U.S. Unveils New Package Of Military Aid To Pakistan
WASHINGTON -- The United States has announced a five year, $2 billion military aid package for Pakistan as part of its campaign to enlist Islamabad's full support in the fight against extremists on its own soil and in neighboring Afghanistan.
U.S. Secretary of State Hillary Clinton made the announcement alongside Pakistani Foreign Minister Mahmood Shah Qureshi, who is in Washington with a delegation of government ministers for the third round of U.S.-Pakistan strategic partnership talks.
"I am pleased to announce our multi-year security assistance commitment to Pakistan. We will request $2 billion in foreign military assistance from Congress for 2012 through 2016," Clinton said. "This will complement the $7.5 billion in civilian projects that has already been approved in the Kerry-Lugar-Berman legislation."
Long Term Partners
The new aid package, which must be approved by Congress, is addition to a $7.5 billion package of civilian aid that was approved by Congress before this summer's devastating floods in Pakistan. Some of that money has been diverted to help recovery efforts, and the United States has since sent an additional $390 million in relief and recovery aid.
U.S. officials are keen to reassure Pakistan that it can rely on Washington as a long-term development partner, beyond the planned beginning of troop withdrawals next summer from Afghanistan.
Clinton also made a point of addressing doubts in Washington that Islamabad is a reliable partner in the fight against extremists. "The United States has no stronger partner when it comes to counter-terrorism efforts the extremists who threaten us both than Pakistan," she said.
"We recognize and appreciate the sacrifice and service that the men and women, particularly the soldiers of the military in Pakistan, have made in order to restore order and go after those who threaten the very institutions of the state of Pakistan," Clinton added.
Qureshi said his country appreciates the aid but didn't hide his annoyance that Pakistan's commitment to defeating extremists is still being questioned. He said some 30,000 Pakistani civilians have lost their lives in the battle against terrorism thus far.
"It unfortunately seems easy to dismiss Pakistan's contributions and sacrifices. There are still tongue-in-cheek comments, even in this capital, about Pakistan's heart not really being in this fight. We do not know what greater evidence to offer than the blood of our people," he said.
The foreign minister told Clinton that Pakistan is "determined to win this fight," adding that his country would prove that it would "not allow any space for terrorists on its territory."
A 'Blueprint For Cooperation'
The announcement of new military aid comes as the White House said it plans to cut off aid to certain Pakistani military units suspected of committing human rights abuses, including extrajudicial killings and torture. A U.S. law known as the Leahy Amendment prohibits military assistance to foreign armed forces suspected of committing atrocities.
This week's talks in Washington took place as the two countries are trying to repair tensions over NATO military incursions across the border with Afghanistan, stepped up drone attacks, and allegations that Islamabad is not doing enough to target Taliban militants.
The deaths of two Pakistani border guards by NATO helicopters led Islamabad to temporarily close a NATO border crossing point in retaliation. U.S. Secretary of Defense Robert Gates apologized for the second time for the incident to Pakistani army General Ashfaq Kayani earlier this week.
Clinton said that the 13 working groups of Pakistani government ministers and their U.S. counterparts that met this week had forged what she called "a blueprint for cooperation" between the two countries. Among the agreements are a plan to immunize 90 percent of Pakistani children against disease, improve the reliability of electricity supply, and distribute seeds to help farmers recover from the floods. Water experts from Pakistani provinces will also visit New Orleans on October 23 to study how the city recovered from Hurricane Katrina.
Clinton said the United States would continue to stand by the Pakistani people. "We are accelerating our efforts to help provide cash to people whose houses have been destroyed [by floods] so they can quickly rebuild," she said. "And this morning, I want to send a special message to the people of Pakistan. We have stood with you and we will keep standing with you, to help you not just cope with the aftermath of the floods, but to get back on the path to prosperity."
President Barack Obama has announced that he plans to visit Pakistan next year in what will be the first visit of his presidency.
written by Heather Maher with agency reports
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Blinken Says Putin Shows No Sign He's Interested In Diplomacy
Washington sees no signs that Moscow is interested in talks on ending the war in Ukraine, U.S. Secretary of State Antony Blinken has said.
"There's always value in diplomacy if the parties in question and in this case Russia, are actually interested in meaningful diplomacy. And what we've seen, at least recently, is exactly the contrary," Blinken told CBS News on December 4, adding that Putin had switched tactics after suffering setbacks on the battlefield.
"He's been unable to win on the battlefield, so he's taking, he's basically turning his ire and his fire on Ukrainian civilians, going after the energy infrastructure, trying to turn off the lights, turn off the heat, turn off the electricity. That's what's going on.
"So,unless and until Putin demonstrates that he's actually interested in meaningful diplomacy, it's unlikely to go anywhere," Blinken said on Face The Nation.
In recent weeks, Russia's military focus has been on striking Ukrainian infrastructure nationwide, pressing an offensive in the Donetsk region city of Bakhmut, and shelling sites in the city of Kherson, which Ukrainian forces liberated last month after an eight-month Russian occupation.
On December 1, President Joe Biden indicated he would be willing to talk with Putin if the Russian leader demonstrated that he seriously wanted to end the invasion.
"I'm prepared to speak with Mr. Putin if in fact there is an interest in him deciding that he's looking for a way to end the war," Biden said. "He hasn't done that yet."
The head of U.S. intelligence said fighting in Russia's war in Ukraine was running at a "reduced tempo" and suggested Ukrainian forces could have brighter prospects in coming months.
Avril Haines alluded to past allegations by some that Putin's advisers could be shielding him from bad news -- for Russia -- about war developments, and said he "is becoming more informed of the challenges that the military faces in Russia."
"But it's still not clear to us that he has a full picture of at this stage of just how challenged they are," Haines, the U.S. director of national intelligence, said on December 3.
The British Ministry of Defense, in its latest intelligence estimate on December 4, pointed to new signs from an independent Russian media outlet that public support in Russia for the military campaign was "falling significantly."
Meduza said it obtained a recent confidential opinion survey conducted by the Federal Protection Service, which is in charge of guarding the Kremlin and providing security to top government officials.
The survey, commissioned by the Kremlin, found that 55 percent of respondents backed peace talks with Ukraine while 25 percent wanted the war to go on. The report didn’t mention the margin of error.
With reporting by AP and Reuters
Ukrainian Presidential Aide Criticizes Musk For 'Magical Simple Solutions'
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Russia Will Not Export Oil Subject To Western Price Cap, Deputy Prime Minister Says
Russia will not export oil that is subject a Western-imposed price cap even if Moscow has to accept a drop in oil production, President Vladimir Putin's point man on energy said on December 4. "We are working on mechanisms to prohibit the use of a price-cap instrument, regardless of what level is set, because such interference could further destabilize the market," Russian Deputy Prime Minister Aleksandr Novak said. On December 4, Group of Seven countries and Australia agreed a $60-per-barrel price cap on Russian seaborne crude oil in a move to deprive President Vladimir Putin of revenue while keeping Russian oil flowing to global markets. To read the original story by Reuters, click here.
Rebuilding Ukraine After Russian Invasion Will Cost $500-600 Billion, Says World Bank VP
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1,700 Dead Seals Found on Russia's Caspian Coast
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U.S. Focus On Iran Is Thwarting Weapons Aid To Russia, Not Nuclear Talks
Washington will focus on preventing the supply of Iranian weapons to Russia and supporting Iranian protests instead of continuing deadlocked negotiations with Iran on restoring the nuclear deal, said Robert Malley, the U.S. special envoy for Iran, in an interview with Bloomberg. "Iran is not interested in a deal and we're focused on other things," Malley said on December 3. To read the original story by Bloomberg, click here.
Kyiv Claims Russia Used Banned Chemical Weapon
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Russian Fined For Displaying Slogan 'I Love My Father'
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Iran Reportedly Shuts Down 'Morality Police' Amid Protests
Iran has cancelled its dreaded "morality police" in the wake of continuing protests following the September death in police custody of 22-year-old Mahsa Amini, the country's chief prosecutor has said.
Iran’s state IRNA news agency on December 4 quoted Mohammad Jafar Montazeri as saying, "the morality police have nothing to do with the judiciary."
Montazeri was responding to the question of "why the morality police were being shut down."
The controversial morality police patrols were established in 2006 under hard-line President Mahmud Ahmadinejad to enforce the country's Islamic dress codes, particularly the requirement to wear the hijab, or female head covering.
The squads of men in green uniforms and women in black chadors initially issued warnings, but soon began arresting women for alleged violations.
Montazeri was quoted the previous day as saying parliament and the judiciary were "working" on whether the law requiring women to wear the hijab in public should be changed. He added that "the results will be seen in a week or two."
On December 3, the Iranian government said more than 200 people had been killed in the protests sparked by Amini's death in September.
The United Nations and Iranian rights groups put the figure at more than 300, as the national protests have evolved into one of the most serious challenges to the theocracy since the 1979 Islamic Revolution.
In a December 4 interview with Iran's state broadcaster, Deputy Security Minister Majid Mirahmadi said the "main cause" of the protests was not economic.
"This is an issue, but not the main cause," Mirahmadi said. "It is a protest against injustice."
President Ebrahim Raisi said on December 3 that Iran's Islamic foundations were enshrined in the constitution.
"But there are methods of implementing the constitution that can be flexible," he said.
Ukraine Briefs U.S. On Russian Missile Strikes, Presses For Air-Defense Systems
Ukrainian Army commander Valeriy Zaluzhniy has spoken with the chairman of the U.S. Joint Chiefs of Staff, Mark Milley, by phone and pressed Kyiv's requests for additional weaponry and equipment. In a post on Facebook late on December 3, Zaluzhniy said he briefed Milley on the latest Russian missile strikes against civilian infrastructure and asked for additional anti-aircraft and anti-missile defense systems. On November 30, the United States announced a $1.2 billion contract with defense contractor Raytheon to produce sophisticated NASAMS air-defense systems for Ukraine. To read the original story by RFE/RL’s Ukrainian Service, click here.
U.S. Intelligence Chief Says Ukraine Fighting Tempo To Decline In Coming Months
The director of U.S. national intelligence says fighting in Ukraine will continue at a reduced tempo for the coming months. Avril Haines also said on December 3 that she saw no evidence of a reduced will to resist on the part of Ukrainian forces. And she said U.S. intelligence saw no indication that the level of Russian dissent or opposition to the war in Ukraine might lead to a change in the government of President Vladimir Putin. Haines made the remarks at the annual Reagan National Defense Forum in California.
Iran Executes Four Accused Of Working For Israel
Iran executed four people accused of working for Israel's Mossad intelligence agency on December 4, Iran's state IRNA news agency reported. The executed prisoners were identified as Hossein Ordukhanzadeh, Shahin Imani Mahmudabadi, Milad Ashrafi, and Manuchehr Shahbandi. They were accused of receiving weapons and funds in the form of cryptocurrency from Mossad. The Islamic Revolutionary Guards Corps claimed to have arrested several people supposedly linked to Mossad, accusing them of destroying property and kidnapping Iranian citizens. To read the original story by AP, click here.
NASA Says Russia Took $1 Billion In Wheat From Occupied Ukraine
Russia has harvested some $1 billion worth of wheat in the parts of Ukraine occupied by Russian forces, the U.S. space agency NASA has said. NASA Harvest, the agency's food-security program, said on December 4 that satellite imagery showed some 5.8 million tons of wheat were harvested from occupied land in Ukraine. It is not known what became of the Ukrainian wheat taken by Russia, but Russian ships have been exporting grain that may have been taken from occupied Ukraine to Libya, Iran, and other countries. To read the original story by Bloomberg, click here.
U.S. Defense Secretary Accuses Russia Of 'Deliberate Cruelty' In Ukraine
The U.S. defense secretary has accused Russia of "deliberate cruelty" in its war in Ukraine, saying Moscow was intentionally targeting civilians. Lloyd Austin made the accusation on December 3 during a speech at the Ronald Reagan National Defense Forum in California. "With deliberate cruelty, Russia is putting civilians and civilian targets in its gunsights," Austin said. "Russian attacks have left children dead, schools shattered, and hospitals smashed." Still, Austin said, the Pentagon is also concerned about escalating the Ukraine conflict into a U.S. war with Moscow: "We will not be dragged into Putin's war." To read the original story from Reuters, click here.
Popular Iranian Actress Mitra Hajjar Arrested
Popular Iranian film and television actress Mitra Hajjar has been arrested, the IRNA news agency reported on December 3. Mehdi Kohian, a member of a group that monitors artists' arrests, has confirmed Hajjar's detention. The reason for the arrest of Hajjar, who is also an environmental activist, was not immediately clear. Last month, Hajjar was one of the artists summoned by prosecutors and questioned about "provocative" content posted online amid a wave of popular protests caused by the death in September of a young woman in the custody of Iran's notorious morality police. To read the original story from RFE/RL's Radio Farda, click here.
Russian Businessman Mikhail Fridman Reportedly Detained In London On Money-Laundering Suspicions
British police say a "wealthy Russian businessman" has been arrested at his multimillion-dollar London home on potential money-laundering suspicions, and later released on bail.
The National Crime Agency did not identify the man in its December 3 statement.
But Russian state news agency TASS identified the man as Mikhail Fridman, a Russian-Ukrainian billionaire and one of the principals behind the Alfa Group conglomerate.
In its statement, the crime agency said a 58-year-old man was among three men who was arrested by officers from the Combating Kleptocracy Cell on December 1 at a "multimillion-pound residence" in London.
It was unclear why the agency released its statement two days after the arrest.
The man was detained on suspicion of money laundering, conspiracy to defraud the Home Office, and conspiracy to commit perjury, the agency said.
The agency also said a 35-year-old man was arrested at the premises after he was seen leaving with a bag containing a large amount of cash.
A former boyfriend, 39, of the businessman's partner was also arrested at the property, police said.
All three were released on bail.
The press service for Alfa Group issued a statement on December 3 stating Fridman was not under arrest. But the statement did not address whether Fridman had been released on bail.
TASS, citing what it described as a source close to Fridman, said Fridman had been detained, but then released on bail.
The Russian Embassy in London, meanwhile, issued a statement on December 3 demanding more information about the detentions.
Fridman, 58, was the founder of Alfa Bank, and grew to be one of Russia's wealthiest businessmen. He's been put under sanctions by the European Union as part of broader punishment against Russia for its war against Ukraine.
The EU described him as as "a top Russian financier and enabler of [President Vladimir] Putin's inner circle."
In 2013, Fridman and one of his main Alfa partners, Pyotr Aven, reorganized their holdings following the $14 billion sale of their stake in the Russian oil company TNK-BP, and created a new London-based investment group called LetterOne.
Both Fridman and Aven stepped down from LetterOne after the EU imposed sanctions in March.
In a statement to RFE/RL, LetterOne said it had no comment on the reports of Fridman's arrest.
Iranian Reportedly Begins Construction On Nuclear Plant
Iran has begun construction on a new nuclear power plant in the country's southwest, Iranian state TV announced, amid tensions with the United States over sweeping sanctions imposed after Washington pulled out of the Islamic republic's nuclear deal with world powers. The new 300-megawatt plant, known as Karoon, will take eight years to build and cost around $2 billion, the country’s state television and radio agency reported on December 3. The plant will be located in the oil-rich Khuzestan Province, near its western border with Iraq, it said. To read the original story from AP, click here.
Iran's Security Council Says 200 People Died In Recent Protests
Two hundred people have lost their lives in Iran during nationwide protests that started in mid-September, an Iranian state security body said on December 3, a considerably smaller toll than that advanced by rights groups. "Two hundred people lost their lives in the recent riots," the Interior Ministry's Security Council said. An Islamic Revolutionary Guards Corps commander recently put the number of dead at 300. The activist HRANA news agency said that, as of November 29, at least 459 protesters had been killed during the unrest, including 64 minors. To read the original story by RFE/RL's Radio Farda, click here.
Sofia Angry At Dutch Refusal To Let Bulgaria Into Schengen
The Bulgarian government has criticized the Netherlands' decision to block the southeastern EU member's accession into Europe's passport-free Schengen zone, calling it an act of "cynicism."
Dutch Prime Minister Mark Rutte's government on December 2 announced that it will agree with Romania and Croatia's joining the Schengen zone, but will block Bulgaria's admission.
It said its veto was prompted by Bulgaria's failure to achieve satisfactory results in the fight against corruption and organized crime.
The EU justice ministers will decide on accepting Bulgaria, Croatia, and Romania in Schengen at a meeting on December 8 and 9.
The acceptance of new members in Schengen requires unanimity.
"Instead of European solidarity, Bulgaria receives cynicism," Bulgarian President Rumen Radev wrote on Facebook.
"Our efforts do not deserve neglect! Our efforts do not deserve insults," Interior Minister Ivan Demerdzhiev said.
"The Netherlands has no right not to want us in Schengen. The way they did it is absolutely unacceptable, unfounded politically and legally," Justice Minister Krum Zarkov told Bulgarian TV .
Radev and Demerdzhiev have said that Bulgarian border authorities are making "extraordinary efforts to ensure the security" of European Union borders.
Dutch Foreign Minister Wopke Hoekstra said on December 2 that it was "too early" to change the Netherlands' position regarding Bulgaria.
Hoekstra said the Netherlands can reconsider the issue only when it becomes clear that Bulgaria has an effective rule-of-law mechanism capable of dealing with corruption and organized crime.
Austria also expressed reservations about Bulgaria's Schengen membership. Chancellor Karl Nehammer said that his country supported the membership of Croatia, but was against the accession of Bulgaria and Romania.
The European Commission has said several times that Bulgaria, Romania, and Croatia fulfill the criteria and are ready for membership in the Schengen area. The European Parliament called for the countries to be accepted into the zone without further delay.
The Schengen area allows people to move freely, without identity checks, across the internal borders of 26 member states, four of which are not part of the EU.
Bulgaria, Romania, Croatia, Ireland, and Cyprus are the only EU countries that are not part of the Schengen area, while non-EU countries Iceland, Norway, Switzerland, and Liechtenstein are members.
Price Cap On Russian Oil Should Be Lowered To $30 Per Barrel, Ukraine Says
Ukraine has welcomed a $60 price cap on Russian oil agreed by the European Union, the Group of Seven (G7) group of advanced economies, and Australia, but said it should be lowered to $30 per barrel to hit Russia's economy harder.
"We always achieve our goal and Russia's economy will be destroyed, and it will pay and be responsible for all its crimes," the head of the Ukrainian presidential office, Andriy Yermak, said on Telegram.
"But it would be necessary to lower [the cap] to $30 to destroy the enemy's economy quicker," Yermak added.
In reaction to the move, the Kremlin said on December 3 that it would "not accept" a price limit.
Spokesman Dmitry Peskov told the media that the Kremlin was "analyzing" the move, adding, "We will not accept this price cap."
EU ambassadors reached the deal for the $60-per-barrel price cap on Russian seaborne oil on December 2 after breaking a deadlock over the price, with Poland saying it was not low enough.
The G7 and Australia later on December 2 joined the EU in adopting the $60 price cap.
The move is meant to help achieve the goal of restricting Russia's primary source of funding for the war in Ukraine while preventing a spike in global prices.
The cap will keep global markets well supplied while "institutionalizing" discounts created by the threat of such a limit, a senior U.S. Treasury official said on December 2.
Poland had refused to back the price-cap measure over concerns the ceiling was too high, before its ambassador to the EU confirmed Warsaw's agreement on December 2 in the evening.
Europe needed to set the cap by December 5, when an EU embargo on Russian oil shipped by sea and a ban on insurance for those supplies take effect.
The embargo will prevent shipments of Russian crude by tanker vessel to the EU, which account for two-thirds of imports, potentially depriving Russia's war chest of billions of dollars.
U.S. Treasury Secretary Janet Yellen said in a statement that the price cap "will help us achieve our goal of restricting [Russian President Vladimir] Putin's primary source of revenue for his illegal war in Ukraine while simultaneously preserving the stability of global energy supplies."
The price cap "will immediately cut into Putin's most important source of revenue," Yellen said.
The announcement is the culmination of months of effort by a coalition of countries, and Yellen commended the "hard work of our partners in achieving this outcome."
With reporting by Reuters, AFP, and dpa
Ukraine Grain Exports Down 30 Percent So Far In 2022/23
Ukraine has exported almost 18.1 million tons of grain so far in the 2022/23 season, down 29.6 percent from the 25.8 million tons exported by the same stage of the previous season, Agriculture Ministry data showed on December 2. After an almost six-month blockade caused by the Russian invasion, three Ukrainian Black Sea ports were unblocked at the end of July under a deal between Moscow and Kyiv brokered by the United Nations and Turkey. To read the original story from Reuters, click here.
Putin Could Use Peace Talks To Restock His Army, U.K. Warns
Peace talks could be used by Russian President Vladimir Putin to restock his army in Ukraine before launching another attack, British Foreign Secretary James Cleverly said in an interview with The Telegraph. Cleverly said Putin could pretend to engage in negotiations while training more troops and sending more ammunition, the newspaper said on December 2. There is a risk that a cease-fire would be used by Putin to "refit his damaged armed forces and to rearm his armed forces," The Telegraph quoted Cleverly as saying. To read the original story from The Telegraph, click here.
Russian Shelling Again Cuts Power In Kherson As Ukrainian Officials Warn Of Tough Months Ahead
Russian troops have resumed the shelling of the southern Ukrainian city of Kherson, cutting the electricity supply to the recently liberated city, as fierce fighting continues in the east and officials cautioned that Ukraine faces a tough winter because of the Russian missile attacks on its infrastructure.
"Russian invaders shelled Kherson -- damaged power grids. The city was left without electricity again," Governor Yaroslav Yanushevych said on Telegram, adding that technicians were already at work trying to repair the damage and restore power to the recently liberated city located on the right bank of the Dnieper River.
Kherson was returned to Ukrainian control on November 11, as the Russian military retreated to the left bank of the Dnieper. Russian artillery took new positions across the river and has been regularly pounding the city with artillery and rockets.
Three people were killed the previous day in the city by Russian shelling, Yanushevych said.
Millions of Ukrainians are struggling without electricity and heating at the onset of winter following waves of Russian strikes across the country, and Russian President Vladimir Putin said on December 2 that further attacks on Ukraine's infrastructure were "inevitable."
Ukrainian officials have responded with defiance, vowing to do everything to contain the damage.
Maksym Tymchenko, chief executive officer of DTEK, a major power company, said on December 2 that all six of DTEK's power stations had been attacked, some of them several times. The company has managed to bring them all back to the grid, he said.
Tymchenko voiced confidence that there was no chance "for the Russians to plunge Ukraine into darkness."
Yet, there was a power-generation deficit and issues with electricity transmission, Tymchenko told the Kyiv Security Forum.
He said that in Kyiv, the company was trying to introduce "rolling controlled blackouts: three-four hours of electricity supply, followed by four hours break. This situation will continue, we hope, until next week only, if there are no further attacks. But we are prepared for further attacks."
Additionally, he said, "We managed to accumulate enough coal stock for the country, not just for our company. We have enough gas storage to use gas for power generation. So we have enough capacity for the whole country."
"Transformers, substations, high-voltage transformers: these are what we've been in deficit of, and what we appeal to our international partners for. Some of the equipment is already on the way to Ukraine," he said.
Mayor Vitali Klitschko told the forum that last week Kyiv had faced an almost total blackout. "There was no heat and water supply. And about 4,000 employees of utility companies worked day and night to restore them."
Defense Minister Oleksiy Reznikov told the forum that the months ahead would be difficult.
"The enemy still has significant resources, but there are more and more signs that he needs a pause at any cost," he said.
As fierce fighting continues in the east, where Kyiv's forces fought off waves of attacks in Luhansk and Donetsk regions, the military reported on December 3 that over the previous day it shot down an enemy helicopter and six drones.
The General Staff said in its regular update that Russian forces launched five missile strikes, 27 air strikes, and 44 rocket attacks at civilian infrastructure and Ukrainian Army positions along the contact line.
Meanwhile, Britain's Defense Ministry said in its daily intelligence update that Russia is likely planning to encircle Bakhmut in the Donetsk region with tactical advances to the north and south.
Although the capture of Bakhmut would have limited operational value, it could allow Russia to threaten Kramatorsk and Slovyansk, the ministry said on December 3. "There is a realistic possibility that Bakhmut's capture has become primarily a symbolic, political objective for Russia," it said on Twitter.
The battlefield reports could not be independently verified.
With reporting by Reuters and CNN
Ukrainian Foreign Minister Urges Decision On Patriot Missile System
Ukraine’s foreign minister says the “time has come” for a decision on whether to provide his country with the Patriot missile defense system. “We began our conversation about Patriots in the very beginning of the war -- even actually before the war,” Dmytro Kuleba told CNN in an interview published on December 2. “But now, the time has come to make decisions.” Kuleba said that he had spoken with his American and German counterparts about the system, which he said “would be a huge help.” A decision has not yet been made at the Pentagon or at the NATO level.
G7 Joins EU In $60-Per-Barrel Price Cap For Russian Oil Delivered By Sea
The Group of Seven (G7) and Australia have joined the European Union in adopting a $60-per-barrel price cap on Russian oil, a move that the countries say will help achieve the goal of restricting Russia's primary source of funding for the war in Ukraine while preventing a spike in global prices.
EU ambassadors reached a deal for the $60-per-barrel price cap on Russian seaborne oil earlier on December 2 after breaking a deadlock over the price, with some countries saying it was not low enough.
The decision must still be approved by EU members but is expected to go through. Europe needed to set the cap by December 5, when an EU embargo on Russian oil shipped by sea and a ban on insurance for those supplies take effect.
U.S. Treasury Secretary Janet Yellen said in a statement that the price cap, which was led by the G7, "will help us achieve our goal of restricting [Russian President Vladimir] Putin's primary source of revenue for his illegal war in Ukraine while simultaneously preserving the stability of global energy supplies."
The price cap "will immediately cut into Putin's most important source of revenue," Yellen said.
The announcement is the culmination of months of effort by a coalition of countries, and Yellen commended the "hard work of our partners in achieving this outcome."
The agreement comes after a last-minute flurry of negotiations that saw Poland holding up the agreement as it sought to set the cap as low as possible. Following more than 24 hours of deliberations, Warsaw finally relented late on December 2.
A joint G7 coalition statement said the group was "prepared to review and adjust the maximum price as appropriate," taking into account market developments and potential impacts on coalition members and low and middle-income countries.
The price cap will work by prohibiting shippers and insurance companies from handling cargoes of Russian crude unless it is sold at or below the price cap.
The world's key shipping and insurance firms are based in G7 countries, giving them leverage to set the price cap and make it difficult for Moscow to sell its oil for a higher price.
With reporting by AP
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