What is on top of agenda at BRICS upcoming meeting in South Africa?

BRICS leaders are scheduled to meet in South Africa next week to discuss how to turn a loose club of nations accounting for a quarter of the global economy into a geopolitical force that can challenge the West's dominance in world affairs.

Russian President Vladimir Putin, who faces an international arrest warrant over alleged war crimes in Ukraine, will not join leaders from Brazil, India, China and South Africa amid rifts over whether to expand the bloc to include dozens of ‘Global South’ nations queuing up to join.

South Africa will host Chinese President Xi Jinping, Brazil's Luiz Inacio Lula da Silva and Indian Prime Minister Narendra Modi for the BRICS summit from August 22 to 24.

Spread over the globe and with economies that operate in vastly different ways, the main thing uniting the BRICS is skepticism about a world order they see as serving the interests of the United States and its rich-country allies who promote international norms they enforce but don't always respect.

Few details have emerged about what they plan to discuss, but expansion is expected to be high on the agenda, as some 40 nations have shown interest in joining, either formally or informally, according to South Africa. They include Saudi Arabia, Argentina and Egypt.

China, seeking to expand its geopolitical influence as its tussles with the United States, wants to enlarge BRICS quickly, while Brazil is resisting expansion, fearing the already unwieldy club could see its stature diluted by it.

In a written response to questions by Reuters, China's foreign ministry said, “It supports progress in expanding membership, and welcomes more like-minded partners to join the 'BRICS family' at an early date."

Russia needs friends to counter its diplomatic isolation over Ukraine, and so is keen to bring in new members, as is its most important African ally, South Africa.

In a nod to the bloc's African hosts, the theme of its 15th summit is "BRICS and Africa", emphasizing how the bloc can build ties with a continent increasingly becoming a theatre for competition between world powers.

South Africa's foreign minister Naledi Pandor in a statement last week said BRICS nations wanted to show global leadership in addressing the needs ... of the majority of the world, namely ... development and inclusion of the Global South in multilateral systems, in a veiled swipe at Western dominance.

BRICS nations are keen to project themselves as alternative development partners to the West. China's foreign ministry said BRICS sought to reform global governance systems (to) increase the representation ... of developing countries and emerging markets.

The bloc's New Development Bank (NDB) wants to de-dollarize finance and offer an alternative to the much-criticized Breton Woods institutions.

But it has approved only US$33 billion of loans in nearly a decade -- about a third of the amount the World Bank committed to disbursing just last year -- and has recently been hobbled by sanctions on member Russia.

South African officials say talk of a BRICS currency, mooted by Brazil earlier this year as an alternative to dollar-dependence, is off the table.

With 40% of global population, the BRICS carbon-intensive nations also make up about the same share of greenhouse gas emissions. Officials in Brazil, China and South Africa said climate change may come up but indicated it wouldn't be a priority.

BRICS countries blame rich nations for causing most global warming and want them to take on more of the burden of decarburizing the world's energy supply. China was accused of blocking climate discussions at the G20, which it denied.

 

Hydropolitics: A new term coined in Asia

Most of Asia's major rivers originate in China and flow into countries like India, Bangladesh and Vietnam. China has earned the title of "upstream superpower," but concerns over the weaponization of water, the responses of nations downstream, and climate change are stirring up water politics and stoking tensions.

The visually rich three-part Nikkei Asia series titled Asia's Age of Hydropolitics explores the effects that the actions of upstream nations -- exacerbated by climate change -- have on countries downstream.

The first story focuses on Asia's rivers that originate in the Indo-Tibetan plateau in China. They flow into 18 other nations, delivering water to a quarter of the world's population.

As China gets ambitious about managing its own water shortages by drawing on these rivers -- and allows its foreign policy to dictate its actions upstream -- many nations downstream are feeling its presence.

The second story frames Bangladesh -- and the geopolitically significant Brahmaputra River -- as a proxy of Sino-Indian conflict. The story follows the Brahmaputra as it enters India through the disputed border with China, and explores the effects of dams and upstream politics on the region's most disenfranchised.

As the Brahmaputra makes its way into Bangladesh, the lowest riparian country in the region finds itself at the center of China-India hydropolitical hostility.

The third and final piece in the series focuses on the Mekong -- one of the world's longest and most biodiverse rivers. Dams being built upstream, 22 by China alone, combined with climate change and human activity, have contributed to the sinking of the Mekong Delta. Half of the river-strewn region could be underwater before the century is through.

But locals are adapting -- and emerging innovative strategies offer hope of mitigating the worst.

Courtesy: Nikkei Asia

 

 

 

India: When state fails people take law in their hands

Furious women set fire to the houses of two Indian men accused of parading two women naked in a state where months of ethnic clashes have left at least 120 dead.

A clip went viral Wednesday showing two women reported to be from the Kuki tribal group walking naked along a street while being jeered at and harassed by a mob reportedly from the Meitei community.

Violence erupted in the northeastern state of Manipur between the mainly Christian Kuki and the predominantly Hindu Meitei in May over job quotas and land rights, and intermittent clashes have continued since.

The emergence of footage of the women’s humiliation — which happened in May — triggered outrage across the country, with Prime Minister Narendra Modi saying it had “shamed India”.

Police arrested four suspects Thursday, and the same day a group of women activists put stacks of hay into the house of one of the men in Imphal and set it on fire.

As the fire raged, the women — from the Meitei community, like the accused — broke down the walls and roof of the house with sticks.

Another mob of women destroyed the house of a second accused, reducing it to ash and bars.

India is generally traditionalist, conservative and patriarchal, but the Meitei have a history of women’s activism, with women having a more prominent role in society than elsewhere.

The video of the naked women sparked protests across India on Friday, with demonstrators calling for the state’s chief minister to step down over the delay in taking action.

“Can normal people do these things?… Even cats, dogs, animal(s) never committed these kind of filthy act,” said one demonstrator near Imphal, where hundreds of women gathered to protest.

“This is not even how human beings treat other human,” she said.

India’s Supreme Court warned Modi’s government Thursday that if it does not act, “we will”.

Authorities in Manipur, led by the ruling Hindu-nationalist Bharatiya Janata Party (BJP), said police had taken action as soon as the video surfaced on social media.

A “thorough investigation” was under way, the state’s chief minister N Biren Singh tweeted Thursday.

“We will ensure strict action is taken against all the perpetrators, including considering the possibility of capital punishment,” he added.

The Manipur violence came after the Kuki community protested Meitei demands for reserved public job quotas and college admissions as a form of affirmative action, stoking long-held fears that they might also be allowed to acquire land in areas currently reserved for tribal groups.

Homes and churches were torched, with tens of thousands of people fleeing to government-run camps.

In a detailed report to the Supreme Court in June, civil society group Manipur Tribal Forum said many gruesome acts of violence, including rape and beheading, had not been investigated by state authorities.

Footage of one such incident was shared on Twitter Thursday, reportedly showing an aide to a BJP lawmaker in the state holding a victim’s severed head, before it disappeared from the platform within hours.

 

UAE and India agree to use local currencies for bilateral trade

President of United Arab Emirates (UAE), Sheikh Mohamed Bin Zayed Al Nahyan received Indian Prime Minister Narendra Modi, who is on an official visit to the Emirates.

To boost bilateral trade and investments, Modi announced that India and the United Arab Emirates have agreed to start trade settlement in local currencies.

The Local Currency Settlement System will permit payment from exporters and importers in their respective local currencies, Indian Rupee (INR) or UAE Dirham (AED). This move will also further enable the development of an INR-AED foreign exchange market.

Modi said that he hopes that bilateral trade between the two countries goes past the US$100 billion-mark soon, as it currently stands at US$85 billion.

Upon arrival at Qasr Al Watan in Abu Dhabi, the Indian prime minister’s motorcade was met by a group of Emirati children waving the flags of both countries.

Sheikh Mohamed greeted Modi and those who accompanied him during an official reception ceremony that included a guard of honor welcome, a 21-gun salute, and a performance of the national anthems of India and the UAE.

 “The India-UAE comprehensive strategic partnership has been steadily strengthening and the Prime Minister’s visit will be an opportunity to identify ways to take this forward in various domains such as energy, education, healthcare, food security FinTech, defense and culture,” the Ministry of External Affairs (MEA) said.

It will also be an opportunity to discuss cooperation on global issues, particularly in the context of the UAE’s Presidency of COP-28 and India’s G-20 Presidency in which the UAE is a special invitee, it added.

The UAE and India have agreed to implement the use of local currencies for bilateral and cross border transactions, the announcement was made on the sidelines of Modi’s visit to Abu Dhabi on Saturday.

Minister of State for Foreign Trade Dr. Thani Bin Ahmed Al Zeyoudi, said, a year after their Comprehensive Economic Partnership Agreement (CEPA) took effect, the UAE and India have further strengthened their strategic relations.

In his statement to the Emirates News Agency (WAM), he stressed that the Emirati-Indian strategic partnership has seen positive developments at all levels, including the CEPA, which makes it a global model for how to upscale collaboration and partnership ties to higher levels that achieve mutual growth, create opportunities for business communities, stimulate entrepreneurship, and support sustainable development.

He noted that this would not be achieved without the shared keenness and unlimited support of the leaderships of the two countries.

He added that the UAE and India had entered a new phase of shared prosperity due to the CEPA that took effect a year ago, which has boosted key sectors in both countries, most notably non-oil trade and mutual investment.

In the first year of the partnership, their non-oil trade reached US$50.5 billion, growing by 5.8%YoY, and compared to the previous year, from May 2020 to April 2021, non-oil trade grew by 53.5%, he added.

It increased by 36.1% as compared to the same period in 2019-2020, and by 29.6% compared to the same period in 2018-2019, Al Zeyoudi further said.

He stressed that the UAE-India partnership agreement boosted non-oil exports from the UAE, which reached US$10.3 billion in the year of its implementation, a rise of 18.6% compared to the same period during 2020-21.

Al Zeyoudi noted the UAE’s ongoing investment in India, which was driven by the impressive growth of one of the world’s fastest-growing economies.

As per the latest official data released this year, the UAE invested US$36.61 billion in various sectors, including financial services, real estate, business services, alternative and renewable energy, engine manufacturing, equipment, and more.

The UAE has chosen India as the first country to sign a comprehensive economic partnership agreement with, in light of their strong strategic ties.

India is a key ally and partner for the UAE in trade and investment, and they have a long history of friendship. This is also India’s first agreement of this kind with a country in the Middle East and North Africa region.

United States plans naval logistics hub in India

The United States seeks to transform India into a center for resupplying and maintenance of naval vessels in the South Asia region, where it has been stretched thin with such capabilities.

US President Joe Biden and Indian Prime Minister Narendra Modi agreed to comprehensive defense and economic partnerships when Modi visited the White House in late June for a summit with Biden.

“The US-India Major Defense Partnership has emerged as a pillar of global peace and security,” the joint statement from the summit reads.

The US will provide India with support to develop infrastructure that will be used to resupply, repair and maintain ships and aircraft.

“We’ll have much more to follow in the near future, but the aim here is to make India a logistics hub for the United States and other partners in the Indo-Pacific region,” said Air Force Brig. Gen. Pat Ryder, the Pentagon press secretary, to reporters in late June.

As part of this effort, the US Navy will sign ship repair agreements with Indian shipyards.

The navy has concluded a Master Ship Repair Agreement with the Larsen & Toubro shipyard near the Indian city of Chennai, according to the White House. The navy is close to finalizing separate deals with two other shipbuilders, based in Mumbai and Goa.

The US military looks to build readiness for quickly handling resupply activities and repairs in the Indo-Pacific region. If the navy has access to more hubs in the region, then vessels and aircraft will waste less time pausing operations for both. The time savings can be allocated to joint exercises with other countries.

“There’s a big gap between the bases the United States sustains in the bilateral hub agreements they have in the Middle East and then the Western Pacific,” said Jeffrey Payne, assistant professor at the Near East South Asia Center for Strategic Studies. “So, India fulfills this.”

At present, Japan and Singapore serve as key naval hubs for the US in Asia.

Harry Harris, former commander of US Indo-Pacific Command, hailed the initiative.

“Currently, we operate from Diego Garcia and Western Australia in the Indian Ocean,” he told Nikkei via email. “Securing a maintenance, repair, and logistics hub on the Subcontinent is significant as this would give us much-needed flexibility in the vast Indian Ocean region.”

The Chinese navy has about 355 ships and submarines, making it the world’s largest numerically, according to the 2021 edition of the Pentagon’s annual report on China. If American vessels cannot spend more time at sea, then the US will risk falling behind China in terms of naval capabilities, weakening deterrence.

Because the Indo-Pacific is defined by large stretches of water, many believe that conducting supply activities in the region during emergencies will prove more difficult than similar activities in Europe, with its land routes.

“Are we ready today? Yes, we are,” Rear Adm. Mark Melson, commander of the US Navy’s logistics group stationed in Singapore, told Nikkei in an interview in early June. “But I will never claim to be ready enough.”

“We are certainly trying to improve the amount of access into a number of places where we can conduct expeditionary resupply, expeditionary refuel [and] if required, expeditionary rearm,” Melson said.

The Biden administration plans to deepen the partnership with India beyond the Indian Ocean in the maritime space. Daniel Kritenbrink, assistant secretary of state for East Asian and Pacific affairs, attended an event hosted by a US think tank at the end of June and touched on strengthening the collaboration with India in the South China Sea.

Indian External Affairs Minister Subrahmanyam Jaishankar met with Philippine Foreign Secretary Enrique Manalo in New Delhi at the end of June. The two ministers released a joint statement that backed a 2016 arbitration ruling at The Hague rejecting Chinese claims to nearly all of the South China Sea.

This marked the first time that India expressed support for the Hague ruling, which is based on the United Nations Convention on the Law of the Sea, according to Gregory Poling, a senior fellow at the Center for Strategic and International Studies in Washington. It put India in line with Japan and major Western countries on the issue.

India, as a representative of the so-called Global South emerging and developing countries, is gaining a stronger role and voice in the international community.

On the security front, India appears to have shifted focus on relations to the West. Modi’s visit to Washington in June is evidence of this. India on Tuesday hosted the Shanghai Cooperation Organization summit, which was held in a virtual format out of consideration for the US

But the basic theme of India’s diplomacy remains “strategic autonomy,” which entails working with other countries according to its own interests.

In recent years, the US apparently threatened to impose sanctions on India when it sought to acquire air defense systems from Russia. In 1971, the US sent an aircraft carrier to threaten India during the third Indo-Pakistani War. Whether today’s partnership between the US and India will completely dispel the latent distrust of Washington remains to be seen.

 

Understanding India’s Bangladesh policy

Historically, Sheikh Mujeeb and his daughter Sheikh Hasina have enjoyed the support of the successive Indian governments. In the forthcoming general elections it is difficult to infer if India still supports Hasina.  

Indian External Affairs Minister Dr Subramaniam Jaisankhar’s recent address in New Delhi to celebrate the ninth anniversary of the Bharatiya Janata Party has created conflicting reactions in the Awami League and the Bangladesh Nationalist Party.

Dr Jaisankhar iterated in his address in New Delhi what prime minister Narendra Modi signed in the joint declaration namely India’s commitment not to interfere in Bangladesh’s forthcoming general elections.

These developments could also be the game-changer for holding Bangladesh’s next general elections freely and fairly and dealing with the existential threat that a flawed national election would pose for the country.

The statement has disappointed the Awami League, making many of its followers apprehensive. Bangladesh’s foreign minister Dr AKA Momen openly sought New Delhi’s help for a fourth consecutive term for the Awami League on an official visit to New Delhi in 2022. His plea was widely reported in the Indian and Bangladesh media.

Bangladesh’s opposition parties led by the BNP have been in the political wilderness since the Awami League came to power in January 2009. They have been oppressed, incarcerated and subjected to enforced disappearances and other forms of oppression.

The US-west-UN and international rights organizations have accused the Awami League in recent times of the violations that are protected by UN charters with Bangladesh on the cusp of its next general elections.

India had stood steadfastly behind the Awami League till Dr Jaisankhar’s recent statements. It provided seminal support to the Awami League to become and remain the dominant power in Bangladesh. While New Delhi remained silent, the US-led west became vocal against the Awami League up until the Indian prime minister’s Washington visit.

Two instances underline India’s prime role in placing the Awami League in its present position of dominance.

India’s former president Pranab Mukherjee’s soft corner for the Awami League and Sheikh Hasina were open secrets in Bangladesh, thanks to his prolific writings. He wrote that he had assured General Moeen U Ahmed not to worry about his safety and future after his military rule had ended when the latter met him in February 2008 in New Delhi.

Many now believe that the former Indian president won the general over on the side of the Awami League. The Awami League won the December 2008 elections by a landslide. Its victory was expected but not the margin. General Moeen U Ahmed supervised the general elections.

The other instance of India’s interference in Bangladesh’s domestic politics was the infamous visit of the Indian foreign secretary Sujata Singh to Dhaka before Bangladesh’s 2014 general election. She arm-twisted President HM Ershad, many say blackmailed, to participate in the 2014 elections. India’s interference allowed the Awami League to hold the 2014 elections that the BNP-led opposition boycotted.

India’s interference helped the Awami League to also abort the BNP-Jamaat’s movement for the restoration of the caretaker government system that it had forced the BNP to adopt in the constitution as the 13h amendment in 1991–96 with Jamaat and Jatiya Party as allies.

Sheikh Hasina claimed while leading the 1991–96 movement that the caretaker government system was the panacea for changing government peacefully in an emerging democracy. She wanted the caretaker government system to be in the constitution ‘forever.’

India’s interference also legitimized the 15th amendment under which the Awami League held the 2014 elections. The BNP’s effort to establish the amendment as the Awami League’s constitutional mechanism for its BAKSAL vision failed because India led the Awami League’s claim that the BNP and Jamaat were supporters of Islamic terrorism and Islamic fundamentalism that the US-led West accepted wholeheartedly. The result of the 2014 elections was a shame not just to Bangladesh but also to all those who supported it. There was no election to 154 of the 300 seats.

Bangladesh’s present crisis is similar but more dangerous than that it faced leading to the 2014 elections with important changes down the road. One perceptible change has been in India’s role in the 2018 elections. New Delhi stayed away from it despite repeated appeals by the Awami League for help. The Awami League even claimed in making its desperate appeals to New Delhi, leading to the 2018 elections that many hundreds and thousands of its supporters would be killed if it lost power.

The Awami League still won in 2018 elections. It had, meanwhile politicized the civil bureaucracy, the law enforcement agencies and the Election Commissioner in its favour in such a manner that they ensured ballot boxes managed votes to be stuffed in its favour the midnight before the election.

The 2018 elections earned the ‘midnight elections’ nickname. The BNP flagged the futility of participating in a general election under the 15th amendment but was forced to take part in it because it would have, otherwise, lost its registration for abstaining from two consecutive general elections. It was no wonder, therefore, that the Awami League won 293 of the 300 seats in the 2018 elections.

Dramatic changes have occurred in the international order since Bangladesh’s 2018 election. Islamic terrorism and Islamic fundamentalism that had made the US-west-UN allow the Awami League to do anything to remain in power leading to the 2014 and the 2018 elections are now out of the radar.

These powers have now come together for democracy, human rights and a free and fair general election in Bangladesh at a time when it is clear that the country cannot withstand another election similar to the 2014 and 2018 elections. It is now also clear that there cannot be any election in Bangladesh under the 15th Amendment without pushing the country towards an existential crisis.

India which was an ally of the US-West in Bangladesh’s controversial 2014 and 2018 elections, nevertheless, had remained silent about the dramatic changes. It kept Bangladesh across its political divide, waiting, aware that its role would be very crucial.

Most Bangladeshis were not inclined to believe that the US-west-UN would not be able to force a peaceful change of government in Bangladesh without India. A great many believed that New Delhi and Washington would, in the end, back a fourth term for the Awami League.

India’s Prime Minister Narendra Modi’s recent visit to Washington answered Bangladesh’s waiting, almost. Narendra Modi did not speak for the Awami League as its supporters expected. He agreed instead through paragraph 36 of the 58-paragraph joint declaration of the summit to support ‘freedom, democracy, human rights, inclusion, pluralism, and equal opportunities for all citizens.’

Thus, by interpretation, he dittoed the recent initiatives of the United States in Bangladesh for democracy and human rights, particularly for holding Bangladesh’s next general election in a manner where every voter would be able to vote freely, fairly and without fear.

 

Iran, Russia and India to promote freight transit through INSTC

The founding member states of the International North-South Transport Corridor (INSTC), namely Iran, Russia, and India, gathered for the third time in Tehran on Tuesday, to discuss solutions for promoting freight transit through the newly developed international corridor.

The event, dubbed “Iran Rah” was attended by senior officials from the three countries including Iranian Transport and Urban Development Minister Mehrdad Bazrpash, Head of Iran's Ports and Maritime Organization (PMO) Ali-Akbar Safaei, Deputy National Security Advisor of India Vikram Misri, and Senior Aide to the president of the Russian Federation Igor Yevgenyevich Levitin.

Speaking at the meeting, Bazrpash underlined some of the Islamic Republic’s major principles regarding the promotion of INSTC including multilateralism, partnership, transit neighborhood, networking, facilitation of trade, and intelligent and technological development of transit, and called for maximum collaboration for the development of exchanges through the INSTC.

Further in the meeting, PMO Head Ali-Akbar Safaei mentioned some of the advantages of transit through Iran for the countries in the regions and said, “Iran's joining the Shanghai Cooperation Organization and the Eurasian Economic Union will provide unique opportunities to the country’s trade partners, and the Islamic Republic is determined to remove all its tariff and non-tariff barriers in the shortest possible time.”

The main rationale for these trilateral meetings is to promote freight transit between India and Russia and other Persian Gulf and the Caspian Sea countries, Safaei said.

Elsewhere in the gathering, Misri emphasized India’s determination to cooperate with Iran and Russia for completing the INSTC saying, “India has been a participant in various initiatives and projects regarding the north-south corridor and has always been committed to providing its resources in the best way to the implementers so that this corridor is developed in the best way possible.”

Lavitin for his part called the INSTC a humanitarian corridor and asked the countries of the region to join this corridor to achieve its goals.

He underlined the definition of a single policy for trade through this corridor as the most important requirement for the development of trade in this initiative and added, “The main issue discussed in this meeting is defining the same framework and reaching a common understanding for all the business operators that are willing to use this route.”

Established in 2000 by Iran, Russia, and India, this 7,200-km-long INSTC works as a multi-modal network of ship, rail, and road routes for moving freight between India, Iran, Azerbaijan, Russia, Central Asia, and Europe.

Geographically, Iran's territory, particularly the Chabahar port, is very strategic for the activation of the INSTC in linking India to Russia.

The INSTC is also an important transport agenda that is expected to considerably boost the transit and trade of Iran and Russia with the countries of the Caspian Sea and the Persian Gulf.

 

Number of countries willing to join BRICS Currency on the rise

The list of countries ready to join the BRICS alliance and accept the new currency is growing. From a set of 19 countries in April, the numbers have spiked to 41 by the end of June. A total of 22 new countries expressed interest to enter the bloc and ditch the US dollar in two months. 

The next BRICS summit will be held in August in South Africa where the bloc of five nations will collectively decide the formation of a new currency.

BRICS is an acronym for Brazil, Russia, India, China, and South Africa. The decision to expand the alliance will be jointly taken in the next BRICS summit and the bloc could soon become BRICS Plus.

The total number of countries that could challenge the US dollar on the global stage has reached 41. The developing nations that want to accept BRICS currency hail from Asia, Africa, and Eastern Europe.

The countries that have shown interest to join the BRICS alliance ahead of the summit are Afghanistan, Algeria, Argentina, Bahrain, Bangladesh, Belarus, Egypt, Indonesia, Iran, Kazakhstan, Mexico, Nicaragua, Nigeria, Pakistan, Saudi Arabia, Senegal, Sudan, Syria, the United Arab Emirates, Thailand, Tunisia, Turkey, Uruguay, Venezuela, and Zimbabwe.

Belarus is the first country in Eastern Europe that expressed interest to accept the new BRICS currency. On the other hand, France has also shown its interest to attend the next BRICS summit in South Africa.

Additionally, many countries in Africa remain on the sidelines and could announce their support for the BRICS currency after its launch.

It is worth noting why Africa is interested in BRICS and not the US dollar for global trade. 

Kenya has urged African nations to stop using the US dollar and trade in native currencies within the continent.

 

Pakistan: Ship breaking faces bleak outlook

According to Seatrade Maritime News, Pakistan’s Gadani Beach could become a ghost town as the ten-kilometre strip, home to more than 130 ship breaking plots, fails to adapt to the Hong Kong Convention rules.

Following the accession of Bangladesh and Liberia to the IMO’s Hong Kong Convention (HKC), the global standard will now enter force on 26 June 2025. It’s been a long time coming, having been originally adopted by the IMO in 2009, but it now has major implications for owners seeking to dispose of end-of-life ships.

Apart from rogue outsiders who still operate vessels in some regions where the global safety framework carries little weight, owners and operators will come under growing pressure to ensure that end-of-life ships are disposed of as safely and responsibly as possible.

As the third largest ship recycling nation, Pakistan recyclers are likely to find it increasingly hard to attract sellers. Unlike the other two ship dismantling subcontinent nations – India and Bangladesh – the country’s yard owners and managers have made few moves, if any, to upgrade facilities to meet HKC standards.  

“Gadani really has become virtually redundant as a viable subcontinent recycling destination,” declared GMS, the world’s largest cash buyer of end-of-life ships, in its most recent weekly report.

The warning coincides with a deepening economic crisis in Pakistan which has forced the country to seek emergency funds from the International Monetary Fund (IMF). Last week, it was revealed that a tentative agreement had been reached between the state and the IMF for a US$3 billion emergency bail-out. However, this has not yet been formally agreed. 

One result of the country’s financial crisis is that the central bank has been forced to limit or refuse to issue letters of credit to fund end-of-life ship acquisitions. Therefore, significant ship recycling deals have not been possible anyway.

Meanwhile, Eid holidays have resulted in a quiet week spell across the recycling sector as a whole. GMS said that any price ideas that were mooted remain noticeably below the market and not worth considering at this time. “Until we see liquidity issues ease in the industry, we are not likely to make much sense of local markets,” the firm added. 

GMS estimates that Bangladesh breakers continue to offer the sharpest prices, with container ships typically at around US$625 per ldt, tankers at US$605, and bulk carriers at US$575. Theoretical price levels in India and Pakistan are around US$60 to US$80 below these levels. Meanwhile, typical prices prevailing in Turkey last week were US$340, US$330, and US$320 for the three ship types respectively. 

 

 

Modi visit fuels concerns Biden putting human rights on back burner

Indian Prime Minister Narendra Modi’ state visit is fueling concerns from activist groups in the United States that the Biden administration has put human rights on the back burner.

During the visit, President Biden held back from public criticism of Modi’s handling of human rights and democratic values — issues that led a handful of progressive lawmakers to boycott his speech to a joint address to Congress.

The president, instead, rolled out the red carpet for Modi with a celebratory welcome and hug, a 21-gun salute and a state dinner with notable White House guests, a charm offensive underscoring India’s economic and foreign policy importance to the United States.

Biden had previously come under criticism last July for a fist bump with Saudi Crown Prince Mohammed bin Salman during a visit to Jeddah that advocates argue effectively ignored the Saudi government’s human rights abuses.

White House officials contend that tough conversations with allies behind closed doors — including Modi — are more productive than grandstanding and scolding in public. 

“The prime minister and I had a good discussion about democratic values. … We’re straightforward with each other, and — and we respect each other,” Biden said during a press conference alongside Modi at the White House on Thursday. 

But critics say that puts little pressure on governments and leaders like Modi to actually deliver on reforms.

The Indian leader in particular is criticized for failing to counter anti-Muslim hate and is cracking down on civil liberties and press freedoms — issues that strike at the core of respect for democratic governments. 

“I would argue that the administration needs to be more explicit about backsliding allies, practically recommitting themselves to fundamental freedoms and the respect for human rights as the basis for an evolving global order,” said Tess McEnery, who previously served as Biden’s director for democracy and human rights at the National Security Council.

During his campaign, Biden put human rights at the center of his foreign policy messaging and identified strengthening democracy — at home and abroad — as key to pushing back against autocratic governments such as Russia and China.

Yet in pushing back on Russia and China, the US also needs allies. And that has complicated efforts with human rights.

The White House sees India as an indispensable partner in its strategy with China; its population of 1.4 billion people is the only market that can compete with Beijing’s.

India represents a needed partner in the administration’s efforts to diversify supply chains away from China for critical materials such as semiconductors and rare earth minerals that are the building blocks of those technologies.  

Modi recognized the power that India holds during his address to Congress on Thursday.

“When defense and aerospace in India grow, industries in the states of Washington, Arizona, Georgia, Alabama, South Carolina, and Pennsylvania thrive. … When Indians fly more, a single order for aircrafts creates more than a million jobs in 44 states in America,” he said. “When an American phone maker invests in India, it creates an entire ecosystem of jobs and opportunities in both countries.”

The most robust applause from Congress came when Modi said the US was one of India’s most important defense partners — an important statement given American efforts to turn New Delhi away from its reliance on Russia’s defense industry and have it serve a bulwark against China’s growing military.

The US is home to a more than an Indian-American community of more than 4.5 million people — a key voting bloc that the president hopes to hold onto ahead of what is likely to be a fraught 2024 presidential election. 

“I think that President Biden is eager not to cede any of the, kind of, Indian-American community vote to the Republican Party,” said Daniel Markey, senior adviser on South Asia at the United States Institute of Peace (USIP).

Republicans and Democrats in Congress are largely united in supporting a robust US and Indian partnership. A bipartisan and bicameral grouping introduced legislation Thursday to fast-track weapons sales to India in recognition of Modi’s visit.

And while more than 70 House and Senate lawmakers raised concerns over Modi’s human rights record in a letter to Biden ahead of the visit, only a little more than a handful of progressive Democratic lawmakers boycotted the prime minister’s speech. 

“We are told that we must now turn a blind eye to the repression because of foreign policy concerns, even though human rights are supposed to be at the center of our foreign policy,”Ilhan Omar said during a policy briefing she hosted with human rights advocates after Modi’s address, which she boycotted. 

Among the most pressing criticisms against Modi’s rule is the criminal conviction against Indian opposition leader Rahul Gandhi, who was sentenced to two years in prison for negatively using Modi’s surname during a political rally in 2019.

 

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Advocates have also warned about freedom of speech and press freedoms in India in the wake of a tax raid on the offices of the BBC in India in March, and cases of journalists being jailed.

Freedom House, a nongovernmental organization that tracks democratic freedoms globally, rated India as partly free in its Freedom in the World report for 2023. The group claimed Modi’s government and his Hindu nationalist Bharatiya Janata Party has presided over discriminatory policies and a rise in persecution affecting the Muslim population.

“The constitution guarantees civil liberties including freedom of expression and freedom of religion, but harassment of journalists, nongovernmental organizations, and other government critics has increased significantly under Modi,” the group wrote. 

Jim McGovern, co-chairman of the Tom Lantos Human Rights Commission, argued that a balance can be met between calling out human rights concerns while also supporting the US-Indian relationship. 

“It’s because we value our friendship with the Indian people that we also have to speak the truth about human rights abuses in India that are ongoing, well-documented by credible observers and deeply troubling,” he said at the policy briefing hosted by Omar.  

“We don’t raise these issues to discredit India,” he continued. “We raise them because we know from our own experience that if human rights problems are not confronted and resolved, they will fester and deepen and undermine a country’s promise.” 

Markey, of the USIP, said the Biden administration prepared for blowback over the decision to keep criticisms against Modi in private, but added that its excessive references to sharing appreciation for democratic governance did itself no favors.

“I think they went even farther than maybe they needed to do, for Indian consumption,” he said. 

“They leaned into the shared-democracy issue, rather than pulling back from it,” Markey added. “They gave a lot of ammunition to those who would suggest that this is just pure hypocrisy at this point, rather than kind of edging around it.”

McEnery, who is now the executive director of the Project on Middle East Democracy, said the Biden administration needs to elevate defending democracy and human rights to an “interest” more than a value.

That would mean doing trade and economic deals centered on good governance principles, she said, or reforming arms and security relationships based on human rights. 

“I saw this firsthand a lot, where many good, hard-working people inside every arm of the US government, including the National Security Council, tried to make the case for democracy and human rights as a vital national security interest,” she said. “And I would see that shot down time and again by others throughout the government.” 

 

 

 

 

Pakistan hits out at US and India after Biden-Modi meeting

According to Reuters, Pakistan on Friday criticized the United States and India after President Joe Biden met Prime Minister Narendra Modi at the White House and both leaders called on Pakistan to ensure its territory was not used as a base for militant attacks.

Pakistan's foreign ministry said a joint US-Indian statement was unwarranted, one-sided, and misleading. The reference to Islamabad in it was contrary to diplomatic norms, it said.

The ministry added that it was surprised by the joint s

tatement and said it had close counterterrorism cooperation with the United States.

Relations between India and Pakistan have been fraught for years. Since independence from Britain in 1947, India and Pakistan have fought three wars, two of them over the Muslim-majority Himalayan region of Kashmir, which they both claim in full but rule in part.

The joint US-Indian statement said, "They (Biden and Modi) strongly condemned cross-border terrorism, the use of terrorist proxies and called on Pakistan to take immediate action to ensure that no territory under its control is used for launching terrorist attacks."

Pakistan's foreign ministry said India was using the allegations of extremism against Islamabad to deflect from the situation in Kashmir and the treatment of minorities in India.

New Delhi has for years accused Pakistan of launching militant attacks in India, including the one in 2008 in Mumbai that killed over 165 people.

India also says Pakistan has helped Islamist militants who have battled Indian security forces in its part of Kashmir since the late 1980s. Pakistan denies the accusation and says it only provides diplomatic and moral support for Kashmiris seeking self-determination.

The special status given to the Indian state of Jammu and Kashmir was revoked in 2019 when New Delhi split it into two federally controlled territories. Pakistan calls the moves illegal and wants them rolled back.

Biden rolled out the red carpet for Modi on Thursday, with both leaders touting deals their countries reached on defense and commerce aimed at countering China's global influence.

Pakistan also said it was deeply concerned over the planned transfer of advanced military technologies to India, saying such steps would not prove helpful in achieving peace in South Asia.

Biden welcomes Modi with splashy White House ceremony

President Joe Biden rolled out the White House red carpet for Indian Prime Minister Narendra Modi on Thursday as part of his effort to jump start a stronger US-India relationship and counter China's global influence with a series of defense and trade agreements.

Biden treated Modi to a colorful White House South Lawn arrival ceremony before some 7,000 people in the morning, followed by Oval Office talks and a glittering state dinner in the evening. The two leaders held a private, intimate dinner at the White House on Wednesday night.

"The challenges and opportunities facing the world in this century require that India and the United States work and lead together, and we are," Biden said.

Modi said the visit honored the people of his country and the entire Indian diaspora.

"This grand welcome ceremony at the White House today is an honor and pride for the 1.4 billion people of India," he said, speaking partly in English and partly in Hindi. "This is also an honor for more than 4 million people of Indian origin living in the US. For this honor, I express my heartfelt gratitude."

The festival-like opening ceremony featured violinist Vibha Janakiraman and a cappella group Penn Masala performing renditions of songs by the American group Maroon 5 as well as from movies by the Bollywood superstar Shah Rukh Khan.

In a rare gesture, Modi has agreed to take questions from reporters with Biden at the White House on Thursday. Modi has not conducted a news conference since becoming prime minister nine years ago and his visit has drawn attention to concerns over human rights in India.

Washington wants India to be a strategic counterweight to China and sees India as a critical partnership, although some analysts and former officials question India's willingness to stand up collectively to Beijing over issues such as Taiwan. Modi is seeking to raise the influence that India, the world's most populous country at 1.4 billion, has on the world stage in the wake of strained ties with neighboring China.

Senior Biden administration officials said the sweeping agreements to be announced on semiconductors, critical minerals, technology, space cooperation and defense cooperation and sales will ring in a new era in relations between the two countries.

Some of the deals are aimed at diversifying supply chains to reduce dependence on China. The United States has also sought to address China's rising influence in the Indo-Pacific region by bolstering defense ties with countries like India and Australia.

The two leaders will sign off on what one official called a "trailblazing" deal to allow General Electric to produce jet engines in India to power Indian military aircraft. GE said on Thursday it signed a memorandum of understanding with Hindustan Aeronautics to produce the engines.

In addition, US Navy ships in the region will be able to stop in Indian shipyards for repairs under a maritime agreement reached between the two governments.

The leaders will also announce India's plan to procure US-made armed MQ-9B SeaGuardian drones, the US officials said. "We have now entered really a 'next generation' defense partnership," said one US official.

The agreements will include US chipmaker Micron Technology's US$2.7 billion plan for a new semiconductor testing and packaging unit, to be built in Modi's home state of Gujarat. The US will also make it easier for skilled Indian workers to get and renew US visas.

India also agreed to join the US-led Artemis Accords on space exploration and to work with NASA on a joint mission to the International Space Station in 2024.

The flurry of agreements comes as some lawmakers have raised serious concerns about democratic backsliding in India.

Biden is under pressure from his fellow Democrats to discuss human rights with Modi. Three progressive Democrats - US Representatives Alexandria Ocasio-Cortez, Ilhan Omar and Rashida Tlaib - have said they would boycott Modi's address to Congress on Thursday.

"I encourage my colleagues who stand for pluralism, tolerance and freedom of the press to join me in doing the same," Ocasio-Cortez said in a Twitter post on Wednesday.

Biden will bring up concerns about press freedoms, religious freedoms and other issues in a respectful way without "hectoring, lecturing or scolding," one U.S. official who briefed reporters said.

Rights advocates, who plan to protest during Modi’s visit, on Wednesday said Biden should publicly call out the prime minister's rights record. They say the approach of US administrations of raising issues in private with the Indian leader has not stemmed what they described as deteriorating human rights in India.

Meanwhile, Republican US House of Representatives Speaker Kevin McCarthy told reporters he and the chamber's Democratic leader, Hakeem Jeffries, would lead a bipartisan congressional delegation to India in October, Punchbowl News reported on Thursday.

Modi has been to the United States five times since becoming prime minister in 2014, but the trip will be his first with the full diplomatic status of a state visit.

Biden and his wife Jill were set to give Modi gifts including a vintage American camera, a print of George Eastman's patent of the first Kodak camera, a book of American wildlife photography and a signed first edition of Robert Frost poems.

Modi will address US CEOs at a reception on Friday, as American companies plan new investments in India.

On Tuesday, he met with Tesla chief Elon Musk in New York. Musk said afterwards he plans to make the vehicles available in India as soon as possible.

Musk said Modi was pushing the car maker to make a "significant investment" in the country, adding that such an announcement was expected soon.

 

 

Iran emerges second largest sponge iron producer in the world

According to an IRNA report, the World Steel Association (WSA), in its latest annual report, has ranked Iran second among the world’s top sponge iron-producing countries for the year 2022.

Islamic Republic managed to produce 32.9 million tons of sponge iron in 2022 to stand at second place after India with 42.3 million tons of production.

According to WSA, Iran also kept its place as the world’s 10th largest steel producer last year, with 30.6 million tons of crude steel output.

Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO) was also reported to be the world’s 20th largest company based on the WSA ranking.

The total global production of crude steel in 2022 was 1.301 million tons while the consumption of this product in the world was 1.301 billion tons.

Earlier, WSA in its monthly report for April 2023 ranked Iran eighth among the world’s top steel-producing countries for the mentioned month, indicating a one-place rise compared to the previous month.

The April report showed that Iran’s crude steel output increased 5.9% in the mentioned month while the global average growth rate stood at negative 2.4%.

Based on the WSA data, Iran produced 3.1 million tons of crude steel in April.

Meanwhile, the Islamic Republic produced 9.7 million tons of steel in the first four months of 2023, registering a nominal growth of 0.1% as compared to the same period in the previous year.

WSA report said that the world’s 64 steel producers managed to produce 161.4 million tons of the commodity in April, 2.4% less than the figure for the previous year’s same period.

The steelmakers produced 622.7 million tons of steel in the first four months of this year, which indicates a 13% drop as compared to the same period last year.

According to the WSA report, China, India, Japan, the United States and Russia were the world’s top steel producers respectively.

The Iranian steel industry has been constantly developing over the past years despite all the pressures and obstacles created by outside forces like the US sanctions and the coronavirus outbreak that has severely affected the performance of the world’s top producers.

 

Iran, India cooperation in agriculture

According to Mehr News Agency, Iranian and Indian officials have agreed to form a joint committee for cooperation in agriculture between the two countries within the next three months.

The consensus was reached in a meeting between Iran's Deputy Agriculture Minister Mohammad Mehdi Borumandi and Secretary of India's Agriculture and Farmers Welfare Ministry Manoj Ahuja in New Delhi.

Borumandi, traveled to New Delhi to hold talks on the agricultural cooperation between Iran and India and met with his Indian counterpart to review the latest status of bilateral cooperation in the field of agriculture.

The officials also agreed to hold the first joint working group on agricultural cooperation between the two countries in the near future.

In the meeting, Borumandi stressed Iran's readiness for cooperation in various fields including horticultural products, medicinal plants, combating plant pests, agricultural technologies, exchange of professors and experts, and cooperation between research institutions of the two countries.

He considered the removal of tariff barriers on agricultural trade as a necessity for the future expansion of relations.

Manoj Ahuja, for his part, highlighted the cultural and geographical affinities between the two nations and expressed his country's readiness to develop agricultural relations with Iran.

Welcoming the fields proposed by the Iranian side for cooperation, the Indian official announced that the ban on the exports of kiwi to India, which had been temporarily prohibited since last year due to quarantine considerations, has been lifted.

The trade between Iran and India reached US$510 million in the first quarter of the current year, according to the data released by India’s Ministry of Commerce and Industry.

According to the report, agricultural products and especially rice had the largest share in India’s exports to Iran. Rice accounted for 63% of the total volume of exports, while fruits with US$15 million, and tea with US$10 million ranked second and third.

 

China supports regional naval alliance plan

China pledges to strive for peace and stability in West Asia, including Persian Gulf, by promoting plans for a regional maritime alliance.

A question regarding Iran’s intention to create a naval alliance with Saudi Arabia, the United Arab Emirates, and other Persian Gulf nations that will also include India and Pakistan to protect regional stability was addressed by Wang Wenbin, the spokesperson for the Chinese Foreign Ministry.

Speaking at regular press briefing, Wang also noted that “upholding the peace and stability of the Persian Gulf region in the Middle East (West Asia) bears on the wellbeing of countries and people in the region.”

Rear Admiral Shahram Irani, the commander of the Iranian navy, had announced earlier that Iran will create new intra- and extra-regional partnerships to improve security.

“Today, regional countries have realized that the establishment of security in the region requires synergy and cooperation,” Irani stressed.

The Chinese spokesperson stressed the vital importance of peace and stability in the region at the news conference in order to preserve world peace, accelerate global economic growth, and maintain a steady supply of energy.

“China supports regional countries in resolving disputes and cultivating good-neighborliness and friendship through dialogue and consultation,” Wenbin added.

Beijing, he declared, will continue to contribute positively and constructively to the cause of regional peace and stability.

US authorities were not pleased with Admiral Irani’s announcement of the formation of a joint naval alliance.

Tim Hawkins, the spokesman for the 5th Fleet and Combined Maritime Forces, purportedly said that Iran’s participation in a regional naval alliance defies reason and that the Islamic Republic is the primary cause of maritime instability in the Persian Gulf region.

The parameters of the regional alliance are taking shape a year after the Israeli regime claimed that it, along with the United States and regional Arab allies, would form a Middle East NATO to fight Iran's dominance in the region.

American and Israeli military leaders touted the notion ahead of President Joe Biden’s July visit to West Asia.

The goal was to improve cooperation among allies in order to defend each other against envisioned Iranian threats.

Israel’s hopes for a coalition against Iran, however, have been dashed as a number of Persian Gulf Arab nations, led by Saudi Arabia, have started to change their allegiances and normalize ties with Iran.

Iran has recently made maritime breakthrough that can shake the US position in the world including the 86th Naval Fleet, which included the home-built Dena Destroyer, and came home last month after the first round of the world in a mission dubbed 360-Degree.

The flotilla sailed across the Indian, Pacific, and Atlantic oceans without needing assistance from land for the first time in Iran’s naval history.

It departed from Bandar Abbas, a port city on the Persian Gulf, on September 20, 2022. It finally anchored at Oman’s Salalah harbor on the 236th day of its journey. The flotilla traveled 63,000 kilometers and four times crossed the equator.

Last month, Admiral Farhad Fattahi, the commander of Iran’s 86th Naval Fleet, outlined achievements of the flotilla after a round-the-world voyage.

Admiral Fattahi emphasized that the first achievement of the voyage can be mentioned as the design, production and operationalization of the all-Iranian meteorological software, which was developed by Iranian youths in the army and yielded fruitful results.

“Secondly, we have proven that the Iranian products are totally trustworthy and reliable. It means that the Dena destroyer is an Iranian product that is 100% reliable,” he added.

The admiral continued, “Given the maritime diplomacy, one of the achievements is that the flotilla docked in the port of Rio de Janeiro to mark the 120th anniversary of the establishment of diplomatic relations between Iran and Brazil.”

“Another remarkable achievement is that Iran’s flag was waved in the world’s four major oceans, seven seas and seven strategic straits,” he noted.

The admiral also said that a unique phenomenon emerged in the cultural sphere as the flotilla’s commanders and staff were representatives of Iranian-Islamic cultural values.

Admiral Fattahi remarked that during the mission, we used the home-built Dena destroyer, whose capabilities grabbed the attention of other countries’ naval commanders and forces. This came as no surprise that all naval commanders expressed congratulations over building such a military feat.

 

Iran, Saudi Arabia to form naval coalition in northern Indian Ocean

Iranian Navy Commander Shahram Irani announced on Saturday that a naval coalition will be formed in the northern Indian Ocean with the involvement of Iran, Saudi Arabia, the UAE, Bahrain, Iraq, Pakistan, India, and other countries in the region.

“In line with this purpose new coalitions are being formed in the region and beyond,” the admiral added.

“Today regional countries have reached the conclusion that if there is going to be security in the region, definitely it can be done through convergence and cooperation with each other,” Shahram Irani said in a televised interview.

Earlier, the website of the Emirati foreign ministry said Abu Dhabi had withdrawn from the Joint Maritime Forces that operate in the Red Sea and the Persian Gulf.

Analysts say Abu Dhabi has made the decision in line with its ambition to diversify its security relationships.

A Qatari news website reported on Friday that Iran, Saudi Arabia, the United Arab Emirates (UAE), and Oman are to form a joint naval force under China's support in line with increasing maritime security in the Persian Gulf.

Al-Jadid said China had already begun mediating negotiations among Tehran, Riyadh, and Abu Dhabi aimed at reinforcing navigation's safety in the strategic body of water.

Back in March, China successfully helped broker a deal between Tehran and Riyadh according to which Iran and Saudi Arabia agreed to reestablish diplomatic ties after seven years of estrangement.

According to analysts, the consent of the Persian Gulf states to Beijing's mediation in such sensitive matters shows China's growing influence in the region as opposed to Washington's declining influence.

 

 

Can BRICS dare to challenge US hegemony?

BRICS includes Brazil, Russia, India, China, and South Africa. It will hold its first ministerial meeting on Friday and Saturday in preparation for heads of state summit in August. This year's gathering will be held in Cape Town, South Africa.

Around 20 non-BRICS foreign ministers will be in attendance at the end of the week, with many countries actively expressing an interest in becoming members.

During last year's BRICS summit in China, a strong message was delivered of putting development on top of everything else on the international agenda. As Chinese President Xi Jinping pointed out at the UN General Assembly, the goal of the initiative is that no country or individual should be left behind in pursuing development.

As the rotating chair switches to South Africa, among the themes of this year's summit is multilateralism in promoting international development.

It's no surprise that the success of the BRICS mechanism has attracted many like-minded nations who are expressing a desire to join, from the UAE in Asia to Algeria in Africa and Argentina in Latin America.

Among other issues on the agenda at the BRICS summit in August is increased economic autonomy. Another is plans to decide on admitting new members and what criteria they would have to meet.

Talks on the enlargement of the bloc are mainly based on the interest of other countries over the self-made economic prosperity of its members, as other nations who seek BRICS membership are growing tired of dealing with the International Monetary Fund or the World Bank.

According to Anil Sooklal, South Africa’s ambassador to BRICS, the Kingdom of Saudi Arabia and the Islamic Republic of Iran are in talks to join the economic bloc.

“What will be discussed is the expansion of BRICS and the modalities of how this will happen,” Bloomberg has cited his as saying.

“Thirteen countries have formally asked to join and another six have asked informally. We are getting applications to join every day.” 

Since its formation as the four-member BRIC in 2006, the bloc has only added one new member, South Africa, in 2010, which made it BRICS.

In March, South African Foreign Minister Naledi Pandor said international interest in the BRICS group was huge, Saudi Arabia is one, she said. Others are United Arab Emirates, Egypt, Algeria, and Argentina, as well as Mexico and Nigeria."

Iran is said to have already applied to join BRICS and its foreign minister Hossein Amir Abdollahian has confirmed he will be participating in the Cape Town meeting at the official invitation of South Africa.  

The latest submissions for membership give substance to the argument of the rapidly changing global developments following the Ukraine, Yemen and Afghanistan wars.

Among the attractive aspects of BRICS is that nations view the alliance of emerging markets as an alternative, and not necessarily a challenge, to a US-led world order which is weakening, as experts point out, because of America's unilateral foreign policy blunders.

Experts also argue that Europe lacks any sovereign world vision, as witnessed by the Ukraine war, where it has taken its marching orders from Washington and failed to bring peace to Ukraine, as European households suffer from record inflation as a direct result of the conflict on its doorstep.

The Ukraine war has had a direct impact at international scale when it comes to food and energy.

In the absence of any willpower to stamp its authority on regional affairs, let alone global affairs, Europe has, in essence, failed the international community as a reliable economic partner, forcing many to seek alternatives to the West.

Iran for instance has the second largest gas reserves in the world, something that Europe is desperately searching for, but has not approached Tehran about, because of its bizarre compliance to illegal US unilateral sanctions. It now looks that the much-needed Iranian commodity will most likely be heading elsewhere.

While BRICS has its own bank (New Development Bank), it is not as large as the World Bank or the International Monetary Fund (IMF), but this could be down to just a matter of time as more countries seek to join the economic bloc.

The World Bank and the IMF were founded back in the 1940's and have failed in their declared goals of creating a more stable and prosperous global economy.

The austerity that comes with loans has brought increasingly high levels of poverty and inequality to countries who borrowed money from them. Just ask the people of Greece or Argentina. Critics accuse the US of having unfair influence on the World Back and the IMF.

On the other hand, the New Development Bank or the BRICS Bank, which was just established in 2015 and with its stated aim to help build a more inclusive, resilient and sustainable future for the planet is appealing.

It may sound like a good advertising slogan, but the facts on the ground show BRICS is attracting a record number of clients seeking to expand the bloc.

According to reports, BRICS is in talks with Saudi Arabia to become a member of its New Development Bank. While Saudi Arabia has yet to confirm this, such reports were unheard of just a year ago.

The idea itself makes sense as most oil purchasing clients are now based in the East and Latin America. But it will be a major setback for the United States, which will see an agonizing decline of petrodollars.

In the early 1970s, Washington and Riyadh reached an agreement that Saudi oil sales to all international clients be sold in dollars in exchange for American military protection, something that the US failed to adhere to in the Saudi conflict with Yemen.

Today, Saudi Arabia is in talks with Beijing to sell its oil to China in the Yuan and has restored diplomatic ties with Iran in another blow to the US and its extremely mischievous proxy in the region Israel.

Should the Kingdom become a New Development Bank member, it would be a boost to the bank as well as for Saudi Arabia itself, as BRICS members, among other things, provide a safety net in times of difficulty.

For instance, BRICS members have not bowed to NATO pressure to join the sanctions regime against Russia.

Brazilian President Luiz Inácio Lula da Silva has argued that BRICS nations should establish their own common currency, highlighting the advantages of such a unified economic measure that would be independent of the US dollar.

Under a US dollar dominated world order, prosperity has been taken over by poverty while peace has been replaced by violence.

In April, BRICS' deputy ministers and special envoys held a meeting in Cape Town to discuss, among other issues, the Israeli-Palestinian conflict, as well as developments in the Persian Gulf states, Syria, Iraq, Lebanon, Libya, Western Sahara and Yemen.

Such platforms provide an opportunity to bring emerging markets together to discuss both the financial and political aspects of the world.

 

Lloyd’s Register drops ships of top Indian carrier of Russian oil

Lloyd's Register has told India's Gatik Ship Management, a major carrier of Russian oil since the Ukraine war that it will withdraw certification of 21 of its vessels by June 03, 2023.

It is the latest setback for Gatik, which was also been forced to find new flags for 36 of its ships after they were deflagged by the St. Kitts & Nevis International Ship Registry.

"Lloyd's Register is committed to facilitating compliance with sanctions regulations on the trading of Russian oil," it said in an email to Reuters. "Where supported by evidence, we withdraw class and services from any vessels found by the relevant authorities to be breaching international sanctions."

Classification societies such as Lloyd's Register in London provide services including seaworthiness checks, certification that is vital for securing insurance and entry to ports.

Lloyd's Register said, 11 of the Gatik vessels it was declassifying were also certified by the Indian Register of Shipping (IRClass).

Gatik, which is based in the Indian city of Mumbai according to shipping databases, did not respond to emailed requests for comment.

A major US insurer, the American Club, also told Reuters it was no longer providing cover for Gatik ships, while Russian insurer Ingosstrakh said it would not work with Gatik in future.

Neither the insurers, Lloyd's Register nor the flag registry spelled out exactly why they have dropped business with Gatik.

 

Iran hosts Asian Clearing Union summit

The 51st Asian Clearing Union (ACU) summit, mainly focusing on de-dollarization, kicked off on Tuesday at the Central Bank of Iran (CBI).

On the first day of the two-day event, expert committees from the delegations attending the summit held meetings to discuss preliminary issues.

The summit is attended by the governors of the central banks of the ACU member countries in addition to Russia.

The Governor of the Central Bank of Russia Elvira Nabiullina arrived in Tehran on Monday to attend the event.

In the 51st ACU summit, the members are set to discuss various issues including the amendment of the Union's statutes in order to facilitate the acceptance of new members, and determining the new currency basket of the member countries in order to settle exchanges without the need for euro or the dollar.

Exploring the feasibility of using digital currencies of central banks for cross-border payments and the unveiling of the interbank messaging network of the member states of the Union are also among the major topics on the summit’s agendas.

Asian Clearing Union is a payment arrangement whereby the participants settle payments for intra-regional transactions among the participating central banks on a net multilateral basis.

The main objectives of the clearing union are to facilitate payments among member countries for eligible transactions, thereby economizing on the use of foreign exchange reserves and transfer costs, as well as promoting trade and banking relations among the participating countries. 

Currently, the members of ACU are the central banks of Iran, India, Bangladesh, Bhutan, Maldives, Nepal, Pakistan, Sri Lanka, and Myanmar.

The central banking authorities of member countries have issued detailed instructions and modalities for channeling monetary transactions through the ACU. Membership in the ACU is open to central banks located in the geographical area of ESCAP and non-ESCAP.

 

Quad meeting scheduled in Sydney postponed

Australian Prime Minister Anthony Albanese said on Wednesday the Quad summit would not go ahead in Sydney next week without US President Joe Biden, who postponed his trip to Australia due to debt ceiling negotiations in Washington.

Albanese said the leaders of Australia, the United States, India and Japan would instead meet at the G7 in Japan this weekend, after Biden canceled a trip to Sydney on the second leg of his upcoming Asia trip, which was also to have included a visit to Papua New Guinea.

"The Quad leaders meeting will not be going ahead in Sydney next week. Though, we will be having that discussion between Quad leaders in Japan," Albanese told a news conference.

A bilateral program in Sydney with Indian Prime Minister Narendra Modi could still go ahead next week, Albanese said.

Albanese did not comment on whether Japanese Prime Minister Fumio Kishida would still visit Sydney next week

The Quad is an informal group that promotes an open Indo-Pacific. Beijing sees it as an attempt to push back against its growing influence in the region.

Asia Society Policy Institute senior fellow Richard Maude said the cancellation of Biden's visit to Papua New Guinea, which would have been the first visit by an American president to an independent Pacific islands nation, could set back Washington's battle for influence with Beijing in the region.

“The mantra in the region is all about turning up. Turning up is half the battle. China turns up all the time, and so the optics aren’t great,” Maude, a former Australian intelligence chief, told a panel discussion on the Quad on Wednesday.

India and Australia are not part of the G7 group of seven rich nations - Britain, Canada, France, Germany, Italy, Japan and the United States - but have been invited to attend the summit in Japan.