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Daily Archives: April 2, 2022
Air New Zealand’s $2.2 billion recapitalisation: Verdict from Jarden analysts – New Zealand Herald
Posted: April 2, 2022 at 5:56 am
Air New Zealand in a trading halt, Transmission Gully finally opens and a melanoma study reveals a grim reality in the latest New Zealand Herald headlines. Video / NZ Herald
Analysts at Jarden say that in spite of the Air New Zealand's recapitalisation being an important step in improving the investment appeal of the company, they still retain their sell rating.
Air New Zealand last night announced a $2.2bn recapitalisation, comprising $1.2bn of new equity, $600m of redeemable shares and a new NZ$400m four year Crown loan facility.
The funds will be used to pay back $850m of an existing Crown loan and provide $950m for the airline to rebuild its pandemic-ravaged international network and for continued growth of its domestic operations and other parts of its business, including its loyalty scheme.
The airline has to invest in new aircraft and remodel new and existing business class cabins with seats now undergoing regulatory checks in the US and according to reportss today look more like its competitors.
The undrawn $400m new Crown loan will be used as backup should it be needed before 2026.
The analysts Andrew Steele and Nick Yeo have reduced their 12-month target share price for the company from 80c to 65c, reflecting the greater level of dilution for existing shareholders from a heavily discounted rights offer.
A two-for-one rights offer at a price of 53c per share represents a 61 per cent discount on the share price yesterday when trading was halted, ahead of the announcement that just made the deadline of being in the first quarter of the year. Airline chair Dame Therese Walsh said the price was set to be as appealing to as many shareholders as possible and had taken into account other discount offers in the market.
Those shareholders who don't take up the rights offer face dilution to their stake of more than 60 per cent.
The recapitalisation was pitched largely in line with expectations but the market may struggle with its sheer size, Salt Funds managing director Matt Goodson said.
The rights offer gives Air NZ a theoretical ex-rights price of 81c.
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"It will be interesting to see how the share price does trade," Goodson said.
The 53c offer price was a touch below expectations of one or two people "but we thought it was pitched about right".
"In terms of the forecasts, they line up with what we were thinking but, as always, airlines have massive operational and financial leverage, so very small changes can make a big difference to the bottom line," he said.
Jarden says there were still significant risks for the airline, with the sharespresenting a negatively skewed risk/reward profile.
''Risks include changes to the timing of border reopening, changes to competition, fuel costs, FX (foreign exchange) and underlying consumer demand.
They say the size of the re-capitalisation allows the airline to retain its investment grade credit rating -currently Moody's Baa2 stable outlook - by increasing available liquidity from $1.4b to around $1.8b.
The airline said last night its pre-tax loss for the full financial year would be less than $800m, not in excess of it.
The Jarden analysts forecast losses to fall to $791m from $809m. Forecasts for the 2023 and 2024 financial years are a loss of $54m and$171m.
They airline says did not expect to pay a dividend before 2026.
The airline's rebuild
In an investor presentation, the airline said while the operating environment will remain uncertain, by controlling what it can, its capacity based on available seat kilometres (ASKs) will reach 90 per cent of pre-Covid levels in the 2025 financial year.
Key assumptions for this are:
Domestic flying continues uninterrupted and without restriction
From the middle of 2022, international travel (excluding China andHong Kong where international borders are expected to remain closed) is uninterrupted,with no self-isolation restrictions and testing requirements easing for inbound andoutbound customers on Air New Zealand's key routes.
By 2025 aggregate passenger demand for domestic, Tasman and Pacific Islands travel will marginally exceed FY19 (financial year) levels, supported by network growth into those markets; and aggregate passenger demand for long haul will be slightly lower than FY19 levels (due to fewer ASKs flown overall), and have a more gradual pace of recovery relative to short-haul markets.
No long-term structural changes in travel behaviour or trends post-pandemic, including resulting from environmental sustainability concerns, health concerns related to Covid19, technological changes, or changes in customer preference.
Until March 2023, the Government freight scheme will support cargo flight revenue to assist targeted revenue recovery (noting the level of support will reduce as passenger demand returns).
The competitors that were present in FY19 will progressively re-enter the marketthrough to FY25, with capacity at levels broadly similar to FY19 at that point .
Otherwise, no major changes in the competitive environment or airfare pricingon Air New Zealand's key domestic and international routes compared to FY19.
The presentation says the pandemic and conflict in the Ukraine have caused volatility in financial markets and added uncertainty to the outlook for the New Zealand and global economies.
Jet fuel prices are currently elevated due to the conflict in Ukraine and the airline says this is partially offset by the benefit of the hedging Air New Zealand has in place.
Fuel prices are assumed to progressively reduce to S$75 per barrel for the 2024 financial year.
Greg Smith, head of retail at Devon Funds said the oil prices had moderated form recent highs but had risen overnight and was a substantial cost to the airline.
He told RNZ that hedges would run out.
The border reopening was positive but it was uncertain how quickly old flying habits would return, how well off consumers were feeling and how intense competition would be as travel recovers.
The uncertainty accounted for the heavy rights offer discount on offer, Smith said.
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Air New Zealand's $2.2 billion recapitalisation: Verdict from Jarden analysts - New Zealand Herald
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D’Arcy Waldegrave: Team NZ’s Am Cup decision a slap in the face to Kiwis – New Zealand Herald
Posted: at 5:56 am
PM Jacinda Ardern was 'disappointed' with the move of the America's Cup offshore while Auckland Mayor Phil Goff revealed more details about what will happen to the former team base locations. Video / NZ Herald / Getty Images
OPINION:
The America's Cup, which became New Zealand's Cup, is now Catalonia's Cup.
The love affair is over. We knew the passion had cooled, we were aware that one foot was already out the door, it was always coming to an end, but it doesn't make it any less painful.
Hubris, greed or the cold hard light of day - it matters not how or why this long-standing, all-consuming and tempestuous affair has taken its last breath, we just know it has.
Like all jilted lovers, Kiwi sports fans are left grasping for reason, desperate to understand how such a beautiful relationship could end like this. There is no doubt that during those halcyon days, overpowering heights were reached. Such heights could not possibly be achieved again, but that never stopped the desire to do so.
The lure of the green grass in the end was too much to overlook, the team could no longer justify staying and had to pursue the money. A long-distance relationship would be untenable.
New Zealand won't take this well, nor should we. The nationalism the team fed off for so many years is no longer relevant. The connection that encouraged government after government to bankroll the exercise in 'mouse versus lion' is no longer apparent.
The America's Cup has now reached such financially bloated and obscene proportions, there is no place for a plucky and underfunded group. Billionaires and Formula 1 collaborations all now with a timezone friendly platform in a European glamour region, give New Zealand little or no chance of retaining the Cup.
In the unlikely event they do so, what chance of it returning to our shores for a defence? Based on the accelerating cost, short of the largesse of a multi-billionaire local (looking at you Graham Hart), the only way of securing the required finance will be to auction the event off again to the highest northern-hemisphere bidder.
After Team New Zealand's Will Smithing of the government's Chris Rock, it'll be a cold day in hell if the public cheque book is opened again.
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I don't wish ill on the team. The sailors themselves will always elicit a warm glow as they strive to board and scuttle their rivals. I expect, as is the norm, when the hostilities commence in Catalonia, there will some swelling of national pride and the media will dutifully report the massacre.
This event is never coming 'home'.
I would rather have borne witness as New Zealand fought and died on its feet in front of its loyal fans, as opposed to being beheaded on its knees in a foreign clime.
The relationship is over.
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D'Arcy Waldegrave: Team NZ's Am Cup decision a slap in the face to Kiwis - New Zealand Herald
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Here Are 3 Reasons Why You Should Visit Seychelles This Summer
Posted: at 5:53 am
Seychelles is beach lovers dream vacation destination. A fun-filled beach day is all you need. Travellers can visit pristine beaches, participate in outdoor activities like hikes and treks, island excursion and all-time favourite, sailing. Travellers can also enjoy an indoor day at beautiful hotels with picturesque view.Also Read - 'Don't Travel to Jammu And Kashmir': US Issues New Travel Advisory
The beaches of Seychelles draw visitors from all over the world. Whether seeking lively or secluded beaches, long never-ending stretches of sand or tiny half-moon patches fringed by trademark boulders, visitors are sure to find their signature style of beach. Also Read - Surajkund Mela : 12 Quirky Items to Buy From The International Crafts Mela Under Rs 200
Did you know that the typical summer vacation months in India, April and May, coincide with one of the best times to visit Seychelles? Travelers can expect especially calm waters at this point. Also Read - Planning a Trip to Qatar? Top 10 Unique Day Trips From Qatars Capital
Seychelles is a 115-island archipelago. Even on a long vacation, you will struggle to cover all of them. Excursions by boat can introduce you to the refreshingly unique landscape that can be found on various islands.
Seychelles has something for everyone, whether you want to wander through bustling markets, take enviable photos around colonial-style mansions, or explore coastal mangrove forests and unspoiled nature reserves. Nature lovers will thrive in this reincarnated Eden, which is home to over fifty endemic plants and trees, including the rare coco de mer palm.
People all over the world have rediscovered their love of the great outdoors in the last two years, and there is no better place to get your fix. Take a leisurely stroll along a nature trail or put yourself to the test by ascending a steep mountain path. Indulge in bird-watching or simply enjoy the sensation of life slowing down as you take a deep breath in natures lap.
Some visitors enjoy the overall summer vibe, the vibrant colours that everything takes on in the brilliant sunlight, and, of course, the fact that children are off from school, but would rather enjoy a pristine beach from the comfort of a restaurant, spa, yacht, or hotel room with a view. Spend the day relaxing in your luxurious hotel room, which offers 360-degree views of azure waters and powder-white beaches lined with palm trees. Step outside to savour sumptuous Creole cuisine. On a sheltered boat ride, you can get a dose of both vitamin sea and adrenaline. Relax in a relaxing spa session and let your stress melt away. Whatever you do, ocean views are almost always present.
The last two years have made everyone more conscious of their personal space than ever before. Seychelles is an exclusive holiday destination with a very small population, allowing visitors to enjoy just the right level of seclusion and ease.
(With IANS inputs)
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Ongoing Corruption Trial in the Seychelles Spells Trouble …
Posted: at 5:53 am
Those following the high-profile case of the group that has been coined the Seychelles 9 were taken by surprise on February 11 when weapons charges were added to the range of accusations already filed against the defendants. The nine arrested include former President France-Albert Renes widow and son, a former chief of staff of the defense forces, a retired presidential chief security officer, a prominent businessman and his attorney wife along with a reportedly future presidential candidate. The suspects have been accused of aiding and abetting in the theft of $50 million in a case which goes back to 2002.
It is a well-known fact that the Seychellois government has been trying hard to rebrand the islands public perception. Often associated with those seeking to hide funds, sometimes with illicit intentions, the Seychelles Islands featured prominently in the Pandora Papers. Despite this expose, the island nations efforts to stem laundering and instill adequate regulation led the European Union to announce its intention to remove the Seychelles from its official blacklist of tax havens in October 2021.
And although progress has seemingly been made on the international front, the relatively new government of President Wavel Ramkalawan feels it still has a lot to prove regarding the way it handles corruption and laundering. It would appear that the president is most concerned with creating a sense of daylight between the old government, which was more closely associated with Rene, and his own governments efforts.
It is this sense of urgency that has encouraged what has become the most invasive witch-hunt the East African nation has known to date. Indeed, it is a witch-hunt because all suspects have an association, either personal, professional, or political, with the government of former President Rene. More often than not, when weapons charges surface out of the blue, it is a good indication that something is amiss in paradise.
Those familiar with the archipelagos history will know that the country has a long record of attempted coup dtats. This was first seen in June 1977 when supporters of Rene, who would become president, overthrew President James Mancham when he was in London. Those seeking to restore Manchams government attempted a (failed) counter-coup in November 1981, also known as Operation Angela. 1986 saw Operation Distant Lash, a further coup attempt against Rene, while 1987 saw yet another unsuccessful attempt to overthrow Renes government.
All of this is important because it was exactly this lack of political stability that led Renes government to seek supporters willing to stash weapons for use in case of future attempts at sowing instability. One such supporter was the arrested businessman Mukesh Valabhji. According to his defense team, Valabhji, out of both a sense of patriotism and a personal interest he had in maintaining stability on the island, allowed the Seychelles Peoples Defence Force to stash these weapons in his home.
This defense claim begins to make sense when one considers the extent of weapons found. According to court records, this included seventy-two Draco guns, AK assault rifles, and Makarov pistols, 122 assault rifle magazines as well as 43,416 bullets. All these weapons have serial numbers which show they were imported by the Seychelles Peoples Defence Force under official government licenses. The weapons were stored behind a large cement wall in the house of the accused, which also gives credence to the theory that it was a government military weapons stash to be employed in case of another coup attempt.
Further questions, highlighted by the organization Seychelles Justice, must be raised when taking into account the way in which the government has been treating the suspects. International law firm Kobre and Kim, representing some of the accused, has publicly accused the government of employing intimidation tactics against its lawyers, alongside leaving the accused without representation. The defendants have also been held incommunicado and, according to the lawyers, in inhumane conditions. One must question what it is the government might be trying to hide.
A government trying to distinguish itself from the authoritarian rule of a former president would be smart to consider the implications of such attempts to run a kangaroo court trial. Although seemingly doing a good job combatting corruption, politically motivated trials and false accusations with national security implications do not bode well with the international human rights community and national ratings agencies. They also dont bode well with those considering doing business on the island.
A true test of the governments intentions will be the March 25 bail hearing for Laura Valabhji, the businessman Mukesh Valabhjis wife. Having worked with the attorney general in the past in her capacity as a lawyer alongside reportedly weak evidence of her complicity in the alleged crimes and her not being a flight risk, it will be seen if some semblance of justice can indeed be attained in a Seychellois court.
If all it takes to rid the country of political enemies are accusations of corruption and weapons possession, without any due process, the government cannot expect the international business community to view it as an attractive destination for investing their money. This becomes even more concerning, when the crusade is being led by the Anti-Corruption Commission of Seychelles (ACCS), an organization whose sole purpose is combatting corruption. One would, perhaps naively, assume this includes political corruption, among which false charges being levied against political enemies should be top of the list.
Jean Baptiste is a French freelance writer who studied cinema and audiovisual writing. He is currently the editor of the newly launched Indian Ocean Economic Times.
Image: Reuters.
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Ongoing Corruption Trial in the Seychelles Spells Trouble ...
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In the Seychelles, conservation efforts are paying off for the endangered green turtle – The Week
Posted: at 5:53 am
There is a welcome and wonderful sight appearing on beaches in the Seychelles.
The endangered green turtle is making a comeback here, after several decades of protection and close monitoring. Turtle hunting was banned in the Seychelles, an archipelago of 115 islands off the coast of East Africa, in 1968, but it was a slow recovery. In the early 1980s, researchers would find just one or two turtle tracks on a beach, but by the mid-1990s, there would be 10 to 20.
It's only been up from there. This month, a new study was published in Endangered Species Research about the Aldabra Atoll in the Seychelles. Researchers found that in the late 1960s, the annual number of green turtle clutches was in the 2,000 to 3,000 range, and that increased to more than 15,000 in the late 2010s.
"There's potential for this population to double, triple, we're not even sure," lead author Adam Pritchard from the University of Exeter told Popular Science. "This could just be the start. It's amazing that, after slower growth in the beginning, there's been this real explosion in recent years."
The Aldabra Atoll has one of the world's largest green turtle populations, and in addition to the hunting ban, the fact that the area was designated a UNESCO Heritage Site in 1982 has helped the species with its recovery. It takes at least 20 to 50 years for green turtles to reach sexual maturity and start reproducing, making long-term monitoring another important step in ensuring the population continues to grow.
Over the last five decades, hundreds of people have been recording data on the green turtles, collecting information from more than 50 beaches across Aldabra. "One thing that people have learned is protection works," Jeanne Mortimer, founder and chair of Turtle Action Group Seychelles, told Popular Science. "But you may need to be patient and wait for 35 years."
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2022 US Open Water Nationals: 15 Year-Old Olympian Katie Grimes Wins 10k – SwimSwam
Posted: at 5:53 am
2022 US Open Water National Championships
Though its April Fools, this is no joke! Katie Grimes (SAND) is your womens 10k National Champion. The Tokyo pool Olympian finished 6 laps around the Fort Meyers Beach course ahead of Mariah Denigan and Frances Carolina Jouisse.
The conditions appeared to be extremely rough as cloudy skies, high winds, and massive waves could be seen throughout the swimmers course.
It was actually Grimes Sandpipers and Olympic teammate Erica Sullivan who took the early lead over the entire field through the first 3 laps. Grimes was hanging onto the 2nd spot, and made her move heading into the 4th lap. Grimes would maintain her lead through the final 3 laps to win the event.
Sullivan, who won the womens 10k last year, faded out of the top 3 finishers.
The event will serve as a selection meet for the 2022 US Open Water National Team, as well as the perks and funding that go along with that status. The top 6 finishers in the 10k will automatically earn a spot on the National Team, which means that Grimes and Denigan have both qualified for the National Team. This is Grimes 1st Open Water National Team appearance.
This weeks meet also serves as a selection event for the 2022 World Junior Open Water Swimming Championships, set for September 1st-4th in Beau Vallon, Seychelles.
Grimes swim earns her a spot on both the 2022 US Open Water National Team and Junior Team, as well as a roster spot on the 2022 FINA World Junior Open Water Championships which will take place in Beau Vallon, Seychelles.
Well have to wait until the end of the meet for the selection of the 2022-2023 US Open Water National Team and 2022 World Championship Team, as these both follow a points-based system throughout the National Championships.
The 2022 Open Water National Championships didnt include the United States two female open water Olympians, Haley Anderson and Ashley Twitchell. Anderson announced her retirement yesterday, and Twitchell is expecting her first child in 2022. This wouldve been their 13th-consecutive appearance at the US Open Water Nationals.
Full results are not yet available, but we will update as they are published.
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Russia warns U.S. to stay away for its "own good" as …
Posted: at 5:50 am
Moscow Russia warned the United States on Tuesday against sending warships to the Black Sea, urging American forces to stay away from the annexed Crimean peninsula "for their own good" as the situation along Ukraine's border caused increasing concern in the West. The U.S. Secretary of State, meeting with Ukrainian and NATO officials in Brussels, made it clear that the Biden administration, along with its allies in Europe, has Ukraine's back and considers Russia's ongoing military buildup in the region "very provocative."
The Turkish Foreign Ministry said on Friday that Washington had informed Ankara that two U.S. warships would pass through Turkish waters this week to be deployed in the Black Sea. The deployment would come amid a significant escalation of the conflict in eastern Ukraine between Russian-backed separatists and Ukraine's forces, which have U.S. and European support.
Hostilities first flared in 2014 when Russia unilaterally annexed Crimea a peninsula that sticks out into the Black Sea and is home to a Russian navy base away from Ukraine, drawing condemnation from the Western world and a series of sanctions.
Russian Deputy Foreign Ministry Sergei Ryabkov was cited by Russian news agencies on Tuesday as calling the deployment of U.S. warships in the Black Sea a provocation designed to test Russia's nerves.
"There is absolutely nothing for American ships to be doing near our shores," Ryabkov said, warning there was a very high risk of unspecified incidents if U.S. military hardware were to be positioned in the Black Sea.
"We warn the United States that it will be better for them to stay far away from Crimea and our Black Sea coast," Ryabkov was quoted as saying. "It will be for their own good."
Pentagon spokesman John Kirby declined during a regular press briefing on Friday to confirm the Turkish government's statement that U.S. warships were being sent to the Black Sea. He noted that the U.S. "routinely" operates in the Black Sea, but said he wouldn't "speak to operations."
The current escalation has added strain to already tense U.S.-Russian relations. Secretary of State Antony Blinken warned Russia against aggressive actions in an interview aired over the weekend, saying any aggression in Ukraine would have consequences.
Ryabkov responded on Tuesday, accusing the Russian "adversary" of trying to undermine Russia's position on the international stage. He reiterated Russia's readiness to defend the interests of its citizens, and ethnic Russian speakers in eastern Ukraine.
Kremlin spokesman Dmitry Peskov said Russia was preparing itself in the event any new sanctions should be imposed on Moscow by the U.S. or its global partners.
Meanwhile, Russia has continued to move forces into both Crimea and the region along its border with Ukraine. The Defense Ministry reported on Tuesday that 15 warships and vessels of the Caspian Flotilla had been sent to the Black Sea as part of previously announced military exercises.
Ukraine said earlier this week that Russia had already massed more than 40,000 troops along its border, and at least 40,000 more in Crimea. Russia says the troop buildup is part of exercises, and has stressed that its forces will go where they want, when they want on Russian territory.
Top U.S. officials are in Europe this week, including Secretary of Defense Lloyd Austin and Blinken. Austin announced during a stop in Germany on Tuesday that the U.S. was going to deploy an additional 500 troops to that country.
When asked if the move was meant as a message to Russia, he said it was "a sign to NATO" of the U.S. commitment to the transatlantic alliance, and of the firm commitment to Germany. Under President Donald Trump, Washington said it would withdraw thousands of the American forces who've been stationed in Germany for decades. That decision was suspended by the Biden administration, and now the force is set to grow.
Blinken, meanwhile, was in Brussels, meeting NATO partners, and he met separately with his Ukrainian counterpart to discuss the standoff with Russia.
"The United States stands firmly behind the sovereignty and territorial integrity of Ukraine, and I'm her to reaffirm that with the foreign minister today," Blinken said. "That's particularly important in a time when we're seeing, unfortunately, Russia take very provocative action when it comes to Ukraine. We're now seeing the largest concentration of Russian forces on Ukraine's border since 2014. That is a big concern not only to Ukraine, but to the United States and indeed to many of our allies and partners."
Sitting across from him, Ukraine's Foreign Minister Dmytro Kuleba said the Russian buildup was "taking place not only along the border of Ukraine, but along the border of the democratic world. For thousands of kilometers to the north and to the east of our border with Russia, there is no democracy. So, this is the struggle that is taking place between democracies and authoritarianism, and in this struggle the support of the United States is absolutely crucial, and deeply appreciated."
Kuleba thanked NATO, also, and said that warnings already conveyed to Moscow through diplomatic channels, "will be supported by actions that make it very clear for Russia that the price of further aggression against Ukraine will be too heavy for it to bear."
He said the Ukrainian and U.S. delegations in Brussels, and more broadly the NATO allies at large, would continue discussing ways to ensure stability along his country's tense border with Russia.
While no NATO deployments have been confirmed, Russia's Defense Ministry claimed the alliance was planning to position 40,000 more troops and 15,000 pieces of military equipment close to Russian territory. He didn't elaborate, but said that "in response to the military activity of the alliance that threatens Russia, we have taken appropriate measures."
NATO Secretary-General Jens Stoltenberg said earlier on Tuesday that he was "seriously concerned" by Russia's deployment of additional forces to the Ukrainian border.
"Russia is now trying to reestablish some kind of sphere of influence where they try to decide what neighbors can do," Stoltenberg said.
CBSNews.com's Tucker Reals contributed to this report.
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Russia headed for recession, closed economy despite rouble …
Posted: at 5:50 am
The United States Treasury sees Russia as struggling with steep inflation, diminished exports, and shortages
WASHINGTON, USA Punishing sanctions imposed by the United States and its allies on Moscow for invading Ukraine are pushing Russia into recession and starting to turn it back into a closed economy, a senior US Treasury official said on Friday, April 1.
The official, speaking on condition of anonymity, told reporters that the Treasury sees Russia as struggling with steep inflation, diminished exports, and shortages despite a recovery of its rouble against the dollar. The official dismissed the rebound as driven by stringent capital controls and foreign exchange curbs, not market forces.
Inflation that has run as high as 6% over the past three weeks is a better indication of the sanctions performance inside Russia, revealing the roubles diminished purchasing power, the official said, adding that black market rouble exchange rates were well below the international rate.
After Western democracies imposed initial sanctions immobilizing around half of the Russian central banks $630 billion in foreign exchange assets and cutting several key Russian banks off from the SWIFT international transaction network, the roublelost half its value against the dollar.
It has since recouped its pre-invasion value, touching a five-week high in early Moscow trade on Friday before settling in the 83-84 range to the dollar.
But the Treasury official said that will not stop a steep contraction in Russias economic output that outside analysts now forecast at about 10% this year far worse than the 2.7% contraction it suffered during 2020, the first year of the COVID-19 pandemic.
The economic consequences Russia is facing are severe: high inflation that will only get higher, and deep recession that will only get deeper, the official said.
The Treasury official said the cumulative effect of sanctions on banks, wealthy oligarchs tied to Russian President Vladimir Putin, key industrial sectors, and US export controls that deny Russia access to critical technologies, was to push Russia towards its Cold War existence as a closed economy.
But Russia, a producer of mainly commodities and raw materials, was ill-equipped to produce its own consumer and technology goods, the official said.
As a closed economy, Russia will only be able to consume what they produce, which will be a stark adjustment, the official added.
The process will not happen immediately. China, India, and other countries are still trading with Russia, and could replace some goods and parts that Russia would normally buy from Western firms.
However, its access to semiconductors, software, and other technologies is limited due to the US export restrictions that also will prevent China from selling Moscow any such chips since all its semiconductors are made with US technology or software.
The United States intended for the sanctions and export curbs to be debilitating to the Russian economy and cripple the Russian militarys ability to procure parts and equipment for the war effort, the official said
Washington was comfortable with enforcement of the sanctions and export controls thus far, but remained on the lookout for any violations.
The Treasury comments come as senior Biden administration officials traveled the globe to press world leaders to keep up sanctions pressure on Russia.
Washington planned to maintain humanitarian exemptions from the sanctions, given growing food insecurity problems and Russias role as a major wheat producer, the Treasury official said.
Other exemptions were intended to protect Western financial institutions that hold Russian assets, through a license to allow Russian debt payments to be made. Rappler.com
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Russia threatens to fine Wikipedia if it doesn’t remove some details about the war – NPR
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Russia's communications regulator is threatening to fine Google and Wikipedia for not removing what it describes as misinformation about the war in Ukraine. Chris Delmas/AFP via Getty Images hide caption
Russia's communications regulator is threatening to fine Google and Wikipedia for not removing what it describes as misinformation about the war in Ukraine.
The Russian government is threatening to fine Wikipedia if it doesn't remove content that contradicts its narrative about the war in Ukraine.
Communications regulator Roskomnadzor announced on Thursday that it had asked the online encyclopedia to remove a page containing "unreliable socially significant materials, as well as other prohibited information" about its operations in Ukraine, according to an English translation. It accused the site of intentionally misinforming Russian users.
It said it could fine Wikipedia up to 4 million rubles, or nearly $47,000, for failing to remove those materials, which are illegal under Russian law.
Russia enacted legislation last month that criminalizes war reporting that doesn't echo the Kremlin's version of events including by calling it a war. The law has forced most of Russia's remaining independent news outlets to close and many journalists to leave the country for fear of facing up to 15 years in prison.
The Wikipedia page in question describes the history and context of the war, as well as specific military operations, casualties and humanitarian impact, human rights violations, legal proceedings, international reaction, economic consequences and media depictions.
It is not clear what specific details the regulator is looking to have removed, but Newsweek reports that it said on Monday that the Russian-language version of the page contained "inaccurate information about the special military operation to protect the Donetsk and Luhansk People's Republics for the de-militarization and de-Nazification of Ukraine," including the use of the words war, aggression and invasion.
Roskomnadzor's announcement follows two separate warnings to the Wikimedia Foundation, which owns and operates the encyclopedia.
A spokesperson for the foundation told NPR over email that it had received demands on March 1 and again on March 29 to remove information from the Russian-language version of the page about the invasion, before learning of the possible fine.
"The Wikimedia Foundation supports everyone's fundamental right to access free, open, and verifiable information; this escalation does not change our commitment," the spokesperson said.
The information on Wikipedia is sourced and shared by volunteers, with the foundation saying last month that Ukrainian volunteers were continuing to make additions and edits to the encyclopedia even as the war on their country unfolded.
The spokesperson reiterated on Friday that the information within the article continues to be verified, fact-checked and "improved by an ever growing number of Wikipedia volunteer editors," who determine the site's content and editorial standards.
"The Wikimedia Foundation protects and will continue to protect their ability to engage in research and contribute to Wikipedia," the spokesperson added.
In a statement released after the first takedown request last month, the Wikimedia Foundation said the demand "threatened censorship," and that denying people access to reliable information at a time of crisis could have "life-altering consequences." As of March 3, they said the English-language version of the page had been viewed more than 11 million times, and articles about the war had been created in more than 99 languages.
"Wikipedia is an important source of reliable, factual information in this crisis," the foundation wrote. "In recognition of this important role, we will not back down in the face of efforts to censor and intimidate members of our movement. We stand by our mission to deliver free knowledge to the world."
Wikipedia isn't the only information platform facing such a request from Roskomnadzor. Just days ago, the agency warned it would fine Google up to 8 million rubles (more than $93,000) for not following its orders to remove YouTube videos to which it objected.
This story originally appeared on the Morning Edition live blog.
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No hope for science in Russia: the academics trying to flee to the west – The Guardian
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Prof John Duggan*, a climate scientist at a Russell Group university, had a Zoom call a few weeks ago with two Russian research partners shortly after their country invaded Ukraine. Duggan, who has worked with the academics for a while, suddenly found them unusually quiet and hesitant. He sensed that they were worried someone was looking over their shoulder.
In Russia, expressing opposition to the invasion is risky. But in subsequent calls Duggan says his friends have become bolder. Now they have given up hope for their work at home. They feel there is no future for science in Russia and are seeking positions abroad so they can flee.
Given that criticising the war can now lead to 15 years in prison in Russia, Duggan describes all communications with the scientists he is trying to help as deliberately ambiguous. But he says: They feel shame at what is being done in their name in Ukraine.
UK academics say this is becoming a familiar story. Russian scientists are turning to partners abroad to help them escape, but academics in the UK say even the most talented may struggle to find positions at short notice in British universities.
Last Sunday, the science minister, George Freeman, announced that the UK would follow other European countries in cutting the bulk of its research ties with Russia and switching off funding for any research with links to the state and its institutional collaborators.
The Russian government last week prohibited its scientists from taking part in international conferences or publishing research in international journals. Russian scientists say there is some appetite to ignore this, but there are reports that they are being blocked from publishing abroad anyway because some western academics are refusing to review research papers with Russian names on.
Duggans university, which the Guardian is not naming in order to avoid risk to the Russian academics, is making sanctuary for Ukrainian scholars and students its top priority, along with supporting staff and students already affected by the war. The university is also exploring whether it could offer positions to any Russians. Duggan says: The university is keen to be as supportive as possible. It will work within government guidelines, but recognises that many individual Russian academics and researchers have publicly criticised this invasion, often at great personal risk.
Science is considered a global endeavour with researchers partnering up with colleagues all over the world. Now many in Russia feel their work, shut off from international collaborations, will wither.
Dr Alexander Nozik, a physicist at the Moscow Institute of Physics and Technology, told the Guardian: I believe and most of my colleagues believe that it just isnt possible to do isolated science. In physics the science journal system in Russia is mostly dead.
Nozik says most younger academics, including me are talking to contacts in Europe and formulating a backup plan. He adds: A lot of world-class scientists I know here cant work on their research because they are so depressed. They cant understand how we can live with all this.
Nozik says he intends to ignore the government statement banning publishing in international journals and many colleagues will follow suit. But he adds that researchers there are complaining a lot that academics [in the west] are blocking [journal] papers by refusing to review them if they have a Russian collaborator.
Prof Erica Brewer*, an environmental scientist at a northern research university in the UK, fears for the safety of research partners in Russia who are speaking out against the war. I have received requests from two very talented Russian colleagues asking if I know of opportunities to work abroad, she says. A colleague and I have put out feelers for them but it is currently not possible to find a place for them in the UK or Europe.
Dr James Ryan, a senior lecturer in modern Russian history at Cardiff University, says: Ive been in contact with academic friends in Russia. Some of them have already fled, and have no intention of returning any time soon. Thats the situation with many more.
However, he says, while some Russian academics may be able to use their reputations and academic contacts to secure short term research funding at European universities, finding longer-term jobs in the fiercely competitive academic job market will be much harder.
His own work is affected. Before the invasion Ryan relied on using libraries and archives in Russia for his research, but now he has no idea when he will be able to go back there.
Thousands of academics in Russia have signed open letters condemning the war. Last Friday, Russias ministry of justice declared the popular Russian science newspaper Troitsky Variant a foreign agent following its publication of a letter by scientists and science journalists opposing the invasion that was signed by about 8,000 people. The papers website is now blocked in Russia.
The majority of Russian universities are run by the state and last month the Russian rectors union, representing nearly 700 university chancellors and presidents, horrified British universities by issuing a statement echoing Vladimir Putins propaganda on the denazification of Ukraine and supporting our president who made the most difficult, hard-won but necessary decision in his life.
Ryan says that after this, it would be ethically problematic to seek a formal invitation from a Russian institution [to do research there].
He firmly supports the British governments decision to cut formal ties with Russian higher education institutions, but intends to maintain informal personal connections with colleagues in Russia. Last week, as an act of solidarity, he attended an online conference with mostly Russian historians who he says were certainly not supportive of the Russian war.
He adds: I would be horrified if academics are refusing to review papers written or co-written by Russians. This is racism.
Terry Callaghan, a professor of Arctic ecology at Sheffield University, says: We have very strong collaborations with Russian scientists and the invasion is a huge blow to our work.
Callaghan has helped establish 89 environmental research stations in the Arctic, 21 of which are in Russia, but says lots of our research is now frozen because of the invasion. Im absolutely sure many scientists will leave Russia. Putin has divided the nation, but scientists tend to speak English and they also read the internet so they understand what is really happening in Ukraine.
Callaghan paused his professorship at the National Research Tomsk State University in Siberia after the Russian rectors statement. He says he has halted all formal commitments with Russia but will not abandon personal connections with scientists that he has been fostering for 30 years.
However, he says this is more difficult to do in other places where he conducts research. In Finland we are not allowed even to email a Russian, and where I am now [in Arctic Norway] we cant have a Russian on a Zoom call.
Individual academics in Russia are still welcome to attend the British Association for Slavonic and East European Studies annual conference in Cambridge next weekend, albeit not representing their institutions.
Dr Ben Phillips, a historian of modern Russian at Exeter University and a member of the societys executive committee, says: We discussed whether we should exclude Russian participants but decided against it.
He says that instead the conference, which will feature a keynote address from a Ukrainian academic, will have a strict code of conduct and panel chairs will ask anyone who expresses support for the invasion of Ukraine to leave. But he adds: Anyone harassing Russian academics on account of their nationality will be treated the same way.
* Some names have been changed to avoid identifying academics who are trying to leave Russia.
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No hope for science in Russia: the academics trying to flee to the west - The Guardian
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