urgently needs air defence resources."

Sikorski also called on US President Donald Trump to restore supplies of anti-aircraft ammunition to Ukraine.

"President Trump, Putin is mocking your peace efforts," Sikorski wrote on X. "Please restore supplies of anti-aircraft ammunition to Ukraine and impose tough new sanctions on the aggressor."


The attacks were the latest in a series of Russian air strikes on Kyiv that have intensified in recent weeks and included some of the deadliest assaults of the war on the city of three million people.

US President Donald Trump said that a phone call with Russian President Vladimir Putin on Thursday resulted in no progress at all on efforts to end the war in Ukraine, while the Kremlin reiterated that Moscow would keep pushing to solve the conflict's "root causes".

"I'm very disappointed with the conversation I had today with President Putin, because I don't think he's there, and I'm very disappointed," Trump told reporters on his return to Washington from a trip to Iowa.

"I'm just saying I don't think he's looking to stop, and that's too bad."

A decision by Washington earlier this week to halt some shipments of critical weapons to Ukraine prompted warnings by Kyiv that the move would weaken its ability to defend against intensifying airstrikes and battlefield advances.

Ukrainian President Volodymyr Zelensky said the massive aerial assault shows Putin's "disregard" for the US and for peace.

"For every such strike against people and human life, they must feel appropriate sanctions and other blows to their economy, their revenues, and their infrastructure," Zelensky said on X, calling the attack "deliberately massive and cynical".

"Yet again, Russia is showing it has no intention of ending the war and terror," he added.

The Ukrainian leader is expected to speak to Trump by phone about the supply of US weapons on Friday afternoon, a senior Ukraine official told AFP.

Ukraine's state-owned railway Ukrzaliznytsia, the country's largest carrier, said on Telegram that the attack on Kyiv damaged railway infrastructure in the city, diverting a number of passenger trains and causing delays.

Reuters witnesses heard strings of explosions and constant barrages of fire in Kyiv overnight as air defence units tried to down the drones.

Social media videos showed people running to seek shelter, firefighters fighting blazes in the dark and ruined buildings with windows and facades blown out.

Ukraine's Air Force said that it had destroyed 478 of the air weapons Russia launched overnight. Enemy air strikes were recorded in eight locations across the country with nine missiles and 63 drones, it added.

Late on Thursday, Russian shelling killed five people in and near the eastern Ukrainian city of Pokrovsk, a key target under Russian attack for months, Ukraine said.

Both sides deny targeting civilians in the war that Russia launched with a full-scale invasion on Ukraine in February 2022.

But thousands of civilians have died in the conflict, the vast majority of them Ukrainian.

(FRANCE 24 with Reuters and AFP)


Putin says he won't back down from Ukraine goals in hour-long call with Trump


Russian President Vladimir Putin on Thursday told his US counterpart Donald Trump that Moscow would not give up on its war aims in Ukraine during a lengthy phone call – their sixth publicly disclosed chat this year – that also touched on Iran and the Middle East.


Issued on: 03/07/2025 - 
By: FRANCE 24

File photo of the Russian and US leaders attending a G20 summit in Hamburg in July 2017, during President Donald Trump's first term in office. © Saul Loeb, AFP

Russian President Vladimir Putin told US President Donald Trump in a phone call on Thursday that Moscow wants a negotiated end to the Ukraine war but will not step back from its original goals, a Kremlin aide said.

In a wide-ranging conversation that also covered Iran and the Middle East, Trump "again raised the issue of an early end to military action" in Ukraine, the aide, Yuri Ushakov, told reporters.

"Vladimir Putin, for his part, noted that we continue to seek a political and negotiated solution to the conflict," Ushakov said.

Putin briefed Trump on the implementation of agreements reached between Russia and Ukraine last month to exchange prisoners-of-war and dead soldiers, Ushakov said, and told him that Moscow was ready to continue negotiations with Kyiv.
Advertising

"Our president also said that Russia will achieve the goals it has set: that is, the elimination of the well-known root causes that led to the current state of affairs, to the current acute confrontation, and Russia will not back down from these goals," he added.

There was nothing in the Kremlin readout to suggest that Putin had made any shift in Moscow's position during the conversation with Trump, who took office with a promise to end the war swiftly but has voiced frequent frustration with the lack of progress between the two sides.

The phrase "root causes" is shorthand for the Kremlin's argument that it was compelled to go to war in Ukraine to prevent the country from joining NATO and being used by the Western alliance as a launch pad to attack Russia.

Ukraine and its European allies say that is a specious pretext for what they call an imperial-style war, but Trump in previous public comments has shown sympathy with Moscow's refusal to accept NATO membership for Ukraine.

Putin and Trump did not talk about the US decision to halt some shipments of critical weapons to Ukraine, Ushakov said.

On Iran, he said, "the Russian side emphasised the importance of resolving all disputes, disagreements and conflict situations exclusively by political and diplomatic means".

Trump last month sent US military bombers to strike three Iranian nuclear sites, in a move condemned by Moscow as unprovoked and illegal.

(FRANCE 24 with Reuters)



Trump says ‘didn’t make any progress’ with Putin on Ukraine



By AFP
July 3, 2025
Danny KEMP

US President Donald Trump said he made no progress with Vladimir Putin on ending the Ukraine war in a call Thursday, as the Kremlin insisted the Russian president would stick to his aims in the conflict.

Trump’s grim assessment came as US-led peace talks on ending the more than three-year-old conflict in Ukraine have stalled, and after Washington paused some weapons shipments to Kyiv.

“It was a pretty long call, we talked about a lot of things including Iran, and we also talked about, as you know, the war with Ukraine. And I’m not happy about that,” Trump told reporters.

Asked if he had moved closer to a deal to end the war, Trump replied: “No, I didn’t make any progress with him at all.”

Trump’s view of the call was unusually bleak. After most of his previous five calls with Putin since returning to power in January he has given optimistic reports of progress towards a deal.

But he has shown increasing frustration with Putin after an early pivot towards the Russian leader. In recent weeks he knocked back Putin’s offer to mediate in the Iran-Israel conflict, telling him to focus on the Ukraine war instead.

In Moscow, the Kremlin said the call lasted almost an hour and said that Putin had insisted he would not give up on Russia’s goals.

“Our president said that Russia will achieve the aims it set, that is to say the elimination of the root causes that led to the current state of affairs,” Kremlin aide Yuri Ushakov told reporters.

“Russia will not give up on these aims.”

Moscow has long described its maximalist aims in Ukraine as getting rid of the “root causes” of the conflict, demanding that Kyiv give up its NATO ambitions.



– Zelensky in Denmark –



Moscow’s war in Ukraine has killed hundreds of thousands of people since it invaded in February 2022, and Russia now controls large swathes of eastern and southern Ukraine.

Even so, Putin told Trump that Moscow would continue to take part in negotiations.

“He also spoke of the readiness of the Russian side to continue the negotiation process,” Ushakov added. “Vladimir Putin said that we are continuing to look for a political, negotiated solution to the conflict.”

Moscow has for months refused to agree to a US-proposed ceasefire in Ukraine.

Kyiv and its Western allies have accused Putin of dragging out the process while pushing on with Russia’s advance in Ukraine.

The Kremlin said that Putin had also “stressed” to Trump that all conflicts in the Middle East should be solved “diplomatically”, after the US struck nuclear sites in Russia’s ally Iran.

The conversation came days after Washington announced a decision to pause some weapons shipments in a blow to Kyiv, which has been reliant on Western military support.

Kyiv said that Russian strikes on Thursday killed at least eight people in Ukraine.

Ukrainian President Volodymyr Zelensky was visiting ally Denmark on Thursday to meet leading European Union officials.

Zelensky told EU allies in Denmark that doubts over US military aid reinforced the need for greater cooperation with Brussels and NATO.

He also stressed again that Kyiv had always supported Trump’s “unconditional ceasefire”.

A senior Ukrainian official told AFP that Trump and Zelensky planned to speak to each other on Friday.

On Wednesday, Kyiv scrambled to clarify with Washington the implications of announcements by the White House and Pentagon on pausing some weapons shipments.

“Continued American support for Ukraine, for our defence, for our people is in our common interest,” Zelensky had said on Wednesday.

Russia has consistently called for Western countries to stop sending weapons to Kyiv.



Arms deliveries, sanctions loopholes: How Trump's recent moves benefit Russia

Two recent decisions by US President Donald Trump have directly benefitted Russia, both in the war in Ukraine and in its economic standoff with Europe. The White House halted a planned shipment of arms to Kyiv and deliberately bypassed existing sanctions to offer economic relief to Russia’s nuclear giant Rosatom and to Hungary’s Prime Minister Viktor Orban.

Issued on: 03/07/2025 - 
FRANCE24
By: Sébastian SEIBT 

Hungary's Prime Minister Viktor Orban and US President Donald Trump pose for a photo at Trump's estate in Mar-a-Lago in Palm Beach, Florida, on July 11, 2024. © AFP


Fewer US weapons for Ukraine, more financial leeway for Moscow – two decisions out of Washington in recent days have laid bare how Trump’s return to the White House is already reshaping the war in Ukraine and Western pressure on Moscow.

Washington announced on Tuesday it would suspend deliveries of certain military equipment to Ukraine. The White House said it was simply following the Pentagon’s recommendations amid concerns about maintaining sufficient reserves for America’s own defence needs.

Just a week earlier, another Trump administration decision opened up new commercial avenues for Russian companies in the nuclear sector, most notably Rosatom. The US Treasury introduced an exemption to a Biden-era ban on doing business with Russian banks.

While narrowly tailored to civil nuclear energy financing, this marks the first formal breach in US sanctions against Russia under Trump – sanctions that had steadily intensified since Washington’s initial response to Moscow’s annexation of Crimea in 2014.

Air defences and artillery shells

"These are two signals from the United States confirming what many had suspected: that Washington is no longer fully committed to standing with Ukraine, and that defeating Russia is not central to Donald Trump’s understanding of American interests," said Mark Harrison, emeritus professor of economics and Russia expert at the University of Warwick.

The decision to halt the next shipment of weapons leaves little room for ambiguity. Even if the Pentagon's concerns about strategic reserves are legitimate, Harrison argued the decision clearly shows that "logistical support for Ukraine is no longer a priority for the United States".

Although Washington did not disclose the shipment’s full contents, the New York Times reported it included artillery ammunition, air defence systems, and missiles – all critical to Ukraine’s defence against Russian bombardments and drone attacks.

These are vital in a war where fortified Russian positions must be shelled and air threats – from drones to missiles – must be intercepted.

"The immediate effect will be limited, as other deliveries from the US and Europe are still in the pipeline,” Harrison said. “But the long-term impact could be serious, especially if Europe fails to fill the gap left by waning American support."


Beyond the battlefield, the decision also offers a morale boost to Moscow. “It’s a very different challenge to fight a Ukrainian army backed fully by the United States,” Harrison said. “That’s no longer the case.”

According to economist Kirill Shakhnov of the University of Surrey, this shift is also closely tied to US domestic politics. Trump likely delayed the shipment to appease the more "America First" wing of the Republican Party, which opposed the US military operation in Iran. Isolationist voices in Congress are pressuring Trump to stick to his pledge "to withdraw from conflicts in which the United States plays a role", Shakhnov added. In that light, Ukraine is being used as a bargaining chip while Trump pursues other goals, notably Iran.
A gift to Viktor Orban

If Europe can hope to offset the missing American weapons, it has fewer options when it comes to the economic favour Trump just handed Vladimir Putin. The exemption that allows Rosatom and other Russian nuclear firms access to global financing comes as a surprise to many.

"This clearly won’t have a major impact on the Russian economy," said Shakhnov.

"Gas and oil exports are far more important than uranium," added Chloé Le Coq, an energy policy expert at Paris-Panthéon-Assas University who specialises in Russian hydrocarbons.

Still, analysts point to two likely motives behind Trump’s decision. First, by targeting a relatively minor domain for the Kremlin, the Trump administration may be testing the waters to see if such a move sparks backlash. So far, there’s been little reaction… apart from Ukrainian media outlets.

Second, it's useful to consider who benefits. Rosatom, of course, but also Hungary, led by Trump ally Viktor Orban. Just two days after the exemption was announced, Hungarian authorities revealed that the waiver would allow them to restart the stalled construction of the Paks-2 nuclear power plant, a multibillion-euro project largely funded by Rosatom.

"Donald Trump may have made this decision to please Viktor Orban, one of his main allies in Europe," said Shakhnov.

In short, it appears to be a cosy deal between Hungarian, American and Russian interests at the expense of the sanctions enforcement. Orban had been furious last November when one of Joe Biden’s final decisions put his nuclear plant project on hold after Gasprombank, a Rosatom partner, was placed under US sanctions.
A Russian foothold in Europe’s future energy market?

Paks-2 is one of the Hungarian government’s flagship infrastructure projects. The plant was to be funded with €10 billion from Rosatom and Russian banks.

Trump’s decision explicitly reopens the door for Gazprombank to fund civil nuclear projects. But the question remains: why is Rosatom willing to lose money by investing so heavily in a project unlikely to yield much profit?

"When a company is willing to take such a financial loss, it suggests there’s another motive," said Le Coq. That’s especially true of Rosatom, which often serves as a foreign policy tool for the Kremlin.

One possible explanation, she suggested, lies in the European project to build a single electricity market. "If a Russian actor holds even a small part of that market, it becomes a strategic concern," she said. "Unlike oil or gas, it’s hard to find a substitute energy source once a nuclear plant is plugged into the grid."

In other words, Trump’s decision is not only a win for Russia and Hungary, it’s also a blow to European interests.

This article has been translated from the original in French by Anaelle Jonah.





PATHETIQUE

Russia becomes first country to recognise Afghanistan's Taliban government

"The move signals that strategic interests will always outweigh human rights and international law."

Afghanistan said on Thursday Russia had become the first country to officially recognise its Taliban-led government, calling it a "brave decision". The Taliban regained power in 2021 after toppling the Western-backed administration and have since enforced strict Islamic law.


Issued on: 04/07/2025
By: FRANCE 24
Taliban soldiers celebrate on the second anniversary of the fall of Kabul on a street near the US embassy in Kabul, Afghanistan, August 15, 2023. © Ali Khara, Reuters

Afghanistan's government said on Thursday that Russia had become the first country to officially recognise its rule, calling it a "brave decision".

The Taliban swept back to power in 2021 after ousting the foreign-backed government and have imposed an austere version of Islamic law.

They have keenly sought official international recognition and investment, as the country recovers from four decades of war, including the Soviet invasion from 1979 to 1989.

The announcement was made after Afghanistan's Foreign Minister Amir Khan Muttaqi met with Russia's ambassador to Afghanistan, Dmitry Zhirnov, in Kabul on Thursday.

"This brave decision will be an example for others ... Now that the process of recognition has started, Russia was ahead of everyone," Muttaqi said in a video of the meeting on X.

"Russia is the first country which has officially recognised the Islamic Emirate," Taliban foreign ministry spokesman Zia Ahmad Takal told AFP, using the government's name for their administration.

Muttaqi said it was "a new phase of positive relations, mutual respect, and constructive engagement", the foreign ministry posted on X.

Russia's foreign ministry added on Telegram: "We believe that the act of official recognition of the Islamic Emirate of Afghanistan will boost the development of productive bilateral co-operation between our countries in several areas."


It highlighted potential "commercial and economic" co-operation in "energy, transportation, agriculture and infrastructure".

The ministry said that Moscow hoped to continue helping Kabul "reinforce regional security and fight against the threats of terrorism and drug-trafficking".

Moscow has taken recent steps to normalise relations with the Taliban authorities, removing them from a list of "terrorist organisations" in April and accepting a Taliban ambassador in Kabul.

In July 2024, Russian President Vladimir Putin called the Taliban "allies in the fight against terrorism".

Russia was the first country to open a business representative office in Kabul after the Taliban takeover, and has announced plans to use Afghanistan as a transit hub for gas heading to Southeast Asia.



'Allies'


Only Saudi Arabia, Pakistan and the United Arab Emirates recognised the Taliban during their first stint in power from 1996 to 2001.

This time, multiple other states, including China and Pakistan, have accepted Taliban ambassadors in their capitals, but have not officially recognised the Islamic Emirate since the end of the then-insurgency's two-decade war with US-led NATO troops.

There has been limited but growing engagement with the Taliban authorities, particularly from regional neighbours, but also major global players China and Russia.

However, restrictions on women and girls, barring them from education and squeezing them from public life, have been key sticking points for Western nations.

Multiple Afghan women activists were quick to condemn Russia's recognition.

The move "legitimises a regime that bans girls from education, enforces public floggings, and shelters UN-sanctioned terrorists", said Mariam Solaimankhil, former member of Afghanistan's parliament.

"The move signals that strategic interests will always outweigh human rights and international law."

Senior Taliban figures remain under international sanctions, including by the United Nations.

Another former MP in Kabul, Fawzia Koofi, said any recognition of the Taliban "will not bring peace it will legitimise impunity" and "risk endangering not just the people of Afghanistan, but global security".

(FRANCE 24 with AFP)




Second day of travel chaos as French air traffic controllers strike


By AFP
July 4, 2025


The strike has caused chaos not just in France but across Europe - Copyright AFP GEORGES GOBET

Tangi Quemener

French air traffic controllers staged the second day of a two-day strike on Friday, prompting the cancellation of flights affecting hundreds of thousands of people not just to-and-from France but also overflying the country as summer holidays kick off.

Paris airports were even more severely affected than on the first day of the strike on Thursday, which was called by two minority unions calling for better working conditions and staffing.

The timing of the strike is particularly acute with Friday the final day of school in France before the summer holidays and many families planning an early getaway.

France’s DGAC aviation authority said 933 flights departing from or arriving at French airports were cancelled on Thursday, some 10 percent of the total number of flights initially scheduled. The proportion of cancellations rose to 25 percent at the main airports in Paris.

Around 1,000 flights had been cancelled on Friday morning, after the DGAC asked companies to cancel 40 percent of flights to deal with the strike.

The government has condemned the strike, with Prime Minister Francois Bayrou telling BFMTV that “choosing the day when everyone goes on holiday to go on strike at air traffic control is taking the French hostage.”



– ‘Unacceptable’ –



Transport Minister Philippe Tabarot told CNews that “yesterday and today, 272 people in our country will impact the well-being of more than 500,000 people”.

“This is unacceptable,” he said.

UNSA-ICNA, the second biggest labour group in the sector, launched the action to protest against “chronic understaffing”, the planned introduction of a clock-in system, outdated equipment and “toxic management practices that are incompatible with the requirements of calm and safety”.

It was joined by the third largest union, USAC-CGT but the main union, SNCTA, has not joined the action.

The effects of the strike are not limited to France and the stoppage has triggered hundreds of cancellations of flights that fly over the country.

The European Airlines for Europe (A4E) association said 1,500 flights would be cancelled on Thursday and Friday in Europe, affecting 300,000 passengers.

“French air traffic control already delivers some of Europe’s worst delay figures and now the actions of a minority of French air traffic control workers will needlessly disrupt the holiday plans of thousands of people in France and across Europe,” said A4E chief Ourania Georgoutsakou.

The association said the strikes also caused “almost 500,000 minutes” in delays in Europe on Thursday on nearly 33,000 commercial flights.



– ‘Stuck’ –



Ryanair, Europe’s largest airline by passenger numbers, said it had cancelled more than 400 flights.

Ryanair CEO Michael O’Leary urged the EU Commission to protect such overflights by law in case of strikes.

“Of these 400 flight cancellations, 350 would not be cancelled if the EU protected overflights over France,” he said.

At Paris airports, passengers stared at departure boards loaded with cancellations to assess their options.

“I came here on holiday to celebrate my wife’s 40th birthday, but now I’m stuck at Charles de Gaulle Airport,” said Julien Barthelemy, a passenger travelling to Marseille from New York, late Thursday.

“I’m currently on the waiting list for three flights and am waiting for a spot on the next one to become available.”

Lara, 30, was scheduled to take a flight from Paris to Berlin with her partner to visit friends.

“The flight was scheduled for Thursday evening, but we were informed on Wednesday that it had been cancelled. We had been able to get another ticket for free, for Friday evening, but that was also cancelled,” she told AFP, adding they had to buy more expensive train tickets.

Flight delays, cancellations as French air traffic controller strike continues

French air traffic controllers continued strike action for a second consecutive day, causing the cancellation of 40 percent of flights across all Paris airports on Friday and disrupting travel plans for holidaymakers at the height of Europe's travel season.


Issued on: 04/07/2025
By:  FRANCE 24


07:23
Passengers look at the departures information board at Roissy Charles-de-Gaulle airport, outside Paris, on July 3, 2025. 
© Thibaud Moritz, AFP




A strike by French air traffic controllers entered its second day on Friday, causing further flight delays and cancellations at the start of Europe's peak travel season.

Civil aviation agency DGAC told airlines to cancel 40% of flights at the three main Paris airports on Friday because of the strike, which the air traffic controllers say is over staff shortages and ageing equipment.

Up to half of flights at France's other airports, mostly in the south, were also affected, DGAC added.


03:49© France 24


French transport minister Philippe Tabarot called the strike unacceptable. "The idea is to disturb as many people as possible," he said in an interview with CNews.

Even with the cancellations, DGAC warned that passengers could be affected by delays and significant disruptions.

The Airlines for Europe (A4E) lobby group said late on Thursday that 1,500 flights had been cancelled over the two-day strike, affecting 300,000 passengers and causing cascading delays.

(FRANCE 24 with Reuters and AP)

BAN DEEP SEA MINING

Japan plans ‘world first’ deep-sea mineral extraction


By AFP
July 3, 2025


The Chikyu, pictured here in 2013, will drill around the remote island of Minami Torishima - Copyright AFP/File TOSHIFUMI KITAMURA

Japan will from January attempt to extract rare earth minerals from the ocean floor in the deepest trial of its kind, the director of a government innovation programme said Thursday.

Earlier this week the country pledged to work with the United States, India and Australia to ensure a stable supply of critical minerals, as concern grows over China’s dominance in resources vital to new technologies.

Rare earths — 17 metals difficult to extract from the Earth’s crust — are used in everything from electric vehicles to hard drives, wind turbines and missiles.

China accounts for almost two-thirds of rare earth mining production and 92 percent of global refined output, according to the International Energy Agency.

A Japanese deep-sea scientific drilling boat called the Chikyu will from January conduct a “test cruise” to retrieve ocean floor sediments that contain rare earth elements, said Shoichi Ishii, director of Japan’s Cross-ministerial Strategic Innovation Promotion Programme.

“The test to retrieve the sediments from 5,500 metres (3.4 miles) water depth is the first in the world,” he told AFP.

“Our goal… of this cruise is to test the function of all mining equipment,” so the amount of sediment extracted “doesn’t matter at all”, Ishii added.

The Chikyu will drill in Japanese economic waters around the remote island of Minami Torishima in the Pacific — the easternmost point of Japan, also used as a military base.

Japan’s Nikkei business daily reported that the mission aims to extract 35 tonnes of mud from the sea floor over around three weeks.

Each tonne is expected to contain around two kilograms (4.4 pounds) of rare earth minerals, which are often used to make magnets that are essential in modern electronics.

Deep-sea mining has become a geopolitical flashpoint, with anxiety growing over a push by US President Donald Trump to fast-track the practice in international waters.

Beijing has since April required licences to export rare earths from China, a move seen as retaliation for US curbs on the import of Chinese goods.

Environmental campaigners warn that deep-sea mining threatens marine ecosystems and will disrupt the sea floor.

The International Seabed Authority, which has jurisdiction over the ocean floor outside national waters, is meeting later this month to discuss a global code to regulate mining in the ocean depths.
Canadian exports to U.S. continue to drop, reach one of lowest proportions on record

 July 03, 2025 

A refinery is seen in Burnaby, B.C., on Monday, June 30, 2025. THE CANADIAN PRESS/Darryl Dyck

Amid a protracted trade war, Canadian exports to the United States are at one of the lowest proportions on record, while exports to other countries have reached a record high, according to the latest numbers from Statistics Canada.

Data show Canadian exports to the U.S. have decreased for the fourth consecutive month, seeing a 0.9 per cent drop in May. The average share of total Canadian exports to the U.S. is also down, from 75.9 per cent last year, to 68.3 per cent in May, a near-record low.

Imports from the U.S. have also been on the decrease for the third consecutive month.

The shifts come amid an ongoing trade war with the United States, which began in February when U.S. President Donald Trump began implementing a series of significant and stacked tariffs on Canadian goods.

A slate of Canadian countermeasures is also in place, while the self-imposed deadline to reach a new economic and security deal is fast approaching. Following the G7 summit in Kananaskis, Alta., last month, a readout from a meeting between Trump and Prime Minister Mark Carney stated the two leaders are working toward an agreement by July 21.

“There’s no question this is taking a big toll on Canadian businesses,” said Canadian Federation of Independent Business (CFIB) President and CEO Dan Kelly in an interview with CTV News. “Every month that we don’t have a trade deal leads to these kinds of challenges.”

Kelly added that the uncertainty is “what’s killing businesses,” because they don’t know whether they should be “ramping up, ramping down, putting projects on hold.”

“Businesses are really kind of in suspended animation right now, and that is not helpful for business growth and development in the long term,” Kelly added.

Carney, meanwhile, has pledged to diversify Canada’s trade markets, in part to insulate the economy from the effects of Trump’s tariffs, and also to find ways to reduce reliance on the United States.

According to Statistics Canada data from May, Canadian exports to countries other than the U.S. increased by 5.7 per cent, a record high.

“I think if we can in fact get a deal fairly soon, the long-term impacts of this will be kept to a minimum,” Kelly said. “But it has, I think, spurred another round of business diversification on the part of many Canadian companies that are looking at other places within Canada to sell their goods or buy products from, as well as doing that with other countries than the United States.”

“But the U.S. is so big and on our doorstep that if we get a trade deal and we get this uncertainty behind us, I suspect we will look back at this as a challenge, a moment in time, and move on,” he added.

The increase in exports to countries other than the U.S. came largely in the form of higher unwrought gold exports to the United Kingdom, crude oil to Singapore and unwrought aluminum and pharmaceutical products to Italy, offset by lower canola and crude oil exports to China, according Statistics Canada.

Andrew DiCapua, principal economist with the Canadian Chamber of Commerce, said it’s possible “the worst is behind us.”

“Exporters, Canadian companies, are taking that spare capacity that the United States created, or the empty space on the order books, and are able to, in some cases, fill it with other markets,” he said in an interview with CTV News.

The figures from the statistics agency also show Canada’s global trade deficit narrowed slightly in May, down to $5.9 billion from a record $7.6 billion the previous month, with more exports and fewer imports.
DiCapua said not all companies have the capacity to switch contracts back and forth between the United States and other markets as the tariff landscape changes.

“So, these are new relationships, in some cases, that companies are having to form,” he said. “But of course, if things improve in terms of Canada-U.S. trade policy (and) relations, we could see a positive rebound in the numbers in the months to come.”

Kelly said while there’s “no question this is putting pressure on businesses,” Statistics Canada’s reporting does include some positive news on the interprovincial trade front, with CFIB seeing a bump in members trading within Canada.

With files from CTV News’ Rachel Aiello

Spencer Van Dyk
Writer & Producer, Ottawa News Bureau, CTV New
s

U.S. trade deficit widens in May as Trump tariffs fuel uncertainty


By AFP
July 3, 2025


The US trade deficit widens in May but both imports and exports declined, government data showed - Copyright AFP/File Robyn Beck

Beiyi SEOW

The US trade deficit widened more than expected in May, with both imports and exports declining as US President Donald Trump’s tariffs sent shock waves through the economy and snagged supply chains.

Trade data published Thursday showed the world’s biggest economy logged an overall trade gap of $71.5 billion, in the month after Trump imposed a 10 percent duty on most trading partners before pausing steeper rates for dozens of these economies.

This was an expansion from the $60.3 billion deficit in April, according to the Commerce Department.

The figures, however, came as both imports and exports shrank in May.

US imports were down 0.1 percent to $350.5 billion, as incoming shipments of goods ticked down.

Imports of consumer goods dropped by $4.0 billion, with those of certain apparel and toys both sliding, although imports of autos and parts climbed.

US exports, meanwhile, dropped by 4.0 percent to $279.0 billion, with declines largely seen in industrial supplies and materials, the report showed.

US trade has been rocked by Trump’s sweeping tariff announcements since the start of this year, as companies stocked up to get ahead of expected levies and halted shipments to wait for high duties to come down.

This was the case when Trump doubled down on tariffs impacting goods from China in April. Tit-for-tat tariffs on both sides surged to prohibitive levels before Washington and Beijing de-escalated tensions in mid-May.

Trade is “at risk of introducing more volatility in the data,” said Bernard Yaros, lead US economist at Oxford Economics.

This is especially as the world heads towards a July 9 deadline when Trump’s pause on higher duties for dozens of economies including the European Union, Japan and South Korea is due to expire.

“A worst-case tariff outcome this month would apply further downward pressure on imports,” Yaros warned.

The path forward is unclear and he expects levels to land somewhere between their current position and the steep levels initially unveiled in April.

He cited a US deal with Vietnam announced Wednesday where the country averted the harsh tariff rate Trump first announced.

But Yaros maintains that “the true health of the economy will be better distilled by the consumer and business spending figures, which are showing signs of weakness.”

Carl Weinberg, chief economist at High Frequency Economics, expects Federal Reserve policymakers to look past the fluctuations in inventories as they decide on further interest rate adjustments.

“There is not much in this report to alter the Fed’s view that the economy remains strong,” he said.
Op-Ed: Big Incredibly Stupid Bill passes House — Good luck, America.


By Paul Wallis
July 4, 2025
DIGITAL  JOURNAL




By a very narrow margin, arguably the most idiotic piece of legislation in American history has passed Congress. 218-214. Two turncoat Democrats contributed to this disaster.

This bill was a sort of long-term conservative wish list. Cutting taxes for the rich, increasing taxes for the lowest incomes. The states can’t regulate AI for 10 years. Allegedly, 17 million people will be forced off Medicaid. Billions of dollars for ICE, coming directly out of federal revenue. People will have to work for food stamps. Don’t even think about trade.

CNN has a list of effects which make pretty grim reading.

A lot of the details of changes to social programs are offloaded onto the states, many of which aren’t in great shape with their own revenue. The national effect can be summarized in one word: “Expensive”.

Someone will eventually write an encyclopaedia on what’s wrong with this bill. To put it as mildly as possible, it’s fantasy. In revenue terms, it could cripple the Federal budget. Doesn’t look like the Good Old Days are going to be replaced by Good New Days anytime soon.

It’s inevitable that this bill will be severely underfunded, regardless of raising debt levels. Corporate America is in lock step with Federal spending because that’s where the big money comes from. The revenue isn’t there. More borrowing will be required. Sound familiar?

At least until the midterms. The easy way to shut this mess down would be to block a budget. That’d force an election and stop the “fiscal diarrhea” effect.

That’s not the worst of it. The worst of it is, as usual, that nobody’s minding the store. Realities on the ground are never mentioned. Cost of living, housing, health, and two generations adrift in a sea of chaos aren’t even subjects for discussion. American healthcare is now considered the worst in the world.

Think about it – No steady jobs, too. Very iffy income streams, and everything is getting more expensive. Gen Z and Alpha are up the creek with no canoes.

Conservatives don’t have a reputation for great calls on any subject. Prohibition was a conservative crusade. So was the long-lost War on Drugs. “Tough on crime” is now a very old joke. Immigrant labor was critical to the US food system, and now the immigrants are criminals all of a sudden.

Just for the record, other countries use work visas, and it’s not a problem. Only in America would people who put food on the table be arrested.

On most American media, asterisks have replaced swear words. You can go broke, flounder around in constant financial shocks, die of social disasters, but you can’t swear. These are the priorities?

Someone’s living in a senile doll’s crack house. Superficiality is the name of the game. This bill was passed in the face of the biggest protests in US history. The hostility of the electorate is being ignored, and they’re getting away with ignoring it.

The damage can be undone, but it’ll take time and more money. Every single part of the bill will have to be disassembled.

This is the beginning of the end, but it’s going to be ugly.

__________________________________________________
Disclaimer
The opinions expressed in this Op-Ed are those of the author. They do not purport to reflect the opinions or views of the Digital Journal or its members.





WAR
Contractors to rally after Canada pledges more investment, expert says

WELFARE NOT WARFARE

By Joshua Santos
Published: July 02, 2025 

Canada’s commitment to pledge five per cent of gross domestic product (GDP) to defence spending by the next decade could serve as a tailwind for the sector, and a needed investment in “self readiness,” one expert says.

The commitment comes amid an ongoing war between Russia and Ukraine, tensions between China and Taiwan and conflicts involving the U.S., Israel, Iran and Hamas.

“Canada has never even met two per cent in decades,” Jeff Hull, senior financial advisor of Manulife Wealth Inc. told BNN Bloomberg in a Wednesday interview.

“So, to have five per cent as a goal for one is actually rather impressive, and that’ll allow countries in the procurement area to really make some wise decisions for that self-readiness, which is what NATO (North Atlantic Treaty Organization) is. It’s not membership dues, like people think. It’s just investing in ourselves and self-readiness so when we get that 911 call, we’re ready to go.”

Prime Minister Mark Carney says the new NATO agreement will see Canada’s annual defence budget increase to roughly $150 billion, according to the Canadian Press.

NATO data shows Canada spent $41 billion on defence in 2024, about 1.4 per cent of its GDP. European countries have also committed to pledge five per cent of GDP to defence after U.S. President Donald Trump spent months saying Europe should take more responsibility for its own security. The United States spent roughly US$916 billion on military spending in 2023, according to Statista.

Investment in defence to support contracting sector

Hull says that while Canada and the U.S. are now more aligned on funding defence, it does not mean the federal government has to purchase weapons and equipment from American contractors.

“They’re kind of bowing to Trump a bit and kissing his ring a bit, but they’re like, ‘Okay, we’ll get to our two to five per cent,’ but that doesn’t mean they have to buy American defense contractors,” says Hull.

“A lot of the Europeans are looking inward to their neighbours. New countries like Finland and Sweden that have joined. France is buying from Germany. Germany is buying from the U.K. They’re now kind of bringing it home a little bit and buying from each other to get to that, but also supporting each other, because they know, ultimately, that’s the real alliance actually in Europe, but the backbone of NATO is the United States.”

The Centre for Strategic and International Studies recently had a presentation on the evolution of modern warfare in the Russia and Ukraine war. Researchers focused on how both sides employ unmanned systems on the battlefield with AI and autonomy.

One device is a dubbed a kamikaze drone – an unmanned aircraft that does not fire missiles but rather crashes itself into a target.

“The last few years has totally changed warfare,” said Hull. “Something that’s evolved out of that is drone swarming with kamikaze drones that are just one-use drones as an example. Ukraine is now the largest manufacturer in the world of military kamikaze drones. They do two million drones a year now.”

Trump is expected to meet Israeli Prime Minister Benjamin Netanyahu next week after the U.S. president brokered a deal between Israel and Iran while the conflict between Israel and Hamas continues.

“Iran provides Russia with most of their kamikaze drones, but Iran was a little busy with Israel, so (Russian President Vladimir) Putin wasn’t getting his kamikaze drones. There’s this interoperability, what I call the butterfly effect. Seemingly nonrelated wars do have an impact,” Hull says.

Hull noted that investors interested in purchasing defence stocks should consider the type of company they’re buying, specifically if they are only manufacturing for militaries or if they have developed products for other sectors.

“Is the military company you’re buying a pure play, like a Lockheed Martin that just does military contracting? Or is it a blend where, like Raytheon, used to be a pure play, but then it joined with consumer products companies, now they have a blend. Boeing is 47 per cent military contracting and 53 per cent civilian aircraft as an example,” he says.

He added that investors should also weigh the pros and cons of buying into large companies like Lockheed Martin or Northrop Grumman, or smaller companies like Elbit Systems or CyberArk.


Joshua Santos

Journalist, BNNBloomberg.ca





Seeing the Forest for the Trees
Thesis on The Kosovo Crisis and the Crisis of Global Capitalism

(originally written May 1999, Bill Clinton set the stage for George W. to invade Afghanistan and Iraq for humanitarian purposes.)
http://plawiuk.blogspot.com/2005/01/war-whats-it-good-for-profit.html
If Newfoundland hydrogen companies pivot, government says it will collect royalties



By The Canadian Press
Published: July 03, 2025 

A car is shown driving by a valley of power lines near Come By Chance, N.L., on Saturday, June 28, 2025. Newfoundland and Labrador Hydro says it will soon be looking for companies to provide renewable energy to the province's power grid. THE CANADIAN PRESS/Sarah Smellie

ST. JOHN’S — Despite a lagging market for green hydrogen, the Newfoundland and Labrador government says it still plans to collect royalties from the province’s nascent renewable energy industry.

Steve Crocker, minister of industry, energy and technology, says his department is keeping a close eye on developments in the industry and will come up with an appropriate royalty regime if any of the proposed wind-powered hydrogen operations pivot to focus exclusively on wind energy.

He also said the province’s Crown power utility would weigh in if any of the companies are pitching to supply the province’s power grid.

“This is a resource that, at the end of day, belongs to the people of Newfoundland and Labrador,” Crocker said. “No different than we did for wind to hydrogen, we would certainly do for any other wind-type proposal.”

Newfoundland and Labrador has a “fiscal framework” in place to collect royalties and benefits from proposed projects on Crown land that would use electricity generated by wind power to produce hydrogen. The benefits include fees for Crown lands, a $4,000-per-megawatt wind-electricity tax and water royalties that would kick in once the projects have recovered their costs.


The framework is specific to projects using wind power to produce hydrogen.

Six companies have reserved Crown land to develop green hydrogen projects in the province, but not all of them are up to date in paying fees they owe the government, The Canadian Press reported in June.

Last month, executives from some of those companies told an energy conference in St. John’s, N.L., that they were eyeing wind-energy projects as the market for green hydrogen lags. The companies hope to use wind to generate electricity to produce hydrogen products, and then sell them to buyers in Europe.

It’s been tough to secure binding agreements with buyers that would make their projects viable, the executives said.

In the meantime, several said they were eager for an expected call for renewable energy from Newfoundland and Labrador Hydro.

Jill Pitcher, a spokesperson for the utility, said N.L. Hydro expects to release an expression of interest for renewable energy “within the next couple weeks.”

“Discussions on royalties or benefits would take place during the (expression of interest) process,” Pitcher said in an email.

Crocker said his department has not received any “formal correspondence” from green hydrogen companies saying they intended to deviate from their wind-to-hydrogen plans. Any changes would have to be approved by the provincial government, he added.

The province is holding nearly 4,000 square kilometres of Crown land in reserve for the six companies proposing wind-to-hydrogen developments on the island of Newfoundland. So far, one project — World Energy GH2’s $16-billion project in western Newfoundland — has cleared the province’s environmental assessment process. Three others are in the midst of it.

Crocker said he is optimistic that the wind-to-hydrogen sector will take off.

“There’s still a lot of work to do, but we still see serious interest,” he said.


This report by The Canadian Press was first published July 3, 2025.

By Sarah Smellie
China shows signs of tackling the price wars that are taking a toll on its EV industry

By The Associated Press
Published: July 04, 2025 

A man dressed as the character from "Black Myth: Wukong" promotes a special edition Han L model from BYD during the Shanghai auto show on Wednesday, April 23, 2025.
 (AP Photo/Ng Han Guan, File)

BEIJING — The Chinese government is signalling enough is enough when it comes to the fierce competition in the country’s electric car market.

China’s industrial policy has engineered a remarkable transformation to electric vehicles in what is the world’s largest auto market. In so doing, it has spawned far more makers than can possibly survive. Now, long-simmering concerns about oversupply and debilitating price wars are coming to the fore, even as the headline sales numbers soar to new heights.

Market-leader BYD announced this week that its sales grew 31% in the first six months of the year to 2.1 million cars. Nearly half of those were pure electric vehicles and the rest were plug-in hybrids, it said in a Hong Kong Stock Exchange filing. The company phased out internal combustion engine cars in 2022.

BYD came under thinly veiled criticism in late May when it launched a new round of price cuts, and several competitors followed suit. The chairman of Great Wall Motors warned the industry could come under threat if it continues on the same trajectory.

“When volumes get bigger, it’s just much harder to manage and you become the bullseye,” said Lei Xing, an independent analyst who follows the industry.


The government is trying to rein in what is called “involution” — a term initially applied to the rat race for young people in China and now to companies and industries engaged in meaningless competition that leads nowhere.

BYD has come under criticism for using its dominant position in ways that some consider unfair, sparking price wars that have caused losses across the industry, said Murthy Grandhi, an India-based financial risk analyst at GlobalData.

With the price war in its fourth year, Chinese automakers are looking abroad for profits. BYD’s overseas sales more than doubled to 464,000 units in the first half of this year. Worried governments in the U.S. and EU have imposed tariffs on made-in-China electric vehicles, saying that subsidies have given them an unfair advantage.

Market leader BYD comes under attack

The latest bout of handwringing started when BYD cut the price of more than 20 models on May 23.

The same day, the chairman of Great Wall Motors, Wei Jianjun, said he was pessimistic about what he called the “healthy development” of the EV market. He drew a comparison to Evergrande, the Chinese real estate giant whose collapse sent the entire industry into a downturn from which it has yet to recover.

“The Evergrande in the automobile industry already exists, but it is just yet to explode,” he said in a video message posted on social media.

Two days later, a BYD executive rejected any comparison to Evergrande and posted data-filled charts to buttress his case.

“To be honest, I am confused and angry and it’s ridiculous!” Li Yunfei, BYD’s general manager of brand and public relations, wrote on social media. “All these come from the shocking remarks made by Chairman Wei of Great Wall Motors.”

Next, the government and an industry association weighed in. The China Association of Automobile Manufacturers called for fair competition and healthy development of the industry, noting that major price cuts by one automaker had triggered a new price war panic.

On the same day, the Ministry of Industry and Information Technology vowed to tackle involution-style competition in the auto industry, saying that recent disorderly price wars posed a treat to the healthy and sustainable development of the sector.


“That price cut might have been the final straw that irked both competitors and regulators for the ruthlessness that BYD continues to show,” Lei said.

A promise to pay suppliers within 60 days signals possible shift

The following month, 17 automakers including BYD made a pledge: They would pay their suppliers within 60 days.

One way China’s automakers have been surviving the bruising price wars is by delaying the payments for months. The agreement, if adhered to, would reduce financial pressure on suppliers and could rein in some of the fierce competition.

“The introduction of the 60-day payment pledge is the call of the government to oppose involution-style competition,” said Cui Dongshu, the secretary-general of the China Passenger Car Association.

It also reduces the risk of an Evergrande-like scenario.

Many automakers had stretched out payments by paying suppliers with short-term debt — promises to repay them in a certain period of time — instead of cash. Real estate developers used the same system. It worked until it didn’t. When Evergrande defaulted on its debts, suppliers were left holding worthless promises to pay.

“This practice is seen as a potential cause of a larger crisis, similar to what happened with Evergrande,” Grandhi said.

The vows to speed up payments and the government calls to rein in the price wars, along with a rollback of some financing offers, point to an effort to reverse downward price expectations, said Jing Yang, a director at Fitch Ratings who focuses on the auto industry.

“We may watch how effectively these measures are in reversing the price trend and how would that affect EV demand in the coming quarters,” she said.

___

Ken Moritsugu, The Associated Press

Associated Press researcher Yu Bing in Beijing contributed to this report.