KYIV: When Bart Gruyaert agreed to help rebuild destroyed apartment blocks outside Kyiv, he hoped to be one cog in Ukraine’s vast reconstruction program, repairing just some of the damage wrought by Russia’s invasion.
But when the French company he works for, Neo-Eco, applied for building permits in the town of Gostomel, the local military administration asked the company to transfer the funds for the multimillion-dollar project to its bank account, under the pretense that it would run the project directly.
Officials told Gruyaert, “it’s better if you transfer the money you received to our account,” he recalled.
“But it doesn’t work like that,” he said.
The company refused, and progress on the initiative, which had secured €20 million in private funding, immediately slowed.
It marked the latest example of the endemic corruption that has plagued Ukraine since it became independent after the fall of the Soviet Union in 1991.
After Neo-Eco’s refusal on the bank transfer, the local administration started dragging things out, adding new requirements to the contract and trying to incentivize the company to “give envelopes” to the right people, Gruyaert alleged.
The company reluctantly decided to abandon the project in September 2023, saying it was “impossible” to work under such conditions.
Following the saga, Ukrainian investigators said they had uncovered a system of “embezzlement” in the Gostomel military administration and accused its head Sergiy Borysiuk of appropriating around 21 million hryvnia ($470,000) meant for the reconstruction of houses and apartments.
In June 2023, after the allegations surfaced, Borysiuk was dismissed by President Volodymyr Zelensky.
He had pre-empted his removal with a press conference several days earlier in which he said he had done “everything possible” to ensure reconstruction efforts.
“It seems to me that you are looking for the enemy in the wrong place,” he said.
The case is far from isolated.
Even though Ukraine has stepped up its anti-graft measures over the past decade to advance its ambition of joining the European Union, corruption scandals are still rife.
Transparency International ranked Ukraine 104 out of 180 countries in its “corruption perceptions index,” up from 144 in 2013.
For some officials, Russia’s invasion has provided new opportunities for personal enrichment.
Several high-profile cases of alleged embezzlement of reconstruction funds, as well as the arrest of officials for selling army exemption certificates, have emerged throughout the war.
While a potential embarrassment for Ukraine, which relies on billions of dollars in Western financial support, Transparency International Ukraine’s director Andriy Borovyk said attention to the cases showed the problem was not being “forgotten.”
And authorities also tout the uncovering of such schemes as a sign of “effective” enforcement.
Just 10 years ago, “who could have thought that senior officials could be accused of crimes?” said Viktor Pavlushchyk, head of the National Agency on Corruption Prevention.
“Now we have some very good examples,” he said.
Around 500 corruption cases have been opened this year and 60 convictions secured, according to the National Anti-Corruption Bureau.
But there are lingering fears the persistent problem will hamper Ukraine’s massive reconstruction agenda, deterring international partners from putting up funds.
The total cost of reconstructing Ukraine stands is estimated at $486 billion, according to a joint study by the World Bank, UN, EU and Ukrainian government.
Gruyaert has not been deterred by his experience in Gostomel, which was occupied by Russian forces in the first weeks of the February 2022 invasion.
Ukraine is “making a lot of progress” on corruption, Gruyaert said, adding that Neo-Eco has had to learn how to “zigzag between the various obstacles.”
The company is still working on several other projects and encourages other foreign investors to get involved.
But, bruised by the Gostomel experience, it now prioritizes working with cities where it has confidence it will not be asked for kickbacks.
Most concede that much remains to be done in Ukraine’s anti-corruption fight, especially when it comes to reconstruction.
It is still common for local officials to have stakes in construction companies through their relatives, several figures said.
Ukraine is trying to weed out such conflicts of interest and make the whole process more transparent.
Last year, the country launched a platform listing all open projects.
Called “DREAM,” the aim is to enable investors, journalists and Ukrainians to track the progress of construction projects, said its head Viktor Nestulia.
A commitment to such openness will be key to reassuring foreign investors, said Mustafa Nayyem, an activist and journalist who headed the reconstruction agency until earlier this year.
“The war is not an excuse not to fight corruption,” he said.
Corruption, “is not in Ukrainian DNA, it’s simply a question of will.”
Corruption overshadows Ukraine’s multi-billion reconstruction progam
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Corruption overshadows Ukraine’s multi-billion reconstruction progam
- Transparency International ranked Ukraine 104 out of 180 countries in its ‘corruption perceptions index,’ up from 144 in 2013
Turkiye’s Erdogan to discuss Ukraine war with NATO chief
ANKARA: Turkish President Tayyip Erdogan will discuss the latest developments in the Russia-Ukraine war with NATO Secretary General Mark Rutte on Monday during his visit to Ankara, a Turkish official said on Sunday.
Russia struck Ukraine with a new hypersonic medium-range ballistic missile on Thursday in response to Kyiv’s use of US and British missiles against Russia, marking an escalation in the war that began when Moscow launched a full-scale invasion of its neighbor in February 2022.
NATO member Turkiye, which has condemned the Russian invasion, says it supports Ukraine’s territorial integrity and it has provided Kyiv with military support.
But Turkiye, a Black Sea neighbor of both Russia and Ukraine, also opposes Western sanctions against Moscow, with which it shares important defense, energy and tourism ties.
On Wednesday, Erdogan opposed a US decision to allow Ukraine to use long-range missiles to attack inside Russia, saying it would further inflame the conflict, according to a readout shared by his office.
Moscow says that by giving the green light for Ukraine to fire Western missiles deep inside Russia, the US and its allies are entering into direct conflict with Russia. On Tuesday, Putin approved policy changes that lowered the threshold for Russia to use nuclear weapons in response to an attack with conventional weapons.
During their talks on Monday, Erdogan and Rutte will also discuss the removal of defense procurement obstacles between NATO allies and the military alliance’s joint fight against terrorism, the Turkish official said.
Blasts heard in Ukraine’s Kyiv, witnesses report
KYIV: Explosions were heard early on Sunday in Kyiv, Reuters’ witnesses and local media in the Ukrainian capital reported.
The blasts sounded like air defense units in operation, Reuters’ witnesses reported. There was no immediate official comment from Ukraine’s military. Kyiv and its surrounding region and most of northeast Ukraine were under air raid alerts, starting at around 0100 GMT.
Meanwhile, Russia’s air defense systems destroyed 34 Ukrainian drones overnight, including 27 over the Kursk region bordering Ukraine, Russia’s defense ministry said in a post on its Telegram messaging app on Sunday.
The ministry, in its post, did not mention an earlier statement by the Kursk governor that air defense units had destroyed two “Ukrainian missiles” overnight over the region.
Developing nations slam ‘paltry’ $300 billion climate deal
- Developing countries say finance pact “optical illusion” and “lack of goodwill” from rich countries amid heated negotiations
- Agreement commits developed nations to pay at least $300 billion a year by 2035 to help developing countries green their economies
BAKU: The world approved a bitterly negotiated climate deal Sunday but poorer nations most at the mercy of worsening disasters dismissed a $300 billion a year pledge from wealthy historic polluters as insultingly low.
After two exhausting weeks of chaotic bargaining and sleepless nights, nearly 200 nations banged through the contentious finance pact in the early hours in a sports stadium in Azerbaijan.
But the applause had barely subsided when India delivered a full-throated rejection of the “abysmally poor” deal, kicking off a firestorm of criticism from across the developing world.
“It’s a paltry sum,” thundered India’s delegate Chandni Raina.
“This document is little more than an optical illusion. This, in our opinion, will not address the enormity of the challenge we all face.”
Sierra Leone’s climate minister Jiwoh Abdulai said it showed a “lack of goodwill” from rich countries to stand by the world’s poorest as they confront rising seas and harsher droughts.
Nigeria’s envoy Nkiruka Maduekwe put it more bluntly: “This is an insult.”
Some countries had accused Azerbaijan, an oil and gas exporter, of lacking the will to meet the moment in a year defined by costly disasters and on track to become the hottest on record.
But at protests throughout COP29, developed nations — major economies like the European Union, United States and Japan — were accused of negotiating in bad faith, making a fair deal impossible.
Developing nations arrived in the Caspian Sea city of Baku hoping to secure a massive financial boost from rich countries many times above their existing pledge of $100 billion a year.
Tina Stege, climate envoy for the Marshall Islands, said she would return home with only “small portion” of what she fought for, but not empty-handed.
“It isn’t nearly enough, but it’s a start,” said Stege, whose atoll nation homeland faces an existential threat from creeping sea levels.
Nations had struggled at COP29 to reconcile long-standing divisions over how much developed nations most accountable for historic climate change should provide to poorer countries least responsible but most impacted by Earth’s rapid warming.
UN climate chief Simon Stiell acknowledged the final deal was imperfect and said “no country got everything they wanted.”
“This is no time for victory laps,” he said.
UN Secretary-General Antonio Guterres said he had “hoped for a more ambitious outcome” and appealed to governments to see it as a starting point.
Developed countries only put the $300 billion figure on the table on Saturday after COP29 went into extra time and diplomats worked through the night to improve an earlier spurned offer.
Bleary-eyed diplomats, huddled anxiously in groups, were still polishing the final phrasing on the plenary floor in the dying hours before the deal passed.
UK Energy Secretary Ed Miliband hailed “a critical eleventh hour deal at the eleventh hour for the climate.”
At points, the talks appeared on the brink of collapse.
Delegates stormed out of meetings, fired shots across the bow, and threatened to walk away from the negotiating table should rich nations not cough up more cash.
In the end — despite repeating that “no deal is better than a bad deal” — developing nations did not stand in the way of an agreement.
US President Joe Biden cast the agreement reached in Baku as a “historic outcome.”
EU climate envoy Wopke Hoekstra said it would be remembered as “the start of a new era for climate finance.”
The agreement commits developed nations to pay at least $300 billion a year by 2035 to help developing countries green their economies, cut emissions and prepare for worse disasters.
It falls short of the $390 billion that economists commissioned by the United Nations had deemed a fair share contribution by developed nations.
“This COP has been a disaster for the developing world,” said Mohamed Adow, the Kenyan director of Power Shift Africa, a think tank.
“It’s a betrayal of both people and planet, by wealthy countries who claim to take climate change seriously.”
The United States and EU pushed to have newly wealthy emerging economies like China — the world’s largest emitter — chip in.
Wealthy nations said it was politically unrealistic to expect more in direct government funding at a time of geopolitical uncertainty and economic belt-tightening.
Donald Trump, a skeptic of both climate change and foreign assistance, was elected just days before COP29 began and his victory cast a pall over the UN talks.
Other countries, particularly in the EU — the largest contributor of climate finance — saw right-wing backlashes against the green agenda, not fertile conditions for raising big sums of public money.
The final deal “encourages” developing countries to make contributions on a voluntary basis, reflecting no change for China, which already provides climate finance on its own terms.
The deal also posits a larger overall target of $1.3 trillion per year to cope with rising temperatures and disasters, but most would come from private sources.
Mounting economic costs of India’s killer smog
- India’s capital New Delhi frequently ranks among the world’s most polluted cities
- One study estimate India’s economic losses due to worsening air pollution at $95 billion yearly
NEW DELHI: Noxious smog smothering the plains of north India is not only choking the lungs of residents and killing millions, but also slowing the country’s economic growth.
India’s capital New Delhi frequently ranks among the world’s most polluted cities. Each winter, vehicle and factory emissions couple with farm fires from surrounding states to blanket the city in a dystopian haze.
Acrid smog this month contains more than 50 times the World Health Organization recommended limit of fine particulate matter — dangerous cancer-causing microparticles known as PM2.5 pollutants, that enter the bloodstream through the lungs.
Experts say India’s worsening air pollution is having a ruinous impact on its economy — with one study estimating losses to the tune of $95 billion annually, or roughly three percent of the country’s GDP.
The true extent of the economic price India is paying could be even greater.
“The externality costs are huge and you can’t assign a value to it,” said Vibhuti Garg, of the Institute for Energy Economics and Financial Analysis.
Bhargav Krishna of the Delhi-based research collective Sustainable Futures Collaborative said “costs add up in every phase.”
“From missing a day at work to developing chronic illness, the health costs associated with that, to premature death and the impact that has on the family of the person,” Krishna told AFP.
Still, several studies have tried to quantify the damage.
One by the global consultancy firm Dalberg concluded that in 2019, air pollution cost Indian businesses $95 billion due to “reduced productivity, work absences and premature death.”
The amount is nearly three percent of India’s budget, and roughly twice its annual public health expenditure.
“India lost 3.8 billion working days in 2019, costing $44 billion to air pollution caused by deaths,” according to the study which calculated that toxic air “contributes to 18 percent of all deaths in India.”
Pollution has also had a debilitating impact on the consumer economy because of direct health-related eventualities, the study said, reducing footfall and causing annual losses of $22 billion.
The numbers are even more staggering for Delhi, the epicenter of the crisis, with the capital province losing as much as six percent of its GDP annually to air pollution.
Restaurateur Sandeep Anand Goyle called the smog a “health and wealth hazard.”
“People who are health conscious avoid stepping out so we suffer,” said Goyle, who heads the Delhi chapter of the National Restaurant Association of India.
Tourism has also been impacted, as the smog season coincides with the period when foreigners traditionally visit northern India — too hot for many during the blisteringly hot summers.
“The smog is giving a bad name to India’s image,” said Rajiv Mehra of the Indian Association of Tour Operators.
Delhi faces an average 275 days of unhealthy air a year, according to monitors.
Piecemeal initiatives by the government — that critics call half-hearted — have failed to adequately address the problem.
Academic research indicates that its detrimental impact on the Indian economy is adding up.
A 2023 World Bank paper said that air pollution’s “micro-level” impacts on the economy translate to “macro-level effects that can be observed in year-to-year changes in GDP.”
The paper estimates that India’s GDP would have been 4.5 percent higher at the end of 2023, had the country managed to curb pollution by half in the previous 25 years.
Another study published in the Lancet health journal on the direct health impacts of air pollution in 2019 estimated an annual GDP deceleration of 1.36 percent due to “lost output from premature deaths and morbidity.”
Desperate emergency curbs — such as shuttering schools to reduce traffic emissions as well as banning construction — come with their own economic costs.
“Stopping work for weeks on end every winter makes our schedules go awry, and we end up overshooting budgets,” said Sanjeev Bansal, the chairman of the Delhi unit of the Builders Association of India.
Pollution’s impact on the Indian economy is likely to get worse if action is not taken.
With India’s median age expected to rise to 32 by 2030, the Dalberg study predicts that “susceptibility to air pollution will increase, as will the impact on mortality.”
Biden praises COP29 deal, vows US action despite Trump
- Biden hailed the goal as “ambitious,” though poorer nations quickly decried it as inadequate
- As agreed, developed nations will pay at least $300 billion a year by 2035 to help developing countries green their economies and prepare for worse disasters
WASHINGTON: US President Joe Biden praised the COP29 deal Saturday as a “significant step” to fighting global warming, and pledged continued action by America despite his incoming successor Donald Trump’s climate skepticism.
“While there is still substantial work ahead of us to achieve our climate goals, today’s outcome puts us one significant step closer,” Biden said in a statement.
After two exhausting weeks of negotiations in Azerbaijan, the pact hammered out commits developed nations to pay at least $300 billion a year by 2035 to help developing countries green their economies and prepare for worse disasters.
Biden hailed the goal as “ambitious,” though poorer nations quickly decried it as inadequate.
The Baku meeting kicked off shortly after Trump won a new term in the White House, potentially setting the stage for him to undo actions by Biden’s administration.
Biden, who leaves office on January 20, said he was “confident” the United States “will continue this work: through our states and cities, our businesses, and our citizens, supported by durable legislation like the Inflation Reduction Act.”
“While some may seek to deny or delay the clean energy revolution that’s underway in America and around the world, nobody can reverse it — nobody.”
