Venezuela’s Maduro seeks debt negotiations after US sanctions

Venezuela's President Nicolas Maduro gestures as he speaks during a session of the National Constituent Assembly at Palacio Federal Legislativo in Caracas, Venezuela on Thursday. (Reuters)
Updated 09 September 2017
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Venezuela’s Maduro seeks debt negotiations after US sanctions

CARACAS: Venezuelan President Nicolas Maduro has invited bondholders to unspecified “negotiations” over the country’s foreign debt in coming days, in response to recent US financial sanctions.
With Venezuela deep in recession and its currency reserves at their lowest in more than two decades, the Maduro government and state oil company PDVSA have to pay about $4 billion in debt and interest during the rest of 2017.
“All bondholders are invited to various rounds of negotiations over the next few weeks,” the president said in a speech late on Thursday to the new Constituent Assembly.
He reiterated Venezuela would keep honoring debt, but said he wanted to talk with bondholders affected by sanctions recently imposed by US President Donald Trump.
Maduro said Vice President Tareck El Aissami, already under US financial sanctions over drug trafficking allegations, and Finance Minister Ramon Lobo would coordinate talks and some “bilateral conversations” with bondholders had already begun.
In the same speech, Maduro said Venezuela would seek to “free” itself of the US dollar and “implement a new system of international payments” using currencies such as the yuan, yen, rupee, euro and ruble.
The president did not, however, specify whether paying in a different currency was an option his government wanted to discuss with bondholders.
The Washington-based Institute of International Finance, which represents large banks and financial institutions, said it was advising a group of holders of Venezuelan bonds.
“This informal group will take note of the Venezuelan announcements and discuss how to proceed,” IIF Executive Managing Director Hung Tran told Reuters. The group was made up of bondholders from the United States and elsewhere, he said.
Tran said Venezuela could not change the currency of bonds without agreement by all or a large majority of holders.
Last month, Trump, who brands Maduro a “dictator,” signed an executive order that prohibits Americans from dealing in new debt issued by the Venezuelan government or PDVSA.
That could complicate any debt refinancing attempts.
Washington has also sanctioned PDVSA’s finance boss Simon Zerpa, meaning US businesses are barred from dealing with him, and even Maduro himself in measures intended to punish the Venezuelan government for alleged corruption and rights abuses.
“I will be announcing Venezuela’s definitive response to the financial aggression we — and the international investors — have suffered from Donald Trump and (opposition leader) Julio Borges,” Maduro added in the speech on Thursday.
Borges, the head of the opposition-led congress whose role has been overridden by the Constituent Assembly, has been spearheading an opposition campaign for foreign financial institutions to put the squeeze on Venezuela’s government.
“Venezuela will take a position to defend the judicial and financial security of the republic and its investors or holders of financial instruments,” Maduro added.

BOND PRICES STABLE
Though Maduro gave no further details of what his government wanted to discuss with bondholders or where talks would be held, he did say 74 percent were American or Canadian.
Three bondholders consulted by Reuters said they had not received any formal approach to dialogue, though two said intermediaries for the government had been communicating with some investors informally.
“We didn’t receive an invitation or anything like that. Even if we had we don’t think we would take it too seriously,” said one portfolio manager at a large New York firm that owns Venezuelan debt, asking not to be named.
In trading on Friday, Venezuelan government and PDVSA bonds were little changed in price.
The OPEC nation of 30 million people is in the fourth year of a recession, with its population grappling with triple-digit inflation and shortages of food and medicine.
Critics say a long-failing socialist economic system is to blame for Venezuela’s financial troubles, while the government blames an alleged “economic war” by domestic foes and Washington.
International reserves stood at $9.873 billion on Wednesday, compared with nearly $30 billion five years ago, central bank data shows. They are at their lowest level since 1995.
Most of the country’s reserves are tied up in gold that cannot be used in financial transactions without going through a certification process in another country.
In another speech on Friday, Maduro said that Venezuela would begin selling its oil, gas, gold and “all products” in currencies other than the US dollar, but gave no further details of the intended changes in export transactions.


Protesters’ biggest day expected at UN climate talks, where progress is slow

Updated 5 sec ago
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Protesters’ biggest day expected at UN climate talks, where progress is slow

  • Several experts have said $1 trillion a year or more is needed both to compensate for such damages and to pay for a clean-energy transition that most countries can’t afford on their own
BAKU: The United Nations climate talks neared the end of their first week on Saturday with negotiators still at work on how much wealthier nations will pay for developing countries to adapt to planetary warming. Meanwhile, activists planned actions on what is traditionally their biggest protest day during the two-week talks.
The demonstration in Baku, Azerbaijan is expected to be echoed at sites around the world in a global “day of action” for climate justice that’s become an annual event.
Negotiators at COP29, as the talks are known, will return to a hoped-for deal that might be worth hundreds of billions of dollars to poorer nations. Many are in the Global South and already suffering the costly impacts of weather disasters fueled by climate change. Several experts have said $1 trillion a year or more is needed both to compensate for such damages and to pay for a clean-energy transition that most countries can’t afford on their own.
Panama environment minister Juan Carlos Navarro told The Associated Press he is “not encouraged” by what he’s seeing at COP29 so far.
“What I see is a lot of talk and very little action,” he said, noting that Panama is among the group of countries least responsible for warming emissions but most vulnerable to the damage caused by climate change-fueled disasters. He added that financing was not a point of consensus at the COP16 biodiversity talks this year, which suggests to him that may be a sticking point at these talks as well.
“We must face these challenges with a true sense of urgency and sincerity,” he said. “We are dragging our feet as a planet.”
The talks came in for criticism on several fronts Friday. Two former top UN officials signed a letter that suggested the process needs to shift from negotiation to implementation. And others, including former US Vice President Al Gore, criticized the looming presence of the fossil fuel industry and fossil-fuel-reliant nations in the talks. One analysis found at least 1,770 people with fossil fuel ties on the attendees list for the Baku talks.
Progress may get a boost as many nations’ ministers, whose approval is necessary for whatever negotiators do, arrive in the second week.

US plane hit by gunfire on Dallas runway: aviation agency

Updated 18 min 39 sec ago
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US plane hit by gunfire on Dallas runway: aviation agency

WASHINGTON: A Southwest Airlines plane was hit by gunfire while taking off from an airport in the US city of Dallas on Friday, the Federal Aviation Administration said.
“While taxiing for takeoff at Dallas Love Field Airport, Southwest Airlines Flight 2494 was reportedly struck by gunfire near the cockpit,” a statement on the FAA’s website said.
“The Boeing 737-800 returned to the gate, where passengers deplaned.”
The incident happened at around 8:30 p.m. Friday (0230 GMT Saturday), with the flight headed from Dallas, Texas, to Indianapolis, Indiana.
There were no reported injuries, according to a statement from Dallas Love Field Airport on social media platform X.
 


Investigation reveals a Russian factory’s plan to mix decoys with a new deadly weapon in Ukraine

Updated 16 November 2024
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Investigation reveals a Russian factory’s plan to mix decoys with a new deadly weapon in Ukraine

  • Unarmed decoys now make up more than half the drones targeting Ukraine and as much as 75 percent of the new drones coming out of the factory in Russia’s Alabuga Special Economic Zone

KYIV: A high-tech factory in central Russia has created a new, deadly force to attack Ukraine: a small number of highly destructive thermobaric drones surrounded by huge swarms of cheap foam decoys.
The plan, which Russia dubbed Operation False Target, is intended to force Ukraine to expend scarce resources to save lives and preserve critical infrastructure, including by using expensive air defense munitions, according to a person familiar with Russia’s production and a Ukrainian electronics expert who hunts them from his specially outfitted van.
Neither radar, sharpshooters nor even electronics experts can tell which drones are deadly in the skies.
Here’s what to know from AP’s investigation:
A deadly mix
Unarmed decoys now make up more than half the drones targeting Ukraine and as much as 75 percent of the new drones coming out of the factory in Russia’s Alabuga Special Economic Zone, according to the person familiar with Russia’s production, who spoke on condition of anonymity because the industry is highly sensitive, and the Ukrainian electronics expert.
The same factory produces a particularly deadly variant of the Shahed unmanned aircraft armed with thermobaric warheads, the person said.
During the first weekend of November, the Kyiv region spent 20 hours under air alert, and the sound of buzzing drones mingled with the boom of air defenses and rifle shots. In October, Moscow attacked with at least 1,889 drones – 80 percent more than in August, according to an AP analysis tracking the drones for months.
On Saturday, Russia launched 145 drones across Ukraine, just days after the re-election of Donald Trump threw into doubt US support for the country.
Since summer, most drones crash, are shot down or are diverted by electronic jamming, according to an AP analysis of the Ukrainian military briefings. Less than 6 percent hit a discernible target, according to the data analyzed by AP since the end of July. But the sheer numbers mean a handful can slip through every day – and that is enough to be deadly.
The drone lab
Tatarstan’s Alabuga zone, an industrial complex about 1,000 kilometers (600 miles) east of Moscow, is a laboratory for Russian drone production. Originally set up in 2006 to attract businesses and investment to Tatarstan, it expanded after the 2022 invasion of Ukraine and some sectors switched to military production, adding new buildings and renovating existing sites, according to satellite images analyzed by The Associated Press.
In social media videos, the factory promoted itself as an innovation hub. But David Albright of the Washington-based Institute for Science and International Security said Alabuga’s current purpose is purely to produce and sell drones to Russia‘s Ministry of Defense. The videos and other promotional media were taken down after an AP investigation found that many of the African women recruited to fill labor shortages there complained they were duped into taking jobs at the plant.
Russia and Iran  signed a $1.7 billion deal for the Shaheds in 2022, after President Vladimir Putin invaded neighboring Ukraine, and Moscow began using Iranian imports of the unmanned aerial vehicles, or UAVs, in battle later that year. Soon after the deal was signed, production started in Alabuga.
The most fearsome Shahed adaptation so far designed at the plant is armed with thermobarics, also known as vacuum bombs, the person with knowledge of Russian drone production said.
The plan to develop unarmed decoy drones at Alabuga was developed in late 2022, according to the person with knowledge of Russian drone production. Production of the decoys started earlier this year, said the person, who agreed to speak only on condition of anonymity. Now the plant turns out about 40 of the unarmed drones a day and around 10 armed ones, which are more expensive and take longer to produce.
The vacuum bomb
From a military point of view, thermobarics are ideal for going after targets that are either inside fortified buildings or deep underground. They create a vortex of high pressure and heat that penetrates the thickest walls and, at the same time, sucks out all the oxygen in their path.
Alabuga’s thermobaric drones are particularly destructive when they strike buildings, because they are also loaded with ball bearings to cause maximum damage even beyond the superheated blast.
Serhii Beskrestnov, a Ukrainian electronics expert and more widely known as Flash whose black military van is kitted out with electronic jammers to down drones, said the thermobarics were first used over the summer and estimated they now make up between 3 percent and 5 percent of all drones.
They have a fearsome reputation because of the physical effects even on people caught outside the initial blast site: Collapsed lungs, crushed eyeballs, brain damage, according to Arthur van Coller, an expert in international humanitarian law at South Africa’s University of Fort Hare.
For Russia, the benefits are huge.
An unarmed drone costs considerably less than the estimated $50,000 for an armed Shahed drone and a tiny fraction of the cost of even a relatively inexpensive air defense missile. One decoy with a live-feed camera allows the aircraft to geolocate Ukraine’s air defenses and relay the information to Russia in the final moments of its mechanical life. And the swarms have become a demoralizing fact of life for Ukrainians.


Ten babies die in fire at Indian hospital’s neonatal unit

Updated 16 November 2024
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Ten babies die in fire at Indian hospital’s neonatal unit

  • The blaze broke out late on Friday at the Maharani Laxmibai Medical College in Jhansi district

LUCKNOW: Ten newborn babies died from burns and suffocation after a fire swept through a neonatal intensive care unit in northern India, a government official said on Saturday.
The blaze broke out late on Friday at the Maharani Laxmibai Medical College in Jhansi district about 285 km (180 miles) southwest of Lucknow, the capital of Uttar Pradesh state.
Emergency responders rescued 38 newborns from the ward, which housed 49 infants at the time of the incident, said state Deputy Chief Minister Brajesh Pathak.
“Seventeen of the injured are receiving treatment in different wings and some private hospitals,” Pathak told reporters in Jhansi. Seven of the deceased infants have been identified, while the authorities are working to identify the remaining three, he said.
One infant remains missing, said a government official who asked not to be identified as he is not authorized to speak to media.
The cause of the fire remains unknown. Uttar Pradesh Chief Minister Yogi Adityanath ordered an inquiry into the incident.
Indian Prime Minister Narendra Modi expressed condolences over the “heart-wrenching” incident.
“My deepest condolences to those who lost their innocent children in this,” Modi posted on the X platform. “I pray to God to give them the strength to bear this immense loss.”


Xi, Biden to meet as Trump return looms

Updated 16 November 2024
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Xi, Biden to meet as Trump return looms

  • Trump’s comeback has cast a cloud of uncertainty over efforts by Washington and Beijing to ease their tense relationship

Lima: US President Joe Biden and Chinese counterpart Xi Jinping will meet for the last time Saturday, a day after both leaders warned of turbulent times ahead for the world as Donald Trump returns to the White House.
Their final encounter, taking place on the sidelines of an Asia-Pacific summit in Peru, has been overshadowed by the prospect of fresh trade wars and diplomatic upheaval when Trump starts his second term.
Trump’s comeback has cast a cloud of uncertainty over efforts by Washington and Beijing to ease their tense relationship, launched in a historic meeting between Xi and Biden in California a year ago.
The White House said Saturday’s Xi-Biden meeting at the Asia-Pacific Economic Cooperation (APEC) summit would “mark the progress” in the relationship between the United States and an increasingly assertive Beijing.
But it was also aimed at getting through a “delicate period of transition” and ensuring that competition with China “doesn’t veer into conflict,” US National Security Adviser Jake Sullivan said.
Trump’s crushing election win over Kamala Harris has caused shock waves around the globe and dominated the two-day meeting of heads of state of the 21-member APEC group.
The billionaire Republican has in particular signaled a confrontational approach to Beijing, threatening to impose tariffs of up to 60 percent on imports of Chinese goods to even out what he says is a trade imbalance.
He has also named two major China hawks in his top team, including his pick for Secretary of State, Marco Rubio.
Xi and Biden, who are meeting for the third time overall, warned separately at the summit on Friday of choppy waters ahead.
The Chinese president raised concerns about “spreading unilateralism and protectionism” in a written speech to the forum, China’s state news agency Xinhua reported.
For his part, Biden said the world had “reached a moment of significant political change,” as he met the leaders of Japan and South Korea — key US allies in Asia.
Biden said US ties with the two countries were essential for “countering North Korea’s dangerous and destabilizing cooperation with Russia” as Pyongyang sends troops to fight in Ukraine.
And with Biden racing to salvage what he can of his foreign policy legacy from Trump, he said the three-way alliance he had pioneered was “built to last. That’s my hope and expectation.”
A senior administration official insisted that Trump’s name had not come up during the meeting with the South Korean and Japanese leaders.
The return of Trump’s “America First” policies, however, threatens alliances Biden has built on issues ranging from the wars in Ukraine and the Middle East to climate change and trade.
During his first term, Trump repeatedly threatened to cut US defense commitments to Asian and European allies if they did not pay a larger share of the financial burden for their protection.
Economists say Trump’s threat of punitive tariffs would harm not only China’s economy but also that of the United States and its trading partners.
It could also threaten geopolitical stability.
China is building up its military capacity while ramping up pressure on self-governed Taiwan, which it claims as part of its territory.
Sullivan said Xi and Biden were set to discuss Taiwan and tensions in the South China Sea, where Beijing claims large swathes of maritime territory, he said.
They would also focus on keeping communication channels open, particularly military-to-military hotlines restored last year.
The APEC summit will wrap up on Saturday but Trump’s shadow is still set to cloud the international diplomatic agenda at a G20 summit in Rio de Janeiro next week.
Biden will also be heading there as part of a swing through Latin America in what is likely to be his last major foreign tour.
He will stop in the Amazonian rainforest on Sunday to highlight the impact of climate change — another key policy area likely to be affected by Trump, who has promised to “drill, baby, drill” for fossil fuels.