Who Supply Israel Murder Weapons?

Over 9,000 Palestinian women have been killed since the start of the Israeli war on the Gaza Strip. Mothers have been the largest share of Israeli killings, at an average of 37 mothers per day since October 07, 2023.

The numbers above, from the Palestinian Health Ministry in Gaza and the Red Crescent Society respectively, only convey part of the suffering experienced by 2.3 million Palestinians in the Strip.

There is not a single section in Palestinian society that has not paid a heavy price for the war, although women and children are the ones who have suffered most, constituting over 70% of all victims of the ongoing Israeli genocide.

These women and their children are killed at the hands of Israeli soldiers, but they are murdered with US-western supplied weapons.

We are told that the world is finally turning against Israel, and that the west’s nod of approval to Tel Aviv to carry on with its daily massacres may soon turn into a collective snub.

This claim was expressed best in the March 23 cover of the Economist magazine. It showed a tattered Israeli flag, attached to a stick, and planted in an arid, dusty land. It was accompanied by the headline “Israel Alone”.

The image, undoubtedly expressive, was meant to serve as a sign of the times.

Its profundity becomes even more obvious if compared to another cover, from the same publication soon after the Israeli military conquered massive Arab territories in the war of June 1967. “They did it,” the headline, back then, read. In the background, an Israeli military tank was pictured, illustrating the west-funded Israeli triumph.

Between the two headlines much, in the world and in the Middle East, has changed. But to claim that Israel now stands alone is not entirely accurate, at least not yet.

Though many of Israel’s traditional allies in the west openly disown its behavior in Gaza, weapons from various western and non-western countries continue to flow, feeding the war machine as it, in turn, continues to harvest more Palestinian lives.

Does Israel truly stand alone when its airports and seaports are busier than ever receiving massive shipments of weapons coming from all directions?

Almost every time a western country announces that it has suspended arms exports to Israel, a news headline appears shortly afterwards, indicating the opposite. Indeed, this has happened repeatedly.

Last year, Rome had declared that it was blocking all arms sales to Israel, giving false hope that some western countries are finally experiencing some kind of moral awakening.

Alas, on March 14, Reuters quoted the Italian Defense Minister, Guido Crosetto as saying that shipments of weapons to Israel are continuing, based on the flimsy logic that previously signed deals would have to be ‘honored’.

Another country that is also ‘honoring’ its previous commitments is Canada, which announced on May 19, following a parliamentary motion that it had suspended arms exports.

The celebration among those advocating an end to the genocide in Gaza were just getting started when, a day later, Ottawa practically reversed the decision by announcing that it, too, will honor previous commitments.

This illustrates that some western countries, which continue to impart their unsolicited wisdom about human rights, women’s rights and democracy on the rest of the world, have no genuine respect for any of these values.

Canada and Italy are not the largest military supporters of Israel. The US and Germany are. According to the Stockholm International Peace Research Institute, in the decade between 2013 and 2022, Israel has received 68% of its weapons from the US and 28% from Germany.

The Germans remain unperturbed, even though 5% of the total population of Gaza has been killed, wounded or are missing due to the Israeli war.

Yet, the American support for Israel is far greater, although the Biden Administration is still sending messages to its constituency – majority of whom want the war to stop – that the president is doing his best to pressure Israel to end the war.

Though only two approved military sales to Israel have been announced publicly since October 07, the two shipments represent only 2% from the total US arms sent to Israel.

The news was revealed by the Washington Post on March 06. It was published at a time when US media was reporting on a widening rift between US President Joe Biden and Israeli Prime Minister Benjamin Netanyahu.

“That’s an extraordinary number of sales over the course of a pretty short amount of time,” a former senior Biden Administration official told the Post. Jeremy Konyndyk reached the obvious conclusion that the “Israeli campaign would not be sustainable without this level of US support”.

For decades, the US military support to Israel has been the highest anywhere in the world. Starting 2016, this unconditional support exponentially increased during the Obama Administration to reach US$3.8 billion per year.

Immediately after October 07, the weapons shipments to Israel reached unprecedented levels. They included a 2,000-pound bomb known as 5,000 MK-84 munitions. Israel has used this bomb to kill hundreds of innocent Palestinians.

Though Washington frequently alleges to be looking into Israel’s use of its weapons, it turned out, according to the Washington Post, that Biden knew too well that Israel was regularly bombing buildings without solid intelligence that they were legitimate military targets”.

In some ways, Israel ‘stands alone’, but only because its behavior is rejected by most countries and peoples around the world. However, it is hardly alone when its war crimes are being executed with western support and arms.

For the Israeli genocide in Gaza to end, those who continue to sustain the ongoing bloodbath must also be held accountable.

 

Canadian allegations against India put United States in a pinch

The United States is caught in the middle of a diplomatic war between India and Canada, after Canadian Prime Minister Justin Trudeau’s allegations that Indian agents were behind the killing of a Sikh Separatist leader in the country.

The explosive allegation comes amid the Biden administration’s charm offensive toward India as a key bulwark against China, with many questioning the US relationship with India’s controversial Prime Minister, Narendra Modi.

The US reportedly worked closely with Canada in investigating the apparent murder on its soil. President Biden has not publicly commented on the allegations, highlighting the tricky balancing act of standing by Canada without alienating India.

All eyes are now on whether Prime Minister Justin Trudeau will present evidence to support his claims and just how bad relations between Ottawa and New Delhi will get before the US is forced to step in.

Since Trudeau’s public allegations against India on Tuesday, relations between the two countries have hit rock bottom. Canada has received no public support from its allies backing up the claim. 

Vivek Dehejia, professor of economics and an India-Canada policy expert at Carleton University in Ottawa, told The Hill that Canadian officials and Trudeau assumed they would get unconditional support from their allies and from the US in particular. 

“They have been disappointed by the level of support that they have received. If you look carefully at National Security Adviser Jake Sullivan’s recent comments, he’s walking a tightrope because Canada’s very dramatic allegations have put the US and other NATO allies in a bind,” he added.

On Thursday, Sullivan offered a vague statement in support of Canada’s undertaking in this investigation and said the US has also been in touch with Indian government.  

“It is a matter of concern for us. It is something we take seriously. It is something we will keep working on, and we will do that regardless of the country,” he told reporters at the White House on Thursday.

Secretary of State Antony Blinken said the US was coordinating with Canada on the sidelines of the UN General Assembly on Friday, and called for India to cooperate in the ongoing probe.

“We want to see accountability. And it’s important that the investigation run its course and lead to that result,” Blinken told reporters in New York.

The Washington Post reported earlier this week that several senior officials of Canada’s Five Eyes allies, of which the US is a member, were informed of the allegations ahead of the G20 summit in New Delhi. Nevertheless, no public comment was made by any senior leaders among the group’s members, which also include the UK, Australia and New Zealand.

According to Sadanand Dhume, a senior fellow at the Washington, DC-based American Enterprise Institute, the Biden administration has no intention of sacrificing its relationship with India over an ill-judged accusation by Trudeau.

Biden has made closer ties with India a foreign policy priority in its efforts to counter China’s influence in Asia, inviting Modi for an official state visit in June, when he also addressed Congress. 

That was the same month that masked gunmen killed Hardeep Singh Nijjar outside a Sikh temple in Vancouver. The 45-year-old separatist leader had previously been designated as a terrorist by India. 

India has long maintained that Canada has turned a blind eye toward extremist elements against India, especially Khalistani secessionists who demand a separate homeland for Sikh in the Punjab region. 

“The fact is that the Canadians have allowed some pretty dodgy people to use Canadian soil and to spread violent messages,” Dhume said.

“It’s not as though there’s deep sympathy for Canada given that Trudeau has not handled this really well. He’s really been forced into a corner here.”

Trudeau has also come under scathing criticism from some former officials back home. 

Omer Aziz, a former foreign policy advisor for Trudeau’s administration in Canada, wrote in The Globe and Mail that Ottawa’s foreign policy initiatives have never understood South Asia or India, but were instead aimed at winning over the sizable ethnic Sikh vote at home. 

“Under Trudeau, the foreign policy choices have been subordinated to domestic diaspora politics, given the importance of the Sikh diaspora in Canada, which have been important liberal voters. Trudeau, who has a minority in Canadian parliament, is only in power because of the New Democratic Party led by Jagmeet Singh,” Dehejia told The Hill.

Singh is the first Sikh to lead a major federal party in Canada, and helped Trudeau form a minority government last year after the Liberals failed to win a majority in parliament. 

In New Delhi, the Canadian allegations have united a fractious political landscape. 

“The Indian response has been ferocious, and it’s been uniform,” said Dhume, adding that it has dredged up memories of the assassination of former Prime Minister Indira Gandhi in 1984 and Air India bombing the next year, both of which were linked to Sikh separatists. 

Even Modi’s main opposition, the Indian National Congress has backed his government’s stance on Trudeau and Canada in a rare show of unity. 

“The Congress reiterates that the country’s fight against terrorism has to be uncompromising, especially when it threatens India’s sovereignty, unity and integrity,” it said in a statement.

Pressure is now on Trudeau to reveal how Canada obtained the intelligence that led it to so publicly suggest the Indian government was behind the killing. 

The prime minister doubled down on his claims Thursday, again saying Canada had credible reasons to believe that agents of the government of India were involved in the killing of a Canadian on Canadian soil.

Canada may not be in a position to reveal where it got the information, Dhume said, but the Indian view is that if you’re not in a position to corroborate … then don’t make the allegation in public.

Yet ultimately it may depend on the US to settle the growing feud, which has resulted in India halting new visas for Canadians and expelling a Canadian diplomat. 

“Only the US has the ability to solve this as only they have both trust and influence in both Ottawa and New Delhi,” Dhume added. 

 

 

 

 

 

Fallout from Canada-India clash

Canada-India relations are reeling from the announcement that Canadian security agencies had uncovered evidence linking the Indian government to the assassination of an Indian-born Canadian citizen in British Columbia earlier this year. Canada Institute Associate Xavier Delgado outlines what's at stake for both countries and their allies in the Indo-Pacific.

Prime Minister Justin Trudeau announced that Canadian security agencies have obtained credible evidence linking the Indian government to the unsolved murder of Hardeep Singh Nijjar, a Canadian citizen and notable advocate for Sikh separatism. 

Nijjar was shot by two masked assailants outside a Sikh temple in British Columbia earlier this year in an attack that Canada alleges has since been connected to agents of India.

The Indian foreign ministry decried the allegations as absurd and, in the aftermath of the announcement, exchanged tit-for-tat expulsions of senior diplomats from Ottawa and New Delhi.

The dispute has shined a sudden spotlight on the Canada-India relationship, which, prior to the Nijjar incident, had been trending in a positive direction. Geopolitical developments, economic ties, and demographic trends over the past ten years had set the stage for closer cooperation between the two former British colonies. India’s prominence in Canada’s 2022 Indo-Pacific Strategy and high-level negotiations between the two states for an early progress trade agreement (EPTA) gave supporters of the relationship plenty of reasons to be optimistic.

Now, the allegations that the Indian government orchestrated the assassination of a Canadian citizen on Canadian soil have cast a cloud of doubt over the path ahead for the bilateral relationship.

Trade will likely be the first major casualty of the fallout, with negotiations for the EPTA being put on hold. Both countries declared that they would pause trade talks with each other earlier this month and Canadian Trade Minister Mary Ng has indefinitely postponed a trade mission to New Delhi that had been planned for October. The negotiations were a notable part of Canada’s Indo-Pacific Strategy, which listed the EPTA as a critical step towards a larger comprehensive economic partnership agreement (CEPA) that would bolster trade ties between the two countries.

The stalled trade talks have put a US$17 billion bilateral trade relationship under strain. Canadian merchandise trade with India grew from approximately US$3.87 billion in 2012 to US$10.18 billion in 2022, with major increases in the export of Canadian energy products and import of Indian consumer goods. In that same year, services trade between the two countries measured US$6.96 billion. 

A reduction in the flow of Indian immigrants, which constitute almost one in five of all recent immigrants to Canada, could be even more devastating than a deterioration of trade relations.

Canada recently reached the 40-million-population milestone off an influx in inbound migration following the COVID-19 pandemic. In fact, Canada’s population growth, which is the fastest in the G7, is mainly driven by migration ‑ four in five new Canadians from 2016 to 2021 were immigrants. 

Indian immigration to Canada has tripled since 2013, overtaking and pulling away from the Philippines and China as the top source country for new Canadians in the 2021 census.

That census also counted 1.3 million ethnic Indians living in Canada, over 1 million of whom resided in British Columbia or Ontario. 77% of that group – 771,790 people – follow Sikhism, making Canada’s Sikh population the largest in the world outside of India. 

India also tops a notable subcategory of immigration ‑ international students, 34% of international students in Canada from 2015 to 2019 came from India, providing a critical source of revenue for Canadian academic institutions; by 2022, that share had grown to 40%. These numbers directly translate to the labor force, with Indian graduates from Canadian programs accounting for the largest share of post-graduate work permit holders in 2018 over China (20%) and the United States (1%).

Beyond the bounds of Canada-India relations, the dispute between the two countries may throw a wrench in the emerging Indo-Pacific framework of institutions and alliances.

India, with its economic might and security capabilities, has been hailed by the United States and democratic allies as a regional counterweight to China. Washington included India as a founding member of the Indo-Pacific Economic Framework (IPEF) and the freshly-anointed I2U2 bloc with Israel and the United Arab Emirates.

Both countries are also founding members of the Quadrilateral Security Dialogue (QSD or Quad), a strategic security dialogue that includes Japan and Australia.

Canada, for its part, was not invited to join the Quad or IPEF at the conception of either group, nor was it included alongside Five Eyes allies Australia and the United Kingdom in the AUKUS security pact. After inviting Canada to join the Trans-Pacific Partnership during the Obama administration, the United States opted to not join the agreement, leaving both countries without a shared major economic or security institution in the Indo-Pacific. 

A chilling of relations with India could hinder Canada’s ability to join the network of Indo-Pacific institutions, both because regional allies will be wary of angering the Modi government and because India itself could block Canadian membership in certain groups.

Ottawa is clearly aware of India’s influence and power in the region. The Canadian Indo-Pacific strategy, published in late 2022, has an entire section dedicated to India that reads, “India’s strategic importance and leadership – both across the region and globally – will only increase as India – the world’s biggest democracy – becomes the most populous country in the world and continues to grow its economy.”

Canada is not the only party that stands to lose from this dispute. The allegations can damage India’s public image as a democratic nation committed to a rules-based order or, more critically, its perception as a trustworthy ally in the competition against China. Canada’s Five Eyes partners could reevaluate intelligence sharing and law enforcement cooperation with India if Canadian officials uncover definitive proof of India’s involvement in Nijjar’s murder. 

Disputes between allies are common and, in the diverse roster of countries that constitute the emerging Indo-Pacific architecture, should be expected. Governments disagree frequently over trade policies, environmental practices, and other issues that don’t pose a threat to their diplomatic relationships.

The Canada-India dispute is unique in that the severity of the allegations, the economic and demographic ties between the two countries, and the geopolitical context in which the situation unfolded have raised the stakes for all parties, including the United States.

To prevent spillover damage to the nascent Indo-Pacific alliances, Washington will need to approach the situation carefully. Beijing benefits the most from in-fighting between major US allies, but regardless of how the coming weeks play out, both Canada and India will still have poor relations with China and good relations with the United States. One reason for this is the values that all three countries nominally share. US leaders should remember this and remind Ottawa and New Delhi that the path forward must be paved by justice and a commitment to due process to deviate from those values would be to bring relations between all three countries into uncharted and volatile territory.

 

More sanctions imposed on Iran ahead of Mahsa Amini first death anniversary

The United States, Canada, Britain and some other European Union countries on Friday imposed more sanctions on Iran ahead of the first anniversary of the death of Mahsa Amini.

“Countries that have regularly committed the harshest violence against their own citizens, especially against women and minorities, people of color, aboriginals, natives and immigrants and have never had the least courage to strongly protest or condemn the crimes of the child-killing Zionist regime have no right to shed crocodile tears for the Iranian nation,” Foreign Ministry spokesman Nasser Kanaani said in a press release.

In a statement on Friday, US Secretary of State Antony Blinken said, "Mahsa’s tragic and senseless death in the custody of Iran’s so-called 'Morality Police' sparked demonstrations across Iran that were met with unspeakable violence, mass arrests, systemic internet disruptions and censorship by the Iranian regime." 

Kanaani described such moves and meddlesome remarks as “laughable and hypocritical shows”.

“Unfortunately, certain sides that have a dark historical record on human rights issues and women in a coordinated move and despicable efforts have issued worthless political statements to provoke sedition in the Islamic Republic of Iran by beating the drums of repetitive and ineffective sanctions,” Kanaani pointed out.  

The Foreign Ministry official despised the unlawful and undiplomatic moves of these countries and said it is better for the Europeans to acknowledge that the continuation of such unconstructive behaviors will never meet their interests and should adopt a new policy based on respect toward the great and civilized Iranian nation and the national sovereignty of the Islamic Republic of Iran.  

The ministry spokesman concluded his remarks by saying that it is quite clear that the far-sighted Iranian people and the government as well as responsible security bodies will not waver in upholding collective security under the negative propaganda and biased moves of the Western sides. 

In a separate statement, The US Treasury Department also said it imposed sanctions on more than two dozen people and entities it said were connected to what it called violent suppression of protests in the wake of Amini's death.

The action targets 29 people and groups, including 18 key members of the IRGC and Iran's Law Enforcement Forces, as well as the head of Iran's Prisons Organizations, the department said. They also target officials linked to Iran's internet blockade and several media outlets.
Douran Software Technologies CEO Alireza Abedinejad as well as media organizations Press TV, Tasnim and Fars news agencies were also among those sanctioned.

The British government also announced sanctions against several Iranian officials, including the culture minister, his deputy and the mayor of Tehran.

 

 

Canada slaps fresh sanctions on Iran

Canada has slapped new sanctions on Iran, accusing it of destabilizing the region and backing Russia’s conflict in Ukraine, and also targeting the drone and aviation sectors of the nation.

In a statement released on Tuesday, Global Affairs Canada said seven additional individuals had been added to the federal government’s growing list of sanctions aimed against the Iranian nation. It was the 13th round of measures to be presented since October 2022.

“Today’s sanctions list 7 individuals involved in activities that gravely threaten international peace and security or that constitute gross and systemic violations of human rights in Iran,” the GAC statement read.

Ali Akbar Ahmadian, who was appointed Secretary of Iran’s Supreme National Security Council in May, is on the list. He is a former commander of the navy division of the Islamic Revolution Guard Corps (IRGC).

Two representatives of the Iranian company Imen Sanat Zaman Fara, which produces equipment for the nation’s Law Enforcement Command, are also sanctioned.

Four executives of aviation companies that manufacture drones are among the other individuals targeted by new Canadian penalties.

GAC purportedly said, “The sanctions build on Canada’s efforts to press Iran to address the legitimate grievances and interests of its citizens and impose costs for its destabilizing behavior abroad.”

These people are prohibited from entering Canada and any assets they may have in the country will be frozen as a result of the penalties.

The additional sanctions, Canadian Foreign Affairs Minister Melanie Joly claimed, “Send a clear message to Iran that Canada will not tolerate any violations of human rights.”

So far, Ottawa has sanctioned 170 Iranian individuals and 192 Iranian entities, according to its federal government.

Back in July, Nasser Kanaani, the spokesman for the Iranian Foreign Ministry, said that Iran had reacted to the recent European Union sanctions against Tehran over the alleged provision of drones to Russia, underlining that it did not provide Russia with drones for use in the Ukraine war.

Kanaani also noted, “It has been officially announced many times, the allegation that Iran exported drones to Russia in order to use them against Ukraine is a baseless accusation.”

He added, “Any attempt to link the war in Ukraine to the bilateral cooperation between the Islamic Republic of Iran and Russia is an act with purely political goals.”

Referring to the clear and frequent opposition of the Islamic Republic to the war in Ukraine, Kanaani emphasized the need to speed up efforts to stop the war through diplomatic means.

“Unfortunately, the West, with political motivations and resorting to false and unproven claims, is trying to continue using the ineffective and failed policy of imposing sanctions against the Iranian nation,” he added.

Kanani stressed that Iran reserves the right to take countermeasures against the sanctions of the European Union and its members.

Additionally, he asserted that the United States and its European allies have frequently used unilateral sanctions as “an illegal tool” against the Iranian nation.

“Resorting to sanctions is illegal, is a violation of the legal rights of the Iranian nation, and is a violation of human rights,” he said.

Kanaani was referring to the sanctions that have been put in place against Iran over the years by the United States and its European allies - France, Britain, and Germany - particularly after the Trump administration unilaterally withdrew from the 2015 nuclear deal, formally known as the Joint Comprehensive Plan of Action (JCPOA), and launched a “maximum pressure” campaign against Tehran.

“We believe that three European countries failed to honor the JCPOA obligations as much as the United States did and should be held accountable,” he added.

He stated that after breaking the terms of the deal, they continue to level false allegations against Iran and impose unjustified sanctions on the nation.

“Iran reserves the right to show a proportionate, balanced, and serious response,” he noted.

  

Britain to join trans-Pacific trade pact

Britain on Sunday formally signed the treaty to join a major trans-Pacific trade pact, becoming the first country to take part since its inception in 2018 and opening the way for members to consider other applications including from China and Taiwan.

The signing was part of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) commission meeting being held in New Zealand.

Ministers from member countries will meet later on Sunday to discuss a range of topics, including how to move forward with new applications and a review of the agreement itself.

Britain's Business and Trade Secretary, Kemi Badenoch said at the signing that her country was delighted to become the first new member of the CPTPP.

"This is a modern and ambitious agreement and our membership in this exciting, brilliant and forward looking bloc is proof that the UK's doors are open for business," Badenoch said.

The British government still needs to ratify the agreement.

The CPTPP is a landmark trade pact agreed in 2018 between 11 countries including Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

Britain will become the 12th member of the pact that cuts trade barriers, as it looks to deepen ties in the Pacific after its exit from the European Union in 2020.

China, Taiwan, Ukraine, Costa Rica, Uruguay and Ecuador have also applied to join the CPTPP.

New Zealand Prime Minister Chris Hipkins said the road to bringing Britain into the agreement had been long and at times challenging, but having major economies inside the partnership would bring the Atlantic to the Indo-Pacific in a way that strengthened the rules-based trading system in the region.

 

 

World spy chiefs meet in Singapore

According to Reuters, senior officials from about two dozen of the world's major intelligence agencies held a secret meeting on the fringes of the Shangri-La Dialogue security meeting in Singapore this weekend.

Such meetings are organized by the Singapore government and have been discreetly held at a separate venue alongside the security summit for several years. The meetings have not been previously reported.

The US was represented by Director of National Intelligence Avril Haines, the head of her country's intelligence community, while China was among the other countries present, despite the tensions between the two superpowers.

Samant Goel, the head of India's overseas intelligence gathering agency, the Research and Analysis Wing (RAW), also attended.

"The meeting is an important fixture on the international shadow agenda," said one person with knowledge of the discussions. "Given the range of countries involved, it is not a festival of tradecraft, but rather a way of promoting a deeper understanding of intentions and bottom lines.

"There is an unspoken code among intelligence services that they can talk when more formal and open diplomacy is harder - it is a very important factor during times of tension, and the Singapore event helps promote that."

A spokesperson for the Singapore Ministry of Defence said that while attending the Shangri-La Dialogue, participants including senior officials from intelligence agencies also take the opportunity to meet their counterparts.

"The Singapore Ministry of Defence may facilitate some of these bilateral or multilateral meetings," the spokesperson said. "Participants have found such meetings held on the sidelines of the (dialogue) beneficial."

The United States, Britain, Canada, Australia and New Zealand operate what is called the Five Eyes network to gather and share a broad range of intelligence, and their intelligence officials meet frequently.

Larger meetings of the intelligence community are rarer, and almost never publicized.

Although few details were available on the specific discussions in Singapore, Russia's war in Ukraine and transnational crime figured in the talks on Friday. On Thursday evening, the intelligence chiefs held an informal gathering.

No Russian representative was present, one of the sources said. Ukraine's deputy defence minister, Volodymr V. Havrylov, was at the Shangri-La Dialogue but said he did not attend the intelligence meeting.

Another of the sources said the tone at the meeting was collaborative and cooperative, and not confrontational.

At the main security dialogue, more than 600 delegates from 49 countries held three days of plenary sessions, as well as closed-door bilateral and multilateral meetings at the sprawling Shangri-La Hotel.

Australian Prime Minister Anthony Albanese gave the keynote address while US Secretary of Defense Lloyd Austin, Chinese Defence Minister Li Shangfu and counterparts from Britain, Japan, Canada, Indonesia and South Korea also spoke.

Haines was among the official US delegates to the Shangri-La Dialogue. At a discussion on cybersecurity in the main meeting, she said in response to a question from a Chinese military officer that cooperation between countries was essential.

"It is absolutely critical, even when there is distrust, and even when you are facing in effect adversaries, that you still try to work through and cooperate on issues of mutual interest and also try to manage the potential for escalation," she said.

US officials said on Friday that CIA Director William Burns visited China last month for talks with Chinese counterparts as the Biden administration seeks to boost communications with Beijing.

 

US ethanol exports exceeds 132 million gallons in March 2023

The United States exported 132.27 million gallons of ethanol and 898,086 tons of distillers’ grains in March, according to the data released by the USDA Foreign Agricultural Service on May 04, 2023. Exports of both products were up as compared to the previous month.

The 132.27 million gallons of ethanol exported in March was up when compared to both the 104.03 million gallons exported the previous month and the 125.1 million gallons exported in March 2022.

The US exported ethanol to more than three dozen countries in March. Canada was the top destination for US ethanol exports at 56.56 million gallons, followed by India at 22.76 million gallons and the Netherlands at 11.35 million gallons.

The value of US ethanol exports reached US$341.93 million in March, up from US$288.43 million in February, but down slightly from US$342.16 million in March 2022.

Total US ethanol exports for the first three months of 2023 reached 354.12 million gallons at a value of US$956.01 million, as compared to 393.66 million gallons exported during the same period of 2022 at a value of US$1.02 billion.

The 898,086 metric tons of distillers grains exported in March was up from 764,494 tons exported in February, but down from 927,134 tons exported in March 2022.

The US exported distillers grains to more than three dozen countries in March. Mexico was the top destination for US distillers grains export at 209,812 tons, followed by South Korea at 127,685 tons, and Turkey at 103,346 tons.

The value of U.S. distillers grains exports reached US$296.53 million in March, up from US$252.82 million the previous month and US$274.05 million in March of the previous year.

Total distillers grains exports for the first quarter of 2023 reached 2.43 million tons at a value of US$802.18 million, compared to 2.88 million tons exported during the same period of last year at a value of US$804.61 million.

Saudi Navy carries out evacuation operation from Sudan

The Royal Saudi Naval Forces (RSNF) carried out the operation that evacuated citizens, other nationals, diplomats and international officials from Sudan on Saturday, the Foreign Ministry announced. The RSNF conducted the operation with the support of various branches of the armed forces.

The Ministry said, “66 persons from Kuwait, Qatar, UAE, Egypt, Tunisia, Pakistan, India, Bulgaria, Bulgaria, Philippines, Canada, and Burkina Faso were among the evacuated.” The number of evacuated Saudi citizens was 91 persons.

All the Saudi citizens and nationals of other countries have arrived safely in Jeddah. This has come in the implementation of the directives of the Kingdom’s leadership, the Ministry said.

The batches arrived in Jeddah at King Faisal Naval Base and were received by Deputy Minister of Foreign Affairs Eng. Waleed Al-Khereiji.

Al-Khereiji said that the journey of the evacuation was long, starting from Khartoum, passing through a number of regions in Sudan until reaching Port Sudan, and with the cooperation of government agencies in the Kingdom. He affirmed that an important role of the operation was done by Ministry of Defense that implemented this plan.

“We all celebrate the return of our sons and the sons of brotherly and friendly countries to the land of Saudi Arabia, which coincided with the celebration of Eid Al-Fitr.”

Saudi Arabia has worked to provide all the main needs for the foreign nationals, in preparation for facilitating their departure to their countries.

Meanwhile, Foreign Minister Prince Faisal Bin Farhan received a phone call from his Kuwaiti counterpart Sheikh Salem Abdullah Al-Jaber Al-Sabah.

Sheikh Salem voiced sincere congratulations on successful evacuations by Saudi ships of citizens from 11 countries from Sudan to Jeddah.

Sheikh Salem expressed Kuwait's appreciation and gratitude to the Saudi foreign minister for the Kingdom's efforts to ensure the evacuation of Kuwaiti citizens from Sudan.

The Ministry of Foreign Affairs had announced earlier on Saturday the start of arranging the evacuation of Saudi citizens and a number of nationals from other countries from Sudan to Jeddah by sea on 5 Saudi ships. The second Saudi ship was carrying Saudia airline crew who was targeted in Khartoum airport.

It is noteworthy that after a week of fighting between two factions of the country’s military leadership, at least 400 people have been killed in Sudan.

FBI makes arrests over alleged secret Chinese police stations in New York

According to Saudi Gazette, US prosecutors have arrested two men in New York for allegedly operating a Chinese secret police station in Manhattan’s Chinatown neighborhood.

Liu Jianwang, 61, and Chen Jinping, 59, both New York City residents, face charges of conspiring to act as agents for China and obstruction of justice.

China has previously denied operating the stations, calling them “service centers” for nationals overseas.

Jianwang and Jinping worked together to establish the first overseas police station in the United States on behalf of China’s Ministry of Public Security, the US Department of Justice alleged on Monday.

The outpost was closed in the fall of 2022, the department said, after those involved became aware of an FBI investigation into the station.

“This prosecution reveals the Chinese government’s flagrant violation of our nation’s sovereignty by establishing a secret police station in the middle of New York City,” said Breon Pearce, the top prosecutor in Brooklyn.

The stations are believed to be among at least 100 operating across the globe in 53 countries, including the UK and the Netherlands. And last month, Canada’s federal government announced an investigation into two Montreal-area sites thought to be police outposts.

“The PRC’s actions go far beyond the bounds of acceptable nation-state conduct. We will resolutely defend the freedoms of all those living in our country from the threat of authoritarian repression,” said Assistant Attorney General Matthew Olsen, from the Justice Department’s National Security Division.

According to prosecutors, Jianwang was closely connected to Chinese law enforcement, and was enlisted to help China with repressive activities in the US beginning in 2015, including harassing Chinese dissidents.

In 2018, he allegedly participated in efforts to push a purported PRC fugitive to return to China, including repeated harassment and threats to the individual and his family, living in China and the US.

And prosecutors said he was also enlisted to locate a pro-democracy activist in China. Jiangwang denied these actions when confronted by US authorities.

If convicted, both Jianwang and Jinping face up to 25 years in prison.

Chinese embassies in the US and Canada have said the locations are overseas service stations’ opened during the pandemic to assist nationals abroad with driver’s licensee renewal and similar matters.

But human rights groups have accused China of using the outposts to threaten and monitor Chinese nationals abroad.

FBI director Christopher Wray said last November that his agency was monitoring reports of such stations, calling them a real problem.

“To me, it is outrageous to think that the Chinese police would attempt to set up shop, you know, in New York, let’s say, without proper coordination,” Wray said.

“It violates sovereignty and circumvents standard judicial and law enforcement cooperation processes.”

UBS takes over Credit Suisse

Moves by authorities to avert a global banking crisis appeared to have lifted market confidence on Monday as investors welcomed emergency dollar liquidity from top central banks and a historic Swiss-backed acquisition of troubled Credit Suisse by UBS Group.

In a package orchestrated by Swiss regulators on Sunday, UBS Group AG will pay 3 billion Swiss francs (US$3.23 billion) for 167-year-old Credit Suisse Group AG and assume up to US$5.4 billion in losses.

Major central banks, faced with the risk of a fast-moving loss of confidence in the financial system, also scrambled on Sunday to bolster the flow of cash around the world with a series of coordinated currency swaps to ensure banks have the dollars needed to operate.

The Swiss banking marriage is backed by a massive government guarantee, helping prevent what would have been one of the largest banking collapses since the fall of Lehman Brothers in 2008.

Financial markets staged a modest relief rally in Asia on Monday but are wary about a range of risks including contagion, the fragile state of US regional banks, and moral hazard.

"Policy makers will be hoping that the weekend's UBS buyout of troubled Credit Suisse will draw a line under recent market stresses," said Brian Martin, ANZ head of G3 economics in London.

Central banks were already facing the conundrum of how much is enough? in the face of resilient labour markets, given the lags with which their policy decisions affect economies. They now have a new conundrum, 'how much is too much?' for financial stability?

Pressure on UBS helped seal Sunday's deal.

"It's a historic day in Switzerland, and a day frankly, we hoped, would not come," UBS Chairman Colm Kelleher told analysts on a conference call. "I would like to make it clear that while we did not initiate discussions, we believe that this transaction is financially attractive for UBS shareholders," Kelleher said.

UBS CEO Ralph Hamers said there were still many details to be worked through.

"I know that there must be still questions that we have not been able to answer," he said. "And I understand that and I even want to apologize for it."

In a global response not seen since the height of the pandemic, the Fed said it had joined central banks in Canada, England, Japan, the EU and Switzerland in a coordinated action to enhance market liquidity. The European Central Bank vowed to support euro zone banks with loans if needed; adding the Swiss rescue of Credit Suisse was instrumental in restoring calm.

Problems remain in the US banking sector, where bank stocks remained under pressure despite a move by several large banks to deposit US$30 billion into First Republic Bank, an institution rocked by the failures of Silicon Valley and Signature Bank.

On Sunday, First Republic saw its credit ratings downgraded deeper into junk status by S&P Global, which said the deposit infusion may not solve its liquidity problems.

US bank deposits have stabilized, with outflows slowing or stopping and in some cases reversing, a US official said on Sunday, adding the problems of Credit Suisse are unrelated to recent deposit runs on US banks and that US banks have limited exposure to Credit Suisse.

The US Federal Deposit Insurance Corp (FDIC) is planning to relaunch the sale process for Silicon Valley Bank, with the regulator seeking a potential breakup of the lender, according to people familiar with the matter.

There are also concerns about what happens next at Credit Suisse and what that means for investors and employees.

UBS chairman Kelleher told a media conference that it will wind down Credit Suisse's investment bank, which has thousands of employees worldwide. UBS said it expected annual cost savings of some US$7 billion by 2027.

The Swiss central bank said Sunday's deal includes 100 billion Swiss francs (US$108 billion) in liquidity assistance for UBS and Credit Suisse.

Credit Suisse shares had lost a quarter of their value last week. The bank was forced to tap $54 billion in central bank funding as it tries to recover from scandals that have undermined confidence.

Under the deal with UBS, some Credit Suisse bondholders are major losers. The Swiss regulator decided that Credit Suisse bonds with a notional value of US$17 billion will be valued at zero, angering some of the holders of the debt who thought they would be better protected than shareholders in the takeover deal announced on Sunday.

(US$1 = 0.9280 Swiss francs)

 

 

World powers oppose Israeli settlement authorization

Foreign ministers of four European countries and Canada joined Washington on Tuesday in opposing a decision by Israeli Prime Minister Benjamin Netanyahu's government to authorize nine Jewish settler outposts in the occupied West Bank.

The foreign ministers of Britain, France, Germany, Italy and the United States issued a joint statement voicing concern over the plans announced by Israel on Sunday.

"We strongly oppose unilateral actions which will only serve to exacerbate tensions between Israelis and Palestinians and undermine efforts to achieve a negotiated two-state solution," they said.

Later, Canadian Foreign Minister Melanie Joly said Ottawa also strongly opposed the expansion of settlements and added that such unilateral actions jeopardize efforts to achieve comprehensive, just and lasting peace.

On Sunday, Israel granted retroactive authorization to nine settler outposts in the West Bank and announced mass construction of new homes in established settlements, prompting US Secretary of State Antony Blinken to say he was deeply troubled.

Israel's foreign ministry had no immediate comment but Security Minister Itamar Ben-Gvir, from the hardliner religious nationalist bloc in Netanyahu's government, said he wanted to go further.

"This is our mission. This is our doctrine," Ben-Gvir said. "Nine settlements are nice but it's still not enough. We want much more," he said in a video message.

Most world powers view as illegal the settlements Israel has built on land it captured in a 1967 war with Arab powers.

Israel disputes that and cites biblical, historical and political links to the West Bank, as well as security interests.

Since the 1967 war, it has established 132 settlements on land Palestinians see as the core of a future state, according to the Peace Now watchdog group.

Besides the authorized settlements, groups of settlers have built scores of outposts without government permission. Some have been razed by police, others authorized retroactively. The nine granted approval on Sunday is the first for this Netanyahu government.

Hussein al-Sheikh, a senior Palestinian official, welcomed the joint statement but added, "We demand that words be turned to deeds."

With tensions in the West Bank already high, the move has alarmed world powers which fear an even greater escalation of violence. Israeli forces have conducted near daily raids in the West Bank, pursuing a crackdown begun last year in the wake of a spate of deadly Palestinian attacks.

This year more than 40 Palestinians, including both militant fighters and civilians, have been killed by Israeli forces. At the same time, 10 people have been killed in Israel in two attacks by Palestinians.

 

Weak demand persists for US natural gasoline

The natural gasoline market in the US Gulf coast could face headwinds in 2023 as faltering gasoline blending demand undercuts stable export demand, while record production provides ample supply.

One of the primary demand drivers for US natural gasoline is its use as a diluent for bitumen produced in the oil sands in Alberta, Canada. Diluents like natural gasoline are mixed into bitumen so it can more easily be transported on pipelines and railcars.

US natural gasoline exports to Canada totaled 204,000 barrels per day (bpd) in September, up by 4.6% from a year earlier, according to the latest available US Energy Information Administration (EIA) data.

During the first nine months of year 2022, exports averaged 176,555 bpd, down by 13% from the same time last year and down by 3.6% from the five-year average.

Bitumen production remained robust and reached 3.3 million bpd in September, up by 9.3% from last year, according to the Canada Energy Regulator (CER).

Bitumen production in the first nine months of this year totaled 3.12 million bpd, up by 2.3% from the same period last year.

Over the past decade, bitumen production has increased every year apart from the crude demand shock in 2020 that was caused by the onset of the Covid-19 pandemic.

Historical trends suggest bitumen production will continue to increase in 2023 and beyond, providing a stable, if not favorable, outlook for the US natural gasoline export market.

The other primary demand driver for natural gasoline is as a blending component for motor gasoline.

US refinery and blender net inputs of natural gasoline into gasoline blending pools averaged 212,000 bpd in September, up by 18% from a year earlier, according to the EIA.

US blending demand averaged 205,333 bpd through the first nine months the year, up by 41% from the same time last year.

Part of the increase in blending demand can be attributed to favorable margins for gasoline blenders. As a low-octane fuel, natural gasoline is one of many possible fuels that blenders can use in their blending pool. Lower natural gasoline prices relative to motor gasoline prices generally can incentivize blenders to incorporate more natural gasoline in their blending pools.

The premium of Nymex RBOB gasoline futures to natural gasoline prompt-month prices at Mont Belvieu, Texas, for example, averaged 154.17¢/USG from May 02 to August 30 this year, according to Argus data.

Refiners and blenders used on average 216,750 bpd in their blending pools during that time. During the same period last year, the differential averaged 66.89¢/USG and the amount of natural gasoline used in the blending pool averaged 139,000 bpd.

The premium started to narrow again in late-November 2022, a worrying sign for gasoline blending demand. The RBOB-natural gasoline spread narrowed from 105.31¢/USG on November 23 to 73.11¢/USG on December 09, 2022. Should this trend continue into 2023, it could provide downward pressure on natural gasoline prices.

In addition, record natural gasoline production will likely continue to pad inventories and provide ample supply. Natural gasoline production rose to a record 738,000 bpd in September, up by 12% from a year earlier.

Production this year through September was also a record at 662,777 bpd, up by nearly 11% from the same period last year.

Record production has helped to build inventories, which stood at 27.2 million barrels in September, up by 21%YoY.

Persistently elevated production heading into 2023 will likely provide additional downward pressure on prices as caverns will have ample supply to meet buying interest.

 

Keystone pipeline history of oil spills

According to a Reuters report, Canadian TC Energy Corp has shut its Keystone pipeline in the United States after more than 14,000 barrels of crude oil spilled into a creek in Kansas, making it one of the largest crude spills in the United States in nearly a decade. It is unclear how long the closure will last.

The 622,000 barrel-per-day pipeline is a critical artery shipping heavy Canadian crude from Alberta to refiners in the US Midwest and the Gulf Coast.

There have been several spills on the line since it began operating in 2010. The following is a timeline of some of Keystone's biggest oil spills, based on data from the US Pipeline and Hazardous Materials Safety Administration.

2011

May: TC shut the pipeline for six days after a spill of about 500 barrels of oil due to a failed fitting at a North Dakota pumping station. (https://reut.rs/3iKr5JC)

2016

April: TC shut down the pipeline after about 400 barrels of oil leaked in Hutchinson County, South Dakota. (https://reut.rs/3W2FjUx)

2017

November: TC shut part of the Keystone pipeline system after a leak in South Dakota, caused by mechanical damage from original construction. Originally pegged at 5,000 barrels, a TC spokesperson later put the estimate at about 9,700 barrels. (https://reut.rs/3P9J6Nu)

2019

February: Portions of the Keystone pipeline were shut down after 42 barrels of oil leaked on land in rural St. Charles County, Missouri. (https://reut.rs/3HkTBLZ)

October: An estimated 9,120 barrels of oil spilled in North Dakota. The spill was one of the biggest onshore crude spills in the last decade and the largest for Keystone, according to PHMSA. (https://reut.rs/3Hq4zjH)

 

 

Canada invokes pipeline treaty with United States

Canada has invoked a 1977 pipeline treaty with the United States for the second time in less than a year. This is to prevent a shutdown of Enbridge-Line 5 pipeline in Wisconsin, said Canadian Foreign Minister Melanie Joly on Monday.

The Bad River Band, a Native American tribe in northern Wisconsin, wants the 1953 pipeline shut down and removed from its reservation because of the risk of a leak and expired easements, which are land use agreements between Enbridge and the tribe.

In May, Enbridge filed a motion in a US district court saying federal law prohibits attempts to stop the pipeline's operations. The motion sought to dismiss some of Bad River Band's claims.

The company said in a statement on Monday that it remains open to resolving this matter amicably and was pursuing permits to re-route Line 5 around the Bad River Reservation.

Joly said Canada has raised serious concerns that a possible shut down of the Line 5 pipeline will cause a widespread and significant economic and energy disruption.

"This would impact energy prices, such as propane for heating homes and the price of gas at the pump. At a time when global inflation is making it hard on families to make ends meet, these are unacceptable outcomes," Joly said in a statement.

The pipeline is a critical part of Enbridge's Mainline network, which delivers the bulk of Canadian oil exports to the United States. Line 5 carries 540,000 barrels per day from Superior, Wisconsin, to Sarnia, Ontario.

Joly said Canada was worried about the domino effects the shutdown would have on jobs.

"The shutdown could have a major impact on a number of communities on both sides of the border that depend on the wellbeing of businesses along the supply chain," she said.

The 1977 pipeline treaty governs the free flow of oil between Canada and the United States, and last year Canada invoked it for the first time ever to start negotiations with the United States to resolve a dispute with Michigan State, which wants to shut down Line 5 on environmental grounds.

This month, a US judge sided with Enbridge in ruling that a federal court should hear a suit by the State of Michigan seeking to force shutdown of the pipeline underneath the Straits of Mackinac in the Great Lakes. 

 

US exports over 100 million gallons of ethanol

The United States exported 101.48 million gallons of ethanol and 1.01 million metric tons of distillers’ grains in June, according to data released by the USDA Foreign Agricultural Service on August 04. Exports of both products were up as compared to June 2021.

Ethanol is an organic chemical compound. It is a simple alcohol with the chemical formula C₂H₆O. Its formula can be also written as CH ₃−CH ₂−OH or C ₂H ₅OH, and is often abbreviated as EtOH. Ethanol is a volatile, flammable, colorless liquid with a characteristic wine-like odor and pungent taste.

Ethanol is naturally produced by the fermentation of sugars by yeasts or via petrochemical processes such as ethylene hydration. It has medical applications as an antiseptic and disinfectant. It is used as a chemical solvent and in the synthesis of organic compounds, and as a fuel source. Ethanol also can be dehydrated to make ethylene, an important chemical feedstock.

The 101.48 million gallons of ethanol exported in June was down when compared to the 147.06 million gallons exported in May, which was a four-year high, but up from the 82.09 million gallons exported during the same month of last year.

The US exported ethanol to more than 30 countries in June. Canada was the top destination for US ethanol at 41.2 million gallons, followed by South Korea at 13.64 million gallons and the UK at 12.02 million gallons.

The value of US ethanol exports was at US$324.77 million in May, down from US$410.39 million a month ago, but up from US$187 million in June 2021.

Total US ethanol exports for the first half of 2022 reached 827.39 million gallons at a value of US$2.25 billion, compared to 662.62 million gallons exported during the same period of 2021 at a value of US$1.27 billion.

The 1.01 million metric tons of distillers’ grains exported in June was up from both 966,108 metric tons in May and 938,280 metric tons in June 2021.

The US exported distillers’ grains to approximately three dozen countries in June. Vietnam was the top destination at 197,192 metric tons, followed by Mexico at 158,501 metric tons and Turkey at 109,819 metric tons.

The value of US distillers’ grains exports was at US$311.08 million in June, down slightly from US$311.85 million the previous month but up from US$248.47 million in June of last year.

Total US distillers’ grains exports for the first six months of the year reached 5.67 million metric tons at a value of US$1.67 billion, compared to 5.4 million metric tons exported during the same period of last year at a value of US$1.42 billion.

Joe Biden to ask G7 nations to ban import of Russian gold

US President, Joe Biden said Sunday that the Group of Seven (G7) nations will ban Russian gold imports to further impose financial costs on Moscow for its invasion of Ukraine.  

“The United States has imposed unprecedented costs on Putin to deny him the revenue he needs to fund his war against Ukraine,” Biden tweeted on Sunday. “Together, the G7 will announce that we will ban the import of Russian gold, a major export that rakes in tens of billions of dollars for Russia.” 

Biden’s announcement came on the first day of a G7 meeting in Germany; a formal announcement is expected later on during the summit.  

While it does not bring in as much money as energy, gold is a major source of revenue for the Russian economy. Restricting exports to G7 economies will cause more financial strain to Russia as it wages the war in Ukraine.  

The G7 includes the United States, France, Canada, Germany, Japan, the United Kingdom and Italy.  

The US and its allies have been searching for more ways to punish Russia for the bloody war that recently entered its fifth month. Biden has announced waves of penalties coordinated with allies that range from sanctions on Russian officials and oligarchs to export controls to sanctions on major Russian banks.  

Still, Europeans are limited in what they can do because of their dependence on Russian energy imports. European countries have vowed to phase out Russian oil but have not taken steps like the US to do so immediately.  

Biden administration officials teased new announcements to squeeze Russia ahead of Biden’s trip to Europe and it is possible there will be more announcements beyond the plan to ban Russian gold imports.  

Biden embarked on the trip to Europe for the G7 meeting and, later, a North Atlantic Treaty Organization (NATO) summit with the goal of demonstrating unity with allies on keeping up pressure on Russia even as the war roils the global economy. 

Biden spent Sunday morning meeting with German Chancellor Olaf Scholz and later participated in a working lunch with other leaders.  

A White House readout of Biden’s meeting with Scholz indicated Ukraine was a main topic of conversation.  

“The leaders underlined their commitment to Ukraine’s sovereignty and territorial integrity, as well as their continued provision of military, economic, humanitarian, and diplomatic support to help Ukraine defend its democracy against Russian aggression,” the White House readout said. “The leaders also discussed efforts to alleviate the impacts of Russia’s war in Ukraine on global food and energy security.” 

Biden also thanked Scholz for committing to boosting Germany’s defense spending above NATO’s 2% of gross domestic product target.  

A White House official characterized the meeting as “very warm and friendly” and said there was “very broad alignment on all of the issues that they discussed and all the common challenges that our countries are working on together.”

 

United States and allies getting ready to kick certain Russian banks out of SWIFT

The White House on Saturday announced that the United States and allies will kick certain Russian banks out of a major international banking system, a significant step in a bid to cripple the Russian economy in response to its invasion of Ukraine. 

The Biden administration and European allies agreed to cut Russia out of access to the Society for Worldwide Interbank Financial Telecommunication (SWIFT), a rapid shift from just days ago when it appeared such a move was unlikely in the near future.

The US and European nations also committed to imposing measures to prevent the Russian Central Bank from using its reserves to undermine sanctions and boost the ruble.

The announcement came via a joint statement from the leaders of the United States, the European Commission, France, Germany, Italy, the United Kingdom and Canada. The leaders called Russian attacks on Ukraine "an assault on fundamental international rules and norms that have prevailed since the Second World War, which we are committed to defending."

"We stand with the Ukrainian people in this dark hour. Even beyond the measures we are announcing today, we are prepared to take further measures to hold Russia to account for its attack on Ukraine," they said in the statement.

Banks across the world use SWIFT to finalize transactions and transfers. Cutting Russia off from SWIFT would make it incredibly difficult for its banks to operate efficiently but could also wreak economic havoc for European nations that depend on Russian oil and natural gas exports. 

If a Russian bank that has been removed from SWIFT wants to make a transaction with a bank located outside of Russia, it will need to use the telephone or a fax machine, a senior administration official told reporters.

Biden on Thursday had indicated kicking Russia out of SWIFT was not part of the initial rounds of sanctions because not all European allies were on board with the measure. But as fighting intensified in Ukraine in recent days and Russia moved close to the capital of Kyiv, pressure grew for Western nations to offer a tougher response.

Additional measures announced on Saturday included limitations on the use of so-called golden passports that allow wealthy Russians with connections to the Kremlin to become citizens of other countries and access their financial systems.

The US and its allies also said they would announce a task force to ensure the effective implementation of the coordinated sanctions being imposed on Russia.

The Biden administration and European allies have unveiled multiple rounds of sanctions in response to the Russian invasion of Ukraine, which began late Wednesday night. The US has sanctioned multiple Russian financial institutions to freeze their US assets as well as a list of several Russian oligarchs.

The White House on Friday announced additional sanctions against Russian President Vladimir Putin and a dozen of his top advisers, freezing any of their assets in the United States.

Imposing sanctions on Russia's central bank could crush the country's economy and financial sector; depending on how severely Western allies restrict its assets.

With limited access to its foreign reserves, Russia could face serious challenges keeping targeted banks afloat and mitigating the economic impact of sanctions. A total freeze on foreign reserves would likely devastate the Russian economy, cause a domestic financial crisis and leave the ruble worthless.

The United States has targeted the central banks of only North Korea, Iran and Venezuela with sanctions — nations with limited leverage over the global economy. Taking action against the Russian central bank could pose its own economic risks for the US and allies. The Biden administration and western allies have been wary of any sanctions that could limit access to Russian petroleum or natural gas exports.

"Our calculus is we have two choices," the senior administration official told reporters on Saturday. "Either we continue to ratchet costs higher to make this a strategic failure for President Putin, or the alternative, which is unacceptable, and that would be allowing unchecked aggression in the core of Europe."

 

Trucker blockades at US-Canada border crossings

Blockades at major United States-Canada border crossings caused by truckers protesting COVID-19 vaccine mandates could worsen the existing car shortage that has driven up prices to record levels.

The skyrocketing cost of cars and trucks — which has played a major role in fueling the 40-year high inflation rate in United States was just beginning to level off before truckers blocked the Ambassador Bridge and with it the most efficient way to transport auto parts between Canada and the US 

Without access to key components, auto manufacturers were forced to shut down some of their plants and some factories remain closed or are operating at reduced capacity.

Toyota delayed production at its plants in West Virginia, Alabama and Kentucky, affecting its output of its best-selling RAV4 vehicle, the company said Friday, adding the disruptions could continue through the weekend. 

Ford said that two of its Ontario-based factories are running at reduced capacity and an Ohio plant had to shut down. General Motors said it resumed production at its Michigan factory on Friday after canceling two shifts on Thursday. 

The situation could get worse if the blockade doesn’t end soon, according to the American Automotive Policy Council, Equipment Manufacturers Association and Original Equipment Suppliers Association. 

“The US automakers and suppliers are doing everything possible to maximize production with what they have, working to keep lines running and shifts scheduled to minimize the impact on American autoworkers, but the situation has already led to reduced production and may spread the longer the disruptions persist,” the groups said in a statement.

Production cuts and delays are bad news for the already meager US inventory of cars and trucks of roughly one million vehicles, down from more than 3 million in a normal year, according to J.D. Power.

Insufficient supply caused the price of used cars and trucks to increase by a stunning 40.5% in the year ending in January 2022, while the price of new vehicles grew by 12.2%, according to a Labor Department report released Thursday.

Those are some of the biggest price jumps of any product or service included in the report, which found that overall consumer prices increased by 7.5% annually, the fastest rate since February 1982.

The blockade could upend the trend. The Ambassador Bridge carries 25% of Canada’s trade with the US, with more than 8,000 trucks crossing the bridge on a typical day.

Workers in the Michigan auto industry alone may have lost up to US$51 million in wages this week due to production slowdowns, a number that would climb dramatically if the blockade continues, according to an analysis from the Anderson Economic Group.

“We are at an economic crisis at this moment because of this illegal blockade,” Michigan Governor. Gretchen Whitmer told CNN.

Experts say that the impact of the protests isn’t comparable to the semiconductor shortage, which forced automakers to cut production dramatically because they couldn’t get their hands on computer chips. This time around, manufacturers are working out other ways to get their hands on auto parts, such as air transport.

A Canadian judge on Friday ordered the protestors to end the blockade, though it remained unclear just how and when their trucks would be removed.

The protestors, dubbed the “Freedom Convoy,” have been blocking the bridge for five days in addition to disrupting another key US-Canada border crossing near Alberta. On Friday, they agreed to open one lane of traffic on the Ambassador Bridge for vehicles entering Canada but continued to block vehicles going into the US.

Ontario Premier Doug Ford declared a state of emergency on Friday afternoon that will allow the Canadian province to fine protesters blocking the bridge up to US$100,000 and sentence them to up to a year in jail.  

Canadian business groups have warned that if the government doesn't crack down on the protests, US companies could view the nation as an unreliable trading partner.

The US Chamber of Commerce, National Association of Manufacturers and Business Roundtable, three of the largest business lobbying groups in the US, called on the Canadian government to intervene on Thursday night to prevent “production cuts, shift reductions, and temporary plant closures” 

“The North American economy relies on our ability to work closely together, including our manufacturing sectors,” the groups said in a statement. “We need to apply the same spirit of cooperation to tackle this problem.”

US President Joe Biden this week urged Canadian Prime Minister Justin Trudeau to end the crisis and offered American support, though Trudeau has insisted on working with local leaders rather than have the Canadian government step in.

Canada implemented a COVID-19 vaccine mandate for foreigners entering the country on January 15, this year, while the US enacted its own border mandate on January 22.

The rule drew criticism from some US business groups, which said that it would further exacerbate supply chain disruptions stemming from a shortage of truck drivers and chassis.

Anne Reinke, President and CEO of the Transportation Intermediaries Association, said that the cross-border mandate has made it far more difficult to find truckers willing to haul goods between the United States and Canada, driving up transportation prices. 

“By itself, the vaccine mandate would be bearable, but now along with all the other headwinds, it’s becoming a real huge challenge,” she said. “Ultimately, there’s a ripple effect on the consumer.”