US starts targeting banks that help Russian war in Ukraine

A view of the US Treasury Building in Washington, D.C. (AP/File)
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Updated 23 December 2023
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US starts targeting banks that help Russian war in Ukraine

  • "Anyone supporting Russia’s unlawful war effort is at risk of losing access to the US financial system," warns US National Security Adviser Jake Sullivan
  • Russia has been setting up front companies to hide purchases through third countries, says Deputy Treasury Secretary Wally Adeyemo

WASHINGTON: The United States said Friday it will impose sanctions on foreign banks that support Russia’s war in Ukraine, in a new bid to exert pressure on Moscow as it diversifies from the West to China.

Under an executive order signed by President Joe Biden, the United States will slap so-called secondary sanctions against financial institutions that back companies already targeted for supporting Russia’s defense industry.
“We are sending an unmistakable message: anyone supporting Russia’s unlawful war effort is at risk of losing access to the US financial system,” Jake Sullivan, Biden’s national security adviser, said in a statement.
Sullivan said the new sanctions will “continue tightening the screws on Russia’s war machine and its enablers,” adding that earlier measures have “significantly degraded” Russia’s military, long seen as among the world’s most formidable and which in recent months has relied on imports from sanctioned North Korea and Iran.
But Russia since the start of the war has been rapidly working to reduce exposure to the West, shifting away from trade in dollars, euros, sterling and yen.
China’s largest banks meanwhile have extended billions of dollars worth of credit in renminbi to Russia since the war as Western institutions exit.

"Today we are taking steps to level new and powerful tools against Russia’s war machine. As a result of our restrictions, Russia has increasingly shifted certain trade and financial flows through third countries to evade sanctions and continue its procurement of critical items for their wartime production," said a statement released by Treasury Secretary Janet Yellen.

Deputy Treasury Secretary Wally Adeyemo said that major banks in countries such as China, Turkiye and the United Arab Emirates have largely made efforts to avoid running afoul of US sanctions, and that the new measures would target smaller institutions.
Russia has been setting up front companies to hide purchases through third countries, Adeyemo said in an interview with CNBC.
“They’re not going through big companies in these countries. They’re going through small firms to get things like micro-electronics and machine tools and engine parts,” he said.
“But all of these companies still have to use the financial system.”

Russia’s economy has taken a hit from the pressure but is still on a growth trajectory, with the International Monetary Fund in October forecasting that its economy would expand 1.1 percent in 2024.
A key target has been Russia’s oil exports, with Western powers agreeing to a cap of no more than $60 a barrel.
The US Treasury Department said Thursday that the cap brought down Russia’s tax revenue from oil and petroleum goods exports by 32 percent between January and November, compared to a year ago.
But other assessments have been less rosy on the impact. A recent study by the Kyiv School of Economics found that compliance with the price cap has been virtually non-existent due to widespread fraud.
The new effort at secondary sanctions comes as the G7 group of industrialized democracies balks at seizing Russian government assets to support Ukraine, a potentially major means of pressure backed by the United States.
Direct US assistance to Ukraine could also soon dry up, with Congress yet to approve a request by the Biden administration due to an unrelated dispute on immigration policy.
The White House fears an end to aid would give new momentum to Russia against Ukraine, which has received $43 billion in military assistance from the United States since the invasion.
In parallel actions on Friday, the United States said it will step up sanctions against Russian diamonds and seafood — banning their import if they originated in Russia, even if they were then processed elsewhere.
The action comes days after a European Union ban on Russian diamonds. The United States has already banned imports of Caspian Sea caviar since 2005 for conservation reasons.
The United States has been stepping up the use of secondary sanctions, despite concerns among some policymakers and experts that it will encourage other countries to move away from the dollar.
The United States has used its clout most visibly on Iran by threatening countries that buy oil from the clerical state.


Tokyo voters punish Japan ruling party ahead of national election

Updated 3 sec ago
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Tokyo voters punish Japan ruling party ahead of national election

TOKYO: Voters in Tokyo knocked Japan’s ruling party from its position as the largest group in the city assembly, results showed Monday, a warning sign for Prime Minister Shigeru Ishiba’s unpopular government before July elections.
Japanese media said it was a record-low result in the key local ballot for the Liberal Democratic Party (LDP), which has led the country almost continuously since 1955.
Public support for Ishiba, who took office in October, has been at rock-bottom for months, partly because of high inflation, with rice prices doubling over the past year.
The LDP took 21 Tokyo assembly seats in Sunday’s vote, including three won by candidates previously affiliated with the party but not officially endorsed following a political funding scandal.
This breaks the party’s previous record low of 23 seats from 2017, according to the Asahi Shimbun and other local media.
Ishiba described the results as a “very harsh judgment.”
“We will study what part of our campaign pledge failed to resonate with voters and ensure we learn from this,” he told reporters on Monday.
Tomin First no Kai, founded by Tokyo governor Yuriko Koike, increased its seats in the 127-member assembly to 31, becoming the largest party.
The funding scandal “may have affected” the result, Shinji Inoue, head of the LDP’s Tokyo chapter, said Sunday as exit polls were released.
Policies to address inflation “didn’t reach voters’ ears very well” with opposition parties also pledging to tackle the issue, Inoue said.


Within weeks Ishiba will face elections for parliament’s upper house, with reports saying the national ballot could be held on July 20.
Voters angry with rising prices and political scandals deprived Ishiba’s LDP and its junior coalition partner of a majority in the powerful lower house in October, marking the party’s worst general election result in 15 years.
Polls this month showed a slight uptick in support, however, thanks in part to policies to tackle high rice prices.
Several factors lie behind recent shortages of rice at Japanese shops, including an intensely hot and dry summer two years ago that damaged harvests nationwide, and panic-buying after a “mega-quake” warning last year.
Some traders have been hoarding rice in a bid to boost their profits down the line, experts say.
Not including volatile fresh food, goods and energy in Japan were 3.7 percent higher in May than a year earlier.
To help households combat the cost of living, Ishiba has pledged cash handouts of 20,000 yen ($139) for every citizen ahead of the upper house election.


Masahisa Endo, a politics professor at Waseda University, described the Tokyo assembly result as “severe” for the ruling party.
“Tokyo is not a stronghold for the LDP, but it’s possible that its support is weakening across the nation,” he said.
Even if Ishiba fails to win an upper-house majority, it is hard to see who would want to take his place, while Japan’s opposition parties are too divided to mount a credible challenge to the LDP’s power, Endo told AFP.
The opposition Democratic Party For the People (DPP) won seats for the first time in the Tokyo assembly vote, securing nine.
The DPP’s campaign pledge for the July election includes sales tax cuts to boost household incomes.
Sunday’s voter turnout rate was 47.6 percent, compared to the 42.4 percent four years ago, according to local media.
A record 295 candidates ran — the highest since 1997, including 99 women candidates, also a record high.
The number of women assembly members rose to 45 from 41, results showed.

Mahmoud Khalil vows to continue protesting Israel and the war in Gaza after release from detention

Updated 15 min 53 sec ago
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Mahmoud Khalil vows to continue protesting Israel and the war in Gaza after release from detention

NEWARK: A Palestinian activist who was detained for more than three months pushed his infant son’s stroller with one hand and cheered as he was welcomed home Saturday by supporters including US Rep. Alexandria Ocasio-Cortez.
Mahmoud Khalil greeted friends and spoke briefly to reporters at New Jersey’s Newark International Airport a day after leaving a federal immigration facility in Louisiana. A former Columbia University graduate student and symbol of President Donald Trump ‘s clampdown on campus protests, he vowed to continue protesting Israel and the war in Gaza.
“The US government is funding this genocide, and Columbia University is investing in this genocide,” he said. “This is why I will continue to protest with every one of you. Not only if they threaten me with detention. Even if they would kill me, I would still speak up for Palestine.”
Joining Khalil at the airport, Ocasio-Cortez said his detention violated the First Amendment and was “an affront to every American.”
“He has been accused, baselessly, of horrific allegations simply because the Trump administration and our overall establishment disagrees with his political speech,” she said.
“The Trump administration knows that they are waging a losing legal battle,” Ocasio-Cortez added. “They are violating the law, and they know that they are violating the law.”
Khalil, a 30-year-old legal resident whose wife gave birth during his 104 days of detention, said he also will speak up for the immigrants he left behind in the detention center.
“Whether you are a citizen, an immigrant, anyone in this land, you’re not illegal. That doesn’t make you less of a human,” he said.
Khalil was not accused of breaking any laws during the protests at Columbia. However the administration has said noncitizens who participate in such demonstrations should be expelled from the country for expressing views it considers to be antisemitic and “pro-Hamas,” referring to the Palestinian militant group that attacked Israel on Oct. 7, 2023.
Khalil was released after US District Judge Michael Farbiarz said it would be “highly, highly unusual” for the government to continue detaining a legal resident who was unlikely to flee and had not been accused of any violence. The government filed notice Friday evening that it was appealing Khalil’s release.


More than 50 Colombian soldiers held by residents in restive region: army

Updated 35 min 53 sec ago
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More than 50 Colombian soldiers held by residents in restive region: army

  • In conflict addled regions of Colombia, some illegal groups at times order civilians to carry out actions to impede the advance of security forces
  • Those civilians are usually released hours later after the intervention of human rights organizations

BOGOTA: More than 50 Colombian soldiers were being held captive Sunday by residents of a guerrilla-controlled region in the southwest of the country, the army said.
A first platoon of soldiers was carrying out an operation in El Tambo, a municipality part of an area known as the Micay Canyon — a cocaine-producing enclave — when civilians detained them on Saturday.
On Sunday another group of soldiers was surrounded by at least 200 residents as they headed toward El Plateado, another town in the region.
“As a result of both events, a total of four non-commissioned officers and 53 professional soldiers remain deprived of their liberty,” the army said.
In conflict-ridden regions of Colombia, some illegal groups at times order civilians to carry out actions to impede the advance of security forces. They are usually released hours later after the intervention of human rights organizations.
General Federico Alberto Mejia said in a video that it was a “kidnapping” by guerrillas who had “infiltrated” the community.
The army has maintained that the farmers receive orders from the so-called Central General Staff (EMC), the main FARC dissident group that did not sign the 2016 peace agreement with the then government.
President Gustavo Petro on Sunday urged farmers to “stop believing in armed groups who obey foreigners,” referring to the guerrillas’ alleged ties to Mexican cartels.
“We want to spread peace, but freeing the soldiers, who are their own children, is imperative,” the leftist president wrote on social media platform X.
Petro has been trying for months to ensure that the Armed Forces gain access to the entire Micay Canyon.
In March, 28 police officers and a soldier were held captive by local residents in the same area. All were released two days later.
Colombia is experiencing its worst security crisis in the last decade. Petro attempted to negotiate peace with the EMC, but its main leader, known as “Ivan Mordisco,” abandoned the talks.


‘Highly undesirable’: Dutch host NATO during political crisis

Updated 52 min 53 sec ago
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‘Highly undesirable’: Dutch host NATO during political crisis

THE HAGUE: For a small country like the Netherlands, organizing a NATO summit is a big endeavour at the best of times. The government collapsing three weeks beforehand has not exactly made life easier.
With whole districts and key roads blocked for weeks, and schools and businesses closed, the usually serene seaside city of The Hague has certainly felt the force of the impending summit.
To much grumbling, even some cycle lanes have been shut down, usually unthinkable in the land of bikes.
Dozens of trees have also been uprooted to make way for the temporary buildings housing the thousands of delegates and journalists attending the summit.
For the Netherlands, welcoming 32 world leaders including US President Donald Trump is quite simply the biggest event it has ever hosted in terms of security.
The country is deploying some 27,000 police officers, around half its total force.
And all of this while Dutch politics is still reeling from far-right leader Geert Wilders’s withdrawal from the government in a row over immigration.
The sudden departure of Wilders and his far-right Freedom Party brought down a shaky coalition, with fresh elections now slated for October 29.
“It is highly undesirable to host such an important summit when the government has fallen and new elections are expected,” Claes de Vreese, political communications professor at the University of Amsterdam, told AFP.
It borders on embarrassing, stormed outgoing foreign minister Caspar Veldkamp, describing the withdrawal of Wilders three weeks before the summit as “scandalous.”
Fortunately, noted De Vreese, the Dutch parliament gave its green light to the defense spending increases at the center of the summit.
“This gives weight and legitimacy to the participation” of outgoing Prime Minister Dick Schoof at the summit, said the expert.
But as the government is a lame-duck administration, the next government will have to find the cash.


Speaking of cash, the estimated cost of the NATO summit is 183.4 million euros ($211 million), or just over one million euros per minute, according to Dutch daily AD.
NATO Secretary General Mark Rutte has chopped back the leaders’ meeting to just two-and-a-half hours on Wednesday morning, reportedly to appease Trump, not known to love lengthy summits.
At least Rutte himself will feel at home.
The NATO boss is a born-and-bred “Hagenaar” (citizen of the Hague), still has a house in the city and is often seen at weekends on his bike or shopping at his local supermarket despite his move to Brussels.
And despite the government collapse complicating matters, it is really NATO taking on the bulk of the organization.
“We’re not hosting the summit, that’s the secretary general,” said Schoof.
“But the host country does play an important role. The whole world will be looking at the Netherlands,” Schoof told reporters.
Much of the attention will naturally be on Trump — although there is a question mark over his appearance given the US strikes on Iran.
It falls to Noordwijk, a peaceful coastal resort between Schiphol Airport and The Hague, to host the US president, who will stay in a sumptuous hotel overlooking the North Sea — if he turns up.
His route in has been completely blocked off since Sunday — like several others in the city.
Some frustrated citizens of The Hague have asked why the summit couldn’t be held in Veluwe, a national park with no one around — or even at the airport.
At an anti-NATO protest the weekend before the summit, Alfons Vryland, a 54-year-old teacher, noted the irony of holding a military alliance meeting in the self-styled City of Peace and Justice.
“I’m embarrassed that they’re here talking about war instead of peace in my country, in this city,” Vryland told AFP.
Jan van Zanen, the city’s amiable mayor, sought to reassure everyone, from the crisis-hit PM to the average Hagenaar.
“I know people think that I’m a magician as mayor of The Hague, but I couldn’t prevent the government collapsing,” he told AFP.
“The impact (of the government falling) is there, but where we can, we’ve limited it to the utmost,” he said.
“Yes, the Netherlands is ready.”


Japan Prime Minister Ishiba to skip NATO summit, source says

Updated 23 June 2025
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Japan Prime Minister Ishiba to skip NATO summit, source says

TOKYO: Japanese Prime Minister Shigeru Ishiba is planning to cancel his attendance at the North Atlantic Treaty Organization (NATO) summit in the Hague, a source with direct knowledge said on Monday.
Broadcaster Fuji Television said Ishiba was canceling the trip because a planned meeting between NATO and a group of four Indo-Pacific nations (IP-4) would likely not take place, and because a meeting with US President Donald Trump was also unlikely.
South Korea and Australia, which along with the US and Japan make up the IP-4, have also said their leaders would not attend the NATO summit meeting.
Foreign Minister Takeshi Iwaya will represent Japan, the source said, declining to be identified because the plan is not public.